Banks grow market share - Jessica Darnbrough

According to RFi’s latest Mortgages Market Wrap, the nation’s banks managed to grow their market share of overall owner-occupied lending commitments by 0.8 per cent to 92.5 per cent.

Macquarie Bank enjoyed the greatest increase in market share, with the second tier lender increasing its owner occupied loan book by 4.2 per cent to $1 billion.

Westpac, NAB and Bankwest also managed to grow their market share, with each lifting their stake in the market by 0.1 per cent.

But while Australia’s banks are going from strength to strength, the nation’s non-bank lenders continue to face major challenges.

“Non-bank lenders have found themselves in a difficult space. Funding is tight, which is stopping them from competing on price with the banks,” Smartline’s Chris Acret told The Adviser.

“That said, the non-banks still offer a very competitive service proposition and Australia’s brokers are still keen to support this channel. If they can get all their ducks in a row, I think we will see them grow their market share once more.”

Mr Acret said non-banks played a very important role in the ongoing health of the mortgage market.

“Non-banks originally introduced competition into the mortgage market. They continue to play an essential part in the mortgage space.”