Access to finance has become difficult and time consuming, leading to a surge of enquiry to finance brokers, who are able to get a positive result efficiently by having market knowledge and access to dozens of institutions.
While major Australian banks are expected to face further scrutiny on their lending practices as a result of the Royal Commission, many smaller finance providers – who are far less impacted – have embraced the opportunity and are now growing their market share.
Non-bank housing credit has risen by approximately 13% over the past 12 months, compared to growth of just 4.8% for the big four Banks.
Growth in loans to housing investors has dramatically decreased with the big four banks too, jointly by the impact of the Royal Commission, but also due to the Australian Prudential Regulation Authority (APRA) placing a cap on interest-only lending, a favoured product for investors.
These policies do not apply to the entire market, leading to a sharp rise in interest-only investment home loan issuance among non-bank lenders who are able to offer the product and also at comparatively cheaper rates.
Obtaining finance will remain difficult for some time still, however the banking marketplace is large and knowing where to go for your particular circumstance is vital.
Endeavor Finance is available to help with a range of finance options. Whether you have been turned away by a bank or want to assess your options, they can assist. Call today to discuss what you need. 03 5434 7690.