Institutional ownership is not only changing the dynamics of the financial advice industry, but also the Australian mortgage market, according to a non-bank lender.
Speaking to ifa, Firstpoint director Troy Phillips said licensing has restricted smaller lenders in gaining market share and has taken competition out of a market owned by the majors.
“The market is vertically integrated and CBA and NAB have a stranglehold on distribution,” Mr Phillips said.
“It is difficult for smaller lenders like Suncorp to get on the aggregation panels,” he said, adding that licensing has actually made brokers fearful of dealing outside their panels.
“It’s like Coles and Myer; if you want to get on the shelf you have to pay the price.”
Mr Phillips is the founder of mortgage lender Firstpoint NB and wholesale funding specialist MAS. He has been involved in the funding and distribution of Australian mortgages since 1985.
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