18 November

No early exit fees and no new business rate increase at La Trobe Financial

Welcome to our monthly lending newsletter for November 2010. We would like to take this opportunity to talk to you about several matters including exit fees, specifically early repayment fees, interest rates and some new guidelines issued by ASIC.

We do not charge any early repayment fees on products regulated under the NCC

Recently we were incorrectly attributed by several media outlets as having some of the highest early repayment fees in Australia and this is not correct. Our standard discharge fees for NCC loans total $765 and this places us at the lowest end of the exit fee scale; a fact we are very proud of.

Stephen Bartholomeusz's recent article from the Business Spectator entitled "Showing non-banks the exit" highlights research by Goldman Sachs of the unintended consequences of the government's recent action to limit exit fees and makes very interesting reading : read article

Are Low Doc loans still alive - YES/NO ?

There has also been commentary indicating an end to low doc lending following the introduction of responsible lending guidelines from ASIC. We don't agree and believe low doc lending is here to stay and there remains a strong underlying customer demand for it.

La Trobe Financial will continue to support all self employed borrowers by providing our Express Lite Doc product suite which is designed to assist self employed borrowers who may find it difficult to provide full financials.

Available to 75% LVR for purchase, refinance (including debt consolidation) and with up to 1 unpaid default to $5,000 (and up to 2 Telcos ignored) we believe this is a valuable and important product for Australians to have access to.

No increases in our new business rates

Following the RBA announcement on Melbourne Cup day increasing official interest rates by 0.25%, we are pleased to announce that La Trobe Financial will NOT be passing on any increase to our new business borrower clients. Existing customer accounts will receive a 0.39% increase which is lower than the average passed on by the four major banks.

Good loan products

With our discount rates starting from as low as 6.29%p.a.4 your clients can consolidate their debts, access their equity or buy their own or investment property. Or for those requiring our Credit Repair loan suite, which is available for your clients with up to 4 defaults totaling $25,000 we continue to offer valuable competition to the major banks in our chosen markets.

With no early exit fees, no increases on our new business rates and commissions paid without any qualifying period or volume hurdles you can continue to deal with a lender who following a recent MPA magazine article "Brokers on Non Banks" came "...highly recommended..." in 6 of the 10 categories. We think you will see in us a continuing alternative to the banks.

Best 12 month investment rate

La Trobe Financial's Pooled Mortgages Option also has Australia's best 12 month investment rate at 7.80%p.a.1 which when compared with current Bank Term Deposits of circa 6%p.a. for the same period, offers a great return and interested investors should call our investor hotline 1800 818 818.

So do what hundreds of brokers do and call our on the spot broker hotline 1800 707 707 and speak to a decision maker today.

Best regards
Iain Pepper


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Iain Pepper
Head of Lending

Iain Pepper is a Vice-President and the Head of Lending for the La Trobe Group.Read full profile here.

La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 145 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.

Copyright 2010 La Trobe Financial. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial. Disclaimer

IMPORTANT: This message, together with the La Trobe Financial website (www.latrobefinancial.com.au) and all its contents have been prepared for general information only and should not be taken as legal or financial advice, and as such the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the La Trobe website. La Trobe Financial Asset Management Limited ABN: 27 007 332 363 and AFSL No: 222213 is the issuer and manager of the La Trobe Australian Mortgage Fund. It is important for you to read the Product Disclosure Statement for the Fund before you make any investment decision. You can get a copy of the PDS by calling 1800 818 818. You should consider carefully whether or not investing in the Fund is appropriate for you. (1) The rates of return from the Fund are not guaranteed and are determined by future revenue of the Fund, and may achieve lower than expected returns. Investors risk losing some or all of their principal investment. (2) The rating report is available on the La Trobe website or upon request. The rating is only one factor to be taken into account in deciding to invest. (3) Withdrawal rights are subject to liquidity and may be delayed or suspended. (4) Rates (where shown) are indicative and for information purposes only and must be confirmed by your La Trobe loan manager upon formal application. Rates are subject to change. Please refer to http://www.latrobefinancial.com.au for full comparison rate schedule