Powered by MOMENTUM MEDIA
subscribe to our newsletter
More innovative products needed: poll

More innovative products needed: poll

An overwhelming majority of Mortgage Business readers believe Australian lenders should develop more innovative products.

Of the 120 surveyed respondents, 78 per cent (94 readers) votes ‘yes’ when asked whether Australian lenders need to develop more innovative products, while 22 per cent (26 readers) did not believe more innovative products were necessary.

The question has divided opinion among industry leaders.

Advertisement
Advertisement

AFG executive chairman Kevin Matthews told Mortgage Business that while the mortgage distribution space is as competitive as he has ever seen, new products are not coming to market.

“I just don’t think there is anything left they can offer in terms of product features that would attract the borrower or make their deal look any different than anyone else’s, to be perfectly honest,” Mr Matthews said, adding that Australia’s mortgage market is the most complicated in the world.

“Our products are extremely complex compared to other developed countries.

“There are not many other countries that have offset options and all of the features that we provide on our mortgages.”

However, FBAA chief executive Peter White disagrees, telling Mortgage Business that lenders must innovate on product functionality.

“I don’t agree the innovation limit has been reached, since there are many lessons we can learn from overseas markets and also our own experiences in Australia,” Mr White said.

“For example, in the US they have 30-year fixed interest rates, as such, which you can break without cost,” he said.

“I’m not saying we should do this, but it is an example of an innovative product we don’t have here.”

Mr White singled out lender's mortgage insurance (LMI) as an area where lenders could be more innovative.

“One area of innovation I do strongly believe in is the portability of LMI insurance,” he said.

A product with this function would increase the fluidity of the refinance sector, he added.

 

More innovative products needed: poll
mortgagebusiness

 

Latest News

The prudential regulator is looking at revising its guidance on the serviceability assessments that banks perform on residential mortgage ...

The property industry has welcomed the re-election of the Coalition government, declaring that concerns over the opposition’s proposed cha...

BNK bank has reported home lending growth via both its direct and third-party mortgage businesses. ...

FROM THE WEB
podcast

LATEST PODCAST: How the mortgage sector will be impacted by the federal election

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.