Australia’s major banks have collectively nabbed a greater share of the mortgage market, according to new research.
The latest AFG Mortgage Index found Australia’s major banks increased their market share to 82.1 per cent in June from 80.4 per cent in May.
Meanwhile, the non-majors saw their market share slip from 19.6 per cent to 17.9 per cent.
According to the mortgage index, the major’s market share grab was largely driven by refinancing which reached a record level for the year in June, as buyers scrambled to take advantage of the offers.
Two out of every five mortgages processed last month were for refinancing. The last time refinancing was at this level was in December 2010 when it touched 41.5 per cent.
AFG general manager of sales and operations Mark Hewitt said in all his years within the industry he has never seen the majors as hungry for business as they are currently.
“They have some very competitive offers on rates, fees and switching incentives, and people who already have mortgages are seeing the benefits of reviewing their arrangements. Where we get concerned is that non majors don’t necessarily have the balance sheets to compete. The official ending of exit fees will only further damage the prospects of creating an open market contested by a variety of different players,” he said.