Broker confidence towards volumes and overall business growth has soared, according to the latest Mortgage Business Sentiment Survey.
Nearly half of the respodnents (49.8 per cent) surveyed expected their business to grow, compared to 43.6 per cent in Q2.
Brokers are also confident that residential volumes will also grow over the coming quarter with 45.6 per cent tipping loan volumes rise – up from 40.1 per cent in the last period.
Growing broker confidence is mirrored by marked improvements in overall lending figures and property market activity.
According to the ABS the total number of seasonally adjusted loans for owner occupiers (net of refinancing) rose by 5.1 per cent over the last quarter. Similarly, the number of loans for the purchase of new dwellings was 2.8 per cent higher over the quarter.
Building approvals also rose 7.7 per cent in July on the back of a 9.9 per cent rise in June, ABS figures revealed, while real estate activity has risen by 17 percent since the start of June – 31 percent higher than the same time last year, according to figures from RP Data.
Ronald Mills More from More Money Options told Mortgage Business that a positive attitude and a business plan were required to stay and grow in the industry.
“Flexibility in offering several products – not just home loans – will even out the bumpy road of income at least enough to survive." Mr Mills More said.
The industry’s bullish outlook towards business and volume growth has pushed the Mortgage Business Index up 2.7 points to 36.0 for Q3 2009.
The Index measures broker sentiment towards business growth, volumes, marketing spend and recruitment, using data collected from Mortgage Business’ quarterly sentiment survey.
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