Its Time The Government Walked The Walk For Home Loan Borrowers

Its Time the Government Walked the Walk for Home Loan Borrowers

In the wake of the parliamentary debate about interest rates an industry expert has called on parliament to stop using interest rates for political points scoring and develop real action in developing initiatives for consumers to benefit from a healthy home loan market.

Home Loan Hints founder Paul Ryan believes it is time for parliament to engage industry leaders and develop a vehicle so that consumers can access alternative forms of funding and be secure in their borrowing.

"If the parliament is fair dinkum in its appraisal of interest rates, sending out warnings to the banks and being an advocate for the people who put them in parliament then they need to act and provide guarantees in opening up the securitization markets" Ryan says.

"Australian home borrowers don't need their leaders jostling for voice and impractical solutions"

In the late 80s and early 90% the home loan market was bank dominated and consumers had no choice but to accept the banks offer and the service they provided

The emergence of non bank lenders such as Aussie Home Loans, RAMS and Wizard Home Loans using securitization markets as a their form of funding enable consumers to access home loans at significant lower interest rates to the banks. Such lower rates at the time even had the banks introduce discounted rates so that they themselves could compete. At the height of the non bank emergence they had up to 30% market share, nowadays the banks are back dominating at 90%.

Ryan continues, "The government can play a major role in keeping the banks honest. Creating a vehicle to open up the securitization market and providing the appropriate guarantees so that the non banks, credit unions and building societies can access cheaper funding and then pass the benefits on to the consumers in the form of lower interest rates."

"The government provided guarantees for the banks during the GFC so it would be an option for them to stimulate competition in the home loan market. Previously a healthy home loan market created such competitive pressure that it forced the banks to play ball" say Ryan.

The Government and parliament playing ball for the benefit of consumers now that's real action

For further information you can contact
Paul Ryan - Founder
E [email protected]
T 02 99591600
Website www.homeloanhints.com.au - www.facebook.com/homeloanhints or www.twitter.com/homeloanhints

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SOURCE: Home Loan Hints