Macquarie's mortgage book grew fivefold to $191.5B under outgoing CEO, as big four banks report 12-20% drop in new loan applications since May budget.
Alpha Score of 37 reflects weak overall profile with moderate momentum, poor value, weak quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
Australia's four largest banks reported a 12% to 20% decline in new home loan applications since the May federal budget, the Reserve Bank of Australia confirmed. The RBA said demand for new home loans had "declined noticeably" after it left the cash rate on hold at 4.35%.
Macquarie Bank, the fifth-largest home lender, has been the main beneficiary of the shift. Its mortgage market share grew from 0.19% in 2010 to 7.33% in June this year, while most of the big four lost ground. Commonwealth Bank held its share near 25.36%, the only major bank to maintain its position since 2010. Westpac and ANZ slipped to 20.66% and 13.21% respectively.
Macquarie's mortgage portfolio hit A$191.5 billion in June, more than five times the A$34.3 billion it held when outgoing chief executive Shemara Wikramanayake took over eight years ago. Commonwealth Bank's CEO Matt Comyn called Macquarie a "formidable competitor" on home loans earlier this year.
The bank's online-only, broker-led model drives the expansion. Across the industry, mortgage brokers handle about 81% of all Australian home loans. Macquarie reports that roughly 95% of its mortgages come through brokers. That structure cuts the cost of maintaining branches, ATMs and cash networks, giving Macquarie a pricing advantage over the big four.
Macquarie does not always offer the lowest headline rate. Its lowest advertised variable rate is 6.04%, while at least 49 lenders currently offer rates below 6%. Instead, Macquarie competes on speed and certainty. It targets low-risk borrowers with stable incomes and good credit records, and its digital system gives brokers a clear view of application progress. The approach reduces time and stress for buyers, the bank says.
Macquarie's deposit strategy is closely tied to its mortgage growth. It attracted A$223.3 billion in deposits by June, partly by offering at-call savings accounts with interest rates above 5% and fewer conditions than the big four's comparable accounts. Those deposits provide a funding source for its home loan book.
Wikramanayake steps down in November. Her successor, Greg Ward, has led Macquarie's banking and financial services division since 2013. His background suggests banking will remain a priority.
New federal budget measures will take effect from July 2027, restricting negative gearing to new residential investments and changing the capital gains tax discount. The changes are expected to favour new builds over existing homes. All four major banks have reported a bigger drop in investor loans than owner-occupier loans. Westpac forecasts its investor loan book will halve next financial year. Commonwealth Bank expects a less severe decline.
Research published alongside the analysis found that easier access to alternative lenders improves customers' bargaining position, giving established banks less ability to charge higher rates. Smaller lenders pressure the big four to price more competitively, process applications faster, and work harder to retain customers.
Macquarie's market share is now large enough that even the largest banks have to take notice. With the pool of new applications shrinking, every lender is competing harder to poach borrowers from rivals.
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