Why does the government & APRA support new mortgage provider entrants?
There is an interesting relationship between the government and the APRA as they both outwardly support new mortgage provider entrants. The Australian Prudential Regulation Authority oversees the regulations of credit and banking institutions throughout the country to ensure that they are fair to both depositors and insurance policyholders.
The government works closely with APRA to ensure that everything is fair and the market is stable. The housing market can be confusing to navigate and having multiple mortgage provider entrants is actually a good thing! This type of fair competition allows for market correction, if it is needed in the first place.
Supporting new mortgage provider entrants is a healthy form of competition that leads to more home buyers interested in the housing market. Because of the unspoken competition, this also leads to low and competitive interest rates as new mortgage entrants try their best to entice borrowers and homebuyers with their offers.
Using online tools and resources, like mortgage calculators, borrowers can try their best to find a budget that works well for them, including a desired interest rate. Since there is so much competition because of the government and APRA, this gives the upperhand to consumers and borrowers as they can shop around for a good loan company.
Government and APRA New Mortgage Provider Entrants Conclusion
New mortgage provider entrants are entering the housing market ready with competitive interest rates and bundles. Mortgage House experts can offer competitive interest rates for personal, car, and home loans. These rates are publicly displayed on our website as we value transparency.