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.
A survey conducted by professional services firm Deloitte suggests that non bank finance companies are expected to capture a greater share of the mortgage lending market next year, after funding constraints that caused them to cede business to the Big Four lenders subsides and global financial markets continue to recover their health.
Non bank finance company and leading mortgage broker Aussie Home Loans has called for the Reserve Bank of Australia (RBA) to leave interest rates unchanged when it holds its monthly board meeting next week, or risk hurting retail sales during the traditionally busy Christmas shopping season.
Australia’s Big Four banking groups have come to completely control the market for mortgages, with competition beyond the majors all most non-existent, as smaller lenders struggle to compete.
Australian non banking finance company Rams Home Loans issued a warning that it may have to default on its financing obligations, if it cannot negotiate with creditors over upcoming debt repayment deadlines, or remains unable to sell or securitise a larger portion of its mortgage book.
Non banking finance companies such as credit unions and building societies say they have already taken measures to provide relief for customers who have lost their jobs.