Bruce Speirs, Executive, Partner Connection, Bendigo and Adelaide Bank said “As part of our continued focus to build on the strength of our Partner Connection business, I am pleased to announce changes of responsibility within the Partner Connection Leadership group and consequently, the Third Party Banking business.

“Damian Percy will transition into the role of Head of Strategic Partnerships, working closely with our Third Party Banking, Leveraged and Portfolio Funding business to continue to build on our strong partnering culture and to broaden our existing partner relationships.  As a result, Darren Kasehagen (as Head of Distribution, Third Party Banking) and Amanda James (Head of Third Party Banking Support) will now take on responsibility for the Third Party Banking business.

“Having lead the Third Party Banking business for many years, Damian has developed a deep understanding of the mortgage industry and will continue to represent the bank in various industry forums, while also providing a perspective on the issues impacting the mortgage market to the Bendigo & Adelaide Bank group. In Darren and Amanda, I am confident that we have the right leadership and Partner experience to continue to build our Third Party Banking business into the future.”  Mr Speirs concluded.

Damian Percy, Head of Strategic Partnerships said: “It has been a great privilege to build and lead our Third Party businesses for so many years – it has long allowed me to indulge my enthusiasm for partnership and my strong belief in the benefits that home ownership brings to individuals, families, and the communities in which they live.

That said, the opportunity to assist in the creation of a strategic partnership model across a broader range of businesses across the Bank is an exciting one, particularly when combined with an extended role around mortgages thought-leadership for the BEN Group and ongoing engagement with the industry that is my great passion.”

Darren Kasehagen, Head of Distribution said “Adelaide Bank remains well positioned to help our partners navigate through the ever changing property market and home lending landscape.

“Over the last 12 months we have repositioned our lending strategy in response to newly imposed regulatory caps and used the opportunity to fine tune our lending platform.  A number of enhancements to our offering, which are currently underway, will make it easier for our partners and customers to do business with us.

“Our simple, easy to understand range of affordable home lending products, combined with an outstanding service offering, will continue to smooth the process as our partners guide customers through the home ownership journey”.

“Amanda and I look forward to continuing Adelaide Bank’s proud tradition of being the partner of choice for third party home lending solutions.”

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This was a decrease of 1.3 percentage points compared to the corresponding quarter in 2016. The number of first home buyers decreased in all states and territories over the March quarter 2017.

Damian Percy, General Manager Adelaide Bank said: “While the improvement in housing affordability for the March quarter is to be welcomed, we are still in the midst of a housing affordability crisis and need to treat it as such. Recent measures by governments to assist first home buyers are similarly welcomed, but the reality is that it will take years for these policy measures to wash through the system and translate into meaningful price action.”

“The number of first home buyers decreased to 20,677 over the March quarter – a drop of 11.2%. Anything short of a national objective of halting house price inflation in Australia’s major population centres is underestimating the profound impact having some of the world’s most expensive houses in one of the world’s least densely populated nations is doing to the economic and social well-being of the nation.”

“In conversations with younger people on a recent visit to Sydney, it was clear that although they had good jobs, frugal lifestyles and relatively modest aspirations they have simply given up on the prospect of owning their own property. They haven’t given up owning their ideal property- or one in their preferred neighbourhood – they have given up on owning anything. Ever.”

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to enabling home ownership is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Percy concluded.

Fast Facts

The average loan size to Australian first home buyers is now $372,620 – a decrease of 4.3 per cent over the March quarter but an increase of 2.3% compared to last year. Victoria tops the charts as the State with the largest number of first home buyers.

Median rents increase slightly

Nationally, the March quarter saw a slight decline in rental affordability. The proportion of family income required to meet median rents increased by 0.1 percentage points to 24.6 per cent.

Across the nation:

Victoria: Of the total number of Australian first home buyers that purchased during the March quarter, 6,037 were from Victoria. The number of loans to first home buyers in Victoria decreased by 14.7%. This represents a 2.6% increase compared to the March quarter 2016. In Victoria, first home buyers now make up 21.6% of the State’s owner-occupier market. Rental affordability declined for the quarter with an increase of 0.5% of income required to meet median rents.

