With the recent withdrawal of GE Money from the residential mortgage market in Australia, many people are asking how this will affect them. It also raises the question, “which lender do I give my business to?”
Of course the continual tightening of lending criteria has already limited your choice of lender, but if you have a good credit history and do not want to borrow more than 85 percent of the purchase price of your property, you do still have a choice.
Federal Government Deposit Guarantee
So what does the Federal Government’s guarantee on bank deposits mean for you? Are non-bank lenders safe? With the major banks now receiving over ninety percent of all loans should I follow the trend? If my lender pulls out of the market, like GE Money, what happens to my loan?
