Church Fund – UAOC http://uaoc.net/ Tue, 21 Sep 2021 19:46:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://uaoc.net/wp-content/uploads/2021/06/icon-1-150x150.png Church Fund – UAOC http://uaoc.net/ 32 32 Credit defaults on consumer durables and two-wheelers are on the rise http://uaoc.net/credit-defaults-on-consumer-durables-and-two-wheelers-are-on-the-rise/ http://uaoc.net/credit-defaults-on-consumer-durables-and-two-wheelers-are-on-the-rise/#respond Tue, 21 Sep 2021 11:24:20 +0000 http://uaoc.net/credit-defaults-on-consumer-durables-and-two-wheelers-are-on-the-rise/ Delinquency on durable consumer loans and two-wheeler loans has increased since the outbreak of the Covid-19 pandemic in March, according to a report by the credit bureau CRIF High Mark. Durable consumer loan defaults saw a sharp increase of around 68% for late payments of 30 to 180 days between March 2020 and March 2021. […]]]>

Delinquency on durable consumer loans and two-wheeler loans has increased since the outbreak of the Covid-19 pandemic in March, according to a report by the credit bureau CRIF High Mark.

Durable consumer loan defaults saw a sharp increase of around 68% for late payments of 30 to 180 days between March 2020 and March 2021. Durable consumer loans are a financing option for household items , such as refrigerator, television, washing machine, etc.

The two-wheeler loan default rate increased at a relatively slower rate in the 30-90 day late payment section. However, a longer term of over 90 days saw a 69% increase in defaults for the same period. The portfolio at risk (PAR) over a period of 91 to 180 days has increased from 2.3% in March 2020 to 3.9% in March 2021, according to the report titled ‘How India Lends 2021’.

Unlike these unsecured loans, delinquency premium home loans (loans on ??75 lakh), midrange (between ??35 lakh and ??75 lakh) and affordable (below ??35 lakh) segments saw no significant change during the same period.

Durable consumer loans and two-wheelers are low-cost loans ranging from ??5,000 to ??1 lakh and are dominated by non-bank financial corporations (NBFCs) in value and volume for the past three years. Low cost loans are generally targeted by NBFCs on people with high credit risk.

The deterioration of defaults in the consumer durables and two-wheeler segments, while the quality of defaults on secured mortgage loans has remained unchanged, shows that loans to high-risk people will always be more likely. to default in the event of a disruption in income due to an economic downturn or recession.

“The credit landscape in India is constantly changing and has seen a shift in consumer preferences, a shift in demand towards smaller loans, ease of access to credit, increased use of digital platforms and entry. of non-traditional lenders in the ecosystem to name a few, ”said Navin Chandani MD and CEO of CRIF High Mark.

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CORRECT and REPLACE Asia Capital Real Estate (ACRE) grants 11 loans totaling $ 358 million for multi-family properties in the United States http://uaoc.net/correct-and-replace-asia-capital-real-estate-acre-grants-11-loans-totaling-358-million-for-multi-family-properties-in-the-united-states/ http://uaoc.net/correct-and-replace-asia-capital-real-estate-acre-grants-11-loans-totaling-358-million-for-multi-family-properties-in-the-united-states/#respond Tue, 21 Sep 2021 02:18:00 +0000 http://uaoc.net/correct-and-replace-asia-capital-real-estate-acre-grants-11-loans-totaling-358-million-for-multi-family-properties-in-the-united-states/ NEW YORK–(COMMERCIAL THREAD) – Please replace version with the following corrected version due to multiple revisions. The updated version reads as follows: ASIA CAPITAL REAL ESTATE (ACRE) PROVIDES 11 LOANS TOTAL $ 358 MILLION FOR AMERICAN MULTI-FAMILY PROPERTIES Bridge loans will support projects in growing markets like Chicago, Dallas and Charleston Asia Capital Real Estate […]]]>

NEW YORK–(COMMERCIAL THREAD) – Please replace version with the following corrected version due to multiple revisions.

The updated version reads as follows:

ASIA CAPITAL REAL ESTATE (ACRE) PROVIDES 11 LOANS TOTAL $ 358 MILLION FOR AMERICAN MULTI-FAMILY PROPERTIES

Bridge loans will support projects in growing markets like Chicago, Dallas and Charleston

Asia Capital Real Estate (ACRE), a global private equity and real estate lending firm, today announced that it has entered into 11 bridge loans since August 1, totaling approximately $ 358 million to support multi-family buildings in the markets strong growth in the United States

Issued through ACRE’s “ACRE Credit I” debt fund, the loans will support the acquisition, rental, redevelopment and recapitalization of multi-family assets in markets such as Chicago, Illinois; Dallas, Texas; Gainesville, Florida; and Cincinnati, Ohio. To date, the Fund has made over $ 1 billion in whole loans in 25 transactions.

