Product enhancements announced today by Homeloans and Pepper underline the momentum behind the non-bank sector’s push for market share.
Homeloans slashed 0.31 per cent off its full doc MoniPower loan.
The Homeloans MoniPower loan is a fully-featured loan with 100 per cent offset facility, no monthly or annual fees and very flexible credit criteria. It now sits at a very competitive 6.79 per cent, alongside the Homeloans Ultra which starts at 6.59 per cent.
Meanwhile, Pepper Home Loans has announced its plans to slash its Deferred Establishment Fees on its Flexi Advantage and Pepper Self Employed Advantage home loans from 3 per cent to 1.5 per cent.
All new applications from today onwards will be charged a DEF of 1.5 per cent on the original loan balance if the loan is repaid in full during the first four years.
Over the last few months a number of non-bank lenders have announced improvements across a range of areas including low doc product enhancements, sharper pricing and even increased commissions.
Timing for the non-bank sectors could not be better as news surrounding the majors has been less positive recently.
Westpac and St George have tinkered with commissions and clawbacks, raising concerns amongst brokers while there is ongoing speculation that the majors will lead an out of cycle rate hike in the near future.
Connective principal Mark Haron told The Adviser that broker sentiment towards the non-bank sector was improving on the back of these policy changes.
“We are definitely seeing greater positive sentiment towards the non-bank sector. Non-banks are better positioned to make changes to their policy rather than price structure. The more flexible a loan, the more likely brokers will be to recommend it to their clients,” Mr Haron said.
Last week, The Adviser reported that sentiment towards the non-banks had improved significantly over the last year.
According to the latest broker sentiment survey, 81.8 per cent of brokers said they would recommend non-bank products to their clients over the coming quarter – up 6.5 per cent on this time last year.