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- Mortgage Choice (MOC) says it settled over $5 billion in home loans over the last half of 2019
- This is a 22 per cent increase on the year before
- CEO Susan Mitchell believes the increase is due to an improving housing market
- Despite this increase, net profits were down to A$4 million, 20 per cent less than in 2018
- Ms Mitchell went on to say that declining credit growth, persistent drought, and the bushfire crisis have all negatively affected the industry’s performance
- Mortgage Choice is down 13.5 per cent to trade at A$1.26 today
Mortgage Choice Ltd (MOC) has settled over $5 billion in home loans over the second half of 2019.
This amounts to over 22 per cent more than the same period in 2018.
Susan Mitchell, CEO of Mortgage Choice, believes this increase is the result of an improving housing market in Australia.
“The turnaround in the housing market in the second half of 2019 has continued into 2020 and I believe we are well-positioned to take advantage of this new environment as we focus on building long term sustainable business,” she said.
Despite this optimism, the company reported a net profit after tax of just $4 million, which is $2 million less than the same period in 2018 and $7 million less than the year before that.
While Ms Mitchell states the housing market is improving, she also contends that declining credit growth, uncertain economic conditions, drought and bush fires, have all negatively affected the industry’s performance.
Mortgage Choice rolled out a broker remuneration model in 2019. The aim of the scheme was to regenerate the company’s broker network and therefore increase loans.
In their 2020 outlook, the company mentions that the “Best Interest Duty” will come into effect on July 1st.
This duty, implemented by the government, applies new parameters to any remuneration given to mortgage brokers. The initiative was brought forth as a result of the banking commission and designed to make brokers act in the best interests of the lender.
While Mortgage Choice has stated that being ready for the duty’s parameters is its focus over the next few months, it hasn’t outlined how exactly these new laws will affect its current remuneration scheme.
Mortgage Choice is down 13.5 per cent to trade at A$1.26 at 11:46 am AEDT.
