ACOS Home Loans in Sydney, Australia | Mortgage brokers

ACOS Home Loans

Locality: Sydney, Australia

Phone: +61 2 8824 8488

Address: Meridian Place Sydney, NSW, Australia

Website: http://www.acoshomeloans.com.au

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22.01.2022 No Rate Hikeunless you’re interest-only RBA cash rate hold won’t protect interest-only borrowers whose rates continue to shoot upwards Yesterday the RBA kept the cash rate at 1.5% and lenders continued to raise interest rates regardless.... 33 basic and standard variable rates for interest-only investor loans rose in the month of June, according to Canstar. There were only three decreases. Although the cash rate remains at 1.5%, the average interest-only SVR for investors is now 5.04%. The surge of interest-only rate hikes stands in contrast to P&I variable rates for owner occupiers, where Canstar recorded 21 rate decreases and just 10 increases. A week ago CBA decreased owner-occupier P&I rates by 0.03% but increased interest-only by 0.3%. Many banks have taken a similar approach, with ING DIRECT announced a similar move just over an hour after the RBA’s rate call. Across all lenders, the average P&I SVR for investors stands at 4.91%, for owner-occupiers 4.50%. Bleak future for interest-only RBA Governor Philip Lowe acknowledged rising interest-only and investor rates in his monetary policy statement, portraying them as a compliment to recent supervisory measures in tackling increased indebtness. Reacting to the RBA’s decision, CoreLogic’s head of research Tim Lawless also pointed to the role of rising rates: higher mortgage rates have done much of the heavy lifting in slowing down home value appreciation and cooling investment demand. There is an expectation that mortgage rates will continue to rise, added Lawless, despite a steady cash rate setting, as lenders adjust their credit policies to accommodate the latest round of APRA mandates. If this is the case, we expect investment activity will continue to moderate across the housing market, which could dampen housing market conditions further. Mortgage Choice CEO John Flavell went even further in his reaction: I would not be surprised to see the price gap between interest only loans and principal and interest loans widen to approximately 80 basis points. Anyone in an interest only loan should take the time to look at their situation and make sure they are still in the right product for their needs. Will the cash rate follow? Flavell has suggested that the RBA could keep rates on hold for several months at least and many economists take a similar view. Savanth Sebastian at CommSec has predicted rates will remain on hold until the end of 2017. One prominent dissenter has been HSBC chief economist Paul Bloxham, who claims that the RBA is simply waiting for wages growth to pick up: Once there are signs that wages growth is past its trough, we expect that it won't be long before the RBA is lifting its cash rate. We see wages growth picking up in the second half of 2017, concluded Bloxham, as a result, our central view is that the RBA will begin to lift its cash rate in Q1 2018. Source: Mortgage Professional Australia (MPA)

20.01.2022 Why non-banks could be the new home for non-resident borrowers Non-resident lending could be set for a return as non-bank lenders become increasingly interested in the sector. According to La Trobe Financial’s vice president Cory Bannister, non-resident is a great example of a product that suits non-banks generally. Speaking at MPA’s Non-Banks Roundtable last week, Bannister said that the low LVRs, low arrears and high net-worth associated with non-resident borrowers made ...them similar to prime clients. The banks largely pulled out of non-bank lending in early 2016, citing fears of fraud. However, Bannister believes non-banks can operate safely: we believe it requires manual assessment and that’s the single characteristic which meant the banks had to step out of that space. La Trobe, who have lent to non-residents on and off over the past year, have an international desk with bilingual staff which help ‘weed out’ fraudulent cases. Growing niche in expat lending Two other lenders at the panel were already lending to Australian expats: Better Mortgage Management and Homeloans Ltd. Expats often struggle to find finance at the banks because they earn income abroad and in foreign currencies. BMM’s managing director Murray Cowan told the panel that I think the expat sector may have been unfairly characterised as the same as non-residents and that might have created a bit of an opportunity for us there. Aaron Milburn, director of sales and distribution at Pepper Money, said that although Pepper doesn’t currently lend to non-residents I wouldn’t discount it for the future. He noted that Pepper’s international spread helped provide the infrastructure to do so. Can non-banks handle non-residents? Non-banks at the panel were concerned however that a return to non-resident lending could lead to a surge in business. In fact, it could cause volumes to triple ‘overnight’, suggested Homeloans and RESIMAC general manager of third party distribution Daniel Carde. The panel broadly agreed that such a surge would be difficult to deal with. No business is set up for triple volumes, argued Liberty’s national sales manager John Mohnacheff we can probably handle 5-10% variability. A note of caution was sounded by FirstMac founder Kim Cannon. The RBA wants to stop [non-residents buying property]; they don’t want to cure it, he told the panel. He warned that surge in non-residents getting financed by non-banks would be treading on dangerous ground with regulators. Watch the full non-banks roundtable, covering APRA, property investors, turnaround times and more, by clicking here. by MPA | 18 Oct 2017

