Big Banks Lose Market Share

Borrowers are shopping around for more competitive interest rates with big banks losing out to minor lenders.

Online property exchange PEXA figures show the number of people refinancing their mortgages is rising.

PEXA’s data covers 95% of refinancing commitments.

It shows the Big Four banks are losing thousands more loans than they are winning each month.

PEXA head of research Mike Gill says the number of refinancing deals lodged through its platform has increased by almost 50% in Queensland, 46% in WA, 23% in Victoria, and 15.6% in NSW.

Macquarie analyst Victor German says the mortgage market increased by about $31 billion in the three months to April, but the Big Four accounted for only $11.5 billion of those loans.

German says in the past the big banks were able to offer “rock-bottom fixed interest rates” below what smaller lenders could – but that is no longer the case.

As a result, the big banks are losing market share.