LENDING UPDATE – 22.01.10

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 22.01.10

Key lending issues

  • First Home Owners Grant in Victoria has reduced to $9000. Conditions and new price limits apply
  • very attractive variable interest rates under 6%pa are still available
  • RAMS will not accept loan applications from mortgage brokers after 26.02.2010
  • lenders are insisting on good quality of loan application and good credit history in anticipation of rising interest rates
  • 95% loans still available from several lenders
  • Westpac and RAMS have both reduced their maximum lending to new customers from 92% loan-to-valuation ratio (LVR) down to 87%
  • Homeside offers rate discounts on loans with lower LVRs

LENDER COMPARISON

The following table shows some of the variable rates currently available for an average $300,000 loan. 12 month discounted “honeymoon” rate products excluded. Standard 3 year fixed rates are also shown and remain much higher than lender variable rates. Some lenders have reduced their 3 year fixed rates.

Variable %
LVR
max %
3 Year
Fixed %
Homeside/nab Homeplus special<75% LVR 5.72 90 7.49
AFM Complete Option 5.79 90+LMI 7.78
PLAN Lending Performance Plus 5.80 90 7.55
Homeside/nab Homeplus 75-90%LVR 5.85 90 7.49
Homeloans Ltd Premium Saver 5.84 90+LMI 7.89
ING Simplifier Smartpack 5.88 90+LMI 7.59
The Rock BS Rock Star 5.89 90 7.39
Homeside/nab HoSuncorp meplus>90%LVR 5.92 95 7.49
CBA Rate Saver 3 yr special 5.93 90+LMI 7.74
ING Simplifier 5.94 90+LMI 7.59
RAMS Smartway Propack 5.94 87 7.29
ANZ Breakfree variable 5.96 90 7.69
ANZ Simplicity Plus 5.96 90 7.69
St George Advantage 5.98 90+LMI 7.54
Suncorp Standard variable<90%LVR 5.99 90 7.54
Police & Nurses Dream Home Loan 5.99 95+LMI 7.59
St George Basic 6.01 90+LMI 7.69
Westpac Flexi First 6.06 87 7.79
Westpac Premier Rocket 6.06 87 7.59
CBA MAV Standard variable 6.11 90+LMI 7.59
Suncorp Standard variable>90% 6.19 95+LMI 7.74
Notes

:

+LMI indicates lenders who will add lender’s mortgage insurance premium to base loan

:

Westpac, St George and CBA will lend up to 95%+LMI only to their own existing customers who have held required accounts for at least 6 months

: Police & Nurses will lend 95%+LMI to new applicants who meet full criteria

:

all lenders approvals are subject to their own specific eligibility criteria

SECOND HOME BUYERS BEWARE !!

Some vendors are selling their existing homes unconditionally without first checking to ensure that they are eligible to borrow for their next home. Sellers should NOT assume that finance will be approved automatically for their next purchase. Reasons for second home buyer loan applications being declined:

  • much tougher bank lending criteria now being enforced
  • erratic repayment history evident on previous loan statements
  • unstable employment patterns since previous loan was approved
  • credit checks may now show repayment defaults or excessive credit enquiries
  • income levels which have reduced or are now inadequate to qualify for new loan amount required

PRE-APPROVALS STRONGLY RECOMMENDED

In view of tougher loan screening by all lenders, we recommend that borrowers arrange pre-approvals prior to purchasing. This also applies to second home buyers before they sell their current homes. Pre-approvals involve submission of a loan application form to a lender with all supporting documentation required. Allow 5 working days for pre-approval confirmation by the lender.

Contact Melbourne Mortgage Finance for assistance with a new loan application. There is NO CHARGE for arranging loan approval for you.

Barry LeBrocq

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

Disclaimer : The above information is intended as general information only and it is not intended to address specific personal situations. Every effort has been made to ensure that content is accurate, however lenders are constantly changing their products and interest rates. Potential borrowers can contact Melbourne Mortgage Finance to discuss their specific financial needs and 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