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October 02, 2005

Major Banks eye $300b in Home Equity

Major banks are all set to make a bid to grab $300 billion locked up in home equity. Under the pressure from their competitors, banks are now trying to undo the damage by lowering term-loans. Bank of Queensland lowered its one, two, four and five-year term loans. It lowered its three-year term loan a few weeks ago. Many other banks followed its suit.

It is reported that European giant HBOS is going to enter into the mortgage market. HBOS owns BankWest and wants to grab the deposit market in Ireland. A leading bank ABN Amro already acknowledged that HBOS could be threat to its rivals in this sector. Although the reverse mortgage sector is now a key target for many of the banks, only St George and the CBA have made any attempt to cater for the growing demand. thecouriermail.news.com reports:

Non-banks like Bluestone and Mariner have also started issuing reverse mortgages. ABN Amro estimated home equity in the over-60s exceeded $300 billion and was expected to rise to $700 billion within 10 years.

Read More: Banks eye $300b in home equity

Posted at 04:12 PM in Statistics |

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