Borrowers turn to non-majors for new mortgage loans
Borrowers in four states continue to rely on non-major financial institutions for new home loans, according to the latest PEXA report.
The report showed that non-major lenders in New South Wales, Queensland, Victoria and Washington state continued to grow their market share as they saw a growing number of new mortgages in July. .
In NSW, non-majors have finally overtaken the big banks in monthly net new loans. This leaves Victoria as the only state where non-banks have yet to beat the majors for new loans.
However, the major banks in Victoria reported a sharp decline in their net positions, narrowing the spread with secondary lenders.
The big banks also saw a sharp drop in Queensland, widening their gap further against non-majors. The same trend was also apparent in WA.
Another story for refinancers
For refinancing activity, the big banks made a positive swing in NSW while the non-majors suffered a sharp decline during the month. Despite this, non-majors still hold the dominant stake in government refinancing.
In WA, the big banks remained on an uptrend while the non-majors continued to lose their market share.
The divergence has also widened in Queensland, although it was the non-majors who were on the rise as the big banks lost their footing.
The gap between majors and non-majors in Victoria continued to widen over the month. Since overtaking the major in March, secondary lenders have steadily improved their market share.
Refinancers on the rise, new loans fall
The PEXA study showed that refinancers were more active than new borrowers during the month.
In fact, sales regulations with new loans have declined in all states. Queensland recorded the largest monthly decline at 6.2% while NSW recorded the smallest decline at 0.6%.
On the flip side, all states saw an increase in the level of refinancing activity from the previous month, with all four states reporting gains of 7.5% to 8.8%.