Credit Provider - Bank 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.

An ABN for 2 years IS required in all cases (GST registration for minimum of 12 months is also a requirement).
Copy of ORIGINALLY issued ABN Registration Certificate MUST be provided - a printout from the ABR Web Site
will not be accepted.

Primary borrower must be self employed for minimum of 2 years.

Co-borrowers can be PAYG but self employed borrower must earn majority of income.

Maximum loan amount of $1,000,000 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).

(selected Postcodes).

Maximum loan amount of $1,500,000 to 60% LVR

(selected Postcodes - Vic and NSW only).

Maximum exposure per Borrower: $2,500,000 (max individual loan $1m).

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

CANNOT 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% (maximum lend is 80% including LMI).

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

Nationwide Branch network.

Discounted, competitive rates and fees (EXACTLY the same as Full Doc Loans).

Can build under a fixed rate loan (no owner builders). Conditions apply.

Land loans allowed (no requirement to Build).

Click Here for Category postcode listings.

Loan is portable (simultaneous settlement required where LMI

is involved).

First Home Owners are allowed.

Home and Contents Insurance discounts are available.

Minimal documentation requirements.

Pre-Approvals valid for 3 months.

Cash out is available but restrictions apply as follows:
      - 1) Cash out is limited to $10,000 UNLESS there is a Purchase involved with the transaction.
      - 2) Bank will require details of what the Cash Out is to be used for.
      - 3) Costs of renovations where the Bank controls payment to the Builder are excluded for Cash Out purposes.
      - 4) Refinancing of other Insitutions Debts are not counted as "cash out" (Statements are required and Bank
            will control disbursement of funds at Settlement).

For Purchases where the LVR exceeds 60%, 5% Genuine Savings is required. This can be either:
      - 1) Proceeds from recent sale of property you previously owned.
      - 2) 5% Equity in existing property (held for at least 3 months).
      - 3) Demonstrated savings history in Bank over 3 months.
      - 4) Shares / Other liquid funds held for at least 6 months.
      - 5) 12 months rental payment history.
      - First Home Owners MUST demonstrate Savings from Items 3 and 4 ONLY.

12 Months BAS Returns are now required for ALL Low Doc Loans, however, the Bank will look at each situation when determining an acceptable income figure based on the BAS income and the nature of the profession of the Applicant (most other Banks will only take a flat 40% of BAS Income as a fair and reasonable declared income). Note that the supplied BAS Returns MUST be as lodged with the ATO. Latest BAS Statement cannot be older than 4 months. Acceptable proof includes: Completed ATO BAS templates, Completed BAS created via Accountant software, BAS Printouts/Summaries from the Tax Agent Portal or the Tax Office.

Things you need to know

Not suitable for Commercial Property Loans.

Can be postcode sensitive ... call if property not located in major city/regional town.

Maximum land size of 8ha (21.6 acres).

Companies and Trusts as Borrowers are NOT allowed.

Initial loan must be at least $150,000.

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

Generally a maximum of 3 Security properties per application when LVR exceeds 60%.

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.

Favourable purchases NOT allowed.

Fees and Charges

Lender setup costs of $355 per split/loan and one valuation.

Annual Package Fee of $395.

Mortgage Insurance will apply (if LVR

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

$200 TOTAL Construction progress valuation fee (if applicable).

Fixed Rate Lock Fee of 0.15% of the loan amount to guarantee published Fixed Rate AT LOAN APPLICATION:
      - Must be paid prior to Settlement (cannot come from loan proceeds).
      - Payable per fixed loan split.
      - Valid for 90 days only (non refundable).

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.

Early Repayment Fees:
      - $900 if loan is fully or partially discharged in first 4 years.
      - PLUS $250 Admin Fee, regardless of time of discharge.
      - Break Costs may apply if a Fixed Loan is repaid during the Fixed Term.

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).

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.

Last 12 Months BAS Returns. Note that the supplied BAS Returns MUST be as lodged with the ATO. ATO Portal printouts or BAS Summaries will not be accepted. Latest BAS Statement cannot be older than 3 months.

A copy of the Australian Business Register certificate generated at the time of ABN registration OR the letter issued by the Australian Business Register that confirms the ABN registration and accompanies the certificate.
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).

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.

Maximum of 4 Debts can be refinanced (including Home Loan).
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

	Line of Credit style Account (Variable)	Fixed Rates
Effective Dates	5th March 2010	5th March 2010
Total loan amount: $150,001 to $249,999	6.71% (CR Unascertainable)	6.59% - 1 Yr (CR 7.00%) 7.24% - 2 Yrs (CR 7.52%) 7.59% - 3 Yrs (CR 7.85%) 7.84% - 4 Yrs (CR 8.08%) 7.94% - 5 yrs (CR 8.16%)
Total loan amount: $250,000 to $499,999	6.51% (CR Unascertainable)	As above
Total loan amount: $500,000 plus	6.31% (CR Unascertainable)	As above
Borrowing Entity	Individuals only	Individuals only
Payment Frequency	No regular payment frequency required… you do NOT need to make any payments PROVIDED the balance of your Line of Credit does not EXCEED the approved limit (ie: Capitalisation of Interest is allowed). Max loan period is 10 years.	Weekly, Fortnightly or Monthly
Interest Only Option	Up to 10 yrs - Owner Occupied and Investment	In line with Fixed Rate Term
Offset Account	Built-in (default) - a separate Offset Account is also available if required	Not available
Construction option	Yes	Yes, subject to: 12 month maximum progressive drawdown period applies to all loans (the loan must be fully drawn within 12 months) For loans where fixed rate lock in is selected, the first drawdown must occur within 180 days of the product select date The first loan drawing must be within 180 days of the offer date
Funds Access	Access to funds can be arranged via Debit Card, Cheque Book, EFTPOS, ATM, Internet, Phone, Over the Counter and Direct Debit.	Not available during fixed rate period
Redraw	Yes - no minimum Internet, Telephone, ATM and EFTPOS - $1000 Branch, a $10 fee applies to investment loans	Not available during fixed rate term
Extra Payments	Unlimited - repayments based on actual loan balance	Yes - up to maximum of $25,000 during fixed rate term

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.