An increasing number of Australians are telling brokers they do not want a home loan with a big four bank, a new report has found.
MyState Bank surveyed its national broker network over the last 10 days and found that ‘anti-bank’ sentiment is on the rise among borrowers.
According to the survey, 46 per cent of brokers said they were seeing a “marked increase” in customers saying they did not want a mortgage from a big four or major bank.
When asked how much this had increased over the past six months, 29 per cent of respondents said “anti-big bank sentiment” had increased 20 per cent or more, 10 per cent said it had increased between 15-20 per cent and 15 per cent said it had increased between 10-15 per cent.
Just over 20 per cent said the number of customers requesting a non-big four or major bank mortgage had increased by 5-10 per cent, with 25 per cent saying it had increased by around 5 per cent.
The survey also revealed brokers’ biggest concern: regulatory reforms.
More than 50 per cent of brokers said their primary fear is the speed with which regulators have made changes to LVRs and loan availability.
A further 25 per cent said their primary concern was the potential for further regulatory change with limited notice, while 8 per cent cited the ability of their broking businesses to adequately respond to change at short notice.
Only 9.5 per cent of brokers nominated the potential for a significant housing market slowdown as their major concern.
MyState group executive broker distribution, Huw Bough, said the responses indicated members of the mortgage broker community believed they and other stakeholders were not given adequate notice of recent regulatory changes and were wary of further changes being imposed on their businesses and occupation without adequate consultation.
“Mortgage brokers are a key mortgage distribution channel in Australia. Broker networks give consumers greater choice and encourage competition by enabling smaller challenger banks to offer products in markets right across the country,” he said.
“As an integral part of our financial system, it is important that the broker industry’s views are carefully considered and taken into account in any industry change.”
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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