Near-record numbers of borrowers are fixing their mortgage rates as lenders crack down on lending standards. As lenders increase funding costs and tighten criteria for assessing borrower dependability, many homeowners are securing fixed rates to ensure stable repayments. However, fixed rates have disadvantages like lack of flexibility. Borrowers must carefully consider factors like early repayment fees and higher post-fixed rates to find the best option.
The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the recent activity in the National Net Lease Dollar Store Market. #CRE
The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the recent activity in the National Net Lease Bank Market.
Jimmy Vercellino is an experienced Phoenix mortgage lender. He and his team work hard to provide a timely, efficient and excellent home loan process for buyers. As a loan specialist, Jimmy manages the entire process for his clients, making the home buying experience a pleasure instead of filled with stress. Visit http://phxhomeloan.com
The Vercellino team operates a boutique-style mortgage branch with a specific culture centered around “serving families”. He is able to originate loans in 46 states and his bank maintains a full line of conventional, government (FHA and VA) and jumbo loan products. He has received several loan production awards including National Top 1% Mortgage Broker Award.
Phoenix Mortgage Lenders Jimmy V NMLS# 184169
5050 North 40th Street Phoenix, AZ 85018
480-800-8387
Jimmy@phxhomeloan.com
Columbia National Real Estate Finance Q1 Capital Markets Report Justin Brindger
Columbia National Real Estate Finance is pleased to present our Q1 Capital Markets Report. The information included has been put together through our team’s extensive market research and analysis as well as data collected at the Mortgage Bankers Association conference, recently held in San Diego, California. We expect to continue to produce quarterly updates covering everything from the latest financing trends to information specific to each capital source.
The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the recent activity in the National Net Lease Dollar Store Market. #CRE
The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the recent activity in the National Net Lease Bank Market.
Jimmy Vercellino is an experienced Phoenix mortgage lender. He and his team work hard to provide a timely, efficient and excellent home loan process for buyers. As a loan specialist, Jimmy manages the entire process for his clients, making the home buying experience a pleasure instead of filled with stress. Visit http://phxhomeloan.com
The Vercellino team operates a boutique-style mortgage branch with a specific culture centered around “serving families”. He is able to originate loans in 46 states and his bank maintains a full line of conventional, government (FHA and VA) and jumbo loan products. He has received several loan production awards including National Top 1% Mortgage Broker Award.
Phoenix Mortgage Lenders Jimmy V NMLS# 184169
5050 North 40th Street Phoenix, AZ 85018
480-800-8387
Jimmy@phxhomeloan.com
Columbia National Real Estate Finance Q1 Capital Markets Report Justin Brindger
Columbia National Real Estate Finance is pleased to present our Q1 Capital Markets Report. The information included has been put together through our team’s extensive market research and analysis as well as data collected at the Mortgage Bankers Association conference, recently held in San Diego, California. We expect to continue to produce quarterly updates covering everything from the latest financing trends to information specific to each capital source.
Debt and equity availability update: The guide to financing in commercial rea...JLL
In the last three years, commercial property lending has continued to gain momentum and it is fundamentally strong, while still maintaining disciplined underwriting standards. The fundamentals of the real estate markets also are improving via the growth in the housing markets, construction, industrial production, and the further strengthening of the consumer psyche. The convergence of these factors leads us to an optimistic 2014 forecast for the real estate lending markets. Banks now trust the improved value of real estate again, which results in increased lending competition that should keep spreads tight and fuel strong performance up the risk curve to broader geographies and asset types this year.
To learn more, visit: http://www.us.jll.com/capitalmarkets
James Sanders - The Greatest Trade EverJames Sanders
Here we have discussed about the tips to greatest trade ever and its steps which will provide the help to drives the economic growth and increase the efficiency.
Jimmy Vercellino is an experienced Phoenix mortgage lender. He and his team work hard to provide a timely, efficient and excellent home loan process for buyers. As a loan specialist, Jimmy manages the entire process for his clients, making the home buying experience a pleasure instead of filled with stress. Visit http://phxhomeloan.com
The Vercellino team operates a boutique-style mortgage branch with a specific culture centered around “serving families”. He is able to originate loans in 46 states and his bank maintains a full line of conventional, government (FHA and VA) and jumbo loan products. He has received several loan production awards including National Top 1% Mortgage Broker Award.
Phoenix Mortgage Lenders Jimmy V NMLS# 184169
5050 North 40th Street Phoenix, AZ 85018
480-800-8387
Jimmy@phxhomeloan.com
“Many different maturities of bond prices tend to appreciate in value with fa...shilendrasharma
“Many different maturities of bond prices tend to appreciate in value with falling rates, but the largest gainers are longer dated bonds, those with more than five years' maturity.”
