Nobel Finance Sydney – Money Matters Newsfeed

Leading industry analysts have predicted third party brokers could claim up to 60% of the mortgage origination market within five years.

Speaking at the LIXI 2010 conference in Sydney, Fujitsu Consulting general manager Martin North, Mortgage Industry Analyst Tony Crossley and NextGen.Net sales director Michael Murphy all predicted imminent improvements in broker market power.

The JP Morgan/Fujitsu Australian Mortgage Industry Report report released in September measured broker market share at just under 40%. However, North thinks the next five years will see major bank market share dominance sink, while brokers will rise.

“I think we will see 60 per cent [of housing loans] funded by the majors, so that’s 40 per cent from elsewhere,” North said. “I think that mortgage brokers will have well north of 40 per cent of the market – it could be close to 50 per cent – because if you look at the consumer research, they are doing the right thing by consumers, and with the new regulatory environment in place that will only improve.”

Murphy from NextGen.Net agreed major banks would shrink to 60% of the market, and that third party market share could reach 60%.

“Any shift in funding away from the four majors would almost automatically imply through brokers or an alliance channel – there’s a fairly strict correlation between those two – so if you accept the premise [that major banks will fund only 60% of the market within five years] it wouldn’t surprise me if mortgage brokers increased up to 60%.

“I think there is every chance, because I do think over time there will be a levelling out on the revenue and the cost side of that relationship, so it will become a more palatable and more supported relationship over time – I really believe that.”

Crossley was more muted in his predictions. “It’s been essentially flat for some significant period, and it will require a different market for that to take off to the levels we’ve seen overseas, and I’m not sure it will get that far.”

However, he acknowledged the role brokers will play in increasing market competition with the four majors. “A lot of the rhetoric underestimates the impact of the broker – they do actually promote competition from their little office,” he said. ”They will draw out price comparisons and product comparisons, so it’s actually a very effective way of generating a market.”

Very few college students have any established credit when starting out in higher education. This does not mean there are no loans or grants available. You have several choices of no credit check student loans to choose from. There are also grants and scholarships available both from the federal government and the respective colleges and universities.

Perkins Loans

One of the most popular no credit check student loans is the Perkins Loan. This is a combination of a government and college based loan that is approved through the college or university. The student receives up to $4,000 from this loan. It is awarded to those that show they have the greatest need for the educational funds. Once the student graduates repayment does not begin for nine months. This gives the graduate time to find a job or look consolidating and refinancing educational debt. Because this loan is granted on a first come first serve basis it is best to apply early.

Stafford Loans

The Stafford Loan is another federally subsidized loan available based on financial need. The key feature of this no credit check student loans is that the government pays the interest until graduation. There is also an unsubsidized Stafford Loan available to those students who are not as desperate for funds. In this case the student is responsible for all the interest and loan payments start immediately after graduation. These loans do not award the borrower a large sum like the Perkins Loans do and usually additional funding is required.

Pell Grant

This is one of the best known no credit check student loans. Millions of students a year receive funds from this grant. Technically this is a grant and not a loan so there is no credit check. A student qualifies based on their income level. As long as the student remains in school there is no repayment on this grant.

Along with the aforementioned loans and grant there are several other loans and grants available at the state level. Of course colleges and universities also have loans and scholarships available to their students. There are also federal and state loans for specific fields of study such as nurses and teachers.

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Student Loan Consolidation like refinancing a mortgage is a convenient means of repayment. With this, you can merge your student loans into one big loan, thus, decreasing your periodical payment.

In consolidating student loans, very low rate of interest applies along with a long repayment period. The monthly payments are cheaper as compared to the original student’s loan. Before Consolidating student Loans, take into consideration the three factors: Interest Rate, Credit History and Online Calculators. Let’s tackle them one by one.

First is Interest Rate. Before you apply for a loan consolidation, it is best that you calculate and evaluate your monthly payments in addition to the overall interest that is to be paid and the cost of the total transaction of both the loans. This can give the student or the borrower the actual setup of how much he will pay as soon as he merged his debts.

Second is Credit History. Keeping a good credit history is extremely important since lenders refer to this to check the borrower’s credibility to make payments. In a credit history, it shows the complete record of an individual’s or companies’ past borrowing and repaying behavior. Almost all banks would willingly provide added terms for students with a good credit history. Simply put – those who keep a good credit history gets favourable bank services like good rates and terms. Manage your money wisely and try to clear off your debts.

Third are online calculators. You may see these everywhere on the web. Many lending organizations and mortgage companies provide periodic payment calculators on their websites. Utilizing these online calculators allow the students to understand all possible option for loans consolidation, before making an application.

As a responsible borrower you will extend all means in order to get good rates and avail the best terms the consolidating bank will offer. I believe every student loan consolidation share the same end goal, which is to clear off debt and maintain a good credit standing with lenders.

Best Online Consolidation Companies

If you’re looking online, these companies are highly recommended by many since they can offer you excellent rates and save you money by consolidating your student loans: Loan Approval Direct, Next Student and DebtConsolidation.com.

Choosing the Best Student Loan Consolidation Companies

When it comes to choosing the best student loan consolidation companies, try not to be so impulsive. Look at the three factors mentioned above: interest rate, credit history and online calculators. Ask yourself these questions. Will this bank offer me convenient terms, once I agreed to consolidate my debts with them? Are these lending companies offering you other benefits? Consider those benefits as well when you are deciding on these financial institutions. Make sure that if you sign up for something, you understand perfectly the terms and conditions that goes along with it. I guarantee that there will be lending firms that will ask you to sign the contract as soon as they found you eligible. But before you do, make sure that you’re able to weigh all possible offers. Do compare all loan consolidation rates and terms. If you’re unsure of the contract, don’t sign it. You may end up regretting your decision later. Remember that you’re consolidating your loans for you to solve your financial problems and not to fall into a debt trap all over again!

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