Mortgage Business
Lowe stays firm on cash rate outlook By Sarah Simpkins 07 July 2021
The Reserve Bank governor has insisted that Australia is unlikely to reach the prerequisites for raising the cash rate sooner than 2024, despite clashing industry speculation.
The statement collided with estimates from CBA and ANZ, among other banks, that the RBA could change rates as soon as 2023 or even 2022.
But in an address discussing the central bank’s monetary decision, RBA governor Philip Lowe referred back to its targets for raising the rate, commenting it was “unlikely”.
The RBA is aiming for inflation to hit 2-3 per cent, compared with 2020’s 0.87 per cent, and for the yield target to be achieved, which would see the April 2024 bond hit 10 bps.
Mortgage Business 07 July 2021
Westpac has sold its New Zealand life insurance business for $373 million, after offloading its local general insurer for $725 million.
The big four bank has sold Westpac Life-NZ-Ltd to Fidelity Life Assurance Company, New Zealand’s largest locally owned life insurer.
The two companies have also signed an exclusive 15-year agreement for the distribution of life products to Westpac’s local customers.
The sale price of around $373 million is expected to result in a post-tax gain on sale and add around 7 bps to Westpac’s common equity tier 1 capital ratio.
The transaction will also include ongoing payments from the distribution agreement to Westpac New Zealand.
Majority of brokers believe rate is top attraction
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Most brokers said that clients seek their advice about optimal home loan interest rates, which could mount pressure on brokers to demonstrate their value if rates rise, according to HashChing.
A survey by mortgage broking platform HashChing has found that almost 60.0 per cent of brokers still see the interest rate they can provide to customers as the number one reason clients seek their advice.
Other reasons for clients seeing a broker include customer service and customer loans (11.0 per cent), and loan flexibility (3.9 per cent).
Furthermore, the survey of brokers in the HashChing network during June found that over half (55.0 per cent) of respondents felt that an interest rate rise was likely this year.
SFG appoints Qld BDM
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The privately owned aggregator has appointed a former credit analyst to its newly created Queensland BDM role.
Specialist Finance Group (SFG) has appointed former credit analyst Amy Thorburn to the newly-created business development manager role (BDM) in Queensland.
Speaking with The Adviser, Ms Thorburn said that in her new role, she will look after existing Queensland members and growing the state s member base. In addition, she will be facilitating learning professional development days, online lender sessions, and organising social events for members to participate in.
Ms Thorburn – who commenced her new role yesterday (5 July 2021) – has worked with finance brokers in the third-party space for over 20 years, and began her career in Melbourne at Aussie Home Loans.