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Broker flows have remained stable at the non-major bank, with more than 80 per cent of residential loans being broker-originated.
Non-major bank MyState has revealed in its latest financial results for 1H24 (ended 31 December 2023) that 82 per cent of its total home lending portfolio was broker-originated.
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Broker flows for MyState were up to 87 per cent in 1H24, a rate that has been stable since the period ended 30 June 2022, according to the bank.
MyState’s loan book increased $77 million in 1H24 to $7.9 billion, which, according to the bank, was 1.0 times system.
Speaking with The Adviser, Brett Morgan, chief executive of MyState, said: “The broker channel continues to be a key component of the growth strategy for MyState’s lending business, with over 80 per cent of our lending portfolio originated by mortgage brokers.”
The non-major bank will be working on upgrading processes for customers and brokers, Mr Morgan said.
He commented: “We’ll be starting some important work to upgrade our end-to-end loan origination process – with a focus on delivering an even better experience to our customers and brokers.”
Mr Morgan also stated that the bank will be implementing “important changes coming soon to support first home buyers”.
Maintaining its “strong” portfolio in Tasmania and expanding along the eastern coast was a priority for MyState, according to Mr Morgan.
The non-major bank said that it has been focused on “low-risk, owner-occupied lending” in the residential market.
It reported that 77 per cent of home loans had an LVR of 80 per cent or less. Only 23 per cent of residential mortgages had an LVR over 80 per cent.
The average LVR across the bank’s residential loan book came to 56 per cent over the first half of the 2024 financial year.
Mortgages that were 90-plus days in arrears remained relatively stable at the bank over the six-month period ended 31 December, at 0.39 per cent, below the industry average. Home loans that were 30-plus days in arrears made up 0.91 per cent of the bank’s residential loans.
Mr Morgan said: “MyState Limited had a solid first half, with growth across lending and funds under management delivered off a lower cost base.”
The financial results came after the recent appointment of new head of broker distribution James Cameron.
[Related: Young mortgage holders looking for better deals: MyState Bank]
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