Mortgage Business
CBA announces green loan national rollout By Malavika Santhebennur 28 July 2021
CBA has made its green loans available to all eligible home loan customers nationally, and launched a sustainability hub.
The Commonwealth Bank of Australia (CBA) has announced that its green loan has been made available for up to 600,000 customers across Australia.
It has followed the launch of a green loan pilot program in February this year to enable existing and new customers with an eligible CommBank home loan or investment loan to purchase and install renewable technology.
The loan enables eligible customers to purchase and install up to $20,000 worth of clean energy products by offering a 0.99 per cent per annum secured fixed rate over 10 years with no establishment fee, monthly loan service fee or early repayment fees.
Mortgage Business
Sydney housing sentiment holds up in lockdown By Malavika Santhebennur 28 July 2021
Consumer sentiment around Sydney housing dipped only marginally, hinting at a disconnect between concerns about lockdown and attitudes towards housing, according to Westpac.
The Westpac-Melbourne Institute Index for July 2021 has revealed that the “time to buy a dwelling” index increased from 96.1 in June 2021 to 96.9 in July 2021.
This has reversed recent trends where the index had declined for five consecutive months and had shown significant signs of stress and was in pessimistic territory for the first time since April 2020.
Despite the slight monthly uptick, the index has remained significantly lower (26.5 per cent) from its peak in November, reflecting concerns about the impact of steep house price rises on affordabil
Mortgage Business
APRA’s lending macro policy worked: RBA By Malavika Santhebennur 28 July 2021
The RBA has stated that APRA succeeded in curtailing a drop in home lending standards by implementing macro-prudential policies between 2014 and 2018.
The Reserve Bank of Australia (RBA) has released a research discussion paper in which it declared that macro-prudential policies implemented by the Australian Prudential Regulation Authority (APRA) targeting the housing market twice between 2014 and 2018 achieved their goals and contributed to reducing risk in the financial system.
The paper, titled
Macroprudential Limits on Mortgage Products: The Australian Experience, said the “broad aim of macro-prudential policy is to manage systemic risk in the financial sector”.
Millennials call for more housing regulation
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A survey has revealed that almost three-quarters of Millennials said they believe the housing market needs more regulation to slow property prices.
The Borrower Sentiment Index for the June 2021 quarter released by homeloanexperts.com.au has revealed that 70 per cent of Millennials said they believe the housing market requires more regulation to keep a lid on property prices.
In addition, 40 per cent of Millennials surveyed said they believe that the support should come in the form of first home buyer (FHB) schemes, while 30 per cent said they thought the regulations should target property investors.
Lockdowns threaten business loan demand: Equifax
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Construction and retail trade have fuelled business loan growth in the June quarter but the recovery of these industries is now in question following recent lockdowns, according to Equifax.
Figures for the second quarter of 2021 (Q2 2021) in the latest Equifax Quarterly Business Credit Demand Index (June 2021) have shown double-digit growth in business credit demand with solid gains across all categories of credit.
However, sustaining this pace of recovery into the third quarter is now under question as the ongoing COVID-19 lockdowns have shown signs of dampening credit demand in NSW and Victoria.