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Big banks rule mortgage market

by Staff Reporter10 minute read
The Adviser

By: Kate Miller

New figures from APRA show the big four banks are continuing to dominate the mortgage market while non-bank lenders are losing market share.

According to the data released on Friday, the major banks held 76.5 per cent of all outstanding mortgages in June 2010.

Furthermore, 50.6 per cent of all outstanding home loans were held by either CBA or Westpac, while non-bank lenders and mutuals held just 8.60 per cent of outstanding loans in June 2010 - down from 10.4 per cent in June last year.

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Connective principal Mark Haron told The Adviser the figures were not a surprise.

"It's certainly a trend we've been seeing," he said.

While the figures showed CBA and Westpac had a clear domination of the market, Mr Haron said they also showed a swing in business to ANZ and NAB which would be further evident in the next round of figures.

ANZ grew its market share from 12.50 to 12.90 per cent over the year while NAB increased its pool of outstanding loans to 13.10 per cent, from 12.90 per cent one year ago.

"We're noticing a swing to ANZ and NAB as a result of them repositioning themselves, in terms of pricing and service," he said.

Mr Haron also commented that while non-bank market share was weak, he had recently witnessed a very slight shift to non-bank lenders which should come through in upcoming data.

"Brokers do seem to be making the effort to ensure consumers are looking at all the options," he said.

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