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The mortgage broking group has announced it has regained lost market share two years on from its merger with Aussie Home Loans.
In a recent market update, Lendi Group has confirmed it has regained five years of lost Aussie Home Loans market share two years on from the merger, increasing from 4.15 per cent to 4.9 per cent as of the first half of the financial year 2023 with Lendi’s market share also increasing from 1.2 per cent to 1.6 per cent in 1H FY23.
In addition, Lendi Group recorded settlements of $16.8 billion, up 9.4 per cent on the previous corresponding period.
According to the group, it continued to execute its strategy since the Aussie Home Loans merger, with platform integration success “reflected in market share growth despite challenging conditions, hitting a peak of 6.7 per cent in January and remaining above 6 per cent, with this continuing to grow in H2”.
Furthermore, Lendi Group stated the migration of Aussie Home Loans brokers onto the group’s proprietary platform has seen the first cohort of brokers experience an uplift in productivity, with home loan specialists averaging 13.5 deals a month, and the top cohort of Lendi’s brokers reaching over 30 deals a month.
Lendi Group co-founder and chief operating officer, Sebastian Watkins said: “Our strong performance and market share growth this half reflects the success of the Lendi and Aussie merger, and our continued strategic focus on innovation and investment as well as a channel of choice for customers, which combined helps deliver the market a premium product offering.
“Australian home owners trust our brokers, and our focus on migrating Aussie brokers onto the Lendi platform has assisted our market share for our brokers, it has enabled the trusted brand with faster and broader access to the home lending market, and brokers have more time to focus on their customer offering.
“Since merging with Aussie Home Loans, Lendi Group’s strategy has been on materialising a sole mission to see every broker in our network become ‘a deal a day’ broker, while keeping our core value of ‘keeping home loans human’ close to heart; enabled through a combined product offering that is both human-led and technology-driven.”
‘Mortgage prisons’ loom for 15% of FHBs
Data from the group revealed that around 15 per cent of Australian first home buyers (FHBs) rolling off their low fixed-rate periods could become ‘mortgage prisoners’ in the near future, as they have high loan-to-value ratios (LVRs) and may find it difficult to refinance.
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According to Lendi Group figures, the lowest market rates are sitting at 5.18 per cent for variable mortgages and 5.29 per cent for fixed-term loans.
However, as of May 2023, 25 per cent of all FHBs were paying a fixed rate of 3 per cent or less, while 21 per cent were on a fixed rate of 2.5 per cent and below, having taken advantage of the emergency-low rates during the pandemic.
[RELATED: 15% of FHBs facing ‘mortgage prison’: Lendi]
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