80% of first home buyers choose a big four bank

Nearly four out of every five first home buyers choose loans from the big four banks, according to the AFG Mortgage Index. The proportion of loans processed for non-major lenders in the first home buyer market fell to 21.8% in February, down from 24.8% the month before.

Non-major lenders have traditionally been stronger in the first home buyer sector than among other types of borrowers, such as investors, upgraders and people seeking refinance and non-major market share among first home buyers achieved a high of 33.0% in May last year.

Also in February, fixed rate loans rose dramatically in popularity, with 24.1% of new borrowers choosing to lock in rates, compared to 16.3% in January.

Source: Broker News