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  31. <title>Walker Corp goes green with new loans on flagship towers</title>
  32. <link>https://loansnearme.com.au/green-loans-cba-anz/</link>
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  35. <pubDate>Sun, 19 Sep 2021 01:20:14 +0000</pubDate>
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  58. <description><![CDATA[<p>Walker Corp goes green with new loans on flagship towers By Carolyn Cummins Property developer Lang Walker has struck an agreement with leading banks to create green loans for its flagship assets as it joins the push by all companies to focus on reducing their environmental impact and making buildings more sustainable. Under the deal, Walker [&#8230;]</p>
  59. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/green-loans-cba-anz/">Walker Corp goes green with new loans on flagship towers</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  60. ]]></description>
  61. <content:encoded><![CDATA[<h1 data-testid="headline">Walker Corp goes green with new loans on flagship towers</h1>
  62. <h5 class="_3-xPQ">By <a title="Articles by Carolyn Cummins" href="https://www.smh.com.au/by/carolyn-cummins-hved0">Carolyn Cummins</a></h5>
  63. <section class="_1Rw6X" data-testid="articleBodyTop">
  64. <div class="_1ysFk">
  65. <div>
  66. <div class="_1665V _2q-Vk">
  67. <p>Property developer Lang Walker has struck an agreement with leading banks to create green loans for its flagship assets as it joins the push by all companies to focus on reducing their environmental impact and making buildings more sustainable.</p>
  68. <p>Under the deal, Walker Corporation, one of the country’s largest private developers, will create new green loans for its Parramatta Square in Sydney and Collins Square in Melbourne. The loans are with the Commonwealth Bank of Australia (CBA) and ANZ Bank.</p>
  69. <figure class="_3ujPS _3x3-4 _2XZQH RMwbY">
  70. <div class="_1lwW_" tabindex="0" role="button" aria-label="enlarge image"><picture class=""><source srcset="https://static.ffx.io/images/$zoom_0.378%2C$multiply_1.0582%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_60/t_crop_custom/q_86%2Cf_auto/b64ef9f41d4afbe328bc8e372186c13f2ecb62b6, https://static.ffx.io/images/$zoom_0.378%2C$multiply_2.1164%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_60/t_crop_custom/q_62%2Cf_auto/b64ef9f41d4afbe328bc8e372186c13f2ecb62b6 2x" media="(min-width: 1024px)" /><source srcset="https://static.ffx.io/images/$zoom_0.378%2C$multiply_0.963%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_60/t_crop_custom/q_86%2Cf_auto/b64ef9f41d4afbe328bc8e372186c13f2ecb62b6, https://static.ffx.io/images/$zoom_0.378%2C$multiply_1.9259%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_60/t_crop_custom/q_62%2Cf_auto/b64ef9f41d4afbe328bc8e372186c13f2ecb62b6 2x" media="(min-width: 768px)" /><img fetchpriority="high" decoding="async" src="https://static.ffx.io/images/$zoom_0.378%2C$multiply_0.4431%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_60/t_crop_custom/q_86%2Cf_auto/b64ef9f41d4afbe328bc8e372186c13f2ecb62b6" srcset="https://static.ffx.io/images/$zoom_0.378%2C$multiply_0.4431%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_60/t_crop_custom/q_86%2Cf_auto/b64ef9f41d4afbe328bc8e372186c13f2ecb62b6, https://static.ffx.io/images/$zoom_0.378%2C$multiply_0.8862%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_60/t_crop_custom/q_62%2Cf_auto/b64ef9f41d4afbe328bc8e372186c13f2ecb62b6 2x" alt="An artists impression of Lang Walker's $3.2b Parramatta Square project." width="335" height="224" /></picture></div><figcaption class="_3CZmy"><span class="_2Li3P">An artists impression of Lang Walker&#8217;s $3.2b Parramatta Square project.</span><cite class="ojLwA"><span class="_30ROC">CREDIT:</span></cite></figcaption></figure>
  71. <p>It comes as the property sector embraces sustainability and focuses on the environmental, social, and governance (ESG) criteria of the business. It has become a priority for developers with more tenants now looking for higher rated properties to lease and investors using it as a key inclusion in a sale.</p>
  72. <p>Walker Corporation executive chairman Mr Walker said, “sustainability is at the core of the company’s ethos”.</p>
  73. </div>
  74. <div class="_1lC_G"></div>
  75. <div class="_1665V _2q-Vk">
  76. <p>“We are proud to have our flagship commercial buildings in Parramatta and Melbourne leading the way in environmental standards which gives us access to the green finance market,” Mr Walker said.</p>
  77. <p>“The 3 and 4 Parramatta Square projects have extended the terms of their green finance loans while Collins Square has now converted its existing loan into a green loan.”</p>
  78. <p>Mr Walker said tenants in both precincts were actively seeking environmentally friendly, sustainable buildings for their staff.</p>
  79. <p>“Green loans are a mutual win-win for companies and communities as we all work together to make our planet more sustainable,” Mr Walker said.</p>
  80. <p>“Climate focused investment is on the rise with big demand to participate in loans which have helped finance green buildings and assets like Walker’s, which feature clean and renewable energy, carbon emission reduction, as well as recycling and initiatives to reduce energy usage.”</p>
  81. </div>
  82. </div>
  83. </div>
  84. </section>
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  86. <div class="_1ysFk">
  87. <div>
  88. <div class="_1665V _2q-Vk">
  89. <p>ANZ managing director, corporate finance Christina Tonkin said ANZ advised Walker Corporation on the successful conclusion of its latest green property loan, underpinning the company’s commitment to an ambitious sustainability strategy.</p>
  90. <p>“As the first private company to issue a green loan in Australia, Walker Corporation leads the industry with its highly energy-efficient office buildings and precincts that are strongly valued by tenants and corporate Australia.” Ms Tonkin said.</p>
  91. <p>Commonwealth Bank’s group executive of institutional banking and markets, Andrew Hinchliff, said the bank acted as joint sustainability coordinator for Walker’s Green Loans&#8230;</p>
  92. <div class="ymInT noPrint _3by58"></div>
  93. </div>
  94. </div>
  95. </div>
  96. </section>
  97. <p>This article is from the Sydney Morning Herald, you can read the full article here:</p>
  98. <p><a href="https://www.smh.com.au/business/companies/walker-corp-goes-green-with-new-loans-on-flagship-towers-20210907-p58ph5.html" target="_blank" rel="noopener">https://www.smh.com.au/business/companies/walker-corp-goes-green-with-new-loans-on-flagship-towers-20210907-p58ph5.html</a></p>
  99. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/green-loans-cba-anz/">Walker Corp goes green with new loans on flagship towers</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  100. ]]></content:encoded>
  104. </item>
  105. <item>
  106. <title>&#8216;Liar loans&#8217; on the rise as risky mortgages drive house price boom</title>
  107. <link>https://loansnearme.com.au/liar-loans-risky-mortgages-house-price-boom/</link>
  109. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  110. <pubDate>Wed, 15 Sep 2021 00:31:32 +0000</pubDate>
  111. <category><![CDATA[Home Loans]]></category>
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  118. <category><![CDATA[house prices]]></category>
  119. <category><![CDATA[household debt]]></category>
  120. <category><![CDATA[interest only loans]]></category>
  121. <category><![CDATA[liar loans]]></category>
  122. <category><![CDATA[loan applications]]></category>
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  128. <guid isPermaLink="false">https://loansnearme.com.au/?p=2751</guid>
  129.  
  130. <description><![CDATA[<p>&#8216;Liar loans&#8217; on the rise as risky mortgages drive house price boom By business reporters Michael Janda and Gareth Hutchens Based on a survey of around 900 borrowers, UBS estimates that 41 per cent had inaccurate mortgage applications.(ABC News: Elise Pianegonda) Australian home prices have surged almost 20 per cent over the past year, and investment bank UBS [&#8230;]</p>
  131. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/liar-loans-risky-mortgages-house-price-boom/">&#8216;Liar loans&#8217; on the rise as risky mortgages drive house price boom</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  132. ]]></description>
  133. <content:encoded><![CDATA[<h1 class="_24eQK _3O3fw _23WqP _2yZBa UOKdn _3I3Xh _2uBSR _10YQT _1lh6E" data-component="Heading">&#8216;Liar loans&#8217; on the rise as risky mortgages drive house price boom</h1>
  134. <p>By business reporters <a class="fmhNa nsZdE _2c2Zy _1tOey" href="https://www.abc.net.au/news/michael-janda/166854" data-component="ContentLink" data-uri="coremedia://person/166854">Michael Janda</a> and <a class="fmhNa nsZdE _2c2Zy _1tOey" href="https://www.abc.net.au/news/gareth-hutchens/12002796" data-component="ContentLink" data-uri="coremedia://person/12002796">Gareth Hutchens</a></p>
  135. <header>
  136. <div class="vXtst" data-component="FeatureMedia">
  137. <figure class="_2XhY1 _2X-83 g1U-R" role="group" data-print="inline-media" aria-labelledby="100452368" data-component="Figure" data-uri="coremedia://imageproxy/100452368">
  138. <div class="_3C2ok" data-component="IntersectionObserver">
  139. <div class="_3C5J1" data-component="AspectRatioContainer"><img decoding="async" class="_1sqAO WIJbJ" src="https://live-production.wcms.abc-cdn.net.au/04b81ec77def3563c45b6e1cd75767b4?impolicy=wcms_crop_resize&amp;cropH=1997&amp;cropW=3000&amp;xPos=0&amp;yPos=60&amp;width=862&amp;height=575" sizes="100vw" alt="A sold sticker on a for sale sign." data-component="Image" /></div>
  140. </div><figcaption id="100452368" class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _1WKJ_" data-component="Figure__figcaption">Based on a survey of around 900 borrowers, UBS estimates that 41 per cent had inaccurate mortgage applications.<span style="color: #8a8a8a; font-size: 0.8125rem;">(</span><span style="font-size: inherit;">ABC News: Elise Pianegonda</span><span style="color: #8a8a8a; font-size: 0.8125rem;">)</span></figcaption></figure>
  141. </div>
  142. <div class="rEfTV" data-component="UtilityBar">
  143. <div class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q PuMA4 _1XTH_" data-component="UtilityBar__flex"><span style="font-size: inherit;">Australian home prices have surged almost 20 per cent over the past year, and investment bank UBS has warned that a record level of &#8220;liar loans&#8221; as buyers &#8220;chase the market&#8221; could be one reason why.</span></div>
  144. </div>
  145. </header>
  146. <div id="body">
  147. <div class="_8lXP6 OK4xB" data-component="LayoutContainer">
  148. <div class="ZN39J">
  149. <section class="_1uHEE _2Mryn _2X-83 g1U-R v-gc3" role="contentinfo" aria-label="key points" data-component="KeyPoints">
  150. <h2 class="wYJvU _1o1Da _1cBaI _2yZBa _18377 _3I3Xh _2uBSR _10YQT _1lh6E" data-component="Heading">Key points:</h2>
  151. <ul class="_1PvbE" role="list" data-component="List">
