Home loan growth for the customer owned banking sector has more than doubled the average increase for the banking system comprising all ADIs, according to the latest quarterly ADI data by APRA (1.32% v 0.57%).
“While negotiating the pandemic with operational resilience, customer owned banking institutions have also continued to back Australians on home ownership,” said Michael Lawrence, CEO of the Customer Owned Banking Association (COBA).
“There are members experiencing spikes in home lending, such as Sydney-based Community First Credit Union, which has reported annualised net lending growth of 25 per cent, as at December 2020.
“These banking institutions are helping customers take advantage of a low-interest rate environment, including first-time buyers, and owner-occupiers refinancing to save money.
“The Government’s First Home Loan Deposit Scheme (FHLDS) is a contributor to loan activity and a standout for younger buyers entering the market. More than 8,300 first home buyers have now purchased a property with a loan from one of the 20 customer owned banking institutions on the scheme’s panel of lenders.
“This has allowed borrowers with deposits as little as 5 per cent to purchase a home. It’s an outstanding result, and for scheme applicants building or purchasing a new property, there’s scope to explore even further savings through the $25,000 HomeBuilder grant and other state-based incentives.
“The government is also reissuing around 1,800 unused FHLDS guarantees from the 2019/20 financial year, providing aspiring buyers with yet another reason to enquire with a participating lender.
“Going the extra mile for customers is what our sector does best. This is reflected in innovations in home lending, such as Heritage Bank’s new loans origination platform that will cut the processing time for the average home loan application by up to 80 per cent.”
Customer owned banking institutions on the FHLDS panel of lenders
Australian Military Bank, Bank Australia, Bank First, Bank of us, Beyond Bank Australia, Community First Credit Union, CUA, Defence Bank, Gateway Bank, G&C Mutual Bank, People’s Choice Credit Union, Police Bank (including the Border Bank and Bank of Heritage Isle), P&N Bank, QBANK, Queensland Country Bank, Regional Australia Bank, Sydney Mutual Bank and Endeavour Bank (divisions of Australian Mutual Bank Ltd), Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank), The Mutual Bank, WAW Credit Union.
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