Mortgage market is competitive again: AFG

A new index released by Australia’s largest mortgage broker, AFG, shows that home loan refinancing is at a record high and that lenders outside the Big Four are reaping the benefits.

Refinancing now accounts for 37.2% of all mortgages written. Westpac, NAB, CBA, ANZ and their subsidiaries have an 82% share of this pie, down from 91% 12 months ago.

“We went through a period where there were very few alternatives for borrowers, as the second tier … had funding restrictions brought on by the GFC,” said AFG general manager of sales and operations Mark Hewitt. “That is freeing up somewhat … so we are seeing them come into the market with some quite competitive offers on price and product features.”

Hewitt cited AMP, Suncorp and ING as particularly innovative lenders in the current market.