With all four majors moving out of cycle with the Reserve Bank, opportunities to snatch market share are opening up for Australia’s smaller lenders.
On Friday, both Yellow Brick Road and LJ Hooker Home Loans confirmed once again that they would not be raising their standard variable rate until at least February 2011 – regardless of what the RBA and other banks do.
Last week, ANZ, NAB and Westpac all showed their hand – lifting standard variable rates by 39, 43 and 35 basis points respectively.
Meanwhile, Yellow Brick Road not only decided to keep its standard variable rate on hold, the lender has also announced its plans to remove the exit fees from its standard variable home loan products as of 1 December 2010.
“In the last two weeks, we’ve seen millions of dollars taken out of the hands of every day home loan customers and transferred to the already $20 billion plus bank profits that already exists,” the lender’s executive chairman Mark Bouris said.
“At Yellow Brick Road we’re taking a stance. We believe it’s time for consumers to do the same, to vote with their feet and switch and save. At what stage is enough, enough?”
The lender is also in the throes of expanding its retail branch network nationwide – recently opening its 40th store.