AdviserVoiceMortgage Broking Archives - AdviserVoice https://www.adviservoice.com.au/section/investing/mortgage-broking/ Financial planner information & financial planner education/CPD - AdviserVoice Wed, 10 Jun 2026 21:30:37 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 Domain on APRA’s new lending limits: A guardrail, not a handbrake https://www.adviservoice.com.au/2025/11/domain-on-apras-new-lending-limits-a-guardrail-not-a-handbrake/ https://www.adviservoice.com.au/2025/11/domain-on-apras-new-lending-limits-a-guardrail-not-a-handbrake/#respond Thu, 27 Nov 2025 20:05:59 +0000 https://www.adviservoice.com.au/?p=108154

Nicola Powell

Domain has described the Australian Prudential Regulation Authority’s (APRA) announcement of a new 20% limit on high debt-to-income (DTI) mortgage lending as a proactive, measured intervention designed to manage systemic risk, rather than a circuit breaker for property prices.

The new cap, which restricts banks to issuing no more than 20% of new loans at six times a borrower’s income or higher (effective February 1, 2026), is being implemented as the housing market enters a new phase of momentum driven by easing interest rates and rising credit growth.

“This cap is best understood as a guardrail being put in place before lending standards begin to loosen, not as a sudden handbrake on the market. APRA is acting pre-emptively, showing a light but firm touch at exactly the right time in the cycle, where we’re seeing a lift in riskier lending, particularly among investors,”  commented Domain’s Chief of Research and Economics, Dr. Nicola Powell.

“Crucially, the cap is not currently binding for the majority of lenders, meaning it won’t alter borrowing power or restrict credit access for most buyers in the short term, including first-home buyers who often borrow lower than the DTI threshold. It simply creates a mechanism to automatically slow high-risk lending if it accelerates in the future.

“While the limit could start to influence investor behaviour down the track if high-DTI volumes surge, for now, it’s a policy that strengthens the system’s resilience without punishing households or dampening the essential need for new supply.”

]]>

Nicola Powell

Domain has described the Australian Prudential Regulation Authority’s (APRA) announcement of a new 20% limit on high debt-to-income (DTI) mortgage lending as a proactive, measured intervention designed to manage systemic risk, rather than a circuit breaker for property prices.

The new cap, which restricts banks to issuing no more than 20% of new loans at six times a borrower’s income or higher (effective February 1, 2026), is being implemented as the housing market enters a new phase of momentum driven by easing interest rates and rising credit growth.

“This cap is best understood as a guardrail being put in place before lending standards begin to loosen, not as a sudden handbrake on the market. APRA is acting pre-emptively, showing a light but firm touch at exactly the right time in the cycle, where we’re seeing a lift in riskier lending, particularly among investors,”  commented Domain’s Chief of Research and Economics, Dr. Nicola Powell.

“Crucially, the cap is not currently binding for the majority of lenders, meaning it won’t alter borrowing power or restrict credit access for most buyers in the short term, including first-home buyers who often borrow lower than the DTI threshold. It simply creates a mechanism to automatically slow high-risk lending if it accelerates in the future.

“While the limit could start to influence investor behaviour down the track if high-DTI volumes surge, for now, it’s a policy that strengthens the system’s resilience without punishing households or dampening the essential need for new supply.”

The post Domain on APRA’s new lending limits: A guardrail, not a handbrake appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2025/11/domain-on-apras-new-lending-limits-a-guardrail-not-a-handbrake/feed/ 0 Gen Z leads surge in first home buying intentions as optimism grows among young Australian https://www.adviservoice.com.au/2025/11/gen-z-leads-surge-in-first-home-buying-intentions-as-optimism-grows-among-young-australian/ https://www.adviservoice.com.au/2025/11/gen-z-leads-surge-in-first-home-buying-intentions-as-optimism-grows-among-young-australian/#respond Sun, 16 Nov 2025 20:15:22 +0000 https://www.adviservoice.com.au/?p=107770

Matthew Hassan

More than one in three (35%) Gen Z Australians plan to buy their first home within five years, according to Westpac’s latest Home Ownership Report. Intentions have jumped five percentage points since January 2025, signalling a wave of growing confidence despite ongoing affordability challenges.

The renewed optimism among Gen Z is being driven by wanting to feel more financially secure (34%), up three per cent on January figures, and a desire for independence (37%). Just over one third (32%) of Gen Z buyers are motivated by not wanting to rent forever.

“Gen Z are leaning in despite higher hurdles,” said James Hutton, Westpac Managing Director, Mortgages.

“They’re maintaining flexibility in their plans, considering available support, and signalling they won’t stay renters forever. That upswing matters for supply and affordability conversations in Australia over the coming years.”

The drive to buy sooner is driving flexibility, with 80 per cent of all first home buyers open to purchasing in suburbs they hadn’t previously considered, and another 80 per cent actively changing their lifestyles – cutting back on non-essentials like food delivery to boost savings.

Gen Z buyers are also reshaping their property expectations. Interest in buying a house has slipped three percentage points since January, while plans to purchase an apartment have risen by two per cent. More than half of Gen Z buyers (55%) are even considering rent-vesting – a strategy that’s held in popularity since January.

According to the research, deposit hurdles remain for many. While most first home buyers aim for a 17.5 per cent deposit, nearly a third are targeting ten per cent. For Gen Z buyers, 53 per cent are moving ahead with plans for a deposit of 10 per cent or less of the purchase price.

“Demand from younger buyers is picking up, and the expanded government guarantee is likely to fast‑track purchase decisions,” said Westpac Senior Economist Matthew Hassan. “Affordability and supply remain big challenges for buyers. Listings are scarce, forcing many to broaden their search to new areas and property types. Addressing entrenched undersupply is a priority for governments, but material improvement is going to take time.”

]]>

Matthew Hassan

More than one in three (35%) Gen Z Australians plan to buy their first home within five years, according to Westpac’s latest Home Ownership Report. Intentions have jumped five percentage points since January 2025, signalling a wave of growing confidence despite ongoing affordability challenges.

The renewed optimism among Gen Z is being driven by wanting to feel more financially secure (34%), up three per cent on January figures, and a desire for independence (37%). Just over one third (32%) of Gen Z buyers are motivated by not wanting to rent forever.

“Gen Z are leaning in despite higher hurdles,” said James Hutton, Westpac Managing Director, Mortgages.

“They’re maintaining flexibility in their plans, considering available support, and signalling they won’t stay renters forever. That upswing matters for supply and affordability conversations in Australia over the coming years.”

The drive to buy sooner is driving flexibility, with 80 per cent of all first home buyers open to purchasing in suburbs they hadn’t previously considered, and another 80 per cent actively changing their lifestyles – cutting back on non-essentials like food delivery to boost savings.

Gen Z buyers are also reshaping their property expectations. Interest in buying a house has slipped three percentage points since January, while plans to purchase an apartment have risen by two per cent. More than half of Gen Z buyers (55%) are even considering rent-vesting – a strategy that’s held in popularity since January.

According to the research, deposit hurdles remain for many. While most first home buyers aim for a 17.5 per cent deposit, nearly a third are targeting ten per cent. For Gen Z buyers, 53 per cent are moving ahead with plans for a deposit of 10 per cent or less of the purchase price.

“Demand from younger buyers is picking up, and the expanded government guarantee is likely to fast‑track purchase decisions,” said Westpac Senior Economist Matthew Hassan. “Affordability and supply remain big challenges for buyers. Listings are scarce, forcing many to broaden their search to new areas and property types. Addressing entrenched undersupply is a priority for governments, but material improvement is going to take time.”

