Major vs Non Major lenders…. the battle for market share

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Major vs Non Major lenders…. the battle for market share

Major vs Non Major lenders…. the battle for market share

Prior to the global financial crises, Non major lenders (also known as any lender outside of ANZ, National Australia Bank, Commonwealth bank and Westpac) held close to 20% of the Australian mortgage market.

With the onset of the GFC there was a major shift back towards the major four lenders, this was for a variety of reasons, but with some smaller lenders struggling to obtain funding, and some well-known brands falling by the wayside, consumers drew comfort with having their lending with brands that many knew since childhood, giving a sense of comfort in uncertain times.

With the worst of the global financial crisis behind us, and the cost of bank funding now back to pre GFC levels, we have seen the re-emergence of non-major lenders coming back into the market to give the big four a run for their money.

Recently, a non-major lender released a professional pack loan without an annual or ongoing fee (something that we have never seen during our time in the industry) and with a rate of 4.69% variable it is at the moment a market leading product.

Other lenders are also offering highly competitive 1-3 year fixed rates with no annual or ongoing fees.

During this time we have seen the major lenders make some attempts to compete with their smaller competitors, as the non-majors take an increasing amount of market share, it will be interesting to see how long it will take for the big four to revamp their products in order to maintain their dominance.

Top Mortgages prides themselves in being up to date with all lenders interest rates, fees, and special offers currently available. For an obligation free consultation to review all of your current or new lending, feel free to contact one of our consultants today on 1300 308 225

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