Borrowers’ preference for non-big four lenders has continued to steadily grow, according to data from online mortgage broker Lendi.
Only 20% of new and refinanced owner occupier loans settled on the Lendi platform in 2019 were with the four major banks – down from 30% the year before.
In the first half of 2019, 24% of owner occupiers settled with a big four bank; since July, this dropped to just 17%.
Lendi executive director David Hyman said, “As the RBA started cutting the official cash rate and the big four came under fire for not passing on the full cuts, a wave of borrowers were already showing a preference for smaller lenders and this has only strengthened as the year rolled on.
“We expect the popularity of smaller and newer lenders to strengthen in 2020, particularly as the neobank category continues to thrive and win over consumers who’ve had enough of the big institutions.”
On the Lendi platform, the big four banks started the year on a high with a 33% share of the owner occupier, new and refinanced loans in January. Their share dropped to a low of 16% in August, before climbing back to 20% in October and closing out November at 17%.
Refinancers have lead the charge away from the big four. Down from 26% in 2018, just 15% of owner occupiers chose to refinance with a big four lender in 2019.
While during the first six months of the year, 19% of refinancers went with a big four bank, a mere 12% of loans refinanced since July.
For new purchase loans, 31% of owner occupiers on the Lendi platform chose a big four bank in 2019, compared to 40% in 2018.
