Did You Know Resi Can Assist?

Did you know that Resi can assist in the below niches?

  • 85% No LMI or risk fees
  • 6 Month ABN
  • Business debt consolidation including tax Debt
  • Single security up to $2.5m on Accountant's Declaration
  • Unlimited cash out to 80% LVR
  • Up to 5 years Interest Only on Owner Occupied
  • No Credit Scoring
  • O/O Construction up to 95% LVR
  • Investment lending up to 95% LVR
  • Bridging Finance including construction
  • Properties up to 120 acres as security
  • Non Genuine savings up to 95% LVR
  • No Need for Genuine Savings up to 90% LVR
  • 6 months rental statements can be used as Genuine Savings
  • Fully Assessed Pre-Approvals
  • Fixed rates starting at 3.57%
  • Lo Doc rates starting at 4.61%

For the full range of product fact sheets, service calculators and documents please go to Resi Funded Products.

For all scenario and policy enquiries please contact your local BDM. 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

Download Rate Card 28/06/19

Lender Changes Following RBA Announcement

Existing mortgage rates where details have been confirmed as of 11 June 4pm.

Please note that where there is also reference to new rates dropping, please bear in mind that this is only the reference rate. It will take some time for new pricing to filter through in terms of new lending, especially special offers which are typically documented as a discount off the relevant SVR.

We expect that special offers, which is where the bulk of new business is written, will take some time to settle down.

ANZ Bank interest rate cut
Rate cut: 18 basis points (0.18%)
Applies to: All variable home loan rates for new and existing customers
Effective date: 14 June 2019

Commonwealth Bank interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: All variable home loan rates for new and existing customers
Effective date: 25 June 2019

NAB interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: All variable home loan interest rates for new and existing customers
Effective date: 14 June 2019

Westpac interest rate cut
Rate cut:
20-35 basis points (0.20%-0.35%) O/O P&I 0.20%; O/O IO 0.20%, Inv P&I 0.20%; Inv IO 0.35%
Applies to: All variable home loan interest rates for new and existing customers
Effective date: 18 June 2019

Macquarie interest rate cut (including our white label offerings)
Rate cut:
25 basis points (0.25%)
Applies to: All variable home loan interest rates for new and existing customers
Effective date: 7 June 2019 new, 21 June 2019 existing

Bank of Melbourne interest rate cut
Rate cut:
20-35 basis points (0.20-0.35%)
Applies to: Variable OO home loan P&I (20 points), variable OO home loan IO (20 points), variable residential investment property loan P&I (20 points), and variable residential investment property loan IO (35 points)
Effective date: 18 June 2019

BankSA interest rate cut
Rate cut:
20-35 basis points (0.20-0.35%)
Applies to: Variable OO home loan P&I (20 points), variable OO home loan IO (20 points), variable residential investment property loan P&I (20 points), and variable residential investment property loan IO (35 points)
Effective date: 18 June 2019

BCU interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: variable OO home loans and variable investment home loans, available for new and existing customers
Effective date: 01 July 2019

Greater Bank interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: "Variable base rate for Owner Occupied loans, Investment loans and Business loans"
Effective date: 11 June 2019

Newcastle Permanent interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: Standard variable home loans across owner occupier and investment products
Effective date: 17 June 2019

RAMS interest rate cut
Rate cut:
20-35 basis points (0.20-0.35%)
Applies to: variable home loan OO P&I (20 points), variable residential investment property loan P&I (20 points), variable home loan OO IO (20 points), and variable residential investment property loan IO (35 points)
Effective date: 18 June 2019

St. George Bank interest rate cut
Rate cut:
20-35 basis points (0.20-0.35%)
Applies to: Variable OO home loan P&I (20 points), variable residential investment property loan P&I (20 points), variable OO home loan IO (20 points), and variable residential investment property loan IO (35 points)
Effective date: 18 June 2019

Suncorp Bank interest rate cut
Rate cut:
20 basis points (0.20%)
Applies to: Variable home loans, for owner occupiers and investors
Effective date: 21 June 2019

ING interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: All new and existing customers with an ING variable rate home loan
Effective date: 25 June 2019

Virgin Money interest rate cut
Rate cut:
22 basis points (0.22%)
Applies to: Existing owner occupiers and investors
Effective date: 25 June 2019 (21 days after the RBA's decision)

AMP Bank interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: All variable rate home loans, for new and existing customers
Effective date: 21 June for new customers (17 days after RBA's decision), and 24 June for existing customers (20 days after RBA's decision)

Bankwest interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: Standard variable rate mortgages
Effective date: 25 June 2019 (21 days after RBA's decision)

Bendigo Bank interest rate cut
Rate cut:
15-20 basis points (0.15-0.20% points)
Applies to: All new and existing owner occupier and investor principal & interest loan customers (20 points), and interest-only variable term loans (15 points) 20 basis points (0.20%)
Effective date: 28 June 2019 (24 days after RBA's decision)

BOQ interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: All variable home loan rates with the exception of the Clear Path OO P&I home loan, which will drop by 15 (0.15%) basis points
Effective date: 25 June 2019 (21 days after RBA's decision)

