Non-bank home loans set to return

Tuesday 15 December 2009

Article by Mozo

Home loan customers will be offered greater choice next year as funding conditions improve for non-bank lenders, a report has found.

The study by the audit body Deloitte found that securitisation funding would be cheaper for non-bank lenders next year, allowing them to pass on the benefits to customers.

"In 2010 lenders will seek to position for the opportunities ahead. Where 2009 was the year of the major banks, 2010 will provide opportunity for the re-emergence of other lenders in the marketplace," said Deloitte banking partner James Hickey.

According to Deloitte, 2010 will be a prime year for customers to compare home loans as all lenders adopt a range of offers.

The report suggested lenders would focus on pricing strategies, customer service and its use of third-party broker groups.

Michael Russell, chief executive of Mortgage Choice, recently pointed to the growing competitiveness of the smaller banks. He told the Sydney Morning Herald that second-tier banks such as St George, Bankwest, Suncorp, ING Direct and AMP Banking were now getting a bigger share of Mortgage Choice settlements.

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