The post Gen Z leads surge in first home buying intentions as optimism grows among young Australian appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2025/11/gen-z-leads-surge-in-first-home-buying-intentions-as-optimism-grows-among-young-australian/feed/ 0 Mortgage offset accounts may deepen wealth divide, new research reveals  https://www.adviservoice.com.au/2025/10/mortgage-offset-accounts-may-deepen-wealth-divide-new-research-reveals/ https://www.adviservoice.com.au/2025/10/mortgage-offset-accounts-may-deepen-wealth-divide-new-research-reveals/#respond Tue, 07 Oct 2025 20:20:37 +0000 https://www.adviservoice.com.au/?p=106834

Lenders or mortgage brokers could provide more information and better educate households to help make informed decisions about mortgage offset accounts.

Mortgage offset accounts are widely used across Australia, yet their financial benefits disproportionately favour wealthier households, a new study from the University of Sydney has revealed, raising important questions about fee structures, pricing transparency and consumer education in the mortgage market. 

Carried out by Dr James Graham, senior lecturer in the School of Economics, the research published in the Economic Record[1] journal is the first academic analysis of mortgage offset accounts in Australia, despite their popularity among borrowers.  

“Around 40 percent of Australian mortgage holders use mortgage offset accounts, which allow savings held in linked accounts to reduce the interest paid on home loans – for example, a $1 million mortgage with a $100,000 balance held in the offset account would result in interest paid on just $900,000,” Dr Graham said. 

“But until now, little was known about who uses mortgage offset accounts, how they’re used, and who actually benefits.” 

Offset accounts favour wealthier households 

Dr Graham’s study uses a macroeconomic model based on household life–cycle decisions and using Australian data to explore how offset accounts are used across different income levels, mortgage sizes, and property values.  

The findings show that households with higher incomes, larger mortgages, and more expensive homes are significantly more likely to benefit from offset accounts, while many others may be paying fees without gaining meaningful savings. 

“Offset accounts can be a powerful tool for reducing mortgage interest, but they’re not a one-size-fits-all solution,” said Dr Graham. “Many households are potentially signing up for these products without fully understanding how they work, and in some cases they may actually be worse off. This confusion is perhaps not surprising given that some lenders provide offset accounts for free, some charge annual fees, while others charge higher interest on the underlying mortgage.” 

Alternative mortgage pricing could improve equity 

Dr Graham’s modelling suggests that alternative pricing structures could improve equity in the mortgage market, allowing more households to access the advantages of offset accounts without being penalised by high fees. 

“The economic disparities in the data suggest the possibility that alternative mortgage pricing could improve access and more evenly distribute the benefits of mortgage offset account use,” he said.

“Mortgage providers and financial market regulators could further investigate offset pricing policies to improve access and reduce the lifetime costs of mortgage finance for a larger number of households, possibly improving social welfare in the process.” 

 The study also raises further questions about the complexity of pricing structures for mortgage offset products across banks. While some smaller institutions offer fee-free offset accounts, many larger banks charge annual fees of several hundred dollars.  

These fees, combined with varying interest rates and hidden costs, may make it difficult for consumers to assess whether an offset account is right for them. 

“There’s a lack of transparency in how these products are priced,” Dr Graham said. “If banks offered clearer and more flexible pricing options, we could see broader access to the benefits offset accounts can provide.” 

Call for greater education on mortgage products 

The research also points to a broader need for consumer education about mortgage products, including offset accounts. 

“Borrowers may not realise that the effectiveness of an offset account depends on their ability to maintain a healthy savings balance,” Dr Graham said. “Without that, the interest savings may not outweigh the fees. 

“Lenders or mortgage brokers could provide more information and better educate households to help make informed decisions about mortgage offset accounts. This is necessary to ensure that offset account users are getting the interest savings they expect from these products.”

Dr Graham’s data-driven research offers timely insight for future policy development in the mortgage industry, contributing to a more transparent and equitable mortgage landscape. 

“Further research is needed into how mortgage offset accounts are designed and marketed, and how policy can improve financial outcomes for Australian households by making mortgage products more accessible, efficient, and fair for all homeowners,” Dr Graham said. 

——–

Notes:
[1] A Structural Model of Mortgage Offset Accounts in the Australian Housing Market
]]>

Lenders or mortgage brokers could provide more information and better educate households to help make informed decisions about mortgage offset accounts.

Mortgage offset accounts are widely used across Australia, yet their financial benefits disproportionately favour wealthier households, a new study from the University of Sydney has revealed, raising important questions about fee structures, pricing transparency and consumer education in the mortgage market. 

Carried out by Dr James Graham, senior lecturer in the School of Economics, the research published in the Economic Record[1] journal is the first academic analysis of mortgage offset accounts in Australia, despite their popularity among borrowers.  

“Around 40 percent of Australian mortgage holders use mortgage offset accounts, which allow savings held in linked accounts to reduce the interest paid on home loans – for example, a $1 million mortgage with a $100,000 balance held in the offset account would result in interest paid on just $900,000,” Dr Graham said. 

“But until now, little was known about who uses mortgage offset accounts, how they’re used, and who actually benefits.” 

Offset accounts favour wealthier households 

Dr Graham’s study uses a macroeconomic model based on household life–cycle decisions and using Australian data to explore how offset accounts are used across different income levels, mortgage sizes, and property values.  

The findings show that households with higher incomes, larger mortgages, and more expensive homes are significantly more likely to benefit from offset accounts, while many others may be paying fees without gaining meaningful savings. 

“Offset accounts can be a powerful tool for reducing mortgage interest, but they’re not a one-size-fits-all solution,” said Dr Graham. “Many households are potentially signing up for these products without fully understanding how they work, and in some cases they may actually be worse off. This confusion is perhaps not surprising given that some lenders provide offset accounts for free, some charge annual fees, while others charge higher interest on the underlying mortgage.” 

Alternative mortgage pricing could improve equity 

Dr Graham’s modelling suggests that alternative pricing structures could improve equity in the mortgage market, allowing more households to access the advantages of offset accounts without being penalised by high fees. 

“The economic disparities in the data suggest the possibility that alternative mortgage pricing could improve access and more evenly distribute the benefits of mortgage offset account use,” he said.

“Mortgage providers and financial market regulators could further investigate offset pricing policies to improve access and reduce the lifetime costs of mortgage finance for a larger number of households, possibly improving social welfare in the process.” 

 The study also raises further questions about the complexity of pricing structures for mortgage offset products across banks. While some smaller institutions offer fee-free offset accounts, many larger banks charge annual fees of several hundred dollars.  

These fees, combined with varying interest rates and hidden costs, may make it difficult for consumers to assess whether an offset account is right for them. 

“There’s a lack of transparency in how these products are priced,” Dr Graham said. “If banks offered clearer and more flexible pricing options, we could see broader access to the benefits offset accounts can provide.” 

Call for greater education on mortgage products 

The research also points to a broader need for consumer education about mortgage products, including offset accounts. 

“Borrowers may not realise that the effectiveness of an offset account depends on their ability to maintain a healthy savings balance,” Dr Graham said. “Without that, the interest savings may not outweigh the fees. 

“Lenders or mortgage brokers could provide more information and better educate households to help make informed decisions about mortgage offset accounts. This is necessary to ensure that offset account users are getting the interest savings they expect from these products.”

Dr Graham’s data-driven research offers timely insight for future policy development in the mortgage industry, contributing to a more transparent and equitable mortgage landscape. 

