Smaller Banks Benefit From Brokers
About 37 percent of all the mortgages arranged by brokers in the last quarter went to the smaller regional banks.
The figure comes from a recent Market Intelligence Strategy Centre report using data from brokers. And given that Australians use mortgage brokers for about 40 percent of their loans, the figure is good news for banks such as the Suncorp Group and Bendigo and Adelaide Bank. Suncorp in particular was singled out in the report for its performance in Queensland with incentives to borrowers through a .90 percent life of loan discount and incentives to brokers with improved first-year commission bonuses.
However, the big four banks used their multi-brand strategy successfully to retain market share through lenders like St. George, BankSA, and Bank of Melbourne (all owned by Westpac) and BankWest (owned by Commonwealth Bank).
UBank (owned by NAB) was one of very few to pass on a recent 25 basis point cut by the RBA.