By: Jessica Darnbrough
Brokers will direct more business to the non-bank sector according to The Adviser’s Q2 sentiment survey.
The data from the latest sentiment survey has found that 83.7 per cent of brokers plan to recommend non-bank products to their clients – an 11.6 per cent increase on this time last year.
According to the latest Australian Bureau of Statistics data, the banks account for 86.3 per cent of the number of housing finance loans written in April – a decrease of 2.9 per cent since April 2009.
But the swing to mortgage managers and originators could be more significant than the latest ABS data suggests as much of their funding is now sources from bank wholesale funds rather than from securitised lenders.
Recent data from Mortgage House supports broker sentiment with the lender reporting that more than 49 per cent of refinance applications submitted to the company are coming from borrowers leaving one of the four major banks, while a further 21 per cent have left other ADI’s.
Mr Sayer said borrowers were turning to non-bank lenders for product flexibility and good quality customer service.
“It is good to see borrowers considering their options and maximising their savings. The level of dedication and service provided is unmatched – when was the last time your bank manager came and visited you in your home or workplace?” he said.
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