“August was a record month for our ACRE Credit fund, and that momentum continued into September as multi-family borrowers across the country continue to recognize our superior execution and access to reliable capital flows in an environment of more and more competitive ” said ACRE Managing Partner Daniel Jacobs. “We are proud to partner with these companies to support the growth of their developments in many of the fastest growing rental markets in the country. We look forward to building on the incredible success of the fund and continuing to seek out new beneficial funding opportunities in the weeks and months to come.

The loans issued via ACRE Credit since August 1 are as follows:

  • $ 53.6 million for Tessa at Katy, a 312 unit apartment development in Katy, Texas

  • $ 45.8 million for City Place, a 220-unit multi-family community in Gainesville, Florida

  • $ 42.4 million for Lakewood Greens, a 252-unit property in Dallas, Texas

  • $ 40.8 million for Mill House, a 232-unit multi-family community in Fort Mill, South Carolina

  • $ 35.0 million for Premier at Prestonwood, a 208-apartment building in Dallas, Texas

  • $ 25.0 million for Aspire at James Island, a 127-unit development in Charleston, South Carolina

  • $ 33.5 million for Helix Apartments, a 167-unit development in St. Louis Park, Minnesota

  • $ 26.3 million for Shoreline, a 167-unit multi-family community in Cleveland, Ohio

  • $ 25.4 million for Otis, a 92-unit development in Chicago, Illinois

  • $ 18.2 million for Rayette Lofts, an 89-unit community in St. Paul, Minnesota

  • $ 11.8 million for The Madison, a 116-unit development in Cincinnati, Ohio

“The multi-family market is booming in secondary markets across the country as they continue to attract both new residents and jobs,” Jacobs said. “Owners and developers of these domains increasingly need a knowledgeable and trusted partner to facilitate the success of their projects, and this recent spike in activity is a testament to our ability to meet their rapidly changing needs. . ”

ACRE recently announced the official closing of “ACRE Credit I” after raising a total of $ 328 million, which far exceeded its initial target of $ 300 million. Launched in the first quarter of 2020, the Fund has been well received by institutional investors focused on stability and upside potential in an uncertain economic climate.

ACRE Credit I provides senior mortgage bridging loans, mezzanine loans and preferred shares to top multi-family owner-operators secured by institutional grade real estate across the United States In a low yield environment, the Fund is intended to generate double-digit interest rates and target IRRs in the low to mid-teens. Baird has acted as financial advisor to many of the Fund’s most important engagements, including those of institutional investment managers Almanac Realty Investors and OPTrust. Almanac Realty Investors, the private real estate investment arm of Neuberger Berman, committed $ 320 million earlier this year to various funds managed by ACRE. A large percentage of Almanac’s commitment went to ACRE Credit I, a testament to ACRE’s lending platform and its proven track record.

About Asia Capital Real Estate (ACRE)

Founded in 2011, Asia Capital Real Estate (ACRE) is a global real estate private equity firm that manages institutional investor and family office capital through a series of private equity and debt funds and currently manages over 1 , $ 8 billion in assets under management. Since its inception, ACRE’s acquisition, development and lending efforts have focused on 22,000 units across 78 properties in 33 cities. ACRE’s strategies focus on direct investments in real estate and credit and are focused on high growth markets in the United States, with additional properties currently under development in South East Asia and the United Kingdom . ACRE manages a global portfolio of multi-family housing with offices in Atlanta, New York and Singapore.

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FREED ABS Trust Offers $ 230 Million ABS on FreedomPlus Loans http://uaoc.net/freed-abs-trust-offers-230-million-abs-on-freedomplus-loans/ http://uaoc.net/freed-abs-trust-offers-230-million-abs-on-freedomplus-loans/#respond Mon, 20 Sep 2021 19:47:00 +0000 http://uaoc.net/freed-abs-trust-offers-230-million-abs-on-freedomplus-loans/ FREED ABS Trust 2021-3FP markets $ 230 million in asset-backed securities, under an arrangement secured by unsecured consumer loans from Freedom Financial Network, LLC, which operates through the intermediary of several entities. One of these entities is Freedom Debt Relief, which negotiates on behalf of consumers to settle consumer debts with creditors. On average, FDR […]]]>

FREED ABS Trust 2021-3FP markets $ 230 million in asset-backed securities, under an arrangement secured by unsecured consumer loans from Freedom Financial Network, LLC, which operates through the intermediary of several entities.

One of these entities is Freedom Debt Relief, which negotiates on behalf of consumers to settle consumer debts with creditors. On average, FDR reduces debt on behalf of its clients by 45%, according to details on DBRS Morningstar ratings.

The current transaction will only include loans from the FreedomPlus loan program, which Freedom Financial Asset Management, LLC (FFAM) markets to potential clients through partners and postal offerings, according to DBRS. FreedomPlus offers consumer loans to prime and subprime borrowers, which it calls F + loans.

Cross River Bank (CRB) and MetaBank National Association are behind the loans in the transaction, according to DBRS.

In many states, market operators such as FFAM are not allowed to issue loans, so they rely on banking partnerships to create the loans. These banks are allowed to issue loans and export legal usury limits from their own states to customers outside their states, following a Supreme Court ruling in 1980.

