LENDING UPDATE – 09.04.13

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 09.04.13

SPECIALIST LENDERS FOR “NON-CONFORMING”  BORROWERS

A substantial percentage of borrowers do not meet normal mainstream lender credit policy requirements:

  • inadequate personal savings and reliance on a gift
  • short term PAYG employment or contract employment
  • borrowers needing 100% of the purchase price relying on a parental guarantee
  • “low doc” loans with Accountant’s letter or trading account statements for proof of income
  • impaired credit history with defaults, paid or unpaid
  • excessive credit enquiries or consolidation of a large number of existing debts
  • tax debts
  • previous bankrupts now earning good PAYG income
  • unusual sources of income: insurance payments, probation income, board, pensions
  • older borrowers who can show a clear debt repayment strategy
  • security properties up to 150 acres
  • refinancing of business debt at residential home loan rates
  • borrowers who need the First Home Owner’s Grant for land settlement rather than at slab stage

Specialist non-bank lenders and some smaller banks will often consider applications from borrowers in the above circumstances. Interest rates will generally be higher, but loans can often be refinanced to a normal lender in 12 months time if loan repayment history is good.

TIME TO LOCK- IN A FIXED RATE?

Numerous lenders have recently communicated that now might be a good time to take all or part of a property loan on a fixed rate. Fixed rates are currently available from as low as 4.79% and are generally well below variable rates. Borrowers must be aware that conditions and restrictions apply to fixed rate loans, and all lenders require a Fixed Rate Acknowledgement form to be signed prior to settlement. Selecting a fixed rate is optional and borrowers may also opt to pay a fixed rate “lock-in” fee to protect themselves against an increase in the fixed rate prior to loan settlement.

REGULATORY CHANGES TO REVERSE MORTGAGE LOANS

ASIC has announced new requirements for reverse mortgages. Effective from 01.05.2013 :

  • borrowers must receive a lender’s Reverse Mortgage Information statement
  • borrowers must receive a Tenancy Protection Warning statement
  • borrowers must receive a copy of their remaining equity projection calculations  using ASIC’s new calculator
  • borrowers must receive and sign a lender’s Reverse Mortgage Loan Disclosure statement
  • lenders must receive copies of all the above documents signed by the borrower
  • lenders application forms will ask specific questions about inheritance intentions and possible aged care costs

95% NON-GENUINE SAVINGS HOME LOAN PRODUCT

Until now, lenders have required borrowers to show evidence of 5% genuine deposit savings. However, a new loan is now available allowing borrowers to obtain a 95% loan with a gifted or borrowed  deposit. Conditions:

  • clear credit history
  • a minimum of 12 months employment in current job or 24 months in current  industry for all borrowers
  • evidence of source of deposit must be supplied
  • purchase of established residential property only
  • repayments on a borrowed deposit must be included in repayment eligibility calculation worksheet
  • maximum loan is 95% of valuation and includes lender mortgage insurance risk fee

Barry LeBrocq
Melbourne Mortgage Finance
Patterson Lakes, VIC
Mob 0437417042

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

Melbourne Mortgage Finance offers an extensive range of mortgage products and services including

Home Loans, Investment Loans, Equity Access Loans, Low Doc Loans, 100% Loans, Refinance Loans, Commercial Loans, Deposit Bonds, Reverse Mortgages, Accommodation Bonds, Vehicle Finance, Plant and Equipment Finance, Financial Planning and Business Finance.

IMMEDIATE appointment can be made to meet at your home or office

  • NO CHARGE for assisting you. We receive a standard fee from the lender you select
  • reliable service, communication and follow-up. See “Testimonials
  • accreditation with 20 national lenders, allowing you to select from an excellent range of loans
  • we carefully listen to your needs, do our research, then present you with a short-list of three potential loan solutions. You choose the lender.
  • printouts of products, fees, interest rate and loan features are provided
  • arrange for your property insurance and personal insurance requirements to be assessed
  • ongoing availability to assist you after loan settlement
  • over 30 years experience in arranging finance and mortgage loans