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  • Barry Le Brocq

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

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