Lender interest – John Hesch http://johnhesch.com/ Wed, 22 Jun 2022 12:54:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://johnhesch.com/wp-content/uploads/2021/07/icon-150x150.png Lender interest – John Hesch http://johnhesch.com/ 32 32 Netherlands: Lower house prices more likely as interest rates rise | Article https://johnhesch.com/netherlands-lower-house-prices-more-likely-as-interest-rates-rise-article/ Wed, 22 Jun 2022 12:54:19 +0000 https://johnhesch.com/netherlands-lower-house-prices-more-likely-as-interest-rates-rise-article/ A further rise in interest rates increases the chances of a fall in house prices A faster-than-expected rise in mortgage interest rates makes a decline in house prices more realistic, as the negative effects of higher interest rates on the affordability and borrowing capacity of people wishing to buy a home are expected to increase. […]]]>

A further rise in interest rates increases the chances of a fall in house prices

A faster-than-expected rise in mortgage interest rates makes a decline in house prices more realistic, as the negative effects of higher interest rates on the affordability and borrowing capacity of people wishing to buy a home are expected to increase.

The two examples below illustrate the effect of an additional one percentage point increase in mortgage interest rates on monthly mortgage spending and borrowing capacity.

1. Higher mortgage costs due to 1% interest rate hike

Assuming a mortgage of €429,000 (the average price of a home in April), raising interest rates by one percentage point would increase net monthly outlays by around €115*. Mortgage costs remain the same with a mortgage of €395,000. This is about 7.5% less than the current average house price. In addition to the direct effect of higher interest rates on total monthly expenses, there is another negative effect on homeowners. As interest charges increase, the amount they pay each month on their mortgage actually decreases in the early years of the term. With higher interest rates, homeowners accumulate home equity or other wealth more slowly. At the current interest rate and with a mortgage annuity of €429,000, the monthly repayment in the first year is approximately €705. At a one percentage point higher interest rate, this amount decreases by about $105 per month to $600.

2. A lower maximum borrowing capacity as well

Higher interest rates also reduce the maximum borrowing capacity of households. To take out a mortgage annuity of €429,000, a single person would need a gross annual income of around €84,000 at the start of this year, based on NIBUD* lending standards. A further increase in mortgage interest rates by one percentage point would mean that the same single employee could borrow around €20,000 less. Without equity, this translates directly into a drop in the price at which this person who aims to buy a house can bid.

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ECB interest rate hike in July ‘will have no impact on lending to Malta’ https://johnhesch.com/ecb-interest-rate-hike-in-july-will-have-no-impact-on-lending-to-malta/ Mon, 20 Jun 2022 08:42:00 +0000 https://johnhesch.com/ecb-interest-rate-hike-in-july-will-have-no-impact-on-lending-to-malta/ Local borrowers will not face immediate changes to their home and personal loans after the European Central Bank announced plans to raise interest rates, a senior banker has said. However, that could change later in the year as inflation and other pressures affect banks across Europe. The ECB has announced its intention to raise interest […]]]>

Local borrowers will not face immediate changes to their home and personal loans after the European Central Bank announced plans to raise interest rates, a senior banker has said.

However, that could change later in the year as inflation and other pressures affect banks across Europe.

The ECB has announced its intention to raise interest rates next month.

It will be the first time he has done so in more than 11 years and comes as he tries to control soaring inflation in the euro zone.

High inflation is a major challenge for all of us– Christine Lagarde, Director of the ECB

Announcing the move, the ECB said it would raise key interest rates by 0.25% in July, with further increases expected later in the year.

The move means many people across Europe can expect to face higher interest rates on their home loans and other personal loans.

In Malta, however, lenders are not planning an immediate hike in repayment rates for local customers.

According to industry insiders, this is because Maltese banks have very little exposure to ECB loans and are, instead, almost entirely funded by customer deposits.

No changes expected to interest rates at this time

Marvin Farrugia, head of asset-liability management at APS Bank, said local borrowers should not be alarmed by the ECB’s announcement, saying they will not be affected.

