One non-major bank more than doubled its share of broker-originated mortgages in October.
Suncorp Bank topped the non-majors with 8.2 per cent market share of all AFG broker-originated mortgages in October, compared to 3.6 per cent in September.
Previous frontrunner Macquarie Bank slipped from 5.8 per cent in September to 5.1 per cent last month.
The AFG Competition Index found 34 per cent of borrowers who refinanced their home loans last month did so using a non-major lender.
AFG’s quarterly index shows that non-major lenders are strongest among borrowers seeking to refinance (as opposed to other borrower types – investors, first home buyers and upgraders).
Across all categories of borrowers, non-major lenders collectively accounted for 28.3 per cent of all new mortgages processed, the highest figure for non-major lenders since AFG began recording competition figures at the start of 2012.
Suncorp had the biggest share of refinancers among non-major lenders, accounting for 10.3 per cent of all home loans in this category.
Suncorp’s 10.3 per cent figure compares with 8.8 per cent for major bank Westpac in the same month.
Macquarie Bank was the second largest in the category in October, delivering 7.5 per cent of all refinancing home loans.
“It is very encouraging from a competition perspective to see borrowers more and more willing to explore alternatives,” AFG general manager fo sales and operations Mark Hewitt said.
“Suncorp are a great example of this,” Mr Hewitt said.
“Traditionally they have struggled outside their home state of Queensland, however through delivering on a combination of customer value and service they have reached an all-time market share high of 8.2 per cent,” he said.
The AFG Competition Index shows that, overall, major lenders accounted for 71.7 per cent of all new home loans in October.
Most notable in a period where overall major lender share fell was ANZ increasing its share to 17.6 per cent, displacing CBA as the number one brand on the AFG panel.
Among non-major lenders Suncorp had the largest share in October on 8.2 per cent, with Macquarie on 5.1 per cent, ING Direct on 3.1 per cent and Bank of Queensland on 2.6 per cent.