Australia’s lending market is globally renowned for its fierce competitiveness. With an impressive tally of 97 banking entities serving around 18 million clients nationwide, as per data from the Australian Banking Association, the array of financial services on offer is extensive.
These services span personal and home loans, savings accounts, credit cards, financial planning, business banking, insurance, and investment options.
Despite the multitude of banking establishments, a mere five banks dominate the mortgage lending landscape, commanding a whopping 91% share. Notably, the key players in this domain are the “big four” – Commonwealth Bank, Westpac, NAB, and ANZ – collectively holding over three-quarters of the market.
Let’s explore Australia’s Top 5 Biggest Mortgage Lenders, ranked by market share, based on the December 2020 data provided by database firm Statistica.
The 5 biggest Mortgage lenders in Australia
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, one of Australia’s leading multinational banks and a member of the illustrious “big four,” offers extensive financial services. Its offerings include mortgages, personal loans, savings accounts, credit cards, business banking, financial planning services, pensions and advice, insurance services, and investment vehicles.
Among CBA’s highly sought-after mortgage products, the Extra Home Loan stands out, allowing borrowers to save at the start of their mortgage with an introductory rate or benefit from a discount throughout the loan term – or even both, in the case of first-time 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, the pioneering bank in Australia and a member of the esteemed “big four,” offers a diverse range of mortgage products tailored to various borrowers, from first-time homebuyers to astute property investors. Most Westpac mortgages have notable features.
These include the option to reduce payments for up to six months for holidays or home renovations. They also offer a parental leave reduction. Additionally, there is flexibility to make extra repayments and have offset accounts. Some examples of these mortgages are the Rocket Repay Home Loan, Rocket Investment Home Loan, and the SmartPay automatic payment program.
3 – National Australia Bank Limited (NAB)
Market share: 14.78%
Gross mortgage lending: $3,136.31 billion
Gross residential mortgage lending: $1,862.8 billion
Gross investment mortgage lending: $1,273.51 billion
NAB, another significant player among Australia’s “big four” banks, offers an extensive suite of financial products and services, encompassing home loans, personal loans, transaction accounts, insurance, and personal and business banking services.
For property buyers, NAB makes it easy to combine a mortgage with other products – such as a credit card and home and property insurance – at a discounted rate. In addition, NAB offers offset accounts and similar benefits for other loans. Notably, NAB was one of the first lenders to be certified as a supplier for the Defence House Ownership Assistance Scheme (DHOAS), which provides members of the Australian Defence Force with house 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, one of the prominent “big four” banks in Australia, provides clients with the services of an ANZ Personal Banker. These bankers offer everyday banking advice and connect clients with specialists in various types of loans, including mortgages, retirement planning, investment, and small business finance.
Like other major mortgage lenders, Australia and New Zealand Banking Group Limited – ANZ allows borrowers to bundle mortgages with other products at lower interest rates. Additionally, ANZ provides offset accounts and similar benefits across its loan offerings. The bank also offers a unique Property Profile Report, empowering borrowers to understand a home’s potential price better.
5 – ING Bank Australia Limited
Market share: 2.91%
Gross mortgage lending: $617.06 billion
Gross residential mortgage lending: $510.69 billion
Gross investment mortgage lending: $106.37 billion
ING Bank Australia Limited grants Australians access to flexible and low-rate home loans. As the world’s largest direct savings bank, ING leverages its online-only presence to pass on cost savings to customers through discounted rates and fee waivers, benefitting from not needing to maintain physical branches.
