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Mortgages in Australia: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Mortgages Market Research Report | ANZSIC X0010 | Jun 2014

Variable conditions: Lower interest rates cause revenue to drop despite increased lending

IBISWorld’s Mortgages market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Industry Statistics & Market Size
Revenue
$74bn
Annual Growth 09-14
-2.0%
Annual Growth 14-19
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Profit
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Employment
79,359
Businesses
119
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 - Starting a New Business Chapter

To be able to issue home loans, a lending institution needs to have access to capital that it can use to finance the loan. Therefore, a firm considering entry into the Mortgage industry in Australia must first establish a reliable source of funding. The cost of funding is important because it determines how competitively priced the new lender's products will be. Since the exit of investors from securitisation markets has occurred following the global financial crisis, funding has become far more difficult to obtain, resulting in increased barriers to entry. Additionally, the funding that is accessible now comes at a higher cost, placing further cost burden on potential entrants... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Mortgages Industry?

This industry comprises the mortgage lending activities of authorised deposit-taking institutions (ADIs). ADIs include banks, building societies and credit unions. A mortgage is a loan secured by real property. The features of a mortgage include loan size, maturity, interest rate and payment method. Loan size depends mostly on the value of the securing property. Mortgages can be refinanced to reflect property revaluations. The industry does not include mortgage brokers.

Industry Products
Standard variable loansBasic variable loansFixed-rate loansLine of credit
 
Industry Activities
Mortgage originationMortgage refinancing


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