Specialist lenders grow market share as competition heats up
While major banks still dominate the lending landscape, smaller, specialist lenders are growing their share of the market.
According to the latest data from the Australian Prudential Regulation Authority (APRA) analysed by Agile Market Intelligence, specialist lenders have grown their market share of mortgage lending between the June and September quarters. For instance, St George rose from 3% to 5% while ING grew from 3% to 4%.
This rise in competition is good news for borrowers. With the pool of available lenders becoming more competitive and innovative, homebuyers have greater access to finance to expand their portfolios and build long-term wealth.
"Major banks maintain dominance on consumer lending products. But for home loans, we see a healthy market share for non-majors like St. George, ING, and Macquarie, that translates into large loan books in the mortgage space," said Agile Market Intelligence director Michael Johnson.
Smaller lenders can offer borrowers more flexibility, often with faster turnaround times and solutions tailored to complex borrowing needs.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.