Login
ISCOVER
Non-bank lenders are establishing themselves as true competitors in the mortgage space.
Speaking to The Adviser, Homeloans’ general manager of sales Greg Mitchell said while the non-banks have always hung tough in the mortgage space, the markets are allowing these lenders to be a little more competitive.
“The non-banks, including Homeloans, never left the market during the GFC. That said, the GFC put a lot of pressure on us, and elements that were completely out of our control rendered us uncompetitive,” he said.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“The removal of deferred establishment fees and the major banks playing hard ball against each other made it very hard for us to come to the table. But we have hung tough over the past couple of years and certainly now, with the markets opening and the cost of funds sliding, we are able to bring competitive products and excellent service to the table.”
Indeed, the non-banks are collectively showing they are becoming increasingly hungry for business. Yesterday, Homeloans launched a new 80 per cent LVR SMSF loan that can go head-to-head with similar products offered by the majors.
RESIMAC and Pepper also recently entered a bidding war with each other over the acquisition of RHG.
Earlier this week, RESIMAC announced its intention to buy 100 per cent of ordinary shares in RHG. However, before the deal could be sealed, Pepper offered a higher price for the company.
“The non-banks, including Homeloans, never left the market during the GFC. That said, the GFC put a lot of pressure on us, and elements that were completely out of our control rendered us uncompetitive,” he said.
“The removal of deferred establishment fees and the major banks playing hard ball against each other made it very hard for us to come to the table. But we have hung tough over the past couple of years and certainly now, with the markets opening and the cost of funds sliding, we are able to bring competitive products and excellent service to the table.”
Indeed, the non-banks are collectively showing they are becoming increasingly hungry for business. Yesterday, Homeloans launched a new 80 per cent LVR SMSF loan that can go head-to-head with similar products offered by the majors.
RESIMAC and Pepper also recently entered a bidding war with each other over the acquisition of RHG.
Earlier this week, RESIMAC announced its intention to buy 100 per cent of ordinary shares in RHG. However, before the deal could be sealed, Pepper offered a higher price for the company.
This competition between the two non-banks proves just how far the lenders are willing to go to win business.
As Mr Mitchell explains, the non-banks are hungry for business and, as long as they can provide competitive products, there will be demand for their offering.
