A1 Financial Services and Advice Pty Ltd

09/05/2022

The cost of living and goods have good up in recent months and we have seen a lot of clients calling us up to see where they can save.

Although fuel is a big talking point right now, most people don’t realize that their home loan is their greatest expense and where the biggest savings can come from.

If you would like to know how much money we can save you per month on your current loan repayments, please us for an obligation-free chat.

19/12/2018

Today, The Australian Prudential Regulation Authority (APRA) has announced that it would lift the banks' interest-only lending restrictions. The Restriction was first set in March 2017, forcing lenders to limit new interest-only lending to 30 percent of home loans that they issue. This caused 99% of lenders to set tighter restrictions on interest only lending and charged a higher rate for their interest only loan product. With this new changes, we hope the bank will relax their scrutiny on interest only loans and pass on the savings but bringing the interest only loan rate back to parity with principle and interest only loan. If your lender(s) is still charging you a higher rate for interest only loans, now is the time to shop around.

15/10/2018

Looking at buying a property? Would you like to insight into the property market or a particular property? Send us a PM and we will send you the the report.

10/09/2018

Last week news came as a big surprise to most home owners as 3 out of the big four banks increased their standard variable rates with NAB being the last one left.We expect NAB to follow suit.

What to know how you Home/Investment loan stack up with the rest?
Send us a PM.

27/08/2018

Not sure on how often you should review your home/investment loan(s)? Please refer to below as a guide.

28/06/2018

Thank you to everyone for all your support.

It's with great pleasure and excitement that we can let you know that we have relocated to a more spacious and comfortable office location.

However, our contact details remain the same.

Our new office will now be at 36 Old Perth Road, Bassendean WA 6054 as of 2nd July 2018.

12/06/2018

As some of you may know, the mortgage broking industry has been on the receiving end of some unfair criticism this year.

The fact is that the rhetoric surrounding the broker channel is not consistent with the available data.

It is widely known that the broker channel is now systemically important to the Australian economy, and as such, increased scrutiny is entirely appropriate. Indeed, I welcome anyone who wishes to scrutinise my industry, because the relevant data portrays an industry that helps customers and drives competition to the benefit of all consumers.

This is reflected in consumer behaviour. Customers continue to vote with their feet, with more than 50 percent of residential lending now originated by brokers.

However, I have recently seen criticism from some with entrenched interests and others with poorly informed perspectives on the industry, portraying the broker channel as systemically rotten, and riven with conflicts and poor behaviour. I believe I must respond to this.

So, I decided to examine real data for answers. The numbers don’t lie.

If the criticism was accurate, and the mortgage broking industry really was broken, then complaints and arrears rates would be high, competition and consumer support would be shrinking and prices would inevitably begin to rise.

Is that the case? Absolutely not.

The Mortgage & Finance Association of Australia (MFAA) has conducted analysis during 2018, examining complaints, arrears, penalties and the broker channel’s impact on competition. I must say, even I was pleasantly surprised by the results.

They began by reviewing complaints to the Mortgage & Finance Association of Australia (MFAA), the Credit and Investment Ombudsman (CIO) and the Financial Ombudsman Service (FOS).

While broker-originated loans written annually have doubled since 2008, complaints to the MFAA have plummeted by 78 per cent.

In addition, while mortgage broker membership of the CIO service has tripled since 2008 - to 91 per cent of CIO membership - complaints about brokers represent just 6.1 per cent of all complaints to the CIO.

Mortgage brokers also account for just 1 per cent of complaints to FOS.

When I reviewed penalties data, I found that ASIC has made just 15 convictions of brokers between 2010 and 2017, which represents one in 9,000 brokers per annum.

When reviewing arrears, ASIC data showed there is no significant difference between the broker channel and the proprietary channel, and ASIC also noted in its Review of Mortgage Broker Remuneration that there is no significant relationship between the level of broker commissions and the level of loan arrears.

This data forms a compelling story, and a formidable accolade for the industry. However, when I talk to stakeholders about this data, I am sometimes met with some scepticism. Why would the industry be receiving this criticism, if there are no systemic issues?

The answer lies in the data on competition.

The rise of the broker channel has significantly moderated the dominance of the major lenders over time, significantly reducing their market share. In the last four years alone, the share of broker channel mortgage business concluded directly with the four major lenders declined from 58.5 per cent to 50.7 per cent, and the percentage of loans originated by brokers for lenders not affiliated with the four major lenders has grown from 21.5 per cent to 28 per cent.

At the same time, as broker numbers and the broker channel’s market share have both increased - driving increased competition - the Net Interest Margin of the major lenders has decreased commensurately.

These recent criticisms are a clear reflection of the pressure being felt by the entire financial services sector to drive revenue and margins – and to respond to the Royal Commission. It is tough for the sector, but that same pressure and increased competition is great for consumers.

While certain lenders have supported changes that would rationalise the broker channel and drive increased traffic into their branch network, this would have an immediate negative impact on consumer outcomes.

So, while we as Brokers remain focused on self-regulation and implementing a strong package of reforms in response to the ASIC Remuneration Review, I also understand the need to continue to staunchly defend and promote the industry.

I have attached a two page fact sheet of the data finding

03/08/2017

Like to know if you qualify for a 3.63% variable rate home loan? Contact us now to see if you qualify.

20/07/2017

Would you like to know if you qualify for a 3.67% variable home loan or 3.84% variable investment loan? Please send us a message for more info.

20/12/2016

Over the past 2 weeks, we have seen numerous number of lenders increasing their Variable and Fixed interest rate, blaming increasing funding cost for the rise.

Although we see this as big hit to the consumer household budget, especially during this festive spending period. It is not all doom and gloom as there are still lenders out there offering low, competitive interest rate for owner occupied and investment loans.

So if you are looking at reducing your expense or just want a better rate. Please feel free to contact us for an obligation free meeting.

14/09/2016

Thinking of investing in properties and want to know which area is growing in your state? Contact us for a free investors pack.

12/09/2016

A must read for First home buyers and Investors who are looking into buying an apartment right now.

With a record-high number of units currently under construction nationwide, the capital growth performance of units is weaker than houses in certain cities and we anticipate that this trend will continue.