In 6 years time, they intend buy a 3 bedroom house in Caulfield to live. They intend to spend $1,150,000 to buy their house.

Find and present in a business report, the cheapest (lowest interest rate) home loan in the current market (assume current rates will apply in the future). You are required to show evidence of your comparison. No evidence of comparison will result in a -2 mark penalty. Evidence would be comparing your recommendation with at least two other loan products which also match all the conditions below.

Mr and Mrs Monash have the following conditions and needs of the home loan they will borrow:

Mr and Mrs Monash have the following conditions and needs of the home loan they will borrow: (not following the conditions given above or below will result in -2 marks deducted for each condition breached. Conditions are given in RED font) The loan has to be from a Non-bank financial insitution The loan needs to have a Offset facility Mr & Mrs Monash wish to make fornightly repyaments They wish to borrow money for 25 years They wish to take a fully amortizing loan. They are interested in a 5 year Fixed rate loan (use comparison rates only) Mr & Mrs Monash want an LVR of 90% (Assume any loan you research allows the LVR desired and ignore mortgage insurance) a) Applying their desired LVR, Calculate the amount Mr and Mrs Monash has to borrow. b) Calculate the deposit Mr and Mrs Monash must contribute in the future. c) Apply financial math to calculate the periodic loan repayment Mr and Mrs Monash must pay. (show your Excel working, missing working will result in a -4 mark penalty) d) Today, Mr and Mrs Monash have $2,000.00 of disposable income to service their debt at each loan repayment period. Assuming, their income increases by the current rate of annual inflation, will they be able to afford the periodic loan repayment needed for the loan? If not, by what nominal annual percentage will they have to grow their disposable income available to service the loan in the future when they buy their house? If their future income is greater than the loan repayment required, by what percentage is their income greater than the loan payment required?