FREED ABS Trust 2021-3FP includes several forms of credit enhancement, including a reserve fund amounting to approximately 1% of the pool balance at the due date; plus an overcollateralisation of 15% of the pool balance at the deadline; and subordination.

DBRS considered several aspects of the underlying loans in the portfolio in making its preliminary rating decision. All loans issued by CRB and MetaBank charge rates within their usury limits of 30.0% and 36.0%, respectively, for New Jersey and South Dakota, respectively.

Additionally, the loans have a weighted average APR of 20.0%, DBRS said. The pool excludes loans to borrowers in states where active legislation challenges the export of state usury laws related to genuine lender issues. Loans to borrowers in Colorado, West Virginia and Maine are excluded from the pool, as are loans to borrowers from the United States Court of Appeals for Circuit 2, which includes New York, Connecticut and the United States. Vermont, are also excluded, due to active legislation.

FFAM also operates with a loan sale agreement that requires FFAM to repurchase any loan that has a breach of declaration and guarantee that materially affects the interests of the buyer, DBRS said.

DBRS plans to assign “AA” ratings to the $ 113.8 million Class A Notes and the $ 52.8 million Class B Notes, as well as an “A” rating to the $ 113.8 million Class A Notes. $ 26.4 million.

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It is a misconception that women entrepreneurs do not get SBA loans. So why aren’t more women applying? http://uaoc.net/it-is-a-misconception-that-women-entrepreneurs-do-not-get-sba-loans-so-why-arent-more-women-applying/ http://uaoc.net/it-is-a-misconception-that-women-entrepreneurs-do-not-get-sba-loans-so-why-arent-more-women-applying/#respond Sun, 19 Sep 2021 12:11:14 +0000 http://uaoc.net/it-is-a-misconception-that-women-entrepreneurs-do-not-get-sba-loans-so-why-arent-more-women-applying/ Studies by the US Small Business Administration show that women entrepreneurs are much less likely to apply for a small business loan through the SBA than men, although statistically speaking they are just as likely to be approved. According to a study by the Kauffman Foundation, female entrepreneurs rely more on personal and internal resources […]]]>

Studies by the US Small Business Administration show that women entrepreneurs are much less likely to apply for a small business loan through the SBA than men, although statistically speaking they are just as likely to be approved. According to a study by the Kauffman Foundation, female entrepreneurs rely more on personal and internal resources rather than external funding compared to male entrepreneurs.

Abigail Gonzalez, economic development specialist for the Houston division of the SBA, set the record straight to debunk the myth that women are not likely to be approved for loans. Gonzalez also discussed the many free programs the SBA offers to help all entrepreneurs, especially women, start their businesses.

Can you start by explaining SBA loans and why they are so useful for small businesses?

The SBA, as a federal agency, has a variety of resources for anyone looking to start a business. The SBA has SBA guaranteed loans that are available to anyone looking to start a business, expand a business, or perhaps export a service or product. These are used by participating SBA lenders. So, the SBA does not provide the money directly to the applicant, but the small business owner can apply through a lender to access an SBA loan.

SBA loans can be used for almost anything, including working capital, constructing a new building, or purchasing a new business. What we are doing is reducing the risk to the lender to make it easier for small businesses to access capital. This makes it easier for small business owners to obtain loans.

The SBA recently concluded a study to determine whether or not women were less likely to be approved for SBA loans. What can you tell us about this study and its findings?

We looked at the past 10 years of lending in Houston to see if the common view that women did not get financing for their businesses was correct. So what we wanted to do was look at our data to see if women are receiving SBA funding. Does SBA funding equitably represent the proportion of businesses owned by women? And is there room for growth or for change?

Research indicates that women aren’t less likely to be approved when they apply, but they don’t apply as much. Because another data point they looked at in another research study indicated that women are less likely to apply for loans and are more likely to depend on personal savings and other resources rather than to apply for loans.

Our aim here is to empower women who are looking to access a loan so that they do not read certain headlines that may imply that women are not receiving any funding. Women do not receive enough funding to reflect the number of businesses owned by women. But it is not because they are denied. It is because they are not applying.

Why do you think women are statistically hesitant to apply?

I think it can be a variety of things. On the one hand, it can seem a little intimidating looking for a loan because there are so many anecdotal stories that say women don’t get the funding. Or because a lot of small businesses owned by women are businesses created out of necessity, or because it’s a sole proprietorship and it’s a one-woman show.

We spoke to a small business owner here in Houston, Ana Rojas, Founder and CEO of Orolait, a Houston-based breastfeeding clothing line. She was able to share her own story of reluctance to apply for loans.

She said that initially, when starting her business, she also relied on savings and favors from her social network to do things like build her website. What I thought was really important was that she said loans for her was a very scary idea. Because if you are afraid that you will not be successful, or if you are afraid of owing someone money, it sends a much bigger message to your worth as a person and your ability to manage a business. business.

