Industry Analysis & Industry Trends
Mortgage lenders help consumers to realise the dream of owning a home. The industry was not immune to 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 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 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 over the past decade. IVA is forecast to grow at an annualised 6.0% over the 10 years through 2019-20, while GDP is forecast to grow at 2.7% over the same period. However, IVA growth over this period 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... purchase to read more