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 12.05.20

  • REFINANCE HOME LOANS AVAILABLE FROM 2.09%
  • FIRST HOME LOAN DEPOSIT SCHEME
  • REVERSE MORTGAGE LOANS FOR SENIORS OVER 60
  • UNLIMITED NUMBER OF DEBTS CAN BE CONSOLIDATED
READ MORE

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 12.05.20

REFINANCE HOME LOANS AVAILABLE FROM 2.09%

  • many borrowers are still paying over 3% on the owner-occupier home loans and high rates on cards and P/Ls
  • refinance loans are available from 2.09% fixed for 2 years principal & interest
  • significant cash flow benefits can be gained by refinancing a current home loan and paying out other debts too

FIRST HOME LOAN DEPOSIT SCHEME

  • on a maximum $600,000 purchase price, First Home Buyers often require a 95% $570,000 loan
  • the normal Lender’s Mortgage Insurance (LMI) premium would be approximately $20,000 depending on lender
  • the Federal Government FHLDS allows loans up to 95%, but effectively eliminates the normal LMI premium
  • up to a purchase price of $600,000, there is no stamp duty for First Home Buyers in Victoria
  • FHBs approved under the FHLDS will pay no stamp duty and no LMI premium…a massive saving
  • a full application must be lodged through one of the approved FHLDS lenders
  • once approved, customers then have 90 days to sign a Contract of Sale and send it to the lender
  • customers must be FHBs and qualify for the required loan amount under lender’s normal eligibility rules

REVERSE MORTGAGE LOANS FOR SENIORS OVER 60

  • a specialist lender is available to provide finance to seniors who are retired or still working
  • applicants must be over 60 and be able to offer a suitable residence as security for the loan
  • a holiday home or investment property can be offered as security, but the loan amount on these will be reduced
  • at 60, the maximum loan is 15% of property value and this increases by 1% each year after that (age 70 = 25%)
  • funds may be spent on any worthwhile consumer purpose, but not for business
  • monthly loan repayments are not required, but can be made voluntarily to stop the loan balance increasing

UNLIMITED NUMBER OF DEBTS CAN BE CONSOLIDATED

  • one lender allows an unlimited number of debts to be consolidated into one refinance Home Loan
  • loan amount cannot exceed 90% of property valuation
  • significant monthly repayment cash flow benefits can result
  • statements showing good repayment record are required for each debt being paid out

Barry LeBrocq
Melbourne Mortgage Finance
Mob 0437417042
Web www.melbournemortgagefinance.com.au

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 14.06.19

LIVING EXPENSES ARE NOW A KEY ISSUE

  • in the past, lenders generally used minimum poverty line living expense allowances when assessing loans
  • most lenders have recently increased the allowance for living expenses when calculating borrowing power
  • increased allowance for living expenses can significantly reduce customer borrowing power
  • most lenders now require applicants to complete a detailed Living Expenses worksheet as part of an application
  • some lenders require the last three months bank statements and will assess living expenses from the statements
  • applicants should eliminate any unnecessary living expenses during the three months prior to applying for a loan
  • minimising unnecessary living expenses and increasing savings are both important when applying for finance
  • loan applications must be very carefully prepared to satisfy stricter lender assessment standards

COMPREHENSIVE CREDIT REPORTING NOW IN EFFECT

  • all lenders obtain a Credit Report when assessing home loan applications
  • Credit Reports now provide far more detailed information about loan repayment history than before
  • lenders can look at repayment history over a two year period on existing loan accounts held by borrowers
  • borrowers should make repayments on time and avoid erratic repayment histories on their Credit Reports
  • obtaining a copy of your personal Credit Report is very important prior to applying for finance

INVESTMENT LOANS AT OWNER-OCCUPIER INTEREST RATES

  • some lenders will approve finance for investment purposes at owner-occupier rates
  • borrowers must offer their primary residence as security for the loan, not the investment property
  • loan purpose might include purchase of investment property or purchase of shares
  • example : $400,000 home loan and $200,000 investment loan for shares, both financed at owner-occupier rate

REVERSE MORTGAGE LOANS FOR SENIORS OVER 60

  • specialist lenders are available to provide finance to seniors who have retired
  • residence is offered as security for most loans, but holiday home or investment property can also be offered
  • loan amount calculation depends on value of property and age of younger borrower
  • common purposes : home improvements, clearance of other debts, extra monthly income, car, travel
  • independent legal advice is compulsory and loan contracts must be signed in presence of customer’s solicitor

Barry LeBrocq
Melbourne Mortgage Finance
Mob 0437417042
Web www.melbournemortgagefinance.com.au

NOTE: Loans offered are available at time of Update release, but lenders can change or withdraw product offers without notice

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 15.02.19

HOME LOAN PRODUCT OF THE MONTH

  • loans up to 80% of property value
  • 3.64% variable rate with low establishment fee of $250
  • multiple free 100% “offset” accounts available
  • additional payments allowed / free online redraw
  • available for purchase or refinance

