Smaller Institutions Making Loan Market Inroads
Smaller, less established companies are grabbing a larger slice of the home loan market share from the nation's "big four" banks, according to a new study.
The AFG study found "non-major lenders" were proving to be increasingly popular among customers looking to refinance their home loans.
Smaller lenders accounted for 24.3 percent of the overall mortgage market in October 2012 – up from 19.6 percent in the same month of 2011. The mortgage market is believed to be worth about $300 billion.
AFG said that while there was still a long way to go before they catch up with their larger rivals, it was clear that smaller lenders had caught the attention of the Australian public. This was highlighted by a recent government study that showed 45 percent of people are not sure if they have the best home loan deal, General manager of sales and operations at AFG Mark Hewitt, said.