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Macquarie mortgage push sees loan growth hit 17.5%

Macquarie mortgage push sees loan growth hit 17.5%

Macquarie Bank has been growing its owner-occupier home loans business more than twice as fast as the big four banks.

Macquarie had $21.4 billion of owner-occupier mortgages on its books at the end of April, according to statistics released by APRA.

That was 17.5 per cent higher than the year before and 5.0 per cent higher than the quarter before. By contrast, the big four banks averaged growth of 6.5 per cent over the year and 1.3 per cent over the quarter.

Macquarie has two home loan products aimed at owner-occupiers: the Basic Home Loan and the Offset Home Loan.

The Basic Home Loan starts at 3.69 per cent (comparison rate 3.69 per cent), while the Offset Home Loan also starts at 3.69 per cent (comparison rate 3.94 per cent).

RateCity.com.au money editor Sally Tindall said that Macquarie is differentiating itself from the big four banks by offering lower advertised rates.

“Macquarie is trying to ditch their reputation as a bank for the wealthy, making a concerted play for everyday mum and dad customers,” Ms Tindall said.

“They’ve done this with a simple proposition that’s hard to argue with: low-cost loans. Right now, they’re competing at the pointy end of the rate table among lesser-known lenders using a big-name brand.

“For many customers who are cost-orientated but nervous about smaller lenders, they seem to be ticking all the right boxes.”

Macquarie’s success in the residential mortgage market was highlighted in the bank’s FY18 profit results last month. Over the 12 months to 30 May 2018, the lender managed to grow its total loan book by 14 per cent to $32.7 billion.

Macquarie was one of the most aggressive banks in the market for investor loans prior to the introduction of macro-prudential measures in 2014.

While the bank’s investor loan book has almost doubled since then from $4.5 billion (30 April 2014) to $8.9 billion, growth has moderated significantly. Over the 12 months to 30 April, Macquarie’s investor loan portfolio grew marginally by 2.3 per cent.

Back in 2014, investor loans accounted for approximately half of the bank’s total book. Today, investor lending accounts for around 27 per cent of Macquarie’s mortgage portfolio.

[Related: Bouris’ YBR loses Macquarie, gains Brierley and keeps Ganis]

Macquarie mortgage push sees loan growth hit 17.5%
loan growth, mortgage push
mortgagebusiness

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