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ISCOVER
Staff Reporter
The Mortgage & Finance Association of Australia (MFAA) expects strong growth in the equipment and commercial finance sector over the next year.
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According to MFAA chief executive Phil Naylor, the continuing commodities boom and major private and government sector-funded construction projects will boost activity in this sector.
The stand-out states are expected to be Western Australia and the Northern Territory, where many of the large resources projects are about to commence or are underway.
The growth is reflected in a surge of personal and home loan inquiries in Western Australia and the Northern Territory, reflected in the Veda Quarterly Credit Demand Index.
“Lower interest rates are expected to provide a boost to our members in the equipment and commercial finance sector and also members in the home loan market, where brokers now provide well over 40 per cent of all loans,” he said.
“There are many examples of where our members have delivered very large savings for commercial customers when negotiating the financing of equipment through both lease and purchase. It is a challenge to communicate the fact that our 2,500 members can deliver great savings for commercial clients, in a similar way the industry has delivered great results in the home loan space.”
