Non-bank lenders gain growing share of home loan market
Non-bank lenders like building societies and credit unions have achieved record activity in the mortgage market this year, new figures show.
According to Australian Bureau of Statistics data, non-bank lenders saw the number and value of home loans to owner occupiers increase by 12.2 per cent and 21.1 per cent respectively in October.
The banks, meanwhile, saw much smaller increases of 0.4 per cent and 1.1 per cent in the same areas during the month.
Speaking to the Australian about the figures, UBS economist George Tharenou noted that the 21 per cent value rise in non-bank lending in October was the biggest monthly increase for a decade.
"I think we're starting to see some normalisation of trends between banks and non-banks," he said.
Consumers have also been more inclined to compare home loans and weigh up all their options after the big four banks chose to lift variable rates by more than the Reserve Bank's official 0.25 per cent hike in November.
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