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
