Non-banks winning more mortgage marketshare

The number of people taking out home loans with non-bank lenders is creeping up.

Their share of new owner-occupied home loans by value in April was the highest in more than a year, at 8.85 per cent, Bureau of Statistics figures show, still well below the 14 per cent market share that non-banks had before the global financial crisis.

AFG said competition was increasing, with small banks and non-bank lenders taking a bigger share among new home buyers.

“Non-major banks have a disproportionate share of first home buyer business and that's probably because first home buyers tend to be a bit younger, they tend to be a bit more open to other ideas,” said AFG's general manager of sales and operations, Mark Hewitt.

Source: The Age