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  • Barry Le Brocq

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

NEW FIRST HOME LOAN DEPOSIT SCHEME (FHLDS)  

  • 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


IMPROVING YOUR BORROWING POWER

  • 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


UNLIMITED NUMBER OF DEBTS CAN BE CONSOLIDATED BY REFINANCING

  • 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

#neighborhood #costs #borrowingpower #refinancing

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