Australian banks Australian interest rates

Shadow banks pull mortgages, deposit run favours majors

Thursday, 2 April 2020

The relationship between brokers and lenders is being tested, after repeated moves by several non-bank providers to withdraw loan approvals from home buyers.

Mortgage brokers say lenders are even marooning pre-approved borrowers after they make home purchases, forcing them to make last-minute dashes to other credit providers to ensure clients meet settlement deadlines.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.