Australia’s lending industry remains globally competitive amid the uncertainty brought about by the COVID-19 pandemic, with 125 financial institutions providing a total of $9.12 trillion in gross lending value to housing-related loans over the first five months of 2021.
The latest data from the Australian Prudential Regulation Authority (APRA) shows that only 10 banks account more than 91% for the market’s volume.
Below, we take a closer look at the lending market and reveal the country’s biggest lenders.
These are the top banks/ADIs for lending volume
APRA regularly releases banking statistics on Australia’s Authorised Deposit-taking Institutions (ADIs). These financial companies are licensed to offer banking services and accept deposits from the public.
Among the 10 biggest ADIs that dominate the mortgage industry, it is no surprise that the country’s four biggest banks have retained the highest ranks. 77% of the gross lending figures for Commonwealth Bank, Westpac or ANZ are in the aggregate.
This list contains the top 10 Australian lenders, ranked by gross lending volume (and market shares) between January and May 2021.
1. Commonwealth Bank of Australia, CBA
- Gross mortgage lending: $2,365.7 billion
- Residential mortgage lending: $1,564.7 billion
- Housing investment lending: $801 billion
- Market share total: 25.9%
One of Australia’s Big Four, CBA is a multinational bank that offers an expansive menu of financial services, including personal and corporate banking, credit cards, personal loans, and home loans.
The bank has more than 1,100 branches and is headquartered in Sydney. There are 4,300 ATMs in the country. It does business in Asia and New Zealand as well as the United States. CBA has subsidiaries in Indonesia where it operates the PT Bank Commonwealth in New Zealand and ASB Bank New Zealand.
Borrowers can take advantage of CBA’s Extra Home Loan program on top of the bank’s fixed rate mortgages. First-time buyers can take advantage of this program to get discounts during the loan term, upfront costs and an introductory rate.
2. Westpac Banking Corporation
- Gross mortgage lending: $2,050.1 billion
- Residential mortgage lending $1,164 billion
- Housing investment lending: $886.1 billion
- Market share: 22.5%
Westpac is also one of Australia’s Big Four banks and the oldest. It was established under the name Bank of New South Wales in 1817. In 1982, the Commercial Bank of Australia acquired the Bank of New South Wales.
Westpac now has 1,204 branches in the country. It offers wealth management services and investment banking worldwide.
It provides both traditional retail banking as well as a variety of mortgage products for home buyers and real estate investors. Westpac is the largest large lender with the highest gross investments lending values.
Westpac mortgage loans can be obtained at a reduced interest rate for home renovations. Rocket Repay offers borrowers the chance to make additional repayments while avoiding break costs.
3. Australia and New Zealand Banking Group Limited – (ANZ).
- Gross mortgage lending: $1,314.5 billion
- Residential mortgage lending: $877.5 billion
- Housing investment lending: $437 billion
- Market share total 14.4%
Based in Melbourne, ANZ is one of the Big Four and Australia’s third largest bank by market capitalisation. It offers global wealth management services and investment banking, much like Westpac.
ANZ is well-known for its personal banking program that connects customers with financial specialists and financial advisors who can assist them with their financial problems, such as mortgages.
Customers who combine their products with other financial institutions can get home loans at a reduced rate from ANZ. Borrowers can conveniently use their online loan calculator and review a property’s profile report before making a purchase.
4. National Australia Bank Limited (“NAB”)
- Gross mortgage lending: $1,313.2 billion
- Residential mortgage lending: $810 billion
- Housing investment lending: $503 billion
- 14.4% of the total market share
NAB is the last Big Four bank and provides similar personal and corporate banking services to other lenders. However, it is one of the country’s first providers of the Defence Home Ownership Assistance Scheme (DHOAS).
This program assists personnel from the Australian Defence Forces with home loans and mortgage advice at lower interest rates.
The NAB’s online platform allows borrowers to access a variety of tools to calculate repayments, assess home equity and select the right loan for them.
NAB operates 1,590 branches throughout Australia. It also serves clients in New Zealand and Asia.
5. Macquarie Bank Limited
- Gross mortgage lending: $315.2 billion
- Residential mortgage lending: $183.5 billion
- Housing investment lending: $131.7 billion
- Market share: Total 3.5%
Macquarie is a Sydney-based financial services company and investment bank that serves clients all over the globe.
Macquarie also offers traditional bank services, forex, equities and commodities trading services. Macquarie also offers residential mortgage products since the 1990s.
