Sep 3

Applicants for the new Australian Credit License will find that they need to pass very strict new compliance reviews. Applicant will be required to pass rigorous checks to ensure their credit license applications are accurate as the corporate regulator steps up its enforcement of a new national credit regime.

Since the first of July, 2010, ASIC has issued 11 regulatory guides and 9 information sheets to help businesses understand their obligations.

“Going forward, our focus is on smoothly transitioning the industry to the new credit regime and ensuring our oversight of the industry is effective,” ASIC...

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Aug 31

According to a new research by the Loan Market Group, an increasing number of homeowners are downsizing to a smaller home in an effort to reduce their mortgage debt.Having a large debt for your home is a luxury that few can afford.

Loan Market chief operating officer Dean Rushton said the majority of downsizers are aging baby boomers getting ready for retirement. but many home owners who are younger simply do not have the capital to sustain their current lifestyle so they need to reduce debt by selling up and moving to a smaller property.

“We have had a recent case from one of our

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Aug 19

Although some improvements have been introduced, significant barriers remain for borrowers looking to switch home loans.

According to research conducted by RateCity consumers are finding it very difficult to switch home loans and switch transaction accounts between banks.

One of the most significant stumbling blocks with mortgage refinance is the mountain of paperwork required by the new lender. The next big issue is costs. By the time a borrower takes into account what they will need to pay their current lender to part ways – it is often cheaper to stay.

Damian Smith, RateCity CEO, said switching barriers remained a key...

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Aug 16

It seems that Variable Home Loan numbers are at a 21 month high in Australia with fixed home loans only making up 2% of the mortgage market.

Despite the talk in the media of lenders considering lifting interest rates outside of the RBA increases, most people seem to prefer variable rate home loans.

Currently there is only a very small gap in the cost of the cheapest available three year fixed mortgage and a 30-year $300,000 principal and interest loan – on average $98.

Variable home loans from mainstream lender generally come with a range of professional packages offering cheaper rates. ‘Pro packs’ tend to offer interest rate discounts along with ‘Gold’ credit cards and other special features.

Mortgage Choice spokesperson...

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Aug 12

Borrowers are choosing to stay with variable home loans in preference to fixing. According to recent sales figures by Mortgage Choice, demand for fixed rate home loans dropped to only 2 per cent of all home loan approvals in July.

According to Mortgage Choice spokesperson Kristy Sheppard new borrowers are confident that rates are not about to take off and are therefore choosing to leave their options open.

“This is despite less than half a percentage point difference between our average basic variable rate and the three year fixed rate, which converts to less than $100 per month on a $300,000 home loan,” she said.

With fixed rate home loans at a mere two per cent of all of our...

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Aug 10

A mortgage broker from Sydney is charged in court with conducting fraudelent activities over a period of seven months with the view of receiving mortgage commissions.  It is alleged that the broker falsified bank account statements and created fake pay slips on behalf of clients.

Yan Li, 30, of Wolli Creek in Sydney’s south, is charged with 27 fraud offences involving numerous home loan applications with the intention of obtaining a commission.