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One of Australia’s brokerages has recorded a stellar sales year, with settlements jumping 8 per cent on the year before.
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Aussie said all states and territories had recorded strong lending growth, with the West Australian business growing 26 per cent on last year’s result.
The brokerage also increased its upfront net commissions paid to brokers by 15.6 per cent on last year, due to a combination of factors including a higher upfront rate from lenders and a higher pass-through rate to brokers.
Aussie’s executive chairman John Symond said he was pleased to see the group had recorded a record year despite patchy economic conditions.
“Improved broker retention and higher productivity is leading to a much higher commission payout to them and brokers are recognising that we are the only major brokerage to offer a tangible career path. They can become a mobile broker with a diploma in financial services plus full backing and business support from Aussie, and then move through the ranks, eventually becoming a franchisee with the power of a strong brand name to underpin their business,” Mr Symond said.
Coupled with strong settlement figures and higher commissions, Aussie’s lending panel has also experienced a shift in mix, with Macquarie almost quadrupling its settlements year on year (up 383 per cent.)
“In terms of total settlement share based on dollar value, Macquarie increased from 1.4 per cent in FY12 to 6.4 per cent in FY13,” Mr Symond said.
“Theirs was not a unique story, with many of our lenders experiencing portfolio share growth. Homeside settled 15.6 per cent of our total settlements this year, up from 12.3 per cent last year, and CBA also grew from 18.2 per cent last year to a 20.5 per cent share this year.”
