Ensure you never miss an issue of the
real estate business bulletin
Majors grab greater share of the pie

Majors grab greater share of the pie

by Reporter 0 comments

Staff Reporter

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.


le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Majors grab greater share of the pie
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?