Vow Voice 4th October 2019

Resi is pleased to announce the new Agility Quick start product. This product is for First Home Buyers and will allow for 95% LVR PLUS LMI (up to 98% in total LVR)

Key Features:

• 100% Redraw offset
• No annual or monthly fees
• Non-Genuine savings
• FHB Purchase only
• Max Loan size of $1,150,000
• No Application fees

For all fact sheets, rates and product information please visit the Vow Financial Intranet Or please contact your State BDM:

Source: The Adviser

A big four bank has announced changes to the way it pays upfront commissions to mortgage brokers.

Westpac Group has announced that it will remove the claim process for upfront commissions paid on post-settlement drawdowns on broker-originated home loans.

For all subsequent upfront commissions payable from 1 January 2020, brokers and third-party introducers will automatically receive remuneration.

Westpac revealed that subsequent upfront commission will remain payable for each eligible home loan following the 12-month anniversary of the loan settlement.

"This change delivers on our commitment to continue to review and improve the broker commission model," Westpac stated.

Westpac's announcement comes amid calls from broking industry stakeholders for more equitable remuneration arrangements.

Last month, it was noted that the impact of contrasting remuneration policies adopted by lenders off the back of the Combined Industry Forum's move to limit the upfront commission paid to brokers to the amount drawn down by borrowers (net of offset).

Read more at The Adviser

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ALI Group, leading provider of loan and mortgage protection to Australian home and property buyers have launched their spring campaign.

From 1 October 2019 to 31 December 2019, clients who take out a Loan Protection Plan policy with the assistance of their mortgage broker will receive a refund of two months' premium on the 12-month anniversary of their policy.

The campaign's aim is to return the hard-earned money of broker clients, as a reward for making the important decision to protect themselves. ALI Group hope that the cashback offer can be a helping hand, especially for First Home Buyers, who can find it particularly tough during the first year of paying a new mortgage.

First Home Buyers make up nearly 50% of ALI Group's new policyholders and are a group who often look to mortgage brokers as the pathway to obtaining their dream of home ownership.

Huy Truong, ALI Group CEO says, "mortgage brokers are in an important position when it comes to their clients. The younger generations and specifically the First Home Buyer segment are not likely to seek advice from a financial planner".

Truong notes, in an industry where there is an overwhelming amount of information which doesn't always speak to the financially inexperienced, a broker could be the only guiding hand available to see them through the process.

"Taking out a large debt like a mortgage for the first time is daunting for anyone. In fact, there is so much going through a FHB's mind, it's easy to forget some of the important considerations like if they were to get seriously ill, lose their job or even pass away, how will the mortgage be serviced? Brokers are face-to-face with their clients and are in the best position to raise these necessary questions", says Truong.

Authorised brokers of ALI Group's Loan Protection Plan will be able to access a range of campaign information and material, created to further support brokers in their protection discussions with clients. Simply login to your Broker Portal or you can reach out directly to your local and dedicated ALI BDM.

If you would like to learn more about ALI Group, you can visit their website here: https://www.aligroup.com.au

We have been informed that all members of the FBAA received an email yesterday (last week) informing all their members that they were required (compulsory) to complete an online course relating to Financial Abuse Awareness. The MFAA will follow shortly with a very similar communication.

This requirement comes off the back of the implementation of the banking code of practice, and Vow are supportive of this initiative.

We have contacted both the FBAA and the MFAA to better understand the requirements and they have confirmed that the training they have provided has been sanctioned by the ABA, MFAA and FBAA. It is a course that the industry has cooperatively agreed is appropriate as a result of the concerns that were raised as part of the royal commission.

We understand that this course will be recognized by the funders (ABA), regulators and the associations (MFAA/FBAA), meaning you will not be asked to complete multiple versions of the same training.

What should you do?

- When you receive a communication from the MFAA or FBAA please take 30 mins to complete the training as provided;
- Lodge an external CPD claim on Vow Professional so we can allocate the CPD to your registers while ensuring we have a record of your certificate on file

Click here for the FBAA/AMC course now.