REVERSE MORTGAGE LOANS AVAILABLE FOR SENIORS OVER 60

  • available loan amount depends on borrower’s age and value of property
  • 6.54% variable rate
  • low $495 set-up fee, no monthly or annual fee
  • funds available for normal consumer needs or access to aged care facilities
  • common purposes: debt clearance, renovations, cash reserve for future needs
  • independent legal advice is required, but independent financial advice is not required

RECORD 59% OF NEW LOAN APPROVALS THROUGH MORTGAGE BROKERS

  • in January, 59% of all new loan approvals were originated through mortgage brokers
  • brokers offer customers a choice of many possible lenders, not just Big Banks
  • brokers have access to many smaller lenders which offer far better deals for borrowers
  • brokers generally offer a free service which is very beneficial for customers
  • brokers are available 24/7 for their customers and offer ongoing service and advice

COMPREHENSIVE CREDIT REPORTING COMMENCING NOW

  • from February 2019, lenders will have access to more detailed information about borrower’s credit history
  • previous Credit Reports revealed basic details about applications lodged, defaults, court judgements etc.
  • new Credit Reports will reveal details about full repayment patterns over last 24 months for each account
  • borrowers should make all payments on time to avoid spoiling their new Credit Report records

FAST REFINANCE / DEBT CONSOLIDATION AVAILABLE

  • excellent deals with lower rates are available from smaller lenders
  • high rate loans can be refinanced, together with other debts that need to be cleared
  • “FAST Refi” loans can usually be settled in just three weeks
  • advantages: lower rate, debts cleared, significant cash flow benefits, one single loan to repay

 

Note: loans offered are available at the time of publication, but lenders change product offers without notice

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 24.09.18

PRODUCT OF THE MONTH

  • loan up to 95% of property value…..ideal for First Home Buyers who want certainty of repayments
  • 3.62% fixed for 2 years / 3.73% fixed for 3 years
  • must be coupled with a variable rate loan split / minimum $30,000 with “offset” savings account
  • $299 settlement fee, nil valuation fee, nil monthly fee, $299 annual fee
  • cash required : 5% deposit plus lender’s mortgage insurance (LMI) premium….no stamp duty up to $600,000

TIPS FOR FIRST HOME BUYERS

  • loans are available up to 95% of property value, but LMI is required on loans over 80%
  • LMI protects the lender against any loss, not the borrower
  • with lenders tightening their criteria, obtaining “pre-approval” is essential
  • set out a clear buying plan before purchasing : price limit, savings target, loan amount, possible lenders
  • engage a good conveyancer to check the contract and complete the settlement on your behalf
  • aim for: steady savings record, steady employment record, clean credit report, good documentation

A REVERSE MORTGAGE LOAN CAN FUND AN AGED CARE BOND

  • entry into an aged care facility can involve an accommodation bond of $400,000 or more
  • if a senior citizen owns a residential property, then a loan can be arranged using that property as security
  • in many cases, it is not necessary to sell the family home to fund access into an aged care facility
  • loans of up to 50% of the property value are available, depending on the age of the applicant
  • an authorised Enduring Power of Attorney can apply for the loan on behalf of the applicant
  • 6.29% variable rate, $495 establishment fee, no monthly fee, no annual fee, up to 5 year loan term

IF YOUR BANK SAYS “NO”, ALTERNATIVE LENDERS ARE AVAILABLE

  • the Royal Commission into banking is causing many lenders to tighten their loan criteria and requirements
  • non-bank lenders offer a wide range of loans to customers who no longer meet mainstream bank criteria
  • loans can often be arranged in the following circumstances:
  • late or missed payments on credit cards / imperfect Credit Report
  • mortgage arrears history on existing loan
  • unlimited debts to be consolidated
  • unreasonable bank restrictions due to age of borrower
  • self-employed applicants who don’t have perfect tax return income proof

USE A DEPOSIT BOND WHEN CASH IS NOT IMMEDIATELY AVAILABLE

  • immediate cash may not be available when a deposit needs to be paid on a property purchase
  • Deposit Bonds can be used as an alternative to cash and represent an assurance (by QBE) to pay a deposit
  • Deposit Bonds can only be used where finance has already been approved, but the 10% deposit is unavailable
  • Deposit Bonds can be used as a deposit for a purchase in the following circumstances:
  • First Home Buyers who have a Parental Guarantee home loan approval, but don’t have cash
  • investors who have good equity in other property, but don’t have cash
  • home owners who have sold a property unconditionally, but don’t have cash
  • Bonds can be SHORT term up to 6 months or LONG term up to several years for “off the plan” purchases
  • A Deposit Bond must be acceptable to the vendor in lieu of a cash deposit

 

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 24.05.18

PRODUCT OF THE MONTH

  • loan to 95% of property value….ideal for First Home Buyers purchasing established property
  • deposit requirements : 5% cash deposit, government charges and lender’s mortgage insurance (LMI) premium
  • variable 3.64% interest rate
  • $100 set up fee, nil valuation fee, nil monthly fee, nil annual fee
  • Family Pledge (parental guarantee) option available and eliminates expensive LMI premium

