Westpac Leads Major Banks While Non-Majors Win Refinance Business

New broker data shows Westpac leading the major banks, while non-major lenders are capturing a growing share of investor and refinance home loans.

A fresh snapshot of Australia's home loan market reveals the competitive landscape shifting in meaningful ways — and for borrowers, the direction of that shift matters.

The Adviser reports that the latest broker lodgement data for the June 2026 quarter shows Westpac brands at the front of the pack among the major banks, with 18 per cent of residential mortgage lodgements. CBA and ANZ brands came in at 16 per cent each, while NAB held at 8 per cent of the total market. That adds to 58 per cent for the major banks combined — down from 59.7 per cent a year earlier. The remaining 42 per cent went to non-major lenders, up from 40.3 per cent.

Average loan sizes continued to climb alongside that competition. The typical home loan arranged through the broker channel reached $727,345 in the June quarter, up from $678,333 a year ago — a jump of nearly $49,000 in twelve months, reflecting persistent upward pressure on property values even in a tighter rate environment.

Macquarie's Rise and the Non-Major Surge

One of the more striking data points in the June quarter is Macquarie's position. The bank captured 14 per cent of broker lodgements, running close behind CBA and ANZ — a figure that reflects the broader depth the mortgage market now has beyond the traditional big banks. For borrowers, Macquarie's presence at 14 per cent is a practical reminder that significant lenders beyond the Big Four are actively competing for home loan business.

The shift toward non-major lenders is most pronounced in two categories: investor lending and refinancing. For investor loans, non-majors lifted their share to 46 per cent of all investor lodgements, up from 42.9 per cent in the June quarter of 2025. The major banks' slice of investor lending fell to 54 per cent from 57.1 per cent. NAB, despite holding 8 per cent of overall lodgements, significantly over-indexed in investor flows — reflecting a competitive focus on property investor products specifically.

Refinancing tells a similar story. Non-major lenders captured 48 per cent of all refinance activity in the June quarter, up from 44.5 per cent a year earlier. For borrowers thinking about switching their home loan, the data suggests competitive offers are increasingly likely to come from outside the Big Four. Two years ago major banks dominated refinancing. Today nearly half of all broker-arranged refinances are going elsewhere.

The federal Budget's changes to investor tax settings have cooled some investor activity this quarter. Those investors who remain active appear to be shopping more broadly for competitive products rather than defaulting to their existing lender or the biggest name on the high street. That pattern is consistent with what the data shows: non-majors are winning a disproportionate share of the investors and refinancers who are still transacting.

Where the Major Banks Are Still Winning

The shift toward non-majors is not happening everywhere. In one critical segment, the major banks actually strengthened their position: first home buyer lending.

Major banks and their associated brands captured 72 per cent of first home buyer lodgements in the June quarter, up from 68.6 per cent a year earlier. Non-majors fell from 31.4 per cent to 28 per cent. The reasons are largely structural. Major banks have historically led access to government home guarantee schemes, and their size and credit processes give them advantages with borrowers who are navigating the mortgage market for the first time. For anyone starting their property journey, first home buyer loan options span a wider range of lenders than ever, but the big banks remain the dominant choice for this buyer group by a substantial margin.

The product mix data also captured something worth noting for borrowers weighing fixed versus variable rates. Fixed-rate loans grew to 3.8 per cent of lodgements in the June quarter, up from 2.3 per cent a year earlier. Standard variable loans still dominated overwhelmingly at 87.5 per cent, but the direction is clear: a growing cohort of borrowers is hedging.

With the RBA's cash rate sitting at 4.35 per cent after three hikes in 2026, and most industry forecasters now expecting the next move to be a cut rather than a rise, the timing calculus on fixing has changed meaningfully. Locking in when cuts are expected means potentially missing out on lower variable rates as they fall. That trade-off explains why variable still dominates — but the 3.8 per cent fixed share suggests a cohort is seeking certainty regardless.

Basic variable products — stripped-back loans with fewer features but sometimes sharper rates — fell from 9.5 per cent to 7.5 per cent of the market. That slight contraction may reflect borrowers moving toward standard variable products with offset accounts or redraw facilities, which have become increasingly valuable tools for managing surplus cash when rates are elevated.

What This Competition Means for Borrowers

The headline finding from the June quarter data is that more lenders are competing more intensely for more types of borrowers than at any point in recent years. That competition is most visible in the investor and refinancer segments, where the gap between the major banks and their non-major competitors has narrowed substantially.

For borrowers who have not reviewed their loan recently, the level of competition in the market suggests it is worth doing so. A rate set two or three years ago was priced in a very different competitive environment. Comparing home loan rates across the full market gives you an accurate picture of what is available now versus what you are currently paying.

If you are weighing whether a switch would save money, a refinance savings calculator gives you a ballpark figure before you go through the full process. For most borrowers, even a modest rate reduction on a loan averaging $727,000 translates to meaningful annual savings worth calculating.

The June quarter data reflects a market navigating genuine headwinds — rate rises, budget tax changes, and shifting borrower sentiment — but competing hard for your business nonetheless. That competitive pressure is most effectively used by borrowers who are actively engaged with what the market is offering.

Source: The Adviser