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Jessica Darnbrough
Australia’s banks continue to dominate the mortgage lending landscape, with the sector increasing its market share by 1.1 per cent throughout June.
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According to the latest Australian Mortgage Market Wrap by RFi, Australia’s banks settled $12.603 billion in loans in June.
Despite this jump in market share over the last month, the banks’ share of the value of owner-occupied lending commitments decreased by 0.4 percentage points over the last 12 months – down from 91.8 per cent in June 2011 to 91.2 per cent in June 2012.
Moving forward, however, the Market Wrap argues that Australia’s banks will continue to see their market share increase rather than decrease as consumer perception that larger financial institutions are “safer” now seems to be “entrenched” in the borrowers’ psyche.
The Market Wrap also argues that it is Australia’s big four that will really continue to dominate the mortgage market – pushing their market share higher still.
According to the report, NAB’s market share lifted once again in June – increasing 0.1 per cent to 17.5 per cent.
This is not the first time National Australia Bank has managed to lift its market share, with the bank growing its percentage of the mortgage market almost every month this year.
Overall, the big four account for more than 80 per cent of all mortgages written, with CBA boasting the greatest market share of 23.9 per cent.
Westpac is not far behind, with a market share of 22.5 per cent, while ANZ rounds out the big four, accounting for 16.5 per cent of all mortgages written.
