LENDING UPDATE – 07.02.11

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 07.02.11

Key lending issues

  • No change to official interest rates in February

  • ING and Homeloans Ltd have both re-introduced maximum loans of 95% plus LMI (lender’s mortgage insurance) for purchases. Both were previously 90% plus LMI.

  • Some lenders now allowing continuous rental payments in proving “genuine savings” history. Refer below.

  • Some lenders now offering 95% LVR loans to applicants who do not have genuine savings. Refer below.

  • First Home Owners Grant still $7000 for established properties and $20,000 for new properties in Melbourne

  • Several banks promoting nil establishment fee special offers

  • More homeowners with good equity are refinancing to smaller lenders offering lower interest rates. Refer table.

  • Loans involving full or partial fixed rates have increased to 15% of all new loan applications

LENDER COMPARISON

The table shows some residential mortgage products available for a $300,000 loan. Current 3 year fixed rates and maximum loan To valuation ratios (LVRs) are also shown, together with initial set up fees. 12 month “honeymoon” rates excluded:

Variable
%
$ Setup
Fee

LVR
max %

3 Year
Fixed %
PLAN Lending Performance Plus <65% LVR 6.88 nil 65 7.35
Homeside/nab Homeplus <75% LVR 6.90 762 75 7.20
ING Simplifier Smartpack 6.96 699 95+LMI 7.44
PLAN Lending/nab Performance Plus >65-90% LVR 6.98 nil 90+LMI 7.35
Police & Nurses C U Dream Home Loan 6.99 1342 95 7.35
Rock Bld Society Rock Star Special 6.99 300 90+LMI 7.24
CBA Rate Saver 3 Year Special 6.99 nil 92 7.39
Homeside/nab Homeplus 75-90% 7.00 762 90 7.20
AMP Basic Special 7.02 545 90+LMI 7.29
Heritage Bld Society Basic Variable 7.03 600 90 7.15
Aust First Mortgage Secure Option 7.04 1040 95
Suncorp Back to Basic Special 7.05 nil 90 7.59
Citibank Mortgage Plus 7.08 600 90 7.29
Adelaide Bank Variable Smartfit 7.09 695 95+LMI 7.59
Aust First Mortgage Complete Option 7.09 nil 90+LMI 7.63
Homeside/nab Homeplus > 90% LVR 7.10 762 95 7.20
ANZ Simplicity Plus 7.10 600 92 7.25
Bankwest Premium 7.10 nil 95+LMI 7.44
St George Advantage 7.10 495 92 7.49
CBA MAV Standard Variable 7.11 350 92 7.24
ING Simplifier 7.12 220 95+LMI 7.44
St George Basic 7.13 nil 92 7.64
Homeloans Ltd Ultra 7.14 704 90+LMI 7.74
Westpac Flexi First 7.16 nil 92 7.69
Westpac Rocket Premier Advantage 7.16 395 92 7.49
AMP Pro Pack Variable 7.17 645 90+LMI 7.44
Aust First Mortgage Flexible Option 7.19 645 95+LMI 7.79
Homeloans Ltd ProSmart 7.24 1314 95+LMI 8.09
Phoenix-Circle CU Variable 7.25 275 95
Bankwest Rate Cutter 7.30 nil 95+LMI 7.44
Notes : maximum 95% LVRs shown apply to purchases. 90% maximum usually applies for refinances
: CBA, ANZ, Westpac and St George will lend up to 95%+LMI only to their own customers with accounts for 6 months
: +LMI indicates lenders who will add the Lender’s Mortgage Insurance premium to the base loan amount
: “low doc” loans will usually be available at higher rates than shown


LENDERS OFFERING 95% LOANS (Non-genuine savings)

Variable
%
$ Setup
Fee
LVR
max %
Police & Nurses CU Dream Home Loan 6.99 1342 95
Phoenix-Circle CU NGS Home Loan 7.55 550 95
Aust First Mortgage NGS Secure Option 7.77 695 95

Westpac will accept lump sum amounts as genuine savings: tax refunds, bonus payments, inheritances, commissions. Proof required.

Strict conditions apply to all these loans involving non-genuine savings. Borrower scenarios can be discussed individually.


USING RENT PAYMENTS TO ESTABLISH SAVINGS HISTORY

St George and Westpac have announced that they will take continuous rent payments into account in assessing demonstrated savings history. Conditions must be satisfied as follows:

  • continuous rent payments must be made for a minimum of 12 months (St George) or 3 months (Westpac)
  • proper signed lease agreement involving a real estate agent
  • letter from agent required to confirm no missed or late payments
  • names on lease must be same as names on loan application

This is the first time rent payments will be formally accepted in assessing savings pattern and ability to repay a loan

Other normal eligibility criteria still apply: adequate income, good employment, clear credit history and satisfactory valuation.

SPECIALIST INSURANCE AND FINANCIAL PLANNING SERVICES

We can arrange a full review of your insurance and financial planning needs whether clients are borrowing mortgage funds or not.

Many people are considerably under-insured or have not seen a financial adviser to review their financial position/opportunities. We can arrange specialist service providers to conduct reviews immediately.

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.

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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