Recent findings published by AFG show that the country’s non-major lenders have increased their market share of the mortgage market from the Big Four banks, rising from 19.6 per cent in October last year to 24.3 per cent last month.

 

The increased proportion of the market translates to increase of $14.1 billion in the $300 billion industry.

 

The new AFG Competition Index shows that borrowers are turning to non-major lenders in the biggest numbers are those seeking to refinance their home loans. With that particular cohort’s use of non-major lenders increasing from 19.4 per cent last year to 28.7 per cent.

 

Non-major lenders have also made inroads among investors, who AFG identifies as traditionally the ‘stickiest’ of borrows because their tendency to leverage off properties which have already secured financing. With the number of investors using non-majors increasing by 16.6 per cent in October last year to 22.9 per cent last month.

 

Mark Hewitt, General Manager of Sales and Operations says: “A recent Government survey showed that about 45% of people are not confident that they have the best mortgage deal. This lack of confidence is translating into refinancing which in recent months has been working to the advantage of non major lenders. Suncorp remain the dominant non major, but we've also seen Macquarie Bank strengthen in recent months, and ME Bank has also made rapid inroads in a very short space of time.”

 

The full index can be found here