It wasn’t until she took the time to talk to a lender to see what her options were that she learned she could do it. It wasn’t something that would be terribly intimidating – this great, frightening occasion. She got the information she needed and ultimately was able to secure funding through the SBA Express program.

Going back to your original question, I think part of it was just reluctance and not being fully aware of the resources available. I think with any big step in life or entrepreneurship, you have to get the right information and make a plan on how you’re going to access it.

If someone is denied a loan for whatever reason, what does the SBA do? What other resources does the SBA offer?

The SBA will help you determine what you need to do to get the loan. They will say, “OK, you have to work on your credit score or save a little more so that you can get a bigger injection of equity in this loan.”

It’s about having a plan, establishing it, and then getting the loan you need to start or grow your business. We have SBA approved and SBA funded SBA resource partners to provide free advice to small business owners including Small Business Development Centers, SCORE Houston, and Women’s Business Centers.

So an entrepreneur can turn to one of these resource partners for totally free advice on a business plan or marketing strategy, or just to talk about a business idea. They can also approach these resource partners to discuss their financing options, find out what options are available, and find out where they stand in terms of what they need to do to prepare for a loan. We always recommend speaking to a resource partner before speaking to a lender, so that they are better prepared to speak to a lender and answer questions about their business and even present a business plan.

So the SBA provides a lot of free resources that a lot of people don’t know about and actually pay for through consultants?

A lot of people don’t think about the fact that we have resource partners who offer free advice. These resources are completely free, they are already paid for by taxpayers’ money. So there’s no need to go out and pay hundreds of dollars for those same services that are already available to small businesses here in Houston and across the country, completely free of charge.

What would you say to a female entrepreneur who is apprehensive about taking her first steps?

I would say, first step, to work with our research partners with our Women’s Business Center if you are more comfortable working with a woman who is a consultant. Or we have our other small business development center, and you can work with them to learn more about your options for preparing your business plan and financial projections.

My number one tip is that you don’t have to do it alone. The SBA and resource partners are here to help you access these loans and to prepare you. So if anything, that would be the first point of my first recommendation for any small business, but especially women who are considering lending but may not be sure exactly where to start or

My second tip is to make sure you don’t ask for less than you need. Research and even anecdotal data have shown that sometimes women ask for less money than they need. We want to share this post that you are no less likely to be approved than a man, so ask for the money you need and go for it and be as prepared as possible.

Are there other useful programs that we haven’t covered?

The SBA has an Ascent tool. It is a free platform for women entrepreneurs only, and it offers many educational tools for women who want to develop or improve their business. I would recommend women and all the companies out there so they can do some online learning on their own.

I think a lot of people still ignore some of the resources that we have because they will automatically think of disaster loans when they think of us. But the SBA offers disaster free loans that can help you start or grow your business. We want to make sure everyone is aware of this.

Resources for the programs mentioned in this story can be found at the following websites:

Small Business Administration: www.sba.gov

SBA Ascent Tool: www.ascent.sba.gov

SBA Women’s Business Center: https://www.sba.gov/business-guide/grow-your-business/women-owned-businesses

claire.goodman@chron.com

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Senior Loans: What They Are and a Good ETF to Get Exposure http://uaoc.net/senior-loans-what-they-are-and-a-good-etf-to-get-exposure/ http://uaoc.net/senior-loans-what-they-are-and-a-good-etf-to-get-exposure/#respond Fri, 17 Sep 2021 17:12:58 +0000 http://uaoc.net/senior-loans-what-they-are-and-a-good-etf-to-get-exposure/ One way to get more returns is to look at senior loans and Invesco Senior Loan ETFs (BKLN), but what are Senior Loans and what makes them a viable option in today’s market environment? “Senior loans are debt securities typically used by companies to finance their operations, support business expansion and refinance existing debt,” said […]]]>

One way to get more returns is to look at senior loans and Invesco Senior Loan ETFs (BKLN), but what are Senior Loans and what makes them a viable option in today’s market environment?

“Senior loans are debt securities typically used by companies to finance their operations, support business expansion and refinance existing debt,” said an article from CION Investments. “They are known as ‘senior’ loans because of their position at the top of a borrowing company’s capital structure.”

“Senior loans can also be secured by the borrower’s assets (cash, receivables, inventory, property and equipment to name a few) and have payment priority in the event of default,” adds the article. “Although loans can be structured as fixed or variable rate loans, senior loans are generally structured as variable rate loans, which means that the interest paid on these loans will fluctuate with changes in interest rates. interest. “

BKLN seeks to replicate the investment results of the S & P / LSTA US Leveraged Loan 100 Index. The fund‘s advisor and sub-advisor define senior loans to include loans called leveraged loans, bank loans and / or variable rate loans.

Banks and other lending institutions typically provide senior loans to corporations, partnerships, or other entities. Senior Loans are typically used for business recapitalizations, acquisitions, leveraged buyouts, and refinancings. BKLN’s loan portfolio will include the purchase of loans from banks or other financial institutions through divestitures or participations.

