Credit Provider - Bank Lite Doc 80% Home Loan

Top 4 Bank with Australia wide Branch network.

DOES YOUR LENDER/BROKER PROVIDE YOU WITH THIS INFORMATION?

Our Fact Sheets provide in-depth information that is generally not available from any other source (INCLUDING the Lender). They have been designed so that prospective borrowers have access to ALL of the information they need to make an informed decision regarding the suitability of the loan to meet their requirements. To properly evaluate a loan, we believe that full disclosure of the following information is critical to the decision making process:
   - What are the loan features?
   - How much will it cost to set up the loan?
   - What are the interest rate options and ongoing fees?
   - How much will it cost to discharge the loan?
   - What documents will I need to supply to apply for this loan?

DOES YOUR LENDER/BROKER PROVIDE YOU WITH THIS INFORMATION?

Product Highlights

FREE SERVICE - Rates, Costs and Fees are EXACTLY the same as if you had dealt with the bank direct.

NO INCOME proof required (Payslips, Tax Returns etc).

Suitable for any residential loan (purchase or refinance). Commercial property loans excluded.

ABN only required for 1 year (no need to be GST registered if earnings less than $75,000 pa).

If declaring income > $75,000, ABN MUST be GST registered for at least 12 months.

Co-borrowers can be PAYG but there must be at least one self employed borrower.

Not postcode sensitive ... will do loans anywhere in Australia.

Islands OK to 80% LVR

The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s). For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total. The LVR is 70% in this case ($350,000 divided by $500,000 times 100).

(eg: Moreton, Stradbroke, Fraser, Hamilton, Russell, Macleay etc).

Will look at properties up to 50 ha (123 acres).

Purchase / Construction of up to 2 Units in the one complex allowed (INDIVIDUALS only).

Unlimited loan amounts up to 60% LVR

Maximum loan amount of $2,500,000 from 60.01% to 80% LVR

NO MORTGAGE INSURANCE ( LMI

Lenders Mortgage Insurance (or LMI) does not protect the borrower in any shape or form. It is an insurance policy taken out by the Lender in case you are late with your payments or default on the loan. If this occurs, then the Mortgage Insurer will pay the lender the shortfall and will then recover this amount from you. Mortgage insurance is normally payable by borrowers on all loans with a Loan to Value ratio LVR

The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s). For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total. The LVR is 70% in this case ($350,000 divided by $500,000 times 100).

exceeding 60% on Low Doc Loans. Mortgage Insurance is a once-off cost and can often be added to the loan. The premimum varies from Lender to Lender and will also depend on the amount being borrowed and the LVR

The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s). For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total. The LVR is 70% in this case ($350,000 divided by $500,000 times 100).

.

) on loans to 60% LVR

Can add LMI

Lenders Mortgage Insurance (or LMI) does not protect the borrower in any shape or form. It is an insurance policy taken out by the Lender in case you are late with your payments or default on the loan. If this occurs, then the Mortgage Insurer will pay the lender the shortfall and will then recover this amount from you. Mortgage insurance is normally payable by borrowers on all loans with a Loan to Value ratio LVR

exceeding 60% on Low Doc Loans. Mortgage Insurance is a once-off cost and can often be added to the loan. The premimum varies from Lender to Lender and will also depend on the amount being borrowed and the LVR

premium to loan where LVR

exceeds 60% (to Maximum 82%).

Flexible loan structuring options (ie mix of fixed, variable or line of credit).

Nationwide Branch network.

No Interest Rate loadings for Low Doc Loans.

Land loans allowed (must build within 5 years).

Loan is portable, but simultaneous settlement required.

Companies and Trusts allowed (INVESTMENT properties ONLY - Land/Construction excluded).

First Home Owners are allowed.

Minimal documentation requirements.

Things you need to know

Not suitable for Commercial Property Loans.

If trading under a Business Name, the Business Name must be registered for a minimum 12 months.

For Rural properties, cannot rely on income from property to service the loan.

For Construction loans, plans and building approvals need to be submitted at time of application.

Bank can be sensitive with respect to the loan term if Borrowers are aged over 50 (call to discuss).

Not suitable for applicants with Bad Credit

Bad Credit refers to entries that have been recorded on your Credit Report because you have not paid a bill following repeated requests from the Credit Provider (commonly called a Default), or where a credit related matter has been formally placed before the Courts (Judgements and Court Writs). Defaults often relate to unpaid Telco bills (telephones, mobile phones etc) as well as Utility bills (Electricity, Gas etc). Once an entry has been recorded on your Credit Report, it can stay there for up to 7 years (regardless of whether you pay the outstanding amount or not). Generally speaking, it is difficult to obtain Credit at favourable Terms if you have entries of this nature on your Credit Report (particularly if the account has not been paid). Note that being late with a bill payment or having an overdue account does not constitute Bad Credit. It is only a problem if it has been formally recorded on your Credit Report (eg: placed with a debt collection agency).

