MELBOURNE MORTGAGE FINANCE LENDING UPDATE – 08.12.20

PRODUCT OF THE MONTH

owner-occupier Home Loan with a fully fixed rate OR with part fixed rate / part variable rate
example : 80% of loan can be fixed at 1.97% / 20% variable
variable portion has redraw facility and can be connected to up to 10 separate offset savings accounts
offset savings accounts can be in different names (individual or joint names)
available for purchase or refinance
maximum loan up to 90%+LMI
$349 annual package fee

Federal Government initiative aimed at helping First Home Buyers to build new homes
loans available up to 95% of valuation with no Lenders Mortgage Insurance (LMI) payable
Federal Government will guarantee up to 15% of the loan (this risk is normally covered by LMI)
the scheme is exclusively for new home purchases, not for established homes
minimum 5% genuine savings required and borrowers must satisfy normal lender eligibility criteria
this scheme can be combined with other government incentive schemes:

. $25,000 Federal Government HomeBuilder grant

. State First Home Owner grants

. State stamp duty concessions

minimise unnecessary living expenses and maximise genuine savings
maintain steady employment and keep good evidence of income
if self-employed, do not minimise your taxable income in order to reduce tax
if possible, eliminate other existing debt completely
reduce credit card limits to a minimum (banks work on limits, not on card balances)
select a lender whose borrowing power calculator is more generous

one lender allows an unlimited number of consumer debts to be consolidated into one refinance 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