CBA builds share of first home loans
Commonwealth Bank captured 29.6 per cent of the first home buyer market last month, while Bankwest secured 9.3 per cent, mortgage broker Australian Finance Group (AFG) said in its analysis of just under 2000 brokers.
Housing finance figures released in mid-January had shown that just 1383 home loans were taken out by NSW first home buyers in November, while 1417 of such loans were taken out in Queensland - a drop of more than 30 per cent from the previous month. The state governments had withdrawn financial grants for first home buyers last year.
"The first home buyers of today are the upgraders, the refinancers and the investors of tomorrow - without them, the future for the whole market is concerning," AFG general manager Mark Hewitt said. "We need more lenders to follow the lead set by the CBA group and to focus on supporting this segment more."
The owner-occupied market was worth $757 billion in November 2012, according to the Australian Prudential Regulation Authority.
Commonwealth Bank's strong December performance lifted the major lenders' share of the first home loans market to 77.5 per cent in 2012, the highest for the year.
Macquarie was the biggest non-major lender for all loans last year, doubling its share from 1.8 per cent to 3.6 per cent of all loans processed, AFG added.
The survey came as the Housing Industry Association (HIA) residential land report, also released on Thursday, showed a 17.8 per cent fall in residential land sales for the September quarter last year. But this was 14.9 per cent higher than the record low the year before, HIA chief economist Harley Dale said.
"This latest update highlights the uncertainty around whether the new home building sector can mount a recovery that is both sustainable and of the magnitude Australia's population and economy require," Mr Dale said, adding that the sales signalled a "rocky road for any new home building recovery in 2013".
Frequently Asked Questions about this Article…
According to an Australian Finance Group (AFG) survey of just under 2,000 brokers, Commonwealth Bank captured 29.6% of the first home buyer market in December while its subsidiary Bankwest secured 9.3%, giving the CBA group about 40% of the national first home loan market that month.
Housing finance figures showed just 1,383 NSW and 1,417 Queensland first home buyer loans in November — drops of more than 30% month-on-month. The article links much of the decline to state governments having withdrawn financial grants for first home buyers during the prior year.
CBA’s strong December lift increased major lenders’ share of the first home loan market to 77.5% for 2012. For everyday investors, that signals greater market concentration among majors, and industry commentary in the article suggests a need for more lenders to support first home buyers to preserve the pipeline of future upgraders, refinancers and investors.
The AFG analysis found the CBA group took about 40% of first home loans in December, contributing to majors holding 77.5% of the first home loans market in 2012. It also noted Macquarie was the biggest non-major lender and doubled its share of all loans processed from 1.8% to 3.6%.
The Australian Prudential Regulation Authority (APRA) reported the owner-occupied market was worth $757 billion in November 2012, as cited in the article.
Macquarie became the biggest non-major lender for all loans processed and doubled its share from 1.8% to 3.6% of all loans over the year, according to AFG’s analysis referenced in the article.
The HIA residential land report showed a 17.8% fall in residential land sales for the September quarter, though that result was 14.9% higher than the record low from the year before. HIA chief economist Harley Dale warned the figures highlight uncertainty and could mean a 'rocky road' for any sustainable new home building recovery in 2013.
AFG general manager Mark Hewitt urged more lenders to follow the lead set by the CBA group and to focus on supporting the first home buyer segment more, arguing that today’s first home buyers help create tomorrow’s upgraders, refinancers and property investors.
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