When looking for a mortgage, it is helpful to keep up to date with what is going on in the mortgage market. We have compiled a list of some recent trends in the Australian mortgage industry.

• The Australian mortgage market has slowed in 2005 due to the housing boom passing its peak. At the end of August 2005, the Australian bank housing loan portfolio was worth over A$680b.
• House prices have increased nationally however appreciation rates are expected to slow down in the near future.
• Consumers are moving away from investment financing, with owner-occupied financing making up a larger share of total loans.
• As mortgage products becoming increasingly complex, the need for expert advice and guidance is growing. The proportion of broker originated home loans is continuing to rise reaching over 35% of all new loans. This is up from 30% just 12 months ago.
• The broker channel is expected to continue growing strongly in line with other international markets such as the USA and UK where broker originated loans account for over 60% of all new loans.
• Brokers are also attaining a higher share of refinancing loans than other channels. This reiterates the growing preference of consumers to operate via a broker due to the expectation that brokers provide objective and independent advice.
• The amount of loans on the market classified as low doc (low documentation loans) is at an all time high reaching 10% of all new loans in mid 2005, up from less than 1% in June 2000. Intense competition in this segment has meant that spreads on low doc loans (compared to standard loans) are falling.