In the year 2012, the Consumer Financial Protection Bureau conducted a series of investigations into the world of direct payday lenders being offered by a growing number of depository institutions.
http://www.bfwggrants.org.uk
Debt and equity availability update: The guide to financing in commercial rea...JLL
In the last three years, commercial property lending has continued to gain momentum and it is fundamentally strong, while still maintaining disciplined underwriting standards. The fundamentals of the real estate markets also are improving via the growth in the housing markets, construction, industrial production, and the further strengthening of the consumer psyche. The convergence of these factors leads us to an optimistic 2014 forecast for the real estate lending markets. Banks now trust the improved value of real estate again, which results in increased lending competition that should keep spreads tight and fuel strong performance up the risk curve to broader geographies and asset types this year.
To learn more, visit: http://www.us.jll.com/capitalmarkets
James Sanders - The Greatest Trade EverJames Sanders
Here we have discussed about the tips to greatest trade ever and its steps which will provide the help to drives the economic growth and increase the efficiency.
Jimmy Vercellino is an experienced Phoenix mortgage lender. He and his team work hard to provide a timely, efficient and excellent home loan process for buyers. As a loan specialist, Jimmy manages the entire process for his clients, making the home buying experience a pleasure instead of filled with stress. Visit http://phxhomeloan.com
The Vercellino team operates a boutique-style mortgage branch with a specific culture centered around “serving families”. He is able to originate loans in 46 states and his bank maintains a full line of conventional, government (FHA and VA) and jumbo loan products. He has received several loan production awards including National Top 1% Mortgage Broker Award.
Phoenix Mortgage Lenders Jimmy V NMLS# 184169
5050 North 40th Street Phoenix, AZ 85018
480-800-8387
Jimmy@phxhomeloan.com
“Many different maturities of bond prices tend to appreciate in value with fa...shilendrasharma
“Many different maturities of bond prices tend to appreciate in value with falling rates, but the largest gainers are longer dated bonds, those with more than five years' maturity.”
In the year 2012, the Consumer Financial Protection Bureau conducted a series of investigations into the world of direct payday lenders being offered by a growing number of depository institutions.
http://www.bfwggrants.org.uk
Renewing your Mortgage should be treated like a negotiation. All the Lenders want your business! Arm yourself with knowledge to get the best rate for your mortgage.
Louisiana Small Business Loans – Get Approved For Small Business Financing dhamza
Are you looking for a loan for your commercial vehicle? If yes, then you should consider applying for commercial vehicle financing. The process of obtaining business loans for vehicles is quite simple. However, there are certain factors that you need to keep in mind while applying for a commercial vehicle loan.
If you are planning to buy a new commercial vehicle, then you should apply for commercial vehicle financing before buying the vehicle. It is because the finance company will give you a better rate of interest if you apply for a commercial vehicle loan before purchasing the vehicle.
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.
Choosing the lender to apply for a financial product through is always another question that has to be thought about. There are so many different lenders out there and they can each offer different things to the borrower. Each loan type, and lender also has their own benefits and negative factors.
Lenders crack down as borrowers clamour for fixed-rate mortgages _ afr
1. 5/16/2016 Lenders crack down as borrowers clamour for fixed-rate mortgages | afr.com
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Home / Real Estate
PROPERTIES
Apr 29 2016 at 12:15 AM Updated Apr 29 2016 at 12:15 AM
Lenders crack down as borrowers clamour for fixed-rate
mortgages
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Nearrecord numbers of borrowers are fixing rates to cut costs and increase certainty about outgoings. But be
aware of hidden costs.
Nervous lenders are enticing preferred home loan borrowers
with big discounts as they renew efforts to weed out unsuitable
loan applicants with tough new conditions excluding "less
dependable" occupations and incomes.
Less dependable borrowers, say lenders, include those who rely
on a high percentage of commissions or overtime.
The clampdown by lenders is not stopping record numbers of property buyers
worried by recent rate rises out of cycle with official interest rates – and fearful of
more to come – from applying for new fixed-rate deals to lock in repayments, say
mortgage brokers. This is despite speculation this week that the next move in official
rates will be down.
"Speculation that lenders will continue to lift their rates out of cycle with the Reserve
Bank of Australia has meant a near-record number of borrowers are fixing part – or
all – of their mortgage to avoid rising rates," says Jessica Darnbrough, a spokeswoman
for Mortgage Choice, a national network of mortgage brokers.
by Duncan Hughes
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Cheapest 1year fixed rate mortgages
More than one in four mortgages house buyers are choosing a fixed rate, the highest
in more than two years, it estimates.