“Further research is needed into how mortgage offset accounts are designed and marketed, and how policy can improve financial outcomes for Australian households by making mortgage products more accessible, efficient, and fair for all homeowners,” Dr Graham said. 

——–

Notes:
[1] A Structural Model of Mortgage Offset Accounts in the Australian Housing Market

The post Mortgage offset accounts may deepen wealth divide, new research reveals  appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2025/10/mortgage-offset-accounts-may-deepen-wealth-divide-new-research-reveals/feed/ 0 Sharp building approvals in 1Q drop highlights shortage in housing https://www.adviservoice.com.au/2025/07/sharp-building-approvals-in-1q-drop-highlights-shortage-in-housing/ https://www.adviservoice.com.au/2025/07/sharp-building-approvals-in-1q-drop-highlights-shortage-in-housing/#respond Thu, 17 Jul 2025 21:15:54 +0000 https://www.adviservoice.com.au/?p=104933

Simon Arraj

Simon Arraj, Founder and Responsible Manager of Vado Private, believes further cuts in interest rates this year could stimulate construction activity and help to lift housing supply in Australia’s biggest cities, which face a crucial shortage of homes.

New data from the Australian Bureau of Statistics (ABS) reveals 43,517 dwellings were completed in the March quarter in seasonally adjusted terms, down 4.7% from a year earlier. That also compares to more than 47,000 dwellings completed in March 2020 and around 45,600 in March 2021.

“While we are still seeing lower building approvals for dwellings compared to four or five years ago, the restriction in housing supply could ease if interest rates continue to fall. This could encourage greater housing construction, which is essential to alleviating the shortage of housing accommodation in Australia,” Mr Arraj said.

“Having said that, new housing supply is currently near decade lows, with only 177,000 new homes completed in 2024,” he said.

The lacklustre figures come as Australia marks one year into the five-year National Housing Accord, in which states and territories must build a combined 1.2 million well-located homes by June 30, 2029. The National Housing Supply & Affordability Council (NHSAC) has released[1] its 2025 State of the Housing System report, which expects only 938,000 dwellings to be built nationwide by mid-2029. The Urban Development Institute of Australia (UDIA) 2025 State of the Land Report[2] has separately forecast a supply shortfall of around 400,000 dwellings for the combined capital cities by 2029, driven by persistent underbuilding relative to population growth and ongoing challenges in the construction sector.

“Given this shortage, we could see further gains in property prices in Australia over the reminder of the year, especially if the central bank cuts interest rates again. ” Mr Arraj said.

“Whether this happens is not clear. The central bank may not want to risk re-igniting inflation, and therefore it could keep interest rates on hold in the second half of 2025. The RBA’s inflation target of 2% to 3% remains a key focus,” he said.

——–

Notes:
[1] https://nhsac.gov.au/sites/nhsac.gov.au/files/2025-05/ar-state-housing-system-2025.pdf
[2] https://udia.com.au/2025/03/udia-state-of-the-land-report-shows-housing-crisis-will-deepen-over-the-year-ahead-due-to-multi-faceted-challenges/
]]>

Simon Arraj

Simon Arraj, Founder and Responsible Manager of Vado Private, believes further cuts in interest rates this year could stimulate construction activity and help to lift housing supply in Australia’s biggest cities, which face a crucial shortage of homes.

New data from the Australian Bureau of Statistics (ABS) reveals 43,517 dwellings were completed in the March quarter in seasonally adjusted terms, down 4.7% from a year earlier. That also compares to more than 47,000 dwellings completed in March 2020 and around 45,600 in March 2021.

“While we are still seeing lower building approvals for dwellings compared to four or five years ago, the restriction in housing supply could ease if interest rates continue to fall. This could encourage greater housing construction, which is essential to alleviating the shortage of housing accommodation in Australia,” Mr Arraj said.

“Having said that, new housing supply is currently near decade lows, with only 177,000 new homes completed in 2024,” he said.

The lacklustre figures come as Australia marks one year into the five-year National Housing Accord, in which states and territories must build a combined 1.2 million well-located homes by June 30, 2029. The National Housing Supply & Affordability Council (NHSAC) has released[1] its 2025 State of the Housing System report, which expects only 938,000 dwellings to be built nationwide by mid-2029. The Urban Development Institute of Australia (UDIA) 2025 State of the Land Report[2] has separately forecast a supply shortfall of around 400,000 dwellings for the combined capital cities by 2029, driven by persistent underbuilding relative to population growth and ongoing challenges in the construction sector.

“Given this shortage, we could see further gains in property prices in Australia over the reminder of the year, especially if the central bank cuts interest rates again. ” Mr Arraj said.

“Whether this happens is not clear. The central bank may not want to risk re-igniting inflation, and therefore it could keep interest rates on hold in the second half of 2025. The RBA’s inflation target of 2% to 3% remains a key focus,” he said.

——–

Notes:
[1] https://nhsac.gov.au/sites/nhsac.gov.au/files/2025-05/ar-state-housing-system-2025.pdf
[2] https://udia.com.au/2025/03/udia-state-of-the-land-report-shows-housing-crisis-will-deepen-over-the-year-ahead-due-to-multi-faceted-challenges/

The post Sharp building approvals in 1Q drop highlights shortage in housing appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2025/07/sharp-building-approvals-in-1q-drop-highlights-shortage-in-housing/feed/ 0 Block Earner announces crypto-backed home loans https://www.adviservoice.com.au/2025/07/block-earner-announces-crypto-backed-home-loans/ https://www.adviservoice.com.au/2025/07/block-earner-announces-crypto-backed-home-loans/#respond Wed, 16 Jul 2025 21:10:25 +0000 https://www.adviservoice.com.au/?p=104924

Charlie Karaboga

Block Earner, one of Australia’s leading digital asset fintechs, has launched the country’s first Bitcoin-backed home loan, allowing crypto holders to use Bitcoin as security for deposit finance to enter the property market while maintaining their Bitcoin market exposure.

As Bitcoin reaches new price highs and cements its role as a globally recognised store of value, a growing cohort of digitally native Australians is unlocking the idle equity of their long-term crypto holdings. Block Earner’s new model reflects a broader shift in how wealth is stored, measured, and applied, signalling the beginning of a more inclusive approach to financial eligibility.

With the total Australian crypto market estimated at A$91.43 billion1 in 2025, and an estimated 3.9 million Australians2 holding crypto in 2024, with personal holdings sitting at approximately A$20–22 billion, the asset class is becoming too large to ignore. Bitcoin alone accounts for more than half of the Australians’ crypto holdings.

A better way to measure affordability — in Bitcoin and gold

Traditional affordability metrics, based on wage growth and Australian dollar figures, suggest a worsening housing crisis. But when homes are priced in inflation-resistant assets such as Bitcoin and gold, the picture shifts, and long-term holders of these assets may find their relative purchasing power has increased.

In 2016, the average Australian home cost 627 BTC or approximately 350 ounces of gold3. By 2024, that had dropped to just 4.3 BTC or approximately 170 ounces of gold.

This tells us something critical: while property values have soared in fiat terms, they’ve become more affordable when measured against stores of value with fixed, or slowly expanding supply and increasing institutional demand.

For investors who have built long-term exposure to assets like Bitcoin, and historically, gold, their relative purchasing power has significantly increased, even amidst broader affordability pressures.
That’s why crypto-backed lending makes sense: when an asset outpaces inflation, and property merely keeps pace with it, using Bitcoin to access real assets isn’t just viable, it’s strategically sound.

