Sorry Bouris; you're no big bank boogeyman, says major

by 22 Apr 2013
Westpac, on the other hand, is increasingly taking up funding its home loan book off the back of deposits.

“So, in a way, we’re talking slightly different sources of funding. But it would be interesting to see the comparison between the rates that they’ve got out there.”

Westpac says that, at this point, it doesn’t view the YBR/Macquarie partnership as a significant threat, but that the major lender ‘wishes them luck’.

“This is the dichotomy: Loads of people are going on about competition in the big four banks…There seems to be a fair amount of competition, but everyone is fighting for what, at the moment, is a smaller cake, because people are not borrowing as much.”

“So, you’ve got people banging on about ‘there’s not enough competition’ in the market place and then you’ve got people like Bouris and ME Bank and others out there being able to offer decent rates – and that’s for the good of the market. So when we say we welcome competition, we actually do.”  

Finally, argues John, it’s important to remember that Macquarie backed away from mortgages during the GFC – something many borrowers (and brokers) are unlikely to forget anytime soon and which could provide a stumbling block when it comes to customer growth.

“They’re dipping in now, at a time when they know they can make a buck out of it, whereas we’ve been constantly out there. Bouris sold; in effect walked out of the market and is now back in now that he can see a potential opening. And good luck to him. But [YBR] is tiny at this stage.”

Mark Bouris was invited to be interviewed for this article, but declined the invitation.

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  • by Jack 22/04/2013 10:42:06 AM

    More Bouris spin! Don't forget that during the GFC Macquarie bank left their customers high and dry with an extra 1% on their rate. A leopard does not change it spots. Beware!

  • by Rosa 22/04/2013 10:45:01 AM

    So now we have a second large Broker company selling out to a lender as per Aussie looks like YBR will be eventually be owned by a Bank oh dear! I really don't think the likes of Macquarie are going to scare the big 4

  • by Keith B 22/04/2013 10:57:40 AM

    If you live by the sword (price alone) you die by the sword...just ask many of the disgurunted franschaise owners of Wizard!.

    I think too YBR will have a problem sell vanilla based loans only via Macquarie. This means they will and remain always at the pricings set by Macquarie cost of funds and we know their history at the outbreak of the GFC