NSW: The proportion of family income required to meet loan repayments is 5.7% higher than the nation’s average. New South Wales remains the least affordable state or territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the March quarter, 17.4% were from New South Wales. The number of loans to first home buyers decreased by 16.2% to 3,597. When compared to the March quarter of 2016, the number of first home buyers decreased by 5.2%. First home buyers now make up only 12.3% of the State’s owner-occupier market – the lowest level across the nation. Rental affordability declined for the quarter with an increase of 0.5% of income required to meet median rents.

Queensland: The proportion of income required to meet home loan repayments decreased to 26.7%, a 1.3 percentage point drop over the quarter. Of all Australian first home buyers over the quarter, 26.0% or 5,372 were from Queensland while the proportion of first home buyers in the State’s owner-occupier market was 23.9%. Rental affordability declined slightly for the quarter with an increase of 0.5% of income required to meet median rents.

South Australia: In the national breakdown, 5.8% of first home buyers were from South Australia while the proportion of first home buyers in the State’s owner-occupier market recorded an increase to 16.8%. Rental affordability improved by 0.2 percentage points.

Western Australia: Western Australia recorded a 6.5% decrease in the number of first home buyers over the quarter, a decrease of 1.8% compared to the March quarter of 2016. The proportion of first home buyers in the state’s owner-occupier market was 31.5%. WA’s proportion of first home buyers nationally in percentage terms of the owner-occupier market across Australia was 17.2%. Rental affordability in Western Australia improved during the March quarter with the proportion of family income required to meet the median rent decreasing to 18.6%, a drop of 0.5 percentage points over the quarter.

Tasmania: The number of first home buyers in Tasmania decreased by 7.5% for the March quarter or 11.1% compared to the same quarter of 2016. The average home loan size to first home buyers increased by 5.6% to $240,333. Rental affordability declined with an increase of 1.3% for the quarter or 0.8% year on year.

Australian Capital Territory: The Australian Capital Territory recorded an 18.2% decrease in the number of loans to first home buyers. When compared to the March quarter 2016, the figure decreased by 8.9%. First home buyers made up 17.8% of the Territory’s owner-occupier market with the average loan for first home buyers decreasing by 4.1% over the quarter to $305,900. Rental affordability declined for the quarter with an increase of 0.3% of income required to meet median rents. The National Capital remains the most affordable state or territory in which to buy a home or rent.

Northern Territory: The number of loans to first home buyers in the Northern Territory decreased by 15.8% which was a 11.3% rise compared to the March quarter of 2016. The proportion of first home buyers in the Territory’s owner-occupier market was 19.8%. The average loan size to first home buyers decreased by 5% to $311,067 for the quarter or 2.6% year on year. Rental affordability improved with a decrease of 0.8%.

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Compared to the corresponding quarter in 2015, the figure decreased by 1.9 percentage points. Damian Percy, General Manager Adelaide Bank said: “The good news is that there has been an increase nationally of 6.6 per cent in the number of first home buyers for the quarter and an increase of 0.5 per cent compared to the December 2015 quarter.

Compared to the corresponding quarter in 2015, the figure decreased by 1.9 percentage points. Damian Percy, General Manager Adelaide Bank said: “The good news is that there has been an increase nationally of 6.6 per cent in the number of first home buyers for the quarter and an increase of 0.5 per cent compared to the December 2015 quarter.

Damian Percy, General Manager Adelaide Bank said: “The good news is that there has been an increase nationally of 6.6 per cent in the number of first home buyers for the quarter and an increase of 0.5 per cent compared to the December 2015 quarter.“The number of Australian first home buyers increased to 23,273 comprising almost 14 per cent of the owner occupier market. Average loan sizes increased in NSW, Victoria, Western Australia and the Northern Territory.

“The number of Australian first home buyers increased to 23,273 comprising almost 14 per cent of the owner occupier market. Average loan sizes increased in NSW, Victoria, Western Australia and the Northern Territory.

