IS ONE PHONE CALL REALLY ALL IT TAKES TO SECURE A LOWER INTEREST RATE?

is-one-phone-call-really-all-it-takes-to-secure-a-lower-interest-rate-loan-mortgage-broker-sydney-prospera-finance

With official interest rates trending downward, shrewd mortgage holders may take the opportunity to call their lender to ask for a better deal.

But when even a small interest rate reduction means potential savings of thousands of dollars, is a simple phone call really enough to get you there?

In 2019, ‘your interest rate should have a three in front of it’, is common advice for home owners considering the competitiveness of their loan settings.

But while a number of lenders offer lower rates to new customers, it’s not always so simple for existing customers to secure the same outcome.

A leading mortgage and finance broker says that if people want a better deal on their mortgage, there are basically two options:

  • Call your bank and ask them to match the new rate, or

  • Contact your broker and vote with your feet.

And although the first option is commonly recommended, lenders aren’t always so obliging when it comes to rate-matching to get you a more affordable mortgage.

“As an existing client, it can be disheartening to see your bank offer new customers a lower rate to the one you currently have.

“Lenders regularly try to ‘win’ new customers by offering low rates. It is a great acquisition strategy.

“But if they refuse to match your current rate to this new offer, you can always contact a broker and refinance with a lender who is hungry to win your business.”

Mortgage brokers, on average, have access to a panel of 34 lenders and this creates competition amongst lenders.  Mortgage brokers are also in a position to offer you a more in-depth and customised level of service.  This can allow them to find their customers a mortgage product that may suit their current needs, wants and circumstances.

So speak to an expert now. Call Geoff, a MFAA Approved finance broker, who can help you get a competitive rate on your home or investment loan.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

 

THREE MUST-KNOWS FOR PROPERTY INVESTORS TO PREPARE FOR END OF FINANCIAL YEAR

three-must-knows-for-property-investors-to-prepare-for-end-of-financial-year-loan-mortgage-broker-sydney-prospera-finance

Crunch time has come for property investors with June 30 fast approaching. If you are a property investor, you will know what a hectic time end of financial year (EOFY) can be. However, with a little forward planning, you will be well on your way to a smooth tax lodgement come EOFY.

Read on for the biggest must-knows for property investors this tax season, helping you stay out of trouble with the ATO and minimising your tax bill while maximising your long-term savings.

Must-know #1 - Records you should keep 

From 1 July until 31 October, you will need to lodge your tax return for the previous income year. If you’re using a registered tax agent, you may be able to lodge later than 31 October. Whether you prepare your tax return yourself or use a tax agent, you need to have on record up-to-date correspondence, income and bills related to your investment property over the period you own it. This includes rental income, deductible expenses and documents relating to ownership of the property, including all purchasing and selling costs.

It is important to note that documents pertaining to rental income and deductibles need to be kept for five years from 31 October or five years from when the tax return is lodged, if after 31 October. Any documents relating to property ownership need to be kept for five years from the date you sell your investment.

If you have a property manager, they will likely provide you with an EOFY summary. If you misplace a receipt or invoice, the ATO allows you to substantiate your claims with a bank statement. Having these documents handy, whether in a physical or digital file, throughout the year means it will be easier to make accurate calculations come tax time.

Must-know #2 - Not all accountants are created equal

According to the ATO, one of the common mistakes that investors make is choosing an accountant with limited property experience, as this experience is often invaluable come tax time. What deductions property investors are allowed are subject to change, and if you don’t have an accountant who understands property, you could be in for a shock. For instance, a landlord is no longer able to claim travel deductions for inspecting, maintaining and collecting rent.

Before settling on an accountant, take the time to find out what their experience or level of expertise is. Ask different accountants questions about property investing and gauge if their responses are thorough enough.

Must-know #3 - To claim or not to claim

If you are DIY-ing your tax return, having a good understanding of the ins and outs of the tax rules is important. Even if you are working with an accountant, having this understanding will put you in a good position to make smarter decisions that could have a positive impact on your tax circumstances.

For instance, you might want to bring forward expenditure to before 30 June, if you’re planning repairs for your property. Before doing this, however, determine whether the job is deductible as a maintenance or repair, or if it is considered a renovation or of a capital nature. To help you understand the difference, the ATO publishes a guide on how rental property owners need to treat rental income and expenses at ato.gov.au.

As a rule of thumb, things you may be able to claim for immediate tax deductions include rates and taxes, including council and water rates and land tax, repairs and maintenance. Some tax deductions that may be claimed over several years include capital works or building costs and borrowing costs.

There are many deductible items which slip the mind of the savviest of property investors. For instance, around 80% of property investors don’t claim the depreciation of their rental at tax time, despite it being one of the most valuable deductions property owners can claim.

Estimating declines in the value of assets is complex, so it might be worthwhile to engage a qualified quantity surveyor to create a depreciation schedule. This allows you to claim the depreciation of fixed items within your property including carpets, blinds and fixed appliances, reducing your taxable income.

Again, planning ahead is crucial. If you know you have expensive, depreciable purchases around the corner, the best time to buy is always early in the financial year to ensure you are maximising how much you can claim.

Despite being one of the busiest times of the year, EOFY also offers a great opportunity to review how your investment property has performed throughout the year with a property manager, if you have one. It is also a good time to check in with your mortgage broker to ensure your existing loan is still servicing your needs and discuss any future plans to expand your investment portfolio.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

THINKING OF BUYING COMMERCIAL PROPERTY FOR RENTAL? HERE’S WHAT TO CONSIDER

thinking-of-buying-commercial-property-for-rental-heres-what-to-consider-loan-mortgage-broker-sydney-prospera-finance

When it comes to property investment, people tend to think of residential. But commercial property can offer some big advantages as well, either as a space for your own business or as an income provider. We examine the pros and cons of going commercial.

From warehouses and offices, retail to car parks, there are some serious potential benefits to non-residential property when you’re considering investment options.  If you already have residential investments, adding commercial property is a way to diversify your portfolio. Plus, if you own a business and are currently leasing premises, owning your own place can deliver another set of rewards.

Financial specialist Patrick Clarkson says many people overlook commercial property when looking to invest.

“It flies a little under the radar,” he says, “but it’s a different way of thinking, a different asset class, just with higher returns and capital growth and more consistency.”

Here, Clarkson outlines the pros and cons of investing in commercial property.

THE POTENTIAL BENEFITS:

Higher yields

The highlight of investing in commercial property, Clarkson argues, is higher rental returns.

“As long as you’re in the right market, you’ll get a better rate of return than residential,” he says, pointing out that with residential property in capital cities, return can be anywhere between three and four per cent, but with commercial you can earn about six per cent.

Greater consistency

While a residential lease can turn over every six to 12 months, a business leasing a commercial property will want a longer lease period – generally three or five years, possibly 10 – so there’s a lot more security.

“A business moving into an office or a warehouse won’t want to be asked to leave in six or 12 months,” Clarkson says, “so three years is probably about the minimum.”

Better tax incentives

Another positive is the better level of depreciation a commercial property can return, i.e. there’s more you can write off, so you’ll get better tax benefits.

“Carpets, air conditioning – everything has to be replaced more often in commercial properties, and you can write them off over a few years,” Clarkson explains.

Be your own landlord

If you’re investing in a property to operate your own business from, there are additional benefits (though Clarkson points out you do need to do your homework first to check it’s the right strategy for your business).

If you’re planning to be in the location for, say, 15 years, buying and then leasing it after you’ve moved on (rather than paying rent to someone else for those 15 years) could make perfect sense.

As the property belongs to you, you can make changes without needing permission from a landlord – you have full control and an asset appreciating for the business.  One purchase option is to fund it through your self-managed superannuation fund (SMSF). The ATO lets business owners buy a commercial property through their SMSF for business use if they meet the criteria.

“You’re building wealth,” Clarkson says, “getting a diversified return on your super and also not having to pay rent.”

THE POTENTIAL RISKS:

Finding new tenants

While you’ll get longer leases with commercial properties, it can also take longer to find a new tenant, so vacancies represent the biggest risk.

“That’s why it’s important to do your research and take time to understand the market and vacancy trends,” Clarkson says.

Be sure to undertake that extra level of due diligence so you know as much as you can about the area and the demand there.

Lease loss affecting value

A commercial property’s value is closely aligned with its lease so if it’s about to expire, or your premises becomes vacant, its value will decline.

“Most valuers ask about your lease contract and that will be part of the valuation as well as market demand,” Clarkson says. That’s why it’s important to make sure you have a good, solid lease in place.

Vulnerable to business climate

When business is booming the demand for commercial properties booms too, but a downturn can translate to a demand fall.

