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by
Duncan Hughes
The mortgage market share of ghost banks has jumped about 30% over the last two years, with borrowers looking for lower rates and easier terms.
Their total share is around 9.5% and increases sharply as lenders turn away from traditional lenders in order to obtain a better offer or more competitive introductory rates. At the end of 2016, the market share was slightly above 7%.
"We are seeing borrowers wake up at the most competitive interest rates," said Mitchell Watson, head of research at Canstar, who monitors prices, rates and terms.
Australian Finance Group, the country's largest lender, said the growth of non-bank lenders constituted a "structural change" in the credit markets for buying, investing and refinancing for the first time. times, particularly among buyers who wish to set their rates.
This change also appeared in Liberty Financial's annual results, released Wednesday, which showed a 35% increase in assets to $ 10.2 billion.
Publicity
The difference between the rates proposed by the four large banks and the unauthorized deposit-taking institutions (ADIs) for homeowners' interest-only loans exploded more than 90 basis points. shows.
A big move from traditional non-banks to unregulated banks is a crackdown on loans from the Australian Prudential Regulation Authority in early 2017, especially for interest-only home loans.
Since then, lenders have responded to stricter regulation and scrutiny on the part of the Royal Bank Survey Commission by more closely analyzing the income and expenses of loan applicants.
"The credit crunch has encouraged borrowers to switch lenders," Watson said.
Change lender
The analysis is based on the Australian Bureau of Statistics 'latest analysis of the percentage of homeowners' loans financed by non-bank owners.
For example, the big banks have moved away from new homeowners' businesses that can only pay interest.
Regulating shadow banks, or non-ADIs, are also being stimulated by takeovers of private equity firms or hedge funds, such as the recent takeover of LaTrobe Financial Services by the Blackstone Group.
Enhanced balance sheet coverage enhances their ability to tap the securitization markets for financial gain, lower rates and reduce costs.
For example, Bluestone, specializing in near-prime residential lending, has been named to Mortgage Choice, the country's third-largest brokerage network. The term "near-privileged" refers to loans to those who may have a lower credit history and are at greater risk of default than "preferred" loans.
Reflective banks reduce the cost of administration and increase the incentives of other borrowers.
PepperMoney, a non-bank lender, waives initial fees of approximately $ 1,800 on standard quasi-prime loans and offers reduced interest rates on preferred and near-privileged loans.
Special offers
The big banks are trying to recover market share by offering various special offers, especially to borrowers seeking to refinance.
The Westpac group, the country's second largest lender, which includes St George Bank, Bank of Melbourne and BankSA, is launching a $ 2,000 refinancing cashback for refinancing applications.
Suncorp has launched a $ 1,500 refinancing incentive and NAB, the only major player not to raise its standard variable rate, is offering a bonus of $ 1,250.
Fictitious banks, which generally have only regional or nonexistent branch networks, take advantage of their market through national networks of mortgage brokers and compete for the best rates offered on popular comparison sites.
Parallel banks offer lower prices in the four categories of mortgage loans. The average difference is in the order of 50 basis points for the "owner of meat and potatoes", principal and interest loans, where it is 13 basis points.
All four major countries continue to restructure their loan portfolios as a result of increasing reputational, prudential, liquidity, financing and regulatory pressures that the Royal Commission is likely to raise wholesale costs of financing.
Five of the six major lending banks recently increased their standard variable rates in response to increasing funding pressures, although the Reserve Bank maintained the cash rate at 1.5%.
More and more non-ADIs are also being recruited into credit committees for major mortgage broker networks due to increasing demand from borrowers for cheaper rates and discounts.
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