Loans placed and managed by Reynolds Private Wealth
P: Commercial Properties
R: Land/land development
The four pillar banks in Australia are amongst the most profitable banks in the world.
Commonwealth Bank of Australia (CBA)
National Australia Bank (NAB)
Australia and New Zealand Banking Group (ANZ)
The four pillar banks enjoy a greater market share of property lending in Australia ahead of the second-tier banks and the growing non-bank lending sectors. Australia has enjoyed a record 27 years of economic and population growth without a recession.
The Australian banking sector has recently endured a Royal Commission into the lending and service standards of the banks. The four pillar banks have come under heavy fire from all government and opposition government authorities for failing their Australian public and business clients across the board.
The pillar banks are also talking up ‘Principal & Interest’ loans to replace ‘Interest Only’ loans to the property investment sector. This is creating massive shifts by borrowers to the second-tier banks and to corporate non-bank lenders.
The Australians banks are dithering and delaying mortgage loan decisions to even their best customers for up to three months. This is driving quality borrowers to the non-bank sector.
Australia still has amongst the highest bank cash deposit rates in the world (circa 2.5%).
Australians also have similar higher first mortgage interest rates. For example:
Bank residential loan: 3.75% – 5.75%
Bank commercial loan: 6% – 7%
Non-bank residential/commercial loan: 7.5% – 9%
The opportunity exists to offer the most sought-after borrowers an extremely competitive rate and take on the Australian banks!