Currently, the business outlook is strong. According to the latest NAB Quarterly Business Survey, business conditions remain well above average with trading conditions, profitability and employment conditions “favourable”.

Retail, however, remains weak, according to the report, making investing in commercial retail property riskier.

“Retail is a rollercoaster,” Clarkson argues, “but offices, warehouses, those sorts of thing, are good.”

Commercial property can be a smart investment, delivering plenty of benefits, but it’s very important to do your research and get the right advice to achieve its full potential. Your mortgage broker will be able to help with that as well as finding the best loan for this kind of investment.

Commercial property: the pros

  • Higher yields

  • Greater consistency

  • Better tax incentives

  • Be your own landlord

Commercial property: the cons

  • Challenge of finding new tenants

  • Lease loss can affect value

  • Vulnerable to business climate

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

HOUSING MARKET ‘GREEN SHOOTS’ BEGINNING TO EMERGE

housing-market-green-shoots-beginning-to-emerge-home-loan-mortgage-broker-sydney-prospera-finance

The housing market is showing signs of recovery, but a “V-shaped” reversal from the current trend is unlikely, according to a new analysis from ANZ Research.

ANZ Research economists Felicity Emmett and Adelaide Timbrell have identified “green shoots” in the housing market, with property price falls beginning to “moderate” and buyer sentiment on the rise.

Drawing on the latest data from property research group CoreLogic, the analysts noted that they expect a further 5 per cent fall in national home values in 2019 – taking the cumulative peak-to-trough decline to 15 per cent – before stabilising in 2020.

“Price declines in Melbourne and Sydney are already starting to moderate, suggesting we are most likely past the worst of the housing downturn,” the ANZ Research economists stated.  

The analysts also referenced the latest consumer sentiment data form the Westpac-Melbourne Institute, which reported an uptick in sentiment regarding the “time to buy a dwelling”, which increased by 13.6 per cent from 101.1 index points in May 2018 to 114.9 in May 2019.  

“This likely reflects the improvement in affordability brought about by price declines,” the analysts added.

The rise in first home buyer (FHB) activity was also cited, with FHB market share increasing from 15.3 as at 31 March 2018 to 18 per cent in the month ending 31 March 2019, according to the latest data from the Australian Bureau of Statistics.

“Better deposit affordability as a result of falling prices, along with improvements in sentiment, is encouraging first home buyers to enter the market,” the analysts continued.

“The number of years needed to save for a deposit for a Sydney home (on median incomes and prices) has fallen from 10.6 to 9.2 and stamp duty concessions in New South Wales and Victoria have also encouraged first home buying.”

Further, the analysts claimed that while it is “taking longer on average” to sell homes, most households are “coping well with the downturn”.

“While household debt has reached 190 per cent of household disposable income across the economy, serviceability of mortgages is not a problem for most,” ANZ Research stated.

“There are some signs of increased stress on home owners moving from interest-only loans to principal and interest loans, and default rates for these borrowers have moved a little higher from a very low base in recent months.  

“However, there are no signs of forced selling, with the number of new listings continuing to fall.”

However, the ANZ Research analysts concluded by noting that while improving affordability would be an “important ingredient in turning around the current cycle”, the upturn would not be as pronounced as the fall that preceded it.

“If prices fall in line with ANZ Research’s expectations and the economy remains in good shape, demand and sentiment should turn around,” the analysts stated.

“We are unlikely, however, to see a V-shaped recovery.”

(MortgageBusiness – 16 May 19)

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

'THE CORRECTION IS NEARING ITS END': PROPERTY PRICES WILL SOON BE AT ROCK-BOTTOM, SAYS HSBC

the-correction-is-nearing-its-end-property-prices-will-soon-be-at-rock-bottom-home-loan-mortgage-broker-sydney-prospera-finance

Australia’s housing market downturn, already one of the largest on record in terms of price falls and duration, is likely to come to an end in the second half of this year, says Paul Bloxham, Chief Australia and New Zealand Economist at HSBC.

“We expect the housing market to stabilise by the second half of 2019,” Bloxham said in a note to clients.

“Our forecasts are that national housing prices will have a peak to trough decline of around 10 to 15 per cent, so our central case is that the correction is nearing its end.”

Bloxham’s view, more optimistic that other Australian housing market commentators, is underpinned by recent housing-related data which has, at least compared to what was seen late last year and earlier this year, shown some tentative signs of bottoming out.

“Evidence of some stabilisation in the housing market is starting to accumulate,” Bloxham said.

“Auction clearance rates in Sydney and Melbourne are picking up, albeit from low levels, as are loan approvals, particularly for first home buyers.  House prices continue to fall, clearing the way for a rate cut.

“The pace of decline in housing prices has slowed recently and consumer sentiment surveys suggest that a rising share of households now see it as a ‘good time to buy a home’.”

Data released by CoreLogic earlier this month showed that while median home prices fell across all capital cities in April, except Canberra, the overall pace of nationwide falls slowed to 0.5 per cent, continuing to moderate from the levels reported earlier in the year.

Much of the deceleration in price falls has been in Sydney and Melbourne where median values slid by 0.7 per cent and 0.6 per cent during April, slower than the 1 per cent plus declines seen in December 2018 and in January this year.

While the moderation may reflect seasonal patterns — typically prices are stronger in autumn and spring, but weaker in winter and summer — Westpac’s Australian economics team, like Bloxham, said recent trends are consistent with other Australian housing market indicators.

Matthew Hassan, Senior Economist at Westpac said the recent moderation in the downturn is “broadly consistent with the improved tone from auction markets and consumer sentiment”.

“While much of the initial moderation in monthly declines appeared to be due to seasonality, the April update shows a clearer shift over and above seasonal variations,” he said.

Tim Lawless, Executive Research Director at CoreLogic, also shares the view that the worst of the downturn may now be over given recent data trends.

“We are seeing further evidence that the worst of the housing market conditions are now behind us,” he said earlier this month.

“Values are still broadly declining, however the pace of decline has moderated since December last year and there are some tentative signs that credit flows have improved, albeit from a low base.”

While recent housing data has improved — or looked less-bad depending on your personal view — it follows a period of weakness rarely seen in Australia’s property market before.

Even with the recent moderation in price falls, Australia’s median home price has still declined 7.9 per cent from the cyclical peak seen in September 2017.

The slide in the capital cities has been even more acute with median values down more than 10 per cent, largely reflecting declines of 15 per cent and 11 per cent respectively in Sydney and Melbourne, along with ongoing price weakness in the mining capitals, Perth and Darwin.

Given that prices have fallen quite a lot, and are still falling at this point despite tentative evidence of a modest improvement in market conditions, it’s little wonder why some are concerned this will drag on the Australian economy, especially given the slowdown in the economy last year coincided when home price declines were speeding up.

While he says the housing downturn has contributed to the slowdown in the economy in recent quarters, Bloxham isn’t overly concerned about the outlook, including the impact on household spending, the largest component of GDP at a little under 60 per cent.

“The fall in housing prices has had some effect on the economy,” Bloxham said.

“As housing prices have fallen, turnover of dwellings has slowed and this has weighed on sales of motor vehicles and furniture, which are goods which often get sold when houses are exchanged. However, much of the rest of the consumer spend has been fairly well supported. Consumer sentiment is above average and has been so through most of the housing market correction.”

Despite plenty of indicators suggesting the downturn in prices will slow employment growth, Bloxham believes that, based on official data from the ABS, that it has had much of a net effect on employment growth.

And as long as that continues, Bloxham says that will help to keep housing arrears, and as a result price falls, contained.

“There have been few signs of distressed sales. Housing turnover has slowed, not risen. Mortgage loan arrears and defaults are low,” he said.

“Mortgage serviceability remains strong because interest rates are low and the jobs market has been improving. Employment growth is currently above average, the unemployment rate is at an eight-year low of 5 per cent and job vacancies are at a record high as a proportion of the workforce.”

Bloxham also points out that in New South Wales and Victoria — where the largest housing price corrections have occurred in the recent cycle — unemployment rates are at the lowest levels since the mid-1970s.

(SMH – 10 May 19)

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

THE WINNERS FROM AUSTRALIA'S PROPERTY MARKET SLUMP

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Australia's worst property slump in a generation has created some obvious losers. Investors who bought at the top of the market are underwater; homeowners looking to sell are having to slash prices and developers are struggling to offload apartments as projects started during the height of the boom near completion.

But there are also some winners, from first-time home buyers to stylists sprucing up dwellings to get them camera-ready for sale. Here are five groups getting ahead despite the downturn:

First-home buyers

The downturn has made homes more affordable for first-time buyers - usually younger people who feared they would never get on the property ladder as prices surged as much as 75 per cent during a five-year boom that peaked in mid-2017.

