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ISCOVER
Staff Reporter
Non-bank lenders, credit unions, mutuals and mortgage managers have successfully started to steal market share away from the majors.
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According to JP Morgan and Fujitsu’s latest Australian Mortgage Industry Report, while the major banks continue to represent the primary source of mortgage funding, their growth rate has slowed to high single digits from low double digits.
“The shift towards the major banks at the expense of other ADIs and wholesale lenders slowed over the course of 2010,” the report read.
“As predicted 12 months ago, there was a change in the growth dynamics amongst the major banks over the course of 2010 and this has continued during 2011. Specifically, following a period of extremely robust market share gains since the onset of the GFC, the Commonwealth Bank of Australia and Westpac pulled back on mortgage growth and have been growing below total ADIs since August 2010, reducing their three month annualised growth rate from approximately 25 per cent to 5 per cent over the last 18 months.”