“As the investment landscape changes and interest rates continue to hover at near record highs, it is important to consider alternative asset classes that can help investors achieve their financial goals,” adds the CION article. “One of those asset classes that is growing in popularity among the retail investment community is senior lending. Senior Loans can be an attractive addition to an existing fixed income allocation, as they typically offer higher returns than traditional fixed income investments such as T-Bills and CDs, and offer investors the potential to invest. capital appreciation.

In search of a large influx

BKLN finds itself up there with the much-vaunted Invesco Trust QQQ (QQQ) ETF which constantly attracts investor activity. In Invesco’s wide range of ETFs, it has ranked second for fund flows over the past four weeks.

With a monthly dividend yield of around 3.2%, according to Dividend.com, BKLN is certainly a choice for fixed income investors looking to extract more yield from the current market. With its largest stake at 1.76%, BKLN also allocates allocations sparingly in order to minimize concentration risk.

Senior Loans What they are and the best ETFs to get exposure to 1

For more news, information and strategy, visit the website Innovative ETF channel.

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Government will guarantee 50% of KPP loans on the basis of risk sharing http://uaoc.net/government-will-guarantee-50-of-kpp-loans-on-the-basis-of-risk-sharing/ http://uaoc.net/government-will-guarantee-50-of-kpp-loans-on-the-basis-of-risk-sharing/#respond Fri, 17 Sep 2021 15:00:06 +0000 http://uaoc.net/government-will-guarantee-50-of-kpp-loans-on-the-basis-of-risk-sharing/ ISLAMABAD: The federal government will provide a guarantee of 50 percent of each loan granted under the Kamyab Pakistan program on the basis of risk sharing with banks. Federal Minister of Finance and Revenue Shaukat Tarin chaired Friday the joint meeting of the Steering Committee and the Advisory Board of the Kamyab Pakistan Program in […]]]>

ISLAMABAD: The federal government will provide a guarantee of 50 percent of each loan granted under the Kamyab Pakistan program on the basis of risk sharing with banks.

Federal Minister of Finance and Revenue Shaukat Tarin chaired Friday the joint meeting of the Steering Committee and the Advisory Board of the Kamyab Pakistan Program in the Finance Division.

During the meeting, the program design was reviewed and the outlines of the KPP were finalized in consultation with all relevant stakeholders.

After extensive discussion, it was decided that a robust tendering process will be launched for the selection of wholesale lenders (banks) who in turn will engage exclusively with executing agencies (suppliers microfinance).

There will be a quarterly review of the performance of the wholesale lenders with respect to the disbursement of funds. The government will extend the guarantee to wholesale banks up to 50 percent on a risk-sharing basis.

This will ensure transparency and due diligence in assessing the performance of wholesale lenders with respect to the disbursement of funds.

Another prominent feature is the formation of the KPP portal called Kamyab Pakistan Information System (KPIS). There will be a toll-free number, which will integrate the KPIS via telecos via the National transmission Company (NTC). The portal will be integrated with Ehsaas and Nadra data for the verification of beneficiary eligibility in order to allow executing agencies (microfinance providers) to finalize the financing modalities in the most efficient and transparent way.

Finance Minister Tarin said the Kamyab Pakistan program is a flagship government initiative, which is designed to transform the lives of marginalized segments of society and ensure their financial empowerment.

This is the first such program in Pakistani history; where, banks are connected to the lowest income segment through microfinance institutions. This is why the greatest care is taken before the launch of KPP.

The underlying rationale is to ensure that all stakeholders are on board for the ultimate success of the program, he said, adding that the program will be launched in phases to effectively cover all regions of Pakistan.

In the first phase, Khyber-Pakhtunkhwa, Balochistan and the poorest districts of the poor Punjab, Sindh, Gilgit-Baltistan and Azad Jammu and Kashmir will be covered.

The revised proposal will be submitted to the Cabinet Economic Coordination Committee (ECC) for deliberation and required approval for subsequent submission to the Federal Cabinet.

Special Assistant to the Prime Minister for Youth Affairs Usman Dar said that the Kamyab Pakistan program will be of great importance in creating income generation opportunities for talented young people and will go a long way in breaking the vicious circle of poverty in the country.

Among others, SBP Deputy Governor Sima Kamil, SECP Chairman Aamir Khan, Akhuwat Chairman Dr Amjad Saqib, NRSP CEO, Dr Rashid Bajwa, RSPN Chairman Shoaib Sultan, President of KPP Zafar Masud, President of PBA Muhammad Aurangzeb, President of Meezan Bank Irfan Siddiqui, President of Bank Alfalah. Atif Bajwa and other senior officials attended the meeting.

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Compare 95% of LVR home loans http://uaoc.net/compare-95-of-lvr-home-loans/ http://uaoc.net/compare-95-of-lvr-home-loans/#respond Fri, 17 Sep 2021 06:48:02 +0000 http://uaoc.net/compare-95-of-lvr-home-loans/ Want to enter the real estate market earlier with a home loan with a 95% loan-to-value ratio? Compare 5% of deposit banks and lenders. A 95% loan-to-value ratio basically means that you have a 5% deposit and the bank or lender is lending you the rest of the money. So on a property value of […]]]>

Want to enter the real estate market earlier with a home loan with a 95% loan-to-value ratio? Compare 5% of deposit banks and lenders.

