Low-documentation and Non-conforming Mortgage Markets in Australia 2006

Abstract

Overview

Introduction

This report firstly analyzes the growth of the entire mortgage market and then looks at both the low-doc and non-conforming markets. It examines the growth of each market, the size of each market in terms of the potential population and also loans advanced. It also discusses any competitive developments and concludes by forecasting each market to 2011.

Scope

• Focuses specifically on the low-doc and non-conforming mortgage lending in Australia, sizing lending commitments in the market from 2002-2006.
• This report analyses competitor dynamics in the market including the market shares of the non-conforming specialist lenders in 2005 and 2006.
• Forecasts the size of each the low-doc and non-conforming mortgage market between 2007 and 20011 and analyses the key themes over this period.

Report Highlights

The low-doc mortgage market grew significantly over the last few years. Of most importance is the fact that prime lenders now offer low-doc products. Prior to this, prime lenders steered away from this market because of its perceived risks. However, slower growth in the mortgage market forced these lenders to target other customer groups.

Another issue of concern in both the low-doc and non-conforming mortgage markets is the short loan-life. This report discusses four methods of improving customer retention rates.

Due to extensive primary and secondary research, Datamonitor was able to estimate market shares of the non-conforming specialist lenders in both 2005 and 2006. This is presented from two perspectives: in terms of overall non-conforming lending commitments; and in terms of the specialist lenders loan writing only.

Reasons to Purchase

• Quantify both the low-doc and non-conforming populations and lending commitments in each of these markets.
• Includes market shares of the non-conforming specialist lenders in both 2005 and 2006 and the proportion of their lending commitments in the market.
• In-depth analysis of competitors and market issues in both the low-doc and non-conforming mortgage markets.