Over $140 million worth of home loans were settled each day in September by a leading aggregator fast approaching a $100 billion loan book.
Connective has achieved $24.87 billion in settlements so far this year (January to September) with $3.1 billion written in September alone.
The major aggregator, which now originates 1 in 10 Australian home loans, is on track to achieve a total book valued at $100 billion.
Speaking at the Connective conference in the Hunter Valley yesterday, director Mark Haron said that the aggregator is growing and on target" for the $100 billion milestone.
“Once we hit that milestone it will make us number one in the mortgage aggregation space,” he said.
He highlighted that in September 2016, $3.1 billion of loans were settled, which equates to $141 million settlements a day, and noted that one consumer loan was settled every 1.6 minutes.
Mr Haron said: “It reflects 10 per cent of all residential mortgages in Australia. That just shows how big the group has grown and how well the business going.”
According to Connective, 18.8 per cent of loan writers in Australia use the company's services, but they make up “well over 20 per cent of the volume for brokers”. The company now has approximately 2,800 brokers, and has recently extended its panel to include Virgin Money.
“What that tells me is that Connective loan writers settle more business than other loan writers in other groups,” Mr Haron told the Connective conference delegates.
He added: “We want to try and build and find products that you, as Connective brokers, only have access to.”
Noting that Connective Asset Finance had been “a tremendous success story”, thus far, the Connective director said that the company wanted “to do more of that next year”, and will make some “fundamental changes that will make it a much stronger proposition” for brokers.
He said: “Digital is an important piece. One of the important things around digital is that it is difficult for each individual broker to develop a strong digital presence in their own businesses. How do we develop tools and aggregate for you? Those are some of the important things we are looking at next year.
“With our Mercury platform we have developed a roadmap for continued enhancements. We have to react with what is happening in the market and we have to react to new technologies and incorporate them into our platform.”
The Connective conference 'Level Up' has already visited the Gold Coast, and is currently taking place in the Hunter Valley. Other conferences will take place in Bunker Bay, Barossa Valley, and Lorne over the next few weeks.
[Related: Brokers ‘need to look at specialist lending’]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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