A 95% loan-to-value ratio basically means that you have a 5% deposit and the bank or lender is lending you the rest of the money. So on a property value of $ 500,000 that means you need a deposit of $ 25,000 while $ 475,000 will be loaned to you.

Before the global financial crisis of 2007-09, and later the Hayne Royal Commission of 2018-19, it was not uncommon for banks to lend more than this. However, 95% LVR is about the maximum you can find these days.

In a world where house prices keep rising, saving just a 5% down payment is a tempting prospect, especially since you can enter the market earlier. However, there are a few considerations you might want to note first.

Looking for a house? The table below shows some of the lowest 95% LVR (5% deposit) home loans on the market.

Advantages of 95% LVR home loans

Less time to save for a deposit

Saving money can be tedious. By saving just 5%, you spend less time saving. Or you can divert some of your savings to other assets, like stocks, or leave some in the bank for a rainy day.

Research on the estate indicates that it takes more than seven years for first-time homebuyers to save on a 20% deposit for an “entry-level home” in Sydney. Saving 5% would theoretically only take a quarter of that time.

Enter the market earlier

With less time to save, you can get your keys earlier and potentially start realizing capital growth. Watching your home rise in value could quickly make you forget that you are paying mortgage default insurance (LMI) and potentially a higher interest rate on your home loan. However, it should be noted that capital growth is not guaranteed.

Take advantage of the First Home Loan Deposit Scheme (FHLDS) and other stimulus measures

The FHLDS is a federal government initiative that allows first-time home buyers to get a 95% LVR mortgage without having to pay LMI. This represents a potential saving of several tens of thousands of dollars. However, places are limited and there are other restrictions as well.

States and territories also have various initiatives providing money to first-time buyers to pay for their deposit.

Refinance after building up equity

Equity is basically the part of the value of the property that you own – that is, the value of your property minus what you owe on the mortgage. Chances are, after about a year, you can refinance with 20% equity under your belt and get a more competitive mortgage rate. Of course, if you’re still stuck on a fixed rate home loan, you probably won’t be able to do it, unless you’re prepared to pay the breakage fee.

Disadvantages of 95% LVR Home Loans

Pay mortgage insurance from lenders (LMI)

LMI is a pesky insurance premium that you pay because the lender takes on more risk. This insurance covers the lender, but the borrower must pay for it. According to Genworth’s calculator, a 5% deposit on an owner-occupied home of $ 700,000 could mean an LMI premium of over $ 27,000 for a 30-year loan term.

Larger refunds

LMI is often capitalized into the loan itself, resulting in a larger loan repayment. On top of that, you also pay back 95% of the value of the property, as opposed to 80% or less, which is a larger bi-weekly or monthly payment.

Higher interest rates and more interest paid

As the lender assumes more risk, you are more likely to face a higher interest rate. Plus, since you’re paying off 95% of the home’s value (which attracts interest), you’re going to pay a lot more interest over a 30-year term than on lower LVRs.

Risk of falling property prices

While this is true for any LVR, a drop in house prices is still possible, despite the strength of the Australian property markets. Owning more on the house than it is worth is called negative equity. While this is only a problem if you are willing to sell, negative equity is not a good feeling. And if you think of your deposit as a buffer against negative equity, less deposit equals less buffer, and there is more risk if house prices are heading south.


Photo by Jason Briscoe on Unsplash

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Customer-Owned Institutions and Australia’s largest non-banks:

Products from some vendors may not be available in all states. To be taken into account, the product and the price must be clearly published on the website of the supplier of the product.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*Comparison rate is based on a loan of $ 150,000 over 25 years. Please note that the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as draw charges and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.

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Tatarstan to abstain from new budget loans – RealnoeVremya.com http://uaoc.net/tatarstan-to-abstain-from-new-budget-loans-realnoevremya-com/ http://uaoc.net/tatarstan-to-abstain-from-new-budget-loans-realnoevremya-com/#respond Fri, 17 Sep 2021 06:00:00 +0000 http://uaoc.net/tatarstan-to-abstain-from-new-budget-loans-realnoevremya-com/ Tatarstan’s treasury has recovered from the shock of the coronavirus, having recouped losses of 40 billion rubles last year. The natural increase in tax revenue has been exceeded from 12 billion to 15 billion Tatarstan’s treasury has recovered from the shock of the coronavirus, no longer requiring federal support. “There is no need for budget […]]]>

Tatarstan’s treasury has recovered from the shock of the coronavirus, having recouped losses of 40 billion rubles last year. The natural increase in tax revenue has been exceeded from 12 billion to 15 billion

Tatarstan’s treasury has recovered from the shock of the coronavirus, no longer requiring federal support. “There is no need for budget loans this year,” Deputy Finance Minister of the Republic of Tatarstan Alexei Shishkin said of the performance of debt obligations at a meeting of the budget commission of the State Council of the Republic of Tatarstan. growth in tax revenue, the Ministry of Finance of the Republic of Tatarstan is preparing to make a “post-coronavirus” adjustment to the 2021 budget. Already now, the increase in income amounted to 12-15 billion rubles. 2018-2019 are still a long way off, but the federal center has also been favorable by granting a 9-year loan deferral.

