Banks increase mortgage market share

cent/ANZ/commonwealth-bank/

19 April 2013
| By Staff |
image
image image
expand image

Australia's big four banks have increased their market share in the mortgage space, according to mortgage broker, AFG.

It said the major banks and their subsidiaries had done this by taking advantage of improved

pricing conditions and their significant balance sheets.

Releasing the AFG quarterly Competition Index this week, the company said the share of loans processed by the company for major lenders increased from 75.7 per cent in September last year to 79.4 per cent last month.

"Driving the market share increase was major lenders' success in out-pricing their much smaller rivals in fixed rate loans — a product category that has soared in popularity in recent months," the AFG analysis said.

It said the major lenders accounted for 76.4 per cent of all fixed rate loans in September last year.

It said particular winners included ANZ, which saw its fixed rate loan share rise from 8.7 per cent to 15.1 per cent during the period, Bankwest, which increased from 1.2 per cent to 5.0 per cent and Commonwealth Bank, which grew from 18.0 per cent to 21.1 per cent.

Commenting on the index, AFG general manager of sales and operations, Mark Hewitt said the scale of the major lenders had given them an inherent advantage in sourcing funding.

"As the figures show, they've been able to leverage that advantage to the point that they now account for four out of every five new home loans overall," he said. 

"While this is good news for the majors, it's bad news for consumers who are deprived of the more competitive pricing they would enjoy if we had the same levels of competition seen in other developed economies."

He said the major lenders had made especially deep inroads into the first home buyer market.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

3 days 7 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 4 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

4 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5