Media Release

Commonwealth Bank and Westpac lose market share in competitive home loan market

  • Commonwealth bank holds greatest owner-occupied loan market share, while also losing the most in the past year
  • Westpac leads in investment market share, with 31.7%
  • More borrowers are comparing home loans and switching to better deals

Summary of finder.com.au's analysis:

  • The total value of owner-occupied loans in March 2015 was $867.47 billion, increasing by over $60 billion from $806.53 billion in March 2014.
  • The total value of investment loans in March 2015 was $469.41 billion, increasing by over $49 billion from $419.95 billion in March 2014.
  • While Commonwealth Bank holds the greatest market share (26.9%) in the owner-occupied loan market out of all banks monitored by APRA, although losing the biggest market share out of the big 4 banks in the past year, of 0.7 percentage points (it was 27.6% in March 2014)
  • Westpac had the greatest market share (31.7%) in the investment home loan category, maintaining their position of market leader in March 2015 although dropping slightly (then 32)
  • Commonwealth Bank also had the biggest drop in market share in the investment home loan category, dropping 0.6 percentage points to claim 26.6% of market share in March 2015.
  • It’s not surprising Commonwealth Bank is losing market share, as its current standard variable interest rate is the third highest of the big four banks, sitting at 5.65%, compared to the lower (5.63%) rate being offered by both NAB and ANZ.
  • More borrowers are clearly comparing home loans and switching to cheaper deals where they can save potentially a significant amount of money. For instance, for every 0.25 percentage points for a $300,000 home loan, you could save about $50 per month.

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

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