Making News this Week

CUA calls for mortgage capital rules to be fairer
CUA, the nation’s biggest credit union, has singled out evening up mortgage capital rules as the key competitive issue for the Murray financial system ­inquiry to address, arguing the big four banks have too big an advantage. read more

Adelaide mortgage broker Malcolm Royce Jones jailed for $170K theft
An Adelaide mortgage broker who stole $170,000 from a client has been jailed for more than two years. Malcolm Royce Jones, 52, pleaded guilty to charges including attempted deception. read more

Clawback fees charged by mortgage brokers for early exit could be in breach of Australian Consumer Law
Clawbacks are perceived to have become a de facto early-exit fee charged by some brokers attempting to recover commissions they either have been paid by the lender, or would have been paid over the period of the loan. read more

Mortgage website warns about mixing broking and planning
Flongle, which acts as a middleman between borrowers and mortgage distributors, told the Financial System Inquiry that it is inconsistent for FOFA reforms to apply to the planners at one firm but not the brokers. read more

Westpac’s loan serviceability buffer questioned
A new report has raised concerns that Westpac’s loan serviceability buffer is too low for borrowers to withstand rate rises. Interest rate buffers are used to assess a borrower’s ability to meet mortgage repayments in the event of a rate rise. According to the JP Morgan Australian Mortgage Industry report, Westpac’s buffer rate of 6.8 per cent is just under two per cent above the current rate of repayment on a standard mortgage. read more

Mortgage franchise officially launches financial planning service
One of Australia’s largest franchises, Mortgage Choice, has officially marked its plunge into financial planning with the launch of a new advertising campaign. Read More

Want a 2.8 per cent mortgage?
The Reserve Bank, which has been otherwise idle over the past year, has been keen to point out that the banks are doing its work for it by competing and cutting mortgage rates, though it is mostly fixed rates that the competition is working on. Typical variable rates are still around 5.2 per cent, fixed rates have been nudging 4.9 per cent. You can get a 2.8 per cent mortgage, but the catch is you have to be in the UK to get it. But today I ask: what is stopping our rates falling that far? read more

We’ve got the world’s best mortgage market: John Symond
Aussie Home Loans founder John Symond, who helped ignite a 1990s wave of mortgage competition against the banks, rejects claims ­competition in home loans is ­inadequate, such is the rivalry among the big four banks eager to lend money for housing. read more

Homeowners further behind on mortgage repayments
The latest Fitch Ratings Mortgage Delinquency Report found that while Victoria and New South Wales dominated the worst performing regions, Queensland as a whole was doing worse than anywhere else. read more