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Jessica Darnbrough
One of Australia’s major banks has taken control of the first home buyer segment, accounting for almost 40 per cent of all first home loans processed in December.
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According to the AFG quarterly competition index, the Commonwealth Bank of Australia and its subsidiary Bankwest now account for almost 40 per cent of all first home buyer loans, with CBA taking home 29.6 per cent of the market on its own.
CBA’s strong performance in December drove the overall market share of major lenders to a 2012 high of 77.5 per cent among first home buyers, the market sector in which non-major lenders are traditionally strongest.
Suncorp drew back significantly from the first home buyer market last year. Although its overall 5.5 per cent overall market share remained fairly consistent, its market share in the first home buyer sector declined from 16.4 per cent in January to 6.1 per cent by December.
By contrast, Keystart, a WA government owned lender, gave the most dynamic performance among non major lenders, growing market share from 0.1 per cent in January to 4.9 per cent by December.
AFG’s general manager of sales and operations Mark Hewitt said first home buyer markets in NSW and QLD are in a dire state following the withdrawal of grants.
“In both states, levels are about one third what they were before the grants were withdrawn,” he said.
“The first home buyers of today are the upgraders, the refinancers and the investors of tomorrow – without them, the future for the whole market is concerning. We need more lenders to follow the lead set by the CBA group and to focus on supporting this segment more.”
Overall, the non-major to capture greatest market share during 2012 was Macquarie, which doubled from 1.8 per cent to 3.6 per cent of all loans processed.
