Mortgage Ezy steps in for foreign buyers

Mortgage Ezy is the latest to lend to foreign buyers, with a $500 million offer

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Australian Financial Review

Australian independent non-bank lender Mortgage Ezy is the latest to join the growing list of alternative financiers providing funding to foreign property buyers.

The group has a $500 million commitment from a warehouse facility of an international bank to provide loans using a securitised model.

“It will be the first of its kind in that the whole pool will be only for non-resident borrowers and there is strong evidence to suggest that a bond such as this will have strong investor interest and will be able to be securitised,” Mortgage Ezy founder Peter James said.

“However, even if the bond is not taken to market when we reach that limit, we will have up to an additional $3 billion to lend out before we reach ultimate capacity and have to securitise.”

About $100 million in loans have already been approved since February, representing only the “tip of the foreign buyer lending iceberg”, Mr James said. He estimated the size of the foreign lending market in Australia to be about $1.5 billion a month, especially after the big-four banks departed from foreign lending.

Mr James said $500 million would be exhausted in the next three months given present appetite of the market.

Mortgage Ezy has strict lending criteria – borrowers must not have purchased more than 10 per cent of a building, have enough funds in the bank locally or overseas and the right visa class.

Loans are capped at a loan to value ratio of 75 per cent, at interest rates of 4.79 to 7.95 per cent, depending on each application. The higher the LVR the higher the interest rate but a 75 per cent LVR is maximum.

Only properties in metro capital city areas would qualify.

Ensuring the sales entered into by foreign buyers are settled is paramount to ensuring the market does not “slump”, Mr James says.

The Chinese capital restriction was the only thing stopping them from settling their acquisitions, he said.

“If foreign buyers left, they may cause a slump in property prices and confidence in the market overall. In addition our reputation in Asia will be severely damaged,” Mr James said.

“Chinese buyers are generally very wealthy individuals but most of them are self employed … and even if they can’t get money out of China, their family and network of friends will rally to bring the money together. You will need a catastrophe like values to halve for them to walk out of a sale.”

WRITTEN BY

by Su-Lin Tan

Australian Financial Review

Number 1 Mortgage Manager 2017

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Mortgage Ezy is off to another flying start to the year after taking out Best Non-Bank Lender in the Australian Lending Awards for a second year in a row to now being ranked number 1 Mortgage Manager 2017 as voted by the huge representation of Broker  from around the country in TheAdviser Third Party Lending Report.  Like always Mortgage Ezy was up against some stiff competition with the likes of Australian First Mortgage, Better Mortgage Management, Better Choice Home Loans, Future Financial and Loan Avenue but came out the clear winner.

TheAdvisers Third Party Lending Report is the industry leading report into broker’s perceptions and opinions of the non-bank lending sector and individual lenders within that sector. The Third Party Lending Report selected 8 of the highest ranking factors to shape the research survey. In addition to this brokers were asked a standard NPS question including:

  • Product pricing and policy
  • Product range
  • Turnaround times
  • Overall quality of BDMs (access to BDMs, BDM proactivity and effectiveness in solving any problems).
  • Credit assessment staff – access to and ease in dealing/communicating with credit assessment staff.
  • Client support – effectiveness in servicing your clients post-settlement.
  • Training and education – provision of training, whether product-specific, compliance or other.
  • Commission remuneration and structure – simplicity of structure to qualify for the maximum available remuneration and overall amount of commission paid.

“We would like to thank all the brokers who participated in the national survey and look forward to continuing to build stronger partnerships with all of our brokers with the determination to offer the very best products and service unmatched in the market place”. – CEO Peter James

Mortgage Ezy claims their place at the elite lenders table, winning Australia’s best non-bank for the second year in a row!

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Mortgage Ezy, formally known as the industry underdog,  has now secured their right as an industry top dog, on par with the big boys taking home the Best Non-Bank Award at the Australian Lending Awards last night. Winning  for the second year in a row Mortgage Ezy was up against Stellar Household names La Trobe Financial and the global Pepper Group. Mortgage Ezy is now officially Australia’s top Non-bank lender for 2017.

The Australian Lending Awards recognise the nation’s leading lenders across retail, wholesale and third-party segments. By surveying 8,000 consumers and over 500 brokers, they represent Australia’s most robust assessment of which lenders truly excel across all aspects of their operations.

RFi Group’s CEO Charles Green said; “In what is the most highly contested event in the Australian lending industry annually, we are delighted to congratulate the winners at this fantastic event tonight. These awards directly reflect the skills and achievements of the banking and finance professionals who operate in the highly competitive, dynamic and forever evolving lending industry. It is always a tight race, with high stakes and the winning finalists can be enormously proud of their achievements in coming out on top this year.”

In an heart felt acceptance speech General Manager Operations, Joanna James said “I have to thank all the people over the many years that have believed in us.  We also know that in accepting this award there is a great responsibility for us to provide a very  important counter point in this market, to stand up for and speak up for what we believe in, to fight for independence and to promote diversity. I have to tell all that I’m so privileged to work with an amazing group of people, that every time we ask them to give more of themselves, they do, because they care about what they do, and they care about the people that they do it for.

In 2016 Mortgage Ezy increased its broker numbers by more than 42% on the previous year and a 124% increase in its lending volumes. When asked how this was achieved CEO Peter James explained:

“We have been able to achieve these results by building genuine partnerships with our brokers offering them more than just lip service with choices unmatched in the market place, along with our traditional loud and proud marketing campaigns, lightning speed turnaround times and a determination to offer the very best service to our brokers and customers.”