New protections for off-the-plan purchasers

In its first substantive decision on recently-introduced protections afforded to purchasers of off-the-plan developments, the Supreme Court of NSW has provided valuable guidance on when, and on what terms, it will permit rescission of an

off-the-plan contract where a sunset date has passed.

This decision sends a strong signal to developers that the Supreme Court will hesitate to permit rescission of off-the-plan contracts under section 66ZL, even where the vendor's conduct cannot be said to be in bad faith or unreasonable.

Read the complete article

Group Lending Update

We have a fair bit happening in the Group Lending business this week. Here are some updates for you.

Smart Pro Credit Policy changes.

Our Smart Pro range has been improved with some greater flexibility with regard acceptance of Government payments.

We accept government payments for:

  • Disability Pensions - exempt from asset/income test, i.e. Permanent Blindness
  • Widow Pensions
  • Foster Care Payments
  • Supplement Payments (related to certain pensions)

Government payments income needs to be verified by 6 months of consecutive income credits with:

  • The most recent bank statement/ internet banking transaction listing no older than 60 days as at the application submission date. The narrative of the direct credit must clearly identify that it has been paid by the government authority/government agency.
  • A letter from the government agency making the payment is no older than 60 days as at the application submission date, detailing the customer's name and the income amounts received over the past 6 months.

Flexi Options - fixed rates offers to compliment sharp variable rates for investment.

For some time now, Group Lending has had some sharp rates on offer for both Investors and Owner Occupiers. If you are not familiar with these the rate sheet can be found (Here) with the special offers detailed on the front page. We are excited to announce some competitive fixed rates now on offer to compliment the variable investment offerings.

You can now team up the following 2 year fixed rates with our competitive variable investment rates. These are some of the sharpest variable/fixed rate combinations in the market place. What's more, the Flexi Options also offers the ultimate flexibility on fixed rates, with a fully operational 100% offset account available against both variable and fixed rates with a monthly fee of only $10!

Investment P&I

2 year fixed rate - 4.19% p.a. available up to 90% LVR.

Variable - 3.89% p.a. available up to 80% LVR.

Investment Interest Only

2 year fixed rate - 4.37% p.a. available up to 80% LVR.

Variable - 4.52% p.a. available up to 80% LVR.

Got you interested? Have a chat with the team to get your next application underway!

Names Role Phone Email
Craig Herden Partnership Manager - Vow 0478 537 841 Craig.herden@grouplending.com.au
Tony Wakim Head Office Based BDM 1800 737 448, press option 1 for `Scenarios' Tony.wakim@grouplending.com.au

Changes coming to the Australian property market

By Paul Bennion, Managing Director, DEPPRO

The property market and finance sector that supports it, have traditionally being influenced by important social changes in our society.

For example, the huge increase in the number of women employed in the workforce and especially in professional jobs over recent years, has increased the capacity of more individuals and families to own a home or invest in property.

Another major social change that will also have a major impact on the property sector is the increasing life expectancy of Australians.

Life expectancy for a male in Australia is now 80.4 years and 84.6 years. A century ago, life expectancy for males was 55 years and 58 years for females.

The fact that more people are living longer, means that people will generally work longer to support their extended retirement years.

It is a significant fact, for example, that for the first time the number of Australians living to at least 100 years of age topped 4,000 for the first-time last year.

Location of Centenarians

VIC 1,245
NSW 1,213
QLD 789
SA 416
WA 255
TAS 69
NT 8
ACT 79

Source ABS Australian Demographic Statistics 2018

The property sector will have to respond to this major social change moving forward by extending age based lending criteria and allowing more mature aged people to purchase investment properties to help fund their retirement.

DEPPRO is already seeing the impact of this major social change being reflected in the age of clients who employ us to undertake tax depreciation schedules for their investment properties.

Fifteen years ago, a large proportion of DEPPRO's client base were aged in their thirties and forties. In contrast today, we have a growing number of clients in their fifties and even some in their sixties.

This ageing of the property investor profile in Australia is set to continue as Government policies will evolve further to encourage more mature people to work longer in life in order to reduce the financial pressure of people accessing the Government funded pension.

At the same time, more younger Australians will look to invest in property as the reality is that superannuation savings are simply not enough to see through most people in retirement - which for some people may now be more than 30 years.

It has been recently estimated that an average Australian wage earner would need to save up to 20% of their annual income and put it into superannuation for 45 years in order to achieve a comfortable retirement.

In contrast, investing in property has been proven to be a secure long-term method of creating personal wealth. Investing in property also gives property investors generous tax benefits that include tax deprecation which can alone deliver thousands of dollars in tax benefits each year for an average property investor.

Click the link below and complete the details to ensure your client receives a higher return on their cashflow.
deppro.com.au

ABCD Commercial Launch

With CommBank, it's as simple as ABCD Commercial

Commbank is launching an efficient process that will help you provide commecial finace to your customers.

A better experience for you and your customers

ABCD Commercial allows eligible customers to access a more efficient process for commercial lending from $150,000 to less than $1 million when submitted through a CommBank accredited commercial or asset finance broker. It's suitable for customers looking to purchase or expand an existing business or re-finance existing debts.


The new ABCD Commercial application process is effective from today.

To submit an application or to find out more about ABCD Commercial speak to your CommBank Business Development Executive or visit commbank.com.au/ABCDcommercial

ME changes interest rates

ME has increased some of its home loan interest rates.

ME announced to the market an increase to the variable home loan reference rate for existing owner-occupier principal-and-interest borrowers of 0.06% p.a., effective Thursday 19 April 2018. ME will also increase variable rates by 0.11% for existing investor principal-and-interest borrowers and by 0.16% for existing interest-only borrowers.

This has not been an easy decision but in order to ensure ME continues to grow and provide a genuine long-term banking alternative ME need to maintain the right balance between rising costs, customers and their industry super fund shareholders and their members.

Importantly, ME's standard variable home loan for owner-occupier principal-and-interest borrowers with LVR 80% or less is still lower than the major banks as it has been since ME became a bank in 2001, and ME continues to offer some of the highest deposit rates in the market.