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 Key Buyers Chapter
The Mortgage industry in Australia displays a medium level of market share concentration, with the four largest players accounting for just under 67% of industry revenue in 2014-15. Over the past two decades, industry concentration has been on the rise. The financial crisis increased the industry's concentration, as it forced the larger players to consolidate when the industry underwent drastic structural change.
Mergers and takeovers, including the merger 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