Industry Analysis & Industry Trends
The Mortgages industry plays a key role in the dream of home ownership for many people, 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 and low credit availability. However, as the government lowered the official cash rate and implemented numerous assistance programs to support growth in the residential housing market, these trends shifted. As a result, the value of mortgages issued by the industry has grown strongly over the past five years. New loan approvals declined in 2010-11, but have grown rapidly since then. In June 2015, approvals of new loans were 12.1% higher than in 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, is forecast to grow at an annualised 3.0% over the 10 years through 2020-21, while GDP is forecast to grow at 2.6% over the same period. This represents an outperformance of GDP, indicating the industry's contribution to the overall economy is increasing.
As the main source of financing to borrowers participating in the Australian real estate market, the industry has grown at a faster rate than the overall economy. The current housing boom and the rapid appreciation in the value of real estate has been a large reason for this growth... purchase to read more