FAMILY PLEDGE (parental guarantee) LOAN

  • available to First Home Buyers and investors for new purchases
  • customers can borrow 100% of purchase price plus costs if income is satisfactory
  • substantial LMI premiums can be saved (e.g. premium on a 95% $570,000 loan is approximately $25,000)
  • buyers can enter the market years earlier and buy at today’s prices
  • parental guarantee can be terminated as soon as the loan reduces to 80% of new property value

LOANS FOR SPECIALISTS : UP TO 90% OF PROPERTY VALUE WITH NO LMI

  • Medical : GPs, medical specialists, dentists, optometrists, pharmacists, vets
  • Accounting : accountants, auditors, actuaries, CFOs
  • Legal : lawyers, solicitors, barristers, judges,
  • Mining : surveyors, mine surveyors, quantity surveyors, geologists
  • current practicing certificates required and must be acceptable to lender
  • substantial LMI premiums can be saved (e.g. premium on a 90% $540,000 loan is approximately $15,000)

REVERSE MORTGAGE LOANS FOR SENIORS

  • seniors who are no longer working can borrow funds for any worthwhile purpose
    • normal reverse mortgage loans for home repairs, travel, clearing debts, car purchase etc
    • aged care reverse mortgage loans for payment of accommodation bond to access aged care facilities
  • borrowers must be 60 years of age and own a suitable property as security for the loan
  • property can be primary residence, investment property or holiday home
  • available loan amount depends on property value and age of applicant

CHANGED CREDIT REPORTING REGULATIONS

  • from July 1 , Australia’s major banks are required to introduce comprehensive credit reporting
  • positive credit behaviour as well as negative credit behaviour will now be reported to Credit Reporting agencies
  • account opening dates, credit limits and up to 24 months of repayment behaviour will be supplied
  • customers of these banks should make repayments on time to avoid negative reporting and lower credit scores

 

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 13.12.17

PRODUCT OF THE MONTH

  • loan to 90% of property value including any mortgage insurance premium
  • variable “principal & interest” at 3.68%
  • nil application fee, nil monthly fee, nil annual fee, progress payment fee for construction
  • available for purchase, refinance (up to 5 debts can be consolidated) , construction

FAMILY GUARANTEE LOANS FOR FIRST HOME BUYERS

  • 95% loans are generally far more expensive for first home buyers:
    • lender’s mortgage insurance (LMI) premium on a 95% $475,000 loan is around $16,000
    • most lenders will not allow the premium to be borrowed…it is paid for out of savings
    • a few lenders will allow the LMI premium to be borrowed on top of the 95% loan , but variable rates are then up to 1% higher
  • many first home buyers have strong incomes, but have insufficient savings for 5% deposit and costs
  • immediate family members who own a property can offer their home as additional security, thereby reducing the loan ratio to below 80%….this eliminates the LMI premium and reduces the interest rate

REVERSE MORTGAGE LOANS FOR SENIOR BORROWERS

  • seniors who are no longer working can borrow funds for any worthwhile purpose
    • normal reverse mortgage loans for clearing other debts, home repairs, travel, new car etc
    • aged care reverse mortgage loans for payment of bond monies for entry into aged care
  • borrowers must be at least 60 years of age and own a suitable property as security for the loan
  • property can be primary residence, investment property or holiday home
  • available loan amount depends on property value and age of applicant…loan repayments are voluntary

COMMON MISTAKES WHEN APPLYING FOR FINANCE

  • not having a definite agreed action plan prior to purchasing and applying for finance
  • not getting pre-approval from preferred lender prior to purchase….allow 5 work days for pre-approval
  • getting pre-approval for $400,000 loan, then buying a property that requires a $500,000 loan
  • getting a pre-approval based on one set of circumstances, then buying after your circumstances change
  • buying a property without having arranged prior access to deposit monies or a deposit bond
  • changing jobs just before a loan application is to be lodged….lenders like to see stable employment
  • travelling overseas at the time of loan application or loan settlement
  • having too many debts….eliminate unnecessary debt or excessive card limits prior to loan application
  • not having correct paperwork which satisfies lender requirements and supports your loan application

 

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 20.03.17

PRODUCTS OF THE MONTH

  • two different lenders are currently offering an exceptional rate of 3.69% for owner occupier loans :
  • one is for First Home Buyers : 2 years fixed / owner occupied / established purchase only / max. 90% incl LMI
  • one is for ALL borrowers : variable rate / owner occupied / purchase or refinance / max. 80% / cash out OK

IMPORTANCE OF HAVING A PURCHASE PLAN

  • many borrowers do not have the necessary information or loan detail options well before purchasing
  • savings targets, borrowing power, VEDA credit report contents and lender requirements are all very important
  • some customers are ready to buy immediately, while others can take 12 months to prepare
  • a broker can identify key goals and key obstacles immediately, resulting in a solid purchase plan

85% OF AUSTRALIANS DO NOT KNOW THEIR CURRENT HOME LOAN INTEREST RATE

  • latest research from UBank reveals that 85% of customers do not know their home loan interest rate
  • this figure is up from 84% in 2016
  • many customers are paying around 4.50% variable rate, while an excellent rate of 3.69% is readily available
  • refinancing and consolidating high rate card/personal loan debts can result in substantial cash flow savings p.m.

