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Jessica Darnbrough
Despite a reported strong resurgence from Australia’s non-major lenders, the big four continue to retain their stranglehold over the mortgage market, new data has revealed.
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According to the Australian Prudential Regulation Authority’s latest Monthly Banking Statistics, the majors continue to account for approximately 80 per cent of all mortgages written.
As per the September data, Australia’s major lenders wrote 81.1 per cent of all mortgages written for housing investment and owner occupation.
Similarly, the big four were responsible for approximately 80 per cent of all mortgages written this time last year – suggesting their stranglehold over the mortgage market remains firmly in place.
This is despite ongoing data that suggests Australia’s non-majors are writing more business today than 12 months ago.
Last month, data from AFG showed Australia’s non-major lenders were going from strength to strength, with the banks growing their market share to 24.3 per cent in September.
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.
