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ISCOVER
Jessica Darnbrough
While the rest of the majors are widely expected to respond to CBA’s rate move, the question many brokers are asking is how will the second tier and non-banks react?
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On Tuesday, CBA led the charge for the majors, lifting 20 basis points above the RBA – leaving the others to consider their options.
The Adviser spoke to both Adelaide & Bendigo Bank and Resimac yesterday to find out what approach the lenders would take.
Both said rates were “currently under review”.
Adelaide and Bendigo Bank’s general manager third party mortgages Damian Percy said the lender would review its rates on Friday morning at the company’s fortnightly pricing policy meeting.
“We won’t make a decision until Friday. At the end of the day, rising costs of funds are hurting everybody, but I honestly couldn’t say whether or not the bank will move out of cycle.”
RESIMAC also remained quiet on its pricing structure, with a spokesperson saying that a decision would be made “within the next couple of days”.
If the second tier and non-banks do choose to toe the RBA’s line, the sector could expect to see its market share soar.
Recent data from AFG shows non-bank volumes have been growing quarter on quarter – from the low of 7.5 per cent recorded in the first quarter of 2009.
Today, according to AFG, non-banks make up 12.5 per cent of all new loans written.
