Market/Finance News Blog: Development on horizon for mortgage industry

By the resi financial blog team, 03 March 2014

Development on horizon for mortgage industry

The latest Deloitte release has highlighted the increasing strength of Australia's $1.3 trillion mortgage market, which is set to undergo a number of changes through digital and data revolution. This could be interesting for anyone considering taking out a home loan in the near future, regardless of whether you're looking into investment loans or owner occupation mortgages

After surveying a number of industry experts, the Deloitte report has found that settlement growth and competition are expected to increase. This has already begun across the nation, with 2013 seeing settlement growth of more than 20 per cent driving a record number of housing commitments across Australia. 

Deloitte Banking Partner James Hickey said that settlements on a monthly basis during 2013 rose higher than $28 million. This is significantly higher than the settlements seen during the onset of the global financial crisis - which struggled to reach $20 million - and highlights the overall growth and recovery of the financial market across the nation. 

"Confidence among borrowers is high. Investors have made a comeback and funding pressures are easing, promising a vibrant and competitive mortgage market this year and through to 2017," said Mr Hickey in a March 3 statement. 

"However, most of the growth in settlement volumes through 2013 was due to existing owner-occupiers upgrading and investors returning rather than first home buyers entering." 

Furthermore, the emphasis on technology implementation for home loan services and customer interaction has also been growing, with Deloitte Digital Partner Katherine Milesi stating that as more people begin to adopt mobile devices, it will become important to assist consumers through these mediums. 

"The challenge also is to bring the technology pieces of the puzzle together in a way that makes customers feel like they're interacting with the same brand, and getting support across all touch points and through all channels," said Ms Milesi in a March 3 statement.

Categories: Home Loans, Property Investment