This stance was echoed by a senior source at another of the island’s biggest banks, who said no changes were expected immediately or in the foreseeable future to the interest rates charged to customers. .

That said, the future could bring new developments with further hikes expected at the ECB as early as September.

The only customers likely to be affected immediately are large local companies that have taken out loans so large that they are pegged to a range of international interest rates.

These loans are known as Euribor, short for Euro Interbank Offered Rate, and generally refer to the price at which European banks lend money to each other.

Some of the largest loans taken out by corporate clients in Malta rely on this system.

The latest estimate for Eurozone inflation stands at 8.1%, which is well above the ECB’s threshold.

“Not a stage but a journey”

“High inflation is a major challenge for all of us. The [ECB] the Governing Council will ensure that inflation returns to its medium-term target of 2%,” the ECB said in a statement.

“It’s not just a stopover, it’s a journey,” ECB President Christine Lagarde said of the decision.

The ECB’s decision comes at a delicate time for the economy.

The war in Ukraine has both pushed up prices and added to supply chain disruptions, further straining households and businesses.

The Russian invasion comes as economies hoped to begin a post-pandemic recovery.

In response to the invasion, the European Union has sought to reduce its dependence on Russian energy imports and is considering an embargo on Russian oil that would add to economic stress.

Thus, as with the state of the economy, the future of the banking sector remains uncertain.

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Chris Richards attracts interest from PL and La Liga https://johnhesch.com/chris-richards-attracts-interest-from-pl-and-la-liga/ Sat, 18 Jun 2022 17:40:14 +0000 https://johnhesch.com/chris-richards-attracts-interest-from-pl-and-la-liga/ Money raised from departures is crucial for Bayern Munich this summer as they seek to refresh their squad. The German champions don’t have a huge budget like Premier League clubs and Paris Saint-Germain, so they need to be creative in the transfer market. Die Roten are also looking to raise funds by listening to offers […]]]>

Money raised from departures is crucial for Bayern Munich this summer as they seek to refresh their squad. The German champions don’t have a huge budget like Premier League clubs and Paris Saint-Germain, so they need to be creative in the transfer market. Die Roten are also looking to raise funds by listening to offers for fringe players.

Chris Richards is one of the Bayern players set to leave this summer. The United States international enjoyed a promising loan spell at Hoffenheim. His good loan has made various clubs interested in him this summer.

According to CBS, there is strong interest in Chris Richards from the Premier League and La Liga. Crystal Palace and Southampton want to sign the young defender, while Valencia are one of three Spanish clubs who have also joined the race for him. It remains to be seen what the player’s preference is as Die Roten consider inserting a buyout clause into a potential deal for him. CBS also confirms that a few clubs in Germany and France are also tracking the young defender.

Richards featured mainly at the heart of the Hoffenheim defense last season. He managed to make 19 Bundesliga appearances for Hoffenheim. His season was cut short in mid-April due to a hamstring injury. As it stands, Richards will report for pre-season at Sabner Strasse unless a transfer is sorted in the coming days. (Stats courtesy of Whoscored)

A departure from Bavaria will be the right choice for Chris Richards. He has developed well over the last 18 months, thanks to his consistent playing time at Hoffenheim. The United States international should aim for similar playing time to improve his game.

Chris Richards will struggle to get enough first-team minutes at Bayern next season. There are four centre-backs ahead of him in the pecking order which means he will play in odd-numbered DFB Pokal games. In such a scenario, the search for a permanent transfer should be on the agenda this summer for the 22-year-old defender.

A move to the Premier League will be great for Richards, provided Southampton and Crystal Palace can guarantee consistent playing time. Both clubs have been good at developing young players. Valencia have been a chaotic club in recent years, so a move to Mestalla won’t be the ideal environment for him to develop.

