Home owners plough cash into mortgages during lockdown (AFR)

Voluntary payments into mortgages more than doubled in July, August and September from the previous 12 months, data from non-bank lender Firstmac shows, raising the question whether consumers will save, rather than spend, extra cash handed to them in last week's budget.

Firstmac's analysis of its direct retail mortgage book shows the level of additional payments made by borrowers jumped to an average 10.2 per cent of the portfolio in the past three months, compared with the monthly average payment of 4.8 per cent last year.

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29 Sep 2020

RBA's cheap money is killing competition (AFR)

The Reserve Bank's $200 billion pool of cheap money has allowed the big banks to launch a fixed-rate refinancing blitzkrieg, luring customers away from smaller lenders and potentially causing irreversible damage to the competitive landscape, according to one of Australia's biggest non-bank lenders.

Kim Cannon, founder and managing director of non-bank lender Firstmac, says the federal government must broaden access to the RBA's term funding facility before it kills off competitors and sets us back a generation.

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