Second tier lenders are starting to make their presence in the mortgage space known, according to Smartline.
The brokerage’s managing director Chris Acret said second tier lenders are starting to offer very attractive deals to quickly build their market share.
But equally Mr Acret also said that the big four are still keen to maintain their customer base and may be prepared to “sharpen their pencil” to retain their share of the market.
“Companies such as Bendigo Adelaide Bank, Macquarie, ING and the credit unions have all started to more aggressively push back into the home lending market in recent months, following their pull back as a result of the GFC,” Mr Acret said.
“As a result, they are offering competitive interest rates, particularly on fixed loans, and are prepared to lend a higher proportion of the property’s value which is attractive to first home buyers struggling to get their deposit together.
“The packaging up of several banking products with the home loan, low introductory offers, and reducing or even waiving fees are all carrots being used to secure your business and the banks are often prepared to match them.”
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