CBA dominating investor mortgage market

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The Commonwealth Bank has seen a significant increase in its share of broker-originated investor loans, while two major banks continue to reduce their exposure.

CBA took 25.4 per cent of all broker-originated loans for property investment in February, up from 20.4 per cent in January and 17.7 per cent in December 2015, according to the latest AFG Competition Index.

NAB’s share of the investor loan market fell from 1.2 per cent in January to 1.1 per cent last month. AFG brokers sent 7.9 per cent of investor lending to NAB Broker in February, down from 8.3 per cent in January.

Westpac lost market share of broker-originated investor loans from 12.2 per cent in January to 9.4 per cent last month.

ANZ saw a modest increase over the period from 14.6 per cent to 14.9 per cent.

AFG general manager of sales and operations, Mark Hewitt, said fixed-rate home loans have seen a resurgence in recent months, and were a key driver for CBA’s 23.4 per cent share of all AFG broker-originated mortgages in February.

“When an organisation with the size and balance sheet power of Commonwealth Bank responds to competition, it can be very difficult for their smaller competitors to match them,” Mr Hewitt said.

“The broker channel is a highly effective and efficient channel for lenders to distribute their products and a competitive consumer offer is quickly taken up by brokers on behalf of their customers.”

[Related: CBA takes giant slice of broker business]

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