19.01.2022 Dear All I am pleased to invite you to a Special Presentation that I will be hosting in conjunction with ParkTrent properties Group. At this presentation you will discover the secrets to successful Property Investment and Cashflow Management. There is no cost to attend the presentation so please click the following link to reserve your seat.... parktrent.com.au/acos/ At this presentation, you’ll discover: The most efficient and effective methods of eliminating all bad debt including your Home Loan The difference between Good Debt and Bad Debt, and why achieving financial security is almost impossible without the powerful benefits of Good Debt How to use Federal Government Tax Incentives to assist you to pay off your Home Loan and much more. I hope that you are able to attend, and I look forward to meeting you there on the night.

18.01.2022 Major bank refines serviceability criteria Major bank Westpac has announced a series of new serviceability criteria in response to tighter regulatory requirements. A note sent to brokers on Friday (18 August) detailed the changes which Westpac said came as the Australian Prudential Regulatory Authority (APRA) refined its serviceability requirements for existing internal and external mortgage liabilities. This refinement refers to changes made by APRA in March when it introd...uced new lending caps on interest only loans. The bank has implented a staged approach to these policy changes which affect Westpac itself as well as subsidiaries St George, Bank of Melbourne and BankSA. As of yesterday (21 August), Westpac has said that serviceability will now be calculated using a 20 year (or 240 month) term on all its portfolio loans. Additionally, rental interest tax deduction will be calculated using the customers’ annual percentage rate. Where the deduction is linked to a mortgage liability held outside of the bank, the outstanding loan balance and current interest rates are to be evidenced through bank statements, transaction listings, loan contracts, etc. The bank also introduced a number of changes to come into effect on 19 September. For all existing mortgages, the annual percentage rate and remaining interest only term will need to be captured. Westpac’s online calculator will be updated, enabling brokers to enter details for each existing mortgage separately instead of a combined figure. Rental interest tax deductions will be calculated using the customer’s annual percentage rate. The bank will provide further details on these changes in September. Source: Australian Broker

18.01.2022 Regional bank drops OO rates by 31bps Teachers Mutual Bank and its subsidiary banks have announced a reduction in rates for new owner-occupier, principal and interest fixed rate home loans across all their brands. The changes are effective 17 August 2017 for new business only, and entail a reduction in rates for principal and interest loans for customers with an LVR of 80% or lower. The average interest rate per annum will now sit at 3.89% for these customers, with a comparis...on rate of 4.15% p.a. New fixed rate home loans on 1, 2, and 3 years will also have an interest rate reduction. These rates are now 3.79%, 3.84%, and 3.99% p.a. respectively. We want to continue to be a leading choice for customers starting on their home ownership journey. We expect these rate reductions will be attractive to potential members who want to be supported by a bank that understands their needs, and will provide high quality member service, stated Teachers Mutual Bank head of third party distribution Mark Middleton. These changes will apply to new business for all Teachers Mutual Bank brands: Teachers Mutual Bank, UniBank, and Firefighters Mutual Bank. By Australian Broker

17.01.2022 CASH RATE UNCHANGED

15.01.2022 Many young adults need parental help to buy first homes While young Australians are eager to fly the nest and own their own homes, many are facing the harsh reality that they’ll have to rely on their parents to help them enter the property market. According to a new survey conducted for State Custodians Home Loans by Galaxy Research, one in three Gen Y respondents who don’t own a home admit they’ll need some sort of parental assistance to climb the property ladder. ...Continue reading