  152. <li class="" data-component="ListItem">A record 41 per cent of loan applications contain factual inaccuracies</li>
  153. <li class="" data-component="ListItem">The most common fudges are under-representing living costs and financial commitments</li>
  154. <li class="" data-component="ListItem">The banking regulator says it has seen &#8220;no obvious poor-quality lending&#8221;</li>
  155. </ul>
  156. </section>
  157. <p class="_1HzXw">The bank&#8217;s annual survey of around 900 people who took out a mortgage over the past year showed that 41 per cent submitted loan applications that were not completely factually accurate — so-called &#8220;liar loans&#8221;.</p>
  158. <p class="_1HzXw">That is a record high in the seven years UBS has collected this data, up from 38 per cent last year and 27 per cent back when the survey started in 2015.</p>
  159. <p class="_1HzXw">It is noticeable that there was a brief dip during the banking royal commission hearings in 2018, at a time when the banking and financial regulators were also cracking down on risky lending.</p>
  160. <figure class="_2XhY1 _2X-83 g1U-R _3V6uS" role="group" data-print="inline-media" aria-labelledby="100453304" data-component="Figure" data-uri="coremedia://image/100453304">
  161. <div class="_3C2ok" data-component="IntersectionObserver">
  162. <div class="_3C5J1" data-component="AspectRatioContainer"><img decoding="async" class="_1sqAO WIJbJ" src="https://live-production.wcms.abc-cdn.net.au/0c990e2968ef8637ae44a00d64c6657a?src" sizes="100vw" alt="Graph showing proportion of liar loans each year since 2015." data-component="Image" /></div>
  163. </div><figcaption id="100453304" class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _1WKJ_" data-component="Figure__figcaption">Now in its seventh year, the UBS liar loans survey showed a record proportion of factually inaccurate mortgage applications.<span style="color: #8a8a8a; font-size: 0.8125rem;">(</span><span style="font-size: inherit;">Supplied: UBS</span><span style="color: #8a8a8a; font-size: 0.8125rem;">)</span></figcaption></figure>
  164. <p class="_1HzXw">While the majority of those who fudged the figures said their applications were &#8220;mostly factual and accurate&#8221;, just under a third of those who lied to their bank said their application was only &#8220;partially factual and accurate&#8221;, holding at a record high.</p>
  165. <p class="_1HzXw">The most common areas of inaccuracy were under-representing living costs (34 per cent), under-representing financial commitments (28 per cent) and over-representing income (22 per cent).</p>
  166. <p class="_1HzXw">Worryingly, the size of the misrepresentations also went up in 2021.</p>
  167. <p class="_1HzXw">Of those who overstated income, 36 per cent did so by more than a quarter.</p>
  168. <p class="_1HzXw">Likewise, 39 per cent of those understating living costs did so by more than 15 per cent.</p>
  169. <figure class="_2XhY1 _2X-83 g1U-R _3V6uS" role="group" data-print="inline-media" aria-labelledby="100452370" data-component="Figure" data-uri="coremedia://imageproxy/100452370">
  170. <div class="_3C2ok" data-component="IntersectionObserver">
  171. <div class="_3C5J1" data-component="AspectRatioContainer"><img decoding="async" class="_1sqAO WIJbJ" src="https://live-production.wcms.abc-cdn.net.au/c16d7358aa74702fecdc5d49dd89e5f2?impolicy=wcms_crop_resize&amp;cropH=1080&amp;cropW=1620&amp;xPos=150&amp;yPos=0&amp;width=862&amp;height=575" sizes="100vw" alt="Four photos of properties are placed in a grid, with a red silhouette of a house saying 'SOLD' and a key." data-component="Image" /></div>
  172. </div><figcaption id="100452370" class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _1WKJ_" data-component="Figure__figcaption">Australian house prices have posted their biggest increase since 1989, jumping 18.3 per cent over the past year.<span style="color: #8a8a8a; font-size: 0.8125rem;">(</span><span style="font-size: inherit;">ABC News</span><span style="color: #8a8a8a; font-size: 0.8125rem;">)</span></figcaption></figure>
  173. <p class="_1HzXw">UBS said the rising risk of home lending fuelling the current property boom was best captured in a record rise in &#8220;very high&#8221; debt-to-income mortgages — where the borrower owes at least six times what they earn each year — to 21.5 per cent of loans.</p>
  174. <p class="_1HzXw">&#8220;Amid home prices booming 18.3 per cent year-on-year (highest since 1989), we think borrowers are &#8216;chasing the market&#8217; and stretching towards their capacity limit to be able to qualify,&#8221; the report said.</p>
  175. <p class="_1HzXw">This has been aided by a reduction in the interest rate at which loan applications are being assessed, which is now around 2.5 percentage points above actual mortgage rates, down from more than 3 when tougher so-called macroprudential lending rules were last in place.</p>
  176. <figure class="_2XhY1 _2X-83 g1U-R _3V6uS" role="group" data-print="inline-media" aria-labelledby="100453172" data-component="Figure" data-uri="coremedia://image/100453172">
  177. <div class="_3C2ok" data-component="IntersectionObserver">
  178. <div class="_3C5J1" data-component="AspectRatioContainer"><img decoding="async" class="_1sqAO WIJbJ" src="https://live-production.wcms.abc-cdn.net.au/9fa8e48211650e8b7c92ba9d4fb0d680?src" sizes="100vw" alt="UBS graph shows actual home loan rates versus assessment rates." data-component="Image" /></div>
  179. </div><figcaption id="100453172" class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _1WKJ_" data-component="Figure__figcaption">Home loan assessment rates have dropped as interest rates have fallen and as tougher lending standards have been somewhat relaxed.<span style="color: #8a8a8a; font-size: 0.8125rem;">(</span><span style="font-size: inherit;">Supplied: UBS</span><span style="color: #8a8a8a; font-size: 0.8125rem;">)</span></figcaption></figure>
  180. <p class="_1HzXw">As with previous UBS liar loan surveys, borrowers who used mortgage brokers were far more likely to submit inaccurate applications (44 per cent) versus those who applied directly through a bank (29 per cent).</p>
  181. <p class="_1HzXw">In the vast majority of those cases, borrowers said the mortgage broker advised them to falsify their application.</p>
  182. <figure class="_2XhY1 _2X-83 g1U-R _3V6uS" role="group" data-print="inline-media" aria-labelledby="100453280" data-component="Figure" data-uri="coremedia://image/100453280">
  183. <div class="_3C2ok" data-component="IntersectionObserver">
  184. <div class="_3C5J1" data-component="AspectRatioContainer"><img decoding="async" class="_1sqAO WIJbJ" src="https://live-production.wcms.abc-cdn.net.au/1861f12a521eca87c55a0a7292676056?src" sizes="100vw" alt="Graph showing proportion of people where broker or banker suggested lying." data-component="Image" /></div>
  185. </div><figcaption id="100453280" class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _1WKJ_" data-component="Figure__figcaption">The UBS data shows mortgage brokers were far more likely than bankers to suggest putting inaccurate information on the loan application<span style="color: #8a8a8a; font-size: 0.8125rem;">(</span><span style="font-size: inherit;">Supplied: UBS</span><span style="color: #8a8a8a; font-size: 0.8125rem;">)</span></figcaption></figure>
  186. <p class="_1HzXw">Property investors were also more likely to falsify their loan applications (at 53 per cent with one investment property and 57 per cent for those with two) versus owner-occupiers (31 per cent).</p>
  187. <p class="_1HzXw">Buyers of rural and regional property were also more likely to have falsified loan applications, which was a new trend in 2021, perhaps as the level of sea and tree-changing increased.</p>
  188. <h2 class="_3HiYf _2K_6X _1cBaI _2yZBa _2b-O4 _3I3Xh _2uBSR _10YQT _1lh6E" data-component="Heading">Regulator plays down home loan fears</h2>
  189. <p class="_1HzXw">The same morning UBS released its latest findings, banking regulator APRA appeared before the House of Representatives Economics Committee with a very different message.</p>
  190. <p class="_1HzXw">&#8220;The issue of concern at present is that there is an increase in high debt-to-income lending, but it&#8217;s offset against a number of other metrics which are going in a more positive direction from a macroprudential perspective,&#8221; APRA chair Wayne Byres said.</p>
  191. <aside class="_2X-83 g1U-R _1VIKT" data-component="Pullquote">
  192. <blockquote class="_2Bzft">
  193. <p class="_1HzXw">&#8220;Our supervision tells us balance sheets are still strong, lending policies are being sustained, and there&#8217;s no obvious poor-quality lending going on.&#8221;</p>
  194. </blockquote>
  195. </aside>
  196. <p class="_1HzXw">Mr Byres pointed to a decline in high loan-to-valuation ratio and interest-only loans&#8230;</p>
  197. </div>
  198. </div>
  199. </div>
  200. <p>This article is from the ABC news, you can read the full article here:</p>
  201. <p><a href="https://www.abc.net.au/news/2021-09-11/liar-home-loans-mortgage-lending-house-prices/100452322">https://www.abc.net.au/news/2021-09-11/liar-home-loans-mortgage-lending-house-prices/100452322</a></p>
  202. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/liar-loans-risky-mortgages-house-price-boom/">&#8216;Liar loans&#8217; on the rise as risky mortgages drive house price boom</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  203. ]]></content:encoded>
  207. </item>
  208. <item>
  209. <title>Experts warn against resorting to buy now, pay later loans for essentials during lockdown</title>
  210. <link>https://loansnearme.com.au/pay-later-loans/</link>
  212. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  213. <pubDate>Thu, 02 Sep 2021 00:47:42 +0000</pubDate>
  214. <category><![CDATA[Uncategorized]]></category>
  215. <category><![CDATA[afterpay]]></category>
  216. <category><![CDATA[bnpl]]></category>
  217. <category><![CDATA[buy now pay later]]></category>
  218. <category><![CDATA[buy now pay later loans]]></category>
  219. <category><![CDATA[centrelink]]></category>
  220. <category><![CDATA[centrelink income]]></category>
  221. <category><![CDATA[centrelink loans]]></category>
  222. <category><![CDATA[centrelink payments]]></category>
  223. <category><![CDATA[centrelink recipients]]></category>
  224. <category><![CDATA[covid]]></category>
  225. <category><![CDATA[covid-19]]></category>
  226. <category><![CDATA[debt]]></category>
  227. <category><![CDATA[debt collectors]]></category>
  228. <category><![CDATA[government benefits]]></category>
  229. <category><![CDATA[late fees]]></category>
  230. <category><![CDATA[loan payments]]></category>
  231. <category><![CDATA[lockdown]]></category>
  232. <category><![CDATA[mypaynow]]></category>
  233. <category><![CDATA[pay later]]></category>
  234. <category><![CDATA[pay later loans]]></category>
  235. <category><![CDATA[welfare payments]]></category>
  236. <guid isPermaLink="false">https://loansnearme.com.au/?p=2754</guid>
  237.  
