Swipe right to buy your first home

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A new web platform described as a ‘dating app but for home-ownership’ says it can help users enter the property market in half the time it usually takes.

Mortgage Mates – the brainchild of Perth-based mates Daisy Ashworth and Jess Vesely – uses algorithms to match you with like-minded individuals who share similar housing preferences but also don’t yet have a big enough deposit to crack the property market.

Ways you can search for ‘mates’ include Australia-wide location options, housing choices (apartment, unit, house or land packages), price, age and gender.

Once connected and keen to buy, the duo say they can link you with legal services to help you safely and securely enter the property market.

The co-founders say that by matching up with another user who shares your housing aspirations you can have the security of home-ownership over renting or living in a share house.

The other major benefit of pooling your money with like-minded individuals is increasing your property options, the co-founders say.

Another way to crack the property market sooner

Another way to get into the property market in 2020 is through the federal government’s First Home Loan Deposit Scheme, with applications for the scheme opening on 1 January 2020.

Run by the National Housing Finance and Investment Corporation (NHFIC), the scheme this week launched an interactive online eligibility tool to assist first home buyers determine their potential eligibility (with property price caps further down the page).

Under the scheme, some first home buyers will be able to borrow up to 95% of the value of their property without forking out for Lenders Mortgage Insurance (LMI).

Last week it was announced that NAB is the first lender on the panel. The remainder of the panel will be announced in the coming weeks.

Get in touch

There’s one big catch when it comes to the First Home Loan Deposit Scheme – and it’s a bit of a doozy.

The scheme is limited to just 10,000 first home buyers loans each year on a ‘first come, first served’ basis.

When you consider that the number of Australians who bought their first home in 2018 totalled 110,000, if you are planning on using it in 2020, it’s best to get the ball rolling on it now.

So if you’re considering purchasing a property but don’t have a 20% deposit saved up yet – get in touch.

We’d love to run you through the scheme in more detail and help you plan ahead for the new year.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Banks ‘too cautious’ on SME loans: financial regulators

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The country’s top financial regulators are concerned banks are ‘too cautious’ when it comes to loans for small business borrowers.

The Council of Financial Regulators (CFR) – which is chaired by RBA governor Philip Lowe and includes APRA, ASIC and federal Treasury – met to discuss the tight credit conditions for small businesses and the associated reduced risk appetite from many lenders.

As a result, ASIC will soon officially confirm that the responsible lending laws don’t apply to small businesses.

In their post-meeting quarterly statement, the CFR stressed that the flow of credit is fundamentally important to the functioning of the Australian economy.

“(We) discussed the concern that lenders’ risk appetite for some types of lending may have swung too far towards caution,” the CFR said.

The CFR’s statement is in response to repeated complaints from bankers this year that tighter small business lending has been an unintended consequence of the Hayne royal commission.

Great, so what are they actually doing about it?

During the meeting, CFR members discussed that in the coming weeks ASIC will release updated guidance on responsible lending provisions.

“It will confirm that responsible lending requirements do not apply to loans made predominantly for business purposes, regardless of the type of security offered for the loan,” said the CFR statement (and yes, they even bolded the ‘do not’ bit!).

The guidance will also assist lenders to better understand their obligations and reduce the risk of non-compliance.

Great, but what can I do about it?

That’s the easy bit – get in touch with us.

The lending appetite in the SME space is something we’re well across and are more than happy to bring you up to speed on.

So drop us a line and we’ll be happy to run you through some of your business’s financing options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Banks ‘too cautious’ on SME loans: financial regulators

,

The country’s top financial regulators are concerned banks are ‘too cautious’ when it comes to loans for small business borrowers.

The Council of Financial Regulators (CFR) – which is chaired by RBA governor Philip Lowe and includes APRA, ASIC and federal Treasury – met to discuss the tight credit conditions for small businesses and the associated reduced risk appetite from many lenders.

As a result, ASIC will soon officially confirm that the responsible lending laws don’t apply to small businesses.

In their post-meeting quarterly statement, the CFR stressed that the flow of credit is fundamentally important to the functioning of the Australian economy.

“(We) discussed the concern that lenders’ risk appetite for some types of lending may have swung too far towards caution,” the CFR said.

The CFR’s statement is in response to repeated complaints from bankers this year that tighter small business lending has been an unintended consequence of the Hayne royal commission.

Great, so what are they actually doing about it?

During the meeting, CFR members discussed that in the coming weeks ASIC will release updated guidance on responsible lending provisions.

“It will confirm that responsible lending requirements do not apply to loans made predominantly for business purposes, regardless of the type of security offered for the loan,” said the CFR statement (and yes, they even bolded the ‘do not’ bit!).

The guidance will also assist lenders to better understand their obligations and reduce the risk of non-compliance.

Great, but what can I do about it?

That’s the easy bit – get in touch with us.

The lending appetite in the SME space is something we’re well across and are more than happy to bring you up to speed on.

