Non-banks lose ground as record low mortgage growth continues in April: RBA

Non-bank lenders share of the total lending market declined markedly in April as mortgage lending remained at record low annual growth. 

In percentage terms banks have almost 92% of the total lending market and non-banks just 8%. 

A year ago banks had less than 90% of the total lending market while 11 years ago (April 2001) they had less than 80% of the total market. 

Total mortgages advanced by both banks and non-banks increased by just 0.4% in April following a 0.4% increase in March leaving the annual pace of growth at 5.3%, according to the latest RBA financial aggregates. 

Annual mortgage growth has been at 5.3% since January, the lowest growth since 1977, according to RBA records. 

Despite this very slow pace of growth banks share of the total lending market increased by $12 billion from $1.708 trillion to $1.72 trillion, while non-banks’ total lending fell by from $155 billion to $152 billion – the fifth successive month (since December) that their total aggregate lending has fallen. 

Banks vs non-banks lending books (figures in $ billions)

Over April total owner-occupier mortgage lending totalled $839 billion, up $3 billion from $836 billion in March, while loans for investment property purchases totalled $401 billion compared with $399 billion in March.