Banks follow ANZ lead on interest-only loans… Surge in lending worries top exec... Aggregator announces insurance partnership...
NAB joins others on interest-only loans
National Australia Bank Ltd., the country's No.4 lender by market value, on Monday said it would raise variable mortgage rates on interest-only loans by 29 basis points, according to a Reuters article.
NAB follows rivals Australia and New Zealand Banking Group Ltd and Commonwealth Bank of Australia that raised variable rates on loans for homes bought for investment purposes by 27 basis points last week.
The Australian Prudential Regulatory Authority (APRA) has asked banks to keep annual growth in investment home loans to below 10 percent in an attempt to cool red-hot property prices in Sydney and Melbourne.
For new loans, NAB's interest-only rate changes will be effective Aug. 10, while the change for existing interest only variable rate loans will be effective Sept. 10.
Surge in lending worries top exec
A surge in lending to property investors has created significant uncertainty, according to Aussie Home Loans chief executive James Symond, who recently announced that Australia’s largest mortgage broker had posted a record $20 billion in home settlements for the 12 months to the end of June, according to an article from the Australian.
“I’m not sure that anyone quite knows what the right solution is to curb investor growth, and what the best move in this marketplace is in these unprecedented times, but time will certainly tell,” Symond said.
Aussie Home Loans reported it had a record $1.98bn in loan settlements in June, bringing its loan book to about $70bn. But pressure from the Australian Prudential Regulatory Authority, which has flagged tougher funding rules for banks, would have a muted effect on Aussie, majority-owned by the Commonwealth Bank of Australia.
“Investor flows are about 30 per cent (of our lending), far less than other brokers which lend between 40 per cent and 50 per cent to investors,” Symond said.
Aggregator announces insurance partnership
National aggregator eChoice has announced a partnership with leading risk insurance specialist, ALI Group, to incorporate mortgage protection into their core service offering for brokers and borrowers.
General Manager of products and services for eChoice, Kon Shizas, says this latest partnership will contribute significantly to the company’s progressive customer service platform for brokers, enabling them to easily diversify their business.
“Being able to offer ALI Group’s mortgage protection products, combined with their BDM, marketing and systems support allows our brokers to protect a broad demographic of borrowers, while diversifying their income stream. It is another key stage in the development of a recognised industry best practice model, whilst continuing to exercise our duty of care,” he said.
“Loan protection has always been an important element to consider for a growing number of astute borrowers, so the formalisation of this partnership with ALI will allow eChoice brokers to offer mortgage protection as an essential part of the application process.”
National Australia Bank Ltd., the country's No.4 lender by market value, on Monday said it would raise variable mortgage rates on interest-only loans by 29 basis points, according to a Reuters article.
NAB follows rivals Australia and New Zealand Banking Group Ltd and Commonwealth Bank of Australia that raised variable rates on loans for homes bought for investment purposes by 27 basis points last week.
The Australian Prudential Regulatory Authority (APRA) has asked banks to keep annual growth in investment home loans to below 10 percent in an attempt to cool red-hot property prices in Sydney and Melbourne.
For new loans, NAB's interest-only rate changes will be effective Aug. 10, while the change for existing interest only variable rate loans will be effective Sept. 10.
Surge in lending worries top exec
A surge in lending to property investors has created significant uncertainty, according to Aussie Home Loans chief executive James Symond, who recently announced that Australia’s largest mortgage broker had posted a record $20 billion in home settlements for the 12 months to the end of June, according to an article from the Australian.
“I’m not sure that anyone quite knows what the right solution is to curb investor growth, and what the best move in this marketplace is in these unprecedented times, but time will certainly tell,” Symond said.
Aussie Home Loans reported it had a record $1.98bn in loan settlements in June, bringing its loan book to about $70bn. But pressure from the Australian Prudential Regulatory Authority, which has flagged tougher funding rules for banks, would have a muted effect on Aussie, majority-owned by the Commonwealth Bank of Australia.
“Investor flows are about 30 per cent (of our lending), far less than other brokers which lend between 40 per cent and 50 per cent to investors,” Symond said.
Aggregator announces insurance partnership
National aggregator eChoice has announced a partnership with leading risk insurance specialist, ALI Group, to incorporate mortgage protection into their core service offering for brokers and borrowers.
General Manager of products and services for eChoice, Kon Shizas, says this latest partnership will contribute significantly to the company’s progressive customer service platform for brokers, enabling them to easily diversify their business.
“Being able to offer ALI Group’s mortgage protection products, combined with their BDM, marketing and systems support allows our brokers to protect a broad demographic of borrowers, while diversifying their income stream. It is another key stage in the development of a recognised industry best practice model, whilst continuing to exercise our duty of care,” he said.
“Loan protection has always been an important element to consider for a growing number of astute borrowers, so the formalisation of this partnership with ALI will allow eChoice brokers to offer mortgage protection as an essential part of the application process.”
