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Non-bank lenders can ease the current rate debate by ensuring they adhere to the timely processing of deals and the pre and post settlement care of their customers, according to Peter Bromley LJ Hooker Finance's head of finance.
Speaking to the MortgageMix, he said to be competitive in the current market non-bank lenders must take a "considered approach" to product positioning and pricing.
Bromley's comment follows clear indications that aggressive pricing has allowed the majors to maintain their grip on the mortgage space.
The Adviser is reporting a cumulative addition of $4.1 billion to the major's mortgage book in the last month, according to RFi's latest Australian Mortgages Market Wrap survey.
In addition to the book growth, in August the Big Four reported a 0.7% market share growth.
This is on the back of another 0.5% increase in the previous month.
However, Bromley held his ground: "Non-bank lenders should look to their service proposition to establish a real competitive point of difference."
Earlier, FirstMac MD Kim Cannon told the MortgageMix the majors use aggressive pricing tactics to take control of the market.
"And the majors have proven in previous cycles that once they have control of the market they drop aggressive pricing and begin to dictate rates again," he added.
"Aggressive, anti-competitive tactics of the majors will be at the detriment of borrowers and the industry," he said.
ABA: Banks earn a 'relatively low' amount of revenue - Getting in early to deflect attention from the size of bank profits in the lead-up to the annual reporting period, the Australian Bankers' Association has claimed the revenue banks earn to be "relatively low".
AMP undercuts Big Four - AMP Bank has launched a variable interest rate product that is one of the lowest on the market - and lower than the four major banks.
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