Hi did anyone read the comments made by mark Bouris regarding the 'networking' for want of a better term, of credit unions in australia to 'bring competetion back to the finance industry'.
There was also another article in today's Sunday telegraph about ING creating a loan product that is basically interest only for the life of the loan to allow people to be able to afford to buy a home.
What do others think?
Interest only for the life of the loan?
You can already get this on a line of credit… Most interest only loans allow you to roll into another interest only term when the interest only period is up… What’s the diff?
Sorry to say it but there won’t be real competition to the banks until long term wholesale funding costs come down, until then we will continue to see these “new” creative products by smaller lenders; that are simply a different way of decribing what already exisits… With a higher rate of course…
Just shows how desparite some 2nd tier lenders are at the moment.
Folks how much innovation is there really in financial markets eg especially mortgages. Interested to see 3 truely original ideas in home loans for the past 5 years?
Hi Spiro
Compared to other countries (and to the old days here) I think Australia loans are very innovative. 100% offset accounts, LOCs, LOC + capitalising interest, 30 year terms, etc
Rememebr the old days, back to Jan Somers books even not that far back, there was only PI loans and maybe IO loans if you were lucky – and that was it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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