Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Choice loan book tops $80bn

money graph up money graph up
Reporter 4 minute read

The aggregation group has reported that its loan book exceeded a new record of $80 billion recently, driven by a robust first quarter of 2021.

Choice Aggregation Services has revealed that its brokers submitted a record $3.46 billion worth of applications in February, which surged to $4.17 billion in March.

According to Choice – which joined the Loan Market Group this year – the March volume represented a 41 per cent increase on the same month in 2020.

Commenting on the figures, Choice CEO Stephen Moore said the momentum created in 2020 by brokers has gathered pace in the first quarter of 2021.

Advertisement
Advertisement

He added that the rise in activity would likely result in more record settlement figures over the coming months.

“Choice members have responded to the surge in enquiry from borrowers who are motivated by record-low interest rates and rising market conditions,” Mr Moore said.

“Most importantly, Choice’s brokers have not let the surge in workloads compromise the quality of their service.”

Choice, PLAN and FAST joined the Loan Market Group after the deal to acquire 100 per cent of the three aggregators from National Australia Bank (NAB) officially finalised in March.

The four aggregation brands are continuing to operate under their own brand names and under the stewardship of the existing leaders Sam White (Loan Market), Mr Moore, Brendan Wright (FAST) and Anja Pannek (PLAN).

PROMOTED CONTENT


Choice has over 1,400 members and achieves over $1.7 billion in monthly settlements.

The aggregation group’s reports of settlement figures have followed those by Connective, which in February revealed that its brokers had settled a new record of $5.61 billion in December 2020, while January applications surged by 27 per cent.

PLAN Australia and Finsure also recently reported record settlement figures, while Mortgage Choice brokers settled their second-highest figures in 1H21, while Aussie recently said that their settlement levels reached around $2 billion and loan application lodgements reached $3 billion in March 2021.

The Australian Bureau of Statistics’ (ABS) lending indicators data for February 2021 has shown that new loan commitments for housing fell for the first time since May 2020, dropping by 0.4 per cent to $28.6 billion in February (seasonally adjusted terms).

The settlement figures have come as loan commitment levels continue their strong run amid record-low interest rates, government incentives such as the HomeBuilder package (applications now closed) and the First Home Loan Deposit Scheme (FHLDS), and buyer demand for housing surging ahead of housing supply.

February 2021 figures from the ABS revealed that new loan commitments surged by 48.8 per cent from February 2020, while owner-occupier housing commitments increased by 55.2 per cent.

However, the value of new home loan commitments for owner-occupiers fell by 1.8 per cent to $21.7 billion in February, the first fall recorded since May 2020.

[Related: Loan Market relaunches white label product]

Choice loan book tops $80bn
money graph up
TheAdviser logo

money graph up

 

more from the adviser
mario rehayem Pepper to 'widen' product and channel following IPO

The non-bank lender has revealed it will expand its product and c...

NAb building logo NAB sees applications rise 45%

The major bank saw a 45 per cent increase in mortgage application...

interest rate Citi reduces variable rates

The non-major bank has reduced variable rates by up to 20 basis p...

FROM THE WEB