AFG Competition Index – December 2016

Refinancers flock to non-majors

AFG (ASX: AFG) today reported a jump in the number of Australian mortgage holders looking to leave the country’s major lenders.  Following on from the previous quarter, consumers refinancing their home loans have again turned their backs on the major lenders in their search for savings, according to the latest AFG Competition Index.

AFG General Manager of Sales and Operations, Mark Hewitt explained the shift. “In terms of overall mortgage sales the majors and their subsidiaries slipped by 8.1% to close the quarter with 64.1% of the market. This is a post-GFC low.

The resurgence of the non-majors has largely been driven by those borrowers seeking to refinance. “The non-majors lifted their share of the refinancing market to 43.2% across the last quarter,” said Mr Hewitt.

“Suncorp with an increase of 3.3% and AMP with a lift of 2.1% led the way with refinancers, largely at the expense of the Westpac stable” he said.

Westpac and its other brands, Bank of Melbourne, Bank SA and St George dropped its share of total mortgages by a combined 8.4% for the quarter.

The majors have also pulled back from the investor market, with their share of that segment dropping by 7.0% for the quarter.

The Reserve Bank of Australia (RBA) decision to leave the official interest rate on hold at its December meeting has proved largely irrelevant to lender policies, with many lenders continuing the practice of lifting interest rates outside the RBA cycle.

“In the past week many lenders have been increasing fixed and variable interest rates. They have been targeting areas such as investment loans and this is often a trigger to encourage consumers to shop around,” said Mr Hewitt.

“In the current environment it is worth picking up the phone to your mortgage broker to help understand what is happening in the market and that your loan is still the most appropriate for your circumstances.”

Download full report: AFG – Competition Index – December 2016

Broker Technology
Broker Guides

Download your AFG Information Book

Open the book on AFG and find out how we can partner with you to grow your business.

Services We Offer
Featured Post
Featured Calculators
Broker Guides

Customer Experience and Workflow Optimisation

Learn why creating repeatable customer experiences could be your biggest revenue growth opportunity.

The AFG Story

Find out how we’ve been helping Australians find a fairer deal for over 27 years.

How we're helping
Investor
Looking for the right loan?
Choose your loan type and start comparing products from our lender panel, read the latest finance tips and if you’re looking for expert help, we can put you in contact with an AFG Mortgage Broker.