Aussie settlements rose 11% in 2020

According to the CBA-owned brokerage, refinancing activity dominated the lending volumes during 2020, while low rates and government incentives helped drive a 28 per cent lift in loans for first home buyers in 2020.

Similarly, loan volumes for ‘next home’ buyers rose by 17.1 per cent over the year.

The brokerage had previously revealed that it had seen record settlement volumes in the last few months of the year, as borrowers moved to take advantage of record-low interest rates.

Speaking of the figures, Aussie CEO James Symond said: “The year was dominated by very heavy competition among lenders, especially in their fixed rate products, and this should continue as both fixed and variable interest rates continue to be sharpened.

“We are very confident that Aussie’s loan volumes will continue to grow to over $18 billion for the 2021 financial year, amid the buoyant real estate market, record lending conditions, and despite the ongoing economic and social pressures being placed on us all by the COVID-19 pandemic.”

Mr Symond added that mortgage brokers were “proving their worth” at this time, as they help borrowers “navigate their way through the abundance of products and government schemes currently available, as well as the often daunting task of securing a mortgage”.

He concluded: “We are seeing confidence of consumers return. I believe the comeback for the Australian property market will continue for some time, especially with the continuation of government schemes to help first home buyers enter the property market.

“Many of our brokers are currently working around the clock to help customers with their loan applications in the new year, and we are expanding the number of brokers and stores to meet the demand for assistance,” Mr Symond said.

The Aussie results come as its parent company, the Commonwealth Bank of Australia, also announced strong lending activity in 2020. 

According to the financial results for the first half of the financial year 2021 (ending 31 December 2020), the major bank saw home and business lending grew significantly over the six months to 31 December 2020.

Domestic home lending increased 3 per cent in the six months to 31 December 2020, representing 1.5 times system growth.

Meanwhile, business lending growth was greater than three times system, with growth in asset finance funding increasing 20 per cent over the six months to the end of the 2020 calendar year. 

In its financial results, the major bank also confirmed that it expects the merger of Aussie Home Loans and Lendi to complete in “mid-calendar year 2021”.

The proposed transaction is set to combine Aussie’s brand and significant broker and franchisee network with the digital technology of online brokerage Lendi to create a “market leader” in the Australian home loan market.  

[Related: Aussie CEO on the Lendi merger]