Good morning Happy Tuesday!
Hmmmm it seems that Tuesday is becoming a regularity. I might need to write this on a Sunday….
The world of money was awash with articles around banks losing market share like ANZ, who are pretty bad right now when it comes to even considering an application. With somewhere over a month before they will even pick it up. They are not the only ones in this space though. Pretty much all of the big 4 again are terrible at this not to mention the dragon and some others. Heck even one of my all time favourites Newcastle Permanent are longer than 2 weeks to pick up. It’s no wonder that banks like Westpac are experiencing contraction in the portfolio’s.
It seems to be a bit of a perfect storm, though this has been brewing for several months and it just keeps blowing out. There are still others who go against the grain here like Macquarie and ING who can both do things within 24hours. It kinda makes you wonder…
One of my accounting partners flagged an article with me this week from the ATO that ride sharing like uber is now being concidered for Fringe Benefit Tax (FBT) there truly is no escape from the tax man. See the article here…
As we approach July 23 I know that many of you will be watching out for Mr Frydenberg’s mini budget. With some details already being hedged like the extension of job keeper and its potential changes, the extension of repayment deferrals, and possible tax cuts. This space will certainly be watched with interest. We can only hope that any further stimulus offered or extended will be dealt with better than previous. With Home Builder still not yet able to be applied for, however according to the treasury website all states and territories are now signatories! Woot woot…hmmm
No major rate changes just a few minor ones with ING slipping a little further down the pole to 2.64% on their package variable product, as have Firstmac who can turn a around a loan in about a week with an under 80% Loan to Value Ratio special of 2.69%. ING don’t have any LVR restrictions with their rate. Fixed rates have remained fairly stable with no major changes there. Perhaps the mini-budget might spur on some changes here…
We may very well have the lowest rates in history here, what we also have is one of the most difficult times in history to be able to borrow. Those who remember the late 80’s and early 90’s with 17% + rates will recall that in those simpler and more expensive times that it wasn’t that hard to get a loan. You spoke to your bank, you gave them a payslip, sometimes, and they approved the loan. Right now with the banks forensic assessment of your ability to repay, checking you bank statements for inconsistencies and verification of declared living expenses, describing how you are or aren’t affected by COVID and then trying to remember what you spend that $561.43 on that the bank has asked you about. Means that if you are not speaking to a broker, your chances of navigating the lending quagmire are significantly reduced.
Have a great week out there and stay safe.
JC
Scenarios and interest rates quoted above are suggestions and constitute general advice only.
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