Australia’s non-bank lenders have managed to snare market share away from the majors, new research has revealed.
According to AFG’s latest Mortgage Index, Australia’s non-bank lenders comprised around 21 per cent of all home loans processed in February – almost three times more than the 7.5 per cent recorded in 2009.
AFG general manager sales and operations Mark Hewitt said while it was good to see increased competition between lenders in the mortgage space, the good news was being completely overshadowed by the threat of a Deferred Establishment Fee ban.
“If such a ban comes into effect, non-bank lenders will be badly disadvantaged and consumers could find their options rapidly evaporate,” Mr Hewitt said.
The Index also found that overall mortgage sales are yet to recover from the summer of disasters.
$2,053 million of loans were processed in February 2011, down 9.7 per cent on February 2010.
New South Wales was the only state to show a modest increase on February 2010’s figures (2.7 per cent), with mortgage volumes in other states falling by 8.1 per cent in Victoria, 8.8 per cent in Western Australia, 16.3 per cent in Queensland and 22.9 per cent in South Australia compared to February 2010.
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