Latest news with #Pelligra
Yahoo
22-05-2025
- Business
- Yahoo
NAB's radical mortgage change to give homebuyers $30,000 power boost
NAB is changing the way it assesses your mortgage application, which could massively boost your borrowing power. Banks across Australia use what's called the Household Expenditure Measure (HEM) when assessing someone's mortgage application. It gives lenders a rough guide on the amount of money that someone in your situation would be spending every month. Mortgage broker David Pelligra said NAB's small tweak arriving on Friday will be a big win for certain buyers. "It's so common now that first-time buyers are buying townhouses, units, apartments, and there are always body corporate and strata fees, which wildly impact their serviceability," he said. RELATED Controversial mortgage practice costs homebuyer $30,000 after tiny pay increase: 'Unfair' $500 ATO cash boost that Aussies have weeks to claim: 'Hard to beat' Aussies given fresh $100 energy bill rebate in $50 million cost-of-living promise From Friday, May 23, NAB will include body corporate and strata fees for owner-occupied properties in its HEM calculations. The bank said changing those fees from additional living expenses to general living expenses creates a more accurate representation of regular household costs. It also ensures mortgage serviceability assessments reflect the true nature of ongoing property a bank is assessing how much to lend you, it will combine your measure with your additional living expenses. The type of spending that's included in HEM is things like your bills and utilities, groceries, fuel, whether you have kids, and how old they are like. They are costs you basically can't avoid. HEM can also include certain discretionary spending, but that is up to each lender. Additional living expenses are things like life insurance, private school fees, or health insurance (even though the government can penalise you if you don't have this). Under the bank's eyes, those are technically optional costs. Up until now, NAB viewed body corporate and strata fees as something that was optional, even though you couldn't avoid them if you owned an apartment. Pelligra told Yahoo Finance he had a recent client who was applying for a loan who was paying body corporate fees. It was $3,000 a year in fees, which is $250 per month. The mortgage broker explained that if those fees were considered additional living expenses, then she would be able to borrow around $380,000 from the bank. However, with those expenses listed under HEM, she was able to borrow $410,000. That's a $30,000 increase in borrowing power with this simple change. Pelligra said he's had to coach many clients about how body corporate or strata fees could affect the amount they will borrow depending on the bank they choose. HEM is based on the Australian Bureau of Statistics' (ABS) Household Expenditure Survey, which is updated every six years and provides a snapshot of the typical spending behaviour of Australians. The measure is also adjusted every quarter to keep pace with inflation. NAB updated its figure twice a year. When you submit your mortgage application, you will also have to outline your general and additional living expenses. Once a lender is able to create a HEM guide for you as an applicant, it will take whichever is highest out of the HEM number and your expenses while retrieving data Sign in to access your portfolio Error while retrieving data
ABC News
08-05-2025
- Business
- ABC News
Adelaide's WNBL team saved by SA government but no guarantees on 'Lightning' name
Adelaide will continue to have a presence in the Women's National Basketball League (WNBL) after the league's new owners today announced a partnership with the SA government to keep the team alive. The Lightning has won five championships since entering the league, The WNBL was recently taken over by a new ownership group, which has said its priorities include the financial sustainability of clubs and the growth of the game. Amid the league's decision to decline Lightning owner Pelligra's request to continue in the league, the government has stepped in to support the league in a transition to new ownership. Steph Talbot is one of Adelaide's best players. ( Getty Images: Graham Denholm ) The SA government will provide $571,000 to the club per year over the next three years. Premier Peter Malinauskas said the Adelaide Lightning was a team synonymous with success and the government would not have allowed it to fold. "As soon as we heard that news as a state government, we got to work with engaging with the WNBL and basketball more broadly in our state to see if we can't come up with a solution that ensures that the next season of the WNBL has the Adelaide Lightning competing as it always has," he said. "To be honest, in my mind, that was always going to be true. "There wasn't a set of circumstances where as a government we were going to tolerate the Adelaide Lightning not continuing within the WNBL. "It is also important in inspiring the younger generation of young female basketballers to continue to participate." Former general manager Steve Wren said he wanted to ensure the Lightning remained part of the WNBL. ( ABC News: Guido