  238. <description><![CDATA[<p>Experts warn against resorting to buy now, pay later loans for essentials during lockdown Experts warn against resorting to buy now, pay later loans for essentials during lockdown By David Taylor Experts warn that some Australians waiting on government support could be targeting by lenders.(ABC News: Kit Mochan) Consumer advocates say some lenders are cashing [&#8230;]</p>
  239. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/pay-later-loans/">Experts warn against resorting to buy now, pay later loans for essentials during lockdown</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  240. ]]></description>
  241. <content:encoded><![CDATA[<h1 class="_24eQK _3O3fw _23WqP _2yZBa UOKdn _3I3Xh _2uBSR _10YQT _1lh6E" data-component="Heading">Experts warn against resorting to buy now, pay later loans for essentials during lockdown</h1>
  242. <header>
  243. <div class="_3ANn5">
  244. <h1 class="_24eQK _3O3fw _23WqP _2yZBa UOKdn _3I3Xh _2uBSR _10YQT _1lh6E" data-component="Heading">Experts warn against resorting to buy now, pay later loans for essentials during lockdown</h1>
  245. <div class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _3iFJf" data-component="InfoSource"><span style="font-size: inherit;">By </span><a class="fmhNa nsZdE _2c2Zy _1tOey" style="font-size: inherit;" href="https://www.abc.net.au/news/david-taylor/6529840" data-component="ContentLink" data-uri="coremedia://person/6529840">David Taylor</a></div>
  246. <div class="" data-component="Dateline"></div>
  247. </div>
  248. <div class="vXtst" data-component="FeatureMedia">
  249. <figure class="_2XhY1 _2X-83 g1U-R" role="group" data-print="inline-media" aria-labelledby="100384170" data-component="Figure" data-uri="coremedia://imageproxy/100384170">
  250. <div class="_3C2ok" data-component="IntersectionObserver">
  251. <div class="_3C5J1" data-component="AspectRatioContainer"><img decoding="async" class="_1sqAO WIJbJ" src="https://live-production.wcms.abc-cdn.net.au/fde46a28f8dbbcb383f3449a643b717b?impolicy=wcms_crop_resize&amp;cropH=1997&amp;cropW=3000&amp;xPos=0&amp;yPos=171&amp;width=862&amp;height=575" sizes="100vw" alt="A close-up shot of a pile of unpaid bills in a person's hands with another person leaning over with a pamphlet." data-component="Image" /></div>
  252. </div><figcaption id="100384170" class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _1WKJ_" data-component="Figure__figcaption">Experts warn that some Australians waiting on government support could be targeting by lenders.<cite class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _3gxdk" data-component="Figure__cite">(<span style="font-size: inherit; color: #565656;">ABC News: Kit Mochan</span><span style="font-size: 0.8125rem;">)</span></cite></figcaption></figure>
  253. </div>
  254. <div class="rEfTV" data-component="UtilityBar">
  255. <div class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q PuMA4 _1XTH_" data-component="UtilityBar__flex"></div>
  256. </div>
  257. </header>
  258. <div id="body">
  259. <div class="_8lXP6 OK4xB" data-component="LayoutContainer">
  260. <div class="ZN39J">
  261. <p class="_1HzXw">Consumer advocates say some lenders are cashing in on those facing financial distress while under lockdown conditions.</p>
  262. <section class="_1uHEE _2Mryn _2X-83 g1U-R v-gc3" role="contentinfo" aria-label="key points" data-component="KeyPoints">
  263. <h2 class="wYJvU _1o1Da _1cBaI _2yZBa _18377 _3I3Xh _2uBSR _10YQT _1lh6E" data-component="Heading">Key points:</h2>
  264. <ul class="_1PvbE" role="list" data-component="List">
  265. <li class="" data-component="ListItem">
  266. <p class="_1HzXw">The Consumer Action Law Centre believes lenders are taking advantage of people still waiting on government support</p>
  267. </li>
  268. <li class="" data-component="ListItem">
  269. <p class="_1HzXw">Financial counsellor Peter Thompson says he has spoken to people turning to buy now, pay later lenders to pay for essentials</p>
  270. </li>
  271. <li class="" data-component="ListItem">
  272. <p class="_1HzXw">Afterpay says it has never enforced a debt nor sold debt to a collection agency</p>
  273. </li>
  274. </ul>
  275. </section>
  276. <p class="_1HzXw">Financial counsellor Peter Thompson has been fielding calls from families in lockdown on the edge of going broke.</p>
  277. <p class="_1HzXw">&#8220;Basically there&#8217;s a state of shell shock out there from people,&#8221; he said.</p>
  278. <p class="_1HzXw">He said those desperate for cash are using what he describes as &#8220;quick, easy and slick&#8221; buy now, pay later apps, like Afterpay, which you can download to your smartphone in minutes.</p>
  279. <p class="_1HzXw">&#8220;People do use these products to put food on the table,&#8221; Mr Thompson said.</p>
  280. <p class="_1HzXw">State and federal governments are offering income support for businesses and households.</p>
  281. <p class="_1HzXw">But the demand for help remains high with Service New South Wales still receiving thousands of applications a day — a total of 245,000 applications since July 19.</p>
  282. <p class="_1HzXw">Financial Rights Legal Centre senior policy officer Julia Davis said, for some struggling to put food on the table, the grants are not coming fast enough.</p>
  283. <p class="_1HzXw">&#8220;It&#8217;s because they&#8217;re not getting the support they need from the government,&#8221; she said.</p>
  284. <p class="_1HzXw">&#8220;You know this is a really hard time for anyone in NSW at the moment but especially those in Sydney who have been in hard lockdown for weeks and weeks.</p>
  285. <p class="_1HzXw">&#8220;If people aren&#8217;t getting the support they need from the government, they&#8217;re going to turn to any option they have to feed their families.&#8221;</p>
  286. <figure class="_2XhY1 _2X-83 g1U-R _3V6uS" role="group" data-print="inline-media" aria-labelledby="100384906" data-component="Figure" data-uri="coremedia://imageproxy/100384906">
  287. <div class="_3C2ok" data-component="IntersectionObserver">
  288. <div class="_3C5J1" data-component="AspectRatioContainer"><img decoding="async" class="_1sqAO WIJbJ" src="https://live-production.wcms.abc-cdn.net.au/91e9dfee459e119079b0829d05352a8b?impolicy=wcms_crop_resize&amp;cropH=700&amp;cropW=1050&amp;xPos=0&amp;yPos=121&amp;width=862&amp;height=575" sizes="100vw" alt="Julia Davis smiling and wearing glasses on a white background." data-component="Image" /></div>
  289. </div><figcaption id="100384906" class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _1WKJ_" data-component="Figure__figcaption">Julia Davis said those still waiting on government support payments could be lured into using loans to cover essentials.<span style="color: #8a8a8a; font-size: 0.8125rem;">(</span><span style="font-size: inherit;">Supplied</span><span style="color: #8a8a8a; font-size: 0.8125rem;">)</span></figcaption></figure>
  290. <p class="_1HzXw">Service NSW is still working through a backlog of applications, with roughly 75 per cent of total applications now approved or paid.</p>
  291. <h2 class="_3HiYf _2K_6X _1cBaI _2yZBa _2b-O4 _3I3Xh _2uBSR _10YQT _1lh6E" data-component="Heading">Afterpay says fees aren&#8217;t a significant revenue stream</h2>
  292. <p class="_1HzXw">Gerard Brody from the Consumer Action Law Centre believes buy now, pay later lenders are taking advantage of the delays in government payments.</p>
  293. <aside class="_2X-83 g1U-R v-gc3 _299hJ" data-component="RelatedCard" data-uri="coremedia://article/100363358">
  294. <div class="RCbfz dA4xg _2q0YW"></div>
  295. </aside>
  296. <p class="_1HzXw">&#8220;And [they are] not really dealing with the underlying causes of people being paid on time or getting money when they need it.&#8221;</p>
  297. <p class="_1HzXw">He said the firms offering quick lines of credit stand to make tens of millions of dollars in late fees as borrowers on tight budgets struggle to make good on payments.</p>
  298. <p class="_1HzXw">&#8220;It&#8217;s certainly the case that buy now, pay later providers, such as Afterpay, are making money from late fees,&#8221; Mr Brody said.</p>
  299. <p class="_1HzXw">&#8220;They&#8217;ve disclosed tens of millions of dollars into their coffers from late fees each year as part of their annual report.&#8221;</p>
  300. <p class="_1HzXw">Afterpay rejects this and told the ABC that fees are not a major revenue generator, rather, most of its earnings, come from fee-paying merchants who accept payments from Afterpay users.</p>
  301. <p class="_1HzXw">Buy now, pay later businesses need to comply with responsible lending obligations but they are not bound by the same credit laws as banks, because they don&#8217;t charge interest on their loans.</p>
  302. <p class="_1HzXw">Mr Brody said the legal wiggle room has opened up a market for so-called wage advance companies, who provide customers with a portion of their wages ahead of time for a fee.</p>
  303. <p class="_1HzXw">Some wage advance companies are now spruiking lines of credit to anyone with regular income, including those on welfare payments, according to Mr Thompson.</p>
  304. <figure class="_2XhY1 _2X-83 g1U-R v-gc3" role="group" data-print="inline-media" aria-labelledby="100384878" data-component="Figure" data-uri="coremedia://imageproxy/100384878">
  305. <div class="_3C2ok" data-component="IntersectionObserver">
  306. <div class="_3C5J1" data-component="AspectRatioContainer"><img decoding="async" class="_1sqAO WIJbJ" src="https://live-production.wcms.abc-cdn.net.au/cf5c641e6b199ab6f824103c8da272b6?impolicy=wcms_crop_resize&amp;cropH=944&amp;cropW=944&amp;xPos=0&amp;yPos=136&amp;width=862&amp;height=862" sizes="100vw" alt="Peter Thompson, a financial counsellor, wearing glasses and smiling." data-component="Image" /></div>
  307. </div><figcaption id="100384878" class="_3rsys _1srG4 _3PhF6 _10YQT _2Cu8q _1WKJ_" data-component="Figure__figcaption">Financial counsellor Peter Thompson said he has spoken to people using buy now, pay later loans to put food on the table.<span style="color: #8a8a8a; font-size: 0.8125rem;">(</span><span style="font-size: inherit;">Supplied</span><span style="color: #8a8a8a; font-size: 0.8125rem;">)</span></figcaption></figure>
  308. <aside class="_2X-83 g1U-R _1VIKT" data-component="Pullquote">
  309. <blockquote class="_2Bzft">
  310. <p class="_1HzXw">&#8220;The wage advance lenders do explicitly market themselves to Centrelink recipients,&#8221; he said.</p>
  311. </blockquote>
  312. </aside>
  313. <p class="_1HzXw">&#8220;These companies are targeting that demographic.</p>
  314. <p class="_1HzXw">&#8220;As long as you&#8217;ve got a regular deposit being made into your bank account, whether that&#8217;s from earned income or Centrelink income, you can borrow a proportion of that deposited amount upfront for a 5 per cent fee.&#8221;</p>
  315. <p class="_1HzXw">EverydayPay is an example of a wage advance provider and offers to pay customers&#8217; wages early.</p>
  316. <p class="_1HzXw">Its website states that &#8220;just because you&#8217;re receiving a government benefit, doesn&#8217;t mean you can&#8217;t get access to daily payments.&#8221;</p>
  317. <figure class="_2XhY1 _2X-83 g1U-R _3V6uS" role="group" data-print="inline-media" aria-labelledby="100384162" data-component="Figure" data-uri="coremedia://imageproxy/100384162"><img decoding="async" class="alignnone size-medium wp-image-2759" src="https://loansnearme.com.au/wp-content/uploads/2021/09/loans-near-me-centrelink-loan-repayments-300x150.png" alt="Centrelink loan payments loans repayments" width="300" height="150" srcset="https://loansnearme.com.au/wp-content/uploads/2021/09/loans-near-me-centrelink-loan-repayments-300x150.png 300w, https://loansnearme.com.au/wp-content/uploads/2021/09/loans-near-me-centrelink-loan-repayments.png 600w" sizes="(max-width: 300px) 100vw, 300px" /></figure>
  318. <p class="_1HzXw">MyPayNow, another wage advance provider, accepts Centrelink payments as proof of income, as long as you also have paid part-time work.</p>
  319. <h2 class="_3HiYf _2K_6X _1cBaI _2yZBa _2b-O4 _3I3Xh _2uBSR _10YQT _1lh6E" data-component="Heading">What if loans cannot be repaid?</h2>
  320. <p class="_1HzXw">It raises an obvious question.</p>
  321. <p class="_1HzXw">What happens if you ultimately can&#8217;t make good on your loan?</p>
  322. <aside class="_2X-83 g1U-R v-gc3 _299hJ" data-component="RelatedCard" data-uri="coremedia://article/100356830">
  323. <div class="RCbfz dA4xg _2q0YW">
  324. <div class="_2w1Dd"><span style="font-size: inherit;">Mr Thompson said some of these companies will try to sell your belongings through debt collectors&#8230;</span></div>
  325. </div>
  326. </aside>
  327. </div>
  328. </div>
  329. </div>
  330. <p>This article is from the ABC news, you can read the full article here:</p>
  331. <p><a href="https://www.abc.net.au/news/2021-08-18/buy-now-pay-later-used-to-pay-for-essentials-covid-lockdown/100383248" target="_blank" rel="noopener">https://www.abc.net.au/news/2021-08-18/buy-now-pay-later-used-to-pay-for-essentials-covid-lockdown/100383248</a></p>
  332. <p>&nbsp;</p>
  333. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/pay-later-loans/">Experts warn against resorting to buy now, pay later loans for essentials during lockdown</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  334. ]]></content:encoded>
  338. </item>
  339. <item>
  340. <title>Mortgage costs to jump as interest rate rises loom, warns CBA</title>
  341. <link>https://loansnearme.com.au/mortgage-costs-to-jump-as-interest-rate-rises-loom-warns-cba/</link>
  343. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  344. <pubDate>Sat, 10 Jul 2021 12:02:14 +0000</pubDate>
  345. <category><![CDATA[Bank]]></category>
  346. <category><![CDATA[CBA]]></category>
  347. <category><![CDATA[Fixed Rate]]></category>
  348. <category><![CDATA[Fixed Rate Loan]]></category>
  349. <category><![CDATA[Interest rates]]></category>
  350. <category><![CDATA[Rates]]></category>
  351. <category><![CDATA[cba]]></category>
  352. <category><![CDATA[debt]]></category>
  353. <category><![CDATA[household debt]]></category>
  354. <category><![CDATA[interest rate]]></category>
  355. <category><![CDATA[interest rates]]></category>
  356. <category><![CDATA[mortgage]]></category>
  357. <category><![CDATA[Reserve Bank]]></category>
  358. <category><![CDATA[rise]]></category>
  359. <guid isPermaLink="false">https://loansnearme.com.au/?p=2734</guid>
  360.  