The median dwelling value in Sydney dropped to $789,339 in February, according to CoreLogic data, from as much as A$895,117 at the top of the boom. With interest rates still near record lows, and lending curbs knocking investors out of the market, first-home buyers are back in business.

That's showing up in lending data: the group accounted for 26.5 per cent of mortgages taken out in December, up from 20 per cent in February 2017.

"My hunch is it's a pretty good time to buy," said Stephen Koukoulas, the managing director of Market Economics Pty and a former adviser to ex-Prime Minister Julia Gillard.

"If you've got a secure job, a deposit and financing, then affordability is pretty favourable."

Renters

More first-time buyers getting on the property ladder is thinning the field of applicants for rental properties, just as a wave of new supply hits the market.

Rent inflation, at 0.5 per cent, is around the lowest since 1993, according to the Reserve Bank of Australia. In Sydney, median weekly house rents declined 1.8 per cent in the December quarter from September, and apartment rents dropped 2.8 per cent, according to property listing website Domain.

Landlords are dropping rents and in some instances offering incentives such as a free pizza and case of beer to applicants willing to sign on the spot.

"I wouldn't say it's a tenant's market but we are starting to see incentives being offered by landlords, like one week's free rent," said Leo Patterson Ross, senior policy officer with the Tenants' Union of NSW, an advocacy group in the state of New South Wales. "Landlords know they can't just sit back and have hundreds of applications thrown at them."

The return of first-home buyers is supporting the bottom end of the property ladder. The value of dwellings in the lowest 10 per cent of the market rose in the 12 months through January, and was little changed in the next two bands. By contrast, the top of the market is hurting the most: prices for the most-expensive properties fell almost 10 per cent.

Small cities

While the two major cities that led Australia's housing boom - Sydney and Melbourne - are now leading the retreat, home prices in smaller towns are holding up.

Hobart (population 220,000) was the only state capital where prices rose last month, and values are up 7.2 per cent in the past year. The Tasmanian city is benefiting from mainlanders cashing out and moving to the island state for a more relaxed lifestyle, and investors chasing capital growth in a tight market. Plus the median house price there is a more affordable A$457,186.

In regional cities, prices are down just 0.8 per cent in the three months through February, compared to a 3.3 per cent decline in the combined capitals.

Property stylists

Those companies that whisk in, take the tired furniture out and magically make homes look lovely are also benefiting from the property downturn. More than ever, there's a realization by vendors that homes must be at their most presentable in order to maximize the sale price and minimize the time spent on the market.

David McLean, general manager of Furnish&Finish, said a professionally styled property can shave about four weeks off a marketing campaign and add about 12.5 per cent on average to the sale price. He recalls two identical studio apartments in North Sydney in the same unit block that were on the market recently: the styled one fetched $100,000 more.

Valiant Hire is also in the residential styling business. Co-founder Steve Remington said inquiries were up about 25 per cent in the first month of this year versus a typical January.

"People who previously wouldn't have considered going down the styling path are looking at it a lot harder now," he said. "They know that in this market, they really need to present the property in the best possible light."

(SMH – 4 Mar 19)

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

CAN YOUR PROFESSION SAVE YOU ON YOUR HOME LOAN?

can-your-profession-save-you-on-your-home-loan-mortgage-broker-sydney-prospera-finance

When it comes to saving on your mortgage, some of you may not have to look further than your job. If yours is a profession that classifies you as a ‘low risk’ borrower in the eyes of lenders, then you may be entitled to special discounts.

The lucky ones

Accountants, lawyers and teachers are commonly eligible for home loan discounts, or particular loan types without fees, based on their professions. “The benefits differ depending on specific professions,” the finance broker explains. “It depends on what industry the lenders decide to target as it’s a constantly changing situation, so what’s here today may not be around tomorrow.”

An example of this is the slowing down of the mining industry in 2015, which saw mining engineers lose their ‘in demand’ status and their profession-based discounts.

Doctors take the cake

Lenders have their own target lists of professions, but doctors are the big winners. “They'll get waived LMI, lower interest rates and, in many cases, banks will even go outside of their normal policy to get their loans approved,” says the finance broker. “However, not all medical professionals, such as psychiatrists, chiropractors, vets and pharmacists, are accepted by all lenders so it’s always advisable to confirm.”

How the perks work

Simply being in a certain profession won’t automatically save you on your home loan. To qualify you must apply with a lender that offers your profession a special discount and meet that lender’s criteria. “You’ll often need to provide evidence of membership of a certain industry body such as the Australian Medical Association,” advises the finance broker. “Waived LMI is usually approved without any problems if you meet the criteria, however your mortgage broker may need to negotiate to get a better interest rate as well.”

Because lenders don’t publish these better interest rates, to benefit from the discounts it’s best to have your broker by your side. Not only will they know which lenders to apply to, they will also assist you with pricing requests and negotiating the best possible interest rate.

MFAA accredited finance brokers are industry leaders who have the knowledge and expertise to find the most appropriate loans for even the most complex financial scenarios, including profession-based discounts.

If you fall into one of the above categories or if you think you might be entitled to a special discount, please contact Geoff.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

WHEN SHOULD I FIND A FINANCE BROKER?

when-should-I-find-a-finance-broker-sydney-prospera-finance-mortgage-broker-refinance-home-loans

Saving for a home?  If you haven’t met with a finance broker yet, you’re doing it wrong.  Here’s why.

When saving a deposit to buy a home, many people have a goal amount in mind that they need to save before they meet with a finance broker who will help them secure the finance.

If this is you, you’re doing it wrong.  From day one, when you first think ‘I could maybe buy a house if I worked hard and saved a lot’, you’re ready to have a finance broker on your side.

A finance broker’s knowledge of the loan and property market will help you work out how much you will be able to borrow, which determines the size of the deposit you will need to save.

They will also be able to help you develop a realistic timeline to save your deposit and find ways to pay down debts faster, and provide creative solutions that will help reach your goals sooner.

You may also be pleasantly surprised to find that you are closer to your goal than you thought.  The tools in a finance broker’s belt that can help you realise your dreams more quickly and efficiently include lender’s mortgage insurance, specialist lending products, land loans and, for investors predicting significant rises in property prices, interest-only loans.

More importantly than just being allowed to provide these products, an MFAA Approved finance broker can help you work out whether they suit your situation and goals.  For example, while buying land now to build on later lowers the cost of your initial investment and can be an opportunity to take advantage of a dip in land prices, there is no point in it if you will not be able to secure construction finance down the track.

So speak to an expert now. Call Geoff, a MFAA Approved finance broker, who can help you take the first steps to owning your home.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

WHY YOUR FINANCE BROKER IS CALLING YOU

why-your-finance-broker-is-calling-you-sydney-prospera-finance-mortgage-broker-refinance-home-loans

Wondering why your finance broker is contacting you six months after you’ve settled on your property? The simple answer is that a finance broker is with you for life.

You’ve scored the home of your dreams with the help of your finance broker and you’ve just popped the bubbly to celebrate. Congratulations!

When the bottle’s empty and you’ve settled in to your new home, you’ll notice your finance broker is still in your life, and you might wonder why – after all, they got you the loan and earned their commission. Why would they still care how you are going?

They know it’s a good idea to keep in touch every six to 12 months. After all, you should be reviewing your current loan every year and your finance broker can let you know how you’re tracking along.

Building a long-term relationship with your finance broker is a good idea as he or she will know the ins and outs of your circumstances and what you want for your future. Your finance broker will also stay on top of your account and, with expert industry knowledge, keep his or her ear to the ground for any new products or better interest rates that would benefit you.

As well as expecting to hear from your finance broker every six to 12 months, there are a few times you should contact them. This is because if your life circumstances change, it may impact your mortgage.

For example, you may be welcoming a baby into your home, you may receive a higher salary, your income may be temporarily reduced or you may decide to get married.

Otherwise, you may want to refinance to a better a deal or consolidate your debts. You may also want to access the equity that you have accumulated in your home for a renovation, an investment or a holiday, all of which your finance broker can help you with.

Even the most seasoned of investors benefit from staying in touch with their broker, who can help them maximise returns later down the track. And if you decide to invest in property for the first time, your finance broker can help look for investment loan options to get you started.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

FINDING THE RIGHT LOAN

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Save your legs and call a loan expert.  How do you match a loan and lender to your needs? Rather than running around finding out the details of each and every lender and loan, draw on the expertise of a Finance Broker.

