Canstar - Star Rating Review

Canstar have recently evaluated thousands of products from hundreds of financial institutions and we're thrilled to have received the good news!

Some of our products have been labelled as a top-performer, receiving a 5-Star rating.

You can view the full list of products and how Canstar have ranked below:

Product Name (Vow)

Star Rating

Resi - Flexi Options 80% Special Offer

5-Star

Resi - Smart Pro P&I 80% 200K+

4-Star

Resi - Flexi Options 80%

4-Star

Resi - Smart Pro IO 80% 200K+

3-Star

The Flexi Options product provides you with the sharpest rates and fantastic product features which include 100% offset on the full fixed rate.

The above rated Resi products are just a few they have on offer. Resi also has a product that is suited to First home buyers and investors alike with 3 year fixed rate of 3.24% up to 90% LVR for Owner Occupier properties.

Let's not forget, that sitting behind this great product, is a powerful in-house processing team who have one goal: to get you to settlement, as quickly as possible. Our aim is to make life easier for you which is why we have invested significantly to simplify the process and provide you with an outstanding service.

We have a full range of supporting documents available on https://www.vow.com.au/resi-home-loans.

If you need any assistance with placing a deal or have a scenario to work though please contact your Resi BDM

For all enquiries, please call 1800 737 448 and select:

Option 1 for Sales team or brokersupport@resi.com.au

Option 2 for Credit team or credit@resi.com.au

  • Matthew Cragg: National Credit Manager

Option 3 for Service team or service@resi.com.au

  • Celina Tramontini: National Service Manager

Disclaimer: comparison rate is based on secured credit of $150,000 and a term of 25 years. 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. Lending criteria, terms & conditions, fees and charges apply.

Risk with Borrowing Private Funds

Over the past two weeks, I have come across 3 different deals from our brokers where they sourced funding for clients. Only for their clients to pay an establishment fee after a letter of offer is issued, to then find out the company cannot fund the deal and retain the paid up "fee".

Unfortunately, most of these groups set up under a name "Capital" with a website that appears legitimate, but at the end of the day have no intention of ever funding these loans just make a quick dollar up front with no regulatory body currently controlling them.

I am aware of two different firms, one in NSW and one in QLD. If you have any doubt contact me on glenn.mitchell@vow.com.au or on 0424 377 572 first for guidance prior to handing over any fees on your client's behalf.

Thank you,
Glenn Mitchell
Head of Commercial & Equipment Finance

Deposit Power Releases New Application Form

Deposit Power releases New "one fits all" application form with only one page of data entry

If you're on the go and don't have access to the Deposit Power online system, we have released a simplified manual application form that will make it easier and quicker to complete. The new form covers all types of guarantees your customer might need, making it easier for you to help your customers.

Previously, there were several forms depending on the type of applicant, each with multiple data entry pages.

Now there is one form with only one page of data entry.

Whether it's a short or long-term guarantee, for individual or company applicants purchasing a property to live in or for investment, for auction or sale by offer & acceptance - no matter what, one form covers the lot.

The new form also enables you to type directly into the fields on the form.

The General Manager of Deposit Power, Grant Bailey said "we understand the need to keep things simple for brokers. If it is easier for them, it makes it easier to help their customers".

The new form can be found on Deposit Power's website under the 'forms & fact sheets' tab or on the Deposit Power Hub on your aggregator's website/portal.

Click here for the new form

For more information, please contact Deposit Power on 1800 678 979.

2019 Draft NCCP Amendment Bill

Message from the MFAA CEO, Mike Felton regarding key issues, activity update and next steps.

Dear member,

As many of you know, the Exposure Draft and Explanatory Materials for the NCCP Amendment (Mortgage Brokers) Bill 2019 was released by the Federal Government for consultation on 26 August 2019.

The MFAA will be providing feedback to Treasury directly through a public hearing and via a written submission on 4 October and also through the Combined Industry Forum (CIF).

However, we wanted to provide you with an update on activity that is well under way to respond to this draft legislation, the key issues being addressed and the next steps following this consultation.

