Latest news with #APRA
Yahoo
19 hours ago
- Business
- Yahoo
Bank removes ‘roadblock' for homebuyers
National Australia Bank has become the latest lender to ignore some Higher Education Loan Program debt when assessing new home loans. From July 31, NAB says if someone owes $20,000 or less in student debt, it won't affect how much they can borrow should they take out a new loan with the big four bank. This will help lift the borrowing capacity of a potential borrower, as banks consider income, liabilities and outstandings when calculating how much they will give a potential borrower. NAB executive for home ownership Matt Dawson said the change would make a real difference for first-home buyers especially. 'For too long HELP debt has been a roadblock for many Australians looking to buy a home,' Mr Dawson said. 'NAB was pleased to advocate for this change last year which will allow more people to turn their homeownership dreams into reality, faster.' The NAB move is in line with the Commonwealth Bank, which in April said it would exclude HELP debt from home loan serviceability calculations on the basis the applicant could pay off their debt in the next 12 months. CBA also said it was piloting plans for those who could pay off HELP loans over the next one to five years. In February, student debt came into the spotlight when Treasurer Jim Chalmers told the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority (APRA) to update their guidance on how banks should treat student debts. In June, APRA said the changes would come into effect from September 30 2025. While NAB welcomed the move by the regulator to increase buying capacity for homebuyers by clarifying the treatment of HELP debt, Mr Dawson said housing supply remained the most significant challenge. 'It is critical to address both demand and supply-side measures together to help more Australians buy a home. There's no simple fix, solving Australia's housing challenges will take collaboration across the board.' NAB's move comes after the Albanese government announced changes to HELP debt on Wednesday. In its first Bill since returning to office, the government plans to slash 20 per cent off three million graduates' HELP debt. This is the equivalent of $16bn in total relief, according to the government. The move targets HELP debt, VET loans and apprenticeship loans. Calculations released by the government show $5520 would be wiped off the average HELP debt of $27,600 if the legislation passes. The changes would also raise the minimum threshold for student loans to be repaid from $54,000 to $67,000.
Perth Now
19 hours ago
- Business
- Perth Now
Bank removes ‘roadblock' for homebuyers
National Australia Bank has become the latest lender to ignore some Higher Education Loan Program debt when assessing new home loans. From July 31, NAB says if someone owes $20,000 or less in student debt, it won't affect how much they can borrow should they take out a new loan with the big four bank. This will help lift the borrowing capacity of a potential borrower, as banks consider income, liabilities and outstandings when calculating how much they will give a potential borrower. Major banks are beginning to exclude student debt in their serviceability criteria. NewsWire / Nicholas Eagar Credit: NewsWire NAB executive for home ownership Matt Dawson said the change would make a real difference for first-home buyers especially. 'For too long HELP debt has been a roadblock for many Australians looking to buy a home,' Mr Dawson said. 'NAB was pleased to advocate for this change last year which will allow more people to turn their homeownership dreams into reality, faster.' The NAB move is in line with the Commonwealth Bank, which in April said it would exclude HELP debt from home loan serviceability calculations on the basis the applicant could pay off their debt in the next 12 months. CBA also said it was piloting plans for those who could pay off HELP loans over the next one to five years. In February, student debt came into the spotlight when Treasurer Jim Chalmers told the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority (APRA) to update their guidance on how banks should treat student debts. NAB changes to HELP serviceability will start on July 31. NewsWire / Gaye Gerard Credit: News Corp Australia In June, APRA said the changes would come into effect from September 30 2025. While NAB welcomed the move by the regulator to increase buying capacity for homebuyers by clarifying the treatment of HELP debt, Mr Dawson said housing supply remained the most significant challenge. 'It is critical to address both demand and supply-side measures together to help more Australians buy a home. There's no simple fix, solving Australia's housing challenges will take collaboration across the board.' NAB's move comes after the Albanese government announced changes to HELP debt on Wednesday. In its first Bill since returning to office, the government plans to slash 20 per cent off three million graduates' HELP debt. This is the equivalent of $16bn in total relief, according to the government. The move targets HELP debt, VET loans and apprenticeship loans. Calculations released by the government show $5520 would be wiped off the average HELP debt of $27,600 if the legislation passes. The changes would also raise the minimum threshold for student loans to be repaid from $54,000 to $67,000.