“The bad news is that despite this increase in first home buyer numbers, it is still a figure well below the historical average of 18.5 per cent of the owner occupier market since the early 1990’s. Large land releases such as those recently announced in Victoria can be expected to improve opportunities to enter the market.“Recent public lamentations on the plight facing first home buyers are welcome but one can’t help but think that the traditional unwillingness to confront those voters enjoying structural advantages that continue to keep a fire under house prices will lead to more gnashing of teeth rather than the lowering of prices. If current trends continue, young people in Sydney and, to a lesser extent, Melbourne will be living fabulous Facebook lives – but enduring real lives with lousy housing options”.

“Recent public lamentations on the plight facing first home buyers are welcome but one can’t help but think that the traditional unwillingness to confront those voters enjoying structural advantages that continue to keep a fire under house prices will lead to more gnashing of teeth rather than the lowering of prices. If current trends continue, young people in Sydney and, to a lesser extent, Melbourne will be living fabulous Facebook lives – but enduring real lives with lousy housing options”.

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Percy concluded.

Fast Facts

The average loan size to Australian first home buyers increased by 1.3 per cent over the December quarter to $323, 633. This was a decrease of 1.5 per cent year on year.

Median rents increase slightly

Nationally, the December quarter saw a slight decline in rental affordability. The proportion of median family income required to meet median rents increased by 0.2 percentage points to 24.4 per cent.

Across the nation: Victoria tops again for First Home Buyers

Victoria: Of the total number of Australian first home buyers that purchased during the December quarter, 30.4% were from Victoria. The number of loans to first home buyers in Victoria increased by 9.5%. This represents a 2.1% decrease compared to the December quarter 2015. In Victoria, first home buyers now make up 15.2% of the State’s owner-occupier market. More than 7,000 Victorians bought a first home in the December quarter. Rental affordability declined for the quarter with an increase of 0.4% of income required to meet median rents.

NSW: The proportion of income required to meet loan repayments is 6.5 percentage points higher than the nation’s average. New South Wales remains the least affordable state or territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the December quarter, 18.4% were from New South Wales. The number of loans to first home buyers increased by 7.8%. When compared to the December quarter 2015, the number of first home buyers decreased by 5%. First home buyers make up only 8.2% of the State’s owner-occupier market – the lowest level across the nation. 4,276 first home buyers entered the market in NSW. Rental affordability declined for the quarter with an increase of 0.5% of income required to meet median rents.

Queensland: Of all Australian first home buyers over the quarter, 24.9% were from Queensland while the proportion of first home buyers in the State’s owner-occupier market was 17.4%. The average loan size to first home buyers decreased by 0.8% for the quarter, but recorded a slight increase of 0.1% compared to the December quarter 2015. Rental affordability improved for the quarter with a decrease of 0.2% of income required to meet median rents.

South Australia: In the national breakdown, 5.4% of first home buyers were from South Australia while the proportion of first home buyers of the State’s owner-occupier market recorded an increase to 10.9%. Rental affordability improved by 0.2 percentage points.

Western Australia: Western Australia recorded a 1.3% increase in the number of first home buyers over the quarter, however, this was a decrease of 11.3% compared to the December quarter of 2015. WA’s proportion of first home buyers in percentage terms of the owner-occupier market across Australia was 21%. Rental affordability was steady.

Tasmania: The number of first home buyers in Tasmania increased by 6.5% for the December quarter or 14.2% compared to the same quarter of 2015. The average home loan to first home buyers went down by 6.6% to $227,500. Rental affordability declined with an increase of 1.3% for the quarter or 0.7% year on year.

Australian Capital Territory: The Australian Capital Territory recorded a 12% increase in the number of loans to first home buyers. When compared to the December quarter 2015, the figure decreased by 3.7%. First home buyers made up 14.5% of the Territory’s owner-occupier market with the average loan for first home buyers decreasing by 1.4% over the quarter to $319,133. Rental affordability declined for the quarter with an increase of 0.3% of income required to meet median rents. The National Capital remains the most affordable state or territory in which to buy a home or rent.