CHANGES TO VICTORIAN STAMP DUTY RULES

  • stamp duty will be abolished for all First Home Buyers who purchase properties priced up to $600,000
  • reduced stamp duty will be charged on a sliding scale for FHBs purchasing between $600,000 and $750,000
  • investors purchasing “off the plan” properties will now pay full stamp duty based on contract purchase price
  • $10,000 cash First Home Owners Grant continues for the purchase of newly-built property in Melbourne
  • new stamp duty rules commence with contracts signed from 1st July 2017

INVESTMENT FINANCE AT OWNER-OCCUPIED RATES

  • a well-known lender offers “property bundling” finance all at the one rate
  • when residence and investment property are offered as joint security, the lower owner occupier rate applies
  • variable rate 3.79% for loans up to $750,000 / 3.85% for loans over $750,000
  • value of residence must be higher than value of investment property
  • “bundle” offer applies to purchase or refinance up to 90% LVR / loans can be split between properties

ELIMINATING BAD-DEBT HIGH INTEREST RATE LOANS BY REFINANCING

  • substantial cash flow benefits can be achieved by refinancing high rate loans : example:
    $400,000 home loan 4.30% variable $2025 pm
    $ 15,000 credit card 15% $ 450 pm
    $ 8,000 personal loan 8% $ 400 pm
    ————–
    $2650 pm
  • refinance total balance $423,000 at 3.69% $1945 pm (cash flow advantage $705 pm)

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 10.07.14

CURRENT LENDING NEWS

3 YEAR FIXED RATE AT 4.69%

  • borrowers must be a current member of an approved Trade Union or Super Fund….details available
  • loans up to 95% of valuation
  • normal loan eligibility conditions also apply
  • free 90 day fixed rate lock period from application date

LOANS UP TO 95% + FULL MORTGAGE INSURANCE STILL AVAILABLE

  • only one lender still offers this loan package
  • example: purchase $400,000 with a 95% $380,000 loan plus full $13,000 insurance premium = $393,000 total loan
  • other lenders will not include the full mortgage insurance premium in the total loan amount = $388,000 total loan
  • 5% genuine savings must be demonstrated

LOANS UP TO 85% WITHOUT ANY MORTGAGE INSURANCE STILL AVAILABLE

  • only one lender still offers this loan package
  • example: purchase $400,000 with an 85% $340,000 loan….save the normal insurance premium of $4,000
  • conditions apply : clean credit history, $200,000 minimum loan, satisfactory income and security property
  • available for purchase or refinance…6 months good repayment history required for refinance

CONSTRUCTION OF UP TO 4 UNITS ON ONE TITLE AT 4.84%

  • maximum loan is 80% of “on completion” single title valuation
  • 80% of anticipated rental can be used when assessing satisfactory income requirements
  • normal lender conditions apply, including retention of units for rental purpose

INVESTMENT PROPERTY LOCATION SERVICE

Many potential investment property buyers simply do not know how, what, where or when to buy. Expert advice can be obtained from investment property consultants who can assist you with these decisions. Melbourne Mortgage Finance is a full member of Professional Lenders Association Network of Australia (PLAN). Only one investment property consulting firm is recognised by PLAN. Steps are as follows:

  • we meet with you to discuss your general plans regarding an investment property purchase
  • we assess your borrowing potential taking into account your income and existing loan commitments
  • having established the approximate purchase price, we arrange for you to meet with our partner consultants
  • the first meeting is a no-obligation discussion about your purchase plans, including what and where to buy
  • from there, it is up to you to decide if you wish to proceed with recommended property choices

REFINANCE EXPENSIVE MORTGAGE, PERSONAL LOAN, CREDIT CARD AND BUSINESS DEBT AT JUST 4.87%

Excellent loans are available for borrowers who wish to eliminate high interest rate debts:

  • credit card debt up to 20%
  • personal loan debt up to 12%
  • business debts up to 10%

All these debts can be refinanced at just 4.87% with residential property as security provided the loan does not exceed 80% of property value. Lender conditions apply.

Contact Melbourne Mortgage Finance on 0437 417 042 for more details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 26.05.14

CURRENT LENDING NEWS

ALTERNATIVES FOR FIRST HOME BUYERS

With rising prices and the elimination of the $7,000 First Home Owners Grant for established homes in Victoria, there are several possible solutions available for first home buyers:

  • buy a property and lease it out, thereby taking advantage of rental income and tax benefits
  • buy a property with a sibling or partner, thereby joining forces with deposits and incomes
  • parental assistance with cash deposit or a Parental Guarantee loan where 80% of the loan is secured by the new property and 20% by the parents’ home. In this case no mortgage insurance is payable…a saving of $13,000 on the purchase of a $400,000 property

85% RESIDENTIAL LOANS WITH NO MORTGAGE INSURANCE

  • Lenders nearly always arrange Lenders Mortgage Insurance on any loan exceeding 80% of property valuation. The premium charged a normal 85% loan ($340,000 loan on a $400,000 purchase) is $4,000. A well- known lender offers loans to 85% without mortgage insurance if borrowers have:
  • genuine savings
  • steady employment history and strong incomes
  • clean credit histories

