Big Four Banks capturing home loan market

Before the economic crash last year the major banks were handling about 60% of new mortgages, but in July this year the big four captured nearly all new mortgages.

Pressure is growing on the Government to unwind the funding guarantees that have given the big four banks a huge advantage over their rivals. Smaller banks and non-bank lenders are being forced to pay twice the borrowing rate of their AA-rated bigger rivals to raise funds to provide mortgages.