LENDING UPDATE – 24.11.10

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 24.11.10

Key lending issues

  • All lenders have now announced their new variable mortgage loan rates
  • Smaller banks and non-bank lenders are now very competitive compared to the major banks
  • Several lenders have introduced cash incentives up to $1000 to encourage refinance applications
  • Early exit/deferred establishment fees have been eliminated or reduced by some banks, but not by Westpac.
  • Loans up to 95% of valuation are readily available, but savings and income proof are essential
  • Genuine savings of 5% deposit required by most lenders. One lender will accept 3% genuine savings.
  • First Home Owners Grant is $7,000 for established properties, $20,000 for newly-built properties. Conditions apply.
  • Some lenders are offering excellent rates as a reward for greater deposit or equity.
  • Loans involving fixed rates have increased from 5% to nearly 20% of all new loan applications

LENDER COMPARISON

The following table shows some of the better variable rate residential mortgage products for an average $300,000 loan. Current 3 year fixed rates are also shown, as well as lender maximum loan-to-valuation ratios (LVRs). 12 month “honeymoon” products are excluded:

Variable %
LVR max %
3 Year Fixed %
PLAN Lending Performance Plus <65% LVR 6.88 65 7.30
Homeside/nab Homeplus <75% LVR 6.90 75 7.20
Adelaide Bank Smartfit Special 6.94 95+LMI 7.59
ING Simplifier Smartpack Special 6.96 90+LMI 7.44
PLAN Lending/nab Performance Plus >65%LVR 6.98 90+LMI 7.40
Police & Nurses C U Dream Home Loan 6.99 95+LMI 7.35
CBA 3 Year Special Rate Saver 6.99 90+LMI 7.39
The Rock Bld Society Rock Star Special Offer 6.99 95 7.24
Homeside/nab Homeplus 75-90% LVR 7.00 90 7.20
AMP Basic Variable Spring Special 7.02 90+LMI 7.09
Heritage Bld Society Basic 7.03 90 7.15
Homeloans Ltd Ultra < 65% LVR 7.04 65 7.74
Homeside/nab Homeplus > 90% LVR 7.10 95 7.20
Bankwest Premium 7.10 95+LMI 7.44
ANZ Simplicity Plus 7.10 92 7.10
St George Advantage 7.10 92 7.09
CBA MAV Standard Variable 7.11 90+LMI 7.24
St George Basic 7.13 92 7.44
Homeloans Ltd Ultra > 65% 7.14 90+LMI 7.74
Suncorp Back to Basics <90% LVR 7.15 90 7.39
Westpac Flexi First 7.16 92 7.49
Westpac Premier Advantage Rocket 7.16 92 7.09
Aust. First Mortgage Complete Option 7.17 90+LMI 7.63
Bankwest Rate Cutter 7.30 95+LMI 7.44
Suncorp Back to Basics >90% LVR 7.35 95+LMI 7.59

STANDARD VARIABLE RATES (MAJOR BANKS)

Variable %
NAB Tailored Variable 7.67
ANZ Standard Variable 7.80
CBA Standard Variable 7.81
Westpac Rocket Standard Variable 7.86
Notes : each lender has specific terms and conditions which must be satisfied.
: “low doc” loans will usually be offered at higher interest rates than shown above
: CBA, Westpac, St George and ANZ will lend up to 95%+LMI only to their own existing customers. Conditions apply.
: +LMI indicates those lenders who will add the mortgage insurance premium to the maximum LVR shown

CONSIDER REFINANCING

Borrowers should carefully consider the benefits of refinancing to another bank. If your current interest rate is around 7.1-7.2%, the costs of refinancing may not justify the move. It could take 2-3 years to recoup these costs in the pursuit of a marginally lower interest rate. However, many borrowers are being charged the full standard variable rate of 7.7-7.8%. In these circumstances, refinancing may well be justified, especially if exit costs are minimal and the new lender does not charge an application fee and/or offers a substantial cash incentive to refinance.

INVESTMENT PROPERTY PURCHASES

Melbourne Mortgage Finance would be pleased to introduce you to specialists who can assist you with the purchase of residential investment property including specialist taxation and accounting advice and regular reviews of your portfolio position.

PERSONAL RISK INSURANCE REVIEW

We also offer access to expert insurance brokers who can find the most competitive deal for personal risk insurance from 10 leading Australian insurance companies. Personal risk insurance includes: life insurance, income protection, disability and trauma cover.

Please call Melbourne Mortgage Finance for FREE and IMMEDIATE assistance with the arrangement of your mortgage loan for purchase or refinance

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
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. While every effort has been made to that content is accurate, potential borrowers should contact Melbourne Mortgage Finance to verify details and discuss their specific 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

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