REFINANCE EXPENSIVE BUSINESS LOANS AT JUST 4.87%

Interest rates of 7-8% are often charged by lenders for commercial or business loans. These can be refinanced at just 4.87% if certain basic refinance conditions are satisfied:

  • existing loans have been well conducted and credit history is clean
  • application is in personal name and residential property in the same name is offered as security
  • loan does not exceed 80% of value and adequate income is proven

ATTRACTIVE COMMERCIAL LENDING OPTIONS AVAILABLE

  • normal commercial property loans up to 75% from 5.93% for factories, offices, warehouses
  • “lease doc” commercial loans up to 60% from 6.03% for these types of properties using lease as proof of income
  • vehicle/lease/equipment finance

POSITIVE CREDIT REPORTING HAS NOW COMMENCED

Once a loan application was lodged, lenders have previously reported only significant problems to credit reporting agencies, including defaults, court judgements and bankruptcies. From March 2014, lenders may now also report lesser repayment difficulties including late payments, arrears, and overdrawn accounts. Such reporting is optional.

LOANS TO NON-RESIDENT INVESTORS

Several lenders are prepared to lend to foreign non-resident individuals who are wishing to purchase in Australia:

  • newly built or “off the plan” residential investment properties only…established properties not permitted
  • loans up to 80% of property value, but some lenders will only lend to 70%
  • PAYG income earners preferred, but a few lenders will consider self employed
  • applicants must reside in certain nominated countries and documents must be translated and certified

ACCOMMODATION BONDS CAN NOW BE USED TO ACCESS HIGH CARE AGED FACILITIES

Until now, Accommodation Bonds (entry fees) were payable for placement of elderly citizens in low care facilities. From 1 July 2014, bonds can now be used to gain access to high care facilities as well. Several lenders will advance funds to pay the bond using the applicant’s home as security. Loans are available up to 45% of the value of the property which may be retained by the family instead of having to be sold.

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 09.04.14

CURRENT LENDING NEWS

SIMPLE RAPID LOAN REPAYMENT TECHNIQUES

A variety of simple things can be done to fully repay loans in less than half the normal 30 year term:

  • pay fortnightly instead of monthly. There are 26 fortnights each year which means 13 payments are made yearly
  • commence “principal & interest” repayments immediately and avoid “interest only” options
  • pay full salaries straight into the loan account and redraw only what you need
  • pay normal monthly living expenses by credit card, then fully clear card debt each month using loan redraw facility
  • if interest rates fall, maintain your repayments at the higher rate level
  • as salaries increase, make higher voluntary repayments each year

PORTFOLIO LOAN WITH UP TO 10 SUB-ACCOUNTS FOR DIFFERENT PURPOSES

  • one master credit limit is approved at 4.99%, with up to 10 different sub-accounts for different purposes
  • each sub-account has its own separate credit limit and operates separately
  • unused or unrequired sub-account credit limits can be transferred to other sub-accounts
  • total credit limit available up to 90% of property value

LOANS UP TO 95% AVAILABLE FOR NON-STANDARD BORROWERS

Attractive loans up to 95% are available to borrowers who do not meet normal lender criteria:

  • up to 90% from 5.30% without traditional mortgage insurance or credit scoring
  • up to 95% from 5.55% without traditional mortgage insurance or credit scoring
  • manual assessment lender’s internal risk fee charged instead of mortgage insurance

BENEFITS STILL AVAILABLE TO FIRST HOME BUYERS

  • $10,000 grant for new properties or properties to be built. Maximum price $750,000.
  • Principal Place of Residence (PPR) stamp duty exemption up to $3,100. Maximum price $550,000.
  • 40% stamp duty discount. Maximum price $600,000.

NEW LENDER OFFERING REVERSE MORTGAGES AND ACCOMMODATION BONDS

  • borrow up to 45% of property value depending on age of borrower
  • minimum age of youngest borrower is 70
  • no formal loan term, no monthly loan repayments required
  • 6.70% variable rate, establishment fee $860
  • independent legal advice required

MANY VENDORS DO NOT HAVE FINANCE APPROVAL FOR THEIR NEXT HOME

Vendors often sell their current home without establishing their eligibility for finance on the next home or without knowing details of deals available from other lenders:

  • vendors should check that they are eligible for the loan on their next property….they may not be eligible
  • pre-approval for the next required can be obtained within a few days
  • many vendors have used the current lender for years and have no knowledge of deals available from other lenders

Contact Melbourne Mortgage Finance on 0437 417 042 for further loan details

Barry LeBrocq

Melbourne Mortgage Finance
Patterson Lakes, VIC 3197
Mob 0437417042
Web www.melbournemortgagefinance.com.au

Disclaimer: The above information is intended as general information only and does not address specific personal situations. Loan products, interest rates and fees change frequently without notice. Please call Melbourne Mortgage Finance to verify details and discuss your specific needs and loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 25.02.14

REFINANCE BUSINESS DEBTS FROM 4.84% VARIABLE

Excellent loans are available from 4.84% variable up to 80% of residential property valuation for the following purposes:

  • pay out business debt currently held in personal, business or company names
  • payout personal debt
  • pay out tax debt e.g. capital gains tax
  • if secured by established property, arrange cash out up to $1m for specific purposes

Adequate security must be provided, good repayment history evident and good credit history is required.

