Commonwealth Bank of Australia’s increased rates and stricter lending standards for property investors have been a blessing for some competitors, many of whom are generating record new loans by welcoming the borrowers CBA has rejected.

Australia and New Zealand Banking Group (ANZ) and regional player Auswide are both claiming record-breaking months for new mortgages and refinancing since CBA raised its rates.

“Off the back of a record-breaking December, I am thrilled to say that January was yet again another record-breaking month for ANZ,” Simone Tilley, head of ANZ’s national broker distribution, wrote to mortgage brokers.

Tilley confirmed that ANZ was continuing to accept owner-occupier and investor-borrower applications.  

Meanwhile, Bundaberg-based Auswide, which recently overhauled its administration to improve mortgage processing, claims its current loan volumes are doubling because of its attractive rates and willingness to take on new business.

“We are picking up some from the CBA and refinancing across the four major banks. Borrowers seem more willing to scout around for the best deal,” said Martin Barrett, chief executive officer of Auswide Bank.

CBA’s rate rises and tougher lending standards are estimated to have sent $1bn a month to smaller lenders, said John Flavell, chief executive officer of Mortgage Choice.

Not all lenders are welcoming the flood of borrowers with open arms, however, and many are particularly wary of investors from Sydney and Melbourne.

Some lenders are increasing their prices and toughening conditions to deter investment borrowers, as they’re worried about breaching APRA’s 10% speed limit which caps annual growth in property investor lending.  

Last week Citigroup banned mortgage lending to all overseas borrowers, except elite high net-worth clients because of concerns about its capacity to handle the number of applications following the withdrawal of many other major Aussie banks.