News.com.au
20 hours ago
- Business
- News.com.au
NAB removes HECS debt hurdle for mortgage seekers
National Australia Bank has become the latest lender to ignore some Higher Education Loan Program debt when assessing new home loans. From July 31, NAB says if someone owes $20,000 or less in student debt, it won't affect how much they can borrow should they take out a new loan with the big four bank. This will help lift the borrowing capacity of a potential borrower, as banks consider income, liabilities and outstandings when calculating how much they will give a potential borrower. NAB executive for home ownership Matt Dawson said the change would make a real difference for first-home buyers especially. 'For too long HELP debt has been a roadblock for many Australians looking to buy a home,' Mr Dawson said. 'NAB was pleased to advocate for this change last year which will allow more people to turn their homeownership dreams into reality, faster.' The NAB move is in line with the Commonwealth Bank, which in April said it would exclude HELP debt from home loan serviceability calculations on the basis the applicant could pay off their debt in the next 12 months. CBA also said it was piloting plans for those who could pay off HELP loans over the next one to five years. In February, student debt came into the spotlight when Treasurer Jim Chalmers told the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority (APRA) to update their guidance on how banks should treat student debts. In June, APRA said the changes would come into effect from September 30 2025. While NAB welcomed the move by the regulator to increase buying capacity for homebuyers by clarifying the treatment of HELP debt, Mr Dawson said housing supply remained the most significant challenge. 'It is critical to address both demand and supply-side measures together to help more Australians buy a home. There's no simple fix, solving Australia's housing challenges will take collaboration across the board.' NAB's move comes after the Albanese government announced changes to HELP debt on Wednesday. In its first Bill since returning to office, the government plans to slash 20 per cent off three million graduates' HELP debt. This is the equivalent of $16bn in total relief, according to the government. The move targets HELP debt, VET loans and apprenticeship loans. Calculations released by the government show $5520 would be wiped off the average HELP debt of $27,600 if the legislation passes. The changes would also raise the minimum threshold for student loans to be repaid from $54,000 to $67,000.
Yahoo
2 days ago
- Business
- Yahoo
Insignia accepts buyout offer from US investors
Insignia Financial, one of Australia's wealth management firms, is about to undergo a significant change in ownership following a planned takeover by US-based CC Capital and One Investment Management (OneIM). Under the provisions of a freshly signed Scheme Implementation Deed (SID), the two private investment groups would buy 100% of Insignia for A$4.80 per share in cash, valuing the company at around A$3.9bn (US$2.5bn). The offer provides a strong 56.9% premium over Insignia's final undisturbed share price of A$3.06 on December 11, 2024. Subject to judicial and regulatory approvals, the deal will be carried out through a scheme of arrangement and is anticipated to be put to a vote by shareholders in the first half of 2026. These consist of approvals from Insignia shareholders, the Australian Prudential Regulation Authority (APRA), and the Foreign Investment Review Board (FIRB). Insignia, which manages and advises on over A$330bn in assets, is regarded as a prime target for growth-oriented investors aiming to tap into Australia's A$4.1tn superannuation system. Chinh Chu, Senior Managing Director of CC Capital stated: "We believe that Australia's superannuation system is world-class in addressing the structural challenge of aging populations saving for retirement. Insignia's scale, trusted brands, and deep relationships across the A$4.1tn (US$2.7tn) superannuation market1 make it a compelling long-term platform for growth. We recognise the high duty of care required to steward a business with Insignia's rich heritage and connection to the retirement and superannuation system, and we are confident that our investment acumen and long-term approach will position us to improve member outcomes and further enhance the operational trajectory of the business." OneIM's CEO and co-founder Rajeev Misra added: "We are excited to partner with Insignia's management team to help craft the company's next chapter of continued growth and unmatched member service. We believe Insignia will benefit from OneIM's approach to creating long-term value for all stakeholders as we help combine Insignia's history of excellence with technological and investing expertise." Scott Hartley, CEO of Insignia Financial, shared: "Subject to shareholder and regulatory approvals, the CC Capital and OneIM offer would deliver attractive value to our shareholders, while providing the resources and global perspective needed to accelerate our strategic agenda for members, customers and advisers. I look forward to working with the CC Capital and OneIM teams to continue our focus on creating best-in-class service and outcomes for our members."
