Market Report - Mortgages in Australia: New research report available at Fast Market Research

April 29, 2011 - PRLog -- Introduction

This report analyzes the Australian mortgage market, with a focus on key issues for mortgage providers. These include higher funding costs, a changing regulatory environment, and challenges to public perception.

Features and benefits

* The report uses statistical data as well as interviews with bank executives.
* Provides discussion and analysis of several key issues facing Australian mortgage lenders.
* Analyzes changes in the competitive environment for mortgages.
* Discusses changing consumer preferences for mortgages.
* Includes market share data of the major competitors.

Highlights

The regulatory changes will have profound effects on the mortgage broker channel. Because of economies of scale and the advantage of being able to more closely work with major lenders, there has been a trend of consolidation of mortgage brokers and aggregators over the last several years.
There are several indications that fee income from mortgages will come under even further pressure; housing affordability is at an all-time low, the online channel has the potential to provide easier price-comparison and switching, and the number of new lending commitments is forecasted to be relatively weak.
The difficulty of sourcing funds at a competitive rate has restricted the near-term ability for new entrants in the Australian mortgage market, as well as leaving smaller lenders hamstrung. In the short term, wholesale funding is expected to continue being tight according to industry analysts.

Your key questions answered

* How has the mortgage market changed over the last year?
* How have market shares and competitor positioning changed over the last year?
* What developments are forecasted in the mortgage market and how can they be anticipated?
* How can mortgage providers more effectively market their product?
* How is the aftermath of the global financial crisis affecting the Australian mortgage market?


For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/149203_market_report_mortgages...


Partial Table of Contents:

Executive Summary
Funding costs, regulations, and brand image are key issues for providers
Funding costs have increased and become less predictable
There are upcoming changes to the regulations regarding mortgages
The public perception of banks poses a challenge
The mortgage market in 2010 has been uncertain
Mortgages have grown smoothly over the last decade
Lending commitments have faltered in 2010 for several reasons
The composition of lending commitments has changed
The major banks continue jockeying for position
CBA and Westpac have come to dominate the market
Some financial institutions have grown their loan portfolios in 2010 despite a lackluster year
There are few substantial threats to the current bank dominance
OVERVIEW
Catalyst
Summary
FUNDING COSTS, REGULATIONS, AND BRAND IMAGE ARE KEY ISSUES FOR PROVIDERS
Regulatory changes are a key issue for mortgage providers
There have been recent changes to the regulations regarding mortgages
Regulatory changes impose compliance costs and can change the competitive landscape
Regulatory changes will benefit larger institutions
Funding costs have increased and become less predictable
Funding costs have increased as wholesale funding has become more expensive
Banks have become less reliant on short-term debt funding
Bank funding costs no longer follow the cash rate as closely
The public perception of banks poses a challenge
Rate rises above the RBA cash rate have caused a community backlash
Banks should strive to handle their public relations better
The global financial crisis has raised discussion regarding the role of the financial system
Mortgage fees may come under further pressure
THE MORTGAGE MARKET IN 2010 HAS BEEN UNCERTAIN
Mortgages have grown smoothly over the last decade, but several key factors have changed
Over the last five years outstanding mortgages have grown at a steady pace
Business lending has been much more affected by the crisis than residential mortgages
The proportion of mortgages held by investors has returned to around 30%
Banks' domination of credit aggregates has been hastened by the financial crisis
Securitization has been stagnant despite government support
Lending commitments have faltered in 2010 for several reasons
Total bank lending has slumped since 2008
Mortgage lending commitments have slowed down in 2010 after a surprisingly active 2009
The number of mortgage lending commitments has dropped
Affordability remains a key issue for consumers
The composition of lending commitments has changed
The surge of first-home buyers has ebbed away since its peak in 2009
Investor activity has been muted in 2010
Fixed rate loans remain unpopular due to a complex set of circumstances
Refinancing activity has rebounded somewhat in 2010
THE MAJOR BANKS CONTINUE JOCKEYING FOR POSITION
The Australian mortgage market effectively now has three tiers of competitors
CBA and Westpac have come to dominate the market
ANZ and NAB are struggling to catch up, but lack acquisitive targets
All other lenders constitute a small fraction of the market
Some financial institutions have grown their loan portfolios in 2010, despite a lackluster year
Overall mortgages are forecasted to grow by 7% in 2010

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=1492...

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.