Josh Frydenberg borrows from non-bank lender for Hawthorn home
Federal Treasurer Josh Frydenberg has heeded his own advice when it comes to taking out a loan, with the Member for Kooyong turning to an obscure lender.
Confidential
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The Member for Kooyong, and Treasurer of Australia, Josh Frydenberg has taken his own advice and turned away from the mighty big four banks when getting a loan for his Hawthorn family pad.
Although his choice of lender is interesting.
The jet setting treasurer who was in Washington early last week (telling us “there’s no need to panic” about the state of the global economy) has borrowed from what is broadly called a “non-bank lender”.
It is a category dubbed by some critics as “shadow banks”.
Business to non bank lenders has rocketed since the disgrace of last years bank Royal Commission as Aussies take their business elsewhere.
Mr Frydenberg’s family property — shared with wife Amie — was mortgaged seven years ago to Secure Funding Pty Ltd, which is owned by Liberty Financial.
Liberty Financial is one of the nation’s major non-bank lenders, since it was set up by entrepreneur and rich-lister Sherman Ma two decades ago.
Non-bank lenders have not been free of critics though.
There have been concerns such lenders exist outside the stringent regulations of banks and can attract riskier customers.
Two years ago Frydenberg’s own government moved to further regulate non-bank lenders — including Liberty, Pepper, Resimac and Firstmac — who were not being covered by the prudential regulator. Legislation improving oversight passed last year.
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The growth in these lenders continues. According to reports Liberty now makes up about 3 per cent of broker originated mortgages in Australia which puts it up there with AMP, ING and Macquarie.
Like many Aussies it appears the Treasurer found a better deal outside the big four.
It’s unclear if this was a topic of conversation on Friday, when Frydenberg caught up for a coffee in his Burke Rd, Camberwell, electorate office with Melbourne based bank bosses ANZ chief executive Shayne Elliott and NAB chairman Philip Chronican.