Broker Product Guide. January Non-Bank of the Year. Broadest Product Range financing every life cycle

Transcription

1 Broker Product Guide January 2018 Non-Bank of the Year AWARDS 2017 BEST NON BANK AUSTRALIA La Trobe Financial is one of Australia s leading Credit Specialists, providing funding and investment solutions to a diverse range of customers since For over 65 years La Trobe Financial has serviced clients whose financial requirements have not been adequately met by the traditional banking sector. In that time we have lent in excess of $12 billion to over 130,000 borrowers. We have utilised both conventional lending channels and pursued bespoke combinations of sources and structures reflecting our core values of reliability and durability for all our commercial partners and for our business. This success combined with dedication to high personal service levels and consistent solution lending has seen La Trobe Financial achieve consistent business success. Broadest Product Range financing every life cycle 02_02E_005 RESIDENTIAL COMMERCIAL CONSTRUCTION SMSF P2C AGED CARE LOANS

2 Residential Interest Rates Questions to ask yourself as a broker when choosing lenders One app form for all our products No clawbacks on your upfront commission. No Risk/ Equalisation fees charged P2C Full Doc Lite Doc SMSF Construction Rural 100 acres First Home Assistance Aged Care RATES FROM 6.69%^ 7.29% LVR (NO LMI APPLIES) 3.99%^ SPECIAL Up to 95% 80% no LMI 4.99%^ SPECIAL 80% 75% (60% off the plan) BEFORE DROPDOWN 6.79% % FROM 3.00% SET BY PARENTS 5.60% 75% 75%** Up to 105% Up to 50% TERM 30 years 30 years 30 years 30 years 30 years 25 years 7 years INTEREST ONLY *** 1-5 years # 1-5 years # N/A 1-5 years 1-5 years N/A 7 years PURPOSE (incl. cash out) (incl. cash out) Purchase refinance of investment Construction (clients with credit impairment accepted) Purchase Refundable Accommodation Deposit (RAD) INCOME ASSESSMENT 2 payslips or financials Accountant s letter or Trading Statements or BAS 80% Rental Income. SMSF Contribution Statement. Income deemed at 3.9% Refer to Full Doc or Lite Doc Refer to Full Doc or Lite Doc Refer to Full Doc or Lite Doc Refer to La Trobe Financial MAX LOAN SIZE 80% LVR 75% LVR 80% LVR 75% LVR $2M $1.5M $1.5M Up to $5M $750,000 APP FEE % % % 1.25% % Refer to La Trobe Financial $2,500 CREDIT IMPAIRMENT LOCATION, 1 or 2 life events with unlimited defaults/judgements or, 1 or 2 life events with unlimited defaults/judgements All locations considered COMMISSION 0.50% up front & up to 0.25% trail from day 1 (no clawback) Refer to La Trobe Financial Refer to Resi commission Automatic accreditation through your aggregator. ^ Depends on loan amount and risk grade of borrower. ** Depends on acreage. *** Interest rate loading of 0.40% p.a. applies. # Interest only is not available for owner-occupied purchase loans <$1.25m. This document is for use by accredited La Trobe Financial loan brokers only and not for distribution to any other party. Terms, conditions, fees, charges and La Trobe Financial lending criteria apply.

