More borrowers choosing big 4 than ever before
Mortgage lending figures for May 2011, compiled by the Australian Bureau of Statistics, show that Australian banks accounted for 92.5 per cent of housing finance, the highest market share figures ever recorded.
Mutuals had 6.3 per cent and non-bank lenders wrote 1.2 per cent of mortgages in May.
The dominant market share of the banks comes with a price tag, with the standard variable rate average over the four major banks being 7.79 per cent in May, which is generally subject to discounting.
The banks out-paced the credit unions on an average of 7.32 per cent and the non-banks with an average SVR of 7.01 per cent in May.
But the figures cannot be taken purely on face value because they are counted at the "wholesale funder" level. Some of the wholesale funders are banks or divisions of banks, as such, their lending figures actually end up being counted in the ABS’ bank lending figures.
Source: The Advisor