Data suggests borrowers are turning to non-major lenders for the first time since the COVID-19 pandemic gained traction in late March.
After six months of upheaval and battling against cash-back offers and competitive fixed rates, non-majors have regained the market share in the first quarter of the 2021 Financial Year – rising from just over 33% at the end of June to 41.1%.
Queensland and NSW showed the greatest market share increase state-by-state, rising by 10% and 8% respectively.
It comes after more data was released indicating that buyer confidence is improving, with those looking to purchase their first home on the back of government incentives spurring home loan lodgement volume to rise.
First home buyers accounted for almost a quarter of all home loan lodgements during this period, while many others have used the chance to upgrade amidst the record-low interest environment.
With tight regulations now affecting the rental market, the percentage of these loans acting as investments is dropping, but so too is the number looking to refinance – signifying that some normality in the market is beginning to take hold.