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Non-major takes $500m in mortgages from big four

moneyaus

moneyaus
James Mitchell 2 minute read

The CEO of a mutual lender has explained how mortgage brokers have helped the group win more than half a billion dollars in mortgages from the major banks over the last financial year.

Speaking to The Adviser ahead of the company’s full-year result announcement late this week, Newcastle Permanent CEO Terry Millett said that the customer-owned group has seen significant growth in home loans at the expense of the big four banks. 

“It is approximately half a billion dollars in home loans we have refinanced from the major banks,” Mr Millett said. “We now have close to $2 billion in home loans in the Sydney market.

“That’s a very pleasing result for us, because you have to have a really strong value proposition to get people to unwind their current arrangements and join you. We are also pleased that when those customers get here, they are significantly more satisfied than they were at the major banks.”

Mr Millett said that the migration of borrowers over the last year proves that customer-owned banking is growing in popularity as Australians look for an alternative to the big four.

“Our model delivers better outcomes for our customers and communities, without the negative consequences of the profit-maximising culture of the four major banks.”

Newcastle Permanent has relationships with four major broker networks including Mortgage Choice, AFG and Connective. The lender has been distributing through Mortgage Choice for a decade, while its relationships with AFG and Connective are relatively new.

Over the 12 months to 30 June 2017, brokers originated approximately 55 per cent of Newcastle Permanent mortgages.

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The remainder came through salaried sales staff, call centres and digital channels.

Mr Millett said that while conversions through comparison websites are quite low, they do provide a significant source of leads.

Newcastle Permanent will post its full-year results on Friday, 29 September.

[Related: Refi boom winding down]

Non-major takes $500m in mortgages from big four
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James Mitchell

James Mitchell

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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