IntroductionThe Australian mortgage lending environment was very different in 2005 to that of previous years, primarily because property prices growth has slowed since 2003.
This report looks at the causes and consequences of the slow-down and what is expected in the future.
It also discusses the growing importance and popularity of niche mortgage products in the market.ScopeThis report considers the growth of the market, analyzing growth patterns over the last five yearsThis report discusses the performance of various market sectors such as low-documentation, non-conforming, investment and reverse mortgagesThis report analyses strategies employed by the most successful and innovative providers in the Australian marketThis report forecasts the market's performance to 2010HighlightsFavorable macroeconomic conditions have been the primary driver of the mortgage market in recent years as these conditions influence both consumers' ability and willingness to borrow.
The growth of the market is a reflection of sustained low interest rates, low unemployment levels and strong gross domestic product growth.The Australian financial services market has opened up significantly in recent years.
However, it remains one the most heavily consolidated markets in the Asia-Pacific region with the 'big five' expanding their mortgage market share to 83.8% of total lending.
This displays the strengthening grasp of domestic banks even with international pressures.While property prices are stabilizing and even falling, property in metropolitan areas such as Sydney, remains too expensive for consumers entering the property market for the first time.
Consequently, many providers are developing products specifically for this type of borrower.Reasons to PurchaseObtain Datamonitor's forecasts of lending commitments for the next five yearsGain insight into successful strategies employed by mortgage providersLearn about the increasing prevalence of niche mortgage markets such as reverse mortgages, low-documentation and non-conforming