Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Vow informs brokers of major market changes

One of Australia’s largest mortgage aggregators has stressed the significance of staying abreast of pricing and policy adjustments as the market comes to terms with daily changes.

Speaking to Mortgage Business, Vow Financial CEO Tim Brown warned that brokers must keep abreast of all changes to avoid putting customers into the wrong product.

"The last thing they want to do is put a client into a loan that potentially doesn't work for them or potentially might cost them more. Brokers really have to do a lot of research before they put a borrower into a loan in the current climate,” Mr Brown said.

Advertisement
Advertisement

In an effort to educate brokers, Vow has been continuously sending updates to its members of pricing and policy changes as they happen.

In a document shared with Mortgage Business, Vow lists the most recent changes introduced by its top ten lenders.

Recent additions include ANZ’s announcement of new processes to cope with customers switching from an investor loan to an owner-occupied loan.

Mr Brown said the reclassification of home loans will add greater complexity to the lending environment.

"Lenders will now have to come up with a list of questions that borrowers will have to answer or they'll have to show some type of identification to prove that they're actually living in their address,” Mr Brown said.

“I think they'll have to go through some form of identification to prove the client's actually living there, like seeing bills in their name at the address. I think that will probably be the next level of qualifying buyers to make sure they do qualify for a certain rate,” he said.

Other recent changes include Westpac’s introduction of new HEM living expenses, St George’s serviceability changes and the introduction of new HEM tables and Bankwest’s 32 basis point loading on existing investor loans, effective 30 September.

“In this climate where the changes are coming daily we want to make sure brokers have got the most current information available to them all the time,” Mr Brown said.

“Sometimes the software doesn't keep up with the changes so therefore we have to do the electronic version until the change is actually embedded in the software and it often takes three to four days to get those changes through,” he said.

“We need to keep up the electronic changes and again this is another reason why brokers have got to, more than ever, check their emails on a daily basis just to see what has changed. It's changing within hours of the day, sometimes not even overnight.”

Vow informs brokers of major market changes
mortgagebusiness

Latest News

A major insurance provider has announced that it would restrict its offering of lender’s mortgage insurance in light of emerging risks ass...

Lenders will be allowed to extend their pre-approval period for borrowers using the First Home Loan Deposit Scheme given the coronavirus pan...

The federal government has announced several changes to the Takeovers Panel, which include the reappointment of an ANZ executive and the ap...

FROM THE WEB
podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.