Big four losing mortgage marketshare

Consumer preferences may be shifting in the mortgage market, with demand no longer so strong for loans from the four major banks. Home loan broker Mortgage Choice reported yesterday that big bank share of its loan settlements has fallen back to pre-financial crisis levels.

The group, which has a $36 billion loan book and had $8.6 billion of settlements in 2008/09, had a peak in “big four” settlements in the December 2008 quarter, at 75 per cent of total business.

The proportion of big bank settlements came back to 71 per cent in the March 2009 quarter and to 60 per cent in the June 2009 quarter.

Mortgage Choice chief executive Michael Russell said yesterday that big bank share fell to 57 per cent in the September 2009 quarter.

Lenders that are getting a bigger share of Mortgage Choice settlements are mostly second tier banks, including St George, BankWest, Suncorp, ING Direct and AMP Banking.

Source: The Sheet