LENDING UPDATE – 10.09.13

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 10.09.13

LENDER DEPOSIT REQUIREMENTS

Most lenders offer mortgage loans up to 95% of property value. They will require proof of genuine savings equal to 5% of the purchase price. These funds must have been held in a savings account for three full months prior to any loan application. There are some lenders, however, who have different policies:

  • several lenders will lend up to 90% where non-genuine savings (gift, tax refund, sale of asset, inheritance) are held as deposit
  • two lenders will lend up to 95% where perfect rent payment records can be demonstrated in lieu of genuine savings. Conditions apply.

All applicants wanting 90% or 95% loans must demonstrate:

  • sufficient funds to cover the full deposit and all costs associated with the purchase
  • clean credit histories
  • steady employment and adequate income to service the loan

DRAMATIC EFFECT OF ADDITIONAL REPAYMENTS

Relatively small additional repayments can have a dramatic effect in reducing the term of the loan. On an average $300,000 loan (5% pa) additional repayments will fully clear the loan as follows:

Payments $pm Term of Loan
1610 30 years
1754 25 years
1980 20 years
2372 15 years

Loans can be paid off even quicker using other additional techniques:

  • direct credit of your full salary straight into your loan account and access funds using redraw facility
  • make weekly repayments instead of monthly repayments
  • pay occasional lump sums straight off the loan balance e.g. gifts, tax refunds and proceeds from asset sales

FIXED RATES MAY HAVE BOTTOMED OUT

Lender fixed rates have been reducing steadily over the last 2 years. This week, however, CBA has announced the following changes to their fixed rate products:

  • 2 year fixed rate has reduced by 0.10%
  • 3 year fixed rate has increased by 0.05%

This may be an early indicator that market fixed rates have bottomed out.

SWITCHING YOUR CONTRACT VARIABLE RATE TO A FIXED RATE

Most loan contracts are based on a variable rate. If borrowers wish to switch to a fixed rate (full or partial), lenders will usually offer customers a variety of fixed rates options from 1 to 5 years. An amended loan contract can be issued reflecting the required fixed rate. The cost of arranging an amended contract can range from $100 to $300, depending on the lender. The cost of a contract switch will be stated in the original loan contract.

BUILDING AND PEST INSPECTIONS

Buyers can sign “Private Sale” contracts with special conditions allowing them to obtain satisfactory building and pest inspection reports. Contracts should allow 7 days for written inspection reports to be obtained. Buyers should have the option to withdraw from the contract if the inspection results are unsatisfactory in the buyer’s opinion. Vendors may require a copy of the inspection report. Auction contracts do not allow for inspection conditions to be written into the contract.

Contact Melbourne Mortgage Finance on 0437417042 for further details or to discuss your 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

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
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  • 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