Bouris returns to home loans market
By
Andrea Lavigne
|
14/12/2009 9:05:00 AM
|
1
comments
Yellow Brick Road executive chairman Mark Bouris is undercutting the majors with his range of new home loan products.
"Following the global financial crisis and the funding crunch, most non-bank lenders have either been forced out of business or swallowed up by the major banks so they've been able to raise interest rates to recover costs without much fear of losing market share," Bouris said.
"That's what Yellow Brick Road aims to change. With interest rates on the way back up, new lenders like us need to enter the market in order to keep the big banks honest and ensure that there's strong competition in the marketplace. Increased competition will mean that the big banks will have to think twice about raising interest rates beyond the official rate or risk losing market share to us."
Bouris, the founder and former chairman of Wizard Home Loans, is offering a standard variable rate of 6.34% - which could save borrowers with a $300,000 mortgage $80 a month, compared to Westpac's rate of 6.76%.
Bouris hinted earlier this month that he was planning something new to bring to the market. He spent six months negotiating funding from Gateway Credit Union.
Paul Thomas, CEO of Gateway said the new Yellow Brick Road home loans will give Australians access to greater choice.
"We have been in the mortgage business in Australia for more than fifty years, and we believe that the combination of our balance sheet and back office capabilities with Yellow Brick Road's brand and distribution network is a fantastic development for Australian home buyers," he said.
"This kind of competition is what's needed in today's marketplace in order to maintain downward pressure on fees, charges and rates."
Yellow Brick Road has 10 branches in Sydney and several more are scheduled to open in Queensland and Victoria in the next few weeks. He is aiming to have more than 100 branches before the end of 2010 and to make home loans available via the internet.
Bouris said the business has been strategically acquiring leading financial advisory businesses and putting in centralised systems.
"Yellow Brick Road is now at the stage where we can roll out our distribution network and make a significant impact on the home loan market."
Related stories:
Bouris working on 'home lending venture' - Yellow Brick Road chairman Mark Bouris has been working on a new home lending venture since February, according to a report by The Australian.
Latest Comments
Total:
1
comment(s)
Greg on
14 Dec 2009 12:32 PM
While I welcome bank anyone that expands the players in the market. However, in the end of the day as eveyone knows the standard variable rate is meaningless rate and in actual fact all the major banks are more competitive than YBR.