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Majors gained market share in September 2022 quarter: MFAA

by Adrian Suljanovic8 minute read

The proportion of broker-originated home loans settled with the major banks rose in the September 2022 quarter, according to the MFAA.

The Mortgage and Finance Association of Australia’s (MFAA) latest Industry Intelligence Service (IIS) report revealed that the major banks and regionals owned by the major banks gained market share as a result of a reduction in other types of lenders, white label loans, credit unions and mutuals, and international bank segments.

According to the IIS report, major bank market share grew by 6.0 percentage points in the September 2022 quarter, up from 41.2 per cent on the June 2022 quarter to 47.2 per cent. In addition, regional banks aligned with the major banks rose by 0.5 per cent points during the same period from 12.0 per cent to 12.5 per cent.

All segments in the value of broker-originated home loans settled per lender achieved growth in April to September 2022 when compared to the previous six months except for the “other types of lenders” and international bank segments.

The IIS report noted the standout double-digit growth by the regional banks owned by the majors and the non-bank segments, which had gains of 13.8 per cent and 10.8 per cent, respectively.

The major banks and independent regional banks recorded growth at 4.0 per cent and 9.3 per cent, respectively, while credit unions and mutuals rose by 1.8 per cent and white label lenders rose by 3.6 per cent.

Momentum Intelligence’s Broker Pulse survey from February 2023 found that the Commonwealth Bank of Australia (CBA) took the top spot as the most commonly used lender at 43 per cent, closely followed by ANZ at 42 per cent.

Non-major banks Macquarie Bank (39 per cent) and Westpac subsidiary St.George Banking Group (33 per cent) took the third and fourth spots of most commonly used, followed by the remaining two major banks Westpac (29 per cent) and NAB at 28 per cent.

Pepper Money and Liberty Financial were the most used non-bank lenders, at 12 per cent and 10 per cent, respectively.

According to the Broker Pulse survey, product pricing remained the leading factor for brokers when it came to choosing non-major banks, while for major banks, client circumstances remained the leading factor for brokers with product pricing coming in as the second most common priority.

The survey noted that brokers continued to turn to non-banks for clients based on the client’s circumstances.

[RELATED: Channel settlements exceed $180bn for 1st time: MFAA] 

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