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ISCOVER
Staff Reporter
Australia’s non-majors are taking it to the big guys, with the lenders significantly increasing their market share over the last 12 months.
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According to AFG’s latest Competition Index, non-majors have grown their market share 25 per cent over the last 12 months – up from 22 - 23 per cent in 2011 to 28 - 29 per cent today.
Suncorp has emerged with the biggest increase in market share amongst first home buyers, from 10.1 per cent in May 2011 to 14.8 per cent last month, having peaked at 17.4 per cent in February 2012.
This figure is well above the market share of three of the ‘Big Four’ banking brands for April 2012 – with ANZ recording a market share of 8.9 per cent, while Westpac held 8.0 per cent share and NAB had just 1.5 per cent share.
CBA on the other hand, consistently performs well in the first home buyer market, recording a market share of 22.9 per cent last month.
The Index found ING DIRECT is another non major lender strong in the first home buyers market with a market share in April of 4.5 per cent.
AFG general manager of sales and operations Mark Hewitt said these dynamics are significant for the mortgage market of the future.
“First home buyers are a very important part of the overall market, both because they create momentum up the property chain and also because their attitudes signal future trends. Today’s generation of first home buyers are very willing to look outside the majors for their mortgage needs. This is good news for competition going forward,” he said.
Borrowers refinancing their properties have also shown a greater willingness to move outside the majors, with non-majors growing to a market share of 24 per cent – 26 per cent over the past three months, compared to 21 per cent for the last six months of 2011.
