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By: Jessica Darnbrough
Non-majors are ramping up their presence in the market on the back of aggregator support.
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Bankwest’s head of broker sales Aaron Milburn told The Adviser that while the Australian economy was not out of the woods just yet, competition is starting to re-emerge.
“Times are still tough and I think we still have a long way to go before we can officially call an end to the global financial crisis,” Mr Milburn said.
“But that said, I think we will start to see second tier lenders ramp up their presence in the market, spurred on by broker and aggregator support.”
Milburn said the newly launched aggregator, Vow Financial, had been a huge advocate of non-major lenders.
“The team at Vow are hugely supportive of competition and are encouraging their brokers to look at using second tier lenders,” Mr Milburn said.
“With more than 900 brokers to their name, Vow Financial is officially Australia’s fifth largest aggregator. With that in mind, it is great to know that such a formidable presence in the mortgage market is so supportive of second tier lenders."
Vow Financial's chief executive officer Jeff Zulman said the aggregator is a huge supporter of the non-majors because it means more selection and competition from trustworthy organisations.
"I would like to say that this is the year of the non-major lenders," Mr Zulman told The Adviser.
"Non-majors have built up their market share to approximately 17 per cent over the last couple of years and I can forsee this share growing further in the years to come."
"Australia is a small market, so we need to make sure that competition is always at the forefront and readily encouraged by the industry."
