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 Key Buyers Chapter
The Mortgage industry in Australia displays a medium level of concentration, with the four largest players accounting for a market share of just over 68% of industry revenue. Over the past two decades, industry concentration has been on the rise. The financial crisis accelerated the pace of concentration in the industry, as it forced the larger players to consolidate when the industry underwent drastic structural change.
Mergers and takeovers, including that of Westpac and the Bank of Melbourne, have had a drastic influence on the concentration level of the industry. That move brought together two significant players, positioning Westpac among the four largest Australian banks. Another significant acquisition that took place was ANZ's purchase of the National Bank of New Zealand... purchase to read more