Tuesdata: The home loan providers that spent big as we entered a cost of living crisis
Tuesdata: The home loan providers that spent big as we entered a cost of living crisis
The mortgage market is in the midst of a shake up
Welcome to the latest instalment of Tuesdata.
The thought of interest rates and home loans may make you shudder at the minute, but it’s a highly appropriate time to look providers that have spent big dollars recently to get in front of consumers who may now be economically challenged or nervous about the current economic climate.
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Australia is moving deeper into a cost of living crisis. Interest rates are rising and are predicted to keep increasing. The cost of necessities such as food and petrol are going up rapidly, and Australian property values are starting to sink in key markets.
Certain sectors are directly in the crossfire, like home loans. The sinking house values and rising interest rates have seen auction results plummet in the major markets, turning what was a seller’s market very quickly into a buyer’s market. But this has also led to a decreased amount of buyers around.
According to Domain Home Loans Mortgage broker Millind Garg, it will take about three to six months to get a clearer picture of the situation. “People just want to sit on the fence in anticipation and get some clarity on what’s actually going to happen with rates and property prices.”
Recently, the cash rate went from the historic low of 0.1 against record high house prices to now sit at 0.85. While that is still very low, the Reserve Bank of Australia has flagged continued increases. Search volumes on Domain are down as much as 45% for April year on year.
Today we will use Nielsen Ad Intel to find out who has spent the most in advertising over the last year (June 2021 to May 2022) across all media as the housing market continued its rise before beginning the decline.
We have also included the TV ad spot count from Canda for the listed brands home loan products only. This gives an indication of how much of the strategy used TV.
For the period in question, advertising spend sat at $86.5m in total for home loan brands. Below are the top five advertisers in the home loan category.