A new national study has found more Australians than ever before are considering non-banks over the major four when looking for a mortgage provider.
Results from the Australian Mortgage Snapshot Study 2013, published today, have found:
• 83 per cent of Australians choose their home loan provider based on interest rates
• 90 per cent of Australians would consider a home loan from a non-bank rather than a traditional provider
88 per cent of Australians would consider refinancing from a bank to a non-bank
• 74 per cent of Australians feel positive about non-banks
• 77 per cent of Australians believe that the big banks have an detrimental stranglehold on the home loan market
The survey was commissioned by leading Australian non-bank lender State Custodians Mortgage Company and conducted in May 2013. Over 1000 people across Australia were asked a series of questions about their opinion of the Australian home loan industry. State Custodians has today also announced a re-branding to Australia’s non-bank to better reflect its market leading position.
State Custodians CEO, Heidi Armstrong, said the results highlighted that a growing number of Australians were looking at home loan solutions outside of the major banks.
“Australians want hip pocket relief – they want to take advantage of the competitive rates and flexible options offered by non-bank lenders,” Ms Armstrong said.
“With 83 per cent of Australians choosing their home loan provider based on interest rates, it’s more important than ever for lenders to remain competitive.
“The non-banks top the rate comparison charts time and time again. With such low rates and a strong commitment to customer service, it’s no wonder that Australians are considering non-bank lenders over the major banks for their mortgages.
According to home loan comparison website, RateCity, State Custodians has the lowest ongoing variable home loan out of more than 100 lenders at 4.74 per cent.
“We compared State Custodians’ lowest variable rate of 4.74 per cent with the lowest average variable rates of the major four banks of 5.29 per cent. The difference in monthly repayments for a $400,000 home loan between the lowest variable rate and the lowest average variable rate of the major four banks is $135. This difference is potentially worth over $48,000 over a 30-year loan term,” RateCity spokesperson, Michelle Hutchison, said.
The Australian Mortgage Snapshot Study has also confirmed that Australian borrowers are now more open to the non-banks, with 90 per cent saying they would consider getting their next home loan from a non-bank.
“Australians can see through the big advertising budgets and marketing ploys adopted by the big banks,” Ms Armstrong said.
“This study has shown that three-in-four Australians think the banks have a detrimental oligopoly of the Australian home loan market. Borrowers are fed up with the major banks and are looking for alternative solutions.
“Ultimately, it’s the non-bank lenders like us who make the home loan market competitive and thereby force lenders to deliver the best prices and products to borrowers.
“We are thrilled to be re-branding State Custodians Mortgage Company as Australia’s Non-Bank. We expect that the launch of Australia’s Non-Bank will fill a void in the Australian home loan market.”