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Rate Money hits $5bn in settlements

The home loan provider has reached $5 billion in home loan settlements in under four years of business.

Rate Money achieved this new milestone a mere seven months after reaching $4 billion in home loan settlements. The home loan provider has reportedly assisted 8,000 self-employed and migrant Australians to secure their financial goals to date.

According to Rate Money, this new milestone reflects the trust and confidence that self-employed Australians have placed in the company to help them navigate through hard times and reach financial aspirations.

Chief executive and co-founder of Rate Money, Ryan Gair, said: “We’re extremely proud to have hit $5 billion in settlements in just under four years, particularly in the current environment where we have just seen the Reserve Bank lift its official cash rate to 4.1 per cent, a level not seen since early 2012.

“Since establishing in 2019, Rate Money has helped thousands of self-employed Australians get through some of the toughest times business owners have ever experienced.

“Our success lies in the fact that we believe self-employed people are the most reliable borrowers in the country, they’re hard workers who know how to make money, how to save, and how to scrimp in tough times.

“Our results prove this and we will continue to keep innovating our product offering in order to provide workable solutions for thousands of self-employed Australians who will be facing even tougher criteria in the years to come.”

APRA buffer ‘unfair trap’, Gair says

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Mr Gair recently labelled the Australian Prudential and Regulation Authority’s (APRA) 2.5–3 per cent serviceability buffer as an “unfair trap” for mortgagees who are looking to refinance.

According to the CEO, the removal of the buffer would put consumers in a better financial position in the long term, while recognising that existing borrowers have already proven their ability to service loans, allowing them to save by refinancing to a loan with a lower rate.

“APRA should have separate recommendations to regulate existing borrowers: they should allow those looking to refinance to simply show that they can meet the repayments along the same lines as applying for a new loan and that your current income can still service the repayments,” Mr Gair said.

The Council of Financial Regulators (CFR) stated last week (15 June 2023) that APRA’s serviceability buffer "remains appropriate" in the current economic climate, however, it noted that APRA would continue to assess the “appropriateness of macroprudential policy settings” as financial and economic conditions continue to evolve.

[RELATED: APRA buffer ‘unfair trap for mortgagors, CEO says]

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