3 SPECIAL ENDING SOON Full Doc Residential Owner Occupied Up to $1.25m LVR 65% 80% 3.99% 4.59% Lite Doc Residential Owner Occupied Up to $1.25m LVR 65% 80% 4.99% 5.59% Full Doc Residential Purchase, Refinance, Debt consolidation & Cash out Up to $1m 4.69% 5.19% 5.44% 5.69% Near- CR1 5.89% 6.04% 6.39% Near- CR2 6.89% 7.39% 7.74% Near- CR3 7.39% 7.65% 7.89% >$1m - $1.5m 6.29% Near- CR1 7.04% 7.29% Near- CR2 7.39% 8.04% >$1.5m - $2.5m Near- CR1 7.19% 7.69% $2.5m - $5m Near- CR1 Lite Doc Residential Purchase, Refinance, Debt consolidation & Cash out Up to $1m 5.69% Near- CR1 5.89% 6.14% 6.39% Near- CR2 7.39% 7.65% 7.89% >$1m - $1.5m 6.54% 7.04% Near- CR1 7.04% 7.29% Near- CR2 7.39% 8.04% >$1.5m - $2.5m Near- CR1 7.19% 7.69% $2.5m - $5m Near- CR1 Australia's leading credit specialist SMSF Residential Metropolitan Houses/ Townhouses LVR 75% 6.69% 7.59% Metropolitan - Apartments Up to $1m LVR 70% 6.69% 7.59% Major Regional Up to $1m LVR 70% 7.59% Off the plan & inner city apartments Up to $1m LVR 60% 7.59% Construction Residential Single property construction Up to $1.5m LVR 60% 70% 75% 7.29% Near- CR1 Rural Full Doc Residential Rural/residential property <100 acres Up to $1.5m LVR 65% 75% 6.79% Near- CR1 Near- CR2 7.29% Rural Lite Doc Residential Rural/residential property <100 acres Up to $1.5m LVR 65% 75% 7.04% Near- CR1 Near- CR2 7.54%

4 Commercial Interest Rates questions to ask yourself as a broker when choosing lenders Am I putting my clients first in referring to this lender? Is my broker income always protected on every loan? Is there a risk/equalisation fee being charged? If so, why aren t you calling La Trobe Financial? Lease Doc Lite Doc SMSF Development No Presales Rural >100 acres RATES 6.99% 6.99% 6.99%^ %^ 9.15%^ LVR (NO LMI APPLIES) 70% 70% 70% 70% 55% TERM 25 years 25 years 25 years 1-2 years 1-5 years INTEREST ONLY 1-5 years 1-5 years 1-5 years 1-2 years 1-5 years PURPOSE Finance leased commercial property (incl. cash out) Purchase or refinance of investment. Multi-unit construction in metro locations (incl. cash out) INCOME ASSESSMENT Full Lease Agreement Accountant s letter or Trading Statements or BAS 80% Rental Income. SMSF Contribution Statement. Income deemed at 3.9% Accountant s letter or Trading Statements or BAS Full Doc or Lite Doc MAX LOAN SIZE 70% LVR 70% LVR 70% LVR 70% LVR Up to $5M APP FEE % % % 1.50% % CREDIT IMPAIRMENT, 1 or 2 life events with unlimited defaults/judgements or, 1 or 2 life events with unlimited defaults/judgements LOCATION All locations considered Automatic accreditation through your aggregator. ^ Depends on loan amount and risk grade of borrower. ** Depends on acreage. *** Interest rate loading of 0.40% p.a. applies. # Interest only is not available for owner-occupied purchase loans <$1.25m. This document is for use by accredited La Trobe Financial loan brokers only and not for distribution to any other party. Terms, conditions, fees, charges and La Trobe Financial lending criteria apply.

5 Lease Doc Commercial Purchase, Refinance, Debt consolidation & Cash out Near- CR1 Near- CR2 Lite Doc Commercial Purchase, Refinance, Debt consolidation & Cash out Near- CR1 Near- CR2 6.99% Purchase, Refinance & Debt consolidation Near- CR1 Near- CR2 6.99% Purchase, Refinance & Debt consolidation Near- CR1 Near- CR2 $2m - $5m $2m - $5m SMSF Commercial Development Finance Multiple property construction LVR 60% 65% 70% 8.99% $2m - $5m LVR 60% 65% 70% Purchase & Refinance Near- CR1 Rural Rural property >100 acres 10.35% 6.99% Greater than 100 acres LVR 50% 55% 9.15% Near- CR1 9.45% Application fees NP CR1 NP CR2 NP CR3 Full Doc Special $995 $995 N/A N/A N/A Lite Doc Special 0.75% 0.75% N/A N/A N/A Full Doc Res. $2m 0.75% 0.75% 1.50% 1.50% 1.50% Full Doc Res. >$2m 1.25% 1.25% 1.75% n/a n/a Lite Doc Res. $2m 1.25% 1.25% 1.75% 1.75% n/a Lite Doc Res. >$2m 1.50% 1.50% 1.75% n/a n/a SMSF - Residential 1.25% 1.25% n/a n/a n/a SMSF - Res. (Off the plan) 1.50% 1.50% n/a n/a n/a SMSF Commercial 1.25% 1.25% n/a n/a n/a Residential Construction 1.25% 1.25% 1.25% n/a n/a Development Finance 1.50% 1.50% n/a n/a n/a Rural >100 acres 1.25% 1.25% 1.75% 1.75% n/a Commercial 1.25% 1.25% 1.75% 1.75% n/a Commercial lending made easy

