Mutuals’ mortgage market share accelerates
09 December 2010
Latest housing finance data shows more Australian borrowers are voting with their feet, and applying for mortgages with Australia's credit unions and building societies.
"The October ABS data showed credit unions and building societies grew their share of new home loan approvals to 10.2%, up 1% from the previous month," said Abacus CEO Louise Petschler. "Our members report even stronger growth in November, after the major banks significantly increased their interest rates."
"This trend indicates that mutual banking institutions are well placed to boost competitive pressure on the major banks with the help of some pro-competitive reform to be unveiled soon by Deputy Prime Minister Wayne Swan.
According to the ABS, credit unions have hit their highest market share in twelve years, approving more than 3,500 new mortgages in October, or 7.4% of all approvals for the month, compared with 6.7% in September. Building societies' share jumped from 2.4% to 2.8% between September and October.
"Consumers are clearly seeing that credit unions and building societies are strong alternatives to the big banks and that switching is not hard as you think. The message is getting through to consumers that credit unions and building societies can offer a better value deal on their home loan," said Petschler.
"We encourage consumers to visit www.comesbacktoyou.com.au to find out why the customer, not the shareholder, always comes first with us," Petschler said.
Credit unions and building societies look forward to the Government's imminent announcement of its banking reform package and are hoping that the package will contain measures to help smaller lenders access wholesale funding markets more effectively.
"These statistics show that mutuals are ready to take on the competition. We hope the Government will support smaller lenders to take on the big four banks and deliver better outcomes for Australian consumers," said Ms Petschler.
For more information, please contact:
Pamela Eldridge
Senior Adviser - Media, Public Affairs
(02) 8299 9024; 0423 843 790
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