Industry Analysis & Industry Trends
Mortgage lenders help consumers to realise the Australian dream of owning a home. However, they were not immune from the economic downturn, which led to a drop in demand for home finance. The beginning of the past five years was characterised by consumer deleveraging, low credit availability and generally low sentiment. This started to change as the government lowered the official cash rate and implemented numerous assistance programs to support growth in the residential housing market. As a result, the value of mortgages issued by the industry has grown over the past five years. Approvals of new loans declined only in 2010-11 and have grown at an increasing rate since then. In March 2014, approvals of new loans were 27.7% higher than the previous year... 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 peoples' 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 labour-intensive undertaking... purchase to read more