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The mutual bank announced a solid 6.5 per cent growth in its home lending portfolio over the last year, which now stands at $17.5 billion.
Within this figure was a standout statistic: 29 per cent of all new loans issued were to first home buyers. This represents $1.24 billion in lending.
This growth wasn’t confined to a single region. GSB reported increased lending activity across every state and territory, with the most substantial percentage surges occurring in markets known for relative affordability.
Tasmania saw a rise of 19.9 per cent, South Australia 11.64 per cent, and Victoria 10.3 per cent. Queensland, the bank’s largest lending market, also grew by 6.4 per cent.
GSB CEO Paul Lewis said many of these first-time buyers are taking advantage of government support to help them break into a difficult market.
A key part of this support is facilitated through the government’s Home Guarantee Scheme (HGS), which allows eligible buyers to purchase a home with a deposit as low as 5 per cent without paying lenders mortgage insurance (LMI).
GSB revealed that 27 per cent of its HGS borrowers are key workers – teachers, nurses, and emergency services personnel.
“No country can survive without essential services and notably, more than a quarter of borrowers we’ve lent to via the Home Guarantee Scheme are key workers. Helping them achieve home ownership is not only life-changing for them, it’s a positive investment in Australia’s future,” said Lewis.
The strong performance extends beyond mortgages. The bank’s deposits grew by 2.5 per cent to $14.5 billion, a factor that directly supports its ability to lend.
Looking ahead, GSB said it will continue to enhance its small business support. The Business+ digital business platform is getting an expansion, with new products and services.
A recent partnership with fintechs MYOB and Constantinople brought a new embedded finance product. This is a business transaction account that can be opened and managed directly within the MYOB Solo app.
According to GSB, these investments have helped the lender be voted the top option for brokers among the non-majors.
“In a competitive environment we have delivered strong and sustainable financial results, underpinned by solid product performance and disciplined cost management,” said Lewis.
“Through enhanced capability, expanded capacity, and continued investment in our infrastructure and people, we’re delivering for our customers today while building for long-term growth as a leading banking alternative.”
