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.
Despite this volume, only 10 banks have accounted for over 91% of the market, according to the latest Australian Prudential Regulation Authority (APRA) data.
Below, we take a closer look at the lending market and reveal the country’s biggest lenders.
The biggest banks and ADIs by lending volume
APRA regularly releases banking statistics on Australia’s Authorised Deposit-taking Institutions (ADIs). These are financial companies licensed by the government to provide 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. In fact, gross lending figures from Commonwealth Bank, Westpac, ANZ, and NAB comprise 77% of the entire lending sector.
Here are the 10 biggest lenders in Australia based on gross lending volume and market share from January to May 2021.
- Commonwealth Bank of Australia
- Westpac Banking Corporation
- Australia and New Zealand Banking Group Limited
- National Australia Bank Limited
- Macquarie Bank Limited
- ING Bank (Australia) Limited
- Bendigo and Adelaide Bank Limited
- Suncorp-Metway Limited
- Bank of Queensland Limited
- HSBC Bank Australia Limited
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
- Total market share: 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.
Headquartered in Sydney, the bank has more than 1,100 branches and 4,300 ATMs nationwide. It also conducts business in Asia, New Zealand, the United States, and the United Kingdom. Moreover, the PT Bank Commonwealth in Indonesia and ASB Bank in New Zealand are subsidiaries of CBA.
Borrowers can take advantage of CBA’s Extra Home Loan program on top of the bank’s fixed rate mortgages. This allows first time buyers to access discounts for the life of the loan and on upfront costs through an introductory interest rate.
- Gross mortgage lending: $2,050.1 billion
- Residential mortgage lending $1,164 billion
- Housing investment lending: $886.1 billion
- Total market share: 22.5%
Also one of the Big Four, Westpac is the first and oldest banking institution in the country. It was founded in 1817 as the Bank of New South Wales and was rebranded after acquiring the Commercial Bank of Australia in 1982.
Westpac now has 1,204 branches nationwide and provides wealth management and investment banking services to clients worldwide.
Besides conventional retail banking, it offers a wide range of mortgage products for home buyers and real estate investors alike. In fact, Westpac has the highest gross investment lending value among the largest lenders on this list.
Moreover, Westpac offers mortgage loans with reduced rates of up to six months for a home renovation. Borrowers have the option to make extra repayments with no break costs under the Rocket Repay home loan program.
Also read: Best home loans for first home buyers
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
- Total market share: 14.4%
Based in Melbourne, ANZ is one of the Big Four and Australia’s third largest bank by market capitalisation. Like Westpac, it offers global wealth management and investment banking services.
ANZ is well known for its personal banking program that links customers to specialists and financial advisers who can walk them through their mortgage and financial offerings.
Like most financial institutions on this list, ANZ allows customers to bundle products together to avail of home loans at lower rates. 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
- Total market share: 14.4%
The last of the Big Four banks, NAB offers similar personal and corporate banking services as other lenders on this list. However, it is one of the country’s first providers of the Defence Home Ownership Assistance Scheme (DHOAS).
This program gives Australian Defence Force members access to expert mortgage advice and home loan products at lower interest rates.
Additionally, NAB has a strong online platform that allows borrowers to use a variety of tools for calculating repayments, home equity, and selecting the most suitable loan for their financial situation.
With 1,590 branches in the country, the key service area of NAB is Australia, but 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
- Total market share: 3.5%
Based in Sydney, Macquarie is a financial services company and investment bank that serves clients worldwide.
In addition to conventional banking, Macquarie offers forex, equities, commodities, and money market trading services. It also has provided residential mortgage products since the early 1990s.
The bank offers extensive and flexible home loan products to borrowers. You can easily lock in on the best fixed and variable rate home loans through their website after using a variety of mortgage calculators to help you decide.
Furthermore, Macquarie lets you create up to 10 offset accounts to split your loan and save on interest rates. You may also opt to make extra repayments to pay the mortgage off faster.
6. ING Bank Australia Limited
- Gross mortgage lending: $258.9 billion
- Residential mortgage lending: $217.5 billion
- Housing investment lending: $41.4 billion
- Total market share: 2.8%
A subsidiary of the multinational Dutch bank ING Group, ING Bank is the largest direct savings bank operating in Australia.
It provides consumer and corporate banking services, as well as various insurance products, superannuation, and mortgages.
Additionally, ING has an optional “Mortgage Simplifier” program that lets borrowers make extra repayments for free and conveniently redraw their money. Being an online-only lender, you can potentially pay off your loan faster due to the absence of annual and transaction 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
- Total market share: 2.7%
Founded in 1858, Bendigo Bank is among the oldest banks in Australia to specialise in retail services. It also became the first financial institution in the country to introduce Visa debit and credit cards in the 1980s.
It eventually merged with Adelaide Bank in 2007, and the new company now has more than 400 branches nationwide.
Bendigo offers personal savings accounts, credit cards, insurance products, and mortgage loans. It’s also the first financial institution in Australia to develop a mobile-only digital bank.
The bank also places special emphasis on ethical lending in developing Bendigo Express, a home loan assessment program that uses artificial intelligence (AI). Borrowers can expect faster mortgage processing times through the Bendigo Express Home Loan program.
8. Suncorp-Metway Limited
- Gross mortgage lending: $211.8 billion
- Residential mortgage lending: $151.2 billion
- Housing investment lending: $60.6 billion
- Total market share: 2.3%
Headquartered in Brisbane, Suncorp-Metway is one of the largest mortgage lenders in Australia that offer general insurance. It also provides banking, superannuation, and wealth management 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.
Like most large lenders on this list, Suncorp bank has numerous loan calculators for comparing home loans, computing stamp duty costs, and refinancing.
You can complete the pre-approval online in just 10 minutes and wait for a lender to call you the next banking day. If you are unsure about your options, you can use their 100% obligation free financial consultation service with a finance professional.
9. Bank of Queensland Limited (BOQ)
- Gross mortgage lending: $148.4 billion
- Residential mortgage lending: $90.3 billion
- Housing investment lending: $58.1 billion
- Total market share: 1.6%
This Brisbane-based lender specialises in providing banking services and insurance for small to medium enterprises. It also provides retail banking through its 160 branches in Australia.
In the early 2000s, BOQ adopted a franchise model as a vital part of its expansion. The bank currently has more than 95 branches operated by owner managers who, in turn, are paid commissions on the loans they generate.
Regarding mortgage products, the bank has a wide range of home loan options for both owner-occupiers and property investors. These include conventional fixed and variable rate loans, as well as line-of-credit mortgages.
Furthermore, BOQ has its own version of simplified home loans that allow mortgage offsets, unlimited additional repayments, and unlimited free redraw.
10. HSBC Bank Australia Limited
- Gross mortgage lending: $112.3 billion
- Residential mortgage lending: $80.2 billion
- Housing investment lending: $32.1 billion
- Total market share: 1.2%
HSBC Bank Australia Limited is a subsidiary of HSBC Holdings plc in London, making it the largest foreign financial institution in Australia.
Founded in 1985 and headquartered in Sydney, HSBC Australia provides personal banking, cash management, payment, financial forwarding, and trade finance to local customers.
This bank also offers flexible home loan options in which they can bundle multiple products to get lower interest rates. You can use HSBC’s intuitive online calculators to compare various owner-occupied and investor loan plans.
For instance, HSBC has a basic Home Value Loan program that comes with unlimited free extra payments without ongoing monthly service fees.
If you should choose a variable rate mortgage, a relationship manager from the bank will guide you through the process.