Vow Group Lending: new lower rates

New, lower rates for Smart Pro loans

We are pleased to provide some great new variable pricing specials for our Smart Pro range, available from 5 June 2017.

Our new Standard Variable rate for Owner-occupied customers paying P&I repayments up to an 80% LVR is now 3.84% p.a.

We also offer an investment version (P&I repayments up to 80% LVR) at a rate of 4.34% p.a.

These hot new rates apply to all loans above $200,000. Both options attract an upfront Commission of 0.70% and a trail of 0.15% (click here for the rate card) VOW Rate Sheet 01 June 2017.pdf

We'd also like to update you on our current service levels. Turnaround times are currently within two business days (48 hours) for both our Flexi Options and Smart Pro ranges.

About Smart Pro loans

Our Smart Pro loan is best described as a well-featured mortgage account. While it does not offer an offset account, there is good transactional ability for redraw and internet banking. A full product and feature description sheet is attached for your reference. YBR Smart Pro Fact Sheet 010517.pdf

Customise for your clients

We also offer the flexibility to customise pricing according to your needs to win business. For example, we offer a further discounted version of the Owner-occupied product at a rate of 3.74% paying a 0.70% upfront and 0.05% trail. You may wish to consider this option for a rate sensitive client who has responded to a Rate Smasher ad, but wants greater functionality for their loan.

The team is ready to discuss your next scenario, so please feel free to contact them:

Craig Herden (Relationship Manager)

craig.herden@ybrgl.com.au

0478 537 841

Peter Brown (Relationship Manager)

peter.brown@ybrgl.com.au

0468 755 419

Max McInerney (Relationship Manager)

max.mcinerney@ybrgl.com.au

0412 000 029

Foreign purchasers: changes to CGT withholding

New rules to apply from 1 July

If you are working with foreign purchasers, proposed CGT withholding changes will affect them from 1 July if passed by the Senate.

It appears likely that CGT withholding of 12.5% of the purchase price will apply to sales of $750,000 or more in respect of real estate sale contacts entered into on or after 1 July 2017. Currently the threshold is $2m and the rate is 10%. Under this regime, purchasers of Australian real estate must withhold and remit to the ATO 12.5% of the purchase price if the vendor is a foreign resident (subject to some exemptions).

Real estate lenders need to decide how they will deal with this risk and inform their settlement teams. The extension of the rule to sales of $750K or over substantially extends the operation of the regime.

When financing borrowers who are purchasing real estate:

Option 1: Make no inquiries and accept the risk that borrowers may fail to withhold when required. The risk with this approach is that your borrower could be required to pay 12.5% of the purchase price to the ATO (ie in addition to the purchase price paid to the vendor). This liability does not create a charge on the land.

Option 2: Require evidence that the vendor to your borrower is not a foreign entity so there is no 'surprise' liability on your customer to withhold.

Update courtesy of Dentons Lawyers

NAB Home Lending

Following on from removal of the NAB Broker Products from sale on 11 March 2017, they will be moving all existing NAB Homeplus and NAB Peak Performance loans to equivalent NAB Home Lending Products that are NAB Tailored Home Loan and NAB Flexiplus Mortgage respectively.

This change will not impact payment of the existing Trail Commission structure for brokers which currently applies to the off-sale NAB Broker products.

Commencing mid-June, customers will be notified that their NAB Homeplus and/or NAB Peak Performance loans will move to equivalent NAB Home Lending Products. The migration will run through until the end of September 2017.

To ensure the transition is simple for customers, the following key features will not change:

  • Customers' net interest rate
  • Home Loan Repayments
  • Home Loan Account number
  • Home Loan Repayment arrangement such as direct debit, salary sacrifice or progressive payments

NAB Homeplus monthly fee will reduce from $10 to $8 in line with NAB Tailored monthly fee upon migration. NAB Peak Performance customers will be charged $140 per annum, instead of 2 bi-annual fees of $70. Changes impacting the customer will be included in their letter.

Migrating NAB Homeplus and NAB Peak Performance loans will deliver a more streamlined and consistent customer experience. Simplifying the NAB Broker portfolio reduces complexity, simplifies processes and delivers an enhanced customer experience.

No change to loan account numbers facilitates tracking of commission payments

Customers' account numbers will continue to remain the same.

This means the commission payments to Brokers will continue to track to the same loan account numbers. This will also enhance the variation process which has been simplified by the updated 'Request to Change' form.

Westpac Business Update

Wespac

Changes to Interest Only Lending.

At Westpac, we are passionate about helping more Australians into their homes. We recognise that every customer's situation is different and continue to offer flexibility to ensure we can support all of our customers with their Home Lending needs.

We are committed to meeting our regulatory requirements, and ensuring we are lending responsibly and in the best interests of our customers. We regularly review our polices and processes based on a number of factors such as the impact of regulatory requirements and the economic environment.

Today, we are announcing some policy changes to our interest only lending policies, as outlined below. These changes will help us continue to meet our regulatory requirements and apply responsible lending practices in assessing a customer's ability to service existing and proposed debts.

