LENDING UPDATE – 01.03.12

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 01.03.12

Key lending issues

  • most lenders have increased their variable interest rates
  • several lenders have increased their 2 and 3 year fixed rates
  • most lenders require proof of 5% genuine savings… some don’t
  • substantial increase in loans from “non-conforming lenders”
  • “low doc” loans for self-employed borrowers readily available
  • some lenders have relaxed their acceptable income assessment criteria
  • First Home Owners Grant still available
  • reverse mortgages for borrowers over 65 readily available
  • loans to Self Managed Super Funds becoming more popular

CURRENT LENDING NEWS

  • Most lenders have increased their variable interest rates regardless of the recent RBA decision to keep the Cash Rate steady.
  • Several lenders have already increased their 2 & 3 year fixed rates. While fixed rates below 6% are still available, Bankwest has increased its 3 year fixed rate from 6.29% to 6.79% in one hit. Fixed rates have now passed their lowest point. More borrowers are now locking-in the selected fixed rate by exercising the “lock-in” option.
  • Most lenders require proof of 5% genuine savings for loans over 85% of valuation. Some lenders will still accept deposit funds from ANY source if the loan is below 90% and sufficient funds are available to cover deposit and full costs.
  • There has been a substantial increase in loans from “non-conforming lenders” who will consider deals normally unacceptable to mainstream lenders. While interest rates are higher, between 8 – 10% pa, many borrowers have no alternative if a loan is needed now. If repayments are well conducted in the first 12 months, these loans can usually be refinanced or switched back to a normal loan with a normal rate almost immediately after one year.
  • “low doc” loans for self-employed borrowers are still readily available from most lenders. If Tax Returns and Tax Assessment Notices are not available, then some lenders will accept BAS statements as adequate proof of income, while other lenders only require bank trading statements showing adequate cashflow or a signed declaration from the Accountant estimating annual taxable income.
  • Some lenders have relaxed their acceptable income assessment criteria. New policies include:
  • accepting the latest year’s Tax Returns AND Tax Assessments instead of requiring the last 2 years returns
  • accepting contract and regular casual income after only 3 months continuous service/income
  • annual income calculation is based YTD gross income as evidenced on latest payslip
  • 100% of overtime accepted if evidenced over 3 continuous months
  • Family Allowance income accepted regardless of age of children

In many instances, these simpler criteria result in easier loan eligibility than before.

  • The First Home Owners Grant is still available : $7000 for established homes and $20,000 for newly built homes in the Melbourne area. On construction loans, most lenders will allow contribution of the $20,000 construction grant only at “slab” stage. This often leaves borrowers short of funds to complete the land settlement. One lender will allow the $20,000 FHOG to be used for land settlement, subject to certain conditions.
  • Reverse mortgages for borrowers over the age of 65 are readily available. Funds can be used for most personal purposes. Income proof and repayments are not required. Most residential properties are acceptable security.
  • Loans to Self Managed Super Funds are becoming more popular. Most lenders will only accept income earned by the Fund itself when assessing repayment capability. One lender will accept other personal income in assessing overall repayment capability and loan eligibility.

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

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 for your time on the phone yesterday and copying me into the below email.
I just wanted to take the time to say that I have never seen such a comprehensive email provided to clients by a Broker before. Very clear and detailed.
I hope it’s ok that I hold onto your details to refer to clients who may need assistance.
Kind Regards,

Shannon Oatley
Director & Licensed Conveyancer
Property Conveyancing Group, 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 14.06.19

  • LIVING EXPENSES ARE NOW A KEY ISSUE
  • COMPREHENSIVE CREDIT REPORTING NOW IN EFFECT
  • INVESTMENT LOANS AT OWNER-OCCUPIER INTEREST RATES
  • REVERSE MORTGAGE LOANS FOR SENIORS OVER 60
READ MORE

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  • ongoing availability to assist you after loan settlement
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