Smaller home loan lenders increase market share

Smaller, less established mortgage providers are starting to gain a greater share of the market.

Figures released by the Australian Bureau of Statistics showed that non-bank lenders accounted for 8.85 per cent of new owner-occupied home loans in April, which is the highest for more than a year.

By comparing mortgage packages online, Aussies get a broader picture of what different lenders will offer them.

Too many people have signed up for deals with the country's major banks without weighing up their options and this approach is costing us huge sums of money.

Treasurer Wayne Swan has been championing smaller companies for a long time and he believes that greater competition in the home loan sector is healthy.

He told the Sydney Morning Herald that Aussies need to have a variety of options in case their mortgage providers are not delivering a decent service. Indeed, he suggested that people now have more power to switch lenders if they are unhappy.

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