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  • Barry Le Brocq

MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 01.10.20

Updated: Oct 2


CONSOLIDATING DEBTS WITH HIGH RATES AND HIGH REPAYMENTS

  • borrowers often struggle with high monthly repayments on personal loans at 10% and credit card debt at 20%

  • this debt can be refinanced into a housing loan at rates from 2.19%

  • the refinanced debt can be isolated into a separate loan split and paid off over a much shorter loan term

UNLIMITED NUMBER OF DEBTS CAN BE CONSOLIDATED AND REFINANCED  

  • one lender allows an unlimited number of debts to be consolidated into one single refinance Home Loan

  • good repayment history over last 3 months is required on each loan being paid out

  • loan cannot exceed 90% of property value

  • one of my customers consolidated 8 separate debts and her monthly repayments fell from $3,400 to $1,700

REVERSE MORTGAGE LOANS FOR SENIORS

  • finance is available to customers over 60 who have suitable residential property as loan security

  • funds can be used for any worthwhile consumer purpose, but not for business

  • formal loan repayments are not required but can be made voluntarily

  • average age for applicants is 70 and independent legal advice is required when signing loan documents

PARENTAL GUARANTEE LOANS UP TO 105% OF PROPERTY VALUE

  • parents can use their property to help children purchase

  • loans can be provided to cover full purchase price plus stamp duty (payable if purchase price exceeds $600,000)

  • 80% of the loan is secured by the purchased property

  • 25% of the loan is secured by the parents’ property

  • deposit for the purchase might be covered by a cash gift or a deposit guarantee

  • this loan type may be suitable for borrowers who have strong incomes and solid employment


OBTAIN CREDIT REPORT/SCORE PRIOR TO LOAN APPLICATION

  • it is essential to obtain a personal Credit Report prior to any loan application

  • many lenders have automatic credit score assessment systems…it is essential to know what the report shows

  • a personal report can be obtained at  https://www.equifax.com.au/personal/products/my-credit-file

  • matters appearing in the credit report will affect selection of lender and likelihood of loan approval


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

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