REIA slams competition
(30 March 2010 – Australia) The President of the Real Estate Institute of Australia (REIA), David Airey, has slammed unbalanced competition in the finance market during a meeting with the Federal Housing Minister, Tanya Plibersek.
Mr Airey advised the Minister about the lack of competition in mortgage lending, with the big four lenders now accounting for over 80 percent of the home lending market.
Mr Airey told the Minister that as a result it has severely depleted competition and funding for smaller banks such as Bendigo Adelaide and Bank of Queensland, as well as other non-bank lenders who suffer a huge disadvantage with funding costs.
Mr Airey said major banks were ‘continually moving the goal posts’ with long delays in loan approvals, tightening of credit, lowered Loan to Valuation Ratio’s (LVR’s) and changed credit assessment criteria, preventing or delaying loan approvals.
Restricted and changing lending practices by the big banks works against the Government’s aim to increase housing supply in Australia. This is exacerbated by planning delays, restrictions and costs at the local government level, Mr Airey highlighted.
Mr Airey went on to say that the REIA will be making a submission into the Senate Inquiry over the lack of access small businesses have to finance.
Mr Airey told the Minister that as a result it has severely depleted competition and funding for smaller banks such as Bendigo Adelaide and Bank of Queensland, as well as other non-bank lenders who suffer a huge disadvantage with funding costs.
Mr Airey said major banks were ‘continually moving the goal posts’ with long delays in loan approvals, tightening of credit, lowered Loan to Valuation Ratio’s (LVR’s) and changed credit assessment criteria, preventing or delaying loan approvals.
Restricted and changing lending practices by the big banks works against the Government’s aim to increase housing supply in Australia. This is exacerbated by planning delays, restrictions and costs at the local government level, Mr Airey highlighted.
Mr Airey went on to say that the REIA will be making a submission into the Senate Inquiry over the lack of access small businesses have to finance.
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