The latest Deloitte Australian Mortgage Report has shown outstanding mortgage debt in Australia has continued to grow despite the current global economic downturn.
"The total outstanding mortgage [debt] in the marketplace is close to nudging $1 trillion ... and that is growing at around 10 per cent per annum," Deloitte Actuaries and Consultants partner James Hickey said.
"That has probably come down from a figure of 12 to 13 per cent 12 months ago ... but there is still a rate of growth in outstanding mortgages in the marketplace," he said.
However, the study showed the rate of new loans being taken up had fallen by more than 20 per cent when compared to last year; dropping from around $25 billion in September 2007 to just under $18 billion in September 2008.
On another positive note, the amount of arrears and defaults on these loans has been well contained up to now. However, changing economic conditions may still have influence in this area.
"If unemployment is controlled then arrears will be contained," Deloitte Australia head of securitisation Graham Mott said.
The recent fiscal stimulus implemented by the Government is also a plus for the sector, according to Hickey.
"The tax cuts that are already in the pipeline to come through over the next four years will give quite a substantial fiscal stimulus," he said.
Hickey also cited the new stimulus package of $10 billion and the lower interest rates of 4.25 per cent as other proactive moves that would be positive for the industry.
Slowing economic growth and the falling Australian dollar could still have a negative impact on the sector.
