Credit Provider - Bank Low Doc 80% Home Loan

Major 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 required for 2 years (no need to be GST registered if earnings less than $75,000 pa).

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

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

Maximum loan amount of $1,000,000 60.01% to 80% LVR

Land and Rural Zoned properties acceptable to max 60% 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

Flexible loan structuring options (ie mix of fixed and variable).

Nationwide Branch network.

Loan is portable, but simultaneous settlement required.

First Home Owners are allowed.

Companies, Unit and Discretionary Trusts are specifically excluded.

In the case of a refinance, "cash out" is limited to $10,000.

"Off the Plan" Unit purchases are not allowed.

Applicants also need to have a Gross Asset position of at least double their Gross Income to qualify. Assets need to be of a substantive nature (eg: Property, Shares, Cash etc).

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.

Restrictions on property zoning and acreage sizes may apply ... call for details.

Initial loan must be at least $250,000 to receive Rate discounts.

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 explanation.

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.

Fees and Charges

$850 Establishment and Loan Settlement Fee.

$150 Establishment Fee for each loan split over and above the first.

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.

Fixed Rate Lock Fee of 0.15% of the loan amount to guarantee published Fixed Rate AT LOAN APPLICATION:
      - Deducted from loan proceeds at Settlement.
      - Payable per fixed loan split.
      - Valid for 90 days only (non refundable).
      - Minimum $500.

Construction administration charge of $352.50.

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

Ongoing fees of $12 per month per loan split.

Early Repayment Fees:
      - $1000 per loan split if loan is discharged in first 3 years.
      - PLUS $500 Adminstration 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).

THREE months 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. Latest Statement cannot be more than 1 month old.

The latest statement for ALL Credit Cards that you have (cannot be more than 1 month old).

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 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 SIX months Statements for all Credit Cards, Personal/Car loans being refinanced.

Loan Stucturing Information and Interest Rates

Variable Fixed Rates

Effective Date 15th September 2009 15th September 2009

Total loan amount to $250,000 5.94% (CR 6.13%) 6.14% - 1 Yr (CR 6.45%)
7.24% - 3 Yrs (CR 7.52%)
7.79% - 5 yrs (CR 8.04%)

Total loan amount:
$250,000 to $499,999 5.34% (CR 5.83%) As above

Total loan amount:
$500,000 plus 5.24% (CR 5.73%) As above

Borrowing Entity Individuals ONLY Individuals ONLY

Interest Only Option Yes - 3 to 15 years Yes

Construction Option Yes No

Extra Payments Unlimited Maximum of $10,000 pa (NON cumulative) - payments always based on fully approved loan amount

Redraw Yes Not Available

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.