6 Success Story 1: Residential Full Doc Refinance with cash out Full Doc Applicants were looking to refinance their existing mortgage of $460,000 secured against their owner-occupied residential property valued at $750,000. They also needed to repay a tax debt of $80,000, additionally they required cash out of $60,000 for small home renovations and a family holiday. Applicants also had 2 unpaid Telco and utility defaults under $1,000 listed on both credit files. Loan was approved using our Residential Full Doc product at 80% LVR under our CLEAR risk grade withv the existing mortgage, tax liability and all defaults being paid as part of settlement proceeds, with the balance deposited to the borrowers bank account for their renovations and family holiday. Success Story 2: Residential Lite Doc Refinance with cash out Lite Doc Applicants were looking to upgrade their business premises ($150,000) and raise equity to fulfil their business expansion plans ($100,000) by using equity from their owner-occupied residential property valued at $650,000 (with current debt $270,000). Applicants had been operating their business as a sole trader for 3 years before changing the operating structure to a company less than a month ago. Loan was approved using our Residential Lite Doc product at 80% LVR with income verification being achieved via an accountant s certification and borrower repayment declaration. Success Story 3: Residential SMSF Purchase SMSF Applicants had recently set up a SMSF with the intention to purchase an existing 2 bedroom apartment, forming part of a low-rise apartment block in metropolitan Melbourne, valued at $350,000. Applicants had an existing superannuation balance of $50,000 and had each made additional contributions of $35,000 into the fund this financial year. As the contributions were made in a lump sum rather than periodical, serviceability was looked at outside the SMSF in its own right, and was based on the company s performance as well as the applicants ability to make regular contributions to their SMSF. Servicing also took into account applicants living expenses and personal liabilities. Loan was approved using our Residential SMSF product at 70% LVR. Success Story 4: Residential Construction Builder Owner Construction Applicant, a registered builder had previously built and sold two houses and was now seeking funding to construct an investment property in Queensland. Applicant s credit file revealed 2 small defaults. Applicant was able to provide a fixed price, fixed time building contract from his building company for $750,000 and already owned the land (valued at $250,000). Loan was approved using our Residential Construction product at 75% LVR (based on end value), with income verification met by an accountant s certification and borrower repayment declaration. Success Story 5: Commercial SMSF Purchase Commercial Applicant operates his business from his own unencumbered commercial premises valued at $850,000. He was advised by his financial planner to purchase the property with his SMSF and gear the property to 70% LVR with interest only payments, in turn offering the applicant access to the equity in the property in order to settle a separation agreement ($460,000) and purchase new equipment ($100,000) for further business expansion. Loan was approved using our Commercial SMSF loan product at 70% LVR. Success Story 6: Development Finance 4 units Development The applicant, a registered builder was looking to construct 4 townhouses in a metropolitan Brisbane suburb. A construction loan of $1,920,000 was sought by the applicant who intended to retain ownership of the properties for investment and rent them out on completion. A building contract had been entered into for $1,300,000 to construct on land valued at $1,100,000 that had an existing mortgage of $250,000 in place. Loan was approved and construction project funded by La Trobe Financial under our Development Finance product with no further cash input from the applicants and no pre-sale requirement, allowing the developer to hold the stock on completion. Subsequently, a pre-approval was provided for the Residual Stock facility at the initial application stage.

