One in five home loans with non-bank lenders

Non-bank lenders currently account for one in five new home loans, twice as many as in the 1990's, but down slightly from the housing boom peak. A total of 63,599 new loans were written in July, down 4.1 per cent from the previous month, and this may fall further as the effects of the August rate rise are felt. Less than 15 per cent of the new borrowers opted for a fixed rate meaning that around 55,000 were hit with a rate increase in the first or second month of their loan.