As part of the Loans process, we usually check your Credit Report before we complete formal paperwork. We will then discuss the results with you and advise you of your options if there are any matters of concern.

What is a Credit Report

When you make a Credit Application with a Credit Provider (eg: a Bank, a Telephone company or for a Credit Card), the details of your enquiry are logged in a Central Database (accessible, by Subscription only, over the Internet). If you do not pay an outstanding account, then the Credit Provider can record this in the same Database (commonly called a Default). Most Credit Providers will check your Credit Report before granting Credit. If there are adverse entries (Defaults, Judgements, Writs etc), then your application for Credit MAY be declined (without reason).

Note that you have to give express permission to the Credit Provider before they can access your information. This is usually done by signing a Privacy Authority included with the Credit Application Form. You are not required to grant permission to the Lender to do this, but your Credit Application is unlikely to be approved without it.

The company that provides this service in Australia is Veda Advantage. They are required (by law) to provide you with a copy of your Credit Report on request.

. Minor PAID Defaults considered with written explanation.

Fees and Charges

Establishment Fees: $600 for up to 2 loans, $300 per additional loan plus Settlement fee of $150.

Refer to table below for early repayment fees.

Mortgage Insurance will apply if LVR

exceeds 60%:
- Click Here for LMI Calculator (multiply expected loan amount by percentage to arrive at Premium).
- State based Stamp Duty also applies (refer LMI Calculator)

$50 per Construction progress draw-down (if applicable).

$750 Fixed Rate Lock Fee to guarantee published Fixed Rate AT time of APPLICATION:
      - Available for 1 year to 5 year fixed rate loans only.
      - Payable per fixed loan split.
      - Valid for 90 days only (from date your Account is charged the Rate Lock Fee).

Other fees and charges may apply at the discretion of the Bank. For example:
      - Where there is more than one Security property.
      - Where Guarantors are involved.
      - Where Companies/Trusts are involved.

Government stamp duties and other government charges may apply.

Paperwork you will need to provide to apply for this Loan

ALWAYS REQUIRED

100 point ID for each applicant (usually a Passport or Birth Certificate PLUS a Drivers Licence).

The latest Rates Notices on any properties that you own.

The most recent statements for all current liabilities (including other Home Loans and Car/Personal Loans). If unable to obtain a statement, a copy of the original Loan Contract together with bank statements showing payment being made (identifiable) will suffice.

If Credit Card limit on any one card exceeds $10,000 or $30,000 in total, then we require the latest statement for ALL Credit Cards. In all other cases, this is not required.

If co-borrowers are PAYG, then we require the two most recent payslips OR the most recent PAYG Payment Summary as well as a letter from the employer.

If reliant on rental income, current lease agreement OR recent managing agent statement OR letter from real estate agent is required.

If LVR exceeds 60% - Business Activity Statements (BAS) for the past 12 months, as submitted to Australian Taxation Office. If ABN not GST registered, Bank Statements (all Accounts) will be required for last 6 months (as a minimum).

NOTES regarding BAS Statements: Online BAS lodgements - If BAS lodged online you must provide a Statement of Receipt by the ATO for each BAS Return lodged over the last 12 months. Manual BAS lodgements - The ATO verifies the manual submission and receipt of BAS through the ATO Running Balance Account Statement. Customers must obtain this statement from the ATO and provide it at Loan Application time.
SOMETIMES REQUIRED

In cases where the Bank is not the main financial institution to the customers and the application requires a refinance or the application involves "cash out", the Bank may request six months statements on the applicant's business/primary account. This will be particularly so where income fails the reasonableness test which is, as a 'rule of thumb' an applicant's Low Doc declaration should represent not more than 40% of the gross income stated on their BAS statements.
IF YOU ARE PURCHASING

Signed and dated Copy of the Contract of Sale.

Evidence that you have sufficient funds to cover the Deposit and Purchasing Costs (eg: Bank Statement).
IF YOU ARE REFINANCING

Latest Rates Notice(s) on the Property(s) being offered as Security.

Last SIX months Home Loan Statements on all Home Loans being refinanced. Latest statement CANNOT be older than 1 month. Some GENUINE bank statements are required (ie: cannot provide all statements as Internet printouts, does not matter how old genuine statements are).

