Trending Financial News 16 December

First Home Loan Deposit Scheme lenders announced

The National Housing Finance and Investment Corporation has announced that Commonwealth Bank will join NAB as the second major bank lender that will be able to offer loan deposit guarantees under the Australian Government’s new First Home Loan Deposit Scheme, starting 1 January 2020.

Commonwealth and NAB are the biggest of 27 lenders to be approved to partner with the scheme which was a key election promise from prime minister Scott Morrison.

The lenders have been chosen to enable ‘strong activation of mortgage broker channels’ and ‘promote choice’ for first home buyers.

All lenders will not charge eligible customers higher interest rates than equivalent customers outside of the Scheme.

Which lenders are part of the First Home Loan Deposit Scheme?

The Morrison government’s First Home Loan Deposit Scheme starts on 1 January 2020. The full list of lenders participating in the scheme is below:


National Australia Bank
Commonwealth Bank of Australia
Australian Military Bank
Auswide Bank
Bank Australia
Bank First
Bank of us
Bendigo Bank
Beyond Bank Australia
Community First Credit Union
CUA
Defence Bank
Gateway Bank
G&C Mutual Bank
Indigenous Business Australia
Mortgageport
MyState Bank
People’s Choice Credit Union
Police Bank (including the Border Bank and Bank of Heritage Isle)
P&N Bank
QBANK
Queensland Country Credit Union
Regional Australia Bank
Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank Ltd)
Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
The Mutual Bank
WAW Credit Union

Compare home loans from these lenders and other lenders at InfoChoice.

How to apply for the First Home Loan Deposit Scheme

The Morrison government’s First Home Loan Deposit Scheme starts on 1 January 2020.

Applications for the Scheme are not yet open but will open within weeks.

Once the Scheme commences, applications from eligible first home buyers can only be made through participating lenders or their authorised representatives, like a mortgage broker.

The government’s National Housing Finance & Investment Corporation will not accept applications directly.

Information about price and income caps for the scheme is here and at the NHFIC website.

Westpac board survives fiery AGM

Retail and institutional investors vented their anger over 23 million admitted breaches of anti-money laundering regulations and a perceived delay in disclosure of the magnitude of the breach by Westpac at the bank’s 2019 AGM in Sydney last Thursday.

Non-executive director Ewen Crouch, who chaired the bank’s risk committee did not seek re-election. Non-executive director Peter Marriott survived a vote of about 40 per cent against his re-election. 35 per cent of shares voted against the board’s remuneration report, triggering a motion to spill the board.

The spill motion was easily defeated with more than 90 per cent of shares against.

Home loan sales in decline

Lenders are competing hard for borrowers because home loan sales remain in a slump according to Australian Prudential Regulation Authority quarterly property exposures data.

In the three months to 30 September 2019, banks settled $89.4 billion in new home loans, down from $89.7 billion one year ago.

Investor loan sales and owner occupier loan sales were both down for the quarter. The total value of loan sales was down despite higher average loan sizes.

Average home loan size in Australia rose 2.1 per cent from $273,700 in the September quarter of 2018 to $279,400 in September 2019.

Compare home loans at InfoChoice.

Australian home loan market trends for 2019

Australian Prudential Regulation Authority quarterly property exposures data for September 2019 reveals that the average mortgage size in Australia in September 2019 is $279,400, up 2.1 per cent in 12 months.

Fewer interest-only home loans are being sold in 2019, with $12.4 billion interest-only loans settled in the three months to 30 September, down from $14.4 billion 12 months ago.

The number of mortgages with LVRs of 80 per cent or more increased from  $18.6 billion to $20.5 billion.

The proportion of low-doc loans fell, from $4.79 billion to $3.87 billion.

The proportion of loans sold through brokers remained stable at 50.1 per cent.

A new bank approved – but not yet open

Australia’s fifth neobank – IN1 Bank – received a banking licence on Friday as a restricted authorised deposit-taking institution.  There is no website yet at its registered domain in1bank.com.au  and no image or logo in the license application. IN1 has around $5 million in capital, its directors held no meetings at all over the year to June 2019 and under its license kit may not take in excess of $2 million in deposits, reported banking newsletter BankingDay.com.

Thinktank launches self-employed residential loans

Commercial property financer Thinktank, which specialises in lending to self-managed super funds (SMSFs), has reported surpassing $2 billion in loan settlements earlier this month.

Thinktank CEO Jonathan Street said Thinktank had loaned out $1 billion to investors in the past 22 months.

“Based on current projections, the $3 billion mark is expected to be reached in early 2021.

Mr Street said Thinktank had seen strong demand for self-employed residential loan products introduced earlier this year.

Thinktank has added 31 staff this year in Sydney, Brisbane and Melbourne taking total staff numbers to 70.

Compare loans for small business at InfoChoice

Auction Results for 14 December 2019

Strong auction results continue in December 2019 in Australian capital cities with Sydney and Melbourne leading the way. Clearance rates are holding up in the mid 70 per cent range despite increased volumes indicating strong demand in key markets.

Sydney Auction Results for Saturday 14 December 2019

There were 757 residential property auctions held in Sydney on Saturday 14 December 2019. 76 per cent produced a sale for a median sale price of $1,164,000 in preliminary results reported by Domain.

Melbourne Auction Results for Saturday 14 December 2019

There were 1226 residential property auctions held in Melbourne on Saturday 14 December 2019. 72 per cent produced a sale for a median sale price of $770,000 in preliminary results reported by Domain.

Adelaide Auction results for Saturday 14 December 2019

There were 76 residential property auctions held in Adelaide on Saturday 14 December 2019. 56 per cent produced a sale for a median sale price of $521,250 in preliminary results reported by Domain.

Brisbane Auction results for Saturday 14 December 2019

There were 34 residential property auctions held in Brisbane on Saturday 14 December 2019. 44 per cent produced a sale for a median sale price of $935,000 in preliminary results reported by Domain.

Canberra Auction results for Saturday 14 December 2019

There were 51 residential property auctions held in Canberra on Saturday 14 December 2019. 61 per cent produced a sale for a median sale price of $755,000 in preliminary results reported by Domain.