Mortgage Business
CBA hikes floor rate, predicts 2022 rate rise By Malavika Santhebennur 24 June 2021
The big four bank has said that it has increased its serviceability floor rate to ensure it continues to lend responsibly, and has predicted that the cash rate will rise to 1.25 per cent by Q3 2023.
The Commonwealth Bank of Australia (CBA) has increased its serviceability floor rate to 5.25 per cent per annum, up from the previous floor rate of 5.10 per cent, effective 19 June.
However, the major bank said its interest rate buffer of 2.50 per cent has remained unchanged.
Explaining the reason for the floor rate increase, a CBA spokesperson said that it is to ensure that CBA continues to lend responsibly in the current record-low interest rate environment, and added that it has formed a part of its regular monitoring and review
Sydney auction rate strong despite COVID-19 outbreak By Malavika Santhebennur 23 June 2021
CoreLogic figures have revealed that over 1,100 homes were taken to auction in Sydney and the clearance rate exceeded 80 per cent despite the recent COVID-19 outbreak.
The property research house’s auctions summary for the week ending 20 June has revealed that there were 2,418 homes taken to auction across the combined capital cities last week, revising down from the 2,610 auctions predicted earlier in the week.
CoreLogic attributed the majority of the downwards revision to Melbourne once again.
The preliminary clearance rate across the combined capital cities was 77.8 per cent last week, compared with 77.4 per cent over the previous week, which revised down to a final clearance rate of 73.6 per cent.
‘Perfect storm’ propels asset finance demand: Connective
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A range of factors has driven an increase in demand for asset finance, and the current EOFY period is the “perfect time” for brokers to expand their offerings, according to Connective.
The aggregator’s head of asset finance, Brent Starrenburg, said there has been a range of factors driving demand for asset finance, including federal budget measures for small-to-medium enterprises (SMEs).
“Recently, there has been a ‘perfect storm’ driving asset finance… These factors, alongside brokers’ strong position as a trusted adviser for Australians, are all converging to create a great opportunity for brokers to expand their revenue stream,” Mr Starrenburg said.
Mortgage Business
NSW government unveils regional housing taskforce, releases budget By Malavika Santhebennur 23 June 2021
The NSW government has announced that it is setting up a regional housing taskforce to address housing supply shortages, and has released the 2021-22 budget.
The Minister for Planning and Public Spaces Rob Stokes made the announcement at an Urban Development Industry Association (UDIA) luncheon, and said that the government’s current focus is on creating new “greenfield” housing supply.
Mr Stokes said the taskforce would report back by September 2021 on how the NSW government could better utilise the planning system and other levers to increase supply.