Non-bank lenders continue to perform strongly despite challenging market conditions, with one lender recording 21 per cent growth in its self-branded lending product.
According to Homeloans Ltd end of financial year results, challenging market conditions could not stop the lender from recording a jump in its own branded mortgage product volumes and a 10 per cent increase in net fee and commission.
Homeloans executive chairman Tim Holmes said the results reflected a continuation of consistent and stable earnings performance over the past three financial years.
“It demonstrates Homeloans’ ability to continue to deliver solid results amidst what continues to be a very challenging operating environment,” he said.
“It is particularly pleasing that we have been able to grow lending volumes of our own branded product by 21 per cent over a 12-month period which has seen housing credit growth rates fall to 25 year lows and the level of competition for mortgage lending intensify significantly. We continue to seek opportunities to grow our lending volumes, including working very closely with our wholesale funders to improve and expand our product offering.”
Homeloans has continued to focus on improving operating efficiencies, including streamlining its front end application and credit approval processes.
“This has allowed us to be more nimble and customer orientated, and supports our proposition to continue to provide a very real and refreshing alternative to the big four banks for home finance,” Mr Holmes said.
“With the current subdued housing market conditions expected to remain in the near term, we will continue our focus on being nimble and customer orientated.”