  361. <description><![CDATA[<p>Mortgage costs to jump as interest rate rises loom, warns CBA ahead of Reserve Bank meeting By business reporter Michael Janda CBA is expecting interest rates to rise earlier and faster than many other institutions. (ABC News: John Gunn) Australians could soon be paying more than $26 billion a year in extra mortgage repayments as interest [&#8230;]</p>
  362. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/mortgage-costs-to-jump-as-interest-rate-rises-loom-warns-cba/">Mortgage costs to jump as interest rate rises loom, warns CBA</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  363. ]]></description>
  364. <content:encoded><![CDATA[<h1 class="_3mBrr I7ej6 LTJIg _3qPMD _2hFDS _2Od9e _582YK _2eB4R _3Z8IO" data-component="Heading">Mortgage costs to jump as interest rate rises loom, warns CBA ahead of Reserve Bank meeting</h1>
  365. <header>
  366. <div class="_3ANn5">
  367. <div>
  368. <p>By business reporter <a class="_2msBb vOtE5 _1wNLk _3i4V4" href="https://www.abc.net.au/news/michael-janda/166854" data-component="ContentLink" data-uri="coremedia://person/166854">Michael Janda</a></p>
  369. </div>
  370. <div class="" data-component="PublishedDate"></div>
  371. </div>
  372. <div class="_2iR5p" data-component="FeatureMedia">
  373. <figure class="_2FoxC _3fXyV _19G7j" role="group" data-print="inline-media" aria-labelledby="100268436" data-component="Figure" data-uri="coremedia://imageproxy/100268436">
  374. <div class="_3-6ik" data-component="IntersectionObserver">
  375. <div class="CtQll" data-component="AspectRatioContainer"><img decoding="async" class="_2clwR YdWce" src="https://live-production.wcms.abc-cdn.net.au/10dbdbbb984e425ac1ca2a53319d6b95?impolicy=wcms_crop_resize&amp;cropH=2700&amp;cropW=4800&amp;xPos=0&amp;yPos=2&amp;width=862&amp;height=485" sizes="100vw" alt="A poster at an NAB branch advertises a 1.89pc two-year fixed rate with a house in the image." data-component="Image" /></div>
  376. </div><figcaption id="100268436" class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT _3BXCT" data-component="Figure__figcaption">CBA is expecting interest rates to rise earlier and faster than many other institutions. <span style="color: #8a8a8a; font-size: 0.8125rem;">(</span><span style="font-size: inherit;">ABC News: John Gunn)</span></figcaption></figure>
  377. </div>
  378. <div class="_254Kx" data-component="UtilityBar">
  379. <div class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT _3Lhzj _2TRXS" data-component="UtilityBar__flex"></div>
  380. </div>
  381. </header>
  382. <div id="body">
  383. <div class="YDnEu OK4xB" data-component="LayoutContainer">
  384. <div>
  385. <p class="_1HzXw">Australians could soon be paying more than $26 billion a year in extra mortgage repayments as interest rates begin to &#8220;normalise&#8221;, but the Commonwealth Bank argues there are several reasons why most households will be able to cope just fine.</p>
  386. <section class="tpUu7 jSIt7 _3fXyV _19G7j _2wBlx" role="contentinfo" aria-label="key points" data-component="KeyPoints" data-uri="coremedia://teaser/100269012">
  387. <h2 class="_1BrKg _1MOAE _3XvRm _3qPMD _1ehlr _2Od9e _582YK _2eB4R _3Z8IO" data-component="Heading">Key points:</h2>
  388. <ul class="_29Vqe" role="list" data-component="List">
  389. <li class="" data-component="ListItem">The RBA&#8217;s interest rate decision will be announced at 2:30pm AEST, followed by a rare press conference from the governor</li>
  390. <li class="" data-component="ListItem">No-one is expecting a rate rise, but there are likely to be announcements about the future of other measures that have kept mortgage rates very low</li>
  391. <li class="" data-component="ListItem">CBA says households should be able to cope with a forecast rise in the cash rate from 0.1 to 1.25 per cent over the next two-and-a-bit years</li>
  392. </ul>
  393. </section>
  394. <p class="_1HzXw">The Reserve Bank&#8217;s next rates decision, to be announced today at 2:30pm AEST, will be widely watched, but not because anyone expects it to move the official cash rate, sitting at a record low 0.1 per cent.</p>
  395. <p class="_1HzXw">That doesn&#8217;t mean, however, that the Reserve&#8217;s actions will leave interest rates unchanged.</p>
  396. <p class="_1HzXw">It&#8217;s widely expected to tweak its government bond-buying program, which has been a major factor pushing mortgage rates — particularly fixed rates — to record lows.</p>
  397. <p class="_1HzXw">Even ahead of the announcement, many longer-term (three-year-plus) fixed mortgage rates have been rising, with NAB the latest major bank to edge its two, three and four-year home loans as much as 0.1 of a percentage point higher.</p>
  398. <p class="_1HzXw">While it may not be flagged, even in a rare press conference by Reserve Bank governor Philip Lowe after the meeting, a growing number of analysts are expecting interest rate rises before the RBA&#8217;s previous timetable of not before 2024.</p>
  399. <h2 class="_2O2Ne _2El7j _3XvRm _3qPMD _2rdcP _2Od9e _582YK _2eB4R _3Z8IO" data-component="Heading">Australians could be paying $26b more interest by 2023</h2>
  400. <p class="_1HzXw">The Commonwealth Bank is foremost amongst them, with its head of Australian economics <a class="_2msBb vOtE5 _1wNLk _3i4V4" href="https://www.abc.net.au/news/2021-06-23/interest-rates-to-rise-next-year-commbank-warns/100236742" data-component="ContentLink" data-uri="coremedia://article/100236742">Gareth Aird having recently tipped the first rate hike for November 2022</a>, with several more to leave the cash rate at 1.25 per cent before the end of 2023.</p>
  401. <aside class="_3fXyV _19G7j _2wBlx _2_JPR" data-component="RelatedCard" data-uri="coremedia://article/100231178">
  402. <div class="Bmdjh _2tzsR _1sVhj">
  403. <h3 class="_1BrKg _1MOAE _3XvRm _3qPMD _1ehlr _2Od9e _582YK _2eB4R _3Z8IO ILWFw" data-component="Heading">Chances are interest rate hikes will be much sooner than expected</h3>
  404. <div class="_3msAz">
  405. <div class="_3-6ik" data-component="IntersectionObserver">
  406. <div class="CtQll" data-component="AspectRatioContainer"><img decoding="async" class="_2clwR YdWce _10f2V" src="https://live-production.wcms.abc-cdn.net.au/495e0bb140120cc3853ee9d8a351283f?impolicy=wcms_crop_resize&amp;cropH=1927&amp;cropW=3425&amp;xPos=665&amp;yPos=987&amp;width=862&amp;height=485" alt="A bank poster says &quot;lock it in baby&quot; advertising a 1.89pc fixed interest rate." data-component="Image" /></div>
  407. </div>
  408. <p class="W-g-R _3XvRm _22LKJ _2eB4R _3PR0j" data-component="Typography">One thing is becoming clearer by the day — interest rates, currently at the lowest level in history, have bottomed, writes Ian Verrender.</p>
  409. <p><span class="_3EPb_"><span class="_2O40L _3XvRm _22LKJ _2eB4R" data-component="Typography">Read more</span></span></div>
  410. </div>
  411. </aside>
  412. <p class="_1HzXw">His colleague Belinda Allen has followed up with an analysis of what that might mean for Australian households now accustomed to interest rates falling for the past decade.</p>
  413. <p class="_1HzXw">The most recent figures from the global Bank for International Settlements from the end of last year show Australian households spent 13.6 per cent of their income on home loans.</p>
  414. <p class="_1HzXw">(Remember, only about a third of households have home loans, and many of those have paid off large chunks of their debt.)</p>
  415. <p class="_1HzXw">That&#8217;s down from a peak of 17.6 per cent in the middle of 2008, just before the global financial crisis, when the RBA&#8217;s cash rate was at 7.25 per cent.</p>
  416. <p class="_1HzXw">With the RBA&#8217;s cash rate now at just 0.1 per cent, you might have thought home loan repayments would have fallen more, but in the intervening years, those low and falling rates have encouraged people to take on far larger debts for much more expensive homes leaving a lot more principal to be repaid.</p>
  417. <p class="_1HzXw">Excluding principal repayments, the interest on mortgage debt currently equates to just 3.1 per cent of household incomes. The peak in 2008 was 8.5 per cent and the recent average is around 5 per cent.</p>
  418. <figure class="_2FoxC _3fXyV _19G7j _2wBlx" role="group" data-print="inline-media" aria-labelledby="100269048" data-component="Figure" data-uri="coremedia://image/100269048">
  419. <div class="_3-6ik" data-component="IntersectionObserver">
  420. <div class="CtQll" data-component="AspectRatioContainer"><img decoding="async" class="_2clwR YdWce" src="https://live-production.wcms.abc-cdn.net.au/46ade22477c7ac9e94d799f6fcd67936?src" sizes="100vw" alt="Households are paying the smallest percentage of their income in interest costs since the early 2000s." data-component="Image" /></div>
  421. </div><figcaption id="100269048" class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT _3BXCT" data-component="Figure__figcaption">Households are paying the smallest percentage of their income in interest costs since the early 2000s.<cite class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT _1SWGZ" data-component="Figure__cite">(</cite>Supplied: CBA</p>
  422. <p><cite class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT _1SWGZ" data-component="Figure__cite">)</cite></figcaption></figure>
  423. <p class="_1HzXw">CBA notes that, because of the rise in debt, a cash rate of 1.25 per cent will leave mortgage rates at levels that will again suck up around 5 per cent of household income in interest payments.</p>
  424. <p class="_1HzXw">In other words, we&#8217;ll go from having some of the lowest mortgage repayments we&#8217;ve had in the past two decades to something around average.</p>
  425. <p class="_1HzXw">According to the national accounts data that CBA&#8217;s analysis is partly based on, Australians spent around $10.7 billion in the March quarter on property interest.</p>
  426. <p class="_1HzXw">The kind of rate increases CBA is forecasting would see that interest bill rising by about $26 billion per year — a lot of money that Australian households will not be spending at the shops, on holidays or going out.</p>
  427. <h2 class="_2O2Ne _2El7j _3XvRm _3qPMD _2rdcP _2Od9e _582YK _2eB4R _3Z8IO" data-component="Heading">Australians can cope with a &#8216;modest rise&#8217; in interest rates</h2>
  428. <p class="_1HzXw">However, Ms Allen points out there are several offsetting factors that should soften the blow of rising interest rates for many households&#8230;</p>
  429. </div>
  430. <p>This article is from the ABC, you can read the full article here:</p>
  431. <p><a href="https://www.abc.net.au/news/2021-07-06/mortgage-costs-to-jump-as-interest-rates-rise-cba/100268416" target="_blank" rel="noopener">https://www.abc.net.au/news/2021-07-06/mortgage-costs-to-jump-as-interest-rates-rise-cba/100268416</a></p>
  432. </div>
  433. <p>&nbsp;</p>
  434. </div>
  435. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/mortgage-costs-to-jump-as-interest-rate-rises-loom-warns-cba/">Mortgage costs to jump as interest rate rises loom, warns CBA</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  436. ]]></content:encoded>
  440. </item>
  441. <item>
  442. <title>Getting a home loan when self-employed or work on a casual and contract basis</title>
  443. <link>https://loansnearme.com.au/getting-a-home-loan-when-self-employed-or-work-on-a-casual-and-contract-basis/</link>
  445. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  446. <pubDate>Mon, 05 Jul 2021 12:23:51 +0000</pubDate>
  447. <category><![CDATA[Applications]]></category>
  448. <category><![CDATA[Home Loan]]></category>
  449. <category><![CDATA[getting a loan]]></category>
  450. <category><![CDATA[home loan]]></category>
  451. <category><![CDATA[home loan casual worker]]></category>
  452. <category><![CDATA[home loan contractor]]></category>
  453. <category><![CDATA[home loan self -employed]]></category>
  454. <guid isPermaLink="false">https://loansnearme.com.au/?p=2742</guid>
  455.  
