Login
ISCOVER
Non-major lenders have tripled their market share of new fixed-rate loans, according to AFG’s quarterly Competition Index.
The index shows that between February and November 2013, non-majors' share of the fixed rate market increased from 13.6 per cent to 42.3 per cent, before falling slightly to 38.2 per cent in December 2013.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The non-major lenders’ overall share of all new home loans peaked at 27.7 per cent in November 2013, the highest figure AFG has recorded in the three years since the company has been monitoring competition.
Mark Hewitt, general manager of sales and operations, said 2013 has seen competition heat up in a way not experienced since before the GFC.
“While the loan books of major lenders ensure their continued dominance, it is great news for borrowers that they now have much wider choice,” Mr Hewitt said.
“The non-majors have been agile and focused on service delivery, targeting specific borrowers and using very attractive fixed rate deals to great effect.”
The non-majors’ collective market share of all borrowers seeking refinance rose to 35.4 per cent in November, up from 25 per cent in February, while their market share also grew in the first home buyers' segment, from 25 per cent in January to 29 per cent in December.
