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Competition in the mortgage market is as fierce as it has ever been, according to general manager, distribution at NAB Broker Steve Kane.
Speaking to The Adviser, Mr Kane said the Australian mortgage market has never been so hot.
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“I think that we have never seen more competition in the mortgage market for new business,” he said.
This level of competition is great news for brokers as lenders fight for broker business.
“Every lender in the marketplace is wanting to maintain a competitive position and part of that is the way in which they price their products,” said Mr Kane.
NAB Broker is one of several lenders to have reduced fixed rates in recent weeks, a trend described by Mr Kane as being driven by competition.
“I think that is being driven wholly and solely by competition in the marketplace, which is fantastic for the customers of our broker partners,” he said.
Declining to comment on any future pricing decisions, Mr Kane said, “We continue to review our product positioning in the marketplace to make sure that we have effective and competitive products going forward”.
Competition in the industry is being fuelled by increased demand for loans, and lenders’ desire to capitalise on the current conditions, as the housing sector continues its impressive resurgence.
NAB Broker volumes for the December 2013 quarter reflect an overall surge in finance demand to match increased strength in the property market.
“We have seen a 15 per cent uplift on the same period last year and we have really maintained a two-and-a-half times system growth,” said Mr Kane.
“We are very buoyant about the future: we see that clearly mortgages are still a very important asset class for Australians both in terms of owner-occupied housing and also as an investment opportunity.
“Clearly, at the moment, NSW is really moving ahead faster than the other states. We are seeing some good movement in Victoria as well; Queensland following that; and then the WA and SA markets are probably the ones that are not performing as well as the east coast state markets,” he said.
