Australia's mortgage market hits $2.46 trillion record as fifth pillar bank outpaces majors
Australia's home loan market has reached a fresh record of $2.46 trillion in March, according to new data from the Australian Prudential Regulation Authority – and the fastest-growing lender in the country isn't one of the big four.
Macquarie Bank grew its mortgage book by 27.1% over the past year to $173.7 billion, a pace that dwarfs the major banks and continues a seven-year run that has reshaped the competitive landscape of Australian mortgage lending. From a standing start of just $36.1 billion in March 2019, Macquarie's loan book has expanded by 380% – nearly five times what it was only seven years ago.
By contrast, the big four banks grew their combined books by between 3.7 and 7.1% over the same 12-month period. CBA led the majors with a 7.1% annual rise to $624.5 billion, followed by NAB (up 5.5% to $347.0 billion), Westpac (up 5.3% to $509.0 billion) and ANZ (up 3.7% to $324.2 billion).
Big four's grip on the market continues to loosen
The numbers confirm a structural shift that has been building for years. The big four banks now hold 73.3% of all household mortgages in Australia, down from 78.9% seven years ago in March 2019. Macquarie has been the primary beneficiary of that shift, lifting its market share from just 2.1% in March 2019 to 7.1% today.
In dollar terms, the scale of Macquarie's expansion is striking. In March alone, Macquarie added $3.6 billion to its mortgage book – a monthly gain that in percentage terms ran at roughly 2.1%, far ahead of the big four's monthly growth rates of between 0.4 and 0.5%.
Within Macquarie's book, investor lending is running hot alongside owner-occupier lending. Its investment loan portfolio reached $67.3 billion in March, while owner-occupier loans stood at $106.4 billion – reflecting an investor share of around 38.7% of its total book, notably higher than the majors.
Investor lending outpaces owner-occupiers across the market
Across the market as a whole, investor lending is growing at a faster clip than owner-occupier lending. APRA data shows investor mortgage balances rose 0.98% in March compared to a 0.37% increase for owner-occupiers, extending a trend visible through the first quarter of 2026.
That divergence is notable given that APRA activated new debt-to-income (DTI) limits on 1 February, restricting the share of new lending that can be written at a DTI ratio of six times or more. The limits apply separately to investor and owner-occupier lending. Despite that constraint, investors remain the faster-growing segment of the market – suggesting demand from property investors continues to outrun the regulatory friction, at least for now.
Total investor balances across all lenders reached $800.5 billion in March, representing 32.5% of the national mortgage book. Owner-occupier balances stood at $1.66 trillion.
The mortgage price war has cooled
The competitive environment for mortgage pricing has shifted considerably compared to the peaks of 2023 and 2024. The days of large cash-back offers and aggressive new-customer discounts – the tactics that fuelled rapid book growth at Macquarie and a handful of other challengers – are largely behind us. With the RBA hiking rates twice this year and inflation sitting at 4.6%, banks are managing margins more carefully and competing less aggressively on headline rate.
The cooling of the rate war has tightened the gap between what banks offer new customers and what they charge existing ones – a dynamic that creates both a challenge and an opportunity for brokers. Clients who have not had a mortgage review recently may be sitting on rates with little premium over the best new-business offers in the market, but they also have less to gain from switching than they did 18 months ago.
For brokers, the broader picture from APRA's March data is a market that is still growing – up 6.9% year-on-year – but one in which the spoils are not being shared evenly. Macquarie's consistent outperformance, built almost entirely through the broker channel, underscores how much the major banks continue to cede ground to a competitor whose strategy has barely changed: competitive pricing, a reliable broker experience, and a preference for lower-risk, lower-LVR lending.
What the numbers mean for your clients
The total market size of $2.46 trillion puts the scale of Australia's housing finance system into perspective – and also the stakes involved as the Reserve Bank prepares to lift rates for a third time this year. With Moody's estimating that a further rate rise to 4.6% would push the national housing affordability measure above 31% of average disposable income, refinancing conversations are becoming more urgent for clients whose fixed terms are rolling off or whose variable rate has climbed materially.
The APRA data also serves as a reminder of how broker-driven Macquarie's growth has been. With more than 95% of its home loan originations coming through the broker channel, Macquarie's continued expansion is, in a real sense, a testament to the growing influence of brokers in directing market share away from the big four.
