Australia’s non-bank lenders are slowly starting to claw market share away from the banks.
According to the RFi’s latest Australian Mortgage Market Wrap, bank-held owner occupier commitments fell in the year to January 2011.
After a slight rebound in December, the value of bank-held owner occupied lending commitments now sits at $12.5 billion.
As such, Australia’s banks currently hold 85.9 per cent of the market of owner-occupied loans in terms of value, down from 90.5 per cent in January 2010.
RESI chief executive officer Lisa Montgomery told The Adviser at The Australian Lending Awards that non-banks had become increasingly competitive over the last year, but they still had a long way to go.
“Competition is alive and well at the moment. What we need to do however, is ensure that funding comes back to the market. If the non-banks can get their hands on competitively priced funds, it will allow us to compete on a level playing field,” she said.
“Even if this doesn’t happen in the near term, I can safely say, non-banks are here to stay.”
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