Australian Franchise News – 22-12-09
The CEO of Australia’s largest independently-owned mortgage broker, Mortgage Choice, Michael Russell welcomes and supports findings from the annual Deloitte Australian Mortgage Report: 2010, which was released yesterday.
Key conclusions within the report for 2010 are:
· Mortgage lending will grow by up to 10%; with levels around the 7.5% mark most likely.
· Continued thawing of the RMBS market means non-bank and other smaller lenders will re-emerge while the Big Four relinquish their stranglehold on the industry.
· Improved mortgage market competition, especially in the second half of the year.
· Lenders will seek to position themselves for the opportunities ahead, introducing greater innovation around product design, customer service, delivery channels and operating efficiency.
The report’s author is respected 20-year mortgage industry professional James Hickey, a Deloitte Actuaries and Consultants partner.
Mr Russell said, “Deloitte concludes that 2010 will be a positive period for the mortgage market. Based on the sentiments of our franchisees and positive market factors such as the improving jobs market and healthy population growth, I strongly agree.”
“We continue to hear ‘doom and gloom’ statements about next year but they are largely unsubstantiated. I disagree with predictions that housing finance demand will fall significantly in 2010 as reported last week. Instead, I believe we will see continued healthy demand for home loans and a welcome evolution of the lending market, especially when it comes to mortgages.
“The re-emergence of smaller, foreign and non bank lenders along with the long-awaited rebirth in securitisation will see a relaxing of the pressure Australia’s housing finance industry has felt over the past two years.
“Mortgage Choice is confident to stand by our forecast of a strong growth in home loan settlements for FY2010. Lower than expected unemployment levels along with continued housing undersupply and high immigration underpin our confidence.
“An extensive and competitive lender market is a necessity when providing a ‘fair go’ to consumers looking for a mortgage. Healthy competition encourages lenders to stay on their toes in terms of product innovation, quality and price; this is of vital importance to the health of the market and to the health of consumer choice.
“A competitive equilibrium is absolutely essential, not only for today’s property buyers but for future generations of property buyers.”
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