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In an ideal scenario, Bayern and Chris Richards would like a transfer sorted before the start of the pre-season tour. Richards will have plenty of time to prepare for the season with his new club. Die Roten should look to include a workable buyout clause as Richards is likely to become a very good centre-back. The coming weeks are likely to be decisive for the future of Richards, who is certainly looking away from Bavaria.

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The winners and losers of the Fed’s interest rate hike: NPR https://johnhesch.com/the-winners-and-losers-of-the-feds-interest-rate-hike-npr/ Thu, 16 Jun 2022 09:01:20 +0000 https://johnhesch.com/the-winners-and-losers-of-the-feds-interest-rate-hike-npr/ With inflation still very high, the Federal Reserve announced on Wednesday that it would raise interest rates by 0.75%, the biggest increase since the 1990s. Spencer Platt/Getty Images hide caption toggle caption Spencer Platt/Getty Images With inflation still very high, the Federal Reserve announced on Wednesday that it would raise interest rates by 0.75%, the […]]]>

With inflation still very high, the Federal Reserve announced on Wednesday that it would raise interest rates by 0.75%, the biggest increase since the 1990s.

Spencer Platt/Getty Images


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Spencer Platt/Getty Images


With inflation still very high, the Federal Reserve announced on Wednesday that it would raise interest rates by 0.75%, the biggest increase since the 1990s.

Spencer Platt/Getty Images

The Federal Reserve raised its benchmark interest rate by 0.75%.

But what does that really mean for hundreds of millions of Americans – Americans who have jobs, who buy things, who have bank accounts?

In short, interest rates are the Federal Reserve’s primary tool for fighting inflation. Inflation is driven by strong consumer demand. By raising interest rates, which makes things more expensive, the Fed hopes to dampen Americans’ willingness to spend money.

“It’s critical that we get inflation down if we’re going to have a sustained period of good labor market conditions that benefits everyone,” Federal Reserve Chairman Jerome Powell said at a conference in press after Wednesday’s meeting.

And the Fed will continue to raise rates as needed throughout the year if inflation doesn’t come down, Powell said. Its next meeting will take place at the end of July.

“The Federal Reserve got inflation wrong. And now they’re trying to correct their mistake by raising interest rates pretty quickly. And that will slow the economy down,” said Brookings senior researcher Aaron Klein. Institution, in an interview with NPR. .

Generally speaking, when the Federal Reserve raises its benchmark interest rate, everything else in the economy that involves interest rates is affected – and that’s most things: credit cards, loans students, home and auto loans, banking, savings accounts, day-to-day business operations, you name it.

That means the stakes are high when the Fed raises rates, as it did on Wednesday.

“With inflation as high as it is and seeing some weakness in the US economy, the Fed really has a very delicate balancing act this month and for the next two months,” said strategist Dave Sekera. in chief of the American market at Morningstar.

Losers: people trying to buy a house right now

The Fed’s interest rate is not directly tied to mortgage rates. But mortgage lenders raise and lower rates partly based on what they expect from the Fed.

With inflation so bad right now, mortgage rates have been rising all spring.

Today, the 30-year average rate is well over 6%, according to Mortgage News Daily. Earlier this year, a 30-year fixed rate mortgage could be had for around 3.25%.

Given a $400,000 loan, rising interest rates turned a monthly mortgage payment of about $1,700 into one approaching $2,500 in just a few months.

“Housing is becoming less affordable for everyone across the board,” said Daryl Fairweather, chief economist at Redfin.

This rapid increase in costs has already shut some potential buyers out of the market. Mortgage applications for buying a home in June are down more than 15% from a year ago, according to the Mortgage Bankers Association.

(Mortgage rates have always been higher, especially in the 1980s when rates topped 15% as part of the Fed’s efforts to fight 1970s inflation. But house prices are now higher. higher than ever, having increased dramatically in many areas over the past two years. .)

Economists have mixed views on what all of this means for the housing market. Some say house prices will remain stable; others predict lower prices.

At today’s Fed meeting, Powell suggested that potential buyers wait to see if prices stabilize.

