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Lenders zero in on owner-occupiers

James Mitchell 7 minute read

A listed mortgage group has noted that competition in the owner-occupied space is starting to intensify as mortgage providers wind back their level of investment lending.

Mortgage Choice chief executive John Flavell said many lenders were starting to offer some “very competitive” owner-occupied home loans in a bid to pick up more of this business.

“Over the past few months, many of Australia’s lenders have made significant changes to their investment product pricing and policy in a bid to curb their level of investment lending growth,” Mr Flavell said.

“But just because many of Australia’s lenders are actively trying to reduce their level of investment activity, doesn’t mean they are not hungry for business – quite the opposite.

“Australia’s lenders are just as hungry for business as they ever were and because APRA has told them to limit their level of investment lending growth, the lenders have been forced to turn their attention to owner-occupiers.”


Mr Flavell said many of Australia’s lenders are currently offering owner-occupied borrowers a raft of incentives, including interest rate discounts, cashback offers and fee waivers.

“In the 20 years I have worked in financial services, I have never seen the level of lender competition we are witnessing now. Regardless of whether people are looking to buy a home or refinance their current property, they can be guaranteed of securing an incredibly competitive home loan deal,” he said.

For those borrowers who have been in the same home loan product for a while, Mr Flavell said now may be a good time for them to give their mortgage a much needed spring clean.

“A good de-clutter never goes astray and often borrowers uncover financial aspects of their life that need some reassessment or to be changed altogether,” he said.

According to Mr Flavell, borrowers who give their home loan a spring clean may realise that they are in the perfect position to refinance their mortgage.

“Refinancing may allow borrowers to repay their home loan sooner and ultimately achieve their next financial goal sooner.

“Further, refinancing can be a great way for borrowers to lower their mortgage repayments, consolidate their debt and even access equity in their home,” he said.

[Related: Major funder sharpens variable rates]

Lenders zero in on owner-occupiers
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.


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