Compensating for financial failure in the pandemic

The Ministry of Finance of the Republic of Tatarstan is preparing to make a “post-coronavirus” adjustment to the budget of the Republic of Tatarstan due to the planned revenue exceeding of 12-15 billion rubles, the deputy minister said. Aleksey Shishkin mentioned. Reporting on the progress of budget execution for 8 months of this year, he said the revenue collection situation has stabilized and the treasury has recovered from the shock of 2020.

According to him, since the beginning of the year, the consolidated budget has collected 149.3 billion rubles, or 55% of the plan, and the Republican budget – 125.5 billion rubles, or 54.6% of the plan. With a large overspending of income tax payments, more than 53 billion rubles were collected, or 71% of the annual plan. Targeted funds of 21 billion rubles have been received from the federal budget. In general, the Treasury received 40 billion rubles more than the previous year. That’s what the Republican budget lost in 2020, when income tax collection “sank” significantly.

“The pace is good and compared to last year, when we were forced to take out loans from the federal budget, it is significantly different. There is no such need this year, “said the speaker.” The year before has been a failure and 2019 has been more stable, “said Aleksey Shishkin.

The Ministry of Finance of Tatarstan is preparing to make a “post-coronavirus” adjustment to the budget of the Republic of Tatarstan in connection with the exceeding of the planned revenue of 12 to 15 billion rubles, said Deputy Minister Aleksey Shishkin ( to the right)

For 8 months of this year, 209.3 billion rubles were collected in the consolidated budget, 176.4 billion rubles were collected in the Republican budget.

“Timely funding of all planned expenditures is underway,” said Deputy Minister of Finance of the Republic of Tatarstan.

The Ministry of Finance of the Republic of Tatarstan expects an even more significant increase in taxes by the end of the year. “Apparently, by the results of nine months, it will be possible to submit a proposal to the State Council to increase the budget,” noted the speaker.

“In 9 months, the picture will improve even more and by the end of the year, revenues will increase. In all likelihood, we will bring clarification to your attention, ”Shishkin said.

Recall that the budget revenue of the Republic of Tatarstan was approved in the amount of 274.6 billion rubles, expenditure – 281.7 billion rubles, the deficit – 7 billion rubles.

Ministry of Finance of Tatarstan signed an agreement on the restructuring of the budget loan of 2.1 billion rubles. Photo: minfin.tatarstan.ru

Another 9 years postponement

The federal center was favorable by granting a loan deferral of 9 years. The Ministry of Finance of the Republic of Tatarstan signed an agreement on the restructuring of a budget loan of 2.1 billion rubles, taken to cover the budget deficit at the end of 2020.

According to Aleksey Shishkin, in June Tatarstan, along with other regions, participated in the restructuring of budget loans of subjects of the Russian Federation.

“We also participated in a 2.1 billion ruble loan, which was issued in December 2020. Initially, the repayment period was for July 1 of this year,” he said. “But as a result of the restructuring, the repayment period has been extended by 9 years – until 2029.

According to its terms, the republic is obliged to pay 5% of the amount of debt in the period from 2021 to 2024, and from 2025 to 2029 – 16% of the amount of debt. As a result, the Treasury will be able to save around 2 billion rubles, Shishkin said. Instead of 2.1 billion rubles, Tatarstan will return only 120 million rubles.

“The trend is not bad, payments are more and more postponed, and therefore we are talking about the fact that the funds released will be used for investments,” commented the head of the budget committee of the Council of State of the Republic of Tatarstan, Leonid Yakounine.

“The trend is not bad, the payments are still postponed”, commented Leonid Yakunin

Members of the committee recommended to adopt the draft law of the Republic of Tatarstan “On the approval of additional agreements to the agreements on the provision of budgetary loans to the budget of the Republic of Tatarstan from the federal budget” . On September 23, it will be submitted to the autumn session of parliament.

Currently, the public debt of the Republic of Tatarstan is 85 billion rubles for budgetary loans and 11 billion rubles for public guarantees.

Luiza Ignatyeva. Photo: gossov.tatarstan.ru

Tatarstan

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Bondster will guarantee P2P loans with Bitcoin http://uaoc.net/bondster-will-guarantee-p2p-loans-with-bitcoin/ http://uaoc.net/bondster-will-guarantee-p2p-loans-with-bitcoin/#respond Fri, 17 Sep 2021 01:27:19 +0000 http://uaoc.net/bondster-will-guarantee-p2p-loans-with-bitcoin/ Bondster a Czech Republic-based peer-to-peer lending platform said it would secure investor loans with Bitcoin. Bondster says last week the first batch of bitcoin-backed loans were initiated on its platform. Bondster claims there was “unprecedented interest” in these loans. Bondster creates secured loans with real estate, personal property, a redemption guarantee and now crypto. The […]]]>

Bondster a Czech Republic-based peer-to-peer lending platform said it would secure investor loans with Bitcoin.