One of the benefits of working with a finance broker is the extensive menu of loan options they have at their fingertips.  But given such a wide choice, how does your adviser narrow down the options to find the right loan for you?

MFAA Approved Finance Brokers sometimes have access to more than 30 different lenders. These include the big four banks, second-tier lenders such as Macquarie Bank, Bankwest and Citibank, and a raft of niche lenders such as Liberty or Pepper, which offer loan options for people who may not meet the lending criteria of the top banks.

When it comes to making loan recommendations, a credit adviser looks at a number of different factors.

First they’ll talk to the client about their goals.  This might be to pay off the loan as quickly as possible, or to find a loan with the lowest interest rate possible.  They may want a loan with a fixed term, or they may want a facility with a low fee structure. Each client is different.

Many MFAA finance broker give each client three loan options and makes sure the options meet their requirements across a range of criteria.

If the borrower has no specific requirements, finance brokers will most often take into account interest rates, how fees impact the life of the loan and how portable the loan is.

While interest rates are the most critical factor, it’s not the only factor.  As well as the loan’s fees and interest rates, the lender must also match the client.

Speak to Geoff, an MFAA Approved Finance Broker, who can match you to the perfect loan.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

WHAT COMES FIRST: THE PROPERTY OR THE LOAN?

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It’s easy to get carried away with the fun part of buying a property – looking at houses – but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan.

 Looking for a property to purchase is an exciting time. Choices regarding location, size, number of rooms and local amenities often see house hunters carried away in a deluge of daydreams and anticipation.

 But, before you get carried away, it’s important to check off the essentials first. Although organising your finances may seem drab in comparison to perusing sales listings, gaining pre-approval with a lender will give you confidence about how much you can afford to borrow.

 “First and foremost you need to determine if you’re eligible to borrow money from a lender,” says the finance broker. “Your ability to repay the loan will need to be assessed – you don’t what to find out after you’ve [made an offer] that your credit history or deposit is not up to scratch.”

 Arranging finance before finding the perfect property will put you in a good position when it comes time to make an offer. When you do find the house you have always wanted, you can present to the seller and estate agent as a prepared applicant who is serious and reliable.

 “It shows you mean business, and gives them peace of mind that your financing will not fall through. Don’t be afraid to let the selling agent know you have conditional loan approval in place,” the finance broker advises.

 Sellers are most interested in completing their sale fuss-free and with steadfast funding, and showing that you are capable of both will help put you at the top of a potentially competitive list of applicants.

 In the instance that you find and secure purchase of a home without having your loan pre-approved by a lender, there are a few pitfalls that you risk running into.

 “If you don’t have financing to pay for your property, you run the risk of forfeiting your initial 10 per cent non-refundable deposit you need to put down to secure the property. This may differ depending on what state you live in, but the point is it always pays to be organised and have pre-approval in place,” Nolan says.

 Saving home loan applications to the last minute also leaves less time to find the most suitable loan and have it approved ahead of settlement.

 “Arranging financing as an afterthought also adds immense pressure to the process of shopping around for the right loan and gathering the paperwork to prove you can service the loan,” the finance broker explains “You don’t want to rush this process.”

 The first step towards finding your new home is speaking to a Mortgage Broker to sort out the finances.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

REFINANCING COULD SAVE YOU THOUSANDS – AND GIVE YOU GREATER FLEXIBILITY

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What is refinancing?

Refinancing is the process of replacing an existing loan with a new one. When it comes to home loans, it means your existing home loan is paid off and replaced with a new one. This is different from a second mortgage, where you draw on the equity you have built up in your home.

How can it help me save?

If you were paying 5.37 per cent interest on a principal and interest home loan of $600,000 for a 25 year term. Your monthly principal and interest payments per month will total $3,648.00. If you swapped to a mortgage at a lesser rate of 5.24 per cent, however, you’d pay just $3,602 a month. Over 25 years, that saving each month would add up to 13,800 in total savings.

Another savings option when refinancing is to choose a loan with a lower interest rate but continue with the same monthly payments as you were making on the higher rate. This approach will see you pay less interest and pay your mortgage off faster.

Alternatively, refinancing can help save money by consolidating debt from high-interest credit cards or personal loans into a single home loan with a lower rate of interest.

Features to consider

Most mortgages offer a number of features and benefits. If you’re considering refinancing, it’s a good idea to think about which features are important to you before starting a search for a lower interest rate.

  • Variable rate or fixed rate.    A fixed rate gives you more certainty over the longer term.  A variable rate fluctuates with the market, so you’ll save when it’s down but there’s always a risk it will rise.  (In January 1990, for example, the Australian home loan interest rate reached an all-time high of 17.5 per cent.)

  • Offset account.   Cash in hand can be offset against your loan balance until you need to spend it, potentially saving interest.

  • A line of credit.   If you have a lot of equity in your home, a lender might be prepared to offer you a relatively inexpensive line of credit secured against the property.

  • Repayment flexibility.   Repaying a loan fortnightly rather than monthly can make it easier to fit in your budgeting plans.

  • Early pay out.   You may want the option of paying a loan out early with minimal penalty.

Weighing up the costs

There can be costs associated with refinancing and it’s important to factor these in to your decision-making. For example, if you took out your loan before 30 June 2011, the lender might be able to charge you an exit fee for terminating the loan ahead of schedule. If yours is a fixed-rate mortgage, you might have to pay a break fee.

For a new mortgage, you may have to pay an establishment fee and the ongoing administration fees could be higher than you’re currently paying. And if your loan has redraw facilities, there may be a charge each time you take money out of your account.

Do the maths

You can use an online mortgage calculator to work out what repayments will be for different loan amounts at different interest rates.

You can also compare fees and charges to ensure they won’t offset any savings in interest over the life of a loan. The Australian Security & Investment Commission’s MoneySmart website has a useful mortgage switching calculator that can help you assess overall costs.

A broker can help

Refinancing can be a serious financial decision with a number of variables to consider. A good broker can help establish the type of loan that may work best for you, how much you can borrow and any extra features you want.  They can then gather information from many different lenders and help assess the costs and benefits associated with each loan.

As well as doing the legwork for you, they can guide you through the refinancing process and apply their knowledge and understanding of mortgages to help you achieve the best outcome if you decide to go ahead.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

WHEN IS THE BEST TIME TO REFINANCE YOUR HOME LOAN?

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As a home owner with a mortgage, chances are you’ve heard of the term 'refinancing'. Refinancing involves reviewing your current mortgage, and potentially swapping your loan to another lender who can better meet your current needs, wants and circumstances.

Refinancing can also allow you to consolidate your debts or pay down your mortgage more quickly.

Another common reason borrowers look to refinance is so that they can access equity – the amount you'd get from selling your home after settling any associated loans, such as a mortgage on that property, and any other costs associated with the property. Depending on that amount, you may be able to access equity in the property without having to sell it, for example, to make home renovations or to buy an investment property.

However, refinancing is not suited to everyone. There are many different factors you will need to consider when thinking about refinancing a loan. Before you initiate an application to refinance, your broker will need to assess your needs and objectives as well as your current financial situation.

So how will you know that refinancing is the right option for you?

The first step is to speak to a professional, such as a mortgage broker, about your needs and whether you can afford a different loan structure or other change to your mortgage, particularly if you have more than one property.

Are you looking to pay less interest?

Some people are savvy researchers and will want to take advantage of a lower interest rate from another lender should that be available to reduce repayments. If you aim for a lower interest rate, this could potentially save you a lot of money in the long term.

While saving money is often one of the biggest benefits of refinancing, it may not be as straightforward as that and careful consideration is required.

At this point, the broker will need to find out about your existing loan, repayments and current loan structure.

Your mortgage broker will also need to find out more about your current financial situation, including your income, any other current debts and about any assets you own.

The current value of the property is also taken into consideration, so your broker will have access to current data that will indicate what your property is likely to be worth.

The broker will then review the various loan options and figure out whether it’s worth it for you to refinance. Sometimes it’s not worth it if it’s only going to save a couple of hundred dollars a year, particularly when you take into consideration the exit and application fees involved. But if it’s going to save upward of $1,000 a year, refinancing might be a sensible approach.

In some cases, the mortgage broker can tell you if getting a lower interest rate from your current lender can be achieved without refinancing.

Do you want to change your loan type?

One of the risks of refinancing your home loan is that you may need to pay Lender’s Mortgage Insurance (LMI) to your new lender. If switching your loan means you will need to pay LMI again, it may not be worth refinancing.

If you do decide to go down the refinancing path, working with a broker rather than going straight to a lender has advantages. Broker’s generally have access to loan options from a range of different lenders (on average 34 lenders), and if there’s a better opportunity for you, they’re usually able to access it.

