Mortgage lending is expected to increase by 20 per cent in 2011 as investors start returning to the market.
According to QBE LMI’s latest Mortgage Opinion Survey, 44 per cent of respondents expect the volume of mortgage lending to increase by 20 per cent during 2011, while 8 per cent expect an increase over 20 per cent.
QBE LMI chief executive officer Ian Graham said this expected increase in mortgage lending is likely to be supported by investors returning to the housing market this year.
“However, it is likely that anticipated lower housing price growth will mean that the rate of increase in mortgage lending will be slower in the short term, as indicated by 21 per cent of respondents expecting a decrease of 10 per cent in mortgage lending during 2011 and 23 per cent expecting no change,” Mr Graham said.
If mortgage lending was to increase, it seems brokers would be the biggest beneficiaries, with the third party channel rated the top source for knowledge and information on residential loans.
“Brokers play a pivotal role in the mortgage market. Borrowers are relying on mortgage brokers to guide them through the mortgage application process and assist them in finding an appropriate home loan to meet their needs” Mr Graham said.
The survey takes into account the opinion of more than 1000 professionals in the mortgage industry including banks, non-banks, brokers and mortgage managers.