Deloitte’s third annual Australian mortgage report – Navigating the Rapids - notes the Australian residential mortgage sector continues to experience solid lending growth, with settlements growing 9% p.a. This is in a year where global credit markets caused considerable impact on the cost and availability of funds around the world.

Deloitte financial services partner James Hickey, who co-ordinated the contributions to the report, said that growth in Australia’s mortgage market is reasonably solid.

“Given the context of the global issues this year’s rolling growth figure of 9% p.a. shows considerable resilience.

“Indeed, in June 2007 lending across the country showed settlement volumes of $26 billion, the highest yet recorded in Australia.

The Deloitte Australian Mortgage Report 2007 points to key pressure points in the industry that represent both opportunities and threats. 

“For some in the sector, the year ahead will be one of ‘Navigating the Rapids,’ ” said Hickey.

“While consumers and the underlying mortgage market in Australia should not experience any material delinquency fall out as in the US, for some institutions the fall out will be one of funding availability and pricing,” he said.

The report carries a six page roundtable discussion chaired by Deloitte Securitisation lead partner Graham Mott. The discussion brought together the large specialist lenders in Australia to discuss the US sub prime market and what it means to them.

The participants agreed that the credit story is positive for Australia – but the key question is liquidity.

For the full media release please view the attachment below.