Banks are paying home loan borrowers for their business!

The Australian banking environment has changed substantially over recent years.  There has been an unarguable tightening in credit, which became even more restrictive following the Banking Royal Commission, along with a potentially related slowdown of housing lending during 2019.

As a result, many lenders have found that their sales activity and lending portfolio growth has subsided – meaning that the competition for new good quality loan opportunities is as fierce as we have seen in recent times. Continue reading Banks are paying home loan borrowers for their business!

Your Credit Score – What you need to know

Over the last year or so in Australia there have been changes to credit reporting  known as Comprehensive Credit Reporting, and these changes could have impacts to your Credit Score.

Continue reading Your Credit Score – What you need to know

Top ways to cut your expenses and increase savings

Is the key to saving a home deposit as simple as giving up smashed avo toast for breakfast? Well not quite, but spending less does make a difference.

On top of a budget, a savings plan and strategies such as a high-interest savings account, an effective way to save is to reduce or eliminate expenses. Continue reading Top ways to cut your expenses and increase savings

Home Loan Tip: How to increase your borrowing capacity

There is no doubt that Banks and other Lenders within the Australian home loan market  have tightened their lending standards over the last 12 months.  This tightening is having a significant impact on the borrowing capacity of many Australians looking to obtain a Home Loan.

However the good news is that with some focus and financial management you can still present a strong case on your borrowing capacity to the Banks.

The below provides some tips on how to maximise your borrowing capacity. Continue reading Home Loan Tip: How to increase your borrowing capacity

Why you should consider a Home Loan Health Check!

Within the home loan industry there are numerous offers to provide a review of your current loans, whether they call it a “Home Loan Health Check”, “Loan Review”, or similar.

What does this mean? Continue reading Why you should consider a Home Loan Health Check!

Interest Only Loans – Time Bomb or Hiccup?

Over recent months it has been very noticeable that banks have been increasing interest rates and tightening credit policy for interest only loans, regardless of whether they are for Investment or Owner Occupation.

The appetite for interest only lending has diminished significantly and through pricing and policy banks are encouraging borrowers to consider principal and interest repayment options. Continue reading Interest Only Loans – Time Bomb or Hiccup?

Investment Loans – Banks tighten loan criteria

In mid 2015 we highlighted through this Blog that Banks were tightening credit policy in regards to investment lending and that had resulted in tightening of lending criteria.

This was initially due to communications from APRA to all Approved Deposit-taking Institutions (ADI’s) about expectations of a range of measures to reinforce sound residential mortgage lending practices.   An ADI is basically a bank, credit union or building society.  APRA’s expectation was that ADI’s maintain growth in investment lending portfolios to below 10%. Those communications quickly lead to Bank’s: Continue reading Investment Loans – Banks tighten loan criteria

Does 1% p.a. make a difference?

As a general statement Australians tend to be lethargic in reviewing their Home Loan once it has settled.  It generally takes another ‘trigger’ event, such as changing homes or renovating before we consider if there is a better loan option available.

Does this mean that many Australians are paying more interest on their home loans than they need to?  I would say in many cases this is definitely the case.

So lets consider a hypothetical couple called Bill & Beth.

Continue reading Does 1% p.a. make a difference?

Why use a Mortgage Broker?

Mortgage Brokers (also often referred to as Finance Brokers, Mortgage Planners or Credit Advisers) act as an intermediary between lenders and borrowers to negotiate loan facilities.

Over the last 10 – 15 years the usage of Mortgage Brokers in Australia has increased consistently and it is now estimated that approximately 1 in every 2 new home loans in Australia is sourced through a Mortgage Broker.

So why do so many borrowers utilise a Broker rather than going to their local Bank? Some of the benefits and reasons include:

Continue reading Why use a Mortgage Broker?