New figures show non-major lenders taking their largest mortgage market share in the June quarter.
These figures also show that not only did non-majors take 41% of the mortgage market share, but Victoria outpaced NSW in the total volume of mortgages lodged.
The findings come from financial product comparison site comparethemarket.com.au, which analysed the AFG Mortgage Index for that quarter.
The Index compares 28,896 mortgage lodgements against previous quarters, going back to the first quarter of FY2013.
Non-majors also reached a milestone market share for most borrower categories and loan categories.
Non-majors took 41% of the market share of total interest only loans, 41% of principal and interest loans, 46% of loans for refinancers, 43% of loans for investors, and 40% of loans for upgraders, the sector’s largest market share in the six years recorded.
In addition, Victoria reached a record $5billion in total mortgage lodgements over the last quarter, up 10% from the third quarter of FY2018. NSW only saw a 4% growth over the same period, from $4.79 billion to $4.96 billion.
Comparethemarket.com.au compared NSW and Victoria’s total loan volumes against the average mortgage size, to reveal that Victoria saw 1813 more mortgages lodged than in NSW.
Rod Attrill, general manager of banking at comparethemarket.com.au, said, “The results for the non-majors point to the recent tighter lending criteria by the major banks, potentially encouraging borrowers to approach smaller lenders, and a general growth in borrower trust of non-majors.
“The findings from the banking royal commission have certainly created some uncertainty in the market around the big four.
“In relation to our two biggest states, Victoria’s population growth has outpaced that of NSW, potentially contributing to its growth in loan volumes. Melbourne is also seeing an increase in residential building growth, with 12 of Australia’s population and construction ‘hotspots’ located in the Victorian capital.
“It’s also interesting to note that total loan volumes were higher this quarter than the previous quarter, despite the negative sentiment in the industry about our property market.
“Some industry experts have also forecasted that interest rates may go up in 2019, yet the 21% fall in fixed rate mortgages last quarter might mean that borrowers believe interest rates will go down further.”
