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The major banks have lifted their market share among all product types, the aggregator has revealed.
Australia’s big four major banks have continued their market dominance accounting for 60.2 per cent of mortgages lodged by Australian Finance Group (AFG) brokers during the December quarter, according to the latest AFG Index.
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The major banks’ market share increased from the 57.5 per cent recorded by AFG brokers in the previous quarter, while non-majors saw 39.8 per cent of AFG lodgements in the December quarter, down from the 42.5 per cent in the prior three-month period.
Additionally, the major banks’ took more market share across all product types, ending the December quarter with investment volume at 60.3 per cent, first home buyers volume at 71.9 per cent, refinance volume at 55.1 per cent, upgrader at 60.1 per cent, interest only at 59.3 per cent, and principal and interest volume at 60.6 per cent.
AFG chief executive David Bailey commented that while funding disparity is easing, the major lenders have still made up more ground on their non-major competitors.
“Volumes for first home buyers were up 3.7 per cent, investment loans up 3.6 per cent, refinance and upgrader volumes were both up 2.2 per cent and interest only and principal & interest loan volumes heading to the majors were both up 2.8 per cent,” he said.
Strong year for mortgages lodged
The index further revealed that AFG brokers wrote $83.4 billion in residential mortgages over the calendar year 2023, with $21 billion being lodged over the final three months of 2023.
Mr Bailey said the mortgage broking channel had “once again proven vital” in driving competition and guiding consumers with financing options following a year wrought by aggressive interest rate hikes and cost-of-living pressures.
“The latest results show lodgement activity was up 5.27 per cent on the same period last year, with the Northern Territory (up 12.49 per cent), Queensland (up 12.13 per cent), South Australia (up 8.81 per cent), and Western Australia (up 7.74 per cent) leading the way,” Mr Bailey said.
“Activity was slower in the country’s two largest states, New South Wales being up 2.51 per cent and Victoria up 2.89 per cent on the same period at the close of 2022.”
The index revealed the second-highest average loan size lodged by brokers as well, finishing 2023 with an average size of $623,975, slightly below the record $624,077 during 2Q22.
“Average loan sizes have increased across the country, with a national average increase of just under $19,000 or 3.14 per cent, likely reflecting the competitive conditions prevalent in the housing market at present,” Mr Bailey added.
[RELATED: AFG brokers wrote $83bn in mortgages in 2023]
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