MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 07.10.11

Key lending issues

• no change to official RBA variable interest rates again in October
• 95% loans readily available for borrowers with solid income, employment and savings record
• some lenders have further reduced their 3 year fixed rates. 16% of new loans now fixed rate
• more lenders offering lower variable rates for loans below 80% of property value
• stamp duty savings and lower prices encourage First Home Buyers
• several lenders offering cash incentives to encourage refinance from other banks
• second tier banks and non-bank lenders offering excellent deals

LENDER COMPARISON

This table shows SOME of the better residential mortgage products currently available for a $300,000 loan from well-known lenders. Initial set-up fees, maximum loan-to-valuation ratios (LVRs) and 3 year fixed rates are shown.

Lender	Loan	Variable %	$ Setup Fee	LVR max %	3 Year Fixed %
Suncorp	Money Manager<80%	6.80	300	80	6.45
PLAN Lending/nab	Performance Plus<75%	6.85	nil	75	6.49
Aust First Mortgage	Complete ProPack<75%	6.85	435	75	6.72
Bankwest	Premium Select<75%	6.85	nil	75	6.59
Heritage Bldg Soc	Discount Variable	6.85	600	95	6.35
Homeside/nab	HomePlus<75%	6.85	162	75	6.44
Police&Nurses C U	Easy Pay Plus<75%	6.89	1042	75	6.35
Adelaide Bank	SmartSaver	6.89	495	95+LMI	6.49
Macquarie	Classic<80%	6.89	nil	80	6.69
Bankwest	Super Start	6.90	nil	95+LMI	6.59
ANZ	Breakfree<80%	6.90	nil	80	6.34
CBA	MAV Variable<80%	6.91	500	80	6.43
PLAN Lending/nab	Performance Plus 75-90%	6.95	nil	90+LMI	6.59
Bank of Melbourne	Advantage<80%	6.95	495	80	6.39
Aust First Mortgage	Complete ProPack	6.95	435	90+LMI	6.72
Bankwest	Premium Select	6.95	nil	95+LMI	6.59
Citibank	Basic <70%	6.95	600	70	6.34
Homeside/nab	HomePlus 75-90%	6.95	162	90+LMI	6.44
ING	Simplifier Smartpack	6.96	719	95+LMI	6.29
CBA	MAV Variable 80-90%	6.96	500	90+LMI	6.43
AMP	Variable Propack	6.97	645	90+LMI	6.39
CBA	3 year Rate Saver	6.99	750	95+LMI	6.74
Adelaide Bank	Variable SmartFit	6.99	495	95+LMI	6.49
Macquarie	Classic	6.99	nil	90	6.69
Police&Nurses C U	Dream Home Loan	6.99	1342	95+LMI	6.35
Rock Bldg Soc	Rock Star Special	6.99	200	90+LMI	6.29
——————————————————————————————————————————————————-
ANZ	Simplicity Plus Special	7.00	nil	92	6.49
Bank of Melbourne	Advantage	7.00	495	95+LMI	6.39
AMP	Basic	7.02	545	90+LMI	6.39
Citibank	Basic 70-80%	7.02	649	80	6.34
Heritage Bldg Soc	Basic	7.03	600	95	6.35
Police&Nurses C U	Easy Pay Plus	7.04	1042	95+LMI	6.35
Aust First Mortgage	Complete Variable	7.05	275	90+LMI	6.72
CBA	MAV Variable>90%	7.06	500	95+LMI	6.43
Westpac	Flexi First Option	7.06	nil	95+LMI	6.64
Bank of Melbourne	Basic	7.08	600	95+LMI	6.54
Citibank	Basic 80-90%	7.09	649	90	6.34
ANZ	Simplicity Plus	7.10	nil	92	6.49
Bankwest	Premium	7.10	nil	95+LMI	6.59
Homeside/nab	HomePlus>90%	7.10	162	95	6.44
Suncorp	Back to Basics	7.10	nil	95+LMI	6.45
CBA	No Fees	7.11	nil	95+LMI	6.74
ING	Simplifier	7.12	220	95+LMI	6.29
PLAN Lending/nab	Performance Plus>90%	7.13	nil	95+LMI	6.74
Phoenix Circle C U	Standard	7.15	nil	95	–
Westpac	Rocket Premier	7.16	395	95+LMI	6.44

Notes :	maximum LVR for purchases 95%, and 90% for refinances
:	+LMI indicates lenders willing to add the Lender’s Mortgage Insurance Premium to base loan amount
:	“low doc” loans are available up to 80% at higher rates than the “full doc” rates shown above
:	monthly or annual fees may apply on some loans
:	fixed rates shown may be subject to specific conditions

USEFUL LENDING TIPS

• The security property still must be acceptable to the lender, even if a “pre-approval” has been obtained. Unusual titles such as Company Share or Stratum titles as well as High Density/Inner City units may not be accepted
• a VEDA credit check review is essential prior to lodging a loan application
• look at loans offered by other lenders, not just your current bank
• attractive refinance/debt consolidation packages may result in substantial monthly cashflow benefits

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.