Mortgage News

SMH Business has reported that, CBA has dismissed several Bankwest executives, including a former risk officer, claiming the lender ”systemically” inflated the credit quality of hundreds of commercial property loans and mortgages when it was owned by British-based HBOS”.

“Despite the losses, CBA chief executive Ralph Norris said the Bankwest acquisition was something he would do ”a 100 times over” if the opportunity arose again, given the strong growth outlook for the West Australian economy”.

Posted by Guru Prasad of  Oasis Home Loans – Parramatta

SMH & Domain has reported over the property markets signs of slowing down, as the number of online advertisements increased for the month of July.

SQM Research Data showed that there was a 5.1% increase overall across the country. The increase was comprised not so much of new listings popping up, but more of the older stock being re-listed as it was not moving.

Simon Reibelt from Oasis Home Loans Northern Beaches said that Vendors may not be obtaining the prices they are looking for, in addition the market’s activity also drops when it comes to election time.

Albert Achanfuo-Yeboah of Oasis Home Loans-Southern Highlands said in previous days that the threat of rising joblessness percentages would most likely play a part in the decision to raise rates or not. Following this today a story saying similar thought’s to Albert Achanfuo-Yeboah‘ s speculation was in smh “Update Australia’s unemployment rate unexpectedly rose to 5.3 per cent in July as more people sought work. Investors dumped the dollar as the surprise weakness all but ruled out another rise in official interest rates this year.

The jobless rate jumped from the 5.1 per cent recorded for both May and June, according to the Australian Bureau of Statistics. Analysts had predicted the steady rate to continue.”

smh reported that “banks dubbed ‘greedy thieves’ after monster profit”, Albert Achanfuo-Yeboah of Oasis Home Loans-Southern Highlands read. The story continued to read like this.. “Update Commonwealth Bank’s monster profit may become an election issue with a senator slamming banks as ”greedy thieves” and a consumer advocate saying struggling households will be distressed by its magnitude.

The bank today reported its full-year cash profit swelled more than 40 per cent to $6.1 billion – or almost $700,000 an hour. That’s the largest annual profit recorded by an Australian bank.”

SMH Business reports that, ”National Australia Bank has effectively ruled out a near-term increase in its mortgage rates, pressuring its rivals also to hold steady, even as the cost of funding their loans erodes profits.”

“Handing down a 22 per cent rise in third-quarter cash earnings to $1.1 billion, NAB chief executive Cameron Clyne yesterday promised he would continue to price home loans at a discount to the other big lenders, as part of the bank’s strategy to increase its share of the mortgage market.”

“But he gave the strongest sign yet that NAB was prepared to avoid out-of-cycle rate increases, acknowledging that it needed some ”flexibility” in pricing mortgages as wholesale borrowing costs rose.”

Posted by Guru Prasad of Oasis Home Loans – Parramatta

smh reported today that,

“Days after its drawn-out bid for AXA APH appeared to have hit a regulatory wall, NAB had a boost when the Australian Competition and Consumer Commission yesterday agreed to push ahead with market soundings over a series of undertakings the bank hopes will ease concerns over the initial transaction.

Twelve torturous weeks of talks between the bank and the ACCC resulted in the three-way deal. The undertakings also provide for a substantial commitment to support the development of the platform for at least three years”.

Albert Achanfuo-Yeboah of Oasis Home Loans-Southern Highlands said that big takeovers in a sense of this nature are inevitable are are going to happen sooner or later anyway. Albert Achanfuo-Yeboah also said that we must remember the Westpac  Bank and St George venture that we have all accepted eventually.

SMH reports that the pace of new home-loan growth has slowed over the past year amid higher interest rates, slowing home-price growth and a reduction in the amount of cash available to first-home buyers through government grants.

Posted by Guru Prasad from Oasis Home Loans Parramatta

To keep themselves in line with the four majors, the 5 smaller banks of Australia have all cut their maximum borrowing amount for First Home Owners reports SMH Business.

The new reduced borrowing limits are both a reflection of policies with their parent majors but also of the new conservative approaches for lending since the GFC. Some of the smaller banks such as St George have cut their maximum loan sizes by up to $60,000.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the banks have all seen a slight profit margin raise over the past months, and may seek to keep control over bad debts in their loan books. Reducing borrowing amounts may be a method to assist this.

SMH Business reports that Sydney’s rental and vacancy figures will be of interest as the Australian Property Councils report is released in the coming week. The report is expected to reflect lower affordability and vacancy numbers as Australia’s job market ramps up and heads out of the shadow of the GFC.

Though with the development of new properties still at a slow pace facing many issues, the opportunity for easing the rental pressure is still to be of concern to experts.

Simon Reibelt from Oasis Home Loans Northern Beaches said that there will always be a shortage of available properties until the development and construction market returns for full strength.

SMH BusinessDay and writer Chris Zappone’s 2 August 2010 Article Extract:

New home sales fell for a second straight month in June to a 17-month low, as rising interest rates continued to erode demand.

The Housing Industry Association’s home sales index dropped 5.1 per cent in June, following a 6.4 per cent drop in May, as the lingering effects of pricier loans acted as a deterrent to new buyers entering the market.

Simon Reibelt from Oasis Home Loans Northern Beaches.