The future of financial eligibility

Block Earner’s product also signals an emerging evolution in how the finance sector assesses creditworthiness. Traditionally, lenders have prioritised salary, cash savings, and superannuation, overlooking how younger Australians are building and holding wealth.

“This is a turning point for both property finance and digital assets,” said Charlie Karaboga, CEO and Co-Founder of Block Earner. “Crypto holders shouldn’t have to choose between holding Bitcoin and buying a home. We’re giving them a smarter option, a way to put their crypto to work without giving it up. This product isn’t just innovative, it’s inevitable.”

By recognising Bitcoin as a legitimate asset class, Block Earner is broadening the definition of assessable wealth, without compromising borrower protection or lending discipline. Thanks to Bitcoin’s divisible nature, Block Earner can more precisely account for its value during the assessment process. Borrowers also have the flexibility to use their Bitcoin security to partially or fully offset loan repayments if they choose.
Momentum is also building globally. In the US the Federal Housing Finance Agency (FHFA) recently announced it is considering allowing borrowers to use crypto as part of their federal mortgage applications, without converting it to cash. It’s another sign that traditional finance is evolving to meet the asset realities of modern investors.

The model: how it works

Block Earner’s Bitcoin-backed home loan product provides an inclusive, asset-backed path from Bitcoin holder to homeowner. This structure allows eligible borrowers to enter the property market without liquidating their Bitcoin, while preserving upside exposure:

  1. Borrower applies via Block Earner’s platform
  2. Bitcoin (BTC) is transferred into Institutional-Grade custody
  3. A cash loan is issued against the Bitcoin, covering up to 50% of the property value. Typically used to fund the deposit component.
  4. A traditional mortgage lender finances the remainder, through a standard home loan.
  5. The Bitcoin backed deposit loan could be borrowed interest-only for up to four years, with principal repayable in crypto, cash, or via refinancing at the end of the loan

Borrowers can exit the Bitcoin loan with Block Earner at any time without penalty.

The product allows prospective homeowners to not only enter the property market without selling their Bitcoin, but for many, also avoid costly LMI.

Block Earner does not lend Bitcoin security to 3rd parties. Borrowers’ Bitcoin is held in institutional-grade custody via Fireblocks, one of the most secure custodians globally.

Who is this for?

This product is designed for digital natives holding Bitcoin, looking to preserve digital asset exposure while acquiring property.

It reflects a broader wealth trend: as digital asset-based finance matures, investors are increasingly seeking ways to integrate digital assets into conventional wealth strategies.

Market momentum

Although the product has only soft-launched, early briefings have triggered strong interest from potential borrowers, accumulating over $110 million in mortgage demand. Block Earner has commenced a national roadshow, with sessions already held in Sydney and further events scheduled in Melbourne, Brisbane and Perth.

Formal lending partnerships are in late-stage discussion, with rollout plans aligned for later in 2025.

]]>

Charlie Karaboga

Block Earner, one of Australia’s leading digital asset fintechs, has launched the country’s first Bitcoin-backed home loan, allowing crypto holders to use Bitcoin as security for deposit finance to enter the property market while maintaining their Bitcoin market exposure.

As Bitcoin reaches new price highs and cements its role as a globally recognised store of value, a growing cohort of digitally native Australians is unlocking the idle equity of their long-term crypto holdings. Block Earner’s new model reflects a broader shift in how wealth is stored, measured, and applied, signalling the beginning of a more inclusive approach to financial eligibility.

With the total Australian crypto market estimated at A$91.43 billion1 in 2025, and an estimated 3.9 million Australians2 holding crypto in 2024, with personal holdings sitting at approximately A$20–22 billion, the asset class is becoming too large to ignore. Bitcoin alone accounts for more than half of the Australians’ crypto holdings.

A better way to measure affordability — in Bitcoin and gold

Traditional affordability metrics, based on wage growth and Australian dollar figures, suggest a worsening housing crisis. But when homes are priced in inflation-resistant assets such as Bitcoin and gold, the picture shifts, and long-term holders of these assets may find their relative purchasing power has increased.

In 2016, the average Australian home cost 627 BTC or approximately 350 ounces of gold3. By 2024, that had dropped to just 4.3 BTC or approximately 170 ounces of gold.

This tells us something critical: while property values have soared in fiat terms, they’ve become more affordable when measured against stores of value with fixed, or slowly expanding supply and increasing institutional demand.

For investors who have built long-term exposure to assets like Bitcoin, and historically, gold, their relative purchasing power has significantly increased, even amidst broader affordability pressures.
That’s why crypto-backed lending makes sense: when an asset outpaces inflation, and property merely keeps pace with it, using Bitcoin to access real assets isn’t just viable, it’s strategically sound.

The future of financial eligibility

Block Earner’s product also signals an emerging evolution in how the finance sector assesses creditworthiness. Traditionally, lenders have prioritised salary, cash savings, and superannuation, overlooking how younger Australians are building and holding wealth.

“This is a turning point for both property finance and digital assets,” said Charlie Karaboga, CEO and Co-Founder of Block Earner. “Crypto holders shouldn’t have to choose between holding Bitcoin and buying a home. We’re giving them a smarter option, a way to put their crypto to work without giving it up. This product isn’t just innovative, it’s inevitable.”

By recognising Bitcoin as a legitimate asset class, Block Earner is broadening the definition of assessable wealth, without compromising borrower protection or lending discipline. Thanks to Bitcoin’s divisible nature, Block Earner can more precisely account for its value during the assessment process. Borrowers also have the flexibility to use their Bitcoin security to partially or fully offset loan repayments if they choose.
Momentum is also building globally. In the US the Federal Housing Finance Agency (FHFA) recently announced it is considering allowing borrowers to use crypto as part of their federal mortgage applications, without converting it to cash. It’s another sign that traditional finance is evolving to meet the asset realities of modern investors.

The model: how it works

Block Earner’s Bitcoin-backed home loan product provides an inclusive, asset-backed path from Bitcoin holder to homeowner. This structure allows eligible borrowers to enter the property market without liquidating their Bitcoin, while preserving upside exposure:

  1. Borrower applies via Block Earner’s platform
  2. Bitcoin (BTC) is transferred into Institutional-Grade custody
  3. A cash loan is issued against the Bitcoin, covering up to 50% of the property value. Typically used to fund the deposit component.
  4. A traditional mortgage lender finances the remainder, through a standard home loan.
  5. The Bitcoin backed deposit loan could be borrowed interest-only for up to four years, with principal repayable in crypto, cash, or via refinancing at the end of the loan

Borrowers can exit the Bitcoin loan with Block Earner at any time without penalty.

The product allows prospective homeowners to not only enter the property market without selling their Bitcoin, but for many, also avoid costly LMI.

Block Earner does not lend Bitcoin security to 3rd parties. Borrowers’ Bitcoin is held in institutional-grade custody via Fireblocks, one of the most secure custodians globally.

Who is this for?

This product is designed for digital natives holding Bitcoin, looking to preserve digital asset exposure while acquiring property.

It reflects a broader wealth trend: as digital asset-based finance matures, investors are increasingly seeking ways to integrate digital assets into conventional wealth strategies.

Market momentum

Although the product has only soft-launched, early briefings have triggered strong interest from potential borrowers, accumulating over $110 million in mortgage demand. Block Earner has commenced a national roadshow, with sessions already held in Sydney and further events scheduled in Melbourne, Brisbane and Perth.

Formal lending partnerships are in late-stage discussion, with rollout plans aligned for later in 2025.

