News

The reason why Bank debt is getting more expensive, whilst leverage is reducing, and covenants are increasing!

The underlying reason why the banks are getting more and more expensive in providing the same level of debt is clearly evidenced in the below chart. The increased capital ratios are being driven by the…

BPFM selects eFront Invest to provide superior investor service

Paris, October 1, 2019 – eFront, the world’s leading technology solution for alternative investment management, announced today that Broad Peak Funds Management (BPFM), has selected eFront Invest to manage its senior debt lending, funds administration, and investor deal flow processes. After an exhaustive search…

AFR Article – Non-bank lenders cut risk as market share grows

Research undertaken by Ashurst has confirmed that non-bank lenders are reducing their LVRs, which have fallen from 72% in 2017 to 65%.Ken Nguyen of Ashurst states, “What we’re seeing in the last 18 to 24 months is lot of the non-banks move in a much more institutional direction, tying themselves to institutional money from…

APRA Guideline Confirmed

APRA Guideline ConfirmedFurther to the APRA Media release on 21 May 2019, it has now been confirmed that its “guidance on residential mortgage lending will no longer expect them [ADIs] to assess home loan applications using a minimum interest rate of at least 7 per cent… Instead, ADIs will be able to review and set their own minimum interest rate floor for use in serviceability assessments and utilised…

RBA cuts Cash Rate by 25bps to record low of 1.25%

The June policy meeting by the RBA, saw Governor Lowe cut rates to a record low of 1.25%, a cut of 25bps.The last movement in the cash rate was August 2016. According to the RBA, the board made the decision “to support employment growth and provide greater confidence that inflation …

APRA proposes amending guidance on mortgage lending

The Australian Prudential Regulatory Authority (APRA) has announced that the 7% sensitised interest rate for new home loans is under review. APRA introduced the serviceability requirement for Authorised Deposit Taking Institutions (ADIs) in December 2014 requiring that all new home loans…

Is now a good time to invest?

With the negative media surrounding property prices, we analyse if now is a good time to invest in first mortgage real estate funds. Moody’s Analytics expects property prices to fall by 11.4% in Melbourne and 9.3% in Sydney throughout 2019. However, a slow recovery is expected in 2020, further improving in 2021. The current fall…

JLL Releases Brisbane Housing Market Report

JLL has released their Brisbane Housing Market report which illustrates that the Brisbane market will continue to stabilise throughout 2019 and into 2020. Supply has fallen subdued and is expected to remain so for several years. Apartment supply has peaked with detached and semi-detached dwellings…

JLL Releases Sydney Housing Market Report

JLL has released their Sydney Housing Market report which details that the Sydney market will continue to face headwinds in the near term. Supply is forecast to remain well below that of recent years with a sharp decline in apartment approvals of nearly 50% and a decline in house and semi-detached…

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