Latest Updates from ANZ

1. Valid from 1 July 2020, changes to Open Banking will give consumers greater access and control of their financial data

What is it?

Open Banking enables consumers to access and share their financial data securely and consistently with the Australian Competition and Consumer Commission (ACCC) accredited organisations, known as Accredited Data Recipients.

This capability to share data will extend to other sectors like utilities and telecommunications. We anticipate that this will create a more portable data environment and increase competition.

How will this change impact you?

While no immediate impact on the broker industry is expected, this may change over time as more organisations choose to become accredited data recipients and more products and services that leverage a customer's financial data become available.

Banking products available through Open Banking

In July 2019, ANZ made the products that it currently offers openly to the market, available upon request, using Application Programming Interfaces (APIs).

ANZ customers will now be able to share their financial data on specific banking products with Accredited Data Recipients such as:

  • Credit Cards
  • Debit Cards
  • Deposit (Savings) Accounts
  • Transaction Accounts

The above applies if the account is open, available online, and they are the sole account holder.

How Open Banking works

To share their financial data using Open Banking, customers must initiate a data-sharing arrangement using the Accredited Data Recipient's app or website and authenticate their identity with their bank. This will allow the Accredited Data Recipient to request the customer's financial data from the bank, in line with the arrangement the customer has agreed to. This customer can stop this data sharing arrangement at any time.

There are several measures in place to ensure data is shared securely under Open Banking. To participate in Open Banking, all Accredited Data Recipients must adhere to an ongoing stringent set of rules and standards to be accredited by the ACCC.

2. Changes to ANZ'a COVID-19 Assistance Package

Since the original announcement of the COVID-19 assistance offer in March 2020, ANZ has provided repayment deferrals on more than 100,000 home, personal, small business and commercial accounts.

ANZ has already begun contacting each of its impacted customers to understand their ability to start repaying their loans.

For customers who continue to face financial difficulty due to COVID-19, ANZ will work with them to see what additional assistance ANZ can provide, such as restructuring their loans. In some circumstances, ANZ will give an extension to loan repayment deferrals of up to four months.

Customers on existing loan repayment deferrals who can resume making regular repayments after their current deferral agreement will transition then.

What do you need to be aware of?

  • ANZ is extending its COVID-19 Assistance offer for eligible customers for up to four months (10 months total).
  • The four-month extension of the deferral period will not be automatic, and the bank will work with customers to help them identify the most suitable option for them if they're seeking further assistance.
  • The main goal is to assist customers who can begin making repayments to do so as soon as possible.

Resi Essentials is Coming!

RESI Essentials product offers a range of solutions for your clients. Form Prime, Near Prime to Alt Doc, we have an inhouse solution!

With a brand new streamlined and digital application process, applying has never been so easy. No more 25-page fact find and privacy, no more product annexure and no more ApplyOnline! The Essentials rates are starting from 2.81% for Prime, 3.7% for Near Prime and 3.6% for Alt Doc.

Leading up to the product launch on the 20th of July, we are hosting webinars to go through the product in detail! Make sure you visit your L&D page and register for our Webinar.

Banking Code of Practice

The Banking Code of Practice (BCOP) online training is a mandatory industry requirement for brokers and is also a requirement of most lenders that subscribe to the BCOP.

How do I complete the course?

  • MFAA Members are to complete it via the MFAA learning portal - click HERE. You will require your MFAA Membership Number.
  • FBAA Members are to achieve it via the training Provider AAMC - click HERE.

How much does it cost?

The Banking Code of Practice (BCOP) Course is free of charge.

When do I need to complete the BCOP Course by?

  • MFAA members - by 30 September 2020.
  • FBAA members - by 30 September 2020.

What if I have already completed the BCOP Course?

Lodge a CPD Claim within the Professional Platform with 'Banking Code of Practice' in the name field on the CPD form and upload the certificate of completion as your evidence.

Do I earn CPD for this course?

  • MFAA - 1 CPD hour
  • FBAA - 0.50 CPD hour

What if I have previously Lodged a CPD Claim for the BCOP online course?

There is no need to lodge again. Send an email to LandD@vow.com.au and let us know when you submitted it (e.g. in December 2019 etc.) we will obtain the information from your CPD History.

