MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 18.08.10

Key lending issues

• variable rates again held steady by Reserve Bank
• most lenders have reduced their fixed rates recently. The gap between variable and fixed rates is now much narrower.
• loans up to 95% of valuation still available. One lender does not require proof of 5% genuine savings
• smaller non-bank lenders currently offering excellent loan packages
• FHOG now $7000 for established homes. $20,000 is available for newly built homes in Melbourne and $26,500 for newly built homes in regional areas
• excellent deals are available for clients wanting to refinance, especially if the loan is below 75% of valuation. See table below
• Melbourne Mortgage Finance can now arrange introductions to very good specialist RAPID DEBT REDUCTION and INVESTMENT PROPERTY ACQUISITION plans

LENDER COMPARISON : NORMAL RESIDENTIAL LOANS (18.08.2010)

The following table shows some of the more competitive variable rate residential mortgage products available for a $300,000 loan. 12 month “honeymoon” rate products excluded. Lenders’ maximum loan-to-valuation ratios (LVRs) are shown along with currently available 3 year fixed rates.

		Variable %	LVR max %	3 Year Fixed %
PLAN Lending	Performance Plus<65%	6.45	65	7.15
Homeside/nab	Homeplus <75%	6.47	75	7.19
Homeloans Ltd	Premium Saver<65%	6.49	65	7.49
PLAN Lending	Performance Plus	6.55	90+LMI	7.15
Homeside/nab	Homeplus 75-90%	6.57	90	7.19
AFM	Secure Option	6.59	95	7.38
Homeloans Limited	Premium Saver	6.59	90+LMI	7.49
The Rock B Soc	Rock Star special	6.64	90	7.19
Homeside/nab	Homeplus>90%	6.67	95	7.19
ING	Simplifier Smartpack	6.68	90+LMI	7.09
CBA	3 yr Special	6.68	90+LMI	7.44
Bankwest	Premium Home Loan	6.70	85	7.38
ANZ	Breakfree Pro-pack	6.71	90	7.35
ANZ	Simplicity Plus	6.71	90	7.35
St George	Advantage Pro-pack	6.73	90+LMI	7.44
Adelaide Bank	Smartfit	6.74	90+LMI	7.59
ING	Simplifier	6.74	90+LMI	7.09
Police & Nurses C U	Dream Home Loan	6.74	95+LMI	7.39
St George	Basic	6.76	90+LMI	7.44
Suncorp	Back to Basics<90%	6.76	90	7.44
AMP	Basic	6.77	90	7.39
Westpac	Flexi First	6.81	87	7.19
Westpac	Rocket Pro-pack	6.81	87	7.19
CBA	MAV Standard Variable	6.68	90+LMI	7.29
AFM	Flexible Option	6.89	90	7.59
Citibank	Mortgage Plus	6.89	90	7.29
Suncorp	Back to Basics>90%	6.96	95+LMI	7.64
Bankwest	Lite Plus	7.08	90	7.38
Bankwest	Mortgage Shredder	7.30	95+LMI	7.38

Notes :	Westpac , CBA , StGeorge and ANZ will lend up to 95% of valuation only to their own customers who have held satisfactory accounts for a 6 month period
	interest rates and LVRs will be different for “low doc” loans
	+LMI indicates lenders who will add the “once off” mortgage insurance premium to the base loan amount required

BROKER LICENSING LEGISLATION :

has been in force since 01.07.2010. Mortgage brokers are now required to place additional emphasis on documenting and verifying that a borrower’s financial position is correct and that the loan being proposed is suitable for the client with manageable loan repayments.

Melbourne Mortgage Finance now has access to affiliates who offer

• a detailed and carefully-monitored DEBT REDUCTION package and
• a detailed and monitored INVESTMENT PROPERTY ACQUISITION package.

Please call if you or any of your clients would like an introduction to either programme.

Excellent deals are available for clients with good equity to REFINANCE to much lower rates. See table above.

Contact Melbourne Mortgage Finance for assistance with a new loan application or scenario discussion. There is NO CHARGE for arranging loans which proceed to settlement.

Barry LeBrocq

Melbourne Mortgage Finance
Mob 0437417042
Web www.mmfinance.com.au

Disclaimer : The above information is intended as general information only and is not intended to address specific personal situations. Every effort has been made to ensure that content is accurate. Potential borrowers should contact Melbourne Mortgage Finance to discuss specific financial needs and loan eligibility.