Mr. and Mrs. Monash have hired your team of financial planners to consult on their intention to buy their next home.

In 5 years' time, they intend to buy a 3 bedroom in Caufield to live in. They intend to spend $1,650,000 to buy their house.

You research and found 3 available home loan providers:

Find and present in a business report, the cheapest (lowest interest rate) home loan in the market. You are required to show evidence of your comparison. 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 loan you present to them:

The loan has to be from a Non-bank financial institution

The loan needs to have a Redraw Facility

They wish to make fortnightly repayments

They wish to borrow money for 30 years

They wish to take a fully amortizing loan.

Interested in a 5 years fixed rate loan (use comparison rates only)

want an LVR of 90% (Assume any loan you research allows the LVR desired and ignored mortgage insurance)

a) Applying their desired LVR, Calculated the amount that they has to borrow

b) Calculate the deposit they must contribute in the future

c) Apply financial math to calculate the periodic loan repayment they must pay ( show formula, substitution, and working)

d) Today, they have $2500 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 % 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 % is their income greater than the loan repayment required?

I already found the lowest interest rate from home loans market :

1- Platinum Standard Home Loan Fixed IO 5 yr 150k+ ( interest rate = 3.89%, Comparison rate = 3.71%, Monthly Repayment = $5348.75) from NexusMutual