NAB and ANZ advance larger loans
One measure of bank brand recall - relating to the funder of a borrower's home loan - may be pretty sharp, if one table in the summary of the latest The Household, Income and Labour Dynamics in Australia (HILDA) Survey is any guide.A listing of 15 banks in the summary of findings from the 2014 survey, published this week by the University of Melbourne, correlates well with market shares derived from regular APRA data.The HILDA survey put Commonwealth Bank as holder of the leading market share with 23.8 per cent, followed by Westpac with 19.5 per cent.ANZ and National Australia Bank, the survey shows, "have larger shares of outstanding funds than they do of households—that is, on average, they have larger loans."Collectively, including wholly-owned subsidiaries, the HILDA Survey data shows that, in 2014, the Big Four banks accounted for 72.4 per cent of the primary home loan market, as measured by share of outstanding funds on loan. It found that "mortgage brokers are an important, but not dominant feature of the home loan market. Of households with home loans, 35.8 per cent used a mortgage broker to obtain the home loan."Brokers originated larger loans, "with 40.6 per cent of funds on loan obtained via a mortgage broker."The mean minimum repayment in 2014 was A$1736 per month, while the mean actual repayment was $2014.In 2014, 55.4 per cent of households "usually paid more than the minimum repayment, averaging additional repayments of $612 per month."The proportion paying more than the minimum is highest for households with outstanding balances of less than $250,000, and lowest for households with outstanding balances of $500,000 or more."However, "among those paying more than the minimum, the mean additional repayment, at $1856, is much higher for households with loans of $500,000 or more than for other households, who average between $505 and $564 per month in additional repayments."Among households owning investment housing properties, the mean number of properties held was approximately 1.6 the survey found.