Homeloans profit up as more brokers turn to non-bank lenders
Non-bank lender Homeloans says more mortgage brokers are sending business its way because more of their customers are asking about alternatives to the big four banks, an example of the damage the banking royal commission is inflicting on the major's brands.
The ASX-listed Homeloans said increased broker referrals helped drive a 19 per cent increase in settlements in the 2018 financial year and sent net profit - and its share price on Friday - higher.
Joint CEO Scott McWilliam said brokers were telling him more customers are asking to see mortgage offers from non-banks. "Brokers are forcing themselves to be educated more widely than what they have done traditionally, which was to focus on the majors and perhaps one or two second-tier lenders. It is being driven by the consumers," he said.
"It's royal commission-related and due to scrutiny around the banks in general. But this momentum didn't start with these inquires. Healthy funding markets have been helping us as well. And broadly, consumers today are more comfortable dealing with non-household brands."
Shares in Homeloans, which merged with Resimac during the year, were trading 2.2 per cent higher at 71¢ in early afternoon trading after it reported net profit for the year to June 30 of $26.2 million, up 40 per cent, on total settlements ...... read more (link)