Vow Empower Improvements

Based on the feedback of Vow brokers, there have been a number of improvements added to the Vow Empower processes. Here is a summary of the main changes, any questions, please don't hesitate to contact your Macquarie BDM!

More welcome calls

Based on the positive feedback we've received from brokers and clients, we're expanding our initiative to call clients after settlement to make sure they're happy with their experience and they know how to navigate the online features of their account. The benefit of these calls is that your clients know what to expect from their new loan and how to get the most out of it.

If you'd like to communicate some of these messages to your clients, we've provided a helpful article below that you could send them.

Improvements to DocuSign

In response to your feedback, we've been working to improve the DocuSign experience and it now has a new look and feel, offering a more streamlined user experience. We've simplified the signing process, and introduced expandable tabs for lengthy documents to improve readability and navigation.

Keeping you informed

We're expanding our initiative to notify you when we learn your clients are planning to refinance so we can help support you in retaining them. We now require verbal instructions from one of the borrowers to begin the discharge process with our solicitors.

Group Lending - Product Spotlight Renew & Restart

Group Lending is currently seeing a lot of support for our various special offers under the Flexi Options product. With Owner-occupied rates starting at 3.69% and Investment rates starting at 3.89%, it is easy to see why.

However, we thought we would highlight the Renew and restart product range and how it has been designed to help you assist with not only your client's short term financing needs, but also their longer term requirements. With the specialist lending market one of the few areas in the mortgage industry expanding, it is important to be aware of all of the options available here. To follow are some fast facts to help you identify when the Group Lending Renew and Restart range may be able to assist:

  1. While the product range is funded by Pepper, it is not just a simple re-hash of the Pepper Retail product range.
  2. The pricing structure of the Renew and Restart range has been developed with direct feedback from Vow brokers. When considering a Near Prime or Specialist Lending solution, the feedback indicates that Vow brokers are looking for a solution for the short to medium term, the intentions to refinance these clients into a prime solution within a period of 1 - 3 years.
  3. As a consequence of this, we have developed a pricing structure which is designed to minimise the upfront costs of entry while making the on-going rate as competitive as possible.
  4. Therefore, when compared to Pepper retail (when Mortgage Risk Fees are payable for all LVR's), the Renew & Restart range may have a slightly higher interest rate, but charge no risk fees on the majority of LVR bands. (High LVR's still have MRF - these instances are highlighted on our rate sheet which is attached for your reference).
  5. An example of how this can keep money in your client's pocket is provided below, most importantly, this approach provides Vow with a point of difference against much of the specialist lending competition in the market place!
  6. The main thing to remember is that with Specialist Lending, you cannot just compare on interest rate, given loan terms are generally shorter, fees charged do have a substantial impact on the overall cost of the loan. Please bear this in mind when recommending a solution for your next client.

Interested to find out more, feel free to contact the team as below.

Name Title Phone Email
Craig Herden Vow Relationship Manager 0478 537 841 craig.herden@grouplending.com.au
Tony Wakim Office Based BDM 1800 737 448, press option 1 for `Scenarios'



Client looking to borrow $600,000 against a property worth $860,000. LVR just below 70%.

Unfortunately circumstances mean that the loan sits within the Specialist Lending segment.

The intention is to allow the customer to establish a good payment history and clear up their credit report. The intention to refinance in approximately 2 - 2.5 years.

Group Lending Product Solution:

Restart Full Doc Loan. Interest rate 6.59%, $15pm fee, upfront fee $495 (includes 1 standard valuation), legals approximately $440 plus disbursements. Mortgage Risk Fee $0

Pepper Retail Product Solution:

Pepper Advantage Full Doc. Interest rate 6.29%, $15pm fee, upfront fee $995 (includes 1 valuation), legals approximately $440 plus disbursements. Mortgage Risk Fee $6,000

Benefits for the scenario are highlighted in green and disadvantages in red.

Upfront fee saving for using Group Lending equates to $6,500, whereas the monthly payment (based on a 30 year P&I loan) the client makes with Group Lending is $118.06 more (assuming the risk fee is not added to the loan for Pepper retail).

Given the intention to refinance within 2 - 2.5 years, from a fee and interest perspective, the Group Lending Product is clearly cheaper for the customer. Depending on how you look at the scenario, Pepper retail would only be less expensive if refinancing was not possible within approximately the first 4 years.

This just highlights the need to look beyond just the rate that may be highlighted in Symmetry or Vow Net, and to consider the total cost to your client.

