Non-conforming loans take off in Oz
Monday 29 November 2004
Lending commitments in the non-conforming mortgage market in Australia grew 500%, from A$1.4 billion in 1999 to A$8.4 billion in 2003, researcher Datamonitor says.
By The LandlordWhile it only accounts for 4.2% of total lending commitments, Datamonitor predicts a bright future for non-conforming mortgage lending in Australia.
"The market is destined to expand as existing lenders boost awareness of their product and brand, broker understanding of non-conforming mortgage lending continues to grow and entrants from the mainstream mortgage market acquire a presence in the market."
By 2008 lending commitments in the non-conforming mortgage market will amount to A$20.4 billion, equivalent almost 9% of total lending commitments.
Datamonitor estimates that the Australian non-conforming population included 2 million individuals in 2003, accounting for just over 10% of the country's population.
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