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 Products Chapter
The Mortgages industry is largely made up of two major mortgage types: fixed-rate loans and variable-rate loans. The variable-rate loan market is far more dynamic than the fixed-rate market, with several different types of loan available, some with a range of features catering to the various needs of borrowers. Other loan types include line of credit and low-documentation (also known as low-doc) loans.
Standard variable loans
Standard variable loans are the most common type of mortgage product. This type of loan has a variable interest rate which can change at any time, but is usually linked to an underlying cash rate set by the Reserve Bank... purchase to read more