When it comes to the lending market in Australia, it stands out as one of the most fiercely competitive on a global scale. With an impressive count of 97 banking companies catering to approximately 18 million clients across the country, as reported by the Australian Banking Association, the range of financial services available is extensive.

These services encompass personal and home loans, savings accounts, credit cards, financial planning services, business banking, insurance services, and investment tools.

Notwithstanding the significant number of banking institutions, a mere five banks dominate the country's mortgage lending market, accounting for a staggering 91% share. Unsurprisingly, the prominent players in this arena are the "big four" – Commonwealth Bank, Westpac, NAB, and ANZ – together constituting over three-quarters of the sector.

Let's delve into Australia's Top 5 Biggest Mortgage Lenders, ranked by market share, per the December 2020 figures provided by database firm Statistica.

The 5 Biggest Mortage Lenders in Australia 

1 - Commonwealth Bank of Australia (CBA)

Market share: 25.73%
Gross mortgage lending: $5,548.83 billion
Gross residential mortgage lending: $3,570.02 billion
Gross investment mortgage lending: $1,888.81 billion

CBA, one of Australia's leading multinational banks and a member of the illustrious "big four," offers extensive financial services. Its offerings include mortgages, personal loans, savings accounts, credit cards, business banking, financial planning services, pensions and advice, insurance services, and investment vehicles.

Among CBA's highly sought-after mortgage products, the Extra Home Loan stands out, allowing borrowers to save at the start of their mortgage with an introductory rate or benefit from a discount throughout the loan term – or even both, in the case of first-time home buyers.

2 - Westpac Banking Corporation

Market share: 23%
Gross mortgage lending: $4,879.72 billion
Gross residential mortgage lending: $2,743.49 billion
Gross investment mortgage lending: $2,136.23 billion

Westpac, the pioneering bank in Australia and a member of the esteemed "big four," offers a diverse range of mortgage products tailored to various borrowers, from first-time homebuyers to astute property investors. Most Westpac mortgages have notable features.

These include the option to reduce payments for up to six months for holidays or home renovations. They also offer a parental leave reduction. Additionally, there is flexibility to make extra repayments and have offset accounts. Some examples of these mortgages are the Rocket Repay Home Loan, Rocket Investment Home Loan, and the SmartPay automatic payment program.

3 - National Australia Bank Limited (NAB)

Market share: 14.78%
Gross mortgage lending: $3,136.31 billion
Gross residential mortgage lending: $1,862.8 billion
Gross investment mortgage lending: $1,273.51 billion

NAB, another significant player among Australia's "big four" banks, offers an extensive suite of financial products and services, encompassing home loans, personal loans, transaction accounts, insurance, and personal and business banking services.

For property buyers, NAB makes it easy to combine a mortgage with other products - such as a credit card and home and property insurance - at a discounted rate. In addition, NAB offers offset accounts and similar benefits for other loans. Notably, NAB was one of the first lenders to be certified as a supplier for the Defence House Ownership Assistance Scheme (DHOAS), which provides members of the Australian Defence Force with house loan advice and discounted rates.

More: National Australia Bank Alters Home Loan Refinancing Criteria

4 - Australia and New Zealand Banking Group Limited (ANZ)

Market share: 14.28%
Gross mortgage lending: $3,030.65 billion
Gross residential mortgage lending: $1,999.08 billion
Gross investment mortgage lending: $1,031.57 billion

ANZ, one of the prominent "big four" banks in Australia, provides clients with the services of an ANZ Personal Banker. These bankers offer everyday banking advice and connect clients with specialists in various types of loans, including mortgages, retirement planning, investment, and small business finance.

Like other major mortgage lenders, Australia and New Zealand Banking Group Limited - ANZ allows borrowers to bundle mortgages with other products at lower interest rates. Additionally, ANZ provides offset accounts and similar benefits across its loan offerings. The bank also offers a unique Property Profile Report, empowering borrowers to understand a home's potential price better.

5 - ING Bank Australia Limited

Market share: 2.91%
Gross mortgage lending: $617.06 billion
Gross residential mortgage lending: $510.69 billion
Gross investment mortgage lending: $106.37 billion

ING Bank Australia Limited grants Australians access to flexible and low-rate home loans. As the world's largest direct savings bank, ING leverages its online-only presence to pass on cost savings to customers through discounted rates and fee waivers, benefitting from not needing to maintain physical branches.