Macquarie’s successful push to increase its share of the market was also a significant factor pushing other banks to sharpen their pricing pencils.
The big four banks were desperate to retain customers and were offering rates so competitive that many loans were unprofitable. The trigger for the home loans wars was the enormous refinancing event that has been in full swing this year as a large chunk of fixed interest rate loans began rolling off. And while in September, its share of this market was 25.4 per cent, experts believe the CBA won’t want to flirt with the 25 per cent level and will respond soon. The rule of thumb for the CBA was to have one in four home loans in the market.
