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Banks offer mortgage brokers lucrative cash incentives to attract home buyers
Topic Started: 16 Sep 2015, 01:57 PM (1,132 Views)
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Banks including NAB, ANZ offer mortgage brokers new deals to attract home buyers

by Duncan Hughes

Banks are offering mortgage brokers lucrative cash incentives and improved terms to encourage home buyers to apply for their loans or switch lenders.

Many lenders are also offering home buyers' lower rates across their range of mortgage products.

The spread between highest and lowest rates on offer across standard variable and fixed-term products up to five years is the widest in 18 months, reflecting growing competition for business, says Canstar, a company that compares borrowing and savings' rates.

Chris Foster-Ramsay, managing director of mortgage broker Capital Home Loans, said big lenders were keen to attract owner-occupiers with low loan-to-value ratios, typically below 80 per cent, a record of disciplined repayment and regular income.

Mr Foster-Ramsay said lenders were allowing marginally more discretion when negotiating the terms of a loan with borrowers after recent tightening.

Regulators' concerns about overheating in the investment property market resulted in rising rates, increased loan-to-value ratios and stricter evidence of ability to pay, such as reviews of income from all sources, other debts and the impact of higher interest rates on family budgets.

National Australia Bank and Australia and New Zealand Banking Group are both offering mortgage brokers cash-back payments and other incentives for owner-occupier borrowers that switch from another lender.

For example, NAB is offering a variable rate of 4.15 per cent on its Homeplus mortgage products for new and refinancing loans between $250,000 and $750,000.

It applies only to owner-occupied loans and principal and interest repayments.

Lenders are eligible for a $1500 cash-back offer if they have an existing transaction account and NAB credit card.

ANZ has countered with a $1200 cash-back deal that mortgage brokers can offer clients.

It also applies only to owner-occupier buyers and a lending minimum of $300,000.

Other lenders are expected to make comparable offers as competition intensifies.

Read more: http://www.afr.com/real-estate/banks-including-nab-anz-offer-mortgage-brokers-new-deals-to-attract-home-buyers-20150908-gjhp3f
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peter fraser
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The only cash back deals I've seen are where the cash incentive is paid to the borrower.

I think that Duncan is a little confused.
Any expressed market opinion is my own and is not to be taken as financial advice
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Terry
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Similar to how crack suppliers need their dealers to work in the face of competition.
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peter fraser
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Terry
16 Sep 2015, 06:41 PM
Similar to how crack suppliers need their dealers to work in the face of competition.
No
Any expressed market opinion is my own and is not to be taken as financial advice
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Ex BP Golly
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peter fraser
16 Sep 2015, 07:29 PM
No
You sell crack as well?
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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peter fraser
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Ex BP Golly
16 Sep 2015, 10:50 PM
You sell crack as well?
sorry I didn't realise that you are a user.
my commiserations.
Any expressed market opinion is my own and is not to be taken as financial advice
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The Whole Truth
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peter fraser
16 Sep 2015, 03:10 PM
The only cash back deals I've seen are where the cash incentive is paid to the borrower.
Brokers have always received lucrative cash incentives from banks. They are called commissions.
Outsource the pointy end of the stick, that way when it unravels you can blame the agents, sack them, and not have to worry about redundancy payments. Banks are very clever.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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