Macquarie Group, an Australia-based investment bank, is seeking to expand rapidly into residential mortgage business in the country, in a bid to offer borrowers a competitive alternative.
East & Partners principal analyst Paul Dowling was quoted by Reuters as saying that Macquarie is probably the standout and the more aggressive mortgage lender at the moment, with deployment of "considerable cash balances."
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The lender is moving away from investment banking business to less risky operations, and currently has more liquidity to lend to home buyers to gain a solid presence.
Currently, the country’s $1.25trn mortgage business is dominated by Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac Banking.
According to Canberra-based research firm The Australia Institute’s data, the top four lenders write around 90% of the nation’s home loans and make profit of $71,900 for an average 25-yr home loan, excluding fees charged.
Australia’s home loans market has also attracted other firms such as mortgage group Yellow Brick Road Holdings Ltd, 14.9% -owned by Macquarie, and the Australian arms of ING and Citi.
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