SYDNEY, Australia – APRA’s latest monthly statistics is out, showing that Macquarie Bank increased its home loan books by as much as 31%.
APRA recently released its monthly data for March. Based on the statistics, banks including Bendigo, HSBC, Adelaide Bank, and Macquarie Bank were able to boost their loan books on a year-on-year basis.
Out of the four major banks in Australia, the Commonwealth Bank of Australia was only the one which garnered a YoY growth in its home loans. The other three giant banks in the country, Westpac Group, National Australia Bank (NAB), and the Australia and New Zealand Banking Group (ANZ), all got decreased home loans. ANZ recorded the biggest downturn with its drop on home loans at 1.60%, while Westpac and NAB recorded 0.03% and 0.15% declines, respectively.
Macquarie Bank recorded the highest home loans growth from APRA’s monthly banking statistics for March 2020 at 31.17%. It’s housing loans provided to households reached $47, 417 million for the last year ending March 2020. However, it’ current share on the home loan market in the country remains at a meagre level at 2.71%, compared to the highest share on the market, 25.65%, held by Comm Bank.
The second highest home loan growth for March 2020, another double-digit increase belongs to HSBC Bank Australia at 22.45% YoY. It currently holds a $21,288 million worth of housing loans to Australian households. However, the bank remains tat the bottom of the home loan market with its 1.22% share.
Meanwhile, Adelaide Bank and Bendigo Bank both achieved solid YoY housing loan growth at 8.37%. They were able to disperse home loans worth $43, 972 million for the past year, while the current share of the banks on the country’s home loan market is at 2.51%.
The ING Bank Australia also recorded a considerable growth for the past year, recording a 4.70% increase from March the previous year. Its YoY housing loans dispersed reached $51,365 million and currently holds 2.93% of Australia’s home loan market.
Other banks in Australia also recorded a slight growth on their home loans books, including the Bank of Queensland and Suncorp-Metway, each recording 2.32% and 0.35%, respectively.
Meanwhile, the previous data published by the Australian Mortgage Council of the RFi Group showed that ING and Bendigo Bank are leading the customer satisfaction rate in the current home loan market. It is not surprising as online and regional banks such as ING and Bendigo Bank has been leading the market in terms of forging relationship and trust with their customers for several years now.
The latest research from the council also suggests that there is a decrease in borrowers taking out loans with their MFI. More of them are also shifting to regional and online banks when getting financing. However, major Australian banks are starting to take back more of the country’s home loan market share. AFG, a mortgage aggregator, shows that major banks currently hold 60% of the share market, compared to its previous 53%.
On the other hand, Shayne Elliot, the chief executive of ANZ Banking Group, said that the bank’s move to reduce its variable home loan rate gave them a record number of mortgage applications. That is compared to the other major banks in Australia, she added.
Based on an analysis by a home loan website in the country, RateCity, the cash rate in Australia is looking to stay at 0.25% based on the RBA meeting on Tuesday. However, housing loan rates may continue to decline in the foreseeable future. Currently, mortgage percentage is hitting a record low of 2.29%.
RateCity analysis also showed that over 50 banks and lenders are cutting at least a single variable rate for all their new applicants, while around 60 of them are cutting off at least one of their offered fixed rates.
Aside from Australia’s big four banks, the lowest home loan rate in the country right now is with Homestar Finance at 2.29%, followed by the 2.39% home loan rate offered by Reduce Home Loans.
On the other hand, the Australian Banking Association (ABA) released latest figures showing that there are over 320,000 Australian households successfully approved to get a deferral on their home loan repayments. The data also shows that over 170,000 of businesses got deferrals for their business loan settlements. In other loan repayments, around 37,000 got approved. That includes credit cards and personal loan repayments.
Currently, banks are offering up to 6-month loan deferrals to households, businesses, and individuals due to the negative impact of the COVID-19 pandemic in the country. The estimated approved deferrals cover around $6.8 billion of loans from mortgages and other repayments.
Further, the ABA said that since the beginning of the health crisis in the country due to COVID-19, banks already dispersed more than $45 billion to help businesses. That doesn’t include the additional $8.5 billion to finance around 23,000 small-scale Australian business.