26 Nov 2021

Why Does the Government & APRA Support New Mortgage Entrants?

The Australian Prudential Regulation Authority acts as a regulator over the prudential financial system. APRA protects depositors and insurance policyholders. They also protect superannuation fund members. The goal is to promote financial stability.

In the current financial environment, banks and other financial institutions begin partnering up. The partnerships turn into consolidation. Thus the large banks and financial institutions become bigger. In 2018, the research found that four Australian banks hold the bulk of mortgages. Without competition, they determine most loan terms including those with high-interest rates.  

When new mortgage provider entrants enter the Australian mortgage market, they create competition. This provides relief for homeowners and homebuyers. If a new entrant is willing to provide lower interest rates, they will attract new clients.

To stay afloat, current lenders will reconfigure their plans. It forces a market correction. 

Current and future homeowners should know that Mortgage House takes pride in offering competitive loan terms across the board. We also work with investors, owner-builders, and refinancers. Our team has tools at their disposal that help them offer each applicant an array of low products. Products include low doc loans, relocation funding, and construction.

Once our loan understands your intentions, they assess your financial circumstances and options.

New Mortgage Provider Entrants Conclusion

APRA encourages new mortgage provider entrants. The new entrants provide more competition and benefits to homebuyers and homeowners. Both groups can rest assured that Mortgage House always seeks to help them accomplish their financial goals including obtaining a car loan.

For more information, contact our loan specialists.

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