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Hello,
The last few months have been very eventful in the lending market. As one of our articles discusses, lenders have tightened their credit policies across the board. 100% or No Deposit Home Loans are now no longer available. In this current environment lenders considered this type of loan to be too risky.
Most of the major lenders are now only lending up to 90% of the value of a property and almost all of the lenders require at least 5% of the purchase price to be genuinely saved over a period of at least 3 months. These 2 policies mean that a lot of first home buyers who could have got into the market previously will now struggle to get finance unless they have some savings.
There are still some lenders lending up to 97% of the purchase price (including the mortgage insurance premium). The lenders on our panel that still offer this product will generally require 5% genuine savings. There is one lender though that will consider 97% loan applications without genuine savings but only up to 18th May we have been informed. So if you require this type of loan you will need to act quickly.
It is also still possible to borrow 100% or more of the purchase price if you have a friend or family member who has sufficient equity in their property and is happy to act as your guarantor.
If you have any questions about these products or policies please dont hesitate to call me.
Enjoy this newsletter and feel free to pass it on to family and friends.
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PO Box 319
Toongabbie NSW 2146| Tel: | 1300 66 12 11 | | Mob: | 0404 037 663 | | Fax: | 02 8214 6592 |
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Economy Scores Top Marks
It's not just swimming and cricket that Australia does well at, it seems our economy scores top marks against the rest of the world.
According to the Reserve Bank, the Australian economy is in "better shape than most" and "will remain one of the better performing economies in the developed world".
Read More >>
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Lending Criteria Tightened
Last year you could take out a home loan without so much as a deposit. This year you need money in the bank and a good credit history at your disposal.
The financial crisis has seen mortgages with Loan-to-Valuation Ratios (LVRs) of 100 per cent withdrawn by banks and building societies across the developed world, with Australia more recently following suit.
Read More >>
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Housing Market Grows
If there's a good news story to come out of the gloom of a recession, it's that Australia's property market may no longer be under the hammer.
Record low interest rates and the First Home buyers boost have done their job in re-energising the market, with strong signs that people are once again confident about buying property.
Read More >>
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Tax Time
With June 30 fast approaching, it pays to start getting your paperwork in order for tax time.
You might dread the prospect of sorting through old bank statements and boxes full of receipts but if you can achieve a decent tax refund then it is time well spent!
Read More >>
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Mortgage & Finance Association of Australia
Mortgage World Australia is a full member of the MFAA. As a member we must adhere to an Industry Code of Practice, which requires professionalism, ethical behaviour, transparency and a commitment to you, the borrower.
This helps to ensure that your best interests are at heart whenever we make a finance recommendation.
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News & Specials
- Bankwest have brought back their Rate Tracker Home Loan which offers a 0.90% p.a. discount off the average standard variable rate of the big 4 banks for the first 3 years of the loan. There is also no early repayment penalty on this loan which means you can refinance after 3 years without being charged a hefty exit fees.
- As of Monday 13th July RAMS are offering a FlexiFix product where up to a maximum of 50% of the loan amount can be fixed for 2 years at 4.99% p.a. rolling over to the Smartway Variable rate after 2 years. Variable portion can only be taken as a Smartway Variable loan which currently offers an interest rate of 5.49% p.a.
- St.George are offering a 0.15% p.a. discount off their fixed rate home loans if taken under their Advantage Package. Westpac are offering a 0.20% p.a. discount off their fixed rates under their Premier Advantage Package.
- Although most lenders are no longer offering cheap low doc interest rates RAMS are still very competitive in this market.
- Go into the draw to win $10,000 in Cold Hard Cash by either booking an appointment with us, using our services to take out a home loan or by referring a friend. Competition ends on 31st July 2009.
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Disclaimer: This newsletter is intended to provide general news and information only. Readers should rely on their own enquiries before making any decisions regarding their own interests. Please do not rely on any part of this newsletter as a substitute for specific legal or financial advice. All material is copyright 2009.
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