11.01.2022 Stamp Duty Concessions Perhaps buoyed by its new found wealth, NSW is finally following the lead of other states such as Victoria by expanding stamp duty conces...sions. From July 1 stamp duty for FHBs will be abolished for new homes up to $650,000 with discounts on properties of up to $800,000. Additionally, grants of $10,000 will be available for new homes of up to $600,000 and for FHBs who build their home. Stamp duty will no longer be charged on lenders mortgage insurance. Over the past twelve months, 45.4% of dwellings sold across New South Wales had a price tag of $650,000 or less, notes CoreLogic director of research Tim Lawless. However, in the Sydney metropolitan area, just 25.8% of dwelling sales were at a price of $650,000 or less. The State’s stamp duty concessions may push Sydney FHBs towards units, given 33.5% of units sold in the last 12 months went for under $650,000. On a $650,000 dwelling purchase, a FHB will save $25,000 by not paying stamp duty. According to Lawless, we can expect first home buyer sales to stall over the remainder of June and likely surge higher from the beginning of the new financial year.

11.01.2022 First-home buyer activity rises in NSW and VIC According to the latest data from the Australian Bureau of Statistics (ABS), financing for first-time owner occupiers has rebounded significantly this year. In August 2017, there were 10,227 owner-occupier first-home buyer finance commitments the most since December 2009. In original terms, the number of first home buyer commitments as a percentage of total owner-occupied housing finance commitments rose to 17.2% in August 201...7 from 16.6% in July 2017, the ABS said. A major driver of the increases has been the recent policy changes for first-home buyers in New South Wales and Victoria, according to CoreLogic. Since July, first-home buyers purchasing a property valued below $600,000 in Victoria are exempt from paying stamp duty. Discounts are also available for property purchases between $600,000 and $750,000 on a sliding scale, regardless of whether they’re new or existing homes. In NSW, stamp duty was axed for existing and new homes valued up to $650,000. Stamp duty was also discounted for homes valued up to $800,000. As a result, between June and August, the number of owner-occupier first-home buyer housing finance commitments has increased by 59% in NSW and 34% in Victoria. This data highlights that stamp duty is one of the key barriers for first home buyers wanting to participate in the housing market, at least in NSW and Vic, CoreLogic said. In NSW, there were 2,426 first-home buyer commitments in August, the greatest monthly total since January 2012. First-home buyers accounted for 12.9% of owner-occupier commitments over the month, the highest proportion since October 2012. In Victoria, there were 3,162 first-home buyer commitments in August, which accounted for 18.3% of all owner-occupier commitments. The commitments for August was the greatest number since December 2009, and was the highest proportion since August 2013. The surge in first-home buyer activity has not resulted in a boost in house prices, and due to lower interest rates, many are finding it easier to pay off a mortgage than in previous years. by MPA | 26 Oct 2017

10.01.2022 HOUSEHOLD DEBT WEIGHING DOWN ON MORTGAGE HOLDERS Rate rises have always been big news in broking, but politicians are only now beginning to listen. Following this year’s federal budget, Treasurer Scott Morrison ordered an inquiry by the ACCC to force the banks to publicly show their reasoning behind rising mortgage rates. The inquiry will be conducted until 30 June 2018. Household debt connected to rate rises is increasing: Of 3.1 million mortgaged households in Australia, ...about 22% were in mild mortgage stress in March 2017, a 1.5% increase since February as a result of rising interest rates. 1% of households are in severe stress Source: Digital Finance Analytics

10.01.2022 Major hikes IO rates by 30 basis points The Commonwealth Bank of Australia (CBA) has announced it will be reducing its owner-occupier standard variable rate for those repaying principal and interest. From 7 July, customers paying off their own homes will pay a lower standard variable rate of 5.22% per annum, a reduction of three basis points. Around 80% of the bank's owner-occupier customers are repaying principal and interest. A customer with an average mortgage of $350,000 ...will save $78 a year. CBA said it is supportive of the banking regulator’s moves to manage the level of growth and resiliency in the housing market. To meet its regulatory requirements, the bank has also announced it will increase variable interest only home loan rates for owner-occupiers and investors by 30 basis points. Matt Comyn, group executive of retail banking services, said: Paying off your home is important for Australians. For owner occupier customers repaying principal and interest, they can take advantage of the interest rate reduction to pay off their home loan faster. These changes also help us keep the right balance in our home loan portfolio, in line with what our regulators require. The bank is encouraging customers who currently make interest only payments to switch to principal and interest repayments if able. Switching loan types will attract no fees. These interest only changes are not in response to the bank levy that was announced as part of the Federal Budget in May, the bank said. The new rates will be effective from 7 July 2017. Source: Australian Broker

