Non-bank lender Homeloans has revealed its diversification plans for the coming 12 months.
In a note to investors, Homeloans chairman Timothy Holmes said the lender is actively assessing growth opportunities in a range of complementary financial and property service areas, in order to diversify its revenue base and provide additional volume growth opportunities.
“The objective of this growth and diversification strategy is to maintain Homeloans’ profitability in the face of ongoing competition in the mortgage market,” Mr Holmes said.
“We have a clear strategy to grow and diversify the business,” he said.
“This potentially includes further enhancing of product and service offerings across Homeloans’ third-party broker partners and direct retail networks, as well as pursuing the expansion of our broker and direct retail distribution footprint.”
Mr Holmes’ comments come after Homeloans general manager of sales Ray Hair told Mortgage Business that the group’s diversification strategy will not be hindered by its brand.
Mr Hair said every player in the market is looking at integration or diversification right now.
“We are certainly not alone in that space,” he said.
“Homeloans, as a brand, it is pretty straightforward what we sell,” he said.
“That is the power of our brand. I don’t think it limits us from doing more, but that is clearly our focus.”
Over the next 12 months, the company expects general market conditions to continue in line with the levels experienced in the second half of the year.
“The movement in the cash rate over the next 12 months and uncertainties around federal budget measures is likely to have the biggest impact on the mortgage market,” Mr Holmes said.
“Irrespective of market conditions, Homeloans continues to invest in its sales capacity and has a number of strong platforms from which to grow our business and differentiate ourselves in the market,” he said.