Lending Central

Market leading non-bank financial services group, Aussie, has launched an exciting promise to customers that if they are not impressed by an Aussie broker’s service they will be paid $100.

The “Aussie Promise to Impress” builds on Aussie’s reputation for offering customers highly personalised mortgage broking service which translates into a better deal by meeting their needs.

Aussie’s founder and executive chairman Mr John Symond said the Aussie Promise was targeted at customers who are interested in using a broker or bank customers looking for a reason to switch in order to get a more personalised service for their home loan needs.
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LJ Hooker’s financial division supports industry organization, MFAA’s move toward encouraging its members to become fully qualified professional credit advisers.

MFAA’s proposed framework of tiered professional qualifications will see brokers qualify for a Certificate IV in Financial Services.

LJ Hooker Financial Services General Manager Peter Bromley says this level of qualification is already built into the division’s performance standards for its brokers.

“All our current brokers meet Certificate IV standards, which means they complete 30 hours of CPD a year, have a conversion ratio of 65 per cent, accreditation with a panel of at least 10 lenders and settle at least six loans per quarter.
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Many would-be home buyers have given up the dream of home ownership, hit by a triple whammy of rising interest rates, tougher lending conditions and an end to the federal government’s more generous grant.

A survey by mortgage broker Loan Market found 28 per cent of respondents said they had put off their home buying plans indefinitely, while 32 per cent said they were trying to save for a larger deposit.

The online survey of 260 potential first time home buyers found 33 per cent of respondents were still looking to buy a property this year.
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Investors have returned from summer holidays to grab their largest share of housing loans since at least 2004, according to a survey by a mortgage broker.

Australian Finance Group (AFG), which claims over 10 per cent of the mortgage market, said on Tuesday that 34.1 per cent of all mortgages it arranged nationally in February were for property investors.

That was the highest proportion for investors recorded in the six-year history of AFG’s survey of its brokers’ activity.
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A compromise has been reached on new land tax laws set to pass state parliament this week ahead of a new land tax regime to be drawn up with industry and brought in next year, Queensland Premier Anna Bligh says.

Amendments to the Valuation of Land Amendment Bill, due to be debated last month, were delayed after industry groups opposed the changes as a money-grabbing exercise.

The changes were drawn up when a shopping centre won a court case that reduced its valuation, drawing concern the government would be forced to hand back millions in land tax if other appeals were also won.
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Business confidence and conditions strengthened in February a four month high, but growth remains below the highs seen in late 2009, a survey shows.

But businesses were caught unprepared for the surge in February, as inventories declined and hiring slowed.

The National Australia Bank (NAB) business confidence index gained four points to plus-19 points in February.

It was the survey’s highest level since November 2009 when it also touched plus 19 points, which at the time was a seven-year high.
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Potential first homebuyers are giving up their search each time lenders hike interest rates on home loans.

Within three days of the Reserve Bank of Australia lifting the official cash rate by 25 basis points to 4.0 per cent last week, 26 lenders had passed on interest rate rises on 175 home loan products, according to financial comparison website RateCity.

That prompted two per cent of potential first home buyers to halt their search, according to Australia’s biggest mortgage broker, Mortgage Choice.

Another three per cent would withdraw from the market if interest rates climbed another 75 basis points, Mortgage Choice said.
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One in five women do not trust their partner with shared finances, and nearly half believe their partner wastes money, according to a Westpac survey.

With more women than men holding the purse strings, women are being urged to tackle their money issues with their partner on International Women’s Day.

According to Westpac’s head of women’s markets Larke Riemer 36 per cent of women have more control over household money management, compared to 31 per cent of men.
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Australasia’s largest real estate and property group, Ray White, has recorded its best ever February residential sales result in Victoria.

Ray White Victorian General Manager Marcus Williams said preliminary statewide sales figures for February totalled in excess of $350 million - a 58 per cent increase on sales for the corresponding month in 2009.

Mr Williams said the highly active residential market was expected to continue at least in the short term despite the Reserve Bank of Australia (RBA) this week raising official interest rates to 4.0 per cent.
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The last two of the big four banks have stepped into line with their peers and matched the interest rate rise by the Reserve Bank of Australia (RBA).

Both National Australia Bank Ltd (NAB) and Westpac Banking Corp announced on Wednesday they would lift their standard variable rate on home loans by the same extent as the RBA’s quarter of a percentage point increase on the cash rate.

NAB also said its strategy of matching the RBA previously has led its mortgage volumes to soar.

Group executive personal banking Lisa Gray defended the bank’s retail strategy of maintaining low interest rates and cutting fees, saying NAB had experienced a surge in mortgage applications in February.
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The Reserve Bank of Australia’s (RBA) decision to lift its key interest rate again is an “unwelcome headache” for business, a business lobby group says.

The RBA raised the cash rate by 25 basis points to 4.0 per cent after Tuesday’s monthly board meeting, a move expected by a majority of economists.

Australian Chamber of Commerce and Industry chief executive Peter Anderson said the economic recovery is uneven with parts of manufacturing and the services sector facing difficult trading conditions.

“For many in commercial property, tourism and hospitality, particularly in regional centres, the outlook remains subdued,” Mr Anderson said in a statement.
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Two things stand out in the Reserve Bank of Australia’s (RBA) announcement of a rise in interest rates.

First, there are more to come.

And second, their timing is anyone’s guess.

Tuesday’s increase brought the cash rate to 4.0 per cent from 3.75 per cent.

It was given only a two-in-three chance by the futures market ahead of the RBA board’s monthly monetary policy meeting.

But the outlook always was that rates would rise, and more than once, this year, starting either this month or next.
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HSBC Bank Australia saw its annual 2009 pre-tax profit jump by 25 per cent to $251 million despite a halving of profits from its commercial banking arm.

The Australian operations of Europe’s biggest bank, HSBC Holdings plc, attributed the profit rise to diversified earnings streams, strong liquidity and a solid capital position.

Chief executive Paulo Maia said: “These results can be attributed to … HSBC’s strategic focus on international connectivity, our relationship banking business model and importantly, our financial strength.”
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Two of Australia’s biggest banks have announced 25 basis point interest rate increases on home loans, moving in lock-step with the Reserve Bank of Australia’s (RBA) rate hike.

Commonwealth Bank (CBA) will raise its interest rates on standard variable loans to 6.86 per cent on March 5 and ANZ Banking Group Ltd will increase on the same day to 6.91 per cent.

The announcements came after the RBA raised the official cash rate by 25 basis points to 4.00 per cent on Tuesday - the highest level in a year.

Three of the big four banks copped a public backlash in December for imposing bigger interest rate rises than those of the RBA, especially Westpac Banking Corporation.
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