Brokerage reports strong swing to own branded mortgages

Staff Reporter Tuesday, 10 Aug 2010 1 minute read

By: Belinda Luc

Club Financial Services has reported a surge in its mortgage managed products, driven by improving customer perception to non-bank mortgages.

“We have seen a dramatic increase in our mortgage managed volumes over the past 12 months,” Club CEO Simon Norris today told The Adviser.

“Currently, our non-bank or mortgage managed products make up 50 per cent of our volumes – a vast improvement since the GFC,” he said.

According to Mr Norris, volume growth in mortgage managed products reflected the fact that overall customer sentiment towards non-bank products was continuing to improve.

“I believe the non-bank sector will experience a return to mortgage lending as it did three to four years ago when non-banks dominated two thirds of the residential lending market,” he said, adding that the benefits would flow through to brokers that offered non-bank products.

Mr Norris said the strong increase in consumer sentiment towards non-bank products had been a key driver behind Club Financial Services’ recently announced plans to expand its broking franchise.