Overview

Unfixed: Cuts to the cash rate cause revenue to decline, despite growing mortgage portfolios

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 Analysis & Industry Trends

The Mortgages industry has declined over the past five years on the back of consistent cash rate cuts during the period. While a lower cash rate can benefit the industry through greater demand for mortgages and growth in housing prices, it has been more than offset by the decline in interest income for lenders. Industry revenue is forecast to decline at an annualised 2.9% over the five years through 2016-17. The RBA left the cash rate unchanged between August 2013 and February 2015, and from May 2015 until May 2016, which provided a slight boost to industry revenue over the two years through 2015-16. However, another rate cut in August 2016 is expected to contribute to a 4.2% decline in industry revenue over the current year, to $78.1 billion...

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Industry Report - Industry Locations Chapter

The Mortgage industry in Australia is spread out largely in line with the population distribution. Authorised deposit-taking institutions have reduced the size of the branch networks over the past five years. Movements in branch and establishment are largely driven by the big four banks. The number of branches in the big four banks' networks has fallen over the period as they transition towards digital banking platforms. The eastern states of New South Wales, Victoria and Queensland account for over three quarters of the total number of branches, with the majority located in the capital cities of these states. These cities and states are typically more densely populated, with Sydney and Melbourne being the financial hubs of Australia.

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Industry Products

What is the Mortgages Industry?

The Mortgages industry comprises the mortgage lending activities of authorised deposit-taking institutions (ADIs). ADIs include banks, building societies and credit unions. Industry revenue is generated through interest repayments and fees charged on mortgages. The industry does not include mortgage brokers.

Industry Products
Standard variable loans
Basic variable loans
Fixed-rate loans
Line of credit
Industry Activities
Mortgage origination
Mortgage refinancing

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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