Financial product research house Canstar estimates that more than one in six visitors
to its mortgage products site are comparing fixed rates, a company record.
About 20 mortgage lenders have discreetly increased loan rates in the past two
months. The lowest standard variable rate is 3.85 per cent, the highest is 6.11 per cent.
The 2.26 per cent spread between the highest and lowest standard variable rate is
more than the official cash rate, which is 2 per cent, says Canstar.
Nervous lenders are enticing preferred borrowers with big discounts.
Lenders are growing more nervous due to the increasing costs of funding loans, rising
regulatory expenses and pressure to ensure that borrowers can repay their mortgages
in the event of an official rate rise.
For example, P&N Bank, one of the nation's largest mutual lenders, is making it
harder for applicants with "less dependable" jobs to qualify for loans, indicating a new
phase in policy intended to slow loan growth and stay within regulatory guidelines.
The lender is telling brokers that "certain income types" will have applicants' annual
total of overtime, allowances and commissions "shaded" – or reduced – by 20 per net
when assessing their eligibility for a loan
Police, nurses, teachers, firefighters and prison offers are defined as "dependable" and
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will not have their overtime payments automatically reduced.
All other occupations where total income is supplemented by irregular payments –
which could include bankers, sales people or farmers – will be reviewed.
The big banks have also been toughening lending criteria with measures ranging
from lower loan-to-value ratios through to limits on the use of negative gearing.
But there are big savings for a qualifying loan applicant.
For example, a house buyer with a $1 million mortgage who switches from the average
4.77 standard variable rate to a 3.5 per cent one-year fixed loan would save about $740
a month in repayments. This equates to nearly $9000 over the term of the offer,
says Canstar.
The accompanying tables show the top fixed-rate loans and a separate category called
"honeymoon" rates, which are an inducement to win new fixed-rate customers from
competitors.
"Honeymooners [those switching from other lenders] can certainly save money in the
short term – just be aware of the increased costs down the track," says Justine Davies
of Canstar. "They revert to significantly higher variable rates once the honeymoon is
over."
For example, CBA's one-year "honeymoon" loan for owner-occupiers is 4.39 per cent
plus a set-up fee of $600.
A lender borrowing $1 million on a 30-year term would repay $5010 a month.
At the end of 12 months, the loan would revert to the standard variable rate of 4.9 per
cent and monthly payments of $5315.
A smarter strategy would be, for example, to switch to CBA's standard one-year fixed
rate of 4.54 per cent and monthly repayments of $5099, or a monthly saving of more
than $200.
CBA has a special $1500 cashback offer on refinances of at least $250,000 that would
comfortably cover set-up fees. These are indicative of current deals and may, of
course, change over time.
Borrowers need to consider the term of the fixed rate, which can range from one to 10
years, and what it reverts to at the end of the term. These can vary considerably.
As a guideline, the average standard variable rate of more than 1100 home loans
monitored by Canstar is 4.77 per cent. When your fixed loan ends, check the
prevailing rates at the time.
"Regardless of the term, the loan rate reverts to the lender's standard variable rate at
the end of the term," says Darnbrough. "That could be significantly higher than your
current interest rate," she says.
"It pays to stay on the ball and revisit your finances before the end of the term."
Mario Borg, principal of Mario Borg Strategic Finance, a property consultant, says a
fixed rate allows "set" repayments for a pre-arranged period, which is "an excellent
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strategy for those wanting certainty about cash flow commitments".
But there are also disadvantages a borrower needs to be aware of before committing.
A fixed term could also mean sacrificing some flexibility. For example you can't make
additional loan repayments or switch products – or lenders – before the term expires.
Borrowers who pay more than the maximum repayment amount can be penalised for
breaches of mortgage terms.
Also, most lenders do not allow a 100 per cent offset account against a fixed rate
mortgage and prohibit redrawal of extra repayments until the fixed term has expired.
A compromise solution might be a split mortgage, which means it is divided between
fixed and variable repayments.
That allows increased flexibility with a higher degree of certainty about repayments
than a variable product.
Borrowers who try to break their fixed rate before the end of term will incur penalties
to compensate the bank for potential losses.
Also remember that the longer the term of the loan, the greater the possibility it
might fall behind comparable products because of rate changes.
"Ask the lender before taking the loan about charges for early repayment and build
the cost into your overall assessment," says Darnbrough.
Property investors choosing a fixed rate should also check with their lender if there
are any conditions to releasing equity for another property.