The post Block Earner announces crypto-backed home loans appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2025/07/block-earner-announces-crypto-backed-home-loans/feed/ 0 AMP Bank launches Australia’s first 10-year interest-only home loan with no reassessment https://www.adviservoice.com.au/2025/05/amp-bank-launches-australias-first-10-year-interest-only-home-loan-with-no-reassessment/ https://www.adviservoice.com.au/2025/05/amp-bank-launches-australias-first-10-year-interest-only-home-loan-with-no-reassessment/#respond Mon, 05 May 2025 21:05:58 +0000 https://www.adviservoice.com.au/?p=103143

Michael Christofides

Key points:

  • The innovative new home loan is available to eligible borrowers including retirees, pre-retirees, investors and owner-occupiers
  • AMP Bank becomes the first retail bank in Australia to offer this home loan for new and existing owner-occupiers
  • Unlike typical products which require reassessment after five years, this home loan provides greater certainty and stability for the full interest-only term

AMP Bank has launched a 10-year interest-only home loan with no mid-term reassessment, providing customers with more choice, long-term financial flexibility and greater control over their cashflow.

The new loan is now available to eligible borrowers, including retirees, pre-retirees, investors, and owner-occupiers.

The offer seeks to address the changing needs of consumers, especially retirees and pre-retirees who are seeking additional cashflow for one off large expenses, or enhance their quality of life in retirement.

Michael Christofides, Director of Lending & Everyday Banking, AMP Bank, said: “In the past 20 years, the number of Australians aged 55 to 64 who own their homes outright has significantly decreased. Consequently, more people are carrying debt into retirement – a trend set to continue.

“While paying off a mortgage early is often advisable, maintaining flexibility and unlocking property equity can be beneficial, especially in the early years of retirement when many underspend out of fear of outliving their savings.

“For some retirees, the reality is that increasing equity in their property offers no felt benefit; instead, they could use additional cashflow to enhance their quality of life.

“Our new interest-only loan is a simple solution designed to provide this optionality and financial flexibility for retirees and pre-retirees.”

Features and benefits

10-year interest-only term: A decade of interest-only repayments, offering long-term cashflow support.

No mid-term reassessment: Unlike typical products which require reassessment after five years, the loan provides greater certainty and stability for the full interest-only term.

Flexible eligibility: Available to a wide range of borrowers, including retirees, pre-retirees, self-employed individuals, owner-occupiers, investors, and rent-vestors.

Financial confidence: Enables longer-term strategic financial planning, whether it’s unlocking home equity in retirement or supporting investment goals in earlier life stages.

Quality of life in retirement: Helps older Australians retain equity in their home, remain in their home, while unlocking cashflow to improve quality of life.

Empowers younger buyers: Provides an alternative pathway into the property market, particularly for younger Australians through rent-vesting strategies.

Simplified administration: Reduces paperwork and ongoing reassessment burdens, especially helpful for those with non-traditional income sources.

New financial realities

Generational change: Census data from 1991, 2006 and 2021 shows that home ownership, for those aged between 25–39 years has decreased in each successive generation[1]

Rising debt in retirement: 9 in 10 Australians over 50 believe they’ll still be paying off a mortgage in retirement[2]

Desire to stay put: 4 in 5 Australians aged 65+ aren’t willing to downsize to pass wealth to their children, yet nearly half of those aged 50+ would consider releasing home equity if they could remain in their home[3]

Wealth unspent: 90% of all intergenerational wealth transferral occurs through death inheritance[4], indicating a lack of retiree spending and financial confidence

Loan specifications

Interest-only period: customers may apply for up to a 10-year interest-only period without the need for credit re-assessment after the initial 5 years.

Serviceability assessment: Borrowers’ capacity to repay will be evaluated based on the remaining principal and interest term after the interest-only period.

Exit strategy: Borrowers approaching retirement, already retired and / or aged 60+ are required to meet the Bank’s exit strategy policy.

Maximum loan-to-value ratio (LVR):

  • A maximum LVR of 80% applies to Interest-only products.
  • To safeguard owner-occupiers during market fluctuations, where interest-only terms of 6-10 years are requested and the interest-only repayments portion of the borrowing exceed 50% of total owner-occupied borrowing, the maximum LVR is capped at 70%.
  • For Investment Interest-Only loans, the maximum LVR remains at 80% regardless of interest-only term.

————–

Notes:
[1] Retirement Income Review, 2020
[2] AMP-commissioned research, Dynata, 2023
[3] AMP-commissioned research, Dynata, 2024
[4] Wealth Transfers and Their Economic Effects, Productivity Commission, 2021
]]>

Michael Christofides

Key points:

  • The innovative new home loan is available to eligible borrowers including retirees, pre-retirees, investors and owner-occupiers
  • AMP Bank becomes the first retail bank in Australia to offer this home loan for new and existing owner-occupiers
  • Unlike typical products which require reassessment after five years, this home loan provides greater certainty and stability for the full interest-only term

AMP Bank has launched a 10-year interest-only home loan with no mid-term reassessment, providing customers with more choice, long-term financial flexibility and greater control over their cashflow.

The new loan is now available to eligible borrowers, including retirees, pre-retirees, investors, and owner-occupiers.

The offer seeks to address the changing needs of consumers, especially retirees and pre-retirees who are seeking additional cashflow for one off large expenses, or enhance their quality of life in retirement.

Michael Christofides, Director of Lending & Everyday Banking, AMP Bank, said: “In the past 20 years, the number of Australians aged 55 to 64 who own their homes outright has significantly decreased. Consequently, more people are carrying debt into retirement – a trend set to continue.

“While paying off a mortgage early is often advisable, maintaining flexibility and unlocking property equity can be beneficial, especially in the early years of retirement when many underspend out of fear of outliving their savings.

“For some retirees, the reality is that increasing equity in their property offers no felt benefit; instead, they could use additional cashflow to enhance their quality of life.

“Our new interest-only loan is a simple solution designed to provide this optionality and financial flexibility for retirees and pre-retirees.”

Features and benefits

10-year interest-only term: A decade of interest-only repayments, offering long-term cashflow support.

No mid-term reassessment: Unlike typical products which require reassessment after five years, the loan provides greater certainty and stability for the full interest-only term.

Flexible eligibility: Available to a wide range of borrowers, including retirees, pre-retirees, self-employed individuals, owner-occupiers, investors, and rent-vestors.

Financial confidence: Enables longer-term strategic financial planning, whether it’s unlocking home equity in retirement or supporting investment goals in earlier life stages.

Quality of life in retirement: Helps older Australians retain equity in their home, remain in their home, while unlocking cashflow to improve quality of life.

Empowers younger buyers: Provides an alternative pathway into the property market, particularly for younger Australians through rent-vesting strategies.

Simplified administration: Reduces paperwork and ongoing reassessment burdens, especially helpful for those with non-traditional income sources.

New financial realities

Generational change: Census data from 1991, 2006 and 2021 shows that home ownership, for those aged between 25–39 years has decreased in each successive generation[1]

Rising debt in retirement: 9 in 10 Australians over 50 believe they’ll still be paying off a mortgage in retirement[2]

Desire to stay put: 4 in 5 Australians aged 65+ aren’t willing to downsize to pass wealth to their children, yet nearly half of those aged 50+ would consider releasing home equity if they could remain in their home[3]

Wealth unspent: 90% of all intergenerational wealth transferral occurs through death inheritance[4], indicating a lack of retiree spending and financial confidence

Loan specifications

Interest-only period: customers may apply for up to a 10-year interest-only period without the need for credit re-assessment after the initial 5 years.

Serviceability assessment: Borrowers’ capacity to repay will be evaluated based on the remaining principal and interest term after the interest-only period.

