Digital Finance Analytics (DFA) Blog
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APRA released their quarterly property exposure statistics yesterday, to September 2018, alongside the quarterly performance statistics which we will discuss in a separate post. Worth pausing to say this is aggregated data, so we cannot get a feel for individual banks, though a cross sector view does provide some context. Worth also saying they warn … Continue reading “More Loans Written Outside Serviceability”
After plans were originally announced in September, online Australian retail group Kogan.com has launched its home loan offering today (28 November), via Australian Broker. The website sells everything from technology and homewares to holidays and insurance, and will now begin offering Kogan Money Home Loans. The products are for a range of borrowers, including first … Continue reading “Kogan launches home loan offering”
Australian fintech Tic:Toc – the world’s only fully digital home loan platform – has announced Bendigo Bank will use Tic:Toc’s proprietary technology to power its own instant home loan, Bendigo Bank Express. The white label partnership will allow Bendigo Bank to be the first Australian lender offering a digital home loan application and assessment process … Continue reading “Bendigo Bank To Use Tic:Toc’s Proprietary Technology to Power its Own Instant Home Loan”
The SMH published an article today “‘It’s our version of the GFC’: warning on looming interest-only crisis” which dissects the Interest Only Loan repayment issue, and includes a number of quotes from DFA. Martin North, the principal at consultancy Digital Finance Analytics, said interest-only loans account for about $700 billion of the $1.7 trillion in … Continue reading “SMH Does Interest Only Loans”
From Guest Blogger Alex Petrovic – currently working as finance content contributor. Australia’s gig economy has been on the rise for a number of years, and new data by the Australian Bureau of Statistics (ABS) reveals that the number of workers considered to be part of this economy is still growing. From Deliveroo to Uber … Continue reading “How Australia’s growing gig economy affects self-employed home loans”
In NAB’ results today they included this slide on the gross income distribution of households in their mortgage portfolio. Gross income is defined as total pre-tax unshaded income for the application. This can include business income, income of multiple applicants and other income sources, such as family trust income. And it relates to draw-downs from … Continue reading “Mortgage Distribution By Income Bands”
From MPA. The mortgage sector can expect a lower volume of loans in the short-term as banks tighten their lending standards, according to the CEO of an Australian property research firm. The royal commission has found that the current process for ensuring home loan customers provide accurate information about their incomes, expenses, and debts is … Continue reading “Short-term drop in loan volume as banks tighten lending”
From Business Insider. CBA owned mortgage broker Aussie Home Loans does not have the capability to detect fraud committed by its brokers and instead waits until the banks detect scams and alert them as it does not have the resources. The admissions were made by Aussie Home Loans general manager of people and culture Lynda … Continue reading “Aussie Home Loans Relied On The Banks To Trap Mortgage Fraud”
The Financial Services Royal Commission just published an information paper, the third in their series, on car loans ahead of their hearings next week. They say car loans make up a very small proportion of new finance commitments, making up 4.2% of total new finance commitments in calendar year 2017, an increase from 2.7% in … Continue reading “Royal Commission On Car Loans”
From The Adviser. Mortgage brokers believe that tighter prime lending policies and changing customer needs will drive up demand for non-conforming mortgages over the next 12 months, according to new data. A Pepper Money-commissioned survey of 948 mortgage brokers has revealed that 70 per cent expect to write more non-conforming loans in the coming year, … Continue reading “Brokers expect to write more non-conforming loans”