MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 03.03.11

Key lending issues

• No change to official RBA interest rates in March
• More lenders now offering maximum loans up to 95% of property value
• Lenders offering nil set up fees, rate cuts and cash incentives as competition heats up
• CBA announces “No Fee” home loan
• Several lenders now offering reduced rates on loans with lower LVRs. See Lender Comparison
• Westpac waives Lenders Mortgage Insurance for loans 80-85 LVR. Conditions apply
• Two lenders offer cheaper risk insurance on loans 80-95% LVR instead of normal mortgage insurance
• Refinance and debt consolidation lending increases as borrowers seek better deals

LENDER COMPARISON

This table shows leading residential mortgage products currently available for a typical $300,000 loan. Current 3 year fixed rates and maximum loan-to-valuation ratios (LVRs) are also shown, together with initial setup fees.

		Variable %	$ Setup Fee	LVR max %	3 Year Fixed %
PLAN Lending/nab	Performance Plus <65%	6.88	nil	65	7.25
Homeloans Ltd	Ultra Plus<65%	6.89	1371	65	7.74
Bankwest	3 year Super Start<75%	6.90	nil	75	7.44
Homeside/nab	Homeplus<75%	6.90	762	75	7.45
Citibank	Basic Special<70%	6.95	649	70	7.34
ING	Simplifier Smartpack	6.96	719	95+LMI*	7.44
PLAN Lending/nab	Performance Plus 65-90%	6.98	nil	90+LMI	7.35
AFM	Complete Option<65%	6.99	nil	65	7.63
CBA	Rate Saver 3 year Special	6.99	150	95+LMI*	7.39
Police&Nurses CU	Dream Home Loan	6.99	1342	95	7.35
Rock Bldg Soc	Rock Star Special	6.99	500	95	7.24
Homeside/nab	Homeplus 75-90%	7.00	762	90	7.45
ANZ	Breakfree	7.00	375	92	7.19
Citibank	Basic Special 70-80%	7.02	649	80	7.34
AMP	Basic	7.02	545	90+LMI	7.29
Heritage Bldg Soc	Basic	7.03	600	90	7.15
AFM	Secure Option	7.04	1040	95	–
Suncorp	Back to Basics Special	7.05	nil	95+LMI *	7.59
CBA	MAV Variable<75%	7.06	500	75	7.24
Citibank	Mortgage Plus	7.08	600	90	7.34
Adelaide Bank	Variable Smartfit	7.09	695	95+LMI*	7.59
AFM	Complete Option	7.09	nil	90+LMI	7.63
Homeside/nab	Homeplus>90%	7.10	762	95	7.45
ANZ	Simplicity Plus	7.10	600	92	7.34
Bankwest	Premium	7.10	nil	95+LMI*	7.44
St George	Advantage	7.10	495	95+LMI*	7.49
CBA	MAV Variable	7.10	500	95+LMI*	7.24
Westpac	Premier Advantage Rocket	7.11	nil	95+LMI *	7.49
ING	Simplifier	7.12	220	95+LMI*	7.44
St George	Basic	7.13	nil	95+LMI*	7.64
PLAN Lending/nab	Performance Plus>90%	7.13	nil	95	7.50
Westpac	Flexi First	7.16	nil	95+LMI*	7.69
AMP	Propack	7.17	644	90+LMI	7.44
Homeloans Ltd	Prosmart	7.24	1020	95+LMI*	8.09
CBA	No Fees	7.24	nil	95+LMI*	7.39
Phoenix Circle CU	Variable	7.25	275	95	–

Notes :	maximum 95% LVRs apply to purchases. 90% maximum usually applies to refinances
:	ANZ will lend up to 95% to its own customers who have had accounts for at least 6 months
:	+LMI indicates lenders who will add the Lender’s Mortgage Insurance to the base loan amount up to 97% max
:	“low doc” loans are available at higher rates than shown above

NON-GENUINE SAVINGS

There are 3 lenders who will lend up to 95% LVR to borrowers who do not have genuine savings. Strict conditions apply.

LENDERS OFFERING CASH INCENTIVES TO REFINANCE

St George is offering $700 to borrowers who refinance from any bank

CBA is offering $1200 to borrowers who refinance from NAB or Homeside

EXISTING HOME OWNERS BEWARE !

All lenders must now comply with the new National Consumer Credit Protection (NCCP) Act, effective since 01.01.2011 Lenders must now confirm more vigorously that customers can clearly service loan repayments. Borrowers who got loans approved in the past may NOT get them now. Customers MUST confirm their eligibility for a new loan BEFORE they buy a new property and/or BEFORE they sell their current property.

MORTGAGE INSURANCE SPECIAL OFFERS

Several lenders are offering special deals which will reduce or eliminate hefty Lender’s Mortgage Insurance premiums:

• Westpac is waiving LMI between 80-85% LVR on selected products taken under their Premier Advantage Package
• ING is offering its own in-house lower cost LMI between 80-95% LVR to strong borrowers who meet certain criteria
• Homeloans Ltd is offering a similar deal to ING, but only on its Homeloans Prosmart loan at 7.24%

Please call Melbourne Mortgage Finance for FREE and IMMEDIATE assistance in arranging your purchase or refinance loan

Barry LeBrocq

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

Disclaimer: The above information is intended as general information only and is not intended to address specific personal situations. While every effort has been made to ensure accurate content, it should be understood that loan products, interest rates and fees change frequently without notice. Potential borrowers should contact Melbourne Mortgage Finance to verify details and discuss their specific needs and loan eligibility.