Citi interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: Variable home loan rates
Effective date: 25 June 2019 (21 days after RBA's decision)

Defence Bank interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: All variable rate home loans
Effective date: 25 June 2019 (21 days after the RBA's decision)

Heritage Bank interest rate cut
Rate cut:
20 basis points (0.20%)
Applies to: Variable home loan rates
Effective date: 21 June 2019 (17 days after the RBA's decision)

HSBC interest rate cut
Rate cut:
22 basis points (0.22%)
Applies to: Variable home loan interest rates for owner occupier and investors
Effective date: 17 June 2019 (13 days after the RBA's decision)

ME Bank interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: All variable home loan rates
Effective date: 27 June 2019 (23 days after the RBA's decision)

Pepper Money interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: Standard variable residential home loans
Effective date: 24 June 2019 (20 days after the RBA's decision)

UBank interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: All variable home loan rates for new and existing customers
Effective date: 28 June 2019 (24 days after the RBA's decision)

CUA interest rate cut
Rate cut:
10-25 basis points (0.10-0.25%)
Applies to: Most CUA home loan products including the Standard Variable, Discount Variable and Fresh Start home loans (25 points), and the Accelerate and Balance variable home loan products (between 10 to 15 points).
Effective date: 18 June 2019 (14 days after the RBA's decision)

IMB Bank interest rate cut
Rate cut:
25 basis points (0.25%)
Applies to: Residential and business lending products
Effective date: 21 June 2019 (17 days after the RBA's decision)

Prospa's End of Financial Year Promotions

Here is a reminder of Prospa's end of financial year offers for accredited partners:

  • $15K Partner loan offer with minimal documentation and great rates for partners.
  • You earn 5% commission (fixed) for a limited time on new loans to new customers.
  • Clients now pay nothing until 22 July 2019 on new loans.

Full offer details are available here.

If you have any questions, please don't hesitate to give Alex Brgudac, Head of Partnerships a call on 1300 964 808, otherwise Prospa looks forward to helping brokers and their small business clients as we head to 30th June!

Grab Your Commercial Lending Masterclass Ticket Discount

Understand how to diversify your business into commercial lending, for all Industry Professionals!

This critical training and education day supports broker's businesses to expand product knowledge, by understanding the basic requirements of lenders playing in this space.

We have a limited number of discounted tickets available per state. The first 25 brokers (per each state) to register could save $110 on their ticket. To find out how to receive a limited discounted ticket email amy.dimech@vow.com.au for more information.

Ticket Name

Price

General Admissions (Discounted)

$160 $50* (limited - 25 tickets only per state)

General Admissions

$160

Non-Broker

$275

  • 6 Leading commercial lenders showcasing 'best practices' relating to commercial lending, imparting their knowledge and insight into developing opportunities within the commercial and equipment finance space.
  • Provision of 'exclusive' commercial lending templates to be utilised with any lender in the industry.
  • Exhibitors providing customised business lending solutions for your business.
  • Q&A sessions allowing for personalised and customised conversations with delegates.

Don't miss out, register for your respective capital city now.

Tuesday, 18th June 2019: Adelaide - Click here for more
Wednesday, 19th June 2019: Perth - Click here for more
Tuesday, 25th June 2019: Brisbane - Click here for more
Wednesday, 26th June 2019: Melbourne - Click here for more
Thursday, 27th June 2019: Sydney - Click here for more

*Ticket price available up until final day of registration or until capacity of 25 tickets per state are exhausted.

Eight Key Questions You Should Ask When Buying an Apartment for Investment Purposes

By Paul Bennion, Managing Director, DEPPRO

As we approach the start of the 2019/2020 financial year, many people throughout Australia will be considering buying an apartment for investment purposes.

Below are eight key questions and answers you should consider before buying an apartment.

1. What are the tax benefits associated with owning an apartment?

While there are many issues concerning the depreciation entitlements on properties, in most cases, strata style homes such as new apartments provide a higher rate of depreciation than houses - all being equal.

Buying a new apartment, for example, can provide a taxpayer with considerable depreciation benefits because of the significant tax benefits they offer through depreciation.

The tax benefits obtained through depreciation can be equivalent to 60% of the total purchase price of apartment. In some cases, these tax benefits can total $300,000 based on a purchase price of $500,000.

2. How do I obtain these tax depreciation benefits associated when buying an apartment?

You must engage the services of the tax depreciation company that is fully compliant with the Australian Tax Office requirements. Make sure they undertake an onsite inspection of your property when preparing their tax depreciation report and that they are a member of The Australian Institute of Quantity Surveyors (AIQS).

3. Should I buy an off the plan apartment?

Off the plan apartments can be a good investment in a rising market as you lock in the sale price into the future. If you are buying off the plan it is important to check the track record of the developer to determine if they deliver on what they promise.

4. What increases the most in value - apartments or houses?

The location of the property is the most important factor in determining its capital growth rather than size. Choose a property close to the beach, river or city centre as these locations have the higher than average capital growth due to the growing focus on lifestyle and convenience in the property market.

