Australians are increasingly abandoning the Big Four banks, according to latest figures from the financial regulator APRA.
Typically, smaller lenders offer lower interest rates than the Big Four
In the year to May, the majors increased the value of their owner-occupier loan book by 3.75 per cent, while other banks’ lending was up 10.56 per cent in the same period.
Major Banks Losing Borrowers to Other Banks
And many economists are predicting that, across the board, rates have further to fall. One economist believes the cash rate will be 0.50 per cent by February 2020.
As a result, investors and first-home buyers are reporting the first flickers of FOMO (Fear of Missing Out) as parts of the property market start to turn and buyers move to get in at the bottom.
While average sale prices in Sydney and Melbourne have risen only modestly since sentiment began turning after the May federal election – just 0.1 per cent and 0.2 per cent respectively – stories from some parts of those cities suggest a far sharper turnaround.
We are a long way from a property boom, but it is clear that lenders competing for your business and driving down rates are impacting on property sentiment.
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