It is important to consider that when you take up a new home loan, it can incur exit fees and may not have all the features your existing home loan has.

Have your circumstances changed?

If you had a recent major life change such as a because of a loss of income or a change in marital status, you might be looking to refinance.

If you want to refinance to lower lending costs to help you manage your monthly repayments, speak to your mortgage broker who can negotiate with your current lender for a rate suitable to your current situation.

Your broker can also help you look at alternate options to consolidate your personal loans and credit cards into the one loan. This could help you in lowering your monthly repayments, or help you keep your repayments on time and even save you interest in the long-term. The key is to speak to an accredited mortgage broker who usually has access to many lenders and their products and has the expertise to help you through the refinance application process.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

'I'LL BUY CHEAPER': AUSTRALIA'S PROPERTY KING IS EXPLOITING THE SLUMP

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Harry Triguboff is remarkably calm about Australia's worst real estate slump in a generation considering he's got more at stake than perhaps anyone on the planet.

"We have our ups and downs and we keep building," Triguboff, 85, said in an interview from his office overlooking George Street, one of the busiest in Sydney.

The developer, who's worth $US9.2 billion ($13 billion), according to the Bloomberg Billionaires Index, plans to push on with expansion, even as the Sydney property market slides deeper into the doldrums.

"If prices fall, I'll buy the land cheaper," Australia's second-richest person said with a wave of his hand. "As long as you don't lose your cool. You have to look at things in the longer term."

Triguboff, known as 'High-Rise Harry,' has been in it for the long haul. He's earned the nickname after more than half a century in the business.  His closely held Meriton has built about 1 of every 10 apartments in Australia's biggest city and more than 75,000 along the east coast of the country since he completed his first project at age 30.

For most of that time, the property market has enjoyed strong growth. But not now. National home prices fell 5.6 per cent in the year through January, the biggest annual decline since 1983, according to data from CoreLogic.  Hardest hit has been Triguboff's home turf Sydney, where prices are down 12 per cent from their mid-2017 peak.

Taking a step back, Sydney has been caught up in a property downturn sweeping the globe. Manhattan's median condo price has dipped below $US1 million ($1.4 million) for the first time in three years, Hong Kong home values recently endured their longest losing streak since 2008, and prices in London's prime central neighbourhoods are 19 per cent below their 2014 peak. 

Ben Udy, an economist at Capital Economics, expects Sydney prices to keep dropping until mid-2020, eventually bottoming out at 20 per cent below their peak. Apartments could bear the brunt of the downturn, after a building binge that's left a glut of units, he said.

But Triguboff has weathered slumps before, most notably in the mid 1970s when debts almost crippled the business and led to an insistence on funding projects from his own reserves.  He's overcome tougher obstacles.  Triguboff fled to Australia as a boy from a Russian community in China after World War II.  After arriving in 1948, he then spent time in the UK, Israel and South Africa before moving back to Australia in 1960.  He ran milk delivery and taxi businesses before building his first block of units in 1963.

Triguboff remains as active as ever. Current projects include Pagewood Green in Eastgardens, Sydney's eastern suburbs -- the biggest project he's undertaken -- and his first beachfront tower, the 75 level Ocean development on the Gold Coast.  Despite the recent tumble in prices, Triguboff isn't slowing down. "We build at the same rate," he said.  That confidence stems from flexibility in his strategy. Triguboff builds apartments for the sale, rental and short-stay markets, and changes the amount of stock made available based on where demand is strongest.

Meriton has 9,000 units available for rent, Triguboff estimates, and he expects that to climb to 10,000 by next year. Its Meriton Suites division is the largest owner of hotel rooms in the country.  "I don't care whether they lease or they buy," said Triguboff. "So where leasing is concerned we are very strong. I build 40 units a week and I can lease 150 units a weeks. So where is the problem?"

Growing the business in the cooling market will be difficult. Constraints on foreign buyers add to the challenge, and a slowdown from China could be particularly problematic for Triguboff, whose brand of affordable high-rise apartments is a hit with migrants from the world's most populous country.

Triguboff remains optimistic.  "China has more than 1 billion people," he said. "And they love Australia. I think they love Australia as much as we love Australia. So there will always be enough of them that will buy."

A sale of Meriton was considered in 2014, but five years later Triguboff remains firmly in control. His grandchildren Daniel and Ariel Hendler, both in their 20s, are involved in the family business and stand as potential successors to the octogenarian.

Passing on his wisdom is important to Triguboff.  "My grandsons, they understand everything," he said. "The real thing is how do you make things happen?  I teach them how to make things happen."  

And what about his health?  Triguboff describes himself as looking better than he feels. He said he had just one day off work through ill health last year. "How many did you have?" he joked.

SMH – 15 Feb 19

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

WHAT LIES AHEAD FOR THE PROPERTY MARKET THIS YEAR: MORE APARTMENTS AND LOW INTEREST RATES

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Twenty seven years without a recession tells you that policymakers have got a lot right.

But measures aimed at protecting an economy from disaster can lay the groundwork for future disasters.  The banking royal commission highlighted the lending excesses that helped fuel a property boom with the blessing of regulators and the Reserve Bank.  Policymakers saw the property market as a vital support when the economy was threatened by the end of the mining boom and the global financial crisis.  It worked too well. Led by Sydney and Melbourne, the combination of loose lending by banks, low interest rates, favourable tax laws and foreign investment created a boom the likes of which we have rarely experienced.

Now policymakers have embarked on the extremely difficult and risky task of deflating a property bubble with the aim of engineering a soft landing.  

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So far so good, but like the property boom which went too far, the regulator-induced correction could overshoot with disastrous consequences for the wider economy.  A collapse in property prices would see developers go broke, leading to job losses and pressure on the banks.

Households, already constrained by high debt, rising costs and weak wages growth may become more defensive by cutting spending and saving more.  This would have a knock-on effect to the broader economy because households make up more than half the economy.

By this time next year we'll know whether policymakers have got it right.

Interest rates will remain low

One thing property buyers or borrowers don't have to worry about is higher interest rates.  Given the recent softness in the national accounts, there's a good chance the RBA will be revising down its growth forecasts to start the year.  Most economists have pushed out their rate hike forecasts to early next year but predictions of a rate cut, which might have seemed confined to crackpots six months ago, now look respectable.

At this point the jobs market is holding up, the economy is running around average speed, interest rates are low, households have not shut down and wages growth is picking up ever so slowly.  As things stand, none of this seriously threatens the property market.

The major domestic threats are fear itself and tighter credit conditions.  New treasurer Josh Frydenberg, who has an election to win, is calling on the banks to loosen up.  Banking regulator APRA has eased some lending restrictions, and the Reserve Bank governor has warned of the dangers of banks becoming too scared to lend due to the royal commission.  Banks and their leaders have spent the best part of a year being pilloried by the community.  We have heard countless apologies and admissions from bank bosses suggesting they've learned the error of their ways.  The royal commission has exposed the naked truth about banking conduct and irresponsible lending.  What many people now describe as a "lending crackdown" or "credit squeeze" is simply the banks behaving as they should, lending more responsibly and conducting thorough loan assessments.

So don't expect the banks to rescue the property market.  Their hands are tied and they've been burned too badly. Not by falling property prices but by public humiliation, the regulators and royal commission.  It is a major reason property prices will continue falling.

Property analyst with Digital Financial Analytics Martin North says: "Eighty percent of the impact on house prices is credit availability and that is now significantly tighter."  "The royal commission has underscored what responsible lending actually means in terms of assessing loans, so the banks are now going through many more hurdles when it comes to lending, and that won't change," he added.

Buyers also expect prices to fall. That, in itself, puts downward pressure on values.

More apartments for Sydney and Melbourne

Also unhelpful is the trouble brewing globally with both China and the US showing signs of slowing, which will simply add to the domestic headwinds.

Martin North says price falls in Sydney and Melbourne are halfway done at least.  He expects prices to come off between 20 and 40 per cent with the major cities eventually dragging down all markets.

Commonwealth Bank chief economist Michael Blythe sees a continuation of the price falls with the cities down more than the regions due to their much larger price appreciation.  But the CBA considers the price correction two-thirds of the way through, with first home buyers and population growth helping to slow the decline.

Martin North says the apartment glut coming on-stream in capital cities will offset population growth.  Savings represent the biggest risk, according to Michael Blythe.  Falling house prices may make consumers reluctant to cut their savings rate any further and that will have knock-on effects throughout the economy, but he dismisses the doomsayers.

