Finance Broker Australia

First Permanent the lender behind the 106 percent no deposit home loan and the Establishment Home Loan have issued the following announcement.

16th April, 2008

Important announcement

Due to the global liquidity crisis, First Permanent will, until further notice, cease new mortgage lending activity effective last Friday 11" April.

First Permanent's shareholders are currently considering several options for the business.

Deposit for a home purchase can be made up of three different stages.

• The total available deposit available to contribute toward the purchase.
• The holding deposit usually payable when an offer is accepted but prior to the contracts of sale being signed and exchanged.
• The 5 or 10 percent deposit usually payable following exchange of contracts for sale.

When there is only a limited deposit available a 5 or 10 percent deposit requirement can usually be avoided by obtaining a deposit bond or deposit guarantee.

From 7 April 2008 St.George/BankSA is making changes to the No Deposit – Quick Start Option. This option is suitable for those customers who have minimal funds upfront to purchase a property. This includes customers who do not wish to pay the LMI or the LEF (Loan Extension fee). The changes are as follows:

• The variable interest rate margin will increase from 0.32% to 0.50% above the Standard Variable Rate;
• The fixed interest rate margin will increase from 1% to 1.15% above the Standard Fixed Rate; and