Australia’s largest mortgage lenders are more than just the Big Four banks. Read on to see which lenders round up the top 10
Updated: January 23, 2024
Australia’s lending market is one of the most competitive globally.
Some 100 banking companies service an estimated 18 million clients across the country, according to the Australian Banking Association. These institutions provide customers with a range of financial services, including mortgages, personal loans, and more.
Despite this number, only 10 of these banks account for 91% of Australia’s overall mortgage lending market.
In this article, we will explore the largest mortgage lenders in Australia. We will also look at the sheer number of mortgage lenders in the country, as well as highlight some major non-bank lenders.
Here is everything you need to know about Australia’s largest mortgage lenders.
Who are the major lenders in Australia?
The major lenders in Australia are known as the Big Four. These big four banks are called that because they take up most of the market for home loans in Australia. The largest mortgage lenders in the country are as follows:
In recent years, the Big Four combined make up roughly 80% of the total mortgage market in Australia. Together, they have nearly $3.8 trillion in assets under management.
Let’s look more closely at each of the largest mortgage lenders in Australia to get a better sense of the numbers and what each has to offer.
Largest mortgage lenders: ANZ
Market share: 14%
Gross mortgage lending: over $3 billion
Gross residential mortgage lending: just under $2 billion
Gross investment mortgage lending: over $1 billion
Australia and New Zealand Banking Group Limited (ANZ) is one of the prominent Big Four banks in Australia. ANZ prides itself on providing clients with the services of an ANZ personal banker. These bankers offer advice and connect clients with specialists in multiple loan types. These include everything from mortgages and investment to retirement planning and small business finance.
Like the other largest mortgage lenders in Australia, ANZ enables borrowers to bundle home loans with other products at lower interest rates. ANZ also allows clients to offset accounts and similar benefits across its different home loan offerings. And to empower borrowers to better understand a home’s potential price, ANZ offers a unique Property Profile Report.
Largest mortgage lenders: Commonwealth Bank
Market share: 26%
Gross mortgage lending: over $5.5 billion
Gross residential mortgage lending: over $3.5 billion
Gross investment mortgage lending: just under $2 billion
Another member of the illustrious Big Four, the Commonwealth Bank of Australia (CBA) is one of the country’s leading multinational banks. CBA offer extensive financial services, which include the following:
- mortgages
- personal loans
- savings accounts
- business banking
- credit cards
- financial planning services
- insurance services
- investment vehicles
- pensions and advice
CBA offers numerous mortgage products that are highly sought after. One of these is the Extra Home Loan. This offering allows borrowers to save at the beginning of their mortgage with an introductory rate or benefit from a discount throughout the loan term. First-time home buyers can benefit from both the introductory rate and the ongoing discount.
Largest mortgage lenders: NAB
Market share: just under 15%
Gross mortgage lending: $3.1 billion
Gross residential mortgage lending: $1.8 billion
Gross investment mortgage lending: $1.3 billion
National Australia Bank Limited (NAB) is another major player among Australia’s Big Four banks. NAB offers an extensive suite of financial services and products. These include home loans, personal loans, insurance, transaction accounts, and business and personal banking services.
NAB makes it easy for home buyers to combine a mortgage with other products at a discounted rate. For example, buyers can combine a credit card and home and property insurance. Additionally, NAB offers benefits for other loans such as offset accounts.
NAB was also one of the first lenders to be certified as a supplier for the Defense House Ownership Assistance Scheme (DHOAS). This scheme provides members of the Australia Defence Force with discounted rates and house loan advice.
Largest mortgage lenders: Westpac
Market share: 23%
Gross mortgage lending: just under $5 billion
Gross residential mortgage lending: $2.7 billion
Gross investment mortgage lending: over $2 billion
The last on our list of the Big Four banks in Australia is Westpac Banking Corporation. This pioneering bank offers a wide range of mortgage products that are tailored to different types of borrowers. These include everyone from astute property investors to first-time home buyers.
One notable feature offered by Westpac mortgages includes the option to reduce payments for up to six months for home renovations or holidays.
Westpac also offers parental leave reductions and the flexibility to make extra repayments and have offset accounts. Examples of these Westpac mortgages include Rocket Investment Home Loan, Rocket Repay Home Loan, and the SmartPay automatic payment program.
What are Australia’s largest mortgage lenders (beyond the Big Four)?
While the Big Four banks are among the largest mortgage lenders in Australia, there are certainly plenty of other options.
In this section, let’s round out the top 10 largest mortgage lenders after the four already mentioned:
- ING Bank Australia Limited
- Macquarie Bank Limited
- Bendigo and Adelaide Bank Limited
- Suncorp-Metaway Limited
- Bank of Queensland Limited (BOQ)
- HSBC Bank Australia Limited
Here is a closer look at each.