Bondster says last week the first batch of bitcoin-backed loans were initiated on its platform. Bondster claims there was “unprecedented interest” in these loans.

Bondster creates secured loans with real estate, personal property, a redemption guarantee and now crypto. The only difference with a secured Bitcoin loan is in the method of securing, where instead of movable or immovable property, borrowers pledge their Bitcoin. The company adds that if there is a dramatic drop in value, borrowers have to make up the difference or they lose their promised Bitcoin.

Bitcoin-backed loans are also subject to the so-called redemption guarantee, which applies in the event that the borrower stops repaying the loan. In such a case, the originator pays the investors the full amount invested, including the interest received.

“The number one priority for us was maximum safety. The LTV (Loan-to-Value) ratio for this type of secured loan is therefore 50-70%. At the same time, the loans come with the redemption guarantee that applies both in the event of default and early termination, so that investors do not lose money or interest. These will always be paid to them in full, ”explains the CEO of Bondster. Pavel Kléma.

Klema added that a few days ago they hit the 13,000 investor milestone on the platform and investor interest in the amount of money invested in April has returned to pre-market levels. pandemic.

“Against this backdrop, I firmly believe that bitcoin-backed loans will further accelerate the growth of the Bondster investment platform.”

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Over R18 billion in loans distributed to businesses through the Covid-19 loan guarantee program http://uaoc.net/over-r18-billion-in-loans-distributed-to-businesses-through-the-covid-19-loan-guarantee-program/ http://uaoc.net/over-r18-billion-in-loans-distributed-to-businesses-through-the-covid-19-loan-guarantee-program/#respond Thu, 16 Sep 2021 15:32:08 +0000 http://uaoc.net/over-r18-billion-in-loans-distributed-to-businesses-through-the-covid-19-loan-guarantee-program/ IN JULY, the Covid-19 loan guarantee scheme, which was supposed to provide financial relief to businesses, ended. But what was the success? In a recent parliamentary question-answer session, President Cyril Ramaphosa said the project had been disappointing. The program was intended to provide loans, substantially guaranteed by the government, to eligible businesses that were in […]]]>

IN JULY, the Covid-19 loan guarantee scheme, which was supposed to provide financial relief to businesses, ended. But what was the success?

In a recent parliamentary question-answer session, President Cyril Ramaphosa said the project had been disappointing.

The program was intended to provide loans, substantially guaranteed by the government, to eligible businesses that were in good standing with their banks at the end of December 2019, registered with the SA Revenue Service and in financial difficulty due to the Covid outbreak. -19 and subsequent confinements.

Funds borrowed from this program, through the banking sector, could be used for operational expenses, such as salaries, leases and leases and contracts with suppliers. The loans were granted at a preferential rate (premium) and repayment could be deferred for a maximum of one year after taking out the loan. The companies would then be required to repay the loan over five years.

Banks were not allowed to profit from these loans and any surplus generated would revert to the national treasury. The government and the commercial banks shared the risk of non-repayment of these loans. The National Treasury initially provided R100 billion to the banking sector through the South African Reserve Bank, with the option of expanding the program to R200 billion if necessary.

The Banking Association South Africa (Basa) said the program has been successful in helping qualified businesses stay operational and save jobs.

As of June 25, participating banks had granted 13,324 loans worth over R18 billion to eligible applicants. At the time, the system had received 50,717 loan applications, of which only 26%, or 13,324, were approved by the banks and taken over by the applicants.

Basa said many of the financial and business challenges facing small businesses predate the pandemic and were caused, among other things, by a weak economy, power outages and uncertain business conditions. Many business owners were reluctant to take on more debt in a weak and uncertain business environment, reducing demand for the program.

“The Covid-19 loan guarantee program was only a small part of the relief that banks were giving their customers and financially troubled customers. Figures released to the South African Reserve Bank indicate that as of February 2021, banks had provided R293 billion in financial assistance to their clients and clients – businesses: R165 billion, retail: R128 billion rand – representing 5.8% of total corporate and personal credit exposure. ”, Said Basa.

He said he called for the reduction of bureaucracy and political uncertainty to make doing business easier, especially for small and medium-sized businesses. Facilitating entrepreneurship and small business development was one of the safest and fastest ways to spur inclusive economic growth and job creation.

Small Business Institute (SBI) chief executive John Dludlu said the program had played its part and the country had learned what was possible and impossible to achieve.

“The priority now is to continue supporting SMMEs in light of the continued lockdown, as some businesses were not yet performing optimally,” Dludlu said.

The immediate focus was on SMMEs which had been devastated by the looting that took place in July in KwaZulu-Natal and Gauteng.

[email protected]

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