Despite whispers suggesting Australia’s second tier lenders are losing their grip on the market, new data has revealed the opposite is true.
According to the latest monthly banking statistics from the Australian Prudential Regulation Authority, Australia’s second tier lenders currently boast a 13.1 per cent share of the mortgage market – up from 13.0 per cent last August.
Citibank’s Matt Wood told The Adviser that second tier lenders were aggressively looking to grow their mortgage books.
“The majors are undeniably dominating the market at the moment, but that won’t stop us competing for market share,” he said.
Last week, Citibank slashed its fixed rates in a bid to drive more volumes to the bank. The lender now boasts a three year fixed rate of just 6.99 per cent and a five year fixed rate of 7.44 per cent.
“We are currently pulling a variety of levers to drive business. The GFC forced us to pull right back from the market. But, that is now in the past and we want to let our brokers know that we are back and open for business,” he said.
"Ninety per cent of our business comes through the broker channel. We see them as our business partners and we want to help them grow their business.”