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EMail Newsletter
November 2006
The
Wisdom of a Four Year
Old
 Rather
than open the newsletter with talk of Interest Rates I thought I would
start with some light-hearted wisdom from my daughter.
A few months ago we were driving along on the car. I was interrupted by
my daughter calling from the back seat:
“Daddy”
“Yes Julia”
“I know why cars have red lights at the back”
“Why is that Julia?”
“Because if they had green lights they would all crash into each other.”
If only life was always that simple.
What
is your Current Lender Offering You?
 We
all heard about the rate rise this week. But there is some good news.
While all the major banks are offering 0.7% discount off their standard
variable rate, we are offering up to 0.93%
discount
For a strictly limited time we are
offering a massive 0.83% off the major
banks standard variable rate.
And after the 1st Year the rate actually
goes DOWN
You get a further 0.1% Discount after the
first 12 months. That’s 0.93% discount,
and you keep that discount for the life of the loan. Most
introductory rates go up after 12 months. Ours actually goes down!
One point of Contact for the life of your
loan
Most brokers offer you personalised
service “right through to settlement”. We are offering you one single
point of contact “for the life of your loan”. As long as you have
a Mortgage Bureau loan we are your single point of contact, seven days a
week.
Want a great Low Doc Rate? Just add 0.1%
For Low Doc loans we offer 0.73% Discount
in the first year followed by 0.83% for the life of the loan. Now you
can get a Low Doc loan at a better rate than the major lenders Full Doc
loans.
Offer Ends Friday 22nd
December 2006.
Call me today on 02 9629 1888 and see how
much I can save you on your Home Loan.
Note: Rates are subject to normal Reserve
Bank rate movements. Conditions and Normal lending criteria apply. For
loan applications received before 22nd December 2006 and settling before
18 Feb 07.
Low
Doc & No Doc Loans
 I’ve
sometimes incorrectly assumed that people are familiar with the terms
“Loc Doc” and "No Doc". So for those who don’t know here is a
quick rundown.
Low Doc literally means Low Documentation. Low Doc loans are usually
only available to Self Employed applicants. Instead of supplying two
years financial statements and tax returns (like Full Doc loans), the
applicant simply signs a declaration stating their income.
Clients generally choose a Low Doc loan when their tax returns are not a
true reflection of the income they have available to service a loan.
Low Doc Interest Rates
These days Full Doc and Low Doc interest rates are virtually the same.
The rates on Low Doc loans reduced considerably when Mortgage Insurers
started insuring Low Doc loans, thereby protecting the lenders from loss
if they had to sell the property.
With Full Doc loans you pay mortgage insurance if you borrow above 80%
of the property value, while with Low Doc you pay mortgage insurance
above 60%. The mortgage insurance is around $2,000 to $4,000 for average
loan sizes.
Will Full Doc loans you can borrow up to 100% or more of the purchase
price, while Low Doc loans are generally limited to 80%. (95% Low Doc
loans are available at a higher interest rate).
No Doc Loans
A No Doc loan is similar to a Low Doc loan except for the declaration
that needs to be signed. With a Low Doc loan you state your income and
sign a declaration that the stated income is correct. With No Doc loans
you don’t state an income. You just need to sign a declaration stating
that you can manage the loan “without undue hardship”.
If you would like more information on Low Doc or No Doc loans, please
contact me on 02 9629 1888
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