Non-major market share surges with refinancers
Refinancers are looking outside the major banks for home loan deals, new figures show.
According to the AFG Competition Index, non-major lenders have seen their share of the home loan refinancing market surge over the last quarter. By contrast, AFG general manager of sales and operations Mark Hewitt said major banks and their subsidiaries saw their share of overall mortgage sales fall 8.1% for the quarter to 64.1%.
“This is a post-GFC low,” Hewitt said.
Non-major lenders lifted their market share for refinancing to 43.2% over the quarter, Hewitt said.
“Suncorp with an increase of 3.3% and AMP with a lift of 2.1% led the way with refinancers, largely at the expense of the Westpac stable,” Hewitt said.
Hewitt said Westpac and its subsidiary brands saw their market share fall a combined 8.4% over the quarter.
Major banks also saw their share of the investor market eroded, with a 7% decline in market share for the quarter. Hewitt predicted that out-of-cycle rate rises in the wake of the Reserve Bank’s decision to hold the cash rate steady in December could deliver even more market share to non-major lenders.
“In the past week many lenders have been increasing fixed and variable interest rates. They have been targeting areas such as investment loans and this is often a trigger to encourage consumers to shop around,” Hewitt said.