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ISCOVER
Staff Reporter
Non-banks will always have a place in the industry, a new broker survey has found.
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According to recent survey conducted by Homeloans, almost 50 per cent of all brokers said they would not find it difficult to recommend a home loan provider to a client who wasn’t familiar with that provider – up from 40 per cent six months ago.
But, Homeloans general manager third party distribution Tony Carn said there’s still plenty non-bank lenders can do in order to close the gap between the non banks and the majors.
“Brokers are now even more willing to use a non bank, but there’s still a lot of opportunity for them to put this into action – and I believe the abolition of exit fees will provide a good springboard,” he said.
“Currently, for many brokers exit fees are a psychological barrier and they won’t refer loans with such fees. Well from July 1 this will no longer be a credible barrier.”
Mr Carn said the survey also found that borrowers view non-banks favorably as well.
Consumers’ dislike of the major banks continues to grow and they are more willing to look at products being offered by alternative lenders.
Of both investors and owner occupiers (non-first home buyers), 73 per cent of respondents were open to using alternative lenders, while 69 per cent of first home buyers said they would consider a non bank / alternative lenders.
“We’re certainly seeing evidence of that at Homeloans. We’ve seen a 53 per cent increase in national awareness since August 2010,” Carn said.