The bank offers a wide range of flexible and comprehensive home loan options to borrowers. You can use a variety of mortgage calculators to help you make your decision.
Macquarie also offers the option to open up to 10 offset account to split your loan. This will allow you to get lower interest rates and allows you to have more than one account. To make your mortgage payment faster, you may also opt to make higher monthly repayments.
6. ING Bank Australia Limited
- Gross mortgage lending: $258.9 billion
- Residential mortgage lending: $217.5 billion
- Housing investment lending: $41.4 billion
- Market share total 2.8%
ING Bank is a subsidiary bank of the Dutch bank ING Group. It is Australia’s biggest savings bank.
It offers corporate and personal banking services as well insurance products, superannuation and other products.
Additionally, ING has an optional “Mortgage Simplifier” program that lets borrowers make extra repayments for free and conveniently redraw their money. Online lenders can pay off loans quicker because they don’t charge transaction or annual fees.
If you want to compare home ownership, refinance, and investment loans, you can use ING’s online calculators or chat with their banking advisors through the website.
7. Bendigo and Adelaide Bank Limited
- Gross mortgage lending: $248.3 billion
- Residential mortgage lending: $170.8 billion
- Housing investment lending: $77.5 billion
- Market share total 2.7%
Bendigo Bank was established in 1858 and is one of Australia’s oldest banks. It specializes in retail banking. It was Australia’s first bank to offer Visa debit and credit cards.
Adelaide Bank eventually merged with the bank in 2007. The new company now has more than 400 branches throughout the country.
Bendigo offers insurance products, credit cards, and personal savings. It also offers mortgage loan. It’s also the first financial institution in Australia to develop a mobile-only digital bank.
Bendigo Express, an AI-based home loan assessment program that the bank uses to assess borrowers’ creditworthiness, is an AI-based home loan evaluation program. The bank also places special emphasis on ethical lending. The Bendigo Express Home Loan Program will speed up mortgage processing.
8. Suncorp-Metway Limited
- Gross mortgage lending: $211.8 billion
- Residential mortgage lending: $151.2 billion
- Housing investment lending: $60.6 billion
- Market share total: 2.3%
Suncorp-Metway is Australia’s largest mortgage lender and has its headquarters in Brisbane. They also offer general and life insurance. They also offer banking, superannuation, wealth management and other services in New Zealand.
First time buyers can benefit from the bank’s “Deposit KickStart” program, which allows borrowers to use a guarantor’s equity on an existing home to qualify for a mortgage.
Suncorp bank has many loan calculators, just like large lenders. These can be used to calculate stamp duty costs and compare home loans.
It takes less than 10 minutes to complete the pre-approval process online. A lender will contact you within your next banking session once you have been approved. For a free, no-obligation consultation with a financial advisor, you can also contact them.
9. Bank of Queensland Limited, (BOQ).
- Gross mortgage lending: $148.4 billion
- Residential mortgage lending: $90.3 billion
- Housing investment lending: $58.1 billion
- Market share total: 1.6%
The Brisbane-based lender specializes in small and medium business insurance and banking services. Retail banking is also offered by the lender through 160 branches throughout Australia.
BOQ developed a franchise model as part of its expansion in 2000. The bank has more than 95 branches. Owner managers manage them and receive commissions for the loans they generate.
Many mortgage products are available from banks to suit property owners and investors. These mortgage products include fixed- and adjustable-rate loans, as well as mortgages that offer line-of-credit.
BOQ also offers simplified home loans that allow you to offset your mortgage, make unlimited additional payments and withdraw unlimitedly.
10. HSBC Bank Australia Limited
- Gross mortgage lending: $112.3 billion
- Residential mortgage lending: $80.2 billion
- Housing investment lending: $32.1 billion
- Market share total 1.2%
HSBC Bank Australia Limited is a subsidiary of HSBC Holdings plc London and the largest foreign bank in Australia.
HSBC Australia is a local bank based out of Sydney. It was founded in 1985. It provides personal banking, cash management, as well as financial forwarding services and trade financing.
Customers can combine multiple products to receive lower interest rates by using flexible home loans offered by the bank. You can use HSBC’s intuitive online calculators to compare various owner-occupied and investor loan plans.
HSBC offers a basic home valuation loan program that comes with unlimited monthly payments and no ongoing service fees.
The bank’s relationship manager can help you select the best mortgage rate.