The Commonwealth Bank of Australia’s market share of the mortgage world is huge, with the bank financing one in four home loans in Australia over the 2013/14 financial year.
Brokers were behind 38% of the total home loan balance settled through the major lender during the year, which has increased slightly from the 37% share in the year to June 2013. Chief executive of CBA
, Ian Narev
told Australian Broker
brokers play a vital role in the financial services industry.
“Brokers help our customers by offering expert opinions on decisions that are of great importance to them, particularly with home buying, but also in business lending as well. Our view is that brokers play an important part in the way many Australians want to deal with financial institutions, and our bank is happy to have solid relationships with a number of brokers and will continue to invest in these relationships,” Narev said.
Owner occupiers made up majority of the bank’s home loan portfolio, with 58% of the balance. Loans to investors increased by 1% this year, making up 35% of total home loans, while first home buyer share decreased 2% to make up 12% of the home loan portfolio for the year.
Although the bank experienced a stronger home loan market this year, increasing its home loan balance by 7%, customers were less likely to stay on top of their mortgage repayments. The percentage of customers paying in advance dropped 4% to 76% over the year to June 2014.