“I would say, if you’re a home buyer, a young person looking to buy a home: you need a bit of a reset. We need to get back to a place where supply and demand are together again. and where inflation is down again and mortgage rates are down again,” he said.

Winners: people who have money in savings accounts

This one is modest, but remarkable. With interest rates so low over the past few years, banks had little reason or leeway to offer meaningful interest rates on personal savings accounts, where you could keep money. money for your emergency fund or a down payment.

Since the start of the pandemic and the Fed’s interest rate cut, the average interest rate for a typical savings account has hovered around 0.06%, according to the FDIC.

Now, with the Fed’s benchmark rate rising, interest rates are also rising. Some banks, especially online banks, are starting to offer interest rates on savings accounts of 1% or more.

It is important to know that the Fed rate is not the only factor banks consider when setting interest rates. Banks also take into account the amount of cash deposited by customers and the amount offered by competitors. So don’t expect to see rates increase by 0.75%.

And, of course, these interest rates remain below current inflation rates, which means that the real value of these savings will continue to decline over time.

But for people who need access to savings without risking a stock market crash — like emergency funds or a down payment for a new house or car — 1% is better than nothing.

Other savings vehicles that offer a combination of affordability and growth rates, such as CDs and I Bonds, also offer higher returns than in previous years.

Federal Reserve Chairman Jerome Powell during his Wednesday press conference.

Olivier Douliery/AFP via Getty Images


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Olivier Douliery/AFP via Getty Images


Federal Reserve Chairman Jerome Powell during his Wednesday press conference.

Olivier Douliery/AFP via Getty Images

Losers, most likely: all of us, in the short term

At the heart of Wednesday’s interest rate hike is a tightrope walk: the Fed is trying to slow inflation without triggering a recession and the layoffs that would come with it.

But even with the Fed’s thumb on the scales, some of the drivers of inflation are beyond the control of officials. The war in Ukraine, for example, has helped drive up oil and commodity prices, along with the continued supply chain disruptions caused by the pandemic.

As a result, inflation remained high. And that makes walking the Fed tightrope more difficult.

“I think what’s becoming clearer is that a lot of factors that we don’t control are going to play a very big role in deciding whether it’s possible or not,” Powell said on Wednesday. “It’s not going to be easy.”

Economists have grown increasingly pessimistic about the Fed’s ability to pull off the so-called “soft landing.”

In a note to clients today, Wells Fargo economists wrote: “Indications that inflation is taking root in the U.S. economy have caused the Federal Reserve to become even more hawkish. We now judge the recession in next year is more likely than not.”

And a survey of economists published this week by the Financial Times and the University of Chicago found that most expect a recession to start next year.

That means the United States could see widespread layoffs — even though inflation is still high and Americans pay higher prices for things like food and gasoline. “We’re not looking to have higher unemployment, but I would definitely consider that a positive outcome,” Powell said today.

Winners, hopefully: all of us, in the long run

The Fed’s goal with interest rate hikes, now and in the future, is to bring the inflation rate down to 2%, while keeping unemployment around 4%. If they succeed, it means they have succeeded in their soft landing objective. (Or a “soft landing,” as Powell put it in May.)

“I think it’s possible,” Powell said Wednesday, pointing to the current strength of the economy and the labor market.

While economists are starting to get pessimistic about the chances of avoiding a recession, it’s still possible. Americans just have to be patient while things unfold, they say.

“Monetary policy takes a long time to act. There’s a long lag between when the Fed moves this week, when it moved before, and when it trickles down to the economy,” Klein of the Brookings Institution said. “It can take up to a year before the full effect of a Federal Reserve interest rate hike is felt in the real economy.”

But if the Fed holds the landing, inflation could return to normal – alongside a healthy labor market with wages and consumer demand in balance.

Additional reporting by NPR’s Chris Arnold and NPR’s David Gura.