08.01.2022 3 out of 4 Aussies don’t know what a comparison rate is Shocking ME survey reveals mass ignorance regarding interest rates, credit cards and personal loans 74% of Aussies don’t know what a comparison rate is, a survey by ME bank has found. ... The statistic emerged in a study of the financial literacy of 1500 adults of all ages. 57% of participants did not understand that banks determined actual interest rates, rather than the RBA or other institutions, whilst 36% didn’t know that reducing the length of a loan reduces the amount of interest paid. 35% of those surveyed admitted they’d done nothing to educate themselves on banking products, which ME head of deposits and transactional banking Nic Emery said may have contributed to the results: some Aussies fail to educate themselves because they find banking dull and complex and think they know best, while others find working with numbers difficult and put their head in the sand. Misunderstanding debt Brokers working with first home buyers, highly geared investors or non-conforming clients will find ME’s results particularly disturbing, 42% of those surveyed did not understand compounding interest and thus the reason to be patient with savings. Almost three-quarters of respondents did not realise that repaying a credit card at its minimum level could mean the debt would take decades to pay off. In addition to the difficulty of understanding who sets interest rates, 41% of participants were wrong about what determines their interest when presented with options such as credit rating, secured or unsecured and length to repayment. There was also mass confusion over the role of lenders mortgage insurance. Just 20% of those surveyed realised that LMI does not cover the borrower if they were unable to keep up repayments. Finding information 28% of those surveyed by ME had spoken to a professional advisor, a category that includes brokers. Other methods used to learn about finance included reading information on websites, news and comparison sites (40%) and talking to family and friends (19%). Only 7% had attended workshops, seminars or completed online courses. Mortgages were not a huge area of concern for those surveyed: just 10% were ‘not confident’ that they’d found the right product for their needs and to maximise their financial position. Source MPA Editor

06.01.2022 Australia Could Raise Rates Eight Times in Two Years: Ex-RBA Board Member Australia’s central bank could increase interest rates eight times in the next two yea...rs, former board member John Edwards said. The Reserve Bank of Australia is probably already considering a program of rate increases given its forecasts for inflation returning to target and economic growth to accelerate to 3 percent against a stronger global backdrop, Edwards said in a column on the website of the Lowy Institute for International Policy, where he is a non-resident fellow. Theorizing that the long-term cash rate is about 3.5 percent -- lower than the 5.2 percent average over the past two decades -- and the RBA wants to start tightening in 2018 and reach its goal within two years, that would require four quarter-point increases each year, he said. Rates have been on hold at 1.5 percent since last August. Small Steps The RBA traditionally makes small steps and typically doesn’t commit itself to subsequent moves, making the market wary of predicting where the bank will be in a few years, Edwards said. In the current circumstances, he said we can reasonably assume: the RBA considers its current rate to be exceptionally low if the economy improves as it predicts, the next move will be up if the economy was operating, as the RBA predicts, at 3 percent output growth and 2.5 percent inflation, it would think of a sustainable or natural policy rate of at least 3.5 percent most importantly, it will want the policy rate increase to match the forecast improvement in Australia’s economic performance, so rising to at least 3.5 percent by the end of 2019 Edwards noted the risks of rate increases alongside high household debt, with most Australian mortgages on variable interest rates closely tied to the RBA’s cash rate. The bigger the household debt, the more impact a quarter percentage point increase in the policy rate will have on household spending, he said. In the Australian case, it is certainly possible that high household home mortgage debt will crimp consumer spending if the policy rate returned to what was once considered a relatively low long-term rate. Still, Edwards noted that interest paid on Australian mortgages is much less than it was six years ago: while debt has increased, interest rates have fallen a lot. Payments are now 7 percent of disposable income compared with 9.5 percent in 2011, and 11 percent at the peak of the RBA tightening cycle before the 2008 financial crisis, he said. Moreover, if the standard variable mortgage rate peaked at around 7 percent, that would still be nearly one percentage point below the 2011 level, and two-and-a-half percentage points below the 2008 peak, he said. The pace of tightening will anyway be governed by the strength of the economy, Edwards said. If household spending weakness, if the long expected firming of non-mining business investment is further delayed, if the Australian dollar strengthens, if employment growth is persistently weak, then the trajectory of rate rises will be less steep and the pace less rapid. Source: Bloomberg Market

