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Jessica Darnbrough
Despite only accounting for a small percentage of the mortgage market, brokers still believe non-bank lenders are a viable alternative to the majors.
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According to new research conducted by Homeloans, 80 per cent of mortgage brokers believe non-bank lenders are a competitive alternative to the majors with more than half choosing non-bank lenders because of their diverse product feature offerings.
Homeloans’ general manager sales Greg Mitchell said non-bank lenders were no longer seen as a lender of last resort for borrowers with a tarnished credit history.
“Today brokers are now more open to recommending non-banks because of the growing discontent with the major banks and also because of the wider product ranges and competitive interest rates being offered,” he said.
“However, there’s still great potential to further close the gap – particularly with the rising cost of living leading to more borrowers looking at the alternatives in order to reduce their costs.”
The survey also showed that brokers now write up to a quarter of their total business through non-bank lenders.
“We continue to innovate and provide brokers with solutions which the banks are not providing,” Mr Mitchell said.
