Australian Mortgage Report 2012
A 'new normal'
Covers the challenges in the lending environment including funding, positive credit scoring, cross selling and securitisation.
The Australian mortgage marketplace now totals more than $1.2 trillion of lending to Australian households rivaling the $1.4 trillion superannuation market in both size and significance. However at less than 6% p.a. and the lowest level of lending growth in more than 20 years, price wars are likely to continue in the short term.
Costly funding and continued scrutiny around lending and regulatory standards will become the ‘new normal’ for the foreseeable future.
The backdrop of households preferring to deleverage and an aging population moving from having a mortgage to downsizing, is a challenging environment in which to achieve greater growth.
Big lenders are set to maintain between 80% and 90% share of the settlements as the differences in relative funding costs limit competition.
The recent uptick in mortgage settlements continuing into 2012 is contingent on consumers remaining confident in the economy, property prices holding up and interest rates remaining at current relatively low levels.
In this seventh annual Deloitte Australian Mortgage Report we consider these challenges and their opportunities covering funding, positive credit scoring, cross selling, securitisation, and proposals from Deloitte Access Economics’ on the economy and how to achieve the right balance between effective competition and stability in 2012 and beyond.
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