Posts Tagged ‘Melbourne mortgage finance’

What types of variable rate home loans are available?

  • Standard Variable Home Loans:

    This loan has all the features you want in a home loan with a standard variable rate. No interest rate discount is offered to this loan and normal fees may apply.

  • Basic Variable Home Loans:

    This loan has most of the features you want in a home loan with a lower variable rate. These loans are often available with no establishment or ongoing monthly fees. Very attractive to buyers who want to reduce their monthly repayment and save on fees, while still having most of the regular loan features.

  • Professional Package Home Loans:

    These loans have a reduced variable rate with no establishment or ongoing monthly fees on the first loan or any subsequent loans taken. Other benefits include discounts on insurance products, credit cards, financial plans or transaction accounts. Most lenders will charge an annual fee of $300-400 on these loan types.

  • Low Doc Variable Home Loans:

    This loan is designed specifically for self-employed people who do not have sufficient proof of income to qualify for a normal loan. Higher deposit is needed and rates will be higher with this loan.

  • Offset Variable Home Loans:

    Your loan account is linked to a separate savings account to enable interest earned on the savings account to offset or reduce the interest which would normally be calculated on the loan account.

  • Parental Guarantee Loans:

    This loan allows parents to offer their home as additional security so that 100% of the purchase price can be borrowed, plus costs in some cases.
    The loan will not exceed 80% of the combined security value and no mortgage insurance will be payable. See What is a Parental Guarantee? FAQ below

  • Property Share Loans:

    An easy to manage home loan option which allows friends or relatives to purchase a property together but keep their loans separate.
    For example, a $400,000 loan can be split into two separate portions with two separate account numbers. Property Share can help first home buyers and investors to make a puchase which might not otherwise occur.

What is the maximum loan to value percentage I can borrow?

Most lenders will approve 90% of the purchase price and then add the mortgage insurance premium to the loan amount as well. This could bring the total loan to approximately 92% of the price. You would then need to contribute

  • 10% deposit
  • State Government stamp duty
  • Titles Office fees
  • your solicitor’s fee
  • your share of the annual Council rates charge

A few lenders will approve 95% of the purchase price which means you will need a 5% deposit. You will then pay a higher mortgage insurance premium because of the additional risk to the lender. The other fees and expenses listed above must still be paid.

The First Home Owners Grant will assist you pay some of the State Government stamp duty, but usually not all of it.

In general terms, the best course of action is: start saving as early as possible, save as much as possible and keep your bank statements to prove your savings record.

Can I have a combination of Fixed and Variable rates?

Yes.

Most lenders will allow you to have a combination. Both portions will have separate account numbers so they can operate independently on different interest rates. The variable rate portion can usually be paid off rapidly with no restrictions, while the fixed rate portion protects you against possible future rate rises. Additional payments can usually be made on the fixed rate portion as well, but lenders generally place restrictions on the amount of additional repayments allowed each year.

Can I “lock in” my fixed rate prior to settlement?

Lenders usually offer a fixed rate “lock in” option. This means that the fixed rate offered in your Loan Contract can be guaranteed to be held at that rate right up until settlement regardless of any changes to the lender’s published fixed rates in the meanwhile. There will usually be a time limit of 60 or 90 days and lenders will usually charge a fixed rate “lock in” fee to be paid upfront at the time your Loan Contract is signed.

If you believe that fixed rates may increase prior to your property settlement, check your lender’s fixed rate “lock in” policy as it may be financially beneficial to secure the available current fixed rate now.

What is a Parental Guarantee?

Borrowers often have a shortage of deposit or insufficient funds to cover the cost of stamp duty and mortgage insurance. Most lenders will allow a Parental Guarantee.
This means that the parents’ home can also be offered as additional security to the lender. Parents will be required to sign mortgage and guarantee documents for this to occur. The approved loan may cover 100% of the purchase price plus costs, but the loan amount is no higher than 80% of the total security offered. This means that buyers can purchase immediately rather than having to wait until sufficient funds are saved. The usual mortgage insurance premium will also be eliminated.

Lenders will have strict rules concerning Parental Guarantees and adequate proof of income and ability to repay must be provided. When borrowers have sufficient equity in the purchased property, the lender will no longer require the Parental Guarantee and the parents’ property title will be returned to them.

Lenders will require parents to receive independent legal advice prior to settling a Parental Guarantee loan.

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

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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