Daily Mail
3 days ago
- Business
- Daily Mail
Sacrifice Aussies may need to make if they want to keep using cash
Australians may have to go back to paying fees again for using rival bank ATMs like they did a decade ago if they want to keep having access to cash, a finance expert says. The Big Four banks in 2017 agreed to scrap those $2 fees for customers who used the automatic teller machines of a competitor. While it was regarded as good news, that policy is threatening the future of cash in Australia with very few consumers now using banknotes to pay for everyday goods and services. Australia's key cash-in-transit company Armaguard, owned by billionaire transport magnate Lindsay Fox's family, needs $50million a year in handouts to survive and now federal regulators are proposing Australia have a new minister for cash. In just seven years, the number of ATMs have more than halved, plunging from 13,814 in June 2017 to just 5,476 in June last year, Australian Prudential Regulation Authority data showed. The Commonwealth Bank , Westpac , NAB and ANZ used the abolition of rival ATM fees to take away those cash dispensing machines and squeeze Australia's cash-in-transit companies during contractual negotiations. This has made distributing cash unprofitable with the Big Four banks, supermarket giant Woolworths and retail group Wesfarmers - the owner of hardware chain Bunnings, Kmart and Officeworks - last week announcing they would provide a $25.5million lifeline to Armaguard from July to December. Jason Bryce, the founder of Cash Is Welcome, said Armaguard wouldn't need to be subsidized by the banks and the supermarkets if those old fees for using rival ATMs still existed - and generated $500 million a year in revenue. 'I think it was a bad, short-sighted move - I don't want to prescribe the answers - but the problems date from that decision,' he told Daily Mail Australia. 'There's no doubt the $2 ATM fee for customers of other banks kept the cash distribution system paid for and viable in Australia - since 2017, since that decision, the cash industry has contracted and been under pressure. 'There needs to be some kind of structural change to provide support, go forward, to cover the $50 million-odd per year that Armaguard is now getting. 'There should be no need for $50million a year - the problem has been created by the banks and the supermarkets.' Mr Bryce said the abolition of those rival ATM fees had led to the big banks putting extra pressure cash deliverers, to the point that Spanish group Prosegur in 2023 merged with Armaguard to survive. 'The two big companies have merged into one and that one company is on the verge of bankruptcy,' he said. Peter Fox, the executive chairman of Armaguard, told The Australian Financial Review its 'shortfall in revenue' was 'caused by the four major banks and two retailers which slashed their margins to Armaguard in a period of cut-throat competition'. Commonwealth Bank chief executive Matt Comyn last year admitted the banks were 'very, very aggressive' towards Armaguard. 'The banks drove Armaguard to the brink of bankruptcy,' Mr Bryce said. 'Matt Comyn says the banks underpaid Armaguard for cash-in-transit.' 'It's really up to the banks to pay more. 'So banks now don't really have much of a leg to stand on when they complain about handing over $25million for six months.' The disappearance of major bank ATMs saw the appearance of third-party ATMs that charge $3 fees for use. 'There's less bank-owned ATMs and there's more third-party ATMs that charge $3 or so,' Mr Bryce said. The Council of Financial Regulators - which includes the RBA - and the Australian Competition and Consumer Commission is proposing a new federal minister in charge of cash distribution who would have oversight over a registered entity that would 'provide critical cash services to a significant part of the market'. 'Despite the rise of digital payments, cash remains vital for many Australians, particularly in regional and remote communities,' it said in a consultation paper. 'Cash supports secure, inclusive, and resilient transactions for those who prefer or rely on it.' The federal government last year announced a cash mandate would be coming into force on January 1, 2026 requiring businesses to offer customers a cash option.