Northern Territory: The number of loans to first home buyers in the Northern Territory increased by 4.8% which was a 29.9% rise compared to the December quarter of 2015. The proportion of first home buyers of the Territory’s owner-occupier market was 16.4%. The average loan size to first home buyers increased by 12.2% to $327,367 for the quarter or 3.1% year on year. Rental affordability improved with a decrease of 0.2%.

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Housing affordability on the improve across Australia.

The June quarter edition of the Adelaide Bank/Real Estate Institute of Australia Housing Affordability Report shows an improvement in housing affordability nationally with the proportion of median family income required to meet average loan repayments decreasing by 0.6 percentage points to 29.4 per cent. Compared to the corresponding quarter in 2015, the figure decreased by 0.9 percentage points.

• The national median weekly family income increased by 0.5 per cent to $1,659 during the June quarter. This represents a 2.3 per cent rise when compared to the same quarter in 2015.
• The average monthly loan repayment was $2,116 – a 1.3 per cent decrease over the quarter and a decline of 0.5 per cent when compared to the corresponding quarter in 2015.
• The average loan size increased marginally by 0.1%, to $369,390 or a 2.7% rise compared to the June quarter in 2015.

Damian Percy, General Manager, Adelaide Bank said: “Moderation in house price inflation and average borrowings nationally over the June Quarter has meant the proportion of weekly income needed to service a mortgage has fallen to 29.4 per cent. 30 per cent is the figure traditionally used as a measure of ‘housing stress’.

“This is welcome news, but of particular note is the continuing long term decline in the number of first home buyers. When you consider that modelling for adequacy of income in retirement typically assumes that people own their own home, this should be concerning to policymakers.

“While there are encouraging signs of a turnaround in some States, first home buyers now make up just 14.3% of the owner-occupier market, a disappointing figure and a long term trend.

“First home buyer numbers are on a glide-path to what is currently a two decade low. This trend will provide major challenges for future governments, ultimately impacting the number of people on public housing waiting lists and in supported housing. The time to fix government housing policy is now, not in ten, twenty or thirty years’ time.

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers.”

Fast Facts

• Victoria recorded the biggest annual increase in the number of loans to first home buyers across the nation at 19.3%.
• Western Australia has the highest proportion of first home buyers on the owner-occupier market nationally at 19.0%. The average loan to first home buyers went down 2.3% over the quarter and by 8.0% compared to the June quarter 2015.
• The ACT remains the most affordable state or territory in which to buy a home or rent, but recorded the only quarterly decline in housing affordability across the country. The proportion of income required to meet home loan repayments increased marginally by 0.1 percentage points, to 19.4% showing a slight decline of 0.1 percentage point when compared to the same time last year. The ACT was also the only jurisdiction to record a decline in rental affordability over the June quarter.
• South Australia had the second biggest annual increase in the average loan size across the country.
• Tasmania recorded the biggest annual increase in the number of loans to first home buyers across the nation. The number of first home buyers in Tasmania increased by 6.9% over the June quarter. This is also an increase of 24.3% compared to the same quarter of the previous year.
• Queensland recorded no change in housing affordability over the quarter.
• The NT had the biggest annual decrease in the average loan size across the country. The average loan size to first home buyers decreased by 4.0% over the quarter and by 9.0% when compared to the same time last year.
• NSW remains the most unaffordable state or territory in which to buy or rent.

Rental Affordability

• The Australian Capital Territory was the only jurisdiction to record a decline in rental affordability over the June quarter. At 17.8%, the proportion of family income required to meet the median rent increasing by 0.4 percentage points over the quarter.
• New South Wales recorded an improvement in rental affordability with the proportion of family income required to meet median rent payments falling 0.1 percentage point over the quarter, to 28.9%.
• Victoria improved over the quarter with the proportion of family income required to meet median rents going down by 0.2 percentage points, to 23.7%.
• Queensland improved over the quarter with the proportion of family income required to meet the median rent going down by 0.3 percentage points during the quarter to 23.6%.
• South Australia improved over the quarter with the proportion of family income required to meet rent payments decreasing by 0.9 percentage points over the quarter, to 22.0%.
• Western Australia improved with the proportion of family income required to meet the median rent decreasing by 0.5 percentage points over the quarter.
• Tasmania improved with the proportion of income to meet median rents sitting at 25.0% – a 0.9 percentage point decrease over the quarter.
• The Northern Territory recorded an improvement in rental affordability with the proportion of income required to meet the median rent decreasing by 1.1 percentage points to 25.1%.

