Over the month of October 2013, over 300 mortgage brokers and other people from the home loan industry were surveyed by Genworth, a leading financial security organisation. They provide insurance to lenders—this means that their profit margin depends on the accuracy of their data and judgements.
Respondents were from Perth and across Australia, providing a good cross-section of the national market. Participants were asked what challenges the industry had faced in the last 5 years were the most important and where they see the industry going during the next 5 years. They were given multiple choices and allowed to select as many as they wanted.
By the Numbers: the Last 5 Years
Results were divided into the following categories: lenders, brokers, minor banks, major banks, non-banks, mutuals and total. The total numbers represent the same percentage as lenders, so we will use totals only for this piece.
Over the last five years, the impacts of regulation were cited by 56%, while weakness in Australia’s economy was cited by 50%. 35% cited housing affordability issues, while 34% cited the fluctuating property market and 33% cited a slow demand for credit.
The Next 5 Years: What the Numbers Say
The top three concerns were the economy, regulation and housing affordability. 43% felt that the economy is a concern while 37% felt that regulation is a concern. 37% felt that housing affordability is a concern, while 33% felt slow credit demand could be a problem. 24% mentioned “threats from new entrants.”
Generational change and ageing were also surveyed, with the data broken into lenders vs brokers. 65% of lenders and 52% of brokers answered that the increase in aged people and lifespan were important factors. 15% of lenders and 22% of brokers felt that people wanting to live in closer proximity to the inner city would be a factor.
What this Means to You
The market is becoming competitive; it is more important than ever to go through a qualified, trustworthy mortgage broker for any home loan, especially in Perth. At Purely Finance, we have access to as many as 1,000 products from 20 different lenders.
Call (08) 9472 9766 to learn more.