What our customers say about us

Thanks for all your help and for making it so easy for me. Life will be so different now.

Jan Vincent
Montrose, VICTORIA

Thank you very much for the service you provided us regarding the refinance of our home loan. All went well and smoothly with no problems. We are happy with the new loan arrangement. Once again, thank you very much for your assistance.

Bala Krishna
Cranbourne VICTORIA

We have found Barry Le Brocq of Melbourne Mortgage Finance to be very patient, caring and diligent in achieving a successful outcome to our refinancing requirement. We have no hesitation in recommending his services to others.

Don & Christine Perrett
Leongatha, VICTORIA

Many thanks Barry for the exceptional service that you have provided. We will most certainly be recommending you to our daughter (Bank of Melbourne branch manager) for any future customers who need a reverse mortgage loan.

Paul & Barb Spark
Somerville VICTORIA

 

LENDING UPDATE 24.09.18

  • Product of the month : 3.62% fixed for 2 years
  • Tips for First Home Buyers
  • A reverse mortgage loan can fund an Aged Care bond
  • If your bank says “No”, alternative lenders are available
  • Use a Deposit Bond when cash is not available

Most lenders will lend up to 95% of property valuation where a single property is offered as security for the loan, provided the property is assessed as being a suitable security. Some lenders will also add most of the Mortgage Insurance premium to the loan amount, provided the total loan amount does not exceed 97% of valuation. Refer “Lending Updates” link.

 

 

  • Standard Variable Home Loans:

    This loan has all the features you want in a home loan with a standard variable rate. No interest rate discount is offered to this loan and normal fees may apply.

  • Basic Variable Home Loans:

    This loan has most of the features you want in a home loan with a lower variable rate. These loans are often available with no establishment or ongoing monthly fees. Very attractive to buyers who want to reduce their monthly repayment and save on fees, while still having most of the regular loan features.

  • Professional Package Home Loans:

    These loans have a reduced variable rate with no establishment or ongoing monthly fees on the first loan or any subsequent loans taken. Other benefits include discounts on insurance products, credit cards, financial plans or transaction accounts. Most lenders will charge an annual fee of $300-400 on these loan types.

  • Low Doc Variable Home Loans:

    This loan is designed specifically for self-employed people who do not have sufficient proof of income to qualify for a normal loan. Higher deposit is needed and rates will be higher with this loan.

  • Offset Variable Home Loans:

    Your loan account is linked to a separate savings account to enable interest earned on the savings account to offset or reduce the interest which would normally be calculated on the loan account.

  • Parental Guarantee Loans:

    This loan allows parents to offer their home as additional security so that 100% of the purchase price can be borrowed, plus costs in some cases.
    The loan will not exceed 80% of the combined security value and no mortgage insurance will be payable. See What is a Parental Guarantee? FAQ below

  • Property Share Loans:

    An easy to manage home loan option which allows friends or relatives to purchase a property together but keep their loans separate.
    For example, a $400,000 loan can be split into two separate portions with two separate account numbers. Property Share can help first home buyers and investors to make a puchase which might not otherwise occur.

Most lenders will approve 90% of the purchase price and then add the mortgage insurance premium to the loan amount as well. This could bring the total loan to approximately 92% of the price. You would then need to contribute

  • 10% deposit
  • State Government stamp duty
  • Titles Office fees
  • your solicitor’s fee
  • your share of the annual Council rates charge

A few lenders will approve 95% of the purchase price which means you will need a 5% deposit. You will then pay a higher mortgage insurance premium because of the additional risk to the lender. The other fees and expenses listed above must still be paid.

The First Home Owners Grant will assist you pay some of the State Government stamp duty, but usually not all of it.

In general terms, the best course of action is: start saving as early as possible, save as much as possible and keep your bank statements to prove your savings record.

Yes.

Most lenders will allow you to have a combination. Both portions will have separate account numbers so they can operate independently on different interest rates. The variable rate portion can usually be paid off rapidly with no restrictions, while the fixed rate portion protects you against possible future rate rises. Additional payments can usually be made on the fixed rate portion as well, but lenders generally place restrictions on the amount of additional repayments allowed each year.

Lenders usually offer a fixed rate “lock in” option. This means that the fixed rate offered in your Loan Contract can be guaranteed to be held at that rate right up until settlement regardless of any changes to the lender’s published fixed rates in the meanwhile. There will usually be a time limit of 60 or 90 days and lenders will usually charge a fixed rate “lock in” fee to be paid upfront at the time your Loan Contract is signed.