Salazar ) WNBL chief executive Jennie Sager said today's announcement was the first step in rebuilding the team in South Australia. "We couldn't be happier that from the minute we reached out to the government, that support was there and that door was open," she said. "It's absolutely a partnership that needed to happen to keep the Lightning here. "Right now our intention is to look for new owners over the next three years. "For now the club will be run between the WNBL and that current ownership and the government." The Adelaide Lightning is a five-time champion club. ( Getty Images: Mark Evans ) The agreement will also see the team train at the newly opened $88 million South Australian Sports Institute (SASI) headquarters. The team will have access to office space, a gym and court as well as medical and physiotherapy support. The state government will also provide $300,000 over three years to deliver community-based programs for junior basketball to provide a pathway for girls to play at the elite level. Former WNBL and Adelaide Lightning champion basketballer Rachael Sporn. ( ABC News ) Adelaide Lightning legend and former Australian Opals player Rachael Sporn said she was relieved to know the club will have a future in the competition after a tumultuous week. "It's so wonderful to hear we have security now," Sporn said. "We've been in the league since its inception in 1981 and I'm so relieved and grateful that it will continue well into the future. " Playing in the WNBL and Adelaide Lightning was my pathway to representing my country. " Pelligra still owns intellectual property Although Adelaide's presence in the competition has been confirmed, there is no guarantee the Adelaide Lightning name will survive. Adelaide's Isobel Borlase represents the side and also plays for Australia's national team. ( Basketball Australia ) As it stands, former owners still own the intellectual property of the Lightning name. However, the premier is confident that issue will be resolved. "I don't think there's a set a circumstances where there's not an Adelaide Lightning," he said. "Credit to the Pelligra Group, they have a lot of interest in sports around the world and have made a significant contribution here in South Australia. "Knowing Steve Wren and Ross and Paul Pelligra like I do, these are good people who enjoy sports. "I'll be stunned if we don't see the Adelaide Lightning name continue in perpetuity." He said beyond the three-year agreement with the state government, he's confident in the long-term future of the club. "This is a team that's got a proven track record of success, rebuilding that culture I think can happen relatively quickly with a right new owner."
Yahoo
08-05-2025
- Business
- Yahoo
Homebuyers warned against common mortgage mistake after $150 issue: 'Dumbfounded'
Mortgage broker David Pelligra said homebuyers can make a big mistake by getting a loan with the same bank they're already with. (Source: TikTok/Getty) Australians keen on entering the property market soon are being cautioned against getting a mortgage with a bank that they're already a customer with. It might seem like a common-sense move, especially if you've been with that bank for years, but it can end up delaying your application. Mortgage broker David Pelligra told Yahoo Finance he experienced this first-hand with a recent client. He was shocked when he received a call from the lender, who asked about a single transaction in his client's bank statements. "It's something you come across quite often when you apply with a bank that the client's already with," he said. RELATED "Mostly because they've already got the client's financial data, which generally isn't a problem. "But when we go to other banks, it's not to say we're hiding anything, it's that we only need to provide the lender with what they need." On the phone call, which the Wealth Point Lending broker described as the "most ridiculous" he's received in five years, the bank wanted to know about a $150 transfer the client made to a friend. Do you have a mortgage story? Email Even though the transaction was clearly labelled as a wedding gift to a friend with whom she had transferred money to before, the bank wanted to double-check with Pelligra that it was legit. This same client periodically transferred rent to their housemate, and even though it was also clearly labelled as such, the bank asked the mortgage broker for a please explain. He said this is the type of scrutiny you can face when a bank has access to all your information. How much do banks need to know about your money? Normally, when you submit your financial information for a loan, which usually goes back around three months, a broker will ensure your salary and living expenses match what is on your mortgage application. But a bank that you're already with can dive into every single movement of your money over those 90 days if they wanted to be sure everything stacked up. "I tried to call the assessor just to see the rationale behind the question, because I was dumbfounded myself," Pelligra told Yahoo Finance. "I understand the creditor assessors are doing their job and they need to dot their i's and cross their t's at all times. I'm not gonna bash them for that.
