Highest Market Share Recorded

The mortgage broker channel has recorded its highest ever market share result with brokers settling 60.1 per cent of all residential home loans during the July - September 2020 quarter, according to the latest data released by research group comparator, a CoreLogic business, and commissioned by the MFAA.

The September 2020 result is 5.2 percentage points higher than the equivalent 2019 quarter, 1.0 percentage point higher than the equivalent 2018 quarter, and 0.4 of a percentage point higher than the previous market share record of 59.7% set in March 2019.

The value of new settlements recorded in the September 2020 quarter is also the largest by dollar value ever observed, as leading aggregators settled $57.47 billion of new home loans. This represents an increase of $11.43 billion or 24.82% in the value of new lending when compared year-on-year to the $46.04 billion settled in September 2019.

MFAA CEO Mike Felton said the result demonstrates more than ever the critical role that brokers play in supporting their customers and the economy and the impact they have made at a time when they were needed most.

"This phenomenal market share result reflects the tireless support and assistance brokers have provided their customers to help them navigate the challenges posed by the COVID-19 pandemic and the first recession Australia has experienced in 29 years," Mr Felton said.

"It is also evidence of the ever-increasing trust and confidence that consumers are placing in mortgage brokers as our industry faces the imminent introduction of a Best Interest Duty and related reforms. We are confident that these reforms will continue to differentiate our channel and that our industry can look forward to further increases in market share in the years ahead.

"While I am always proud of the hard work and professionalism of everyone in our industry, the way brokers have overcome their own challenges and vulnerabilities this year, maintained their focus on their customer's needs, while achieving their highest market share result to date, has been nothing short of inspirational," Mr Felton said.

Source: MFAA

Suncorp Update

Suncorp will again be participating in the SME Guarantee Scheme for phase two. As you may already be aware, enhancements made to the second phase of the Scheme is expected to help more customers (whether or not directly impacted by COVID-19) to grow their businesses by offering greater flexibility, including accessing the loan for a broader range of business purposes.

It is recognised that brokers will once again play an invaluable role in presenting this opportunity to businesses and as such, Suncorp will continue to pay both upfront and trail commissions for the SME Support Loan product.

At a glance, SME Support Loan features include:

  • Secured or unsecured variable interest rate loan - reduced variable interest rates from 2.79% p.a. for secured loans, and 4.99% for unsecured loans.
  • Maximum loan term of 5 years - secured loans may be structured over a notional term of up to 25 years.
  • A maximum loan amount of up to $1 million for secured lending*, or $250,000 for unsecured lending, and minimum lending of $20,000.
  • No establishment or monthly account keeping fees (valuation fees are applicable).
  • Progressive draw available (with no offset facility allowed).
  • Additional payments allowed with no early payout fees applicable.

Eligibility:

  • Available to both new and existing businesses.
  • Registered Australian businesses with an ABN.
  • Annual turnover of less than $50 million.

Brokers are able to submit applications for the SME Support Loan as of 30 November 2020, and up until 30 June 2021.

Continued support measures for business customers impacted by COVID-19

The following financial assistance options are still available:

  • Deferral of principal and/or interest repayments on term loan facilities.
  • Conversion from the principal and interest repayments to interest-only repayments.
  • A loan term extension.
  • Deferral of instalments on equipment finance facilities.
  • Waiving merchant rental and the minimum monthly fee for up to 6 months.
  • Temporary overdraft to bridge Job Keeper Payment.

For any questions, please reach out 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.

Liberty Update

Please see below some of the latest features of Liberty's commercial product range:

  • Enterprise LVRs up to 70%
  • Redraw facilities for LeaseStream
  • Quick cash-flow solutions with Liberty Boost
  • Residential and Commercial SuperCredit LVRs up to 80%

Visit Liberty IQ to download our Introducer Guides or to track the progress of your applications.

To discuss a scenario, please reach out 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.

TMBL Update

Please see the below update from Teachers Mutual Bank Limited:

TMBL's Lender's Mortgage Insurer, Genworth, have updated their Lenders Mortgage Insurance Premium rates effective 1 December 2020.

As a result, a revised Genworth LMI Premium calculator will be available from 1 December 2020 on their TMBL Broker Portal under Tools and calculators.

Please note, these changes are applicable across all their divisions being;

  • Firefighters Mutual Bank
  • Health Professionals Bank
  • Teachers Mutual Bank
  • UniBank

TMBL Premium Calculator

Bluestone Update

Please see the below updates from Bluestone:

  • Bluestone now accepts rental income from Holiday letting properties, such as Airbnb and commercial properties. This income will be shaded at 50% and then taxed appropriately.
  • They also now accept interest and dividend income on investments held for a minimum of 24 months for Prime, and a minimum of 12 months for all other products.
  • The shading on residential rental income has been adjusted from 60% to 70%. (For more details on changes on their credit policy, please click HERE)
  • With Christmas and New Year fast approaching, there will be no cut-off dates. Bluestone's lending team will continue to process applications, and their BDMs will also be available to support you over the holiday period, except
    on public holidays.

To discuss scenarios, please reach out 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.