Why Is the Big Four's Share of New Home Loans Slipping? AFG's Record June 2026 Quarter Explained

Key takeaway: AFG, one of Australia's largest mortgage aggregators, lodged a record June 2026 quarter by value — yet the major banks' share of those lodgements slipped, with Westpac the only Big Four bank topping the lender table. Australian borrowers are increasingly financing their homes beyond the majors.

Fresh data from aggregator AFG, reported by The Adviser on 16 July 2026, points to a broker channel running at full speed — and a continued drift of borrower demand away from the major banks.

What AFG's June 2026 quarter data shows

The headline finding is simple: brokers lodged a record volume of loans by value, but a smaller slice of it went to the Big Four. AFG described the June quarter as a "record" by value, and while Westpac topped the individual lender table, the collective share held by the major banks declined. In other words, the growth in Australia's mortgage market is being captured disproportionately by non-major banks and non-bank lenders.

This continues a structural trend the broker channel has been reporting for several years: as more than seven in ten Australian home loans now flow through brokers, borrowers see a wider menu of lenders than a branch network can ever show them — and they are choosing from it.

Why borrowers are moving beyond the Big Four

The shift is driven by credit policy as much as price. With the RBA cash rate held at 4.35% since 17 June 2026 and inflation still at 4.0% (ABS, May 2026), the major banks have remained conservative on serviceability buffers and income verification. Borrowers with complex or non-standard income — the self-employed, small business owners, recent migrants without a long PAYG history — are the first to be declined under those settings, even when they are financially sound.

Non-major and non-bank lenders assess these borrowers differently: alternative documentation such as BAS statements or an accountant's letter can stand in for payslips, and policies are built around real-world cash flow rather than a standardised template.

"When brokers write record volumes yet the majors' share keeps falling, the message is clear: Australian borrowers no longer default to the Big Four."

What this means for borrowers: the MPFG view

For borrowers, the practical lesson from AFG's data is that a decline from a major bank is a detour, not a dead end. A growing share of the market — including self-employed applicants, commercial property buyers and investors needing bridging finance — is being served by lenders whose credit policies are designed for them. MPFG Capital, an Australian non-bank lender (ACL 553698) with more than $700 million in loans funded, offers Alt Doc loans for the self-employed, commercial property finance, bridging loans and refinancing up to $7.5 million. You can compare the full range on MPFG's loan products page.

FAQ

Why are the major banks losing home loan market share in Australia?

Broker-lodged data such as AFG's June 2026 quarter shows borrowers increasingly placed with non-major and non-bank lenders. Key drivers are conservative serviceability and income-verification policies at the majors, sharper competition from smaller lenders, and the broker channel making alternatives visible to borrowers.

If a major bank declined my application, can a non-bank lender still approve it?

Often, yes — subject to credit assessment. Non-bank lenders use different credit policies, and many are built specifically for self-employed borrowers, new migrants and others with non-standard income documentation. A decline from one lender does not mean every lender will decline you.

What is the difference between a non-major bank and a non-bank lender?

A non-major bank is still a licensed bank (an ADI regulated by APRA) that takes deposits. A non-bank lender does not take deposits; it funds loans through wholesale facilities and operates under an Australian Credit Licence with ASIC oversight. Both can offer home and commercial loans, and both are gaining share from the Big Four.

This article is general information only and does not constitute financial or credit advice. All applications are subject to credit assessment by MPFG Capital (ACL 553698).