Non-major lender market share hits all-time high
Investors have driven a move away from the major banks.
New figures from mortgage broker AFG show non-major lender market share of new home loans hit a record high of 40.97% in May. The result follows on a five-month decline in market share for Australia's four major banks.
AFG general manager of broker and residential Mark Hewitt said investors are turning to non-major lenders in greater numbers.
"The major lenders have been pulling back from the investor market to meet regulatory caps and as a result the non-majors are filling the gap in the market. Non-major market share among investors rose from 33.52% in February to 42.35% at the end of the quarter, an increase of 26%," Hewitt said.
Hewitt said fixed rate borrowers are also more likely to choose non-major lenders, with 32.57% of fixed rate borrowers shunning the major banks.
"ING and Suncorp are the non-major lenders of choice for fixed products, with their share of the fixed rate market sitting at 6.08% and 5.39% respectively," he said.
Macquarie was the most popular choice for those refinancing with a non-major, with an overall market share of 5.63% but a refinancing market share of 8.33%.
"Virgin Money has made rapid inroads in the short time they have been on AFG's panel, with their share of the market in the same category rising from 0.1% to 0.86% in three months," Hewitt said.