  456. <description><![CDATA[<p>Getting a home loan when self-employed or work on a casual and contract basis ABC Everyday  By Ginger Gorman As someone working primarily on a contract and casual basis, Melanie says it was impossible to get a clear picture of how to secure a loan.(Supplied: Jill Kerswill) For Melanie, owning her own home — and getting [&#8230;]</p>
  457. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/getting-a-home-loan-when-self-employed-or-work-on-a-casual-and-contract-basis/">Getting a home loan when self-employed or work on a casual and contract basis</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  458. ]]></description>
  459. <content:encoded><![CDATA[<div class="_1CxI-">
  460. <header class="sJobt" data-component="DetailHeader">
  461. <div class="ccOpQ">
  462. <h1 class="_3AxHg R6vKg SdckL nh7Bx _3F_tg _1-F4D _582YK _2eB4R _3Z8IO title-padding-top-default" data-component="Heading">Getting a home loan when self-employed or work on a casual and contract basis</h1>
  463. <div class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT NxB15" data-component="InfoSource"><a class="_2msBb vOtE5 _1wNLk _3i4V4 _1tAZ1" href="https://www.abc.net.au/everyday/" data-component="Link">ABC Everyday</a></div>
  464. <p><span class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT" data-component="Text" aria-hidden="true"> </span><span class="W-g-R _3XvRm _3BwtN _2eB4R _3qdyT _7kwJ9" data-component="Byline"><span class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT" data-component="Text">By Ginger Gorman</span></span></div>
  465. <div class="_1AWwd">
  466. <figure class="_2FoxC _3fXyV _19G7j" role="group" data-print="inline-media" aria-labelledby="100240942" data-component="Figure" data-uri="coremedia://imageproxy/100240942">
  467. <div class="_3-6ik" data-component="IntersectionObserver">
  468. <div class="CtQll" data-component="AspectRatioContainer"><img decoding="async" class="_2clwR YdWce" src="https://live-production.wcms.abc-cdn.net.au/eb56388d92a9a6be1e3cd0255221b789?impolicy=wcms_crop_resize&amp;cropH=2426&amp;cropW=4313&amp;xPos=311&amp;yPos=802&amp;width=862&amp;height=485" sizes="100vw" alt="Melanie sitting on steps in an avocado print dress beside her white dog, in story about getting mortgage when working contracts." data-component="Image" /></div>
  469. </div><figcaption id="100240942" class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT _3BXCT" data-component="Figure__figcaption">As someone working primarily on a contract and casual basis, Melanie says it was impossible to get a clear picture of how to secure a loan.<cite class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT _1SWGZ" data-component="Figure__cite">(<span style="font-size: inherit; color: #565656;">Supplied: Jill Kerswill</span><span style="font-size: 0.8125rem;">)</span></cite></figcaption></figure>
  470. </div>
  471. </header>
  472. </div>
  473. <div class="_254Kx" data-component="UtilityBar">
  474. <div class="W-g-R _14nkQ _3BwtN _2eB4R _3qdyT _3Lhzj _2xr9C" data-component="UtilityBar__flex"></div>
  475. </div>
  476. <div class="YDnEu _1Mi03" data-component="LayoutContainer">
  477. <div class="_3jBoE y9-02" data-component="GridRow">
  478. <div class="_3zfo9">
  479. <div class="_25T_t">
  480. <div>
  481. <p class="_3mBrr _3jn4W LTJIg _2rdcP _3BwtN _2eB4R _3X_Mb" data-component="Standfirst">For Melanie, owning her own home — and getting a loan in her own name — was a hard four-year journey.</p>
  482. <p>The 38-year-old creative writing lecturer jokes that it took her &#8220;47 jobs&#8221; and working up to 100 hours per week without taking holidays to finally secure her three-bedroom Brisbane Queenslander in 2019.</p>
  483. <p>&#8220;I&#8217;m exaggerating, but if I went through my payslips and [short-term teaching] contracts with the different universities, I probably did technically have about 47 jobs,&#8221; she says.</p>
  484. <p>&#8220;Every contract that you do counts as another job with the bank.&#8221;</p>
  485. <p>As someone working primarily on a contract and casual basis, Melanie says it was impossible to get a clear picture of how to secure a loan.</p>
  486. <p>She says her broker initially asked her to save $10,000 as a home deposit but when she reached that goal, he told her she needed a further $5,000.</p>
  487. <p>&#8220;I used to get very frustrated … It&#8217;s very hard to see what you need to achieve,&#8221; she says.</p>
  488. <h2 class="_3mBrr _2El7j LTJIg _3qPMD _2rdcP _2Od9e _582YK _2eB4R _3Z8IO" data-component="Heading">Why it&#8217;s harder in the gig economy, without a full-time job</h2>
  489. <p>Scott Malcolm has been a financial planner for more than 20 years.</p>
  490. <p>&#8220;The trouble with self-employed [people] or those in the gig economy,&#8221; he says, &#8220;is that banks often see them as &#8216;more complex,&#8217; as they can&#8217;t just grab a payslip and assess regular income.</p>
  491. <p>&#8220;[In these cases] banks will often need a few years of tax return history and also then tax reporting, such as BAS statements, so they can try to fit it into their business rules for lending.&#8221;</p>
  492. <p>Melanie says although she continually earned about $90,000 per year, the banks viewed her contract teaching work as insecure. So she worked a permanent part-time job in marketing, on top of her teaching.</p>
  493. <p>&#8220;I held onto it because it was the job that made me look better on paper … [although] it was not in what I wanted to be doing,&#8221; she says.</p>
  494. <p>Mr Malcolm believes the <a class="_2msBb vOtE5 _1wNLk _3i4V4" href="https://financialservices.royalcommission.gov.au/Pages/default.html" data-component="ContentLink">Royal Commission into the Banking and Financial Services</a> sectors has made things harder too.</p>
  495. <p>&#8220;The rules are now much stricter,&#8221; he says.</p>
  496. <p>&#8220;Banks can&#8217;t give out loans as easily. They need to dot a lot more i&#8217;s and cross a lot more t&#8217;s.&#8221;</p>
  497. <p>He also says some people applying for loans are finding the process is taking, &#8220;much longer than usual … due to historically low interest rates and record number of loan applications being submitted to lenders&#8221;.</p>
  498. <p>&#8220;In this current environment, lending assessment teams are under pressure and therefore if a loan is missing any documents that are required, the application just goes to the bottom of the pile.&#8221;</p>
  499. <aside class="_3fXyV _19G7j _2wBlx _2_JPR" data-component="RelatedCard" data-uri="coremedia://article/100240612">
  500. <div class="Bmdjh _2tzsR _1sVhj">
  501. <h3 class="_1BrKg _1MOAE _3XvRm _3qPMD _1ehlr _2Od9e _582YK _2eB4R _3Z8IO ILWFw" data-component="Heading">Refinancing and mortgage brokers</h3>
  502. <div class="_3msAz">
  503. <div class="_3-6ik" data-component="IntersectionObserver">
  504. <div class="CtQll" data-component="AspectRatioContainer"><img decoding="async" class="_2clwR YdWce _10f2V" src="https://live-production.wcms.abc-cdn.net.au/9198409ca81f371863cca0a9eb4561db?impolicy=wcms_crop_resize&amp;cropH=1125&amp;cropW=2000&amp;xPos=0&amp;yPos=0&amp;width=862&amp;height=485" alt="Two men on a bright rooftop looking at a grey laptop." data-component="Image" /></div>
  505. </div>
  506. <p class="W-g-R _3XvRm _22LKJ _2eB4R _3PR0j" data-component="Typography">If you&#8217;re looking to refinance your home loan, should you use a mortgage broker? We look at the pros and cons to help you make an informed decision.</p>
  507. <p><span class="_3EPb_"><span class="_2O40L _3XvRm _22LKJ _2eB4R" data-component="Typography">Read more</span></span></div>
  508. </div>
  509. </aside>
  510. <h2 class="_3mBrr _2El7j LTJIg _3qPMD _2rdcP _2Od9e _582YK _2eB4R _3Z8IO" data-component="Heading">Focus on risk assessment makes it harder with less secure income</h2>
  511. <p>Melanie also says that she found the process sexist.</p>
  512. <p>Mortgage brokers, real estate agents and banks constantly told her: &#8220;Oh, but when you get married, you could do this … Why don&#8217;t you leave it three or four years and just see if you could have a double income?&#8221;</p>
  513. <p>Mr Malcolm says that the system is not designed to be sexist, but it is &#8220;created around &#8216;risk assessment&#8217; and income security is not weighted towards single people or those in the gig economies&#8221;.</p>
  514. <p>Therefore, this process ends up being weighted against not just those in the gig economy but also women, because they are far more likely to <a class="_2msBb vOtE5 _1wNLk _3i4V4" href="https://www.abc.net.au/news/2020-05-24/coronavirus-has-set-back-progress-for-women-workplace-equality/12268742" data-component="ContentLink" data-uri="coremedia://article/12268742">have insecure income</a>.</p>
  515. <p>Melanie, who is Indigenous, says the bank systems are also disadvantageous to Indigenous people.</p>
  516. <p>&#8220;I think about the hurdles I had to jump through, and how traumatic the experience of dealing with the banks was for me,&#8221; she says.</p>
  517. <p>&#8220;It&#8217;s little wonder the dream of owning a home is inaccessible to many others.&#8221;</p>
  518. <h2 class="_3mBrr _2El7j LTJIg _3qPMD _2rdcP _2Od9e _582YK _2eB4R _3Z8IO" data-component="Heading">What Melanie did to own her home</h2>
  519. <p>Melanie says having a house of her own was about more than just an investment. It was about making a home for herself.</p>
  520. <p>&#8220;I have always wanted to buy my own home … and have a space for everything in my house and have my own things around me,&#8221; she says.</p>
  521. <p>&#8220;I&#8217;m really into vintage and retro stuff, so I wanted to decorate the way I wanted to decorate.</p>
  522. <p>&#8220;I decided I would try and show the bank that actually I could live, pay all of my bills, and expenses that included my rent, my power, my private health insurance, all of those things off that one permanent part-time job.&#8221;</p>
  523. <p>This article is from the ABC everyday, you can read the full article here:</p>
  524. <p><a href="https://www.abc.net.au/everyday/getting-home-loan-when-self-employed-casual-or-contract-basis/100240526" target="_blank" rel="noopener">https://www.abc.net.au/everyday/getting-home-loan-when-self-employed-casual-or-contract-basis/100240526</a></p>
  525. </div>
  526. </div>
  527. </div>
  528. </div>
  529. </div>
  530. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/getting-a-home-loan-when-self-employed-or-work-on-a-casual-and-contract-basis/">Getting a home loan when self-employed or work on a casual and contract basis</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  531. ]]></content:encoded>
  535. </item>
  536. <item>
  537. <title>Home loans buoyant, but investors subdued</title>
  538. <link>https://loansnearme.com.au/home-loans-buoyant-but-investors-subdued/</link>
  540. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  541. <pubDate>Fri, 02 Jul 2021 12:12:30 +0000</pubDate>
  542. <category><![CDATA[ACT]]></category>
  543. <category><![CDATA[Home Loans]]></category>
  544. <category><![CDATA[State]]></category>
  545. <category><![CDATA[ACCC]]></category>
  546. <category><![CDATA[act]]></category>
  547. <category><![CDATA[apra]]></category>
  548. <category><![CDATA[asic]]></category>
  549. <category><![CDATA[australian prudential regulation authority]]></category>
  550. <category><![CDATA[australian securities and investments commission]]></category>
  551. <category><![CDATA[canberra]]></category>
  552. <category><![CDATA[council of financial regulators]]></category>
  553. <category><![CDATA[financial regulators]]></category>
  554. <category><![CDATA[investors]]></category>
  555. <category><![CDATA[mortgage]]></category>
  556. <category><![CDATA[rba]]></category>
  557. <category><![CDATA[treasury]]></category>
  558. <guid isPermaLink="false">https://loansnearme.com.au/?p=2740</guid>
  559.  
