Liberty gives exposure assurance
Recent nervousness about a property bubble has prompted non-conforming lender Liberty Financial to declare it's not exposed to the potentially vulnerable inner-city unit market.
There have ben concerns that non-conforming lenders have been picking up business among overcommitted borrowers rejected by mainstream lenders.
Liberty's corporate relations manager Helen Toy said the group's target market is properly managed credit risk and not security risk, and it doesn't lend on risky assets. Liberty's total loan book contains only 18 Melbourne inner-city units and 21 in Sydney, Ms Toy said, which comprise less than 0.01 per cent of it portfolio.
Liberty hasn't lent on inner-city apartments as we're concerned about their resale value due to oversupply, Ms Toy stated.