ASIC set to shadow shop brokers

As foreshadowed in our PD Days and Compliance Workshops last year, an article in The Australian this week confirmed that ASIC is set to shadow shop brokers across the country. Excerpt below:

"As part of our ongoing review of mortgage broking practices, we are undertaking consumer and broker research to better understand the home loan purchase process," ASIC senior executive Michael Saadat told The Australian.

He said the intention was to find out which factors, aside from commissions, led to people being sold different types of mortgages and whether there was any scope for improved behaviour.

ASIC wants to better understand whether broker advice results in good outcomes and whether borrowers are making an informed choice and being sold products that meet their needs. To achieve this, they have tasked hundreds of borrowers from a range of backgrounds and with a range of incomes to record their experiences at mortgage brokers over the coming months.

"While broker remuneration practices may have an impact on home loan choice, ASIC recognises that a range of other factors influence which home loan products are purchased, and that the purchase experience may vary across purchase channels -- such as through a broker, compared to directly from a lender," Mr Saadat said.

There is no need to be alarmed about the exercise as long as you are following the right processes. If you're unsure about any aspects of this, please contact the compliance team.

Vow commission dates

See below for a list of Vow commission dates for 2018.

Month Mid-Month Run (YBR Group Lending, Vow Home Loans, Macquarie and Vow Leasing) Main Monthly Commission run
January 15th January 2018 25th January 2018
February 15th February 2018 23rd February 2018
March 15th March 2018 23rd March 2018
April 13th April 2018 24th April 2018
May 15th May 2018 25th May 2018
June 15th June 2018 25th June 2018
July 13th July 2018 25th July 2018
August 15th August 2018 24th August 2018
September 14th September 2018 25th September 2018
October 15th October 2018 25th October 2018
November 15th November 2018 23rd November 2018
December 14th December 2018 21st December 2018

Vow home loans: Are you missing out on specialist options?

Can you afford to turn your back on the fastest growing lending market segment in 2018? - If not, you might want to read on...

While the overall lending market has contracted due to regulatory changes imposed on the banks, there has been a shift in how deals are allocated across the market. Deals that were considered "prime" in 2016 or early 2017 are now no longer fitting the risk appetite of the major or second-tier lenders.

If we were to sample 10 brokers during 2017 and asked if they do specialist lending, at best 5 would say they do, the rest would say that they don't generally do "that type" of business... The perception of specialist lending perhaps being for those with previous credit issues, short term self-employed, or some other "issues".

The reality is vastly different. Yes, specialist lenders do cater for clients with the circumstances mentioned, however, they are also filling the void for loans that were "previously prime" but now cannot find a home within the established system. Here are some interesting facts worth bearing in mind, when your next client that misses the cut with a traditional bank:

1. Aren't the rates really high? Specialist lenders price for risk, so yes, if someone is borrowing at a high LVR with a history of credit problems, yes the rates will be higher. But they also offer prime pricing which is largely comparable to what is on offer elsewhere.

2. What about the fees? With the Renew/Restart range, we have access to the lowest entry costs in the market place for specialist lending solutions. For loans with little or no credit impairment, the entry costs are largely in line with market.

3. So, what's different with the assessment? First of all, with for example the Renew/Restart range via Vow Home Loans, all loans are assessed by a real person. Secondly, while there is a strong focus on living expenses, we are able to consider applications with existing mortgages at actual rate and repayments. This means that for property investors with existing commitments, borrowing capacity via Vow is often much higher than with the traditional banking sector.

4. Yeah, but how can I keep track of all of this, the rates and fees are overwhelming? The good news is that you don't need to keep track of every single rate and fee ... that's what the team is here for! All you need to do is know that there are alternatives on offer when plan A does not work out for your client.

Vow Home Loans not only have two great product ranges which help cater for the loans that were "previously prime", we also offer great prime solutions with rates starting at 3.74% for Owner-occupied and 3.89% for Investment! If you want to take the first step, reach out to the guys below - this will be a big step towards a mutually successful 2018!