  560. <description><![CDATA[<p>Home loans buoyant, but investors subdued Colin Brinsden, AAP Economics and Business Correspondent  Despite ultra-low lending rates, 20 per cent of Australians are estimated as under mortgage stress. The amount of outstanding mortgages in Australia grew by the fastest monthly pace in four years. But economists doubt financial regulators will be too concerned at this [&#8230;]</p>
  561. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/home-loans-buoyant-but-investors-subdued/">Home loans buoyant, but investors subdued</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  562. ]]></description>
  563. <content:encoded><![CDATA[<header class="article__header">
  564. <h1 class="name headline">Home loans buoyant, but investors subdued</h1>
  565. <div class="article__information">
  566. <div class="signature">
  567. <div class="signature__info">
  568. <ul>
  569. <li class="signature__name">
  570. <h5>Colin Brinsden, AAP Economics and Business Correspondent</h5>
  571. </li>
  572. </ul>
  573. </div>
  574. </div>
  575. <div class="article__activity">
  576. <div class="article__comments"></div>
  577. </div>
  578. </div>
  579. </header>
  580. <div class="story">
  581. <div class="sticky-container">
  582. <div class="article__body news-article-body">
  583. <div class="lead-image media">
  584. <div class="story-image__aspect"><picture><source srcset="/images/transform/v1/crop/frm/silverstone-feed-data/e3272061-602d-47e9-b590-523abba84438.jpg/r0_0_800_600_w576_h298_fmax.jpg" media="(max-width: 767px)" /><img decoding="async" class="lead-image__image responsive" title="Despite ultra-low lending rates, 20 per cent of Australians are estimated as under mortgage stress." src="https://www.canberratimes.com.au/images/transform/v1/crop/frm/silverstone-feed-data/e3272061-602d-47e9-b590-523abba84438.jpg/r0_0_800_600_w1200_h678_fmax.jpg" alt="Despite ultra-low lending rates, 20 per cent of Australians are estimated as under mortgage stress." /></picture></div>
  585. <p><i class="fa fa-image story-image__icon"></i> Despite ultra-low lending rates, 20 per cent of Australians are estimated as under mortgage stress.</div>
  586. <div class="assets"></div>
  587. <div class="subscribe-truncate">
  588. <div class="assets">
  589. <p>The amount of outstanding mortgages in Australia grew by the fastest monthly pace in four years.</p>
  590. </div>
  591. </div>
  592. <div class="">
  593. <div class="assets">
  594. <p>But economists doubt financial regulators will be too concerned at this stage with investor loans still relatively subdued.</p>
  595. </div>
  596. <div id="article-titan-mobile-pos1" class="advertisement">
  597. <div class="advertisement  conditional "></div>
  598. </div>
  599. </div>
  600. <div class="">
  601. <div class="assets">
  602. <p>New figures from the Reserve Bank of Australia showed housing credit grew by 0.6 per cent in May, the largest rise since June 2017.</p>
  603. </div>
  604. </div>
  605. <div class="">
  606. <div class="assets">
  607. <p>Annual growth now stands at 4.8 per cent, its highest since 2018.</p>
  608. <div class="teads-inread sm-screen">
  609. <div></div>
  610. </div>
  611. </div>
  612. <div class="advertisement teads-1x1 non-conditional ">
  613. <div id="adspot-1x1-pos1" class="advertisement__1x1" data-hide-platforms="" data-lazy-load="no" data-google-query-id="CIKntPGs_vECFZCoaAodeSAC2g">
  614. <div id="google_ads_iframe_/21666581298/CanberraTimes/news/latestnews_0__container__"></div>
  615. </div>
  616. </div>
  617. </div>
  618. <div class="">
  619. <div class="assets">
  620. <p>Owner-occupier loans rose 0.7 per cent in the month to 6.6 per cent, also the highest year rate since 2018.</p>
  621. </div>
  622. </div>
  623. <div class="">
  624. <div class="assets">
  625. <p>However, growth in loans to housing investors remained relatively modest, rising 0.4 per cent in May to 1.6 per cent.</p>
  626. </div>
  627. </div>
  628. <div class="">
  629. <div class="assets">
  630. <p>National Australia Bank economist Taylor Nugent said while investor credit growth has recently picked up, it is unlikely to overly concern regulators.</p>
  631. </div>
  632. </div>
  633. <div class="">
  634. <div class="assets">
  635. <p>&#8220;Credit growth is being watched closely in regards to assessing the likelihood of a tightening in macro-prudential policies given the surge in house prices,&#8221; Mr Taylor said.</p>
  636. </div>
  637. </div>
  638. <div class="">
  639. <div class="assets">
  640. <p>&#8220;There is little in today&#8217;s data to change the sanguine view of regulators.&#8221;</p>
  641. </div>
  642. </div>
  643. <div class="">
  644. <div class="assets">
  645. <p>Earlier this month, a meeting of the Council of Financial Regulators agreed that overall lending standards in Australia remain sound.</p>
  646. </div>
  647. </div>
  648. <div class="">
  649. <div class="assets">
  650. <p>The council is made up of the RBA, Treasury, Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.</p>
  651. </div>
  652. </div>
  653. <div class="">
  654. <div class="assets">
  655. <p>However, the banking watchdog, APRA, has written to the nation&#8217;s largest banks, warning there are signs of some increased risk-taking as home buyers rush to secure loans in a heated housing market&#8230;</p>
  656. </div>
  657. <p>This article is from the Canberra Times, you can read the full article here:</p>
  658. <p><a href="https://www.canberratimes.com.au/story/7319532/home-loans-buoyant-but-investors-subdued/" target="_blank" rel="noopener">https://www.canberratimes.com.au/story/7319532/home-loans-buoyant-but-investors-subdued/</a></p>
  659. </div>
  660. </div>
  661. </div>
  662. </div>
  663. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/home-loans-buoyant-but-investors-subdued/">Home loans buoyant, but investors subdued</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  664. ]]></content:encoded>
  668. </item>
  669. <item>
  670. <title>What homebuyers should look for when comparing home loans</title>
  671. <link>https://loansnearme.com.au/what-homebuyers-should-look-for-when-comparing-home-loans/</link>
  673. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  674. <pubDate>Sun, 10 Jan 2021 06:08:02 +0000</pubDate>
  675. <category><![CDATA[Home Loans]]></category>
  676. <category><![CDATA[Uncategorized]]></category>
  677. <category><![CDATA[fixed rate home loan]]></category>
  678. <category><![CDATA[homebuyers]]></category>
  679. <category><![CDATA[interest only loan]]></category>
  680. <category><![CDATA[interest rates]]></category>
  681. <guid isPermaLink="false">https://loansnearme.com.au/?p=2595</guid>
  682.  
  683. <description><![CDATA[<p>What homebuyers should look for when comparing home loans as interest rates remain low It’s a great time to buy property with record-low interest rates, but homebuyers are cautioned to avoid these mistakes when shopping for loans. Kathy Skantzos With unprecedented cuts to Aussie home loans and ultra-low interest rates, now could be the ideal [&#8230;]</p>
  684. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/what-homebuyers-should-look-for-when-comparing-home-loans/">What homebuyers should look for when comparing home loans</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  685. ]]></description>
  686. <content:encoded><![CDATA[<h1 class="story-headline">What homebuyers should look for when comparing home loans as interest rates remain low</h1>
  687. <p class="intro">It’s a great time to buy property with record-low interest rates, but homebuyers are cautioned to avoid these mistakes when shopping for loans.</p>
  688. <div id="story-info" class="story-info comments-none">
  689. <div class="author-info">
  690. <div class="name">Kathy Skantzos</div>
  691. </div>
  692. </div>
  693. <div class="other-info"></div>
  694. <div>
  695. <p class="description">With unprecedented cuts to Aussie home loans and ultra-low interest rates, now could be the ideal time to buy, but buyers have been warned to shop around before committing to a mortgage.</p>
  696. <div class="story-content">
  697. <p>Canstar’s group executive of financial services Steve Mickenbecker told news.com.au that homebuyers should not be getting a loan for anything around the 3 per cent mark or above.</p>
  698. <p>He said home loan rates are down at around 2 per cent – an ultimate low we haven’t seen before – and buyers shouldn’t be going any higher.</p>
  699. <p>“We’ve not seen a minimum anywhere around that. In 2015, the average interest rate was around 5 per cent and in 2020 the national average was 3.32 per cent. That’s a huge difference in your buying power,” he said.</p>
  700. <p>&nbsp;</p>
  701. <div class="w650 h365 image media">
  702. <div class="image-wrapper"><img decoding="async" class=" image-loaded" src="https://cdn.newsapi.com.au/image/v1/5f23e97a88b136857a666017c7bb57a8?width=650" alt="Homebuyers and mortgage holders should not be paying above the 2 per cent range with the current record-low rates. Picture: iStock" width="650" height="365" data-src="https://cdn.newsapi.com.au/image/v1/5f23e97a88b136857a666017c7bb57a8?width=650" /></div>
  703. <p class="caption">Homebuyers and mortgage holders should not be paying above the 2 per cent range with the current record-low rates. Picture: iStock<span class="image-source"><em>Source:istock</em></span></p>
  704. </div>
  705. <p>According to comparison site Canstar, there were 6777 cuts to home loans over the past 12 months, with an average cut of 0.3 per cent.</p>
  706. <p>In January 2020, the average variable rate for owner occupiers paying principal and interest was 3.73 per cent, compared to today’s rate of 3.32 per cent.</p>
  707. <p>The lowest variable rate was 2.69 per cent and it is now around 1.99 per cent or as low as 1.77 per cent, depending on the lender.</p>
  708. <p><b>RELATED: <a href="https://www.news.com.au/finance/real-estate/buying/aussie-house-prices-booming-despite-pandemic-bloodbath-predictions/news-story/f50a70a9e725d48dce99b1a3a1a18547" target="_blank" rel="noopener" data-tgev="event119" data-tgev-metric="ev" data-tgev-order="f50a70a9e725d48dce99b1a3a1a18547" data-tgev-label="finance" data-tgev-container="bodylink">Shock result for Aussie house prices</a></b></p>
  709. <div id="ad-block-4x4-1" class="w_unruly ad-block ad-custom unruly_insert_native_ad_here" data-ad-size="4x4" data-device-type="web" data-ad-tar="pos=1" data-ad-pos="1"></div>
  710. <div class="w650 h365 image media">
  711. <div class="image-wrapper"><img loading="lazy" decoding="async" class=" image-loaded" src="https://cdn.newsapi.com.au/image/v1/f05e5471f03c25ace405bf2aadc4b2c9?width=650" alt="Aussies have more borrowing power now with record-low interest rates. Picture: iStock" width="650" height="365" data-src="https://cdn.newsapi.com.au/image/v1/f05e5471f03c25ace405bf2aadc4b2c9?width=650" /></div>
  712. <p class="caption">Aussies have more borrowing power now with record-low interest rates. Picture: iStock<span class="image-source"><em>Source:istock</em></span></p>
  713. </div>
  714. <p><b>‘YOU SHOULD BE LOOKING IN THE 2S’</b></p>
  715. <p>Mr Mickenbecker said there are “a whole bunch of loans around 2 per cent” and was adamant that homebuyers and homeowners should not be paying any more than that rate.</p>
  716. <p>“You should be looking in the 2s and you shouldn’t be paying in the 3s,” he said.</p>
  717. <p>For those who already own a home, Mr Mickenbecker said mortgage holders should absolutely <a href="https://www.news.com.au/finance/economy/australian-economy/rba-mortgage-holders-should-switch-lenders-if-rate-cut-not-passed-on/news-story/af94d8d2f6681e43e9d738c7b3803790" target="_blank" rel="noopener" data-tgev="event119" data-tgev-metric="ev" data-tgev-order="af94d8d2f6681e43e9d738c7b3803790" data-tgev-label="finance" data-tgev-container="bodylink">not be paying in the 3 per cent range</a>. “They’re old rates. The average rate is 3.37 per cent, that’s way more than people need to be paying now. It makes such a huge difference over the life of your loan,” he said.</p>
  718. <p><b>RELATED: <a href="https://www.news.com.au/finance/real-estate/melbourne-vic/what-to-expect-in-melbourne-property-market-in-2021/news-story/87fcfc5774a73cb3d0e0050a9c22ff4a" target="_blank" rel="noopener" data-tgev="event119" data-tgev-metric="ev" data-tgev-order="87fcfc5774a73cb3d0e0050a9c22ff4a" data-tgev-label="finance" data-tgev-container="bodylink">What to expect from property in 2021</a></b></p>
  719. <div class="w650 h365 image media">
  720. <div class="image-wrapper"><img loading="lazy" decoding="async" class=" image-loaded" src="https://cdn.newsapi.com.au/image/v1/637708a0db9af132f3ce4560cba28d37?width=650" alt="Homebuyers are advised to do their homework and shop around for the best home loan rate. Picture: iStock" width="650" height="365" data-src="https://cdn.newsapi.com.au/image/v1/637708a0db9af132f3ce4560cba28d37?width=650" /></div>
  721. <p class="caption">Homebuyers are advised to do their homework and shop around for the best home loan rate. Picture: iStock<span class="image-source"><em>Source:Supplied</em></span></p>
  722. </div>
  723. <p><b>FIXED VS VARIABLE?</b></p>
  724. <p>While many home loans in the 2 per cent range are fixed rates, Mr Mickenbecker said with low rates like this, it isn’t really a risk to lock in a fixed rate.</p>
  725. <p>“When rates are low, the risk diminishes getting caught in a fixed rate,” Mr Mickenbecker said.</p>
  726. <p>“The rates going lower is a possibility, but is it a risk if you can afford repayments at that level?” he questioned.</p>
  727. <p>Mr Mickenbecker suggested homebuyers could split the loan into fixed and variable to take advantage of the low fixed rates and added there is no harm with going with a lesser-known lender if the rate is good.</p>
  728. <p>&nbsp;</p>
  729. <div class="w650 h365 image media">
  730. <div class="image-wrapper"><img loading="lazy" decoding="async" class=" image-loaded" src="https://cdn.newsapi.com.au/image/v1/efc52a91605807e2e2344b49e75ac704?width=650" alt="When taking out a mortgage it is advised to not ‘overstretch’ what you can afford to avoid getting yourself into a negative gearing situation. Picture: iStock" width="650" height="365" data-src="https://cdn.newsapi.com.au/image/v1/efc52a91605807e2e2344b49e75ac704?width=650" /></div>
  731. <p class="caption">When taking out a mortgage it is advised to not ‘overstretch’ what you can afford to avoid getting yourself into a negative gearing situation. Picture: iStock<span class="image-source"><em>Source:News Regional Media</em></span></p>
  732. </div>
  733. <p>“The big banks have a level of convenience and they have brands so you feel they are trusted but smaller lenders have been around for a long time writing lots of loans so there’s nothing wrong with those,” he said.</p>
  734. <p>The lowest variable home loan rate at the moment at 1.77 per cent is with one of these smaller lenders, Reduce Home Loans, but you might need around 40 per cent equity to get approval for a rate this low.</p>
  735. <p>“If you want a 2 per cent loan with a big bank you will be going with a fixed-rate loan. With a smaller lender you will potentially get a smaller rate with variable,” he said.</p>
  736. </div>
  737. </div>
  738. <p>&nbsp;</p>
  739. <p>&nbsp;</p>
  740. <p>This article is from News.com.au, you can read the full article here:</p>
  741. <p><a href="https://www.news.com.au/finance/economy/interest-rates/what-homebuyers-should-look-for-when-comparing-home-loans-as-interest-rates-remain-low/news-story/20eff87d2d33881253187b168c3aab9a" target="_blank" rel="noopener">https://www.news.com.au/finance/economy/interest-rates/what-homebuyers-should-look-for-when-comparing-home-loans-as-interest-rates-remain-low/news-story/20eff87d2d33881253187b168c3aab9a</a></p>
  742. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/what-homebuyers-should-look-for-when-comparing-home-loans/">What homebuyers should look for when comparing home loans</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  743. ]]></content:encoded>
  747. </item>
  748. <item>
  749. <title>Simpler lending rules for home loans</title>
  750. <link>https://loansnearme.com.au/simpler-lending-rules-for-home-loans/</link>
  752. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  753. <pubDate>Tue, 05 Jan 2021 05:43:19 +0000</pubDate>
  754. <category><![CDATA[Home Loans]]></category>
  755. <category><![CDATA[banks]]></category>
  756. <category><![CDATA[credit]]></category>
  757. <category><![CDATA[credit cards]]></category>
  758. <category><![CDATA[economy]]></category>
  759. <category><![CDATA[finance companies]]></category>
  760. <category><![CDATA[Lenders]]></category>
  761. <category><![CDATA[mortgages]]></category>
  762. <category><![CDATA[payday loans]]></category>
  763. <category><![CDATA[personal lending]]></category>
  764. <category><![CDATA[personal loans]]></category>
  765. <guid isPermaLink="false">https://loansnearme.com.au/?p=2592</guid>
  766.  
