Introduction
The non-conforming mortgage market in Australia remains small. However, Datamonitor's opinion is that the market has considerable growth potential if mainstream lenders recognize the opportunities in the market and existing players continue to grow their market presence. How can opportunities in the non-conforming market be exploited? How large is the market and by how much can the market grow?
Scope
Covers non-conforming mortgage lending in Australia with comparison to the non-conforming mortgage market in the UK
Includes an estimate of the size of the non-conforming mortgage market and a forecast of lending commitments to 2008
Based on in-depth interviews with executives working within the non-conforming mortgage market
Highlights
The roots of non-conforming lending in Australia can be found among solicitors, accountants and property companies. These players were the first to lend to individuals in the non-conforming population doing so in a largely unregulated manner and in modest volumes.
It is estimated that around eight per cent of the 13 million credit eligible Australians have a default listing against their name. Assuming this estimate is correct around one million Australians have a default listed in their credit file.
Non-conforming lenders interviewed for this briefing stated that between six and 25 per cent of loan applications are rejected by mainstream lenders and between 25 and 35 per cent of these applications are then underwritten by lenders in the non-conforming market.
Reasons to Purchase
Quantify the non-conforming population and lending commitments to individuals in the non-conforming population
Examine the potential for competitive entry into the non-conforming market by players in the mainstream market and parties from overseas
Benchmark non-conforming mortgage lenders
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