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Steven Cross
‘Resentment’ of the big four banks has made borrowers flock to non-bank lenders, CUA executive manager Chris Whitehead has claimed.
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According to Mr Whitehead, CUA saw its home loan sales soar 24 per cent in the first quarter of 2012, after the lender opted not to hike rates independently of the Reserve Bank.
“People will consider switching from the major banks and there is a high level of concern, and even dislike for the trend toward raising interest rates outside the Reserve Bank’s official cash rate,” he said.
He conceded that public sentiment towards the big four was fast declining.
“I think there is a lot of resentment toward major banks,” said Mr Whitehead.
According to the Australian Bureau of Statistics (ABS), the number of new home loans written by banks fell 2.6 per cent in February.
Building societies saw loan numbers increase by 3.2 per cent, and wholesale lenders continued a slow upward trend recording a 5.6 per cent increase in loan volumes.
Glen Spratt of Mortgage Port told The Adviser that the current economic environment is favouring non-bank lenders.
“Providing personalised service to borrowers and a bit of old fashioned banking advice that people treasured many years ago is where non-bank lenders can make a significant difference,” he said.
“Major banks are like production lines, you stick a loan in one end and hope it comes out the other cooked, baked and iced.”
