Game on as banks eye out of cycle rate hikes

While CBA took less than one hour to announce its rate hike, the other major lenders have been a little slower off the mark.

Federal Treasurer Wayne Swan branded CBA’s rate hike as a “cynical cash grab” and vowed to introduce reforms to boost competition between the lenders.

But while CBA’s decision managed to appal Mr Swan, it failed to shock the industry, with both CBA and Westpac consistently warning that higher funding costs would cause them to step out of cycle with the RBA.

If all the majors move this week, it could open up sound opportunities for the non-bank sector.

Advantedge’s general manager, lending – distribution Brett Halliwell said the timing is perfect for mortgage managers, and the non-bank sector in general, to increase its market share as borrowers become frustrated by the big banks.

“Borrowers are becoming increasingly aware of the banks’ grip on mortgage lending and this is beginning to reflect in the business that is starting to flow back to the non-bank sector. Recent concentration in the market towards banks is no doubt opening up new prospects for non-banks,” Mr Halliwell said.

“We see this as a major opportunity for mortgage managers, and Advantedge is in a strong position to support its partners at a time that the market is opening up.”

Mr Halliwell says mortgage managers can now capitalise on growing customer sentiment towards non-banks as well as the positive impact that NCCP regulation will bring to the industry.

"The non-bank sector is at a cross roads. Our mortgage managers’ forum has shown that non-banks are reinvigorating their businesses and moving forward to meet the needs of tomorrow’s customer.”

“We are leaders in the business of creating, distributing and supporting financial products, tools and advice, and committed to helping our mortgage manager partners capitalsie on the resurgent market.