Caught this article online this morning.
Seems Macquarie and Yellow Brick Road may be gearing up to run at the bigger banks.
If this transpires it will be interesting to see if there is a new banking wave in Australia or they just fall into line with the others and any competition that exists is on paper only.
Macquarie already provide mortgage products to the market. I wonder how different their products will be with this deal.
They are obviously trying to tie themselves with someone with some sort of reputation and distribution network. Though how successful it will be, only the future will tell.
Cheers
Tom
The other concern i would have is they want the business whilst it is quiet and they have funds to lend but when times get touch or their is another squeeze on credit i can see them running away again like they did in 07/08.
I had clients who were told we can't settle your loan next week as we have run out of funds so could we do it next month.
Course if they do i welcome the additional competition.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I have a feeling Yellow brick road will just white label Macquarie's loan, offering the same deal that Macquarie is offering right now but maybe at a slightly cheaper rate. ( Tier pricing based on volume)..which will have no effect on the big 4…as Macquarie's credit policy is very mushy and loose at the best of times..
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
No doubt as brokers you guys see things a little differently to the rest of us.
There is no doubt Macquarie did themselves no favours with brokers and clients during the GFC days. No doubt there are some brokers, in particular, still smarting from their Mac experiences last time around. It will be interesting to see what sort of structure the Yellow Brick Road/Macquarie alliance will look like.
I guess I am a bit of a 'glass half full' sort of person and would like to think little things passing on full rate reductions might become more common place with competition.
No doubt a bit simplistic but…………………………. my glass is half full.
a new player, sure more completion is great but to be a true player? Only time will tell
the big. 4 banks have a strong brand and offer more the. Just cheap interest rates
i think their bad Past will create a problem.
Their timing? Pretty bad I would say, after the collapse of banksia I would say more people are going to be cautious in trying some thing new
Apologies for any grammar mistakes using an iPhone
Jpcashflow | JP Financial Group
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Email Me | Phone MeYour first port of call in finance :)
That article is nothing but great marketing by Mark Bouris. This sort of deal has been Mac Banks strategy for some time, if you go to their offices they have one lot of desks for credit people assessing Mac Bank labeled loans, next to them are a group of people assessing Aussie Home Loans labeled loans, and they used to have a very small and quiet area for Virgin Money loans. Mac Bank also own 20% of Vow Financial, which is a sizeable aggregator with 600 broker groups. Vow do not have a white label product at the moment because they only want something under their brand if it is truly differentiated from what is already in the market. If Mac Bank were going to get really aggressive, in terms of pricing, they could easily get a lot more business providing a discount product through the Vow network than they will get through YBR.
Good on Mark Bouris though, he is a marketing genius.
@ Michael – 100% on the money. Macquarie needs to tighten their policy if they want to get more business. Its a bit like rocks and diamonds with them.
TheFinanceShop | Elite Property Finance
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Email Me | Phone MeResidential and Commercial Brokerage
Here's an article from a broker website today
http://www.theadviser.com.au/breaking-news/7937-ybr-to-challenge-majors
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Well he does have the backing of the marketing machine channel 9 who hold a vested interest in the company. Watched the biased ACA puff piece they did on him and the firm. Grabbing a family who screwed up by fixing their loan at 8.4% and then magically saving them thousands of dollars isn't exactly rocket science. Even a brain dead monkey could have done that. However they made it sound as if YBR were the messiah.
Great publicity blowing their own trumpet, will win them some market share, but a fifth pillar. Please!
Cheers
Tom
Gee sounds like I missed a terrific edition of ACA.
Tom is absolutely right. What they 'forgot' to also mention is that the rate is applicable to LVR's below 80%. Another thing that a lot of people also miss which is very important is the policy of the lender. What if the investor wants to development and build multiple dwellings, or is a owner builder or has a special type of security or is located in a area where only a certain amount of money can be borrowed. It is frustrating when these stories covering nothing more than just the interest rate.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
YBR (Macquarie funded) Comparison rate is 5.77-6.00%
Compared to Macquarie which is 5.74%…
Higher fee's and set up ..Spin doctors.
http://www.macquarie.com.au/mgl/au/personal/loans/home-loans/compare-our-home-loans
http://www.ybr.com.au/docs/YBR_empower_comparison_rate_schedule_20121102.pdf
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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