He says, "areas dominated by investors have seen the biggest price falls because they've been targeted by the regulator for financial stability reasons".  "If the property price slump is a response to regulation changes", he says, "then it's not an indication of some sort of fundamental imbalance in the housing market that gives you the more catastrophic outcomes that people tend to worry about".

Research group CoreLogic has issued its forecast for property markets around the country and it is not expecting a property crash.  It is expecting a glut of new apartments to come onto the market in Sydney and Melbourne this year and is already seeing a growing proportion of these developments settling at lower prices.  An experience it expects to become more widespread. But on the other hand it's counting on increasing migration and improving affordability to help support the market.

What's in store for each State?

Regional markets in New South Wales which are not considered coastal retreats are also likely to see a downturn.

Regional Victoria will fare better with values expected to push higher during the year due to strong population growth and healthier affordability levels.

Interstate migration is expected to see mild growth in Brisbane, the Gold Coast and the Sunshine Coast but regional Queensland will be mixed with hard-hit mining areas starting to recover.

Improving housing affordability and interstate migration will help support Adelaide's housing market. Regional South Australia can expect mild growth at best after some difficult years.

People are continuing to leave Western Australia, which does not augur well for the property market.

The good news is that Perth's housing market is expected to bottom-out this year as the economy improves.

Regional areas of the state, where prices have plunged up to 55 per cent, may start to bottom out and a return to mild growth.

Tasmania is the standout thanks to rising migration rates, a housing shortage and healthy housing affordability.

Prices are expected to continue rising in Hobart and the regions, but the growth rate will weaken.

Darwin is now the most affordable capital city housing market which means it could start attracting some value-hunting investors.

But it's lacking major job-creating industries so economic conditions and the future of property prices remain uncertain.

The prospects for Canberra look good. Unemployment is low, migration is trending higher and public sector wages have been growing more strongly than the private sector.

ABCNews – 7 Jan 19

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

THE FOUR STEPS MILLIONAIRES USE TO BUILD THEIR WEALTH

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At the end of the day, building wealth is relatively simple: earn good money, save and invest.

But there’s a fourth step millionaires often take once that’s all said and done - investing in real estate.

“Investing in real estate seems like a natural result once the basics are covered and excess cash is generated,” John, who retired at the age of 52 with a $US3 million ($4.2 million) net worth and writes personal finance blog ESI Money, wrote in a blog post.

John would know – he spent the past few years interviewing 100 millionaires.  Here he breaks down the four-step process many of the millionaires he spoke with used to build wealth:

  • "Person/couple begins with normal job, then works to grow income and/or advance, generating additional, strong career income.

  • "While doing this they keep their spending under control, creating an ever-widening financial gap between what they make and what they spend.

  • "They invest in index funds to add even more growth to their finances. 

  • "As this cycle continues and feeds itself, they look for additional sources of investment  and real estate seems a natural fit for this extra cash.”

The first three steps involve tried and true principles to becoming a millionaire.  Most millionaires are goal-oriented and hard workers – they commit to increasing their skill set to build wealth for a long-term plan, according to author Chris Hogan, who studied 10,000 millionaires.  This leads to the strong career income John spoke of.

They also have enough perseverance to avoid “lifestyle creep” – the tendency to spend more whenever one earns more.

By spending below their means, millionaires are able to commit to saving that well-earned income, which is the heart of building any wealth.

William D. Danko, the co-author of the best-seller The Millionaire Next Door, recently said in a Q&A with The Washington Post that you should create a lifestyle off 80 per cent of your income and save the remaining 20 percent.

A portion of this 20 per cent goes to millionaires’ favoured investing strategy: low-cost index funds, which are recommended by experts like legendary investor Warren Buffett for their minimal risk and cheap costs.

It’s then that millionaires can begin to move beyond simplicity and look for additional investment opportunities like real estate.

Seasoned investors build wealth through real estate

“It’s an interesting result since real estate is not known to fit the other investment criteria millionaires prefer (simple, easy, etc.) but there’s certainly something about it that draws them,” wrote John.

Just ask Dana Bull, a realtor and real-estate investor based in Massachusetts.  After becoming a landlord in her early 20s, when she bought a condo and rented it out for extra income, she now owns more than a dozen rentals and thinks that real estate is one of the best ways to build wealth.

“What I love about real estate is that you can build your own strategy,” she wrote in a post for Business Insider.  “My bread and butter has been purchasing small multi-families with two to four units per building.  This is a great entry-level strategy, especially for those looking to live in one apartment while renting out the rest to offset a mortgage.”

The financial advantages of investing in real estate are plentiful, according to Bull: positive cash flow, appreciation in terms of housing values, leverage and tax advantages.

But the reward doesn’t come without the effort, she says. Like building wealth, investing in real estate takes patience and hard work.

SMH – 14 Jan 2019

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

WHY COMMISSIONER HAYNE HAS ADDED INSULT TO INJURY FOR AUSTRALIAN HOME BUYERS AND INVESTORS

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The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is long overdue.

Its goal was to ensure better outcomes in the future as banks and financial institutions are forced to put their customers’ needs before an institution’s bottom lines and its executives’ pay packets.

While well intended, Hayne’s recommendations for proposed sweeping changes to mortgage broker remuneration may destroy the one channel that has kept the banks honest and delivered outstanding results to the customer.

A heavy-handed approach to broker remuneration will decimate mortgage lending competition – which has flourished as a result of a level playing field created by brokers. Low entry costs for smaller banks, non-banks and niche lenders have forced the banks to cut their margins in half since the late 1980s, with brokers an integral part of offering alternatives to the big banks and stimulating competition.

Should this competitive lending marketplace be reversed, Australians could see 2 to 3 per cent added to their mortgage repayments if history is anything to go by.

Borrowers clearly prefer brokers to a direct relationship with a bank when it comes to choosing a mortgage. Since the inception of the mortgage broking industry, millions of Australians have dumped a bank branch for a broker. And today, 60 percent of borrowers favour this channel when it comes to choosing a mortgage.

That is an astounding proportion of all borrowers, and brokers’ share of the mortgage lending market continues to grow. 

When you look at the latest data, it is not hard to see why. The Consumer Access to Mortgages Report conducted by Momentum Intelligence in December evaluated the opinion of 5,800 borrowers to better understand the customer experience when using a broker.

The findings revealed that 96 per cent of mortgage broker customers were satisfied or very satisfied. What’s more, 95.8 percent would choose a mortgage broker for their next loan.

The message is clear: the mortgage broker channel has near-perfect customer loyalty, while only one in three direct customers plan to return to their bank.  But a cornerstone of relationship between brokers and their customer hinges on the value borrowers see in a “free” service.

Why is this proposition so important and why won’t borrowers pay a fee-for-service that they clearly value?

The answer is simple. Why would anyone willingly pay for something that’s always been free, particularly when they get great value out of the service? Borrowers know that brokers are paid a commission – and the Consumer Access to Mortgages Report showed almost 80 per cent, a huge majority, have absolutely no concern about this structure.

Just 3.5 percent of broker customers would be prepared to pay a fee that is equivalent to the average upfront broker commission of around $2,000, the reported indicated.

That signals a potentially catastrophic outcome for borrowers should commissions be removed.

Australian property is also expensive enough as it is. What’s more, stamp duty, legal fees, insurance, plus a host of other expenses will leave most borrowers little left in the kitty – and potentially make property out of reach for millions of Australians already struggling with affordability constraints. Is it any wonder they don’t want to fork out on broker fees as well?

Any decision that borrowers should be forced to hand over a fee-for-service that is currently free and they value – for their own good – is frankly an insult.

The Adviser – 5 Feb 2019

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

INTEREST RATES ON MORTGAGES COULD BE EVEN LOWER IN A YEAR, ANALYSTS PREDICT

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This time next year, your mortgage repayments could be lower, some analysts are predicting.  Banks often justify raising the interest rates on their mortgage products by pointing to the rising cost of funding these mortgages.  But several analysts have told RN Breakfast funding costs for banks look to be heading down over the next six months.

"People with principle-and-interest, owner-occupier home loans will be paying less this time next year than they are today," Shaw and Partners banking analyst Brett Le Mesurier said.  The reason why banks are not moving to cut rates now, analysts argue, is because of the big swings we have seen on share and bond markets recently.  Those swings are related to developments on many major international macroeconomic and geopolitical fronts, including the US-China trade war, a debt hangover in Europe and the possibility of a hard Brexit.  It has made lending a more risky activity, and created a sense of nervousness in the money markets.  That has seen banks charging each other more to lend to one another. 

