LENDING UPDATE – 24.11.09

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 24.11.09

Key lending issues

  • All lenders have now increased their variable interest rates after RBA announcement
  • Lenders now very cautious about quality of new loan applications
  • First Home Owners Grant benefits to be reduced again on 01.01.2010
  • Fixed rates remain well above variable rates. See table below
  • Some lenders still offering loans up to 95% of property value at higher rates
  • Bankwest launches Capped Rate Home Loan

LENDER COMPARISON

The following table shows some of the more competitive variable rate loans currently available for an average $300,000 loan. 12 month discounted “honeymoon” rate products are excluded. Most lenders are offering loans up to 90%LVR (loan to valuation ratio) although some will go to 95%. Standard 3 year fixed rate loans remain substantially higher than variable rates:

Variable %
LVR
max %
3 Year
Fixed %
RAMS Maximiser 5.44 90+LMI 7.19
Homeside (nab) Home Plus Special<75% 5.47 90 7.49
AFM Complete Option 5.49 90+LMI 8.23
The Rock BS Rock Star 5.49 90 7.39
ING Simplifier Smart Pack 5.53 90+LMI 7.79
PLAN Lending Performance Plus 5.55 90 7.82
CBA Rate Saver 3 yr special 5.56 90+LMI 7.74
Homeside (nab) Home Plus 75-90% 5.57 90 7.49
St George Basic 5.57 90+LMI 7.49
Homeloans Ltd Premium Saver 5.59 90+LMI 8.16
ING Mortgage Simplifier 5.59 90+LMI 7.79
RAMS Smartway Pro Pack 5.59 90+LMI 7.19
St George Advantage Variable 5.59 90+LMI 7.49
Suncorp Standard Variable<90% 5.60 90 7.54
ANZ Breakfree Variable 5.61 90 7.69
ANZ Simplicity Plus 5.61 90 7.69
Westpac Flexi First 5.61 92 7.59
Westpac Premier Advantage 5.61 92 7.39
Police&Nurses CU Dream Home Loan 5.64 95+LMI 7.59
Homeside (nab) Home Plus Variable>90% 5.67 95 7.49
Suncorp Standard Variable>90% 5.80 95+LMI 7.74
Notes

:

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

:

A few lenders will lend up to 95% to new customers, but at higher rates

: +LMI indicates lenders who will add the mortgage insurance premium to the base loan amount

:

All lender approvals are subject to their own specific eligibility criteria

LENDERS DEMANDING GOOD QUALITY APPLICATIONS

Lenders are enforcing a higher standard of loan application now that interest rates are rising. Credit defaults, excessive credit enquiries, unstable employment and poor savings patterns are sufficient reasons for applications to be declined. Loan repayment capability and borrower behaviour patterns are being examined very carefully. When assessing home loan applications, some lenders are now looking closely at repayment patterns on credit card and personal loan accounts currently held with OTHER financial institutions.

BANKWEST CAPPED RATE HOME LOAN

Bankwest has introduced an innovative product called a Capped Rate Home Loan. It is a housing loan where the interest rate is variable, but with a cap placed on the interest rate for a certain time. Features:

  • the interest rate is guaranteed not to exceed a set limit for a pre-determined period. A Capped Rate Home Loan approved now is guaranteed never to exceed 7.99% until 10.11.2012
  • at the expiry of the agreed period, the interest rate reverts to the prevailing Capped Rate at that time
  • a separate fee of 0.15% of the loan amount is charged to purchase a Capped Rate e.g. $450 for a $300,000 loan. A normal establishment fee of $700 also applies.
  • the current interest rate for a Capped Rate loan is 5.90%, higher than all the products shown above.

Contact Melbourne Mortgage Finance for assistance with your new loan application. There is no charge for arranging the new loan 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 is not intended to cover specific personal situations. Every effort has been made to ensure that content is accurate, however lenders are constantly changing products, interest rates and lending policies. Potential borrowers can contact Melbourne Mortgage Finance to discuss their specific financial needs and loan eligibility.

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LENDING UPDATE 14.06.19

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  • INVESTMENT LOANS AT OWNER-OCCUPIER INTEREST RATES
  • REVERSE MORTGAGE LOANS FOR SENIORS OVER 60
READ MORE

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