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The report found that national median weekly family income increased by 0.5 per cent to $1,652 during the March quarter of 2015. This represents a 2.3 per cent rise when compared to the same quarter of 2015.

The average monthly loan repayment was $2,144 – a 7.0 per cent decrease over the quarter but an increase of 0.7 per cent when compared to the corresponding quarter of 2015.

Damian Percy, General Manager, Adelaide Bank said: “When compared to the previous quarter, all states and territories saw improvements in housing affordability with the exception of the Northern Territory, where the proportion of income required to meet loan repayments increased by 0.7 percentage points. The decrease in the national figure to 30 per cent is to be welcomed as this is now on the borderline of what has traditionally been viewed as the measure of ‘housing stress’. Victoria recorded the biggest annual increase across the nation in terms of the number of new loans.

“New South Wales recorded the biggest improvement in housing affordability with the proportion of income required to meet loan repayments decreasing by 4.0 percentage points, to 35.4 per cent, however, NSW still holds the dubious honour of remaining the least affordable state for homebuyers. Despite New South Wales recording the largest quarterly decrease in the average loan size to first home buyers, the proportion of income required to meet loan repayments in NSW is still 5.4 per cent above the national average.

“Nationally, the number of first home buyers has decreased by 16.0 per cent to 22,640. Year on year, this is a decrease of 2.4 per cent with first home buyers now making up 14.6 per cent of the owner-occupier market, the lowest since the June quarter of 2004. Western Australia has the highest proportion of first home buyers on the owner-occupier market nationally.

“Tasmania was notable in that the number of first home buyers increased by 6.6% over the March quarter – the only increase across the country. In further good news for Tasmanians, the First Home Owners Grant in that state which applies to the construction of new homes has recently been doubled to $20,000 until 30 June 2017, which should further stimulate housing construction. Tasmania and the Northern Territory are also notable in that the proportion of family income devoted to meeting average loan repayments is less than the proportion of family income devoted to meeting median rents.

“Over the quarter, the average loan size to first home buyers decreased in every state and territory except for Tasmania where an 8.1% increase was recorded.

Rental Affordability

“Rental affordability declined nationally in the March quarter with the proportion of income required to meet rent payments for three-bedroom houses rising by 0.5 percentage points to 25.1%. This figure remained unchanged compared to the same quarter of 2015.

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers.”

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Housing affordability on the decline.

The December quarter edition of the Adelaide Bank/ Real Estate Institute of Australia Housing Affordability Report contains disappointing news for many seeking entry to the Australian residential property market. This edition records a drop in housing affordability nationally and the proportion of family income required to meet loan repayments has increased by 1.1 percentage points to 31.5%.

Damian Percy, General Manager, Adelaide Bank said: “Encouraging home ownership should be a priority for any home lender and Adelaide Bank is committed to working with the REIA to contribute to the development of public policy that can help ease the supply side problems currently putting pressure on housing affordability.

“Construction of new residential dwellings may be at the highest levels for some time, which is encouraging and certainly helping to get our economy moving again, but unless a more determined effort is made on the part of the States and Commonwealth to work more actively with local government, developers and financiers – as the economy improves and population continues to grow at current rates, there will continue to be supply-side issues that will ultimately mean further upward pressure on house prices.

“It’s no secret that land supply is still a major problem and biases exist in the system often preventing the building of new homes in the places where most people want to live.  Looking to the future and given the usual pace of reform, housing affordability is a problem that needs to be addressed to counter negative longer term outcomes in other areas such as retirement savings adequacy.

