Banks getting competitive over mortgage market
Wednesday October 14, 2009
Australia's mortgage market is beginning to become increasingly competitive between the major banks as to who will hold the greatest share. As it stands now, Australia's Big Four banks hold 73.8 per cent of mortgages according to CoreData-brandmanagement figures.
This is a massive increase on the previous report which showed that two years ago the same Big Four banks held 56.8 per cent, which means that throughout the duration of the Global Financial Crisis, Australian banks actually benefited in the mortgage market.
There is a battle between two of the nation's biggest banks for market leader with the Commonwealth bank leading at the moment with 25.3 per cent market share and Westpac sitting on 23.2 per cent, meaning that together they hold around half of the entire Australian mortgages market.
This position came about from two specific actions, that is, Commonwealth Bank taking over BankWest and Westpac taking over St George.
Tony Crossley, head of mortgages and insurance at CoreData-brandmanagement stated that "The share of mortgages represented by ANZ and NAB has remained constant over this two year period at a little over 25 per cent, although ANZ (12.5 per cent up from 11.8 per cent two years ago) are poised shortly to overtake NAB (12.8 per cent down from 13.4 per cent two years ago), which may be why NAB is now reacting through the purchase of Challenger, which is currently under ACCC consideration", as reported by The Australian.
The remaining of the Big Four Australian banks, National Australia Bank and ANZ, along with larger Australian financial institutions and lenders make up the remaining of the mortgage market share. In recent reports from both NAB and ANZ both banks say that they ahve made encouraging growth into the mortgage market with plans to pursue further.
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