MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 09.04.14

CURRENT LENDING NEWS

SIMPLE RAPID LOAN REPAYMENT TECHNIQUES

A variety of simple things can be done to fully repay loans in less than half the normal 30 year term:

• pay fortnightly instead of monthly. There are 26 fortnights each year which means 13 payments are made yearly
• commence “principal & interest” repayments immediately and avoid “interest only” options
• pay full salaries straight into the loan account and redraw only what you need
• pay normal monthly living expenses by credit card, then fully clear card debt each month using loan redraw facility
• if interest rates fall, maintain your repayments at the higher rate level
• as salaries increase, make higher voluntary repayments each year

PORTFOLIO LOAN WITH UP TO 10 SUB-ACCOUNTS FOR DIFFERENT PURPOSES

• one master credit limit is approved at 4.99%, with up to 10 different sub-accounts for different purposes
• each sub-account has its own separate credit limit and operates separately
• unused or unrequired sub-account credit limits can be transferred to other sub-accounts
• total credit limit available up to 90% of property value

LOANS UP TO 95% AVAILABLE FOR NON-STANDARD BORROWERS

Attractive loans up to 95% are available to borrowers who do not meet normal lender criteria:

• up to 90% from 5.30% without traditional mortgage insurance or credit scoring
• up to 95% from 5.55% without traditional mortgage insurance or credit scoring
• manual assessment lender’s internal risk fee charged instead of mortgage insurance

BENEFITS STILL AVAILABLE TO FIRST HOME BUYERS

• $10,000 grant for new properties or properties to be built. Maximum price $750,000.
• Principal Place of Residence (PPR) stamp duty exemption up to $3,100. Maximum price $550,000.
• 40% stamp duty discount. Maximum price $600,000.

NEW LENDER OFFERING REVERSE MORTGAGES AND ACCOMMODATION BONDS

• borrow up to 45% of property value depending on age of borrower
• minimum age of youngest borrower is 70
• no formal loan term, no monthly loan repayments required
• 6.70% variable rate, establishment fee $860
• independent legal advice required

MANY VENDORS DO NOT HAVE FINANCE APPROVAL FOR THEIR NEXT HOME

Vendors often sell their current home without establishing their eligibility for finance on the next home or without knowing details of deals available from other lenders:

• vendors should check that they are eligible for the loan on their next property….they may not be eligible
• pre-approval for the next required can be obtained within a few days
• many vendors have used the current lender for years and have no knowledge of deals available from other lenders

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

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.