Exit strategy: Borrowers approaching retirement, already retired and / or aged 60+ are required to meet the Bank’s exit strategy policy.

Maximum loan-to-value ratio (LVR):

  • A maximum LVR of 80% applies to Interest-only products.
  • To safeguard owner-occupiers during market fluctuations, where interest-only terms of 6-10 years are requested and the interest-only repayments portion of the borrowing exceed 50% of total owner-occupied borrowing, the maximum LVR is capped at 70%.
  • For Investment Interest-Only loans, the maximum LVR remains at 80% regardless of interest-only term.

————–

Notes:
[1] Retirement Income Review, 2020
[2] AMP-commissioned research, Dynata, 2023
[3] AMP-commissioned research, Dynata, 2024
[4] Wealth Transfers and Their Economic Effects, Productivity Commission, 2021

The post AMP Bank launches Australia’s first 10-year interest-only home loan with no reassessment appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2025/05/amp-bank-launches-australias-first-10-year-interest-only-home-loan-with-no-reassessment/feed/ 0 ‘Rent-vesting’ on the rise as more Australians look to buy in 2025 https://www.adviservoice.com.au/2025/02/rent-vesting-on-the-rise-as-more-australians-look-to-buy-in-2025/ https://www.adviservoice.com.au/2025/02/rent-vesting-on-the-rise-as-more-australians-look-to-buy-in-2025/#respond Mon, 17 Feb 2025 20:15:48 +0000 https://www.adviservoice.com.au/?p=101316

Damien MacRae

Westpac research has found more than half (54%) of first home buyers are considering ‘rent-vesting’ to get into the property market – up 4 per cent from this time last year.

The ‘rent-vesting’ concept involves buying in a growth market or more affordable area while renting where you want to live, with the intent to build equity that can be put towards buying your own home in the future.

Westpac’s annual Home Ownership Report shows New South Wales leads the way as the rent-vesting capital of Australia, with 61 per cent considering rent-vesting in the state, followed by Victoria at 54 per cent, and Queensland at 52 per cent.

Westpac’s research also found many aspiring homeowners are looking to buy sooner. This time last year, only 10 per cent of Australians were looking to have purchased a new home to live in by the end of the year. In 2025, the share is 13 per cent.

“More Australians are entering 2025 planning to purchase a property than last year, reflecting renewed optimism from aspiring home buyers. We’re continuing to see strong demand from customers seeking pre-approval for home purchases across both the owner-occupier and investor segments,” said Damien MacRae, Westpac Managing Director Mortgages.

“At the same time, rent-vesting is growing in popularity as more buyers look to get their foot on the property ladder sooner, particularly in capital cities where housing prices are typically higher.

“Our research shows that 82 per cent of Australians would be open to purchasing in an area they hadn’t originally considered, as buyers adjust their expectations in response to the market.”

Westpac Senior Economist Matthew Hassan says potential rate moves were a big motivator for would-be buyers in 2025.

“Interest rates are almost certainly having an influence here. Last year high rates deterred buyers, but the possibility rates will move lower appears to be shaping would-be buyer plans. For rent-vestors the potential rate moves bode well for increased buying power.”

Top tips for aspiring rent-vestors

  • Have clearly defined investment objectives: Clearly outline the ultimate aim of this purchase – including timelines for selling, upgrading, or leveraging equity.
  • Location, location: In addition to capital growth, consider areas where rental yields are robust. Investigate what type/s of properties are in demand in your target area/s.
  • Consider product options: There are many different home loan types, including options specifically for investors. Westpac has a dedicated website for property investors, with handy tips and guides to help rent-vestors on their way.
]]>

Damien MacRae

Westpac research has found more than half (54%) of first home buyers are considering ‘rent-vesting’ to get into the property market – up 4 per cent from this time last year.

The ‘rent-vesting’ concept involves buying in a growth market or more affordable area while renting where you want to live, with the intent to build equity that can be put towards buying your own home in the future.

Westpac’s annual Home Ownership Report shows New South Wales leads the way as the rent-vesting capital of Australia, with 61 per cent considering rent-vesting in the state, followed by Victoria at 54 per cent, and Queensland at 52 per cent.

Westpac’s research also found many aspiring homeowners are looking to buy sooner. This time last year, only 10 per cent of Australians were looking to have purchased a new home to live in by the end of the year. In 2025, the share is 13 per cent.

“More Australians are entering 2025 planning to purchase a property than last year, reflecting renewed optimism from aspiring home buyers. We’re continuing to see strong demand from customers seeking pre-approval for home purchases across both the owner-occupier and investor segments,” said Damien MacRae, Westpac Managing Director Mortgages.

“At the same time, rent-vesting is growing in popularity as more buyers look to get their foot on the property ladder sooner, particularly in capital cities where housing prices are typically higher.

“Our research shows that 82 per cent of Australians would be open to purchasing in an area they hadn’t originally considered, as buyers adjust their expectations in response to the market.”

Westpac Senior Economist Matthew Hassan says potential rate moves were a big motivator for would-be buyers in 2025.

“Interest rates are almost certainly having an influence here. Last year high rates deterred buyers, but the possibility rates will move lower appears to be shaping would-be buyer plans. For rent-vestors the potential rate moves bode well for increased buying power.”

Top tips for aspiring rent-vestors

  • Have clearly defined investment objectives: Clearly outline the ultimate aim of this purchase – including timelines for selling, upgrading, or leveraging equity.
  • Location, location: In addition to capital growth, consider areas where rental yields are robust. Investigate what type/s of properties are in demand in your target area/s.
  • Consider product options: There are many different home loan types, including options specifically for investors. Westpac has a dedicated website for property investors, with handy tips and guides to help rent-vestors on their way.

The post ‘Rent-vesting’ on the rise as more Australians look to buy in 2025 appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2025/02/rent-vesting-on-the-rise-as-more-australians-look-to-buy-in-2025/feed/ 0 Home loan demand hit by higher rates, first home buyers hit the most https://www.adviservoice.com.au/2024/07/home-loan-demand-hit-by-higher-rates-first-home-buyers-hit-the-most/ https://www.adviservoice.com.au/2024/07/home-loan-demand-hit-by-higher-rates-first-home-buyers-hit-the-most/#respond Mon, 08 Jul 2024 21:55:35 +0000 https://www.adviservoice.com.au/?p=96703 Demand for new home loans eased in May,  with first home buyer demand hit the hardest, while investors demand for mortgages also dipped, but remains very strong overall, leaving investors vulnerable due to any potential increase in interest rates should inflation remain above the central bank’s target band, according to Tim Keith, Managing Director of fund manager and private lender, Capspace.

New official data released today reveals that the value of new loans to investors for housing fell 1.3% in May to $10.7 billion but was still 29.5% higher than a year ago. The data from the Australian Bureau of Statistics (ABS) also shows the value of new loans to owner-occupiers (excluding first home buyers) fell 1.6% in May to $12.9 billion while first home buyer loans decreased the most, by 2.9% to $5.2 billion.

Notably, since May 2023, the value of new loans to investors has risen across most states and territories. The largest rises were in NSW (up 24.8%), Queensland (up 48.2%) and WA (up 73.9%). The value of new loans to investors in Queensland hit an all-time high of $2.4 billion in May, exceeding Victoria for the third straight month. The average loan size for investors in Queensland has risen 14.3% since May 2023 to $580,000 while the average loan size in Victoria has fallen 3.2% to $566,000, ABS said. NSW leads the nation with the largest loan size at $796,815.