ING Bank Australia Limited
Market share: just under 3%
Gross mortgage lending: over $617 billion
Gross residential mortgage lending: over $510 billion
Gross investment mortgage lending: over $106 billion
ING provides Australians with access to a selection of flexible and low-rate home loans. It is the world’s largest direct savings bank. Its status as an online-only lender means it can pass the savings from not having to maintain branches on to customers by way of discounted rates and fee waivers.
Macquarie Bank Limited
Market share: 2.90%
Gross mortgage lending: $613 billion
Gross residential mortgage lending: over $315 billion
Gross investment mortgage lending: over $263 billion
Macquarie Bank provides clients with an extensive range of financial products and services. These include mortgages, insurance, funds management, investment banking, and financial planning. For property buyers, Macquarie offers basic, offset, and line-of-credit home loans.
Macquarie took the top spot in the 2022 Brokers on Banks survey.
Bendigo and Adelaide Bank Limited
Market share: 2.57%
Gross mortgage lending: $546 billion
Gross residential mortgage lending: $369 billion
Gross investment mortgage lending: $176 billion
Bendigo Bank places a special emphasis on ethical lending. Bendigo Bank has developed its own codes of practice regarding lending and complying with the Code of Banking Practice. It also complies with the ePayments Code and the Code of Operation for Department of Human Services and Department of Veterans’ Affairs direct Credit Payments.
Its range of products includes transaction and savings accounts, credit cards, insurance packages, term deposits and business banking solutions. Bendigo offers a range of home loans for owner-occupiers and property investors.
Suncorp-Metaway Limited
Market share: 2.42%
Gross mortgage lending: $514 billion
Gross residential mortgage lending: $364 billion
Gross investment mortgage lending: $150 billion
Suncorp Bank offers financial planning, investment services, and financial products and services, including home loans. One notable product it provides is the Deposit KickStart solution. This allows borrowers looking for an owner-occupier loan to use a family member’s or guarantor’s equity on an existing home as security.
Bank of Queensland Limited (BOQ)
Market share: 1.6%
Gross mortgage lending: $341 billion
Gross residential mortgage lending: $202 billion
Gross investment mortgage lending: $139 billion
BOQ offers a full range of banking and financial services, including personal banking, business banking (specialising in small to medium enterprises), insurance products, and private banking services. Its home loan selection includes fixed, variable, and line-of-credit mortgages for owner-occupiers and property investors.
HSBC Bank Australia Limited
Market share: 1.23%
Gross mortgage lending: $260 billion
Gross residential mortgage lending: $184 billion
Gross investment mortgage lending: $76 billion
HSBC provides Australians with access to a large range of financial products and services. These include home loans, retail and commercial banking, financial planning, trade finance, payments, and cash management. Borrowers can bundle their home loan with other products to get discounted rates.
The largest mortgage lenders in Australia make up roughly 90% of the mortgage market.
How many mortgage lenders are there in Australia?
The mortgage market in Australia is, for lack of a better term, huge. The mortgage market reaches roughly $18 billion each year for new home loans for owner-occupiers and approved investors.
To accommodate these numbers, there are more than 100 mortgage lenders in Australia. This includes both banks and non-bank lenders.
The difference between a bank and a non-bank lender
So far, the largest mortgage lenders in Australia that we have looked at were banks. There are differences between bank and non-bank lenders worth exploring.
Banks are classified as authorised deposit-making institutions (ADIs). That means they can offer deposit and savings accounts to customers, as well as make loans.
Non-bank lenders, on the other hand, are not ADIs. That means they can only offer loans.
Australia’s biggest non-bank lenders
There are many non-bank lenders in Australia, with more are cropping up all the time. In this section, we are going to look at three major non-bank lenders.
Firstmac
With its retail brand loans.com.au, Firstmac is one of the largest non-bank lenders in Australia. Firstmac was established 40 years ago and has provided more than 130,000 home loans. Currently, it manages roughly $16 billion in mortgages. Firstmac accepts only prime borrowers with clean credit histories.
In 2021, Firstmac set an Australian record for issuing the largest non-bank mortgage bond.
Pepper Money
Pepper Money has been in business since the year 2000. In that time, it has helped more than 250,000 Australians with their home and car loans. Many of their clients are considered non-prime borrowers.
Pepper Money is a good option for those struggling with a deposit or who have a less-than-ideal credit history. Pepper Money also has offices in the UK, Ireland, Spain, and South Korea.
Liberty
Another of Australia’s major non-bank lenders, Liberty is funded by some of the world’s largest institutions. These include Credit Suisse, Deutsche Bank, and NAB. Liberty has been in business since 1997 and has helped more than 600,000 Australians by advancing more than $40 billion in funds.
There are other options beyond Australia’s largest mortgage lenders
The good news is that, in Australia, there is no shortage of mortgage lenders. Australia’s largest mortgage lenders are undoubtedly the Big Four banks. However, there are other banks that round up the top 10 with a significant market share and posting serious gross mortgage lending numbers. And then, of course, there are plenty of non-bank lenders to choose from.
To learn more about Australia’s largest mortgage lenders, speak to the best mortgage professional in your area for assistance. They can help you see the bigger picture.
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