Your home loan is 14 times more likely to be from a bank
Australian mortgage habits are slow to change.
Australians continue to turn to banks for home loans, with mortgages from banks amounting to more than 14 times as much as those taken out from building societies, credit unions and other lenders.
The latest figures from the Australian Bureau of Statistics (ABS) show that in March 2017, banks made a total financial commitment of $20,166,616,000 for owner-occupied housing. The total across all other sectors was $1,395,204,000. Permanent building societies accounted for $192,799,000, wholesale lenders accounted for $430,461,000 and the sum for all other lenders was $771,944,000. Total value of commitments in the sector rose 0.1%, meaning essentially no change.
The dominance of banks is not a new trend, as you can see in the chart below:
Interest rates on offer for home loans vary widely across providers, so it's always sensible to compare what's on offer before taking out a mortgage.
Major banks were a key target in the 2017 Budget, with proposals to introduce a new levy for major banks that could raise $6.2 billion over four years.