The non-bank sector took a blow this week after ABS figures revealed its market share decreased during December.
According to the ABS, the number of owner-occupied dwellings financed by banks increased by 0.8 per cent in December, while the share of dwellings financed by non-banks fell by a disappointing three per cent.
There is however confidence in the non-bank sector that once data from January and February is released – reflecting the banks’ recent rate hikes – a boost in the non-banks’ market share will be revealed.
“I think we will definitely see the non-bank market share come back,” Andrew Rae of Ascent Mortgage Management told Mortgage Business.
Mr Rae believes the banks’ recent rate adjustments have brought them back to a level playing ground with the non-bank sector.
“The adverse press the banks have been receiving is likely to be a set back to their market share,” he said.
Mr Rae also said that borrowers seem to have realised that the non-banks’ rate increases were inevitable now that banks have done the same.
“Now that the banks have increased their rates, borrowers seem to have concluded that the non-banks just happened to do it first,” he said.
Whilst he admits the market is still unstable, Mr Rae is cautiously optimistic about the outlook for the non-banks.
“We are still in very volatile times but we have certainly seen 2008 kick off quite positively; February’s numbers in particular being quite strong.”
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