The exchange for the debt economy
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Non-bank lenders now account for 10.7% of the value of new home lending, up from 4.8% when the ABS series began in September 2019. Their market share has risen steadily since mid-2023.
The growth occurred even as the broader mortgage market contracted. The value of total new housing loans fell 5.2% from the March to June quarter, while non-ADI lending rose 3.2% over the same period, from $10.16 billion to $10.49 billion.
| Lender type | June 2025 qtr | June 2026 qtr | Increase | YoY change |
|---|---|---|---|---|
| Non-bank lenders (non-ADIs) | $6.35bn | $10.49bn | $4.14bn | 65.2% |
| Major banks + other ADIs (e.g. credit unions) | $85.41bn | $87.61bn | $2.2bn | 2.6% |
Non-bank lenders now hold a 10.7% share of new home lending value, up from 4.8% in September 2019
Source: ABS Lending Indicators, June quarter 2026. Figures are the value of new housing loan commitments to households, seasonally adjusted, and exclude refinancing. Lender-type series are seasonally adjusted independently of the headline total, so figures may differ slightly from the total published by the ABS. Analysis: Money.com.au.
Nick Burgess , mortgage expert at Money.com.au, attributed the shift in part to regulatory differences between bank and non-bank lenders. “Non-bank lenders sit outside APRA’s prudential rules, including the 3% serviceability buffer banks have to apply,” he said. “Most still apply a buffer of their own, but it’s often lower, which can mean more borrowing capacity than you’d get from a traditional bank.
“This matters more than ever as this year’s rate rises, reduced borrowing power and tighter lending conditions for investors following the Federal Budget have squeezed how much people can borrow. These factors are pushing more borrowers to look beyond traditional banks, and that’s reflected in the growing value of home loans being issued by non-bank lenders.”
Burgess also noted that lending policy flexibility was drawing borrowers who do not meet standard bank criteria.
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