"What's happened at the moment is that funding costs have increased, therefore the chance of them cutting their home loan rates across the board is very small at the moment," Mr Le Mesurier added.  All four big banks confirmed to RN Breakfast the cost of sourcing money has gone up in the past few months.  Westpac told the ABC, "Funding costs are up since November", while ANZ said, "Funding costs have increased again in recent months, resulting in an increase to overall bank-funding costs compared to three months ago".

Banks 'flush' with deposits, pushing rates down

However, while banks draw on a number of different money pools to fund home loans, they mostly rely on deposits.  Mozo has a database of Australian bank deposit rates.  Mozo banking analyst Peter Marshall said the cost to banks of holding these deposits is currently very low.  "There are plenty of products out there that are offering really terrible returns at the moment," Mr Marshall said.  The average online interest rate is roughly 1.35 per cent and that is down 0.05 percentage points over the past 12 months.  If you add on bank fees and charges, and consider how inflation erodes the value of money, some savers could actually be worse off by putting their money in the bank.  "Absolutely, you could be going backwards," Mr Marshall said.  "If you're not earning over 2.5 per cent then, yes, you're probably going backwards in your savings."  UTS business professor Warren Hogan believes that is likely to remain the case for some time.  "[Deposit rates are] historically very low," he observed.  "They're almost at levels we've never seen before and I'm not sure if we're going to see much of a material change in that."

Anne Anderson from UBS manages roughly $30 billion of clients' funds in the bank's fixed-income department. She agrees with Mr Hogan.  "Banks actually don't need more deposits and that's why rates are falling very modestly," she argued.  "Actually I wouldn't say they're rising or falling, they're broadly unchanged.  "The banks are flush with cash at the moment because we've all heard the talk that credit growth is slowing and therefore they don't need as much money, so that's one of the reasons why the rates, if they've fallen, have fallen, for that reason."

'Bank funding costs will start to come down'

But banks do not just take money from depositors to provide home loans.  They also draw on what is known as the wholesale money market — massive pools of money sourced from other financial institutions and professional investors.  Australia has a wholesale money market and there are money markets overseas as well.  Professor Hogan argues the cost of borrowing from those markets, given what he predicts will be less anxiety on global markets later this year, will see funding costs fall.

"So I think bank-funding costs will start to come down over the course of the next six months or so."  RN Breakfast asked the major banks about their upcoming costs.

The nation's biggest lender, the Commonwealth Bank, said it was just three weeks away from releasing its half-year financial results and so it could not comment any further.  ANZ noted price-signalling legislation meant it also could not give additional commentary.  RN Breakfast was still waiting for a written response from National Australia Bank.  It is important to note that, for some of the smaller lenders, rates are actually increasing.  The Bank of Queensland, for example, raised rates last week and said the decision was based on continuing funding-cost pressures and intense competition for term deposits.  Anne Anderson warned even if the big four banks were in a position to cut rates, they would be tempted to only drop them by a small amount.  "So when we're talking here about the banks easing back, it could be of the order of 10 basis points or something," she said.  However, she added any kind of mortgage relief would be welcomed by households.  "The Reserve Bank still believes in the cash-flow mechanism," she observed.  "If it was required, reducing interest rates supports household balance sheets.  "It gives them a cashflow effect, in the absence of wage increases and enables people to pay off debt."

House price falls may trigger rate cut

For the big four banks, though, the biggest wild card remains the Reserve Bank.  While deposit rates are expected to remain very low, and there is a chance the cost of other funding sources will come down, if the Reserve Bank lowers its official interest rate there will be enormous social pressure on the banks to also follow suit.  Warren Hogan believes there is a one-in-four chance of a rate cut.  "The housing market is the key here," he said.  "If it continues to deteriorate in the first half of 2019, like it did in the second half of 2018, I think we will get a rate cut.  "The falls we have seen in house prices so far, I think the economy will be resilient to — people will look through 5-to-10-per-cent declines in the value of their homes.  "If the falls become 15 or 20 per cent, then I think that's going to affect peoples' spending.  "They're going to start to think, 'I've just lost five years of savings worth of wealth in the last year, because my house price has fallen, and I therefore am going to delay buying a new car, buying a new fridge, going on a holiday'.  "If that affects a lot of consumers — bearing in mind 70 per cent of people own a home, with or without a mortgage — then it could become a macroeconomic event, in which case the RBA would need to respond.  "But, at the moment, I'm still of the view the housing market will stabilise in the next few months, but really all eyes on those auction markets come February."

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

‘BROKERS MAKE MORTGAGE MARKETS WORK BETTER’: DELOITTE

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Mortgage brokers “make mortgage markets work better”, increase choice and competition between lenders, and help drive “better service levels and competitive mortgage pricing”, a new report from Deloitte Access Economics has found.

The Value of Mortgage Broking, a new report from Deloitte Access Economics (DAE), has been released today (24 July), outlining the evolution, growth and role of mortgage brokers in Australia; the impacts broking has on the economy; the consumer value proposition of the industry; and the lender value proposition.

Commissioned by the Mortgage Broking Industry Group (MBIG)*, the report comes off the back of increasing scrutiny of the sector (following on from ASIC’s review of broker remuneration, the Productivity Commission’s focus on broking in its review of competition in the Australian financial system, and the financial services royal commission).

The DAE report aims to provide an “up-to-date body of information” about the industry “for the purpose of informing policymakers and the broader community about the role mortgage brokers play in the mortgage market and the economic contribution of the mortgage broking industry in Australia”.

The 47-page report, which reportedly took six months to undertake, is broken into four parts:

  • the dimensions and history of the mortgage broking industry;

  • the value that the mortgage broking industry has provided to the broader economy;

  • the outcomes and benefits mortgage brokers provide to consumers; and

  • the value proposition mortgage brokers provide to lenders.

Pulling on data from a range of sources, including the Mortgage & Finance Association of Australia (MFAA), ASIC, the ABS and stories from The Adviser, the report also reveals new findings collected from a nationally representative survey of 1,635 mortgage brokers (both independent and those working in a group) and a focus group workshop with mortgage brokers, and consultations with industry participants (such as National Australia Bank, Heritage Bank, Liberty Financial, AFG, Connective and Pink Finance).

Key findings of the report

New findings from DAE’s survey include:

  • Brokers that are sole traders earn an average income (after costs and before tax) of $86,417.

  • A broker business with more than one broker reported average earnings (before tax) of $119,838.

  • 73 per cent of brokers working in mortgage businesses work full-time.

  • 90 per cent of sole trader brokers work full-time.

  • 23 per cent of broker customers are first home buyers.

  • More than half (57.3 per cent) of broker clients are residential owner-occupiers.

  • An average mortgage broker has 13.8 years’ industry experience.

  • 70 per cent of a broker’s business comes from existing customers (either directly or indirectly).

  • The mortgage broking industry supported 27,144 full-time equivalent jobs in 2016–17.

  • There are approximately 7,115 people employed in supporting roles in mortgage broking businesses.

  • 70 per cent of brokers are credit representatives (and the remainder hold their own ACL).

  • 64 per cent of brokers have education and training above their minimum entry qualifications (Certificate IV in Finance & Mortgage Broking).

  • The mortgage broking industry contributes $2.9 billion to the Australian economy each year.

Other findings included the confirmation that lodging loan applications and managing the process to settlement are the most time-intensive tasks of a broker (just 12 per cent of time is spent post settlement), while it also revealed that the average broker has access to 34 different lenders and uses an average of 10.

The report also confirmed that “mortgage brokers sell more loans than lenders’ own distribution channels (e.g. through branches, mobile lenders and over the telephone)”, noting stats from the MFAA which showed that brokers’ share of new residential home loan settlements reached 55.7 per cent by value in the September 2017 quarter.

Other insights included that mortgage brokers drive more competitive mortgage pricing, provide valuable services and offer greater choice for consumers.

The report reads: “Overall, mortgage brokers make mortgage markets work better. They are intermediaries that provide consumers with information about the mortgage products available and the process to follow in applying for a mortgage.

“Mortgage brokers also provide lenders with an additional channel to arrange loans. Mortgage brokers increase choice and competition between lenders, leading to better service levels and competitive mortgage pricing. Mortgage broking is also an industry in its own right, providing direct employment opportunities and supporting employment in other industries…

“A continually improving mortgage broking sector will be good for consumers, lenders and the economy. Along with changing technology, consumer preferences and broader finance industry changes, regulation and self-regulation/co-regulation will shape the future of an industry that has evolved considerably over a number of decades since its emergence in Australia.”

“Devising a new fact base to feed into the public debate”

Speaking to The Adviser, Deloitte Access Economics director Mike Thomas said: “This has been a very large information gathering exercise that has taken well over six months. Putting a survey out to field, getting the data back, processing all the data... going through the written report, updating the data as new data came to hand and then getting it to the final stage really [meant it] was an extensive body of work.”

