Majors lead in refinancing market
Major banks are picking up a large portion of the market share in mortgage refinancing off the back of COVID, according to a new report by the NSW Land Registry Services.
NSW Land Registry Services hold the most comprehensive title data bank in Australia.
Its dataset includes over 3 million NSW residential properties, underpinned by 2 million total mortgages on record.
This is the first published research on mortgages by NSW Land Registry Services.
Until March, the major banks were losing volume, while other local banks and non-lenders including foreign ADIs were gaining volume.
The report noted that other banks are still gaining volume but at a reduced rate compared to pre-COVID-19.
Major banks are the only segment to substantially increase share and volume of mortgages recorded on titles in August this year, compared to last year and most of this increase is due to the change in volume and direction of refinancing which as occurred since the health pandemic began.
According to the report, the major banks accounted for 67 per cent of mortgages recorded on titles in August, an increase of 6.6 per cent compared with the same month last year.
This represents an increase in volume of 18.9 per cent
Director of analytics and insights at NSW Land Registry Services, Jerry Goldfried, said rates of mortgage refinance have increased since May 2020.
“Refinancing activity surged in May and has continued through June and July. This is interesting to note during a period when many mortgage-holders are applying for payment deferrals,” he said.
Recent research from APRA did reveal a pick up of loan activity underpinned by refinancing.
The data from NSW Land Registry Services is also consistent with findings from Australia’s largest mortgage broker, Australian Financial Group which also revealed that the big four were winning again on the mortgage front.