Login
ISCOVER
Jessica Darnbrough
The tepid property market is proving no hurdle for brokers, with one brokerage achieving a record month of lodgements.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Last month, Oxygen Home Loans lodged more than $135 million in home loan applications – up 80 per cent on the same time last year.
Oxygen general manager James Green said the company’s milestone result came on the back of a 113 per cent year on year increase in new mortgage enquiries in February and 85 per cent year on year increase in March.
“The big growth area for Oxygen has been from up-graders,” Mr Green said.
“Correspondingly we have seen an increase in the average loan amount to over $630,000, the highest monthly figure recorded.”
Mr Green said over 90 per cent of lodgements were approved in principal and the figure provided a good indicator of market activity and sentiment.
“The introduction of the National Consumer Protection Act made it much harder for customers to access Low Doc loans and banks are taking a more prudent approach to lending,” Mr Green said.
“However, they clearly have an appetite to lend in situations where the buyer can provide sufficient equity and documentation to demonstrate their capacity to service the loan.”
Mr Green said the volatility in interest rates had caused concern to some borrowers especially since banks had moved to act independently of the Reserve Bank.
“Reserve Bank decisions were being watched like a national sport,” he said.
“But now the field is more widely spread with the real result hanging on whether the banks will fall into line or play their own game.”
Oxygen isn't the only brokerage to enjoy impressive loan growth.
In February, AFG saw mortgage sales soar more than 40 per cent, proving there are still plenty of business opportunities out there for brokers.
These results further solidify AFG's executive director Kevin Matthews' claim that broker market share will eclipse 50 per cent before year's end.
Speaking to The Adviser last month, Mr Matthews said out of cycle rate movements by Australia's lenders had further enhanced the broker proposition.
“I have no doubt that the industry will hit 50 per cent market share this year," he said.
