Invest
Nation turns back on bank home loans
Aussies turned in droves to the non-bank sector for home loans last year, as banks tightened their credit offerings and customer satisfaction fell throughout the royal commission.

Nation turns back on bank home loans
Aussies turned in droves to the non-bank sector for home loans last year, as banks tightened their credit offerings and customer satisfaction fell throughout the royal commission.

According to Standard & Poor’s (S&P) latest report, the non-bank sector issued 60 per cent of home loans in 2018, skyrocketing from 31 per cent the year prior.
In its Structured Finance Outlook 2019 report, the ratings agency stated that it expected alternative lenders to continue to “dominate” the home loan sector in 2019, as APRA’s strong lending standards continue to take a toll on authorised deposit-taking institutions (ADIs).
“Many Australian bank issuers remained on the sidelines in the past year, leaving the non-bank sector to pick up the slack,” S&P noted.
“Even as home-lending growth slowed to around 5 per cent, the non-banks were able to achieve lending growth rates more than double their banking peers by capitalising on a tightening of lending standards in the [ADI] sector.”
However, the ratings agency said that although the non-bank sector’s proportion of lending has significantly increased, the residential segment is remaining less than 5 per cent of total mortgages.
It suggested that although APRA has lifted its 30 per cent cap on interest-only lending, the move is unlikely to signal an increase in investor home loan adoption over the short term as many lenders will continue to strengthen their practices ahead of the release of the royal commission’s final report.
“Many lenders are applying greater scrutiny to expenses in their debt-serviceability assessments, and this is tightening many borrowers’ access to finance,” S&P stated.
“Lending standards are likely to remain more stringent in the wake of the publication of the final report on the royal commission findings, which is due to be released in February 2019.”
Customer satisfaction low during the royal commission
S&P’s findings reflect data released by Roy Morgan in the midst of the royal commission, which found that satisfaction with banks overall declined.
The research house’s August Customer Satisfaction-Consumer Banking report found that the big four banks each experienced drops in customer satisfaction, with NAB down 3.9 percentage points, Westpac down 3.6, ANZ down 2.7 and CBA down 2.5.
This has sparked millions of Aussies to look towards new providers in the non-major segment.

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Dutch e-commerce giant VidaXL ramping up Australian operations
Netherlands-based online retailer VidaXL is ramping up its operations in Australia, by launching the build of a brand new 81,000 sq m national distribution centre in Melbourne. ...Read more

Property
Invest in property or watch savings dwindle, expert warns
Money is cheaper than it’s ever been on the back of a favourable interest rate environment, compelling Aussies to shift away from other types of investment vehicles and into property investment. ...Read more

Property
Is 2021 a great year to buy property? Aussies think so
2021 is tipped to be one of the busiest years for property ever as money remains cheap and readily accessible, with a majority of Aussies agreeing that now is a good time to buy. ...Read more

Property
Young Aussies set their sights on home ownership in 2021
The COVID-19 pandemic has accelerated younger Australians’ desire to own their own home, despite affordability remaining a significant concern, new research has revealed. ...Read more

Property
HomeBuilder stimulus causing surge in new houses: ABS
Housing schemes such as HomeBuilder and historically low-interest rates are causing a surge in new properties being built in Australia, official stats have shown. ...Read more

Property
Cancelled gap years could trigger first home buyer frenzy
COVID-19’s cancellation of travel plans could fuel demand from first home buyers in Western Australia, according to a chief executive. ...Read more

Property
When will Australia crack the $1m median house price?
A property investor has predicted Australia’s median house price will surge to over $1 million in the next three years, as the economic recovery acts as a tailwind for the industry. ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Dutch e-commerce giant VidaXL ramping up Australian operations
Netherlands-based online retailer VidaXL is ramping up its operations in Australia, by launching the build of a brand new 81,000 sq m national distribution centre in Melbourne. ...Read more

Property
Invest in property or watch savings dwindle, expert warns
Money is cheaper than it’s ever been on the back of a favourable interest rate environment, compelling Aussies to shift away from other types of investment vehicles and into property investment. ...Read more

Property
Is 2021 a great year to buy property? Aussies think so
2021 is tipped to be one of the busiest years for property ever as money remains cheap and readily accessible, with a majority of Aussies agreeing that now is a good time to buy. ...Read more

Property
Young Aussies set their sights on home ownership in 2021
The COVID-19 pandemic has accelerated younger Australians’ desire to own their own home, despite affordability remaining a significant concern, new research has revealed. ...Read more

Property
HomeBuilder stimulus causing surge in new houses: ABS
Housing schemes such as HomeBuilder and historically low-interest rates are causing a surge in new properties being built in Australia, official stats have shown. ...Read more

Property
Cancelled gap years could trigger first home buyer frenzy
COVID-19’s cancellation of travel plans could fuel demand from first home buyers in Western Australia, according to a chief executive. ...Read more

Property
When will Australia crack the $1m median house price?
A property investor has predicted Australia’s median house price will surge to over $1 million in the next three years, as the economic recovery acts as a tailwind for the industry. ...Read more