He added: “We were asked to devise a new fact base to feed into the public debate that has been going on around the industry (and about the financial services sector in general) lately. There has been a lot of scrutiny, so you need a good fact base to make sure that that debate is carried out in an informed manner but also there is an evidence base for policymakers.

“If policymakers and regulators are going to make decision[s] that affect the industry, they need a sound evidence base. So, we hope that what we’ve put together helps to meet both of those aims; informing the public debate and providing that good evidence base for going forward.”

Speaking of the report, the CEO of the Mortgage & Finance Association of Australia, Mike Felton, told The Adviser the he believed there were four key takeaways from the report: the fact that brokers have, on average, 13.8 years of experience; the fact that nearly two-thirds have higher than required education levels; that brokers have access to (on average) 34 lenders but use 10; and the new finding that the average sole operator earns around $86,400.

Mr Felton told The Adviser: “While the report shows so many positives about the critical role that brokers play in driving competition, choice and service to those that need it most, it also shows the vulnerability that a broker only earns $86,400 and how vulnerable they are to any adjustments that might reduce that. That poses risk to choice, competition, interest rates and the provision of these services.”

He added that he hoped the report would “assist with addressing the shortfall in knowledge of what brokers do, the role they play and the value that they produce”.

In addition, Finance Brokers Association of Australia (FBAA) executive director Peter White said: “Customer satisfaction is critical for our industry. With so much referral and return business, brokers know they must do everything they can to help their customers secure finance that works for them. And it’s clear that this is happening — more than 90 per cent of home buyers are happy with their mortgage broker’s performance.

“Beyond this dedication to serving their customers, mortgage brokers are experienced professionals. The report found the average broker has 13.8 years’ industry experience, which speaks to the quality of service and value that brokers provide their customers.”

Mr White told The Adviser that he hoped the report would provide a “much clearer, succinct understanding of what the industry really looks like”.

The head of the FBAA concluded: “It was intentional that we used Deloitte, a business of great significance, to sit in front this report, because we wanted the independence to truly speak to what the market is like.

“It’s not a report of self-interest, which some [other industry] reports have been. It is a concrete report that can be cited with great confidence given the research quality and the neutrality. We hope it will be a key piece of conversation in political circles, in mortgage circles, in the media and across the economy, going forward.”

Earlier this month, Deloitte released its Australian Mortgage Report 2018, based on a roundtable discussion and survey of some of the biggest decision makers in the mortgage industry, which found that the popularity of mortgage brokers among the public continues to defy media criticism and ongoing scrutiny.

The MFAA has also recently launched a major marketing campaign across the country to promote the value of brokers to the general public, with the FBAA also taking steps to hit out at some of the misreporting and “myths” about broking in the mainstream media.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE

ACCC REPORT REPRESENTS ‘OPPORTUNITY’ FOR BROKERS

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A new report into mortgage pricing has shown that a lack of transparency is stifling competition, with the heads of the broker associations highlighting that this presents a prime “opportunity” for brokers to help borrowers.

The Australian Competition and Consumer Commission (ACCC) released the final report of its mortgage price inquiry on Tuesday (11 December), which monitored the prices charged by the five banks affected by the government’s major bank levy between 9 May 2017 and 30 June 2018.

The report was initiated by the commission after the Treasurer directed the body to inquire into prices charged by the financial institutions affected by the major bank levy (ANZ, CBA, NAB, Westpac and Macquarie Bank) to understand whether the costs of the levy were being passed on to borrowers.

While the ACCC did not find evidence that the five banks were changing prices specifically to cover the cost of the levy (whether in part or in full) over the monitoring period, it did find that the mortgage market was characterised by “opaque discretionary pricing practices” that cause “inefficiency” and “stifle price competition”.

ACCC chair Rod Sims said: “Pricing for mortgages is opaque and the big four banks have a lot of discretion. The banks profit from this, and it is against their interests to make pricing transparent.

“Borrowers may not be aware they can negotiate with their lender on price, both before and, particularly, after they have established their mortgage.”

A main finding of the ACCC report was that new borrowers pay lower interest rates than existing borrowers. According to the ACCC, new borrower loans were, on average, up to 32 basis points lower than existing borrower loans (depending on the category of residential mortgage).

This, it suggested, could be worth up to $1,000 per year for the average mortgage holder.

Mr Sims therefore urged “more people to ask their lender whether they are getting the lowest possible interest rates for their residential mortgage and, as they do so, be ready to threaten to switch to another lender”.

“I am afraid that the threat of switching banks will often be necessary to achieve a competitive mortgage rate,” he added.

While mortgage brokers play an intrinsic part in finding an appropriate home loan for borrowers, the report touched on brokers only briefly, and this was largely in relation to how smaller lenders rely on the third-party channel for distribution.

‘Brokers find consumers a better deal’: FBAA

Speaking to The Adviser following the release of the report, Peter White, managing director of the Finance Brokers Association of Australia (FBAA), argued that while he appreciated that the report was focused on “transparency of how interest rates are priced”, he said that the findings marked an “opportunity for brokers to highlight that this is what brokers do – finding consumers a better deal”.

Mr White told The Adviser: “I understand why mortgage brokers weren’t more profiled across the report because that is not how it was being positioned. Instead, it was looking at how the banks, and the majors in particular, actually create the pricing decisions on mortgages.

“But that said, the thing that I was surprised wasn’t mentioned that should have been is that this is one of the value-added propositions of mortgage broking.”

The FBAA MD elaborated: “Mortgage brokers are consistently helping clients to negotiate a better deal with their banks because they know that the banks do this. And when you can’t get a better deal or the loan is not suitable, then they look at refinancing options.”

Anecdotally, Mr White said that between 30 and 55 per cent of loans written by FBAA members were for renegotiation of a client’s loan with their existing bank.

He said: “This saves borrowers money, because they not only can achieve a lower interest rate, but they also don’t have the costs of having to move their loan, which can include costs for things such as mortgage insurance, new valuations, legal fees, etc.

“So, the mindset of the professional broker is to help clients get a better deal with the lender they are with. If that is not possible, then they are able to showcase the other options in the market place. This is part of the value proposition of brokers.”

Mr White concluded: “We see, once again, in the ACCC report that the banks are not being transparent about rates. And this was a theme that was raised in the royal commission, too.

“If you take the brokers out of the game, imagine how much worse it would be. Because we are the ones keeping the banks honest.”

‘In an economy devoid of mortgage brokers, most smaller lenders simply could not compete’: MFAA

The Mortgage & Finance Association of Australia (MFAA) also welcomed the report, specifically noting that the ACCC recognised the competition driven by smaller lenders, which is supported by the mortgage broking channel.

“As we have stated repeatedly in our responses to multiple regulatory reviews, from the ASIC Remuneration Review to this year’s royal commission, scrutiny on the financial services sector is entirely appropriate,” the MFAA said.

“It is also appropriate for the mortgage broking industry – we are now systemically important to the Australian economy, given that mortgage brokers now originate more than 55 per cent of all home loans in Australia.

“This is the reason the MFAA has supported industry reform and was instrumental in the formation of the Combined Industry Forum (CIF). The CIF has driven a broad range of reforms (in response to ASIC’s 2017 review), aimed at addressing potential conflicts which have allowed the industry to get ahead of the curve in seeking to continually improve the customer outcomes we are producing,” the association continued.

However, the MFAA said it was “critical that unintended consequences are considered before any regulatory change is implemented”.

The broker association highlighted a recent Deloitte Access Economics report, which found that the average broker earns $86,400 before tax, so “any significant reduction to commissions is likely to severely rationalise, if not decimate, the industry, as many brokers would not be able to continue to run their small businesses”.

“The result would be devastating for smaller lenders, and therefore catastrophic for competition, choice and access to credit for consumers, compounding the fact that credit has already been tightened due to a range of other factors,” the MFAA said.

It concluded: “The ACCC’s finding, that small lenders ‘are likely to be more vulnerable to future regulatory changes that affect the use of brokers as a distribution channel’, reflects exactly what the MFAA has been communicating to policymakers, Treasury, media and other stakeholders. In an economy devoid of mortgage brokers, most smaller lenders simply could not compete.

“With the smaller lenders removed, Australian consumers would be left with the choice of just a handful of lenders, or fewer if they live in a regional or rural area. This will lead inevitably to less competition, less choice and ultimately, higher prices, which would not be a good customer outcome at all.”

Contact Geoff if you’re looking for a better home loan deal or if you have any lending needs.

PROSPERA FINANCE — Geoff Norman

MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE