Mortgage Brokers appear to be directing more business to non-bank lenders in preference to the traditional banks.
A recent sentiment survey conducted amongst mortgage brokers has found that 83.7 per cent of brokers plan to recommend non-bank products to their clients – an 11.6 per cent increase on this time last year.
According to the latest Australian Bureau of Statistics data, t 86.3 per cent of all home loans written were with banks the number of housing finance loans written in April – a decrease of 2.9 per cent since April 2009.
But the move to mortgage managers and originators could be more significant than the latest ABS data suggests as much of their funding is now sources from bank wholesale funds rather than from securitised lenders.
According to reports from Mortgage House, half of all refinance applications submitted to them are from borrowers looking to refinance their home from a major bank to a non-bank lender , while a further 21 per cent have left other ADI’s.
Mr Sayer said borrowers were turning to non-bank lenders for product flexibility and good quality customer service.
“It is good to see borrowers considering their options and maximising their savings. The level of dedication and service provided is unmatched – when was the last time your bank manager came and visited you in your home or workplace?” he said.