NEWS 8
DID YOU KNOW?
LENDER NEWS
A rundown of the fortnight’s policy and price changes
RATES
0.7% CoreLogic RP Data has revealed that over August, the combined capital city annual rate of rental growth fell to 0.7%, a new record low
Source: CoreLogic RP Data
ING Direct Cuts variable rates to 3.99% on its Orange Advantage product (comparison rate 4.19%) for applications received September 1st to October 31st. This promotional rate applies to new owner occupier lending with LVR less than or equal to 80% and principal & interest repayment. Suncorp Increases interest rates to 5.23% (from 4.96% and comparison rate 5.24%) on Investment Back to Basics variable loans and 5.81% (from 5.54% and comparison rate 5.97%) on Investment Standard variable loans, effective 31 August 2015. Westpac Applies rate discounts to Flexi First home loan products with a 4.19% interest rate on the Flexi First Options Home Loan and 4.46% on the Flexi First Investment Loan, representing a 0.64% life of loan discount and effective 1 September 2015 (comparison rate not provided). The spring-time offer will also waive the $600 establishment fee. Also announces a $1250 refinance rebate offer for both owner-occupied and investment loans, available to full applications conditionally approved by 30 November 2015 and settled by 29 February 2016. Advantedge Financial Services Lowers variable rate to 3.99% p.a. for owner-occupier home loans across PLAN Lending, ChoiceLend and FASTLend products plus Advantedge white label partnership brands. Applicable to owner-occupier principal & interest loans with an LVR of 80% or less and a loan value of $200,000 or more, effective 10 September 2015.
FAST FACT
POLICY
Thinktank Lifts its maximum loan term for Lease Doc loans from 25 years to 30 years. Introduces change to its Mid Doc product with self-certification of income now able to be supported by either one of: 2x BAS returns, six months trading bank account statements, or accountant’s letter. Extends its standard eligibility to residential properties, including NCCP regulated loans.
MORTGAGE CHOICE SHUTTERS HELP ME CHOOSE Mortgage Choice’s FY15 financial results presentation should have given a strong indication about the future of the franchise’s beleaguered comparison site, Help Me Choose. The franchise brokerage’s CEO John Flavell was forthright about the division’s struggles at the results meeting, saying Mortgage Choice would look to address Help Me Choose’s underperformance “as a matter of urgency”. This urgent action culminated in the company recently announcing it would shutter the division. Flavell said a comprehensive operational review led to the decision. “The less than favourable financial result of the Help Me Choose business prompted a comprehensive review of the operation and a decision has been made to close it down in its current form,” Flavell said.
$3.7bn Size of the reverse mortgage market as of December 2014
Source: Mortgage Choice
ME Offers $1,250 cashback to applicants of new owner-occupier home loans greater than $400,000. Applicable to all owner-occupiers who apply from 8 September to 2 October 2015 and settle before the 31 December 2015. Heritage Bank Waives $600 application fee for variable and fixed rate mortgages (on discount and standard products) or the $350 first year’s package fee on Home Advantage fixed and Home Advantage variable loan products. Effective immediately until 30 November 2015.