MORTGAGE INSURANCE WAIVED ON NEW LOANS UP TO 85% OF VALUATION

Mortgage insurance premiums can be very expensive. For example, a loan of $425,000 to purchase a residential property worth $500,000 (85%) would normally involve a mortgage insurance premium of $5,500. Loans are currently available up to 85% without mortgage insurance. Purchases only.

MORTGAGE INSURANCE WAIVED ON NEW LOANS UP TO 90% OF VALUATION FOR MEDICAL PRACTITIONERS

Several lenders offer medical professional packages up to 90% of residential property value with no mortgage insurance. On a loan of $450,000 to purchase a property worth $500,000 the mortgage insurance premium would normally be around $10,000. Applicants need to be an approved type of practitioner and hold an appropriate practicing membership certificate.

NEW LEGISLATION WILL AFFECT BORROWER CREDIT REPORTS

From 12 March 2014, new legislation comes into effect which allows credit providers to report even minor credit repayment difficulties to credit reporting agencies. Until now, credit providers have reported only major difficulties such as repayment defaults, court judgements and bankruptcies. Credit providers will soon have the option of reporting lesser difficulties, such as:

  • late payments / fines
  • missed payments
  • direct debit dishonours
  • cheque dishonours
  • overdrawn accounts

Repeated adverse entries such as these will have a detrimental effect on future credit reports and credit scores.

CORRECT STRUCTURING OF INVESTMENT PROPERTY PURCHASES AND LOANS

Investors should take care to check with their Accountant prior to purchasing investment property to ensure that:

  • property is purchased in the correct name (personal, joint, company, SMSF)
  • loan applications are lodged in the correct name
  • maximum allowable tax deductions are considered
  • any legislative requirements are complied with and documentation is accurate
  • loans are correctly structured : principal & interest, interest only or a combination. Variable, fixed or a combination

LOANS TO SMSF FOR INVESTMENT PROPERTY PURCHASES AND REFINANCE FROM 5.60% VARIABLE

A variable rate of 5.60% is available for the purchase of suitable residential property or refinance of existing loans. Conditions apply, including a maximum LVR of 80%.

Contact Melbourne Mortgage Finance on 0437 417 042 for further details

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 29.11.13

FREE HOME LOAN HEALTH CHECK

It only takes 30 minutes to review your current loan situation. Many borrowers can benefit significantly from a simple refinance and/or debt consolidation, saving hundreds of dollars on their monthly cash outflow. Variable interest rates are available from 4.83% and 2 year fixed rates from 4.59%

100% HOME LOAN FINANCE IS AVAILABLE

On a $400,000 purchase, a 95% $380,000 loan is available together with a $20,000 secured credit card limit at the same home loan interest rate. Mortgage insurance is added to the loan amount. Customers must still have 5% genuine savings which can be retained for home renovations. Loans available for owner-occupier purchases only. Employment and income conditions apply.

VEDA CREDIT REPORTS

Loan applications can be adversely affected by the contents of a borrower’s credit report. If in doubt, it is advisable to obtain a copy of the report in advance and address any issues prior to lodgement of a loan application. Logical up front explanation of credit report irregularities to the lender can prevent loan declines.

95% INVESTMENT LOANS STILL AVAILABLE

Investors can still purchase with a 5% deposit and funds to cover stamp duty. Mortgage insurance is added to the base loan amount. Alternatively, investors can use the equity in their existing property and borrow 100% of the purchase price.

MORTGAGE INSURANCE PREMIUMS CAN VARY SIGNIFICANTLY

Borrowers should be aware that mortgage insurance premiums can vary dramatically in some circumstances:

  • one insurer offers greater premium discounts for first home buyers
  • a minor change to the loan to valuation ratio can affect the premium dramatically. On a $500,000 purchase with
    a $455,000 (91%) loan, the premium is $12,600. If the loan is reduced to just $450,000 (90%) the premium falls
    to $8,600.

FIXED RATE LOAN WITH 100% OFFSET, FULL REDRAW AND FREE RATE LOCK

One lender has a very flexible fixed rate loan which offers excellent features not available from any other lender:

  • 100% offset facility with no limit on payments into offset account
  • up to $20,000 additional repayments p.a. off the fixed rate loan balance
  • full redraw facility to access additional repayments off the loan balance
  • free 90 day rate lock from time of electronic loan lodgement

SOME LENDERS RELY EXCLUSIVELY ON COMPUTER-GENERATED “CREDIT SCORE” SYSTEMS

Some loan applications should not be submitted to lenders who use “credit score” assessment procedures. If there is anything adverse or unusual, applications can be declined automatically with no right of review or appeal.
For example, applications involving probation employment, short term employment, and minor credit report problems should be directed to lenders who manually assess applications and will consider logical explanations.

