Non-major banks grabbing home loan refinancers
Refinancers are looking outside the major banks following the RBA’s August rate cut, new figures show.
The monthly AFG Competition Index seen non-major banks lift their share of the refinancing market from 31% to 36% over the last quarter. AFG manager of sales and operations Mark Hewitt said ING DIRECT has seen the biggest increase, lifting their refinancing market share from 3.1% to 7.8%.
“In terms of overall mortgage sales, ING are at a 12 month high on 5.2% of the non-major market. This is at the expense of Suncorp, who are now sitting at 1.8% after a peak of 7.6% of the non-major market back in March of this year,” Hewitt said.
Hewitt suggested that refinancers were looking beyond the major banks following their decision in August to pass on only a portion of the Reserve Bank’s 25 basis point cut. Majors still dominated the market, however, with fierce competition for investors.
Commonwealth Bank led the market for investment lending at 19%, with ANZ at 15.7% and Westpac lifting their share to 15.2%.
“Westpac also cemented their position as the lender of choice for first home buyers. They now fund nearly 24% of all first home buyer loans,” Hewitt said.
Collectively, major banks accounted for 72.2% of all home lending for August, AFG said. While non-major lenders increased their market share for refinancing, their overall market share fell slightly, from 28.7% in July to 27.8% in August.