A new report has highlighted the stranglehold the big banks have over the domestic mortgage market, with the bulk of residential lending now in the hands of just two of the big four banks.
According to Core Data’s Australian Mortgage Report for Q2 2009, released today, in March 2009 the big four banks, post Bankwest and St George acquisitions, held 72.2 per cent of residential lending. This was up from 57.5 per cent just one year earlier.
CBA now holds more than half – 51 per cent – of mortgage fund net flows, according to data from the three months to March (excluding new subsidiary Bankwest, but including its purchase of GE loans).
Westpac accounted for 23.8 per cent of net mortgage flows.
This compared to Bankwest’s 9.4 per cent, St George’s 7.2 per cent, ANZ’s 10.4 per cent and NAB’s 3.4 per cent.
Combined, the post merged Big Four banks account for 105.2 per cent of the net flow, recording greater than 100 per cent due to the diminishing books Macquarie (5 per cent) and Bendigo and Adelaide (2.9 per cent).