Banks 'dominate home loans market'
The vast majority of home loans approved in Australia are from banks, according to new figures from Royal Bank of Scotland (RBS) economists.
Data compiled by Kieran Davis and Felicity Emmett revealed that 93 per cent of new loans to owner-occupiers were from banks, up from 80 per cent before the financial crisis, reports the Sydney Morning Herald.
The report from RBS suggested that the business model employed by many non-bank lenders was "unsustainable".
However, it stated: "The disappearance of these lenders barely seemed to register with households, probably because these lenders did not have a deposit base and their assets were absorbed by larger lenders."
Aussies who go online to compare home loans may be interested to learn that a recent study by the Australian Housing and Urban Research Institute suggested that only one in 40 people in the Generation Y age group believe they will own their home on retirement, reports News.com.au.
Have a question about home loans? Ask the money gurus at Mozo Answers.