Rich enjoying price war
The price war between Australia’s lenders is benefiting Australia’s high net worth individuals, according to new research.
A poll of Loan Market Group’s mortgage brokers found people with assets in excess of $1 million or households with income above six figures - have been the main beneficiaries of the price war waged by major Australian lenders.
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Loan Market Group chief operating officer Dean Rushton said 48 per cent of the 250 brokers who responded thought high net worth clients had been offered the best deals while 29 per cent believed investors were most favoured.
“The current price war between the major banks may have the perception of helping all customers equally, the reality is that the greatest opportunities exist for clients who have a high net worth,” he said.
Mr Rushton said the strong asset base and high incomes of high net worth clients made them more attractive to lenders as they presented less risk and higher returns.
“There is no question that those who borrow more have more room to negotiate on their rates,” he said.
Mr Rushton said 20 per cent of the survey’s respondents said first home buyers were the biggest beneficiaries while only three per cent thought the self-employed were better off.
