The Reserve Bank has expressed concerns about the growing number of mortgage lenders in the market, calling it a risk to the financial system as it generates more credit into the housing sector.

80% of the home loan market is controlled by the big four banks: the National Australia Bank, the Commonwealth Bank, Westpac and the Australia and New Zealand Banking Group. Smaller lenders are slowly giving them a run for their money as they call upon the government to take the necessary measures to level the playing field. The RBA has cautioned against any policies that will boost home loan competition as this can come at the expense of financial stability, stating that the country has a sufficient stream of mortgage supply.

Read more about this on the Sydney Morning Herald website.

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Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.