“Investor demand for housing has eased in May due to higher interest rates, though strong growth over the past year has added to upward pressure on property prices,” said Mr Keith.

“Ongoing population growth will put further pressure on house prices and rents nationally in the coming year, keeping upward pressure on the size of household mortgages sizes, as well as inflation and potentially official interest rates,” he said.

Traders have priced a just-under even chance that the RBA will increase interest rates at its next meeting following stronger-than-forecasted inflation in May, according to Bloomberg.

“We believe that with the employment market remaining tight, and with no immediate signs of inflation falling below 3%, the RBA is likely to keep interest rates on hold at its August meeting and in the months to come or it could raise them again if inflation needs further taming,” Mr Keith said.

ABS data reveals that the key driver of household wealth gains in recent years has been rising property prices, which have outstripped growth in liabilities, as the chart below from the Reserve Bank show.

“With such a large proportion of individual wealth tied up in property, it makes sense for investors to diversify into other asset classes such as fixed income, to lessen the risk of their wealth falling should residential property prices pull back or interest rates rise,” said Mr Keith.

“While lower rates helped to boost asset values leading up to and after the Covid pandemic, higher interest rates could work to erode wealth in coming quarters should interest rates rise again this year. That indicates a positive outlook for the returns on private credit, as most corporate loans are floating rate and can increase with changes in the official cash rate,” he said.

According to Mr Keith, private credit offers an attractive level of regular stable cash income and return for investors, particularly in comparison to the long-run average returns of more volatile asset classes such as residential property.

“Over time, I expect individual investors to follow the lead of Australia’s largest superannuation funds and invest more in private credit investments, which do not attract a huge stamp duty impost or require a large initial deposit such as is required for residential property purchases.

“Private credit offers opportunities to younger investors as they can invest smaller amounts of money, unlike property investments which due to the high costs are beyond the reach of many Australians,” Mr Keith said.

]]> Demand for new home loans eased in May,  with first home buyer demand hit the hardest, while investors demand for mortgages also dipped, but remains very strong overall, leaving investors vulnerable due to any potential increase in interest rates should inflation remain above the central bank’s target band, according to Tim Keith, Managing Director of fund manager and private lender, Capspace.

New official data released today reveals that the value of new loans to investors for housing fell 1.3% in May to $10.7 billion but was still 29.5% higher than a year ago. The data from the Australian Bureau of Statistics (ABS) also shows the value of new loans to owner-occupiers (excluding first home buyers) fell 1.6% in May to $12.9 billion while first home buyer loans decreased the most, by 2.9% to $5.2 billion.

Notably, since May 2023, the value of new loans to investors has risen across most states and territories. The largest rises were in NSW (up 24.8%), Queensland (up 48.2%) and WA (up 73.9%). The value of new loans to investors in Queensland hit an all-time high of $2.4 billion in May, exceeding Victoria for the third straight month. The average loan size for investors in Queensland has risen 14.3% since May 2023 to $580,000 while the average loan size in Victoria has fallen 3.2% to $566,000, ABS said. NSW leads the nation with the largest loan size at $796,815.

“Investor demand for housing has eased in May due to higher interest rates, though strong growth over the past year has added to upward pressure on property prices,” said Mr Keith.

“Ongoing population growth will put further pressure on house prices and rents nationally in the coming year, keeping upward pressure on the size of household mortgages sizes, as well as inflation and potentially official interest rates,” he said.

Traders have priced a just-under even chance that the RBA will increase interest rates at its next meeting following stronger-than-forecasted inflation in May, according to Bloomberg.

“We believe that with the employment market remaining tight, and with no immediate signs of inflation falling below 3%, the RBA is likely to keep interest rates on hold at its August meeting and in the months to come or it could raise them again if inflation needs further taming,” Mr Keith said.

ABS data reveals that the key driver of household wealth gains in recent years has been rising property prices, which have outstripped growth in liabilities, as the chart below from the Reserve Bank show.

“With such a large proportion of individual wealth tied up in property, it makes sense for investors to diversify into other asset classes such as fixed income, to lessen the risk of their wealth falling should residential property prices pull back or interest rates rise,” said Mr Keith.

“While lower rates helped to boost asset values leading up to and after the Covid pandemic, higher interest rates could work to erode wealth in coming quarters should interest rates rise again this year. That indicates a positive outlook for the returns on private credit, as most corporate loans are floating rate and can increase with changes in the official cash rate,” he said.

According to Mr Keith, private credit offers an attractive level of regular stable cash income and return for investors, particularly in comparison to the long-run average returns of more volatile asset classes such as residential property.

“Over time, I expect individual investors to follow the lead of Australia’s largest superannuation funds and invest more in private credit investments, which do not attract a huge stamp duty impost or require a large initial deposit such as is required for residential property purchases.

“Private credit offers opportunities to younger investors as they can invest smaller amounts of money, unlike property investments which due to the high costs are beyond the reach of many Australians,” Mr Keith said.

The post Home loan demand hit by higher rates, first home buyers hit the most appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2024/07/home-loan-demand-hit-by-higher-rates-first-home-buyers-hit-the-most/feed/ 0 Thinktank announces successful closure of $750 million residential mortgage-backed securities transaction https://www.adviservoice.com.au/2024/04/thinktank-announces-successful-closure-of-750-million-residential-mortgage-backed-securities-transaction/ https://www.adviservoice.com.au/2024/04/thinktank-announces-successful-closure-of-750-million-residential-mortgage-backed-securities-transaction/#respond Mon, 22 Apr 2024 21:30:57 +0000 https://www.adviservoice.com.au/?p=95245

Jonathan Street

Leading independent property lender specialising in commercial and residential mortgages, Thinktank, has successfully closed its first residential mortgage-backed securities (RMBS) issue in 2024 totalling A$750 million.

This RMBS issuance marks Thinktank’s 15th transaction since commencement of the business in 2006, demonstrating the company’s scale and market prominence.

Due to strong investor demand, the launch size of A$500 million was upsized to A$750 million, with the final order book 1.5x over-subscribed and exceeding A$1.1 billion.

As an established issuer in capital markets, this transaction takes Thinktank’s total securitisation issuance to A$7.5 billion.

Thinktank CEO Jonathan Street said: “The transaction represents a strong start to the year for ourselves and the market generally, underscored by keen participation from both existing investors while also welcoming a number of new investors into our RMBS program.”

The final order book attracted interest from 22 institutional investors, with 60 per cent representing domestic accounts with 40 per cent from offshore participants.

Bank balance sheets accounted for 61 per cent of the final order book, with real money investors comprising the remainder.

Pricing details were disclosed across the capital structure, with the S&P and Fitch AAA rated Class A1-S Notes set at a margin of +0.90 per cent above the 30-day Bank Bill Swap Rate, the AAA rated Class A1-L Notes at 1.35% per cent and the AAA rated Class A2 Notes at +1.50 per cent. Notably, the Class A1-S, Class A1-L and Class A2 Notes priced in line with the initial price guidance at launch, reflecting a positive market reception, while the demand for the Notes further down the structure saw associated margins tighten at the left hand side of the initial guidance ranges due to strong investor interest.

The pool of 1,200 first mortgage loans with an average size of $624,982 while 94.0 percent of properties were in major metropolitan areas with 6.0 percent in urbanised non-metro locations.

The successful bond issue highlights the sustained quality of Thinktank’s commercial and residential loan books over the long-term.

Mr Street concluded, “we continue to maintain a positive outlook for the SME and the self-employed sector despite the persisting challenges of higher interest rates and we remain committed to continuing to expand our support for this critical part of the Australian economy.”

