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ISCOVER
Staff Reporter
AFG has identified Suncorp Bank as the strongest non-major bank in terms of market share.
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According to AFG’s latest Competition Index, the lender had 7.1 per cent of the overall mortgage market and was particularly strong amongst first home buyers, where its share was 10.1 per cent.
Of course, Suncorp Bank is not the only non-major performing strongly, with the data revealing Macquarie Bank and ME Bank have also made some significant inroads of late.
Macquarie Bank’s market share is 2.3 per cent overall, and 3.4 per cent among investors, while ME Bank has seized a 1.0 per cent market share in the past five months, particularly benefiting from refinancers, where its market share was 1.5 per cent.
Speaking about the results, AFG’s general manager sales and operations Mark Hewitt said all of the non-majors had performed incredibly well over the last 12 months – with the group of lenders increasing their collective market share from 19.6 per cent in October 2011 to 24.3 per cent in September 2012.
Mr Hewitt said borrowers who are turning to non-major lenders in greatest numbers are those seeking to refinance their home loans.
In October last year, only one in five borrowers refinancing used a non-major lender.
That figure increased to 28.7 per cent last month – nearly a 50 per cent increase over the year.
“A recent government survey showed that about 45 per cent of people are not confident that they have the best mortgage deal,” he said.
“This lack of confidence is translating into refinancing which in recent months has been working to the advantage of non-major lenders. Suncorp remain the dominant non major, but we’ve also seen Macquarie Bank strengthen in recent months, and ME Bank has also made rapid inroads in a very short space of time.”