Latest LMI Offer from St. George

One of the biggest hurdles for first home buyers to overcome is the time it takes to save for a deposit.

To address this, St George is introducing a First Home Buyer Lenders Mortgage Insurance (LMI) Offer. Effective Monday 13 July 2020, the LMI will be reduced to only $1.00 for eligible first home buyers with a Loan to Value Ratio (LVR#) of up to 85%. By lowering the cost of LMI during the application stage, you can now help your clients get their first home sooner.

It's important to note that this offer is not an LMI waiver and your clients will be charged $1.00 for LMI, which will reflect in their Loan Offer Documents.

Watch this video for further details and features of the LMI Offer.

What is the eligibility criteria?

  • Applications must be for a first home loan for a first property (for joint applications, only one applicant must be a first home buyer).
  • Loans with LVR# up to 85% at the time of formal approval.
  • Owner Occupier with Principal & Interest repayment only.
  • Maximum loan size of $850,000.
  • Available for applications submitted from Monday 13 July 2020.
  • Only one property to be financed per application.

What loans are not eligible?

  • Owner Occupier with Interest Only repayments.
  • All Residential Investment Home Loans.
  • Portfolio Loans.
  • Construction Loans.
  • Offer not available in conjunction with the Family Pledge option.
  • Residential lending originated under family or company trusts.
  • Switches and internal refinances of home loans within the Westpac Group which include St.George, Bank of Melbourne, Westpac, BankSA and RAMS.

The important details:

  • The First Home Buyer LMI Offer is available on eligible home loan applications from Monday 13 July 2020 and the offer can be withdrawn or varied at any time.
  • LMI of $1.00 will incur. Clients must adhere to LMI obligations during the loan agreement. The LMI Fact Sheet will also be issued to the customer along with the Loan Offer Documents.
  • Clients are not required to be receiving the First Home Owner Grant or government concessions to be eligible for the First Home Buyer LMI Offer.
  • The First Home Buyer Flag must be selected within ApplyOnline and notes section to include instructions to apply First Home Buyer LMI Offer. For more information, refer to the training pack on the secure portal.
  • Available with Basic Home Loans or Advantage Package1 Home Loans, Fixed or Variable Rate ($395 annual package fee applies on Advantage Package1 Home Loans).
  • This offer does not have an income cap for eligible applicants.

For full details including eligibility and the process, refer to the broker training pack on the secure portal or download the FAQs.

2.69% p.a. - New Basic Home Loan2 Promotional Rate for Owner Occupiers with Principal & Interest repayments. Rate includes 1.29% discount off the Basic Home Loan Rate. LVR# above 80%. Find out more

For further information, please visit the broker website or speak to your BDM.

*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.

Expanded Loan Deferral from Banks

The Australian Banking Association (ABA) and the major banks have confirmed that they are implementing a new phase of support for customers impacted by the COVID-19 pandemic.

While many of the 800,000 bank customers who had deferred their repayments have already begun repaying their loans following an initial three-month hiatus, many more will look to do so at the end of their six-month deferral period.

Customers with reduced incomes and ongoing financial difficulty due to COVID-19 will be contacted by their banks and, if they cannot return to repayments or restructure their loan (for example by extending the length of the loan or converting to interest-only repayment for a period of time) to support their current financial situation, they may be able to extend their repayment deferral by another four months (ending no later than 31 March 2021).

ANZ - which has provided repayment deferrals on more than 100,000 home, personal, small business and commercial accounts since March 2020 - noted that customers on existing loan repayment deferrals who have not been financially impacted by COVID-19 will be required to begin making normal repayments at the conclusion of their six-month deferral agreement.

CBA CEO Matt Comyn also commented, stating: "We are committed to continuing our industry-leading support for customers and businesses to help them get back on their feet and inject vital financial stimulus into the Australian economy."

To read more on the topic, please click here.

2020 Industry Masterclasses

Returning for the 3rd year in a row but coming to you digitally across Australia is the Industry Commercial Masterclass, journey out of COVID-19 and into a new world edition.

Do not miss out this jam-packed week of short but to the point, Commercial Lending sessions MC'd by Peter Switzer.

All sessions are FREE and are welcome to everyone, including FBAA members and non-members.

Click here to see the full schedule and register now!