Abstract
Overview
Introduction
The Australian mortgage market is facing a number of internal and external
challenges. Record low housing affordability is pressuring mortgagors, and the
global credit crisis has increased funding costs for lenders. This report puts
the current situation in its historical perspective, describes current trends
in the market, and analyzes potential future developments.
Scope
- Includes a comprehensive overview of the Australian residential mortgage
market.
- Draws upon a large Datamonitor' s consumer survey to gain insights into the
current mindset of the Australian mortgagor.
- Includes market overview, analysis of customers, product attributes,
competitor breakdown and future developments.
- Provides three scenario forecasts for lending commitments in Australia
until 2012.
Report Highlights
The turbulence in international credit markets has led to increased funding
costs for Australian lenders. This has caused several of the Australian banks
to revise their estimates of profitability for the next year downwards, and to
raise their rates.
A higher degree of leverage for mortgagors may be a cause for concern in the
event of a market downturn. Rising interest rates combined with falling
property prices would leave some mortgagors overcommitted, especially if the
mortgage was taken out with the expectation of refinancing.
The internet has already altered the way that mortgages are researched, as it
has become very common for prospective mortgagors to compare prices and
features from different lenders online. Actually applying for a mortgage over
the internet is as yet quite uncommon, as consumers often desire face-to-face
contact for such important decisions.
Reasons to Purchase
- Plan your future strategy with confidence using Datamonitor' s
scenario-based forecasts of Australian lending commitments until 2012.
- Understand the challenges the mortgage industry is facing, as well as the
opportunities.
- In-depth analysis of how Australian providers approach different issues,
allowing you to reassess your strategy.
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