]]>

Jonathan Street

Leading independent property lender specialising in commercial and residential mortgages, Thinktank, has successfully closed its first residential mortgage-backed securities (RMBS) issue in 2024 totalling A$750 million.

This RMBS issuance marks Thinktank’s 15th transaction since commencement of the business in 2006, demonstrating the company’s scale and market prominence.

Due to strong investor demand, the launch size of A$500 million was upsized to A$750 million, with the final order book 1.5x over-subscribed and exceeding A$1.1 billion.

As an established issuer in capital markets, this transaction takes Thinktank’s total securitisation issuance to A$7.5 billion.

Thinktank CEO Jonathan Street said: “The transaction represents a strong start to the year for ourselves and the market generally, underscored by keen participation from both existing investors while also welcoming a number of new investors into our RMBS program.”

The final order book attracted interest from 22 institutional investors, with 60 per cent representing domestic accounts with 40 per cent from offshore participants.

Bank balance sheets accounted for 61 per cent of the final order book, with real money investors comprising the remainder.

Pricing details were disclosed across the capital structure, with the S&P and Fitch AAA rated Class A1-S Notes set at a margin of +0.90 per cent above the 30-day Bank Bill Swap Rate, the AAA rated Class A1-L Notes at 1.35% per cent and the AAA rated Class A2 Notes at +1.50 per cent. Notably, the Class A1-S, Class A1-L and Class A2 Notes priced in line with the initial price guidance at launch, reflecting a positive market reception, while the demand for the Notes further down the structure saw associated margins tighten at the left hand side of the initial guidance ranges due to strong investor interest.

The pool of 1,200 first mortgage loans with an average size of $624,982 while 94.0 percent of properties were in major metropolitan areas with 6.0 percent in urbanised non-metro locations.

The successful bond issue highlights the sustained quality of Thinktank’s commercial and residential loan books over the long-term.

Mr Street concluded, “we continue to maintain a positive outlook for the SME and the self-employed sector despite the persisting challenges of higher interest rates and we remain committed to continuing to expand our support for this critical part of the Australian economy.”

The post Thinktank announces successful closure of $750 million residential mortgage-backed securities transaction appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2024/04/thinktank-announces-successful-closure-of-750-million-residential-mortgage-backed-securities-transaction/feed/ 0 Rate hike will decimate homebuyer and investor activity https://www.adviservoice.com.au/2023/11/rate-hike-will-decimate-homebuyer-and-investor-activity/ https://www.adviservoice.com.au/2023/11/rate-hike-will-decimate-homebuyer-and-investor-activity/#respond Tue, 07 Nov 2023 20:45:18 +0000 https://www.adviservoice.com.au/?p=92294

Louisa Sanghera

Yesterday’s cash rate decision will decimate homebuyer and investor activity, which has already fallen off a cliff since May last year, according to one of the nation’s most awarded mortgage brokers. The Reserve Bank of Australia decided to increase the cash rate by 25 basis points to 4.35 per cent at its meeting this afternoon.

Zippy Financial Director and Principal Broker Louisa Sanghera said the decision did not make sense given the steadily decreasing inflation over the past nine months as well as the significant and prolonged fall in homebuyer and investor activity over the same period.

According to the ABS Lending Indicators for September, the number of new loans for owner occupiers have fallen 28 per cent since May last year, while the number of new investor loans have fallen 25 per cent over the same period.

“Many of the new or existing borrowers we speak with have absolutely no chance of refinancing, with a lot of them technically not servicing their current debt levels,” she said.

“Over the past two months in particular, borrowers are becoming more desperate with many homeowners turning to interest-only repayments as the only way they can continue to hold on to their homes. “Unfortunately, their current lenders don’t necessarily offer interest only to owner occupiers – and they can’t refinance – so they may need to sell or opt for a repayment pause to keep the roof over their heads.”

Ms Sanghera called on all levels of government to start showing some fiscal constraint rather than expecting everyday borrowers to shoulder the inflation burden.

“Fiscal restraint can help fight inflation rather than just increasing interest rates in a record short timeframe,” she said.

“The wealthy with no mortgages are currently not being affected by rates rises – apart from seeing their term deposits growth in value significantly – and they are the ones with high discretionary spending, whilst your mum and dads out there working hard are the ones who are suffering financially.”

Ms Sanghera said borrowers appeared to already be in survival mode and have cut back on expenses and essentials as much as possible. “Investors are also doing it very tough – especially those whose five-year interest-only mortgage terms might be expiring,” Ms Sanghera said. “Again, most can’t refinance nor can they afford principal and interest repayments, and many lenders no longer offer the option of rolling over in to another interest-only term, which leaves investors with very little option but to sell, which will put further pressure on the rental crisis.”

Ms Sanghera said the underwhelming volume of new homebuyer and investor loans would ultimately impact the rental market and push rents upwards. “If policymakers are serious about helping to alleviate the rental crisis, then they need to allow more lenders to offer rollover interest-only loans to existing investor borrowers so they can continue to provide rental housing to tenants around the nation,” she said. “Without it, more investment properties will be sold off at a time when new investor activity is also well below par.”

]]>

Louisa Sanghera

Yesterday’s cash rate decision will decimate homebuyer and investor activity, which has already fallen off a cliff since May last year, according to one of the nation’s most awarded mortgage brokers. The Reserve Bank of Australia decided to increase the cash rate by 25 basis points to 4.35 per cent at its meeting this afternoon.

Zippy Financial Director and Principal Broker Louisa Sanghera said the decision did not make sense given the steadily decreasing inflation over the past nine months as well as the significant and prolonged fall in homebuyer and investor activity over the same period.

According to the ABS Lending Indicators for September, the number of new loans for owner occupiers have fallen 28 per cent since May last year, while the number of new investor loans have fallen 25 per cent over the same period.

“Many of the new or existing borrowers we speak with have absolutely no chance of refinancing, with a lot of them technically not servicing their current debt levels,” she said.

“Over the past two months in particular, borrowers are becoming more desperate with many homeowners turning to interest-only repayments as the only way they can continue to hold on to their homes. “Unfortunately, their current lenders don’t necessarily offer interest only to owner occupiers – and they can’t refinance – so they may need to sell or opt for a repayment pause to keep the roof over their heads.”

Ms Sanghera called on all levels of government to start showing some fiscal constraint rather than expecting everyday borrowers to shoulder the inflation burden.

“Fiscal restraint can help fight inflation rather than just increasing interest rates in a record short timeframe,” she said.

“The wealthy with no mortgages are currently not being affected by rates rises – apart from seeing their term deposits growth in value significantly – and they are the ones with high discretionary spending, whilst your mum and dads out there working hard are the ones who are suffering financially.”

Ms Sanghera said borrowers appeared to already be in survival mode and have cut back on expenses and essentials as much as possible. “Investors are also doing it very tough – especially those whose five-year interest-only mortgage terms might be expiring,” Ms Sanghera said. “Again, most can’t refinance nor can they afford principal and interest repayments, and many lenders no longer offer the option of rolling over in to another interest-only term, which leaves investors with very little option but to sell, which will put further pressure on the rental crisis.”

Ms Sanghera said the underwhelming volume of new homebuyer and investor loans would ultimately impact the rental market and push rents upwards. “If policymakers are serious about helping to alleviate the rental crisis, then they need to allow more lenders to offer rollover interest-only loans to existing investor borrowers so they can continue to provide rental housing to tenants around the nation,” she said. “Without it, more investment properties will be sold off at a time when new investor activity is also well below par.”

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