Name Role Phone Email
Craig Herden Partnership Manager - Vow

0478 537 841
Tony Wakim Head Office Based BDM

1800 737 448, press option 1 for 'scenarios'

ANZ Commercial: Open for business

ANZ has recently announced changes to its ANZ Commercial Property Investment Appetite and says 'we are open for business.'

ANZ's key focus is on the business owners segment and supporting our brokers/customers who want to start, run and grow their business. We understand that property investment is a key way Australian businesses build their wealth and that we need to have a clear message to the market about our appetite and proposition.

After listening to our bankers, customers and brokers, all commercial property investment lending is now permitted, subject to meeting Property Lending Credit Requirements.

Property Lending Credit Guidelines: (Please note the below guidelines are indicative and subject to change. Each transaction will be judged on its merits)

1. LVR 65% - LVR maybe lower for specialised properties.

2. ICR 2x

3. WALT 3 years plus Preferred

4. Multiple Tenant's Preferred.

Any questions, please contact your ANZ Business Bank Relationship Manager or Jim Ahern, Senior Commercial Broker Manager, Business and Commercial Banking, on 03 8654 3030 or 0435 961 196.

New Suncorp BDM for Victoria

To support their growth in Victoria, Suncorp has recently made changes to the Small Business BDM team to better support your business. Billy Stewart has been appointed as your dedicated SME BDM to assist with all your small business needs.

Billy has been with Suncorp since 2013 and brings over 18 years finance industry experience including retail lending, business relationship management, leadership and commercial specialist lending, which involved providing a diverse range of commercial lending solutions to third party intermediaries.

Billy is excited about the opportunity to help Suncorp's Business Partners grow and take their business to the next level by showing them how easy Commercial and Small Business lending is and removing the fear around its complexity.

Billy Stewart

Business Development Manager

Mob: 0477 389 517

"Cinderella" property markets set to shine in 2018

By Paul Bennion, Managing Director, DEPPRO

Property markets that have been overshowed by the real estate boom in Melbourne and Sydney should begin to shine during 2018.These "Cinderella" property markets include the Gold Coast, Brisbane, Adelaide, Darwin and Perth.

The national property market does not work in a uniform fashion and an upswing in property values historically occurs in smaller markets, following a boom in Sydney and Melbourne. The charge will be led by the Gold Coast, where currently many suburbs are experiencing near zero rental vacancy rates.

This rental famine on the Gold Coast is now feeding into higher property prices with the median price of a home on the Gold Coast rising by 8% last year.

The supply of new properties in the Gold Coast has been declining over the past five years due to slump on housing construction. At the same time, residential demand for housing is now rising due to increasing migration to the Gold Coast which is in addition to a major recovery in the tourism sector.

The tourism sector will be given a further major international boost during 2018 when the Gold Coasts host the Commonwealth Games that will attract competitors from 70 countries throughout the world. This improving Gold Coast market should cause a positive ripple effect into the Brisbane market where the median house price is currently around half that of Sydney.

Adelaide will also benefit from this affordability factor with a growing number of property investors from Melbourne and Sydney buying properties in the city because they are very competitively priced. The Darwin market is also on the road to recovery due to a decline in new housing construction and rising demand. The city currently is delivering investors some of the highest rental returns in Australia at over 5%.

Perth is also a market to watch during 2018. Property prices in this city of over 2 million residents have declined since the last mining boom. However, there are signs that the State economy is now recovering with 40,000 new jobs being created in Western Australia over the past year.

The number of vacant rental properties in the city has also declined by more than 2,000 over the past year and a major slow down in new housing construction has meant the supply of housing is beginning to tighten in Perth.

DEPPRO operates in all of the major capital cites in Australia already during the last month we have seen an upswing in the number of tax depreciation reports we are undertaking for clients in Perth, Darwin, Adelaide, the Gold Coast as well as part of Brisbane.

These astute investors are now buying property in the expectation of capital growth moving forward and using the generous tax depreciation benefits associated with property investment to help fund their acquisitions.

Click here to complete the details to ensure your client receives a higher return on their cashflow.