An ASX-listed broker has seen a lift in approvals off the back of record demand for home loans over the three months to 31 March.
In a trading update, Mortgage Choice announced that its home loan approvals had increased 4 per cent to $1.35 billion over the quarter.
“Over the third quarter we saw an 8 per cent lift in group office home loan enquiries, setting a new record for the company,” Mortgage Choice chief executive officer John Flavell said.
“This lift in home loan enquiries has resulted in a 6 per cent increase in home loan applications and a 4 per cent increase in home loan approvals, compared to Q3 FY16. Mortgage Choice’s home loan approval result in March was a new record."
Meanwhile, the group’s financial planning arm saw the value of funds under advice and premiums in force surging 59 per cent and 30 per cent respectively in comparison to Q3 FY16.
“Our network of mortgage brokers understands the value of providing their customers with access to professional financial advice. As a result, a larger proportion of our customers’ wealth needs are now being met,” Mr Flavell said, explaining that the continued growth in financial planning revenue and the ongoing strength of the broking business are based on two main factors.
“As a group we have delivered continuous productivity gains as well as network growth,” he said.
“To the end of Q3, franchise numbers have grown by 5 per cent, while loan writer and adviser numbers have also continued to increase.
“These strong outcomes have come off the back of the effective execution of a very solid strategy.”
[Related: Major brokerage boss dismisses fed budget]
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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