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 industry has been highly volatile since the onset of the financial crisis. During 2007-08 (and in earlier years), the industry grew strongly 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 SWOT Analysis Chapter
The Mortgages industry in Australia is in the mature stage of its life cycle. Industry value added (IVA) has been more or less growing in line with the rate of growth of the economy over the past decade. IVA is forecast to grow at an annualised 5.1% over the 10 years through 2018-19, while GDP is forecast to grow at 2.5% over the same period. However, IVA growth is being measured off a low base year.
As the key finance supplier to borrowers participating in the Australian real estate market, the industry grew at a faster pace than the overall economy prior to 2008-09. Credit was loose, and the Australian dream seemed easily attainable. Part of the reason was also that the value of real estate was appreciating rapidly over the last decade... purchase to read more