Banks must do more to push home loans

Wednesday 28 March 2012

Article by Mozo

Despite strong employment figures, Aussies are finding it increasingly difficult to secure home loans and the country's banks need to do more to help people on to the property ladder.

Recent statistics released by Fitch showed the amount of Aussies who are failing to meet mortgage repayments is growing, even though the Reserve Bank of Australia sanctioned two separate cuts to interest rates towards the end of 2011.

According to the new JP Morgan/Fujitsu Australian Mortgage Industry Report, the nation's property industry has undoubtedly become more subdued in recent years, as many first-time buyers have been too scared to commit to a home loan.

Such is the scale of the downturn, many mortgage holders have been forced into negative equity, as the average value of a home has tumbled.

Clearly, Australian banks need to come up with some attractive deals if they are to experience the levels of growth seen in previous decades, although co-author of the report Martin North thinks this may take quite a long time.

"I do not expect to see a return to the buoyant times of the mid-2000's in the years ahead," he remarked.

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