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Quaranteam Roundup

Writer's picture: Justin CornockJustin Cornock





Good Morning,

I hope this see’s you all well safe and healthy in what is quickly becoming the new normal.

No matter what happens the world continues to turn, I think there is some wisdom and inspiration in the quote from Ho Chi Minh “Remember, the storm is a good opportunity for the Pine and Cypress to show their strength and stability”

I know that my real estate colleagues have found the last week or so very challenging with quarantine and social distancing. Many of whom have done an incredible job, bringing in new technologies to ensure that their clients are still able to sell their homes. The need for innovation has become paramount to adapting to this new normal.

As things continue to adapt, lenders have also been busy with their policies around virtual verification of identity. This is quite a quantum leap in reality here.

While the technology has obviously been available for quite some time, up until now not all lenders have embraced technology willingly. The events of the last few weeks, have forced the hand of lenders, who have been reluctant to implement the ability to verify a clients identity, without the need to physically be there.

Policies vary from one lender to another and some seem to be better than others. One of the most clever platforms I was introduced to in the last week was called ‘ID YOU’ like some of the others it requires an app to be downloaded, but its facility for verification is quite simple, as well as capturing a live video of a conversation between the client and the broker.

Clients too in the last week or so have become much more open to having a meeting in a video conference. There will always be cases where a video meeting won’t work. In the main, I think this is a very positive outcome of the last couple of weeks. Tech will certainly make many things much easier and quicker to get done for a clients application.

With so much still to flow through from the gargantuan stimulus, we still wait on many lenders to present policy around the 50% govt guarantee business loans. I know this is frustrating for many, me included. Especially when you concider that banks like NAB have called these emergency business loans. A smashing rate of 4.5% for up to $250k. However when you drill down into it, they will only lend under a fully assessed application, with 2 years financials and an ability to service over 2.5 years with no ATO debt. A loan like this will only be available to a select few. I also imagine that a business who can service a loan like this wont actually need the money. There is hope that there will be some instruction from the govt and regulators to relax some of these draconian lending policies.

I had several discussions with clients this week, around them being able to borrow to keep afloat, and not currently qualifying for a fully assessed loan. We discovered some of the grants that are available from NSW Govt, they have put their hands in their deep pockets with several offerings see here

Several lenders flowed through with changes to fixed rates and very little actually being passed on with variable.

QBE placed an embargo on some borrowers incomes and industries, with several more lenders stating they will do the same. Making this time more important than ever to have a broker who knows how to navigate the fast flowing river of change happening to us all.

I hope that you all have a great week. I’m here if you need anything at all. Even just to bend an ear.

JC

Scenarios and interest rates quoted above are suggestions and constitute general advice only.


Justin





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