Mortgage Lending to be given a boost from non bank lenders

Why Home Buyers need more competition in  Mortgage Lending

Australian non bank securitised mortgage lending has been in the doldrums since the Global Financial Crisis hit in 2008, and as a result Australia's big four banks have over 92% of Australia's loans. This is from less than 75% when the non bank lenders were their strongest. That is not good for home buyers or homeowners, and its why The major banks have increased their profit margins on mortgage lending, and want to raise it even higher.

Government support of non bank mortgage lending

To counter what would have been the complete loss of the non bank mortgage sector sales in 2008, the Rudd government expanded to $16 billion a RMBS purchase plan to assist the survival of Australia's non bank mortgage lenders, who had been taken out of the market during the GFC.
The interesting thing is that Macquarie Bank an investment bank and Westpac, one of the big four Australian banks, are sponsoring the shows Sydney, Melbourne and Brisbane to promote the investments. Westpac were seen as the the worst offenders in raising interest rates above the official cash rate set by the RBA.

Australia's non bank mortgage lenders go from major players to feather dusters

Australia had been a big player in the securitised mortgage lending business up to the global financial crisis, and everyone thought that Australia would follow the US in the loss of home values and therefore mortgage security, but this never happened.
Australia was the fourth largest RMBS market in the World with $100 billion market, but since the US sub prime mortgage crisis growth has all but evaporated.

Non Bank Mortgage lenders represent a great investment opportunity

There has never been a RMBS default in Australia, so mortgage loan securitisation should be a great investment opportunity.
Source: Mr Mortgage