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Redfin and Compass lay off over 900 employees as mortgage interest rates continue to climb – TechCrunch https://johnhesch.com/redfin-and-compass-lay-off-over-900-employees-as-mortgage-interest-rates-continue-to-climb-techcrunch/ Tue, 14 Jun 2022 17:37:38 +0000 https://johnhesch.com/redfin-and-compass-lay-off-over-900-employees-as-mortgage-interest-rates-continue-to-climb-techcrunch/ Redfin’s CEO said: “I said we wouldn’t fire unless we had to. We must.’ The housing market took a huge hit this year as mortgage interest rates jumped and homeowners cut back on purchases. The latest casualties in the proptech world are Redfin and Compass, who both today announced layoffs totaling around 920 people. In […]]]>

Redfin’s CEO said: “I said we wouldn’t fire unless we had to. We must.’

The housing market took a huge hit this year as mortgage interest rates jumped and homeowners cut back on purchases.

The latest casualties in the proptech world are Redfin and Compass, who both today announced layoffs totaling around 920 people.

In an email, a Redfin spokesperson told TechCrunch that the company was laying off about 470 employees today, after May, demand was 17% lower than expected.

Meanwhile, a Compass spokesperson confirmed to TechCrunch that the company is cutting about 10% of its workforce, or about 450 people. He said: “Due to the clear signals of slowing economic growth, we have taken a number of steps to protect our business and reduce costs, including the difficult decision to reduce the size of our team of employees. ‘around 10%.”

Both Redfin and Compass are on a mission to help people find and buy homes.

Mortgage interest rate jumped nearly 6% this week, significantly higher than the sub-3% rates seen in 2021. Needless to say, the idea of ​​buying a home is much less appealing than it has been in recent years. Combine that with overheated markets where prices have risen dramatically and many potential buyers are putting their plans on hold.

In a blog postRedfin’s Glenn Kelman said his company would hold a brief town hall meeting to discuss the move and that managers would call affected employees directly.

He wrote:To all the people who are leaving and have trusted Redfin, I’m sorry that we couldn’t deliver on our commitment to you. With May demand 17% lower than expected, we don’t have enough work for our agents and support staff, and fewer sales leave us with less money for head office projects. »

Kelman went on to say that the company offers terminated colleagues ten weeks of base pay, with an additional week of pay for each 12 months of service beyond one year, capped at 15 weeks of pay. Redfin said it was also paying the bill for three months of medical coverage for affected employees.

“That should give you until the end of the summer to find work,” he added. “…I said we wouldn’t fire unless we had to. We must.”

The executive then acknowledged the irony of going ahead with a layoff despite raising hundreds of millions of dollars.

But mortgage rates have risen faster than at any time in history. We could be facing years, not months, of fewer home sales, and Redfin still expects to thrive,” he wrote. “If going from $97 per share to $8 isn’t straining a business, I don’t know what is… We owe it to everyone who has invested your time or money in this business to become profitable, and then very profitable.

Compass shares were trading at $4.42 per share as of noon, down from a 52-week high of $17.70. Redfin shares fell to $8.16 from a 52-week high of $65.41. Its market capitalization is $874 million, while Compass is currently valued at $1.885 billion.

My weekly fintech newsletter, The Interchange, launched on May 1! Register here to receive it in your inbox.

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Live updates on finances and payments in the United States: child tax credit, inflation, interest rates, CPI report, SS disability… https://johnhesch.com/live-updates-on-finances-and-payments-in-the-united-states-child-tax-credit-inflation-interest-rates-cpi-report-ss-disability/ Mon, 13 Jun 2022 02:38:18 +0000 https://johnhesch.com/live-updates-on-finances-and-payments-in-the-united-states-child-tax-credit-inflation-interest-rates-cpi-report-ss-disability/ A Fed soft landing for jobs means something else has to crack; so far this is not the case The healthy finances of US banks, businesses and households, heralded during the pandemic by Federal Reserve officials as a source of resilience, may pose an obstacle to fighting inflation as central bankers raise interest rates in […]]]>

A Fed soft landing for jobs means something else has to crack; so far this is not the case

The healthy finances of US banks, businesses and households, heralded during the pandemic by Federal Reserve officials as a source of resilience, may pose an obstacle to fighting inflation as central bankers raise interest rates in an economy so far able to pay the price.

