Australian Housing Dynamics and Affordability slide image

Australian Housing Dynamics and Affordability

AUSTRALIA HOME LOANS PORTFOLIO OVERVIEW Portfolio¹ Flow² Portfolio¹ FY17 FY18 FY19 FY18 FY19 FY17 FY18 FY19 Number of Home Loan accounts¹ 1,009k 1,011k 983k 170k³ 119k³ Average LVR at Origination 7,8,9 69% 67% 67% Total FUM1 $264b $272b $265b $57b $40b Average Dynamic LVR (excl offset) 8,9,10,11,12 55% 55% 57% Average Loan Size4 $262k $269k $270k $382k $378k Average Dynamic LVR (incl offset) 8,9,10,11,12 Market Share (MBS publication) 13 50% 50% 52% 15.7% 15.5% n/a % Owner Occupied 5 63% 65% 67% 70% 73% Market share (MADIS publication) n/a n/a 14.3% % Investor5 33% 32% 30% 29% 26% % Ahead of Repayments 14 71% 72% 76% % Equity Line of Credit 4% 3% 3% 1% 1% Offset Balances 15 $27b $28b $27b % Paying Variable Rate Loan6 83% 84% 84% 84% 78% % First Home Buyer 7% 7% 8% % Low Doc16 4% 4% 4% % Paying Fixed Rate Loan 17% 16% 16% 16% 22% Loss Rate 17 0.02% 0.02% 0.04% % Paying Interest Only 31% 22% 15% 13% 11% % Broker originated 51% 52% 52% 55% 53% % of Australia Geography Lending 18,19 % of Group Lending 18 64% 63% 61% 45% 45% 43% 1. Home Loans portfolio (includes Non Performing Loans, excludes Offset balances) 2. YTD unless noted 3. New accounts includes increases to existing accounts and split loans (fixed and variable components of the same loan) 4. Average loan size for Flow excludes increases to existing accounts (note the average loan size previously reported in 1H18 and prior included increases to existing accounts) 5. The current classification of Investor vs Owner Occupier is based on ANZ's product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer's obligation to advise ANZ of any change in circumstances. 6. Excludes Equity Manager 7. Originated in the respective year 8. Unweighted 9. Includes capitalised LMI premiums 10. Valuations updated to Aug-19 where available 11. Includes Non Performing Loans and excludes accounts with a security guarantee 12. Historical DLVR has been restated as a result of enhancements to methodology 13. APRA Monthly ADI Statistics to Aug-19 - Note APRA changed the underlying market share definition in Jul-19 and historical periods (FY17 & FY18) are not comparable to FY19 14. % of Owner Occupied and Investment Loans that have any amount ahead of repayments. Includes Offset balances. Excludes Equity Manager. Includes Non Performing Loans 15. Balances of Offset accounts connected to existing Instalment Loans 16. Low Doc is comprised of less than or equal to 60% LVR mortgages primarily for self-employed without scheduled PAYG income. However, it also has ~0.1% of less than or equal to 80% LVR mortgages, primarily booked pre-2008 17. Annualised write-off net of recoveries 18. Based on Gross Loans and Advances 19. Australia Geography includes Australia Division, Wealth Australia and Institutional Australia ANZ 85
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