Aussie Home Loans Says It Is Poised To Achieve Dominance In Non Bank Mortgage Lending

Post by Sharat on February 3, 2010 · Under Australian Economy, Business News, Non Bank Finance, banking, credit cards, home loans, insurance, mortgages, personal loans · Comment

John Symond, executive chairman of non bank financial Aussie Home Loans, says his company is poised to achieve dominance in the non bank mortgage lending segment, that, despite the fact that it is widely expected that there may be as many as three further interest rate hikes during 2010.

In an interview with Sky Business Channel, Mr. Symond said non bank finance continued to remain fragments, but that Aussie Home Loans was no diversified enough to emerge as one of the largest players in the sector.

“My aim with Aussie is to become one of the biggest retailers of financial services outside of the big banks because consumers need a safe alternative . . . when we see St George and Bankwest taken up, and Suncorp struggling, Hopefully, Aussie can fill some of that void.” he said.

In August 2008 Australian banking major Commonwealth Bank of Australia acquired one third of Aussie Home Loans, and the company now sells credit cards, personal loans and insurance products.

Mr. Symond says that the Australian central bank, the Reserve Bank of Australia, was doing a “pretty good” but has to walk a fine line between balancing the need to prevent the economy overheating, without causing a contraction.

“The housing market continues to perform extremely well, and maybe a bit too well,” he said.

Mr. Symond’s view contradicts results the results of a survey conducted by Australian Finance Group, which says first time mortgages declined by nearly half during January.

According to the mortgage broker, three consecutive interest rate rise, rolling back of Federal subsidies, and the disappearance of first time buyers has take its toll on the market.

“People are not moving or upgrading their family homes, they’ve slammed the brakes on borrowing,” AFG managing director Brett McKeon said.

Compare Australian Home Loan Deals