REFINANCING BUSINESS DEBT AT LOW RESIDENTIAL RATES

Some lenders will refinance business debt at low residential rates if loans have been well conducted and a residential property is available as security. Loans up to 80% of valuation.

Contact Melbourne Mortgage Finance on 0437417042 for further details.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 10.09.13

LENDER DEPOSIT REQUIREMENTS

Most lenders offer mortgage loans up to 95% of property value. They will require proof of genuine savings equal to 5% of the purchase price. These funds must have been held in a savings account for three full months prior to any loan application. There are some lenders, however, who have different policies:

  • several lenders will lend up to 90% where non-genuine savings (gift, tax refund, sale of asset, inheritance) are held as deposit
  • two lenders will lend up to 95% where perfect rent payment records can be demonstrated in lieu of genuine savings. Conditions apply.

All applicants wanting 90% or 95% loans must demonstrate:

  • sufficient funds to cover the full deposit and all costs associated with the purchase
  • clean credit histories
  • steady employment and adequate income to service the loan

DRAMATIC EFFECT OF ADDITIONAL REPAYMENTS

Relatively small additional repayments can have a dramatic effect in reducing the term of the loan. On an average $300,000 loan (5% pa) additional repayments will fully clear the loan as follows:

Payments $pm Term of Loan
1610 30 years
1754 25 years
1980 20 years
2372 15 years

Loans can be paid off even quicker using other additional techniques:

  • direct credit of your full salary straight into your loan account and access funds using redraw facility
  • make weekly repayments instead of monthly repayments
  • pay occasional lump sums straight off the loan balance e.g. gifts, tax refunds and proceeds from asset sales

FIXED RATES MAY HAVE BOTTOMED OUT

Lender fixed rates have been reducing steadily over the last 2 years. This week, however, CBA has announced the following changes to their fixed rate products:

  • 2 year fixed rate has reduced by 0.10%
  • 3 year fixed rate has increased by 0.05%

This may be an early indicator that market fixed rates have bottomed out.

SWITCHING YOUR CONTRACT VARIABLE RATE TO A FIXED RATE

Most loan contracts are based on a variable rate. If borrowers wish to switch to a fixed rate (full or partial), lenders will usually offer customers a variety of fixed rates options from 1 to 5 years. An amended loan contract can be issued reflecting the required fixed rate. The cost of arranging an amended contract can range from $100 to $300, depending on the lender. The cost of a contract switch will be stated in the original loan contract.

BUILDING AND PEST INSPECTIONS

Buyers can sign “Private Sale” contracts with special conditions allowing them to obtain satisfactory building and pest inspection reports. Contracts should allow 7 days for written inspection reports to be obtained. Buyers should have the option to withdraw from the contract if the inspection results are unsatisfactory in the buyer’s opinion. Vendors may require a copy of the inspection report. Auction contracts do not allow for inspection conditions to be written into the contract.

Contact Melbourne Mortgage Finance on 0437417042 for further details or to discuss your loan eligibility.

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 05.07.13

CHANGES TO FIRST HOME OWNERS GRANT (FHOG) IN VICTORIA

Effective from 01.07.2013, the rules regarding eligibility for the FHOG have changed:

  • the Grant will no longer be available for purchase of established homes
  • the Grant has been increased to $10,000, but is available only for newly-built homes or homes to be built
  • maximum property price $750,000
  • these changes apply to purchases from 01.07.2013

CHANGES TO STAMP DUTY DISCOUNTS FOR FIRST HOME BUYERS IN VICTORIA

  • Effective from 01.07.2013, the rules regarding eligibility for stamp duty discounts have also changed:
  • stamp duty discounts will increase from 30% to 40%
  • maximum property price $600,000
  • these changes apply to settlements from 01.07.2013
  • a separate Principal Place of Residence (PPR) stamp duty discount also applies to all home buyers…maximum
    purchase price $550,000

PERSONAL PROTECTION INSURANCE

Borrowers should review their personal protection insurance position when purchasing property. Melbourne Mortgage Finance can arrange a review of the following important matters with qualified experts:

  • life insurance
  • income protection insurance
  • trauma cover insurance
  • landlord protection insurance
  • legal wills and estate planning are also important matters to be reviewed

RESIDENTIAL INTEREST RATES AT A 40 YEAR LOW

  • variable rates now available from 5.13% for a normal $300,000 loan
  • 2 year fixed rates now available from 4.69%. Conditions apply.

MORTGAGE INSURERS TIGHTEN LIMIT ON INVESTMENT LOANS

Both mortgage insurers, Genworth and QBE, have placed new restrictions on investment property loans. The maximum loan now available is 95% of property value including the mortgage insurance premium. The previous limit was 97% of property value including the mortgage insurance premium.