Background

The legislation draws on the findings of the Royal Commission, Productivity Commission and ASIC Remuneration Review over recent years, and has been influenced by some of the reforms implemented by the CIF, ongoing advocacy and industry data.

The legislation is designed to introduce a 'Best Interest Duty' for brokers and legislate changes to remuneration practices to mitigate the impact of conflicted remuneration and ultimately, to continue to improve customer outcomes into the future.

As a first step, we have undertaken an extensive internal review of the legislation and explanatory materials and sought legal clarification on a number of areas. The legislation as drafted is broadly in line with what we expected, however, we have identified a number of issues, and some potential unintended consequences which relate to the drafting.

We also have identified some areas where the policy articulated through the legislation varies from what was previously stated, either in intent or substance.

We will be raising these questions with Treasury throughout the consultation process to garner a clearer picture of the impact of the legislation, and will be seeking amendments where necessary to ensure the reforms are appropriate to our industry and that brokers are not impacted beyond what is necessary to deliver appropriate customer outcomes.

The Key Issues

The legislation is complex and detailed. However, there are two main issues that will affect the mortgage broker channel - the Best Interest Duty and changes to remuneration.

In terms of the Best Interest Duty, this change is somewhat self-explanatory. In essence, brokers must act in the best interest of customers at the time credit assistance is given. Where there is a conflict of interest, brokers must give priority to the interests of the consumer in providing credit assistance in relation to credit contracts.

In addition, brokers and aggregators must not accept conflicted remuneration; and employers, credit providers and aggregators must not give conflicted remuneration to brokers or other intermediaries. The draft regulations state what monetary and non-monetary remuneration is considered to be non-conflicted.

These laws seek to help both broker and customer by reducing the potential for conflicts of interest which, in turn, may impact the advice consumers receive from brokers. They are intended to strengthen existing protections for consumers dealing with brokers. According to the draft, "they bring the law into line with what consumers expect - that any advice provided by a mortgage broker serves the consumer's interests first and foremost."

In terms of changes to remuneration, these draft changes are broadly as expected. Many of the items in the draft will give legislative effect to changes already introduced by the CIF.

However, there are a number of issues in the draft legislation that have the potential to create unintended consequences, such as likely increased churn, a limiting of broker activities and even the introduction of new conflicts. These require attention and further discussion.

MFAA Activity

As such, we are currently working through a process to help the Government and the regulator to ensure the legislation as drafted will achieve the outcomes intended, i.e. the policy intent.

Over the coming weeks, the MFAA will be providing feedback to Treasury directly, through a public hearing, and via a written submission. We will also engage with Treasury and provide feedback via the CIF. To help us formulate our views, we are consulting widely with brokers, aggregators and lenders.

Most importantly, we are holding broker roundtables in each of the mainland state capitals, the first of which occurred in Sydney on Thursday 5 September, before moving on to Adelaide and Perth this week and Brisbane and Melbourne next week.

The MFAA National Aggregator's Forum met on 4 September to discuss the draft legislation and a further meeting will be held prior to the end of the Treasury consultation period.

The input received from members at our roundtables and forums will be an important source for our response on this legislation, which we will submit to Treasury on 4 October.

Next Steps

This consultation is not the end of this process.

From here, Treasury will be working on drafting final legislation. If there are still issues with the draft legislation after this round of consultation, there will be opportunities to help shape the ultimate legislation, and the MFAA will continue to consult with you and engage with Treasury as the legislation is finalised.

Following legislation, there will be an explanatory guide produced, which will help answer many of the questions you may have about how to apply these changes, but that will not be for some time yet.

We will update you as we work through this process, but rest assured, we will continue to advocate with Treasury and the regulator to ensure the legislation is effective in continuing to improve customer outcomes, while protecting competition and ensuring a sustainable mortgage broking industry.

Kind regards,
Mike Felton
Chief Executive Officer
Mortgage & Finance Association of Australia (MFAA)