  767. <description><![CDATA[<p>Simpler lending rules for home loans and credit to free up the economy Customers will be promised faster access to loans under simpler rules that aim to free up credit and lift the economy by ending confusion over lending obligations for banks and finance companies. Treasurer Josh Frydenberg will overhaul the laws governing mortgages, personal [&#8230;]</p>
  768. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/simpler-lending-rules-for-home-loans/">Simpler lending rules for home loans</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  769. ]]></description>
  770. <content:encoded><![CDATA[<h2 data-testid="headline">Simpler lending rules for home loans and credit to free up the economy</h2>
  771. <section class="_1ysFk">
  772. <div class="_1665V undefined">
  773. <p>Customers will be promised faster access to loans under simpler rules that aim to free up credit and lift the economy by ending confusion over lending obligations for banks and finance companies.</p>
  774. <p>Treasurer Josh Frydenberg will overhaul the laws governing mortgages, personal loans, credit cards and payday lending to streamline decisions on whether customers can afford the loans they seek.</p>
  775. <figure class="_3ujPS _3g3zI">
  776. <div class="_1lwW_" tabindex="0" role="button" aria-label="enlarge image"><picture class=""><source srcset="https://static.ffx.io/images/$zoom_0.243%2C$multiply_0.7554%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/dd03b8b17085f691116abdb7c1e7767ce950893b, https://static.ffx.io/images/$zoom_0.243%2C$multiply_1.5109%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/dd03b8b17085f691116abdb7c1e7767ce950893b 2x" media="(min-width: 1024px)" /><source srcset="https://static.ffx.io/images/$zoom_0.243%2C$multiply_0.6874%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/dd03b8b17085f691116abdb7c1e7767ce950893b, https://static.ffx.io/images/$zoom_0.243%2C$multiply_1.3749%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/dd03b8b17085f691116abdb7c1e7767ce950893b 2x" media="(min-width: 768px)" /><img decoding="async" src="https://static.ffx.io/images/$zoom_0.243%2C$multiply_0.3541%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/dd03b8b17085f691116abdb7c1e7767ce950893b" srcset="https://static.ffx.io/images/$zoom_0.243%2C$multiply_0.3541%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_0/t_crop_custom/q_86%2Cf_auto/dd03b8b17085f691116abdb7c1e7767ce950893b, https://static.ffx.io/images/$zoom_0.243%2C$multiply_0.7082%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_0/t_crop_custom/q_62%2Cf_auto/dd03b8b17085f691116abdb7c1e7767ce950893b 2x" alt="Treasurer Josh Frydenberg will overhaul bank lending rules to make it simpler to decide mortgages and credit card lending." /></picture></div><figcaption class="_3CZmy"><span class="_2Li3P">Treasurer Josh Frydenberg will overhaul bank lending rules to make it simpler to decide mortgages and credit card lending.</span><cite class="ojLwA"><span class="_30ROC">CREDIT:</span>ALEX ELLINGHAUSEN</cite></p>
  777. </figcaption></figure>
  778. <p>The changes respond to growing concerns over court disputes and the duplication of regulators in home and personal lending, sparking fears that restrictive rules on credit would curb economic growth.</p>
  779. <p>With the government preparing to unveil tax cuts and spending measures in the October 6 budget, the lending reforms are intended to improve access to credit from March next year if Parliament approves changes to the Credit Act.</p>
  780. </div>
  781. </section>
  782. <div class="_1FVfK"></div>
  783. <section class="vPaWe">
  784. <div class="_1ysFk">
  785. <div class="_1665V undefined">
  786. <p>&#8220;As Australia continues to recover from the COVID-19 pandemic, it is more important than ever that there are no unnecessary barriers to the flow of credit to households and small businesses,&#8221; said Mr Frydenberg.</p>
  787. <p>&#8220;Maintaining the free flow of credit through the economy is critical to Australia’s economic recovery plan.&#8221;</p>
  788. <p>The lending reform comes one day after sweeping changes to insolvency laws and a major speech in which Mr Frydenberg outlined a two-stage fiscal strategy that would keep significant spending in place to recover from recession.</p>
  789. <p>&#8220;I expect Phase 1 to remain in place until the unemployment rate is comfortably back under six per cent,&#8221; he said.</p>
  790. <p>Once the government was confident the recovery had taken hold, it would move to a second phase to restore the budget balance over time, shifting from &#8220;temporary and targeted support&#8221; in order to focus on stabilising debt.</p>
  791. </div>
  792. <div class="_1lC_G"></div>
  793. <div class="_1665V undefined">
  794. <p>The Hayne banking royal commission recommended the simplification of regulation but these changes will be subject to scrutiny over whether they are in keeping with the spirit of the commission&#8217;s final report.</p>
  795. <p>The lending changes are being backed by industry ahead of the formal announcement on Friday, with Master Builders Australia saying it could speed up decisions for Australians trying to buy their own homes.</p>
  796. <p>But the complex reforms could take time for banks and other lenders to implement, while sparking debate among consumer groups about the level of protection for Australians who take on loans they struggle to repay.</p>
  797. <div class="_3nhoI _12GyT noPrint">
  798. <div class="_2GXIh">
  799. <div class="_2usml">
  800. <div class="_1Q0Yp" data-scroll="true"><span style="font-size: inherit;">Banks are subject to standards set by the Australian Prudential Regulation Authority but they also face scrutiny of their responsible lending obligations by the Australian Securities and Investments Commission.</span></div>
  801. </div>
  802. </div>
  803. </div>
  804. </div>
  805. <div class="_1lC_G"></div>
  806. <div class="_1665V undefined">
  807. <p>The government will remove ASIC from those duties to end the duplication after the corporate regulator lost a Federal Court action against Westpac over home lending standards.</p>
  808. <p>The objective is to replace a philosophy of &#8220;lender beware&#8221; with a &#8220;borrower responsibility&#8221; principle to make sure credit is available&#8230;</p>
  809. </div>
  810. </div>
  811. </section>
  812. <p>&nbsp;</p>
  813. <p>This article is from the SMH, you can read the full article here:</p>
  814. <p><a href="https://www.smh.com.au/politics/federal/simpler-lending-rules-for-home-loans-and-credit-to-free-up-the-economy-20200924-p55yz9.html" target="_blank" rel="noopener">https://www.smh.com.au/politics/federal/simpler-lending-rules-for-home-loans-and-credit-to-free-up-the-economy-20200924-p55yz9.html</a></p>
  815. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/simpler-lending-rules-for-home-loans/">Simpler lending rules for home loans</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  816. ]]></content:encoded>
  820. </item>
  821. <item>
  822. <title>Many Aussies are making a big mistake with home loans</title>
  823. <link>https://loansnearme.com.au/many-aussies-are-making-a-big-mistake-with-home-loans/</link>
  825. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  826. <pubDate>Sat, 19 Dec 2020 11:35:52 +0000</pubDate>
  827. <category><![CDATA[Home Loans]]></category>
  828. <category><![CDATA[Mortgage]]></category>
  829. <category><![CDATA[asic]]></category>
  830. <category><![CDATA[athena]]></category>
  831. <category><![CDATA[athena home loans]]></category>
  832. <category><![CDATA[aussie home loans]]></category>
  833. <category><![CDATA[canstar]]></category>
  834. <category><![CDATA[interest rate]]></category>
  835. <category><![CDATA[lender]]></category>
  836. <category><![CDATA[loans.com.au]]></category>
  837. <category><![CDATA[low cost lenders]]></category>
  838. <category><![CDATA[mortgage]]></category>
  839. <category><![CDATA[mortgage hunters]]></category>
  840. <category><![CDATA[nano]]></category>
  841. <category><![CDATA[non banks]]></category>
  842. <category><![CDATA[non-bank lenders]]></category>
  843. <category><![CDATA[online lenders]]></category>
  844. <category><![CDATA[tic toc]]></category>
  845. <category><![CDATA[ubank]]></category>
  846. <category><![CDATA[variable interest rate]]></category>
  847. <guid isPermaLink="false">https://loansnearme.com.au/?p=2629</guid>
  848.  
