These lenders account for over 90% of the country’s mortgage lending market
Australia’s lending market is one of the most competitive globally, with 97 banking companies servicing an estimated 18 million clients across the country, according to the latest figures from the Australian Banking Association. These institutions provide customers with a range of financial services, including home and personal loans, savings accounts, credit cards, business banking, financial planning services, superannuation and advice, insurance services, and investment tools.
Despite this number, however, only 10 of these banks account for 91% of the country’s overall mortgage lending market, unsurprisingly led by the big four – Commonwealth Bank, Westpac, NAB, and ANZ – which comprise more than three-quarters of the sector. Here are Australia’s 10 biggest mortgage lenders in terms of market share based on database firm Statistica’s December 2020 figures.
1. Commonwealth Bank of Australia (CBA)
Market share: 25.73%
Gross mortgage lending: $5,548.83 billion
Gross residential mortgage lending: $3,570.02 billion
Gross investment mortgage lending: $1,888.81 billion
CBA is a multinational bank and one of Australia’s big four. It offers a wide range of financial services, including home loans, personal loans, savings accounts, credit cards, business banking, financial planning services, superannuation and advice, insurance services, and investment tools. Beyond its standard variable and fixed rate loans, among CBA’s most popular mortgage products is the Extra Home Loan, which allows borrowers either to save at the front end of the mortgage with an introductory rate, or access a discount for the life of the loan – or both if the borrowers are first home buyers.
2. Westpac Banking Corporation
Market share: 23%
Gross mortgage lending: $4,879.72 billion
Gross residential mortgage lending: $2,743.49 billion
Gross investment mortgage lending: $2,136.23 billion
Westpac is the first-ever bank established in Australia and among the country’s big four. It offers a range of mortgage products that suit different types of borrowers, from first-time homebuyers to savvy property investors. Some popular features of most Westpac mortgages include reduced payments for up to six months for a holiday or home renovation, parental leave reduction, the ability to make extra repayments, and offset accounts such as the Rocket Repay Home Loan, Rocket Investment Home Loan, and the SmartPay automatic payment program.
Market share: 14.78%
Another of Australia’s big four banks, NAB offers a range of financial products and services, including home loans, personal loans, transaction accounts, insurance, and personal and business banking services. For property buyers, NAB provides the ability to bundle a home loan in with other products – such as credit cards and home and contents insurance – at a reduced interest rate, and offers offset accounts and similar benefits on other loans. NAB is also among the first lenders to be approved as a provider for the Defence Home Ownership Assistance Scheme (DHOAS), which helps to assist members of the Australian Defence Force with home loan advice and discounted rates.
4. Australia and New Zealand Banking Group Limited (ANZ)
Market share: 14.28%
Gross mortgage lending: $3,030.65 billion
Gross residential mortgage lending: $1,999.08 billion
Gross investment mortgage lending: $1,031.57 billion
ANZ is one of Australia’s big four banks. It provides clients the services of an ANZ Personal Banker, who can give them everyday banking advice and connect them with specialists of different loans, including mortgages, and retirement, planning, investment, and small business finance. Like many other large lenders, ANZ offers borrowers the ability to bundle a home loan in with other products at a reduced interest rate and offers offset accounts and similar benefits on other loans. The bank also offers a unique Property Profile Report, which allows borrowers to have a better understanding of the potential price of a home.
ING provides Australians with access to a selection of flexible and low-rate home loans. It is the world’s largest direct savings bank and its status as an online-only lender means it can pass the savings from not having to maintain branches on to customers by way of discounted rates and fee waivers.
Market share: 2.89%
Macquarie Bank provides clients with an extensive range of financial products and services, including mortgages, insurance, funds management, investment banking, and financial planning. For property buyers, Macquarie offers basic, offset, and line-of-credit home loans.
Market share: 2.57%
Bendigo Bank places a special emphasis on ethical lending and has developed its own codes of practice regarding lending and complying with the Code of Banking Practice, the ePayments Code and the Code of Operation for Department of Human Services and Department of Veterans’ Affairs direct Credit Payments. Its range of products includes transaction and savings accounts, credit cards, insurance packages, term deposits and business banking solutions. Bendigo offers a range of home loans for owner-occupiers and property investors.
Market share: 2.42%
Suncorp Bank offers a host of financial planning, investment services, and financial products and services, including home loans. One notable product it provides is the Deposit KickStart solution, which allows borrowers looking for an owner-occupier loan to use a family member’s or guarantor’s equity on an existing home as security.
Market share: 1.6%
BOQ offers a full range of banking and financial services, including personal banking, business banking – specialising in small to medium enterprises – insurance products, and private banking services. Its home loan selection includes fixed, variable, and line-of-credit mortgages for owner-occupiers and property investors.
Market share: 1.23%
HSBC provides Australians with access to a large range of financial products and services, including home loans, retail and commercial banking, financial planning, trade finance, payments, and cash management. Borrowers can bundle their home loan with other products to get discounted rates.