Mortgages in Australia 2008

Introduction
The Australian mortgage market is facing a number of internal and external challenges. Record low housing affordability is pressuring mortgagors, and the global credit crisis has increased funding costs for lenders. This report puts the current situation in its historical perspective, describes current trends in the market, and analyzes potential future developments.

Scope
Includes a comprehensive overview of the Australian residential mortgage market.

Draws upon a large Datamonitor's consumer survey to gain insights into the current mindset of the Australian mortgagor.

Includes market overview, analysis of customers, product attributes, competitor breakdown and future developments.

Provides three scenario forecasts for lending commitments in Australia until 2012.

Report Highlights
The turbulence in international credit markets has led to increased funding costs for Australian lenders. This has caused several of the Australian banks to revise their estimates of profitability for the next year downwards, and to raise their rates.

A higher degree of leverage for mortgagors may be a cause for concern in the event of a market downturn. Rising interest rates combined with falling property prices would leave some mortgagors overcommitted, especially if the mortgage was taken out with the expectation of refinancing.

The internet has already altered the way that mortgages are researched, as it has become very common for prospective mortgagors to compare prices and features from different lenders online. Actually applying for a mortgage over the internet is as yet quite uncommon, as consumers often desire face-to-face contact for such important decisions.