The announcement of a half-year profit of $139.7m from Bendigo and Adelaide bank is an indication that good times are returning for non-bank lenders.
The figure represents more than a 20 percent year-on-year increase in profits, another sign that Australia’s financial services institutions are returning to full strength after enduring tough times during the Global Financial Crisis.
The Adviser reports that Bendigo Bank’s general manager has maintained his commitment to the Mortgage Broker channel and aims to improve service times in the coming year. Lenders were quick to abandon the broker channel at the height of the financial crisis but it seems more second tier lenders are resurrecting their interest in this segment of the market.
It was estimated that mortgage brokers were writing about 40 percent of all home loans before the financial crisis – a figure that dropped considerably during the recession.
This news comes as several non-bank lenders have increased their Loan-to-Value Ratios (LVR), signaling a positive shift in risk assessment criteria.
Meanwhile Suncorp Bank and the lending arm of AMP have both dropped their interest rates in a bid to attract more business from the re-surging property market. Both lenders support the mortgage broker channel.
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