What You Can Borrow or What You Should Borrow?
The amount you can borrow and the amount you should borrow are sometimes two very different things. Before you apply for a home loan, it makes sense to realistically assess your financial situation. Here’s how to do it. Understand your borrowing capacity Generally speaking, your borrowing capacity – what you can borrow – depends on […]
Reduction in Serviceability Rates – Can You Borrow More?
Earlier this month, the Australian Prudential Regulation Authority (APRA) finalised its revised guidance on serviceability assessment rates for lenders in relation to loan applications. Previously, APRA required all lenders to calculate a borrower’s capacity to repay a loan using a mandatory minimum interest rate of 7% per annum. Common industry practice for lenders was to use […]
Australian Banking Association – Identifying Vulnerable Customers
On 1st July 2019, the Australian Banking Association (ABA) released a new Banking Code of Practice (BCoP), which amongst other things, requires member banks to identify potentially vulnerable customers. Whilst the BCoP is only binding on member banks, the Australian Financial Complaints Authority (AFCA) has indicated that it considers these measures good industry practice and […]
Interest Rate Cuts – What Does This Mean for You?
The Reserve Bank of Australia (RBA) announced consecutive rate cuts in June 2019 and July 2019, bringing the cash rate down from 1.5% to 1%*. Prior to this, the cash rate had been held steady at 1.5% unchanged for more than 2½ years. For many lenders, more specifically those sourcing wholesale funding within Australian shores, […]
Bank vs Broker – Securing Rates for You to SAVE
There are many financial products on the market, each with their unique features and benefits. A loan that is right for one person and their situation may not be the right solution for someone else. By going direct to one lender when you are looking for a loan to suit you, without knowing and understanding […]