If you believe that fixed rates may increase prior to your property settlement, check your lender’s fixed rate “lock in” policy as it may be financially beneficial to secure the available current fixed rate now.

Borrowers often have a shortage of deposit or insufficient funds to cover the cost of stamp duty and mortgage insurance. Most lenders will allow a Parental Guarantee.
This means that the parents’ home can also be offered as additional security to the lender. Parents will be required to sign mortgage and guarantee documents for this to occur. The approved loan may cover 100% of the purchase price plus costs, but the loan amount is no higher than 80% of the total security offered. This means that buyers can purchase immediately rather than having to wait until sufficient funds are saved. The usual mortgage insurance premium will also be eliminated.

Lenders will have strict rules concerning Parental Guarantees and adequate proof of income and ability to repay must be provided. When borrowers have sufficient equity in the purchased property, the lender will no longer require the Parental Guarantee and the parents’ property title will be returned to them.

Lenders will require parents to receive independent legal advice prior to settling a Parental Guarantee loan.

There are key items that lenders will look for in a loan application:

  • Evidence of savings which must be sufficient to cover your deposit, mortgage insurance and other costs. Keep bank statements and any documents to do with your financial contribution.
  • Evidence of income which must be sufficient to service the loan. Keep pay slips, Group Certificates and tax returns.
  • Credit history. The lender will obtain a credit check and examine records of your past financial dealings which should preferably be clear of defaults and court judgements.
  • Asset accumulation which should be proportionate to your income and age.
  • Employment history which ideally shows continuous employment in the same job for 12 months and regular previous employment.
  • Security property which must be acceptable to the lender.

If the loan exceeds 80% of purchase price and mortgage insurance is required, proof of at least 5% genuine savings is essential. This is a standard requirement for first home buyers.

Lenders and mortgage insurance companies will require proof of a demonstrated savings pattern over a minimum of 3 months in the name of at least one of the borrowers.

Documents proving your genuine savings may include :

  • bank statements (in the borrowers name(s)) showing accumulated savings over 3 months
  • sale of shares (net of any tax due)
  • equity from real estate (sale proceeds or additional borrowings)
  • after tax bonus from employer (can not also be used as income)
  • non- preserved superannuation contributions (if the borrower has access to these funds in cash form).

The following sources of funds will not be considered part of 5% genuine savings proof.

  • First Home Owners Grant (FHOG)
  • gifts
  • inheritance
  • sale of assets
  • borrow money.

These additional sources of funds will be allowed to form part of the borrower’s total deposit, but 5% of the purchase price MUST come from GENUINE SAVINGS.

Lenders now have a wide range of features to select from. These include:

  • “ interest only” , “principal & interest” or a combination
  • variable rate, fixed rate or a combination
  • maternity leave
  • electronic, direct debit or manual payment options
  • shareholder discounts
  • volume lending discounts
  • first home buyer packages
  • low rate “basic loan” options
  • professional packages
  • fee free transaction accounts and loan accounts
  • 100% offset transaction accounts
  • honeymoon first year rates
  • internet banking
  • “low doc” loan option
  • progressive drawdown line of credit
  • mortgage insurance capitalisation
  • 100% loan option
  • additional payments on variable or fixed rate loans
  • fee free credit cards
  • top-up option to increase your home loan
  • parental guarantee loans

Melbourne Mortgage Finance offers an extensive range of mortgage products and services including

Home Loans, Investment Loans, Equity Access Loans, Low Doc Loans, 100% Loans, Refinance Loans, Commercial Loans, Deposit Bonds, Reverse Mortgages, Accommodation Bonds, Vehicle Finance, Plant and Equipment Finance, Financial Planning and Business Finance.

IMMEDIATE appointment can be made to meet at your home or office

  • NO CHARGE for assisting you. We receive a standard fee from the lender you select
  • reliable service, communication and follow-up. See “Testimonials
  • accreditation with 20 national lenders, allowing you to select from an excellent range of loans
  • we carefully listen to your needs, do our research, then present you with a short-list of three potential loan solutions. You choose the lender.
  • printouts of products, fees, interest rate and loan features are provided
  • arrange for your property insurance and personal insurance requirements to be assessed
  • ongoing availability to assist you after loan settlement
  • over 30 years experience in arranging finance and mortgage loans