In describing their aggressive shift to tighter monetary policy, Fed officials say they hope to suppress the economy without destroying jobs, with rising interest rates slowing things down enough for companies to reduce the current high number of job vacancies while avoiding layoffs or a drop in income Household.

But that means the pain of controlling inflation should fall primarily on owners of capital via a slowing housing market, higher corporate bond rates, weaker securities and a rising dollar to make cheaper imports and encourage domestic producers to keep prices low.

Economists, including current and former Fed officials, note that unlike previous cycles of Fed rate hikes, there is no obvious weakness to exploit or asset bubble to burst to make quick work of. lower inflation – nothing like the heavily overvalued real estate markets of 2007 or the overvalued Internet stocks of the late 1990s to give the Fed more impact on its expected rate hikes.

The adjustment to Fed policy tightening has been rapid by some measures. But it spread moderately across a range of markets, none catastrophically, with little impact yet on inflation or consumer spending.

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Capped Student Loan Interest Rates https://johnhesch.com/capped-student-loan-interest-rates/ Fri, 10 Jun 2022 23:22:17 +0000 https://johnhesch.com/capped-student-loan-interest-rates/ The government will cap student loan interest rates for current graduates to protect them against rising inflation. A rise in the RPI rate due to global economic pressures meant student borrowers faced a 12% interest rate in September and the government stepped in and capped interest rates at a maximum of 7.3 % to protect […]]]>

The government will cap student loan interest rates for current graduates to protect them against rising inflation.

A rise in the RPI rate due to global economic pressures meant student borrowers faced a 12% interest rate in September and the government stepped in and capped interest rates at a maximum of 7.3 % to protect graduates.

The government will seize every opportunity to protect the public against the rising cost of living and global economic pressures. Confirmation of interest rates is usually made in August, but the government has taken unprecedented steps to move the decision forward, based on expected rates, to reassure student borrowers about Plan 2 loans (undergraduate ) and plan 3 (third cycle).

This is the biggest reduction in student loan interest rates on record and will mean, for example, that a borrower with a student loan balance of £45,000 will reduce their accrued interest by around £180. per month, against 12% interest rate. It is on the total value of the loan, as the monthly repayments do not change.

Higher and Further Education Minister Michelle Donelan said:

The government has always been clear that where it can help drive up prices we will, and I will always strive to get a fair deal for students, which is why we have reduced the rate interest on student loans from the expected 12%.

I want to reassure that this does not change the monthly repayment amount for borrowers, and we have brought this announcement forward to provide more clarity and peace of mind for graduates at this time.

For those starting higher education in September 2023 and all students considering this next step at the moment, we have reduced future interest rates so that no new graduate will ever have to repay more than what he borrowed in real terms.

Monthly student loan repayments are based on income rather than interest rates or the amount borrowed. Unlike commercial loans, repayments will stop for all borrowers who earn below the relevant repayment threshold.

For future borrowers, student funding will be put on a more sustainable footing. As announced in February, interest rates will be reduced so that from 2023/24 new graduates do not repay, in real terms, more than they borrow. Along with broader higher education reforms, this will help ensure that students from all backgrounds can continue to receive the highest quality education from our world-leading higher education sector.

This comes with a package of support measures worth £37billion to help those facing rising costs of living, including £400 for all households on their energy bills , targeted support to vulnerable households for costs including food and energy, and changes to Universal Credit, National Living Wage and National Insurance thresholds, so people keep more of what that they win.

