Non-bank home loans shrink

Friday 16 January 2009

Article by Mozo

Widely publicised home loans figures from the Reserve Bank this week have shown that the non-bank lenders’ share of Australian mortgages has plummeted in recent months.

Statistics for November show that over the course of the month, non-bank home loans had a 7.7 per cent share in the market, its lowest slice since records began in 1975.

And speaking to the Age, Choice senior policy officer Elissa Freeman, warned that the big banks may lack the incentive to offer any new low-interest home loans as the competition weakens.

“In past years, pressure came from non-banks and that pressure’s just not there at the moment. With less power as a consumer, you have less power over fees and <a href=”//mozo.com.au/“>interest rates,” she warned.

The new figures were welcomed by many property experts, with particular attention paid to the number of first-home buyers who were able to secure a loan in November.

Statistics showed that first-home buyers now make up 23.6 per cent of the total property market.ADNFCR-1761-ID-18978027-ADNFCR

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