  849. <description><![CDATA[<p>Many Aussies are making a big mistake with home loans: here’s how How mortgage hunters could be dudding themselves out of the best deal, all because of an unfounded fear. Rebecca Le May Many mortgage hunters have an unfounded fear of non-bank lenders and could be dudding themselves out of the best deal. After the [&#8230;]</p>
  850. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/many-aussies-are-making-a-big-mistake-with-home-loans/">Many Aussies are making a big mistake with home loans</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  851. ]]></description>
  852. <content:encoded><![CDATA[<h2>Many Aussies are making a big mistake with home loans: here’s how</h2>
  853. <p class="intro">How mortgage hunters could be dudding themselves out of the best deal, all because of an unfounded fear.</p>
  854. <div id="story-info" class="story-info comments-none">
  855. <div class="author-info">
  856. <div class="name">Rebecca Le May</div>
  857. </div>
  858. </div>
  859. <div></div>
  860. <div>
  861. <p class="description">Many mortgage hunters have an unfounded fear of non-bank lenders and could be dudding themselves out of the best deal.</p>
  862. <div class="story-content">
  863. <p>After the Reserve Bank of Australia slashed the cash rate to record lows earlier this month, it was the smaller, little-known outfits Athena, Reduce Home Loans, Homestar Finance, Homeloans.com.au and Pacific Mortgage Group that led the charge in passing on interest rate cuts to customers.</p>
  864. <p>RateCity research director Sally Tindall said non-bank lenders had helped drive prices down across the entire home loan market, particularly in recent months as record numbers of mortgage holders moved to refinance, especially when it came to fixed rates.</p>
  865. <p>“Right now, the lowest fixed rate loan on the market is just 1.88 per cent but that’s from HSBC, a big international bank, while Westpac isn’t far behind offering rates of 1.89 per cent if you’ve got a decent deposit,” Ms Tindall told NCA NewsWire.</p>
  866. <p>Canstar figures show, however, that smaller lenders offer the most compelling variable rates.</p>
  867. <div class="w650 h365 image media">
  868. <div class="image-wrapper"><img loading="lazy" decoding="async" class=" image-loaded" src="https://cdn.newsapi.com.au/image/v1/48cfc7322c12f5bd9346b18b3e8de539?width=650" alt="Open your mind to non-bank lenders – many have been around for a long time." width="650" height="365" data-src="https://cdn.newsapi.com.au/image/v1/48cfc7322c12f5bd9346b18b3e8de539?width=650" /></div>
  869. <p class="caption">Open your mind to non-bank lenders – many have been around for a long time.<span class="image-source"><em>Source:Supplied</em></span></p>
  870. </div>
  871. <p>Reduce Home Loans currently has the lowest at 1.77 per cent, but it is only available to customers with 40 per cent equity in their home or a 40 per cent deposit.</p>
  872. <p>For people with 20 per cent equity or deposit, the lowest variable rate is 1.99 per cent. It is being offered by the same company, <a href="https://loansnearme.com.au/listings/loans-com-au/">loans.com.au</a> though its one-year introductory rate and Illawarra Credit Union through its two year introductory rate.</p>
  873. <p>“Many people look at cracking low rates offered by non-bank lenders and think, ‘Well, that’s great, but I’ve never heard of them’,” Ms Tindall said.</p>
  874. <p>“Just because you haven’t heard of them doesn’t necessarily mean they’re risky.</p>
  875. <p>“Low-cost lenders such as Homestar Finance and Reduce Home Loans might not have the big marketing budgets of CBA and Westpac, but they’ve both been issuing home loans for over a decade each.</p>
  876. <p>“A number of low-cost lenders are also backed by banks or created by former big bank executives looking to shake up the market.”</p>
  877. <p>These include UBank (backed by National Australia Bank), Tic Toc (backed by Bendigo and Adelaide Bank), Aussie Home Loans (a subsidiary of Commonwealth Bank), <a href="https://loansnearme.com.au/listings/athena-home-loans-sydney/" target="_blank" rel="noopener">Athena</a> (created by former NAB executives) and soon-to-launch Nano (formed by ex-Westpac executives).</p>
  878. <div class="w650 h365 image media">
  879. <div class="image-wrapper"><img loading="lazy" decoding="async" class=" image-loaded" src="https://cdn.newsapi.com.au/image/v1/264834c987af52794a024a8d626ceb90?width=650" alt="Sally Tindall says just because you haven’t heard of some non-bank lenders doesn’t mean they are risky. Picture: Supplied." width="650" height="365" data-src="https://cdn.newsapi.com.au/image/v1/264834c987af52794a024a8d626ceb90?width=650" /></div>
  880. <p class="caption">Sally Tindall says just because you haven’t heard of some non-bank lenders doesn’t mean they are risky. Picture: Supplied.<span class="image-source"><em>Source:Supplied</em></span></p>
  881. </div>
  882. <p>Canstar financial services group executive Steve Mickenbecker agreed a lot of people were nervous about little-known brands, but many had been in the market for a long time like loans.com.au, which began in 2011.</p>
  883. <p>“Non-banks are not regulated by the Australian Prudential Regulation Authority but are regulated by ASIC, so you can take some level of comfort in that,” he said.</p>
  884. <p>Both Mr Mickenbecker and Ms Tindall said mortgage hunters should remember that in terms of risk, the lender was the one loaning the money, not the other way around&#8230;</p>
  885. </div>
  886. </div>
  887. <p>This article is from news.com.au, you can read the full article here:</p>
  888. <p><a href="https://www.news.com.au/finance/money/many-aussies-are-making-a-big-mistake-with-home-loans-heres-how/news-story/2b25d6d3ee3cc9eced6d12344f4779f7" target="_blank" rel="noopener">https://www.news.com.au/finance/money/many-aussies-are-making-a-big-mistake-with-home-loans-heres-how/news-story/2b25d6d3ee3cc9eced6d12344f4779f7</a></p>
  889. <p>&nbsp;</p>
  890. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/many-aussies-are-making-a-big-mistake-with-home-loans/">Many Aussies are making a big mistake with home loans</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  891. ]]></content:encoded>
  895. </item>
  896. <item>
  897. <title>Beforepay, Afterpay and everything in between</title>
  898. <link>https://loansnearme.com.au/beforepay-afterpay-and-everything-in-between/</link>
  900. <dc:creator><![CDATA[Loans Near Me]]></dc:creator>
  901. <pubDate>Sun, 13 Dec 2020 21:55:28 +0000</pubDate>
  902. <category><![CDATA[Buy Now Pay Later]]></category>
  903. <category><![CDATA[afterpay]]></category>
  904. <category><![CDATA[bnpl]]></category>
  905. <category><![CDATA[buy now pay later]]></category>
  906. <guid isPermaLink="false">https://loansnearme.com.au/?p=2513</guid>
  907.  
  908. <description><![CDATA[<p>Beforepay, Afterpay and everything in between: Do Australia’s BNPL players have consumers’ best interests at heart? STEPHANIE PALMER-DERRIEN Among other things, 2020 has been the year of e-commerce, and, by extension, it’s become the year of buy-now-pay-later too. Aussie market leader Afterpay has seen its share price top $100, up from $8.90 in mid-March. Competitor Zip Pay [&#8230;]</p>
  909. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/beforepay-afterpay-and-everything-in-between/">Beforepay, Afterpay and everything in between</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
  910. ]]></description>
  911. <content:encoded><![CDATA[<h2>Beforepay, Afterpay and everything in between: Do Australia’s BNPL players have consumers’ best interests at heart?</h2>
  912. <div class="article__header">
  913. <h1><a style="font-size: 1.0625rem;" href="https://www.smartcompany.com.au/author/spalmerderrien/">STEPHANIE PALMER-DERRIEN</a></h1>
  914. </div>
  915. <div class="article__content">
  916. <div class="article__image"><img loading="lazy" decoding="async" class="attachment-post size-post wp-post-image lazyloaded" src="https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale.jpg" sizes="(max-width: 733px) 100vw, 733px" srcset="https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale.jpg 733w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-660x322.jpg 660w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-519x253.jpg 519w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-461x225.jpg 461w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-306x149.jpg 306w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-412x201.jpg 412w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-626x306.jpg 626w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-203x99.jpg 203w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-295x144.jpg 295w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-350x171.jpg 350w, https://www.smartcompany.com.au/wp-content/uploads/2020/11/Point-of-sale-180x88.jpg 180w" alt="bnpl point of sale" width="733" height="358" data-ll-status="loaded" /></div>
  917. <p>Among other things, 2020 has been the year of e-commerce, and, by extension, it’s become <a href="https://www.smartcompany.com.au/startupsmart/analysis/afterpay-covid-19-buy-now-pay-later-boom/" target="_blank" rel="noopener noreferrer">the year of buy-now-pay-later</a> too.</p>
  918. <p>Aussie market leader Afterpay has seen its share price top $100, up from $8.90 in mid-March. Competitor Zip Pay has also been going gangbusters on the ASX, and newer players like <a href="https://www.smartcompany.com.au/coronavirus/buy-now-pay-later-payright-covid-19-new-normal-retail/" target="_blank" rel="noopener noreferrer">Payright</a> and <a href="https://www.smartcompany.com.au/coronavirus/limepay-alternative-bnpl-tech-covid-19-retail/" target="_blank" rel="noopener noreferrer">Limepay</a> are reaping the benefits of a mass shift online.</p>
  919. <p>Such products essentially extend short-term credit to consumers, allowing them to take on a small debt and spread their payments into more manageable chunks.</p>
  920. <p>We’re also seeing other alternative credit solutions appearing. Last week, fintech <a href="https://www.smartcompany.com.au/startupsmart/news/beforepay-fintech-wages-in-advance/" target="_blank" rel="noopener noreferrer">BeforePay raised $4 million</a> for its product allowing users to borrow up to $200 from their pay cheque in advance. BeforePay charges a flat 5% fee, for short-term loans, often over just seven or 14 days.</p>
  921. <p><em>SmartCompany</em>’s reporting on Beforepay generated lively discussion in the Sydney Startups Facebook group, with some commenters questioning the ethics of such a product and suggesting the BNPL trend has gone too far.</p>
  922. <p>Some called it a debt trap for the vulnerable — essentially a payday loan — while others pointed to the demand in the market; Beforepay launched in early-2020, and now has more than 100,000 users.</p>
  923. <div id="Teads-inread"></div>
  924. <p>Fintechs like this are providing credit in a way traditional institutions can’t. But are they improving the lives of consumers, or simply taking advantage of a broken banking system for their own gain?</p>
  925. <p>Last week, the Australian Securities and Investments Commission (ASIC) <a href="https://www.smartcompany.com.au/industries/retail/asic-bnpl-users-skipping-meals/" target="_blank" rel="noopener noreferrer">released a report into the industry</a>, finding 21% of users had missed payments within the past 12 months.</p>
  926. <p>More concerning, 20% said they had cut back, or gone without, essentials — even skipping meals or paying bills late — in order to make their BNPL payments on time.</p>
  927. <p>“When normalised, these services are some of the most expensive credit products in the market,” Luke Campbell, co-founder of <a href="https://www.smartcompany.com.au/startupsmart/news/fintech-pineapple-trademark-stoush-apple/" target="_blank" rel="noopener noreferrer">financial wellbeing app Pineapple</a> tells <em>SmartCompany</em>.</p>
  928. <p>The big problem with ‘traditional’ payday loan products is the debt spiral they can lead to, he explains, as users “take credit and need more credit to pay that credit back”.</p>
  929. <p>Products like Beforepay are “marginally better”, Campbell says, but the main issue is the price, which he sees as excessive.</p>
  930. <p>Beforepay co-founder and chief Tarek Ayoub stresses the startup doesn’t have any ‘hidden’ fees, and says the amount anyone can borrow is capped at $200, which must be repaid before another loan can be taken. New users are limited to loans of $50 or $100, based on their income and spending history.</p>
  931. <p>“The idea is for this to be a convenient way to access pay without being shackled to an arbitrary employer-determined pay cycle,” Ayoub says.</p>
  932. <h2>Credit? Check.</h2>
  933. <p>Campbell says some alternative credit products operate more responsibly than others, and compared to credit cards, “some providers are a much more economically smart product”.</p>
  934. <p>But one thing that tends to come up in the social media comments section is the different approaches to credit checks.</p>
  935. <p>There is concern the people using such services — particularly young people, who are more likely to miss repayments — might be compromising their credit history for the future.</p>
  936. <p>Zip Pay’s website, for example, says it ‘may’ run a credit check on anyone who applies for an account to confirm they are able to make repayments.</p>
  937. <p>If it does, that will show up on the consumers’ credit history in the future, Campbell explains, simply showing they’ve made an inquiry.</p>
  938. <p>“One check on Zip isn’t going to destroy your credit file,” he says, but 10 or 15 checks might.</p>
  939. <p>Afterpay’s terms and conditions also note it reserves the right to order a credit report on a user, however, it’s not a prerequisite for opening an account and it <a href="https://www.savings.com.au/buy-now-pay-later/does-afterpay-affect-your-credit-score" target="_blank" rel="noopener">doesn’t appear to be</a> standard procedure.</p>
  940. <p>Beforepay says it has its own assessment criteria, which is based on users’ historic spending behaviour and takes into account income and expenses. Ayoub claims using the service won’t affect a user’s credit score.</p>
  941. <p>However, while paying off a credit card every month can improve the user’s credit score, making BNPL repayments won’t.</p>
  942. <p>“That could also make it harder for people down the line to get access to credit,” Campbell says.</p>
  943. <h2>To regulate or not to regulate?</h2>
  944. <p>Any financial product comes with risks, but as BNPL and pay-on-demand products are so easy to access, users don’t necessarily consider them&#8230;</p>
  945. <p>This article is from SmartCompany, you can read the full article here:</p>
  946. <p><a href="https://www.smartcompany.com.au/industries/retail/bnpl-beforepay-afterpay-ethics/" target="_blank" rel="noopener">https://www.smartcompany.com.au/industries/retail/bnpl-beforepay-afterpay-ethics/</a></p>
  947. <p>&nbsp;</p>
  948. </div>
  949. <p>The post <a rel="nofollow" href="https://loansnearme.com.au/beforepay-afterpay-and-everything-in-between/">Beforepay, Afterpay and everything in between</a> appeared first on <a rel="nofollow" href="https://loansnearme.com.au">Loans Near Me - Find Car Loans, Home Loans &amp; Personal Loans Near You</a>.</p>
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