Brokers have increased their market share of new residential loan approvals through non-major lenders, while their major bank market share declines.
Figures released by banking regulator APRA reveal brokers were behind 48% of the $14.6 billion new residential home loans approved by local non-major banks in the quarter ending March 2016. This represents a 2% increase in market share from the previous quarter.
Broker market share also rose to almost half (40%) of new housing loan approvals by building societies and to almost a quarter (23%) of new loans written by credit unions. This represents increases of 6% and 7%, respectively, over the quarter.
Over the same three-month period, however, broker market share of the major banks’ new home loan approvals declined 1% to 46%.
The four major banks, including their subsidiaries, still dominate the lion’s share of the residential mortgage market – making up 77% of all new residential home loans approved in the March quarter.
However, it is interesting to note that the total value of new home loans approved by the major banks declined by $13.5 billion over the quarter while our domestic non-major lenders increased the value of new home loans approved by $139 million over the first quarter of 2016.
Home loans through building societies and credit unions also declined over the quarter, by $114 million and $362 million respectively, as competition for residential mortgages between the majors and non-majors remains fierce.
The total value of the Australian residential mortgage market increased by 2% over the first quarter of 2016, reaching $1.4 trillion.