Mortgage volumes in the country’s most populous state rose 14% in 2020, thanks to strong refinancing activity, new figures have revealed.
According to the month of December 2020 Residential mortgage activity NSW Land Registry Services (NSW LRS) report, there were 249,254 mortgages registered on NSW residential titles during the year – up almost 14% from the previous year.
Growth was strongly driven by refinancing activity, which grew 22% year-on-year as the country as a whole recorded record interest rates and lenders offering competitive repayment deals.
According to the NSW LRS, the Commonwealth Bank of Australia (CBA) received the highest number of mortgages for NSW properties in 2020, representing 56,020 mortgages registered in the state, up 12% from its position in 2019.
The big bank also received the largest annual increase in the volume of newly issued mortgages.
ANZ, who reported increased activity earlier in the year (resulting in slower turnaround times), was the lender with the largest increase in mortgages held on NSW property in the 12 months. According to the data, the lender’s annual volumes increased 80% to 33,585 mortgages. Its overall performance was driven by loans refinanced by the bank – winning nearly three times as many mortgages through refinancing as in 2019, according to NSW LRS.
Westpac is the lender that lost the most mortgages on industrial property titles in 2020.
Meanwhile, Macquarie has secured the largest share of mortgages under NSW residential securities (earning 2,500 more than any other NSW lender) and has more than doubled his mortgages on NSW securities over the past 18 years. month.
December 2020 figures
While the mortgage market was disrupted during the year due to the coronavirus pandemic and its associated economic impacts, the last month of the calendar year saw the New South Wales residential mortgage market reach a three-year high (and the third highest in over 16 years).
In December 2020, newly created mortgages increased 25% from December 2019 and reached the largest net gain in over 24 months.
This has been attributed to leverage on previously unencumbered residential properties (as evidenced by the increase in new mortgages (25%) versus “closed” mortgages (15%)).
During the last month of the year, refinancing volumes remained strong (up 5% from December 2019), but weakened from the mid-year refinancing peak.
The majors also increased their new mortgage market share in December 2020 compared to the previous comparative period, with 1,813 mortgages held by the Big Four banks, the highest in over 24 months.
Non-major domestic banks recorded a positive net refinancing position in December 2020. The segment recorded positive net refinancing for every month in 2020, with December 2020 being the second most important month, winning 1.8 mortgages for every lost person. .
Noting the figures for 2020, Jerry Goldfried, Director of Analytics and Insights at NSW Land Registry Services, commented: “In a year like no other, the trends have been disrupted, especially for emerging non- lenders. ADI.
“Since then, there have been early signs of a rebound for some lenders in the final months of 2020. As mid-year mortgage activity has been affected by buyers of NSW properties have sailed COVID-19, it is encouraging to see December come to a close so strongly. “
[Related: Brokers’ lodgements continue to rise]
Annie Kane is the editor-in-chief of The Adviser and Mortgage Business.
In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintechs and the broader lending landscape – Annie is also the host of Elite Broker and In Focus podcasts and The Adviser Live webcasts. .