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Fixes finalized for controversial credit rule changes https://johnhesch.com/fixes-finalized-for-controversial-credit-rule-changes/ Wed, 08 Jun 2022 22:31:00 +0000 https://johnhesch.com/fixes-finalized-for-controversial-credit-rule-changes/ Changes to last year’s distressed credit rules will take effect July 7 Changes have been finalized to fix controversial new credit rules which were put in place at the end of last year. The changes come into effect on July 7. The new rules, which essentially targeted the less scrupulous part of the lending market, […]]]>

Changes to last year’s distressed credit rules will take effect July 7

Changes have been finalized to fix controversial new credit rules which were put in place at the end of last year. The changes come into effect on July 7.

The new rules, which essentially targeted the less scrupulous part of the lending market, also applied to major banks. And essentially, the rules required banks to collect far more details from those applying for loans than before. The banks and their managers risked being punished if they did not collect this detail.

Anecdotally, the changes led to a freeze on lending over the New Year period as banks tried to adjust to the new prescriptive rules.

Minister for Trade and Consumer Affairs, David Clark announced in March that fixes would be put in place for amendments to the Credit Agreements and Consumer Credit Act (CCCFA) which came into force on December 1.

The changes would affect the CCCFA Rules and the Responsible Lending Code.

A statement from the Department for Business, Innovation and Employment (MBIE) said that these initial changes “have been made to quickly resolve some issues that have been heard since the changes to the CCCFA came into effect, such as useless investigations”.

In April, MBIE published an Exposure Draft of amendments to the Regulations and Responsible Lending Code for comment and now, after reviewing submissions on the Exposure Draft, the Regulations and Responsible Lending Code have been updated to reflect comments received.

The amendments are now finalized and will come into force on July 7, 2022.

These are the changes:

  • Remove regular “savings” and “investments” as examples of expenses lenders should ask about when assessing the borrower’s likely expenses.
  • Clarify that when borrowers provide a detailed breakdown of their future living expenses, and these are compared to sound statistical data, there is no need to also inquire about their current living expenses from transactions recent banking.
  • Clarify that when lenders estimate expenses based on recent bank statements, they can ask the borrower how the expenses are likely to change once the contract is finalized.
  • Clarify that the requirement to obtain “sufficiently detailed” information only relates to information provided directly by borrowers (for example, ensuring that expenditure categories on application forms are sufficiently detailed) rather than information from borrowers. bank transaction records.
  • Provide additional guidance that a “reasonable excess” is not required if the lender has applied adequate buffers and adjustments to income and expenses.
  • Provide alternative advice and examples where it is “obvious” that a loan is affordable, so a full assessment of income and expenses is not required.

Prior to the March announcement, Clark had asked the MBIE to take a closer look at changes to the CCCFA and regulations late last year, working with other members of the Council of Financial Regulators (CoFR ).

MBIE said that while the initial changes were progressing, “the rest of the investigation was continuing in parallel.”

“The Minister for Trade and Consumer Affairs has received a final report and advice from officials and is considering possible further action. We expect the final report to be released in July.”

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ABC offers free internet to home loan customers as interest rates soar https://johnhesch.com/abc-offers-free-internet-to-home-loan-customers-as-interest-rates-soar/ Tue, 07 Jun 2022 09:32:16 +0000 https://johnhesch.com/abc-offers-free-internet-to-home-loan-customers-as-interest-rates-soar/ One of Australia’s major banks has made an unexpected offer to some customers as interest rates are expected to soar. Banking giant CBA will offer some customers free internet access for three years in a bid to ease cost-of-living pressures. In partnership with telecommunications provider More, the lender is offering customers who qualify for conditionally […]]]>

One of Australia’s major banks has made an unexpected offer to some customers as interest rates are expected to soar.

Banking giant CBA will offer some customers free internet access for three years in a bid to ease cost-of-living pressures.

In partnership with telecommunications provider More, the lender is offering customers who qualify for conditionally pre-approved home loans access to a free NBN plan for three years.

The 36-month NBN plan could save eligible homeowners more than $2,700, and comes as experts are sounding the alarm over impending interest rate hikes in the coming months.

