About 50 per cent of market under AFG… Banks lock savers into long-term accounts... Major banks claw back market share...
Mortgage giant AFG planning to list on ASX
Mortgage brokers are responsible for more than 50 per cent of the new loans being written now, amid a housing boom. According to the Australian Financial Review, it may not be that surprising to learn that the country's biggest mortgage broking play, Australian Finance Group is planning to list on the ASX.
Perth-based AFG has a $100 billion-plus loan book, double that of the only listed player at present, Mortgage Choice. They target the estimated $1.75 billion worth of annual commissions that the large banks pay to third parties to boost their mortgage loan growth.
AFG generates revenue from two main businesses: as a wholesale mortgage broker of about 30 home loan products sourced from across the market; and as a provider of AFG-branded home loan products.
Banks lock savers into long-term accounts
Savers looking for a competitive interest rate should be willing to commit to a long-term relationship as banks try to preserve margins, according to an article from the Sydney Morning Herald.
New figures show major banks have this month cut interest rates on a range of savings accounts by more than their home loan interest rates. But at the same time, several lenders have also increased certain term deposit interest rates, and some "bonus" rates for people who keep their money in the same account and make regular contributions.
While home loan interest rate decisions attract more attention, Finder.com.au spokeswoman Michelle Hutchison pointed out that most households do not have a mortgage.
"There are about 3 million households with a mortgage, out of about 8 million. The remaining households are essentially savers – they either have paid off their home or they are renting," she said.
Major banks claw back market share
The major banks have clawed back home loan market share after they lost ground to the non-majors at the end of 2014, new data reveals.
AFG’s Competition Index shows that the overall 67.7 per cent of loans processed for major lenders last December, which represented an all-time low since the GFC, climbed back to 74.7 per cent by April 2015. This figure is in line with the market share held by Australia’s Big Four banks and their subsidiaries for most of the past two years.
The fight-back by major lenders has been more successful in some sectors than others. Their share of refinancing loans bounced back from 58.6 per cent in December 2014 to 69.3 per cent in April 2015. Among investors there was a rise during the same period from 73.3 per cent to 77.3 per cent.
“We’re seeing a keener and more diversified market than ever before. Many borrowers are well aware of this and are increasingly using brokers to help them find the best deal. The growth of white label products is starting to become a competitive factor, and we expect this trend to grow in coming months,” Mark Hewitt, general manager of sales and operations said.
Mortgage brokers are responsible for more than 50 per cent of the new loans being written now, amid a housing boom. According to the Australian Financial Review, it may not be that surprising to learn that the country's biggest mortgage broking play, Australian Finance Group is planning to list on the ASX.
Perth-based AFG has a $100 billion-plus loan book, double that of the only listed player at present, Mortgage Choice. They target the estimated $1.75 billion worth of annual commissions that the large banks pay to third parties to boost their mortgage loan growth.
AFG generates revenue from two main businesses: as a wholesale mortgage broker of about 30 home loan products sourced from across the market; and as a provider of AFG-branded home loan products.
Banks lock savers into long-term accounts
Savers looking for a competitive interest rate should be willing to commit to a long-term relationship as banks try to preserve margins, according to an article from the Sydney Morning Herald.
New figures show major banks have this month cut interest rates on a range of savings accounts by more than their home loan interest rates. But at the same time, several lenders have also increased certain term deposit interest rates, and some "bonus" rates for people who keep their money in the same account and make regular contributions.
While home loan interest rate decisions attract more attention, Finder.com.au spokeswoman Michelle Hutchison pointed out that most households do not have a mortgage.
"There are about 3 million households with a mortgage, out of about 8 million. The remaining households are essentially savers – they either have paid off their home or they are renting," she said.
Major banks claw back market share
The major banks have clawed back home loan market share after they lost ground to the non-majors at the end of 2014, new data reveals.
AFG’s Competition Index shows that the overall 67.7 per cent of loans processed for major lenders last December, which represented an all-time low since the GFC, climbed back to 74.7 per cent by April 2015. This figure is in line with the market share held by Australia’s Big Four banks and their subsidiaries for most of the past two years.
The fight-back by major lenders has been more successful in some sectors than others. Their share of refinancing loans bounced back from 58.6 per cent in December 2014 to 69.3 per cent in April 2015. Among investors there was a rise during the same period from 73.3 per cent to 77.3 per cent.
“We’re seeing a keener and more diversified market than ever before. Many borrowers are well aware of this and are increasingly using brokers to help them find the best deal. The growth of white label products is starting to become a competitive factor, and we expect this trend to grow in coming months,” Mark Hewitt, general manager of sales and operations said.