“Quarterly studies such as the ASFA Retirement Standard assume that people own their own homes when calculating the amount needed each week for a comfortable life in retirement. While the December quarter finds that rental affordability has improved to levels not seen since 2009, levels of home ownership have not.

“Land may be short in Melbourne and Sydney, but we should be thinking more creatively. For example, opportunities exist for airspace to be better utilised. Governments already own the land and could work with the private sector around areas such as railway stations to both improve car parking and provide construction rights with a caveat that a percentage of dwellings be set aside for essential services workers.

“Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can and to provide great service through Australia’s growing network of mortgage brokers.

“The rising chorus of voices and release of studies such as the Grattan Institute’s book City Limits this week will ensure that the affordability debate is one that exercises the minds of our policymakers for some time to come, but as an issue, we need less talk and more action at all levels of government.

“Adding to the debate calling for improvements to policy needed to increase housing affordability will be the report into Housing Affordability by the Senate Economics References Committee, delayed for release, but due to be tabled next month on April 14 “, Mr Percy concluded.

Fast Facts from the latest Adelaide Bank/REIA Housing Affordability Report

Australian Capital Territory

The ACT remains the most affordable state or territory in which to buy a home or rent

Northern Territory

The NT has the largest proportion of first home buyers in the nation’s owner occupier market.

Tasmania

Tasmania continues to have the smallest average loan size, however the state’s quarterly increase was the nation’s largest.

NSW

NSW is the only state or territory with the average loan size above the $400,000 mark

Victoria

Of all Australian first home buyers, 27.7% are from Victoria.

Queensland

In Queensland, 28.4% of the median family income was required to meet average monthly loan repayments in the December quarter of 2014.

South Australia

In SA, the proportion of the median family income required to meet median rent was 22.6% in the last quarter of 2014.

Western Australia

During the quarter, the average monthly loan repayment in WA was $2,158.

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Housing affordability on the rise.

The March Quarter edition of the Adelaide Bank/REIA Housing Affordability Report shows improvements in housing affordability in all states and territories when compared to the same quarter in 2013.

Commenting on the report’s findings, Damian Percy, General Manager of Adelaide Bank said: “The proportion of family income needed to meet home loan repayments has fallen from 30.8% to 30.6%. On the rental side, the proportion of family income needed to meet rent payments has increased slightly from 25.4% in the December quarter to 25.7% .

“The latest findings represent a 5% gap between rental payments and home loan repayments. We welcome an improvement in this quarter, but what of the future? Are we making it easy for people to ‘right-size’ their homes and are State planning policies and taxes such as stamp duty limiting their ability or inclination to do so?

“I think it’s important to keep the housing affordability debate rolling. How can we make it easier for people to more readily upsize and downsize without having to agonise about and plan for such a move over years instead of months?

“Encouraging home ownership should be a key priority for any home lender and Adelaide Bank is committed to working with REIA to contribute to the development of sound public policy that will help ease the supply side problems that put upward pressure on housing.

“Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers” concluded Mr Percy.

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Housing repayments back over 30% of median weekly income.

The latest edition of the Adelaide Bank/REIA Housing Affordability Report  shows that the proportion of median weekly family income required to meet home loan repayments for the December 2013 Quarter is back over thirty per cent.

Looking into the future, the apparent dearth of first time buyer activity should be a concern for policy makers, governments and the community generally.

Damian Percy, General Manager of Adelaide Bank said:  “We know that owner-occupier first home buyers are staying away from the property market in droves and have been for some time.  In spite of a benign interest rate environment, on current statistics, a historically low number of Australians do not seem to feel they are in a position to step onto the first rung of the property ladder. With a view to the future, I can’t see this playing out well.

“If you look at pretty well all the budget-based estimates on people’s retirement income needs prepared by organisations like ASFA, the modelling assumes home ownership. We need to better measure and understand what could happen if the current figures reflect reality and plan accordingly.

“Unless we can reverse this trend, the most obvious outcome will be that there will be lot of people renting right up until they are of pensionable age.   The rents they may be able to afford on the aged pension in the private market at that point in time – in 40 to 50 years – are likely to be in areas well away from health-care and the other services they will require as ageing Australians.

