While the majors continue to dominate the mortgage market, Australia’s non-bank lenders have shown they are not out of the fight.
Speaking to The Adviser, Homeloans’ general manager third party distribution Tony Carn and Intouch chief executive Paul Ryan said the non-bank sector is now stronger than ever and ready to battle the big players for market share.
While non-banks are largely known for their service and innovation, Mr Carn said the players were still very competitive on price.
“Homeloans has a variable rate starting at 6.79 per cent and a three year fixed rate starting at 6.59 per cent, with a 100 per cent offset account. So not only are we competitively priced, but our fixed rate product is also very innovative,” Mr Carn said.
“We are always reviewing our product suite to see what we can do to ensure our products are industry leading.”
Mr Ryan agreed and said, in many instances, non-bank lenders offer products that are between 40 and 60 basis points cheaper than the majors.
“Many brokers see non-bank lenders as being niche players. While we definitely cater to these types of borrowers, we are also very competitive in the prime lending space, not just in terms of service, but pricing as well.”
Mr Ryan said non-banks had become more nimble and competitive in recent months since the government had banned deferred establishment fees.
“We are now on a level playing field with the majors and we intend to fight for greater market share,” he said.