7 Success Story 7: Commercial Lease Doc Refinance with cash out for investment Lease Doc Applicants own a commercial premises valued at $1,300,000 that is leased to a retail outlet for $80,000 p.a. with 3 years remaining. They have a current debt outstanding to a major bank of $650,000 secured by this property. Applicants are looking to access equity $260,000 total in order to purchase additional stock for their own business ($170,000) and to consolidate an outstanding ATO debt of $90,000. The monthly rental income received covered the proposed monthly loan repayment commitment by 1.22x (ICR), and therefore Loan was approved at $910,000 (70% LVR). This also allowed for the refinance and equity release under our Commercial LeaseDoc product by simply verifying serviceability from the Lease Agreement already in place. Commercial Success Story 8: Commercial Lite-Doc Refinance with cash out for business Applicants operate their business from their own commercial premises and on advice from their Accountant were seeking funding to refinance their existing commercial loan with the intention to access equity to buy additional stock in readiness for a trade fair. Additionally, they required cash out to clear current trade debtors in order to free up business working capital and set up a debtors finance facility. Applicant s credit file revealed a paid default due to dispute over trade account. Applicant s financials had not yet been completed so income was verified via Accountant s declaration and a borrower repayment declaration. Loan was approved under our Commercial Lite Doc product at 70% LVR under our PRIME risk grade with a 25 year loan term with no periodical reviews. Success Story 9: Residential-Rural Full Doc Rural 100 acres Applicants were looking to refinance their 40 acre rural residential property in the Hunter Valley. They had incurred a credit card default of $24,000 due to their child being injured resulting in large medical bills. Additionally they required cash out to upgrade their kitchen. The applicants confirmed the non-income producing nature of the property and advised it was an owner occupied home with a large shed housing chickens. Both applicants are PAYG and employed locally. Loan was approved under our Residential-Rural Full Doc product at 75% LVR with default paid as part of settlement proceeds. P2C First-Home Success Story 10: Parent to Child (P2C ) Applicant and her partner wanted to purchase their first home however only had enough to cover a 5% deposit plus costs, and between them they had 3 small defaults on their credit file therefore limiting their borrowing capacity at 95% LVR with Lenders Mortgage Insurance. The homebuyer s parents were happy to assist their daughter and her partner however were reluctant to provide personal guarantees and wanted to protect the additional 20% they were providing. We provided the applicants with our Residential Full Doc loan to 80% LVR (on a 1st mortgage basis), and then provided a further Parent to Child (P2C ) loan to 100% LVR utilising the parents 20% contribution on a peer-to-peer basis, secured by a registered 2nd mortgage to facilitate the purchase. There were no guarantees provided by the parents, and their 20% contribution was invested in the La Trobe Australian Credit Fund, secured by way of a 2nd registered mortgage over the applicant s property to protect their interest. Success Story 11: Aged Care Aged Care Application lodged by enduring Power of Attorney () who was seeking funds to place elderly mother, who was ill and living alone, into an Aged Care facility without selling the family home. The RAD (refundable accommodation deposit) required was $660,000 and a further $70,000 cash out to complete renovations to the property in order to assist with the sale of the property at a later point in time. The total loan required was $730,000, and the current value of the property was $1,500,000. Loan was approved using our Aged Care loan for $730,000 with interest repayments capitalising for the first five years. Success Stories Success stories serve as examples only. Terms, conditions, fees, charges and La Trobe Financial lending criteria apply.

8 MELBOURNE SYDNEY SHANGHAI HONG KONG All features and interest rates are current as at the date of publication. La Trobe Financial Services Pty Limited ACN Australian Credit Licence La Trobe Financial Asset Management Limited ACN Australian Financial Services Licence Australian Credit Licence Copyright 2017 La Trobe Financial Services Pty Limited ACN All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial.