CoreLogic - Company Update

Urgent solutions to help maintain lending and valuation services

In these uncertain times, one thing is clear - we need to find new ways of working together. To help us all rise to that challenge, CoreLogic has been focusing on enabling business continuity for our customers while maintaining the safety of all involved. Many Australians are considering their finances right now, be it managing cash flow, restructuring lending or completing property transactions. Recognising the importance of valuation services, CoreLogic has been working with all stakeholders to find pragmatic and innovative solutions to enable the flow of lending. This will require some changes to the way we do business, but it will benefit all Australians.

Industry & Operational Insights

We understand that up-to-date data is critical to our shared understanding of what is happening in the property market. CoreLogic is working to provide visibility of lead indicators as well as real-time activity and operational metrics. This will be facilitated both at a macro level (latest found here), and at a customer and platform level.

Full Valuations & Alternative Solutions

CoreLogic has been actively working with the Australian Property Institute (API), valuation firms and LMI providers to support the guidelines to facilitate alternative solutions that enable valuations without the need for a full physical inspection. We continue to work closely with industry and technology partners to ensure all lenders and valuers have access to the tools they require to continue to offer remote assessments that are broad-based, scalable and compliant.

The way you order valuations in Property Hub will not change. We value your ongoing support greatly and ask you to continue to work with us and the wider industry in planning and executing options that allow business continuity wherever possible. We are conscious that it is paramount to maintain prudent lending and valuations standards in any changes we make. We will communicate all major developments as they become available and will set up strategy sessions in the near future to outline these solutions.

In times of uncertainty, clarity is of the utmost importance and we are deeply committed to working with you so that you and your customers can find ways to continue the flow of lending. If you have any questions or suggestions, don't hesitate to contact your Account Executive or to email covidsupport@corelogic.com.au.

Lender Update

The fixed-rate home loan special for first home buyers is coming to an end

NAB continues to simplify its home lending proposition so that current service levels can be retained and customers get continuous support during the Coronavirus pandemic.

The First Home Buyer 2 Year Fixed Rate Special will end on Sunday 19 April 2020. Applications submitted on or after 20 April 2020 will require a previously approved and valid pricing approval.

Supporting first home buyers

  • First home buyers can still access our lowest ever fixed rates - Principal and Interest 2 Year Fixed Rate at 2.29% p.a. (comparison rate 4.04% p.a.) for owner-occupiers.
  • 33% LMI discount for first home buyers
  • For eligible customers, NAB continues to proudly participate in the First Home Loan Deposit Scheme


Visit NAB's offers page and nabbroker.com.au for more information.

Note: the removal of this fixed-rate special coincides with the removal of NAB's Cash Bonus offer announced last week where for customers to receive the $2,000 Home Buying Bonus and/or the $4,000 Refinance Cash Bonus offers, they must now submit an application by Sunday 19 April 2020 and drawdown by Tuesday 30 June 2020 (drawdown date remains as per the existing eligibility criteria).

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

SME Scheme and Liberty

Liberty Approved for Guaranteed SME Loans Scheme

Although this year has been overtaken by challenges, Liberty has been inspired by the strength and support for one another that is currently being expressed in our community.

Liberty was appointed today as a participating lender to the Australian Government's SME Guarantee Scheme for unsecured business loans to help those affected by COVID-19. This is an important Government initiative for businesses. Every application will be treated as a priority in order to provide funding to small businesses as quickly as possible.

The new program, Liberty Business Care, aims to help small businesses in need of working capital with an unsecured term loan of up to $250,000 for a maximum of three years. Loan repayments will be deferred for the first six months with interest to be capitalised.

Any Australian small business with an aggregated annual turnover under $50 million can apply for Liberty Business Care for working capital purposes, including liquidity and operating expenditure. The Scheme funding cannot be used to refinance any existing credit arrangements.

To apply for funding, small businesses can contact their Liberty accredited broker, call 13 11 33 or visit www.liberty.com.au/businesscare. The loan needs to be approved and unconditional by 30 September 2020. Borrowers have a loan limit under the Scheme across all participating lenders of $250,000.

In accordance with the Scheme, there will be no fees payable on committed, but undrawn amounts under the loan. The loan will feature redraw capability and be secured with personal guarantees of relevant individuals.

An upfront commission of 0.45% of the approved amount will apply to all successful loan applications. No trailing commission will be payable.

James Boyle, Chief Executive Officer, Liberty, said that Liberty had extensive experience in working with small business and understood the challenges they faced.

"We are pleased with our appointment so that we can extend our accumulated experience to further support individuals, households, businesses, and our economy at this critical time," he said.

"Please give your Liberty Business Capital BDM a call to go through the process of what is required. Due to the unsecured nature of this loan, we look forward to partnering with our accredited brokers to help eligible small businesses get the funding they need.

"The Australian broker industry has our commitment that we will continue to make vital funding available to support our valued customers during this testing period," Mr. Boyle said.

Flexi-Options Rate Reduction

Here at RESI, we understand that this is an extremely difficult time for brokers and clients. We have already announced that brokers will continue to receive trail on any existing RESI loan which enters into a repayment holiday due to this pandemic.

We are proud to announce that we have reviewed and reduced our Flexi Options rate across the board! Our variable rates start at 2.77% and our fixed start from 2.39%. all our loans, fixed or variable, have the option of linking a 100% offset account for just $10/pm.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

2020 - A Crucial Year for Property Investors

The new financial year is rapidly approaching, and property investors need to be particularly focused on this forthcoming event compared to previous years.

July 1 heralds the start of the new financial year and it is effectively the starting gun for taxpayers throughout Australia to prepare and submit their tax returns for 2019/2020.

It is an unfortunate fact that many taxpayers who own investment properties will collectively miss out on millions of dollars in tax depreciation benefits from July 1 simply because they do not fully claim them through a lack of knowledge.

This is even a more unfortunate fact this year as the owners of rental properties need to boost their cash flow as much as possible because of the severe financial impact of the coronavirus.

For individual investors, these tax depreciation benefits can add up to thousands of dollars in missed tax depreciation benefits for the 2019/2020 financial year.

Tax depreciation on a residential property is a deduction against assessable income allowing the owner to reduce the amount of taxation payable.

An investor can claim for two distinct types of depreciation on buildings. The first is Capital Allowance which is a deduction based on the historical construction costs of the property and may include surveying, engineering, architectural and building fees. The second is Plant and Equipment which includes items such as floor coverings, window treatments, and fixed equipment i.e. cookers.

Most investors do not realise that tax benefits obtained through depreciation can be equivalent to 60% of the total purchase price of the property.

For a new apartment in a capital city, for example, this can equate to over $300,000 in possible tax benefits through depreciation.

You should engage the services of a tax deprecation company that will undertake an inspection of your property and provide you with an ATO compliant tax depreciation report which you can provide to your accountant. This report is a 'once-off' and will outline the number of tax benefits you can claim on an annual basis. Anyone considering employing a tax depreciation company should ensure that they are a member of the Australian Institute of Quantity Surveyors (AIQS).

Typically, a tax depreciation schedule costs around $600. This cost is tax-deductible if you pay tax. It is a small investment considering a large amount of tax depreciation benefits you can obtain especially if you own new or nearly new property.

It has been estimated that only one in five residential investors make use of the tax depreciation entitlements which are available to all investors on all investment properties.

Many property investors who have owned their properties for several years and have not undertaken a tax depreciation schedule still have the potential to claim back thousands of dollars in tax depreciation benefits.

A depreciation schedule can be undertaken at any time by a property investor. If you own a property for several years, you can still undertake a depreciation schedule and put in an adjusted tax return to enable them to obtain unclaimed tax depreciation benefits.

So, if you are a property investor and plan to visit your tax accountant in the lead up to the start of the new financial year, raise the issue of tax depreciation and obtaining an ATO compliant tax depreciation schedules for your property or properties.

You should also discuss with your accountant the fact that desktop estimates of potential tax depreciation benefits if not accepted by the ATO and a physical inspection of the property is required.

Obtaining a tax depreciation schedule is a small investment that can deliver a huge financial return and boost cash flows during a time when rents throughout Australia are under downward pressure.