MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 15.12.11

Key lending issues

• all lenders have now announced their new variable rates following the RBA’s December rate cut
• 3 year fixed rates have continued to tumble to as low as 5.73% p a (conditions apply)
• First Home Buyers again active due to reduced property prices and reduced stamp duty charges
• loans up to 100% of price available to First Home Buyers with strong incomes (conditions apply)

LENDER COMPARISON

This table is in variable rate order and shows some of the residential mortgage products currently available for a $300,000 loan. Initial set up fees, maximum loan-to-valuation ratios (LVRs) and 3 year fixed rates are also shown.
Loans below 6.50% pa are very competitive:

Lender	Loan	Variable %	$ Setup Fee	LVR max %	3 Year Fixed %
PLAN Lending/nab	Low Rate <75%	6.25	nil	75	5.88**
Suncorp	Money Manager<80%	6.30	nil	80	5.99
PLAN Lending/nab	Low Rate 75-90%	6.35	nil	90+LMI	5.98
PLAN Lending/nab	Performance Plus<75%	6.35	nil	75	5.98
Aust First Mortgage	Complete ProPack<75%	6.35	275	75	6.69
Bankwest	Premium Select<75%	6.35	nil	75	6.29
Homeside/nab	HomePlus<75%	6.35	nil	75	6.24
Heritage Bldg Soc	Discount Variable	6.35	600	95	5.95
Police&Nurses C U	Easy Pay Plus<75%	6.39	692	75	6.20
Macquarie	Classic<80%	6.39	nil	80	5.99
ANZ	Breakfree<80%	6.40	nil	80	6.14
Bankwest	Super Start 3 year	6.40	nil	95+LMI	6.29
CBA	MAV Variable<80%	6.41	150	80	6.33
Adelaide Bank	Variable SmartSaver	6.44	495	95+LMI	6.49
Bankwest	Premium Select >75%	6.45	nil	95+LMI	6.29
PLAN Lending/nab	Performance Plus 75-90%	6.45	nil	90+LMI	6.08
Aust First Mortgage	Complete ProPack	6.45	275	90+LMI	6.69
Citibank	Basic <70%	6.45	600	70	5.94
Homeside/nab	HomePlus 75-90%	6.45	162	90+LMI	6.24
ANZ	Breakfree>80%	6.45	nil	92	6.14
ING	Simplifier Smartpack	6.46	719	95+LMI	5.99
CBA	MAV Variable 80-90%	6.46	150	90+LMI	6.33
AMP	Variable Propack	6.47	295	90+LMI	5.99
Macquarie	Classic >80%	6.49	nil	90	5.99
CBA	3 year Rate Saver	6.49	750	95+LMI	6.48
Police&Nurses C U	Dream Home Loan	6.49	1342	95+LMI	6.20
Rock Bldg Soc	Rock Star Special	6.49	200	90+LMI	6.19
——————————————————————————————————————————————————-
ANZ	Simplicity Plus Special	6.50	600	92	6.29
Bank of Melbourne	Advantage	6.50	100	95+LMI	6.24
AMP	Basic Spring Special	6.52	545	90+LMI	5.99
Citibank	Basic	6.52	649	80	5.94
Heritage Bldg Soc	Basic	6.53	600	95	5.95
Police&Nurses C U	Easy Pay Plus	6.54	692	95+LMI	6.20
Adelaide Bank	Variable SmartFit	6.54	495	95+LMI	6.49
Aust First Mortgage	Complete Variable	6.80	275	90+LMI	6.77
CBA	MAV Variable>90%	6.56	150	95+LMI	6.33
Bank of Melbourne	Basic	6.57	600	95+LMI	6.39
ANZ	Simplicity Plus	6.60	600	92	6.29
Suncorp	Back to Basics	6.60	nil	95+LMI	5.99
Bankwest	Premium	6.60	nil	95+LMI	6.29
Homeside/nab	HomePlus	6.60	162	95	6.24
CBA	No Fee	6.61	nil	95+LMI	6.48
ING	Simplifier	6.62	220	95+LMI	5.99
PLAN Lending/nab	Performance Plus>90%	6.63	nil	95+LMI	6.26
Phoenix Circle C U	Standard	6.65	600	95	–
Westpac	Flexi First	6.66	600	95+LMI	6.39
Westpac	Rocket	6.66	nil	95+LMI	6.19
Citibank	Basic>80%	6.66	649	85	5.94

Notes *	* PLAN Lending currently offers 5.73% fixed for 3 years if a loan is split 50/50 fixed/variable <75% LVR
:	maximum LVR is 95% for purchases and 90% for refinances
:	+LMI indicates lenders willing to add the Lender’s Mortgage Insurance premium to the base loan
:	“low doc” loans are available up to 80% of value, but at higher rates than the “full doc” rates shown above
:	monthly / Professional Package fees may also apply on some loans

DID YOU KNOW ???????????

• some lenders will advance the $20,000 construction First Home Owners Grant (FHOG) at land settlement stage. This greatly resolves the problem of funding the land purchase and government stamp duty at land settlement stage. Most lenders will only advance the Grant after the house has reached slab stage.
• some lenders will approve “low doc” loans for self-employed borrowers up to 80% of valuation using only bank trading statements or an Accountant’s verification letter . Most banks require official ATO BAS statements.
• loans are available to build up to 4 units on a single Title at residential loan rates, not commercial rates.
• some lenders will approve 95% loans and add the full 3.5% mortgage insurance premium to the loan i.e. total approved loan is 98.5%. Other lenders will limit the addition of the mortgage insurance premium so that the total loan does not exceed 97%. Borrowers must pay the difference of 1.5% in cash from savings.
• 100% finance is available to First Home Buyers using a 95% loan, a secured $20,000 credit card advance and the FHOG. Strong income and other conditions apply. 100% finance is also available using a Parental Guarantee loan.

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.