5. Which is easier to rent - an apartment or house?

If you are an investor, then apartments tend to be easier to rent because the majority of renters are young people who like to live near the city. A key consider, when renting any property is how much rent you charge and any property which has an excessive weekly rent will be difficult to lease. That is why you should use a property management company to lease your property as they will have up to date market knowledge on the rental market.

6. Will there be an oversupply of apartments?

In some inner city areas, there are signs of an oversupply of apartments. That is why it important to undertake as much research as possible before making a decision to buy an apartment.

In any real estate market, there is always the risk of an oversupply of properties regardless of the whether they are apartments of houses. You should always focus on the location of the property and buy a property which has a scarcity factor i.e. buying an apartment close to cafes and restaurants.

7. Are there any ownership differences in owning an apartment or house?

The main difference is that when you buy an apartment, there are areas of common ownership in the complex. This is controlled by the strata company which you will be a member. It may restrict what you can do with your apartment. On a simple level, you may have to get permission from the strata company to have an air conditioner installed in your apartment.

8. How many bedrooms do I need in an apartment?

The reality is that family sizes are getting smaller and many apartments have unused bedrooms. More people are living alone and that is why one bedroom, one bathroom apartments are becoming very popular. Before buying an apartment check with local property management companies to ascertain what type of apartments are most in demand by renters in the local area i.e. one bedroom, two bedroom or three bedroom apartments.

Why More Cuts to Interest Rates Are Needed

By Paul Bennion, Managing Director, DEPPRO

Last month I urged the RBA to start cutting interest rates and I am really pleased they have begun this process with the 0.25% cut to official interest rates on 4 June.

But we need even more interest rate cuts this year to help kick start the economy and the property market.

The urgent need for more interest rate cuts was highlighted on the 5 June with the release of the latest economic growth figures.

It shows that our economy grew by just 1.8%in the year to March which was the weakest since the GFC.

What is driving this low economic growth rate are falling house prices throughout Australia and the fact that people are more cautious about spending money due to this uncertainty in the real estate market.

Major Central Banks Overview

Central Banks

Current Interest Rate

Next Meeting

Last Change

Reserve Bank of Australia

1.250 %

7-2-2019 - 04:30

6-4-2019 - 04:30

Federal Reserve

2.500 %

6-19-2019 - 18:00

12-19-2018 - 19:00

Swiss National Bank

-0.750 %

6-13-2019 - 07:30

1-15-2015 - 09:30

European Central Bank

0.000 %

7-25-2019 - 11:45

3-10-2016 - 12:45

Bank of Japan

-0.100 %

6-20-2019 - 02:00

1-29-2016 - 03:00

Reserve Bank of New Zealand

1.500 %

6-25-2019 - 21:00

5-8-2019 - 02:00

Bank of Canada

1.750 %

7-10-2019 - 14:00

10-24-2018 - 14:00

Bank of England

0.750 %

6-20-2019 - 11:00

8-2-2018 - 11:00

The reality is that there are trillions of dollars tied in in real estate throughout Australia and any negativity in the property market has major ripple effects throughout the entire economy.

Back in 2008, the RBA responded very quickly to the GFC through a succession of interest cuts over a five month period to help kick start the economy.

Today, we need a similar response from the RBA with further interest rate cuts over the following months.

The reality is that official interest rates in Australia are still relatively high compared to other world economies with low economic growth rates.

For example, in Europe official interest rates are now at 0% while in the UK they are half that of Australia at 0.75% even though their unemployment rate is just 3.8% compared to 5.2% in Australia.

To help turn around our economy Government should be doing everything to assist the property sector as this is the bedrock of consumer confidence.

I am pleased APRA has further relaxed their lending rules for property investors but more needs to be down by the Government to encourage banks to lend money the housing sector.

Bank lending to the housing sector and in particular property investors is still restrictive as a result of the recent Royal Commission in the finance sector.

This lack of support by banks to the housing sector was underlined by the fact that not all banks passed on the latest interest rate cut in full to their customers.

There is no point in the RBA cutting interest rates if they are not fully passed on by the major banks.

The Government needs to make is very clear to the banking sector that any further cuts to interest rates must be fully passed to their customers.

Further cuts in interest rates will help restore confidence in the property market while at the same time making it more affordable for people to buy real estate.

More investors will enter the property investment market leading to new construction jobs being created to construct new housing developments.

They will also give a boost to the overall economy and job creation which in turn will be a positive for the property market.

Bluestone Commission Change

Over the next 6 weeks, starting from the 12th of June, Bluestone are campaigning their Crystal Blie product by waiving their risk fees for all loans with an LVR of 75% or below. During this time, they'll be making a change to their commission structure that will only affect the Crystal Blue product.

The change is as follows: -

Current

Commission

Crystal Blue

Upfront commission

Upfront: 0.70% upfront

Trail Commission

Trail: 0.15% trail

Change

Commission

Crystal Blue

Upfront commission

Upfront: 0.60% upfront

Trail Commission

Trail: 0.15% trail

There will be no option for the broker to choose an upfront only option, as per the attached schedule during these 6 weeks of the campaign. The campaign ends on the 31st of July 2019. If you have any questions in relation to this change, please give Royden D'Vaz, Head of Sales a call on M +61 408 868 844.