“The decline in owner-occupied first home buyer activity does appear to have been offset to an extent by the latest RBA investor housing loan aggregates, which grew by 0.8% for the month of January and by 7.4% for the 12 months to January, so there could also be other behavioural forces at work here.

“Encouraging home ownership should be a key priority for any home lender and Adelaide Bank is committed to working with the Real Estate Institute of Australia to contribute to the development of sound public policy that, if implemented, will help ease pressure on demand for affordable housing in many areas.

“Adelaide Bank’s contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers”, Mr Percy concluded.

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Housing affordability on the rise.

The Adelaide Bank/Real Estate Institute of Australia Housing Affordability Report for the September quarter 2013 recorded an improvement in housing affordability with the proportion of income required to meet loan repayments decreasing 1.2 percentage points to 29.8%.

Compared to the same quarter of the previous year, the figure fell 3.5 percentage points. All states and territories recorded improvements over the quarter with the largest improvement in affordability in Tasmania, where the proportion of income required to meet loan repayments dropped by 1.6 percentage points to 24.6%.

Damian Percy, General Manager of Adelaide Bank said: “The continued improvement in housing affordability is a welcome result for aspiring home owners. Low interest rates and modest rises in family incomes have combined with relatively stable average loan sizes in many parts of Australia to maintain the trend of the last three years”.

“Despite some of the headlines we see about frenzied auction bidding in the inner cities, for those prepared to look carefully and live in the middle and outer suburbs, there are still plenty of housing opportunities for people.

“This is particularly the case in the capital city apartment markets and for three bedroom houses in cities such as Brisbane, Adelaide, Canberra, Perth and Melbourne.

“Less pleasing and of genuine concern is the very low level of first home buyer activity over the most recent quarter. First home buyers remain a strong indicator of the underlying health of the Australian housing market . Their absence over recent months suggests that although affordability is improving, it needs to improve further.

“Improving housing affordability must remain the focus of both governments and industry participants. At Adelaide Bank, we understand that the best way a bank can contribute to improving housing affordability is to keep the cost of lending as low as possible.

“Adelaide Bank also believes in the value of good advice, which is why we partner with Australia’s growing network of professional mortgage brokers to offer great value home loans that can assist people into housing as cheaply as we can – and with as little stress as possible”, Mr Percy concluded.

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Mr Percy said, “I am very pleased to be able to announce that Fons Caminiti is the new leader in the position of Senior Manager, Broker Distribution.  This new role is a key part of the restructuring and repositioning of our broker business interface and I am confident Fons will utilise his significant experience and unparalleled enthusiasm to great effect.

“Adelaide Bank has been making some significant changes to the way the business assists our brokers and their customers as part of a broader push to rejuvenate the brand in what is a highly competitive market.

“Our recent rate reductions are also part of some exciting changes we’re implementing to create a better environment and a more compelling case for our broker partners to do business with us.

“We’ll remain a true ‘broker only’ bank and we’ll continue to improve our service and processes and maintain our market leading turnaround times. Great turnaround times are a key feature of our value proposition and greatly appreciated by busy brokers, particularly in hot capital city property markets.

Fons Caminiti has been an employee with Adelaide Bank for over thirteen years and has attained extensive hands-on experience and knowledge within residential lending divisions.  Mr Caminiti has spent three years as a Business Development Manager within the broker channel in South Australia and for the last seven years been State Manager for Mortgage Management within Victoria, South Australia and New South Wales.

Mr Caminiti said “I look forward to leading the Adelaide Bank Broker Distribution Division and relish taking on the challenges and opportunities that lay ahead for our business. It’s a very exciting time to be involved with the Adelaide Bank Broker business, particularly as we’re investing heavily to enhance our broker offering.

“It’s a source of great pride that I’m working for a bank so committed to the broker market and to putting brokers first in everything we do.

“I will continue to build on the work that’s already begun in reinvigorating and enhancing our value proposition for the broker channel. I have a national team of committed industry professionals who will continue to focus on brokers and our business partner’s needs”, Mr Caminiti concluded.

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