National Australia Bank holds back on RBA cut… Investor borrowing at highest point in 21 years… ASIC cancels property spruikers' credit licence...
Mortgage rate at National Bank at record low
National Australia Bank Ltd. will not to pass on the full extent of a central bank interest rate cut as it seeks to protect margins that fell last year to the lowest in at least 10 years, according to a report from Bloomberg News.
NAB cut its benchmark mortgage rate by 20 basis points to the lowest level since 1978, according to a statement from the Melbourne-based lender. The reduction, which will take effect from May 13, comes after the Reserve Bank of Australia reduced its key rate by 25 basis points on Tuesday.
This is the first time since December 2012 the lender hasn’t passed on a full central bank cut. It means the bank no longer offers the lowest rate among the biggest Australian lenders, a practice that helped it boost its share of the nation’s mortgage market to 15.4 percent as of August from 12.8 percent in 2009.
Investor borrowing at highest point in 21 years
A record level of investor borrowing in Victoria pushed mortgage lending to its highest-ever April number, figures from mortgage broker Australian Finance Group showed, according to a report from Australian Financial Review. Figures shows that $4.38 billion-worth of mortgages processed by AFG, which accounts for 10 per cent of the total market, was less than March's $5.24 billion figure, but a record for April.
Investor borrowing in Victoria jumped to 40.9 per cent of the total applications from 36.7 per cent in March and 36.9 per cent a year earlier. In New South Wales, investor borrowing stood at 52.8 per cent, "around" its all-time high, AFG said.
Nationally, the proportion of loan applications by investors rose to 43.1 per cent last month from 41.7 per cent in March compared to 39 per cent a year ago.
ASIC cancels property spruikers' credit licence
The regulator announced it had cancelled the credit licence of a company formerly called Heritage Financial Solutions Australia Pty Ltd and Heritage – Freedom & Security Pty Ltd. The company - currently called David Parry Finance Pty Ltd - was placed into liquidation on 26 March, 2015.
ASIC said the cancellation was the result of an ongoing investigation into the conduct of a group of people related to Heritage Financial Solutions involving advice to investors to establish an SMSF to invest in Queensland real estate. ASIC said it had “concerns about the way the loans and property ownership have been structured”.
“Investors who obtained advice or finance from people associated with the company formerly known as Heritage Financial Solutions should contact their lender and if necessary, obtain independent professional advice to ensure that the loans to their SMSFs and their property ownership have been structured in compliance with the Trustees' superannuation law obligations,” ASIC said in a release.
National Australia Bank Ltd. will not to pass on the full extent of a central bank interest rate cut as it seeks to protect margins that fell last year to the lowest in at least 10 years, according to a report from Bloomberg News.
NAB cut its benchmark mortgage rate by 20 basis points to the lowest level since 1978, according to a statement from the Melbourne-based lender. The reduction, which will take effect from May 13, comes after the Reserve Bank of Australia reduced its key rate by 25 basis points on Tuesday.
This is the first time since December 2012 the lender hasn’t passed on a full central bank cut. It means the bank no longer offers the lowest rate among the biggest Australian lenders, a practice that helped it boost its share of the nation’s mortgage market to 15.4 percent as of August from 12.8 percent in 2009.
Investor borrowing at highest point in 21 years
A record level of investor borrowing in Victoria pushed mortgage lending to its highest-ever April number, figures from mortgage broker Australian Finance Group showed, according to a report from Australian Financial Review. Figures shows that $4.38 billion-worth of mortgages processed by AFG, which accounts for 10 per cent of the total market, was less than March's $5.24 billion figure, but a record for April.
Investor borrowing in Victoria jumped to 40.9 per cent of the total applications from 36.7 per cent in March and 36.9 per cent a year earlier. In New South Wales, investor borrowing stood at 52.8 per cent, "around" its all-time high, AFG said.
Nationally, the proportion of loan applications by investors rose to 43.1 per cent last month from 41.7 per cent in March compared to 39 per cent a year ago.
ASIC cancels property spruikers' credit licence
The regulator announced it had cancelled the credit licence of a company formerly called Heritage Financial Solutions Australia Pty Ltd and Heritage – Freedom & Security Pty Ltd. The company - currently called David Parry Finance Pty Ltd - was placed into liquidation on 26 March, 2015.
ASIC said the cancellation was the result of an ongoing investigation into the conduct of a group of people related to Heritage Financial Solutions involving advice to investors to establish an SMSF to invest in Queensland real estate. ASIC said it had “concerns about the way the loans and property ownership have been structured”.
“Investors who obtained advice or finance from people associated with the company formerly known as Heritage Financial Solutions should contact their lender and if necessary, obtain independent professional advice to ensure that the loans to their SMSFs and their property ownership have been structured in compliance with the Trustees' superannuation law obligations,” ASIC said in a release.
