Industry Analysis & Industry Trends
The Mortgages industry plays a key role in the dream of home ownership for many households, and this is evident in the growing asset base of the overall industry. The beginning of the past five-year period was characterised by consumer deleveraging, low credit availability and generally low consumer sentiment. This started to change, however, 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. New loan approvals declined in 2010-11, but have grown at an increasing rate since then. In March 2014, approvals of new loans were 27.7% higher than in the previous year... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Mortgages industry in Australia is in the mature stage of its life cycle. Industry value added (IVA), which measures the industry's contribution to the economy, has been more or less growing in line with general economic growth. IVA is forecast to grow at an annualised 2.8% over the 10 years through 2020-21, while GDP is forecast to grow at 2.8% over the same period. This indicates the industry's contribution to the overall economy is increasing.
As the main source of financing to borrowers participating in the Australian real estate market, the industry has grown at a faster rate than the overall economy prior to the global financial crisis. The current housing boom and the rapid appreciation in the value of real estate has been a large reason for this growth... purchase to read more