Borrowers can still borrow 100% of investment property value plus costs without mortgage insurance:

  • using a parental guarantee property loan
  • offering the personal residence as additional security if sufficient equity exists in that property

Contact Melbourne Mortgage Finance for further details or to establish your loan eligibility
Mob 0437 417 042

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 02.05.13

PAYMENT OF INTEREST IN ADVANCE ON INVESTMENT LOANS

Prior to June 30, most lenders allow investors to pay 12 months interest in advance on their fixed rate investment property loan. Benefits include:

  • certainty with budgeting
  • interest rate discount
  • tax advantage of claiming next year’s interest in the current financial year
  • independent taxation advice should be received from your accountant

USE YOUR SUPERANNUATION FUNDS AS A DEPOSIT FOR A PROPERTY PURCHASE

Borrowers can now purchase residential property using their superannuation funds.
Main features:

  • borrow up to 95% of valuation (80% from a mainstream lender and 15% using your own super funds)
  • 5% deposit and costs can come from any source….your super is regarded as a genuine savings contribution
  • no expensive mortgage insurance premium is payable…a saving of approximately $10,000
  • owner occupied or investment property
  • established property or construction
  • first home buyers or investors
  • no need to set up specific Self Managed Super Fund (SMSF) structures to buy property using your super
  • your super fund must be an eligible fund acceptable to the lender and independent financial advice is required

“EASY DOC” LOANS TO PURCHASE COMMERCIAL PROPERTY

Commercial property loans are available where ability to service the loan is based solely on the strength of the lease agreement and does not require tax returns, BAS statements, trading statements or Accountant’s letter.

  • up to 65% of valuation
  • up to 25 year term which reduces monthly repayments
  • no annual reviews
  • purchase or refinance
  • lease agreement, security property and application details must be acceptable to the lender

ACCOMMODATION BOND LOANS FOR AGED CARE

Families often need to arrange funds for an elderly parent to gain access to an aged care facility without selling the family home. Specifically tailored accommodation bond loans are available as follows:

  • up to 50% of property valuation depending on location
  • up to $400,000 depending on the value of the residential property
  • minimum age 70
  • security property must be the borrower’s principal place of residence or an acceptable investment property
  • the property can be retained by the family and can be rented out to help pay interest charges on the loan
  • security arrangements must be acceptable to the lender and independent financial advice should be obtained

Contact Melbourne Mortgage Finance for further details and to discuss your specific needs and lender eligibility requirements.

Barry LeBrocq
Melbourne Mortgage Finance
Mob 0437417042

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 09.04.13

SPECIALIST LENDERS FOR “NON-CONFORMING”  BORROWERS

A substantial percentage of borrowers do not meet normal mainstream lender credit policy requirements:

  • inadequate personal savings and reliance on a gift
  • short term PAYG employment or contract employment
  • borrowers needing 100% of the purchase price relying on a parental guarantee
  • “low doc” loans with Accountant’s letter or trading account statements for proof of income
  • impaired credit history with defaults, paid or unpaid
  • excessive credit enquiries or consolidation of a large number of existing debts
  • tax debts
  • previous bankrupts now earning good PAYG income
  • unusual sources of income: insurance payments, probation income, board, pensions
  • older borrowers who can show a clear debt repayment strategy
  • security properties up to 150 acres
  • refinancing of business debt at residential home loan rates
  • borrowers who need the First Home Owner’s Grant for land settlement rather than at slab stage

Specialist non-bank lenders and some smaller banks will often consider applications from borrowers in the above circumstances. Interest rates will generally be higher, but loans can often be refinanced to a normal lender in 12 months time if loan repayment history is good.

TIME TO LOCK- IN A FIXED RATE?

Numerous lenders have recently communicated that now might be a good time to take all or part of a property loan on a fixed rate. Fixed rates are currently available from as low as 4.79% and are generally well below variable rates. Borrowers must be aware that conditions and restrictions apply to fixed rate loans, and all lenders require a Fixed Rate Acknowledgement form to be signed prior to settlement. Selecting a fixed rate is optional and borrowers may also opt to pay a fixed rate “lock-in” fee to protect themselves against an increase in the fixed rate prior to loan settlement.

REGULATORY CHANGES TO REVERSE MORTGAGE LOANS

ASIC has announced new requirements for reverse mortgages. Effective from 01.05.2013 :

  • borrowers must receive a lender’s Reverse Mortgage Information statement
  • borrowers must receive a Tenancy Protection Warning statement
  • borrowers must receive a copy of their remaining equity projection calculations  using ASIC’s new calculator
  • borrowers must receive and sign a lender’s Reverse Mortgage Loan Disclosure statement
  • lenders must receive copies of all the above documents signed by the borrower
  • lenders application forms will ask specific questions about inheritance intentions and possible aged care costs

95% NON-GENUINE SAVINGS HOME LOAN PRODUCT

Until now, lenders have required borrowers to show evidence of 5% genuine deposit savings. However, a new loan is now available allowing borrowers to obtain a 95% loan with a gifted or borrowed  deposit. Conditions:

  • clear credit history
  • a minimum of 12 months employment in current job or 24 months in current  industry for all borrowers
  • evidence of source of deposit must be supplied
  • purchase of established residential property only
  • repayments on a borrowed deposit must be included in repayment eligibility calculation worksheet
  • maximum loan is 95% of valuation and includes lender mortgage insurance risk fee

Barry LeBrocq
Melbourne Mortgage Finance
Patterson Lakes, VIC
Mob 0437417042

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
  • reliable service, communication and follow-up. See “Testimonials
  • 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