Home loan providers draw line in the sand

Thursday 28 May 2009

Article by Mozo

Australia’s four largest home loan providers are developing distinct approaches to mortgage lending during the downturn.

Writing for the Australian, banking expert Nick Tabakoff has revealed that the Commonwealth Bank and Westpac have been handing out new home loans at a rate of knots in recent months, allowing them to a combined 68 per cent share of the big four’s total retail deposits by March.

Business Spectator commentator Robert Gottliebsen claims that Westpac have been particularly happy to extend credit, and cites estate agents who have been able to find buyers a Westpac loan after they were refused finance from CBA.

Meanwhile, National Australia Bank and ANZ have seen their share of the home loans market dwindle as they adopt a more reserved approach to borrowing.

Now that the line has been drawn, Gottliebsen claims, Australia’s major banks are going to have to wait and see which strategy pays off.

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