First loan mortgage second time

DUBLIN, Ireland -- Increase Driven By Stamp Duty Concessions, Slowing Property Price Increases And Consequently Relaxed Affordability Constraints

Mortgage Products for Australian First Time Buyers 2005 is our latest report on the Australian mortgage market. It examines the marginalization of first time buyers, what lenders are doing to target first time buyers and what more can be done. In doing the latter the report considers strategies from overseas and presents their applicability to the Australian market.

Research and Markets (http://www.researchandmarkets.com/reports/c12824) has announced the addition of Mortgage Products for Australian First Time Buyers 2005 to their offering.

The scope of this report is as follows:

- Covers products for first time buyers in Australia with comparison to products in the UK

- Includes an estimate of lending commitments to first time buyers to 2008

Based on in-depth interviews with mortgage executives

The highlights of this report are as follows:

In the second half of 2004 first time buyers share of the mortgage market increased driven by stamp duty concessions, slowing property price increases and consequently relaxed affordability constraints. In October 2004, the latest month for which data is available, first time buyers accounted for 16.0 per cent of loans advanced.

Slowing property prices will inevitably bring first time buyers back into the property market as affordability constraints relax. This is not to say, however, that lenders cannot play a role in facilitating, and consequently speeding, their return.

We believe that providers of shared equity products will have to work hard to build consumer confidence in the notion of sharing equity. Equity sharing is a new concept in Australia and many consumers will be uncomfortable with the notion of handing the lender up to 50 per cent of their equity gain.

Reasons to Purchase this report:

Examine the current provision for first time buyers in the Australian mortgage market

Learn from innovators in the first time buyer segment

Gain forecasts of lending commitments to first time buyers to 2008

The contents of this report are as follows:

INTRODUCTION 6

Scope 6

Who is the target reader? 6

How to use this report 7

BACKGROUND 8

The buoyancy of the property market 8

Australian property prices have rocketed 8

The strength of the investment property market has been a driver of the market as a whole 9

The marginalization of first time buyers 11

First time buyers accounted for less than 15 per cent of owner occupied properties purchased in 2003 11

Government aid for first time buyers 22

The First Home Owner Grant: means tests should be introduced 23

Stamp duty concessions have been introduced to aid first time buyers 23

A problem to be solved by various stakeholders 25

PRODUCTS FOR FIRST TIME BUYERS 27

Products based on family support 27

St George Family Pledge product 27

Commonwealth Bank Family Equity Loan 28

HomeStart Family Assist 29

These products have received a mixed reception 29

Examples from the UK 30

Shared equity products 34

The Wizard Head Start Shared Equity Loan 34

Examples from the UK 36

Other products appealing to first time buyers 41

Preferential rate loans 41

100 per cent loans 42

Directed savings accounts 44

THE FUTURE DECODED 45

Forecasting lending commitments to first time buyers 45

Lending commitments to first time buyers will amount to AUS$25.7 billion in 2008 46

Catering for first time buyers 48

APPENDIX 50

Definitions 50

Research methodology 50

Future readings 51

Relevant links 52

Datamonitor's custom research capabilities 52

SPP writing team 54

How to contact experts in your industry 54

For more information visit http://www.researchandmarkets.com/reports/c12824