Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Homeloans reaping the reward of regulatory changes

Homeloans reaping the reward of regulatory changes

Non-bank lender Homeloans says it is capitalising on changes in the Australian mortgage market after posting a 23 per cent increase in branded mortgage settlements.

The group posted a net profit after tax of $2.8 million for the six months to 31 December, up 4.9 per cent on the prior corresponding period.

Homeloans' branded mortgage settlements for the period were $612 million, up 23 per cent.

Advertisement
Advertisement

Meanwhile, managed settlements including a four-month contribution from Queensland mortgage manager Barnes Home Loans were up 22 per cent.

In an ASX update yesterday, the group noted that the Homeloans business continues to perform strongly despite changes to the regulatory landscape during the period which impacted segments of the mortgage market, such as investor and interest only loans.

“Recent industry fragmentation, which has seen lenders moving to differentiate on policy and pricing, has benefited Homeloans given its diversified funding base,” it said.

Homeloans’ CEO Scott McWilliam said the group was pleased with the level of settlements growth and profit uplift.

“With so many lenders adopting pricing and policy changes for particular mortgage products, our diversified funding base has allowed us to capitalise on these changes,” he said.

Looking to the future, the non-bank lender is keen to ramp up its third-party distribution. Mr McWilliam said the group’s brand recognition has been enhanced by Homeloans’ sponsorship of the Perth Scorchers.

“Our sponsorship of the Perth Scorchers has significantly enhanced our brand recognition with third-party broker partners and their customers and we are pleased with the level of national coverage this relationship has again provided,” he said.

“Homeloans has a clear aim to grow and diversify the business with a focus on further enhancing product and service offerings across the company’s third-party broker partners and direct retail networks.”

The company recently launched its Homeloans Envizion product to further expand its breadth of mortgage product offerings.

[Related: Homeloans Ltd acquires non-bank]

Homeloans reaping the reward of regulatory changes
mortgagebusiness

 

Latest News

Three more lenders have announced cuts to their interest rate floors for home loan serviceability assessments in response to APRA’s new gu...

Mortgage-holders are wasting approximately $4.2 billion annually in “unnecessary” interest costs, according to new research. ...

Property price declines have wiped approximately $5.5 billion in revenue from state government budgets, according to a new analysis from Moo...

FROM THE WEB
podcast

LATEST PODCAST: New banks and bank CEOs

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.