Industry Analysis & Industry Trends
Mortgage lenders facilitate the realisation of the Australian dream. Yet even they are not immune from the downturn the Australian economy has endured, leading to a drop in demand for home finance. The industry has experienced high volatility since the onset of the financial crisis. During 2007-08 (and in earlier years), the industry experienced robust growth as a credit boom and strong conditions in the housing market underpinned demand for mortgages. During 2008-09 and 2009-10, revenue plunged as the global financial crisis led demand for credit to fall sharply, and the housing market stalled. The industry rebounded strongly the following year, however, on the back of sharp cuts to interest rates, government support for the industry and pent-up demand for housing... purchase to read more
Industry Report - Industry Investment Chapter
This industry is highly focused on customer service. As taking out a mortgage and purchasing a home is such an important decision in people's lives, they prefer to deal with knowledgeable staff that are able to match their needs with the right type of mortgage product. This increases the level of employment that is required compared with capital, with the industry observing a high level of administrative and processing tasks.
Although the industry is increasingly using computer technology to reduce labour costs in the areas of administration, processing and delivery, overall, labour costs far outweigh those related to capital expenditure. Loans processing and administration is a highly capital-intensive undertaking... purchase to read more