* Note the outcomes of examples do vary according to credit impairment and LVR.

Australian Financial Complaints Authority

ASIC welcomes the passage through Parliament of the Bill to establish the Australian Financial Complaints Authority (AFCA).

AFCA will be the culmination of more than 20 months of public consultation and inquiry, commencing with the review of the dispute resolution framework by an independent panel led by Melbourne Law School's Professor Ian Ramsay.

ASIC Deputy Chair Peter Kell said, "Fair, timely and effective dispute resolution is a cornerstone of the financial services consumer protection framework. The combination of firms' internal dispute resolution procedures and access to a free independent external scheme currently provides redress for many tens of thousands of Australians each year. Strengthening these dispute resolution requirements will help deliver higher standards and better outcomes in the financial services market."

The establishment of a single scheme for all financial services and superannuation complaints is a very positive development, building on the outcomes achieved over many years by the existing three schemes: the Financial Ombudsman Service (FOS), the Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal.

Higher monetary limits and compensation caps, including for primary production businesses, will give more consumers and small businesses access to a free and independent forum to resolve their complaints.

ASIC will work with Government and scheme stakeholders to ensure that the transition to the commencement of AFCA is as smooth as possible. In the interim, ASIC will retain direct oversight of the two ASIC-approved schemes - FOS and CIO - which will continue to provide high levels of service to consumers and firms. Separate arrangements are in place for the ongoing operation of the SCT to enable it to deal with existing complaints.

Important information about transition

  • AFCA will start accepting complaints no later than 1 November 2018
  • The operator of the scheme will be authorised by the Minister, and the scheme will be subject to ongoing oversight by ASIC.
  • In order to maintain access to external dispute resolution for consumers in the lead up to commencement of AFCA, ASIC will monitor member compliance with existing EDR scheme requirements as well as the effectiveness of scheme operations.
  • Members of each of CIO and FOS - including licensees and credit representatives - must continue to maintain their EDR membership through this period, including paying membership and other scheme fees in full as required. ASIC has asked the two schemes to report any failure of members to do so.
  • A memorandum of understanding between CIO and FOS will prevent members inappropriately moving between the schemes in the transition period.
  • ASIC will be consulting soon on updated Regulatory Guide 139 (REG 139), which will set out details of ASIC's oversight of AFCA. This will be finalised and published when AFCA commences operations.
  • ASIC will also publicly consult on new IDR standards and the mandatory IDR reporting requirements that are also contained in the AFCA Bill - but this consultation will not take place until afterAFCA commencement.
  • Current legislative IDR requirements for superannuation trustees and retirement savings account providers (including 90-day timeframes and requirements for written reasons) will continue to apply in their current form until ASIC consults on and then issues updated IDR policy (RG 165).

ING Updates

From Tuesday 11/4 we will be commencing a new campaign to a segment of our existing, non-home loan customers.

The purpose of the campaign is to increase awareness of our home loan offering amongst our existing customer base. As you are aware from previous direct campaigns, we want to remain transparent and provide you with the relevant campaign details upfront, so that you and your network are aware and can hold more informed conversations with the customer.

This campaign will be promoted via a combination of targeted EDM, our client site Log Out banner and Mobile App banner- it will be sent/visible to a select group of existing ING non-home loan customers.

Should any of your brokers make you aware that: a) their customer has received/seen the offer, b) ING was one of the recommended lenders they had been considering and c) the broker can evidence this via email trail etc - we will consider sharing the value by both honouring the offer to the customer and paying commission to the broker.

We encourage your brokers to contact their ING representative should they have any questions or concerns.

The details of the campaign are outlined below:

  • The campaign provides an incentive to apply for a home loan direct to the bank
  • A segment of existing ING non-home loan customers will receive an EDM or view the offer once signed in to ING Mobile App / Log Out banner, and targeted Social Media activity
  • The incentive is $1500 cash-back, paid to the customer post settlement
  • Available on applications submitted from 11/4/2018 - 30/9/2018 (must settle in 2018)
  • Reach- ~70k customers in April followed by a further volume in later months
  • Recipients list excludes existing ING customers with pipeline loan applications (not yet settled)- avoiding risk of sending / making the offer visible to a customer who has already submitted an application via a broker
  • Channel of choice- the offer is available for Direct home loan applications only and targets the customer segment that would not typically engage the services of a broker. The customer is primarily responsible for application submission, document upload and status tracking, with the assistance of our Home Loan Specialists.