Mortgage Loans, Home Loans, Bad Credit Home Loans

According media reports the Japanese banks are getting ready to enter the Australian home loan market in a serious way.

Industry players believe that international banks have the capacity to provide significant competition to local lenders especially if they decide to full pass on rate cuts to their home loans. Australian banks have already made it clear last year that future rate cuts may not be passed on to borrowers in full in order to absorb increases to funding costs.

According to Mr Bouris from Yellow Brick Road, at least three big banks, the $62 billion Mitsubishi UFJ Financial Group, $42 billion Sumitomo Mitsui Financial Group and $35 billion Mizuho Financial Group, are said to be considering operating on Australian shores.

But while Mr Bouris is bullish about what the Japanese banks can achieve in the Australian mortgage market, RESI’s Lisa Montgomery is not convinced.

Ms Montgomery believes that Japanese banks just as local banks are affected by the increase to the cost of home loan funds and will not be able to significantly undercut the interest rates offered on home loans by Australian lenders.