03.01.2022 Interest-only investors rate to rise to 6.50% However, sub-5% rates will still be available to owner-occupiers, predicts 2020 Housing Outlook Interest rates for property investors will rise above 6% by 2020, a new report by QBE has predicted. ... QBE’s Australian Housing Outlook 2017-2020 predicts that interest-only investors will pay 6.50% for a standard variable rate, with those on principal & interest paying 6.05%. Both rates represent a 25 basis point rise from present levels. The report predicts a single increase in the cash rate to 1.75%, occurring in late 2019-20. Therefore, rates for owner-occupiers will go up, but at lower levels than the cash rate: QBE estimate around 20 basis points, pushing the standard variable rate to 5.45%. Owner-occupiers could get lower rates, however. QBE’s report notes that low-risk borrowers with a loan-to-value ratio below 80% can typically borrow at a significantly lower discounted rate. Published indicator rates by the Reserve Bank suggest a typical discount on the standard variable rate by the banks of 75 basis points. No way out for investors Restrictions on lending to investors are expected to be an increasingly prominent feature of the outlook for the market over 2017-18, says QBE. Not only does the report predict a major slowdown in investor lending, it adds that the resulting slowing price growth will further discourage investors. Units prices, in particular, are predicted to fall nationwide. Even if investor demand was to strengthen, warns QBE, that would be met by further restrictions from APRA. Additionally, continued strong demand from foreign investors is likely to also be further discouraged by federal and state government policies. APRA damaging the economy QBE predicts that APRA’s restrictions could cause real harm to the economy, as many brokers have warned. New dwelling commencements have now started to fall and will be a drag on the economy, adding to the weakening mining investment notes the report. The unemployment rate is forecast to drift up to 6% and remain at this elevated level until mid-late 2019 when dwelling construction and mining investment bottom out. Owner-occupier demand will weaken, QBE predicts, reflecting the weaker economy. by MPA | 26 Oct 2017

01.01.2022 RBA decides on March cash rate The official cash rate remains at 1.5%. This marks the 19th consecutive month the RBA has kept the rate steady since it cut the ...official cash rate by 25 basis points in August 2016. The move was highly expected. In finder.com.au's survey on the March cash rate decision, all its 33 members believed the central bank would leave the rate on hold. In a survey of brokers, Hashching found that 93.9% believed the interest rates would remain on hold in March, with 5.3% expecting an increase. More economists and banks are changing their forecasts of interest rate hike this year from two to one or none. Last month, ANZ abandoned its previous forecast of two interest rate increases this year, and now expects no rate hike at all. We no longer expect a rate hike in 2018, following the greater than expected emphasis on the mid-point of the inflation target band and increased comfort on financial stability risks in the RBA Governor’s speech on Thursday evening, said ANZ's head of Australian Economics, David Plank. RBA Governor Philip Lowe said in a speech on 8 February that interest rates would have to start moving up if the economy makes further progress in reducing unemployment and in having inflation return to the midpoint of the target range. From its forecast of two rate hikes this year, NAB now expects only one in late 2018, citing weak growth in wages and the slow progress in bringing down unemployment. It is not impossible that the RBA stays on hold for all of 2018 and raises rates in early 2019, said NAB chief economist Alan Oster last week. CoreLogic head of research, Tim Lawless, said the controlled slowdown in housing markets has eased pressure on the RBA to lift rates in order to quell exuberance in the housing market. "Higher on the RBA Board’s agenda are likely to be inflation and employment. Continued low wages growth (2.1%), and the outlook for the Australian dollar and commodity prices will also be important considerations," said Lawless. AMP Capital's Shane Oliver said that continuing weak growth in wages, sub-target inflation, the Australian dollar remaining too high, and uncertainty around the outlook for consumer spending all argue for rates to remain on hold or even fall. "So on balance, it makes sense to continue to leave interest rates on hold," said Oliver. Meanwhile, ABC Bullion expects the next move in rates to be a reduction. Its chief economist Jordan Eliseo said that while employment data, business conditions, and growth figures are solid, there seems no obvious catalyst to turn around the record low wage growth. He also expects a slowing property market to weigh on confidence. Source: Australian Broker