Last ONE months Statements for all Credit Cards, Personal/Car loans being refinanced.
IF YOU ARE BUILDING

To enable the loan to be APPROVED - Copy of the Quote, Plans and Builders Specifications.

BEFORE Progress Payments can be made, we will need:
      1. Copy of the signed and dated Fixed Price Building Contract from a Registered Builder.
      2. Copy of Builders Registration.
      3. Copy of STAMPED Council Approved Plans REDUCED to A4 size.
      4. Construction Certificate (NSW) or Building Permit (VIC).
      5. Builders Insurance (Certificate of Currency).
      6. Builders Indemnity / Public Risk Insurance (minimum of $5m).
      7. Slab Survey for NSW properties required prior to first payment drawdown.

Loan Stucturing Information and Interest Rates

You can have as many 'splits' (or loans) as you like against as many Security properties as you like. A mixture between Fixed, Variable and Line of Credit is allowed on a Principal & Interest or Interest Only basis (see below for details).

Standard Variable
Rate Loan Discounted Variable
Rate Loan Line of Credit Fixed Rates

Effective Dates 5th March 2010 5th March 2010 5th March 2010 5th March 2010

Total loan amount:
$50,000 Plus 6.86% (CR 6.99%) 6.35% (CR 6.48%) 6.96% 6.64% - 1 Yr
         (CR 6.74%)
7.34% - 2 Yrs
         (CR 6.89%)
7.74% - 3 Yrs
         (CR 7.07%)
7.94% - 4 Yrs
         (CR 7.24%)
8.04% - 5 yrs
         (CR 7.39%)
8.29% - 7 yrs
         (CR 7.73%)
8.39% - 10 yrs
         (CR 8.07%)
8.44% - 15 yrs
         (CR 8.40%)
At end of Fixed Rate period, reverts to standard variable rate

Ongoing Fees $8 per month $8 per month $12 per month $8 per month

Early Repayment Fees $700 if loan discharged in 1st 4 years plus $500 Administration Fee (always payable) $700 if loan discharged in 1st 4 years plus $500 Administration Fee (always payable) $350 $700 if loan discharged in 1st 4 years plus $500 Administration Fee (always payable). Break costs may apply if loan is discharged during Fixed Rate period

Borrowing Entity Individuals, Sole Traders, Partnerships or Companies (INVESTMENT ONLY) and Discretionary Family Trusts (INVESTMENT ONLY) Individuals, Sole Traders, Partnerships or Companies (INVESTMENT ONLY) and Discretionary Family Trusts (INVESTMENT ONLY) Individuals, Sole Traders, Partnerships or Companies (INVESTMENT ONLY) and Discretionary Family Trusts (INVESTMENT ONLY) Individuals, Sole Traders, Partnerships or Companies (INVESTMENT ONLY) and Discretionary Family Trusts (INVESTMENT ONLY)

Payment Frequency Weekly, Fortnightly or Monthly (Interest Only is ALWAYS Monthly) Weekly, Fortnightly or Monthly (Interest Only is ALWAYS Monthly) No regular payment frequency required, however must make minimum monthly payment based on drawn down balance Weekly, Fortnightly or Monthly (Interest Only is ALWAYS Monthly)

Interest Only Option Up to 10yrs - Owner Occupied, Up to 15yrs - Investment Up to 10yrs - Owner Occupied, Up to 15yrs - Investment Always In line with Fixed Rate Term

Offset Account 100% Offset available (setup Post Settlement) Not available Not applicable for a Line of Credit Partial offset account available

Construction option Yes - Individuals ONLY (no Companies or Trusts) Yes - Individuals ONLY (no Companies or Trusts) No No

Funds Access See Redraw below See Redraw below Cheque Book, Over the Counter, Internet, Telephone, ATM and EFTPOS Not available during fixed rate period

Redraw Yes - $500 minimum Internet, Telephone, ATM and EFTPOS - $1000 Branch Yes - $500 minimum Internet, Telephone, ATM and EFTPOS - $2000 Branch, $50 fee Not Applicable (access to funds always available) Not available during fixed rate period

Extra Payments Unlimited - however regular repayment always based on fully approved loan amount (unless facility is Interest Only) Unlimited - however regular repayment always based on fully approved loan amount (unless facility is Interest Only) Unlimited - repayments based on actual loan balance Maximum of $10,000 pa (NON cumulative) - repayments always based on fully approved loan amount (unless facility is Interest Only)

The Comparison Rate is calculated on a loan amount of $300,000 over a term of 30 years. Fees and charges may be payable. A Comparison Rate schedule is available at our Miami offices. WARNING: This Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.