CBA is also offering all existing customers 30% off More NBN plans for the first 12 months when they sign up using their credit or debit card as their bill payment method.

Dr Michael Baumann, executive managing director of the homebuyer, said the offer was designed to help Australians do the picky.

“We know the rising cost of living is being felt by all Australians, especially those looking to buy property in the current environment,” he said.

“We want to support pre-approved home loan customers where we can, and that includes longer-term savings on essential, ongoing bills and commitments like the internet.”

It comes as recent CBA research found most landlords were bracing for future rate hikes, with a third looking to cut costs by looking to cheaper utility providers.

“What the research tells us is that Australians want value from their lender and in a way that suits their needs,” Dr Baumann said.

“We also hear from our customers that they want to save money, get a great deal, and grow their dollar, especially on daily and ongoing engagements.”

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Andrew Branson, co-founder of More, said the deal would help those trying to stretch their household budgets further.

“Getting free internet access for three years and having an extra $2,700 in your back pocket is an incredible deal for property owners and investors because you don’t need to connect the NBN to the address where the loan is settled,” he said.

“This type of customer benefit has never been seen before and hats off to CBA for trying something new that will make a significant difference for their customers who are facing increasing cost of living pressures.”

The offer comes as Australians prepare for the Reserve Bank to hike the official exchange rate again when the board meets for its June meeting tomorrow.

The cash rate is widely expected to rise by 25 or 40 basis points, which would push the country’s official cash rate from 0.35% to 0.60 or 0.75.

But that’s just the tip of the iceberg, with some pundits bracing for interest rates to rise to 2.5% by the end of 2022.

In fact, Nomura Australia Senior Economist and Rates Strategist Andrew Ticehurst recently said The Daily Telegraph they believe rates will go up every month until December, which means we could have a rate hike every month until Christmas.

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Rangers’ interest in Jack Butland set to decide McGregor’s future https://johnhesch.com/rangers-interest-in-jack-butland-set-to-decide-mcgregors-future/ Sun, 05 Jun 2022 17:30:22 +0000 https://johnhesch.com/rangers-interest-in-jack-butland-set-to-decide-mcgregors-future/ Alan Nixon has suggested on his Patreon page that Rangers are interested in a loan-to-buy option for Jack Butland this summer and if a deal is reached, Allan McGregor’s contract decision is simple. It has been reported [The Athletic, 3 June]that a deal is on the table for the 40-year-old keeper. The former Scotland number […]]]>

Alan Nixon has suggested on his Patreon page that Rangers are interested in a loan-to-buy option for Jack Butland this summer and if a deal is reached, Allan McGregor’s contract decision is simple.

It has been reported [The Athletic, 3 June]that a deal is on the table for the 40-year-old keeper.

The former Scotland number one is yet to make a decision on his future, but if Gers make a move for 29-year-old Butland, McGregor should definitely consider stopping him.

McGregor enjoyed a memorable season at Ibrox and was integral to their journey to the Europa League final, making crucial saves for Giovanni van Bronckhorst’s side.

However, McGregor must realize it’s time to hang up his gloves as the Ibrox faithful still remember him fondly.

He has to wonder if he can recreate what he did this season for Rangers.

Even though Rangers were superb in qualifying for the Europa League final, it’s highly unlikely they could replicate that feat again in the 2022-23 campaign.

Moreover, the news of Butland’s potential transfer should tell the 41-year-old there’s a good chance he won’t be Gers’ number one next season.

He has to wonder if another season playing the occasional cup game and sitting on the bench is the way he wants to end his career.

McGregor must also put the club’s needs ahead of his own at the moment.

Realistically, Rangers need to sign a younger goalkeeper who will give them a long-term option.

If McGregor decided to stay, it will prolong their search for another goaltender for at least another season.

In other Rangers news, Alan Nixon provides an update on Joe Aribo’s potential transfer from Rangers to Crystal Palace.

Rangers interest in Josh Tymon could have given clue to future move for Calvin Bassey

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