So drop us a line and we’ll be happy to run you through some of your business’s financing options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The ‘Airbnb of pools’ splashes into Australia

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Got a pool you’re constantly scooping leaves out of but never use? Or perhaps you’re looking to cool off this summer in the privacy of someone else’s backyard. Well, a new pool-sharing app has just launched in Australia.

We Aussies love to swim. In fact, we’ve won the second most swimming gold medals at the Olympic Games – only behind the US.

And it’s no wonder why: research shows that nearly 2.7 million Aussies live in a house with a pool – the highest per capita in the world. That means either you or one of your nearby neighbours likely owns a pool.

To help us make the most of this tapped resource, an online marketplace for pool sharing called Swimply has launched.

How does it work?

Described as the ‘Airbnb of pools’, the service allows pool owners to rent their pool out by the hour.

The website and app features a platform where owners are able to list their pool and include customised information on availability, rules and prices.

Glancing at the website, listings range between $25 and $75 an hour – not too bad for an asset that would sit there collecting leaves otherwise.

Swimply makes its money by taking 15% of the hire fee paid to hosts and charging users a 10% service fee.

Interested in diving in?

If you own a pool and are interested in listing it, it’s worth noting that Swimply has entered into a partnership with pool maintenance supplier Poolwerx.

As part of the partnership, Poolwerx will undertake compliance checks of all pools to make sure they meet Swimply’s hygiene and safety standards.

Other money-spinning ideas

The sharing economy is taking off in Australia. In fact, according to the Sharing Hub, one in 10 Aussies make on average $1100 month from the sharing economy – that’s $13,200 a year that could help you pay off your mortgage.

Here are some other ways you can make an extra buck courtesy of your unused assets or time:

Car Next Door – got a spare car that’s sitting unused in the garage? Someone would likely rent it off you for $35 a day.

Airbnb – rent out a spare room, or even an unoccupied investment property, for anywhere between $60 and $250 a night.

Camplify – owners of caravans, campervans, motorhomes and camper trailers can earn $280-$2100 per week hiring to holidaymakers.

Spacer – Australia’s premier peer-to-peer marketplace for self-storage. Rent your garage or car park for a few hundred dollars a month.

The Volte – this website is changing the way Australians consume fashion. It’s a designer fashion rental marketplace connecting borrowers and lenders.

Mad Paws – who doesn’t like pets? Even better, get paid to look after someone else’s for $30-$50 a day.

Drop us a call

If you want some more tips to help you pay off your mortgage, then get in touch. We’ve got a range of tips and techniques that can help you out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Greater protections for borrowers under new debt collection guidelines

Borrowers struggling to stay afloat will be offered greater protection from debt collection agencies under new guidelines being applied by Australian banks.

As recently reported by the ABC, debt collectors can legally sue to recover debts as little as $5,000, with one debt collection agency suing hundreds of people for bankruptcy to recover debts.

“Consumer advocates were alarmed the tactic meant people were being dragged through the courts and risked losing their homes over small debts,” the ABC report states.

New guidelines

The good news for borrowers is that the Australian Banking Association’s (ABA) new guidelines not only outline a new, more stringent process that banks must follow before they sell a debt to a collection agency, but it also includes provisions for once a debt is sold.

The guidelines outline that adhering banks must:

– proactively contact a customer to find other solutions before a debt is sold (this can include restructuring, consolidation and hardship support)

– not sell any debt that is in the process of being disputed by a customer

– only contract debt collectors that follow all regulatory codes and a bank’s own policies for supporting customers in hardship

– regularly audit all contracted debt collectors to ensure they meet the high standard set by the new guidelines

– require a debt collector to consult with a bank before bankruptcy is initiated, giving the bank an opportunity to repurchase the debt if a vulnerability is identified

– as an interim before a government review, each bank will assess the bankruptcy threshold and determine an appropriate level (for competition reasons the industry as a whole cannot set its own level)

– if a customer has an ongoing vulnerability and there is no reasonable prospect of the debt being repaid a bank will not sell this debt.

Moving forward

As part of the new guidelines the ABA, along with consumer groups Financial Counselling Australia, the Consumer Action Law Centre, and the Financial Rights Legal Centre, have written to the federal government to request a review of the $5,000 threshold for forced bankruptcy.

“This new guide includes some really important protections, including that even if a bank sells a debt, the debt purchaser cannot move to forced bankruptcy without the permission of the bank,” says Fiona Guthrie, CEO of Financial Counselling Australia.

Gerard Brody, CEO of the Consumer Action Law Centre, says the new guidelines will help ensure forced bankruptcy is the last resort possible.

“It is so important that debt buyers understand customer circumstances and explain why bankruptcy is appropriate before taking this sort of harsh debt collection action,” says Brody.

“No one should risk losing their home because they’ve found themselves in a vulnerable financial position.”

Final word

As outlined above, if you’re going through financial hardship and are struggling to repay your debts, there are often a number of other steps you can take before resorting to bankruptcy.

If you’d like to explore those options, get in touch – we’d be happy to go through them with you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.