What's changing

Please note, our systems have not been updated to align with policy at this stage as they will progressively be updated. Until system changes are made, care should be taken to ensure you adhere to the new policy.


Premier Advantage Package (PAP) General Insurance Benefit.

We are increasing the discount off the General Insurance premium available under the Westpac Premier Advantage Package (PAP) benefits offering.

Effective Thursday 1 June 2017 we are making changes to the Premier Advantage Package:

  • The Home and Contents/Landlord Insurance PAP benefit increases to a 10% premium discount.
  • For PAP customers, with an existing Home and Contents/Landlord Insurance policy, the increase to a 10% premium discount is effective from the first policy renewal after Thursday 1 June 2017.


Helpful Hint - Pre-EOFY Cut Off Dates.

To ensure that your clients are not negatively impacted and settlements and drawdowns can be completed by Friday 30 June 2017 please refer to the attached Westpac Pre-EOFY Cut Off Dates for a detailed listing of dates that are required to be met.

For more information, please visit Westpac BrokerBase or contact your local Business Development Manager.


Kind Regards,
The Westpac Mortgage Broking Team

/clients/vow/downloads/wbc_2017_eofy_cut_off_dates.pdf


$1250 Refinance Rebate.


Westpac recently announced changes to its Interest Only lending policy, whereby new external refinance applications for standalone Owner Occupier Interest Only Home Loans will no longer be accepted from Monday 5 June 2017.

Due to this change, the $1250 Home Loan Refinance Rebate under the Premier Advantage Package (PAP) will not be available to Owner Occupiers making Interest Only repayments from Monday 5 June 2017. Refinance applications from Owner Occupiers with Principal and Interest repayments, or Investors are not impacted by this change.

Please note, the $1250 Home Loan Refinance Rebate offer is available to eligible customers for a limited time only, and may be withdrawn by Westpac at any time.


Client Eligibility Criteria.

  • $1250 Refinance Rebate is available for new Westpac Owner Occupier (Principal and Interest) or Investment (Principal and Interest or Interest Only) home loans under the Premier Advantage Package (PAP).
  • "$1250 Refi Rebate" must be noted in your application comments when submitting the application for an eligible home loan.
  • Only 1 rebate per property refinance will be paid regardless of the number of loans involved.
  • Rebate will be automatically deposited into the customer's Westpac home loan account within 2 months of settlement.
  • Minimum loan size of $150,000.
  • Annual Premier Advantage Package (PAP) fee of $395 applies.
  • The client must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package.
  • This offer can be withdrawn at any time.

Exclusions.

  • This offer is not available for refinances of home loans within the Westpac Group, which includes refinances from Westpac, St.George, Bank of Melbourne, BankSA and RAMS.
  • Offer excludes Owner Occupiers with Interest Only repayments.
  • This offer is not applicable for residential lending originated under family or company trust.
  • Based on package eligibility this offer is not applicable for use with Flexi First Option Home Loan and Flexi First Option Investment Loan.
  • This offer is not applicable for Non-Residential Lending.
  • This offer is not available in conjunction with any other offer.

Pipeline.

  • This offer is effective today and applies to eligible new loan applications with the promotion code "$1250 Refi Rebate" entered into the comment section of the application.

For further details, please see FAQ's on Westpac Broker Net.




WA First Home Owners Boost Payment.

Recently the WA Office of State Revenue announced that eligibility for the First Home Owners boost payment will now cease on Friday 30 June 2017 instead of Sunday 31 December 2017.
Although the end date changes, all other conditions of the scheme remain the same. If you're in discussions with customers about these schemes, the following will need to be noted:

Your customer will need to complete the F-FHOG 5 'Boost Payment - Addendum to the FHOG Application Form' to receive the boost payment. The additional $5,000 boost payment applies to the following:

  • If the contract to build a new home or purchase a new home is made on or after Sunday 1 January 2017 and on or before Friday 30 June 2017.
  • The contract to buy a new home must be for the first sale of the home.
  • Construction of the new home must have commenced within 26 weeks after the date of contract.
  • The construction contract must specify a completion date of building work within 18 months of commencing.
  • A contract to buy a new home off the plan on or after Sunday 1 January 2017 and on or before Friday 30 June 2017 and a specified completion date of on or before Sunday 30 June 2019.


For more information, please visit Westpac BrokerBase or contact your local Business Development Manager.



Kind Regards,
The Westpac Mortgage Broking Team

$1250 Refinance Rebate FAQ's

ING Residential Update - New rate cards available

Fixed Rates for Owner Occupied Interest Only loans

Effective for applications received from Tuesday 6 June 2017, Interest Only repayments will not be available on any of our Owner Occupied fixed rate loans. Should customers wish to access these Owner Occupied fixed rates, they will need to request Principal & Interest repayments.


Changes to Fixed Rates

From 6 June 2017, we will be reducing our Owner Occupied 3 and 5 year fixed rates (combined with Orange Advantage) to 3.79% p.a. and 4.19% p.a. respectively. Our standard Owner Occupied 3 and 5 year fixed rates will also be reduced.

We will also be increasing our 3 year Investment fixed rate.

Click here for more information