Results Home Loans

July 2024 Update

What’s been going on this month?

Stay current with Results Home Loans and any updates in the market

Rate Movements

As of 19 July 2024, RBA has decided to leave rates unchanged, keeping the Cash Rate at 4.35%.

RBA Cash Rate in July 2014 was 2.50%.

CURRENT INTEREST RATES FOR HOME OWNERS

Based on a $500,000 loan over a 30 year term at 80% LVR with Principal and Interest repayments.

CURRENT INTEREST RATES FOR INVESTORS

Based on a $500,000 loan over a 30 year term at 80% LVR with Interest Only repayments.

Lender Turnaround Times

As at 19/07/2024

Under 24 hrs

2 Days

3 + Days

Industry News

Smaller lenders improving broker turnarounds

The time for smaller banks to reach an initial credit decision on broker loans has improved, according to new figures.

Residential Lending survey found that average turnaround times at smaller authorised deposit-taking institutions (ADIs) fell from eight days in May 2024 to 5.6 business days in June. This is the fastest turnaround time for this segment since October 2022, when it was 5.4 days.

The survey, conducted between 1 and 16 July with 275 brokers, revealed that eight out of 13 small ADIs improved their turnaround times in June. The most significant improvement was at Bank of Sydney, which reduced turnaround times from 11 days in May to three days in June.

Other ADIs like BCU, P&N Bank, MyState, BOQ, Heritage Bank, and HSBC also showed improvement, although HSBC still took 10 business days. Newcastle Permanent improved by three days but still took 13 days, the longest among all small ADIs.

Average turnaround times at larger banks remained stable. The bigger banks improved to 3.8 days in June, with Macquarie Bank leading at two days, followed by Bankwest, Suncorp, and National Australia Bank (NAB) at three days each.

Macquarie Bank was the most commonly used lender in June, with 46% of brokers submitting applications to the non-major bank. ANZ and Commonwealth Bank of Australia (CBA) followed at 41% and 35%, respectively.

Non-banks, including aggregator white label brands, saw their turnaround times decrease to 4.4 days in June. Connective Home Loans took the shortest time at two days, while RedZed, Bluestone Mortgages, and Pepper Money had three days each. La Trobe Financial had the slowest turnaround time at nine days, down from 11 days in May 2024, leading to a drop in broker satisfaction.

Several brokers noted that La Trobe Financial’s loan assessment times were too long, and one broker mentioned delays in receiving responses from the BDM.

We’re now able to off our clients asset & commercial finance with our partner Loan Options.

Other services we can offer your clients

We’re now able to off our clients business loans with Prospa.

Case study

Navigating complex PAYG income

Kaushalee, a dedicated nurse, had multiple sources of income from her 3 employers with two being permanent part-time and the third being casual. The primary challenge was accurately assessing income given her changing hours and ensuring lenders accepted her income sources and long working hours.

How we maximised Kaushalee’s borrowing capacity:

Overtime and Allowances:
Being an essential service worker, we were able to look at lenders who would accept Kaushalee’s overtime and allowance income at 100%, rather than being shaded.
Salary Packaging:
In addition to the above, we further narrowed down our search based on lenders who were able to consider the tax-free portion of her income that she receives through salary packaging.
Casual Income:
Some lenders will average casual income over 48 weeks rather than 52. To maximise Kaushalee’s borrowing capacity, we stuck to the lenders that were able to utilise the full year’s income from her casual employment.

4. Employment Hours Cap:
Considering Kaushalee’s multiple employments, it was essential to ensure the lenders would not cap her working hours in a way that negatively impacted her income assessment. Some lender’s policies would have capped her income at 60 working hours which would have reduced her borrowing capacity and ultimately decreased her purchasing power.

5. LMI Policy Variations:

Policies may differ when the loan falls under Lenders’ Mortgage Insurance (LMI) territory, potentially impacting the assessment of income stability and multiple employment sources. In some cases, lenders are even able to lend up to 90% of the property value without any LMI for nurses. It is however, a balancing act between maximising borrowing capacity and having enough equity/deposit to assist with a new purchase.

In this case there wasn’t one lender that could meet all 5 considerations above however achieving 4/5 was a fantastic outcome for our hard-working client!

Thank You!

The value of a strong network and reliable partnerships cannot be overstated, and your referrals have not only brought us new business opportunities but have also reinforced the belief that we are on the right path to providing exceptional products and services to our customers.

So we wanted to take a moment to express our deepest appreciation for the outstanding support and collaboration we have received from you as our referral partner.

Your willingness to recommend our company to your own network speaks volumes about the trust you place in us, and we are honored to have earned such trust.

We truly appreciate the effort you put into every referral. Please know that we are always here to reciprocate your kindness and support. Should you ever require assistance or need a reliable partner for any venture, please don't hesitate to reach out to us.