Login
ISCOVER
First home buyers have propelled loan volumes at the franchise brokerage, with brokers revealing that government schemes have driven FHB success in the market.
Brokerage Resolve Finance has announced it achieved record loan volumes in the financial year 2024 (ended 30 June 2024), reaching $1.74 billion, which represents an 11 per cent growth year on year.
The brokerage revealed that a “significant portion” of its growth was due to strong demand from first home buyers (FHBs), particularly due to support from government schemes and grants that are supporting FHBs into the market.
Resolve Finance revealed that the number of FHBs that its brokers have supported via government schemes has increased by 29 per cent from FY23 to FY24.
Don Crellin, managing director of Resolve Finance, said on the reason behind the increase in FHB activity: “The increase in first-time buyer loans is a testament to the confidence that new buyers have in the support offered by Resolve Finance brokers.”
Crellin said that government incentives have “played a crucial role” in supporting FHBs into home ownership.
Indeed, brokers have said that government schemes such as the First Home Buyer Guarantee under the Housing Guarantee Scheme (which allows an FHB to purchase a home with a 5 per cent deposit without paying lenders mortgage insurance) have supported many of their clients as house prices continue to climb and put pressure on borrowing capacity.
Speaking with The Adviser, Jackson Wong, a mortgage broker with Aussie Home Loans in Fremantle, said that he has used government schemes to support his clients into the market.
He said that the government has “a lot of schemes out there available for first home owners”, noting the federal government’s First Home Buyer Guarantee scheme and the First Home Owner Grant in Western Australia.
When meeting with his clients, Wong said that he creates a savings plan and organises a budget for his clients so that “we don’t run them too thin” on their borrowing capacity, which would make repayments “very difficult” later on.
Jacob Decru, managing director and mortgage broker at Loan Market Connect, said that he has also made significant use of the First Home Buyer Guarantee scheme to support his FHB clients.
Decru said that the First Home Buyer Guarantee scheme has been “huge for us” in helping FHBs into home ownership. The Loan Market Connect broker said that he has been supporting clients who don’t have enough savings to cover the 5 per cent deposit by setting them up with a savings plan so they can access the scheme in the future.
However, Resolve Finance revealed in its Generation Rent Report that only 39 per cent of renters planning to buy their first home in the next two years intend to make use of government assistance schemes.
“Awareness of government grants and incentives is crucial for first-time buyers, yet our research shows a concerning gap in this knowledge,” Crellin said.
He said brokers were well positioned to help borrowers understand what support is available to them.
Resolve Finance franchise channel on the rise
Resolve Finance said that its franchise channel has contributed significantly to its success, with almost three-quarters of Resolve Finance’s brokers now operating under its franchise channel. Two years ago, franchisees accounted for just over half of the company’s brokers.
Resolve Finance revealed that its franchise network grew by 35 per cent in FY24, particularly in Queensland and NSW, with over a third of new franchise partners coming from the two states.
The company revealed that growth in Resolve’s franchise businesses led to a 25 per cent increase in settlements through the franchise channel and accounted for $1.35 billion of the brokerage’s total loan volume in FY24.
According to Resolve, the growth of its franchise business has been supported by its training and mentoring program.
The brokerage also said that it has been “challenging the usual profile” of brokers, with more than 75 per cent of its brokers under the age of 50 and over a third being female.
Crellin said on the growth of its business so far: “The evolution of our business model has empowered us to expand rapidly and assist more clients, especially during this uncertain period where interest rate movements are more unpredictable than ever before.
“Home owners increasingly recognise the importance of consulting their broker to find the right mortgage products, and our franchise partners are consistently delivering exceptional value to their clients.”
He said that Resolve Finance will remain focused on supporting its franchisees to grow their business and support their customers.
“We look forward to continuing to expand our franchise network, and navigate the evolving market landscape with confidence and agility,” he said.
[Related: Lack of awareness of government grants holding back FHBs: Resolve]
JOIN THE DISCUSSION