LENDING UPDATE – 07.04.11

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 07.04.11

Key lending issues

  • No change to official RBA interest rates in April
  • Many lenders offering incentives to borrowers in a very competitive market
  • Major lenders offering discounts of up to 1.0% for larger loans up to $1.0m
  • First Home Owners Grant still available until 30.06.2011
  • All lenders assessing loan repayment capability very carefully
  • Discounted rates are offered by some lenders for loans below 75% of security value
  • Several lenders have reduced their 3 year fixed rates. Leading 3 year rate is 6.99%

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.

Lender Loan
Variable
%
$ Setup
Fee

LVR
max %

3 Year
Fixed %
PLAN Lending/nab Performance Plus<65% 6.88 nil 65 7.25
Homeloans Ltd UltraPlus<65% 6.89 1410 65 7.74
Bankwest 3 Year Super Start 6.90 nil 95+LMI 7.44
Homeside/nab Homeplus<75% 6.90 762 75 7.29
Citibank Basic Special<70% 6.95 649 70 7.34
ING Simplifier Smartpack 6.96 719 95+LMI 7.30
PLAN Lending/nab Performance Plus65-90% 6.98 nil 90+LMI 7.35
Suncorp Money Manager Special 6.98 nil 95+LMI 7.39
CBA Rate Saver 3 year Special 6.99 150 95+LMI 7.39
Police& Nurses CU Dream Home Loan 6.99 1342 95+LMI 7.15
Rock Building Soc Rock Star Special 6.99 200 90+LMI 6.99
Homeside/nab Homeplus 75-90% 7.00 762 90 7.29
ANZ Breakfree 7.00 375 92 7.19
St George Advantage Special 7.00 495 95+LMI 7.29
Citibank Basic Special 70-80% 7.02 649 80 7.34
Heritage Build 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 7.39
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 7.09 105 90+LMI 7.63
ANZ Simplicity Plus 7.10 600 92 7.34
Bankwest Premium 7.10 nil 95+LMI 7.44
CBA MAV Variable 7.11 500 95+LMI 7.24
Westpac Premier Rocket 7.11 nil 95+LMI 7.29
ING Simplifier 7.12 220 95+LMI 7.30
St George Basic 7.13 600 95+LMI 7.44
PLAN Lending/nab Performance Plus>90% 7.13 nil 95 7.50
Westpac Flexi First 7.16 nil 95+LMI 7.49
AMP Propack 7.17 644 90+LMI 7.44
Homeloans Ltd Prosmart 7.24 1020 95+LMI 7.95
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. Refinances are usually 90% maximum
: ANZ will lend up to 95% to its own customers who have had required accounts for 6 months
: +LMI indicates lenders who will add the Lender’s Mortgage Insurance premium to the base loan amount up to a maximum of 97%
: “low doc” loans are available at higher rates than the “full doc” loans shown above

PRE-APPROVALS ARE IMPORTANT

Borrowers should generally arrange pre-approvals before signing a Contract of Sale. This is especially important when borrowers are relying on obtaining the maximum loan amount and/or the maximum LVR.

With no margin for error, a loan pre-approval is essential on tight deals, especially when an unconditional auction purchase is involved. A deposit paid at auction can easily be forfeited if finance cannot be obtained after purchase.

FIRST HOME OWNERS GRANT EXPIRES ON 30.06.2011

The current FHOG of $7000 for established properties and $20,000 for newly-built properties is due to expire at the end of June. No announcement has been made if the FHOG will be extended after June.

PARENTAL GUARANTEE” HOME LOANS UP TO 110% OF PURCHASE PRICE

Several lenders offer loans whereby applicants can borrow the full purchase price plus costs. This involves a loan up to 80% of the property’s purchase price and a separate loan for up to 30% secured by the parents’ property. Borrowers must have sufficient income to service both loans adequately. Parents are required to sign a Security Guarantee and must now also prove their own repayment capability for the 30% portion.

Please call Melbourne Mortgage Finance for FREE and IMMEDIATE assistance in arranging your 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.

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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.
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Director & Licensed Conveyancer
Property Conveyancing Group, VICTORIA

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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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