Helping Australian consumers
For most people, buying a property is the biggest investment they will make in their lives, and selecting a suitable mortgage product in Australia’s complex market is an important, but not always easy, decision. That’s why more than 200,000 customers have chosen to use the services of
Mortgage Choice.
Formed in Sydney in 1992, Mortgage Choice has grown to be Australia’s leading
mortgage broker and is the only pure-play (specialist) mortgage broker listed on the Australian Stock Exchange (ASX sign: MOC).
Mortgage Choice provides professional
home loan advice on hundreds of property loan products offered by an extensive panel of leading lending institutions.
Mortgage Choice writes almost one in every 20 Australian residential property loans through its national network of 449 franchises and 678 brokers, and its loan book total exceeds $31.6 billion (at 31 December 2007).
Some key points about Mortgage Choice and our service:
- Unlike some of our competitors, Mortgage Choice operates purely as a broker, and does not sell any of its own products.
- Brokers do not charge the customer for their services or advice.
- Our brokers are paid exactly the same commission regardless of which lender or product is chosen by their customer*.
- We offer hundreds of loan products from a panel of over 29 of Australia’s leading lenders.
- We are the first broker to launch a Customer Charter and a nationwide Finance Broking Agreement, which means we fully disclose our service, all commissions paid, our privacy policy and our complaints procedure.
- All our brokers have undertaken a nationally recognised training course and are accredited with the lenders they represent.
- All our brokers are members of the MFAA (Mortgage and Finance Association of Australia).
- Brokers offer service seven days a week, at any time or location that suits the customer.
Our customer commitment The high ratings our customers give to our franchise owners and staff is testament to the fact that we continually meet the needs of consumers. A survey is conducted each month of 200 different customers and in the very important area of customer satisfaction, Mortgage Choice constantly scores in the 90 percentile. In terms of potential for repeat and referral business, we also rate in the 90 percentile.
As part of our commitment to consumer education, a Step By Step Guide to Property Ownership was produced - full of useful information and handy hints to help customers work through the maze of buying a property, looking at home loan options and finalising their loan with the chosen lender. This was in response to a survey we conducted that found 55% of Australians are confused about the property loan process.
In all their dealings with customers our brokers apply a ‘Client for Life’ attitude, meaning they service customers from loan enquiry through to settlement, to end of loan term and beyond.
Our history Since the nineties we have seen the emergence of non-bank mortgage providers and a proliferation of home loan products. As a result, selection of the most appropriate lender and product has become an increasingly complex and time-consuming process for borrowers, fuelling the demand for mortgage brokers.
Recognising that Australia had become perhaps the most complex housing market in the world, in 1992, two brothers decided to create a business to help consumers negotiate the mortgage ‘minefield’. Their aim was to build a national franchise network of ethical and professional property loan advisors – mortgage brokers/loan consultants – who local communities could trust with service and who didn’t ‘play favourites’.
Mortgage Choice is the result of this vision and the company strongly believes the mortgage broker proposition is appealing to all participants, i.e. the consumers, the lenders and the brokers themselves.
Outlook for 2008 Mortgage brokers presently originate approximately 45% of all new settled housing loans in Australia, as Australians increasingly choose these services rather than deal directly with a lender.
Given the relative immaturity of the broking sector, the overall size of the housing finance market and the attraction of the broking proposition to consumers, there remains strong potential for growth in the use of brokers by consumers and for Mortgage Choice to increase its market share within the broking market.
Market indicators overall remain healthy. The mortgage finance market will remain highly competitive and innovative. Against a backdrop of the housing affordability challenge, market participation by first homebuyers remained steady at 17.9% on average (ABS Housing Finance 5609.0) for 2007. Whilst not at the peak of a few years ago, it is nonetheless an encouraging development for the market overall. At the same time, rental vacancy rates are at historically low levels and with the uncertainty surrounding equity markets, the potential for sustained demand for residential investment property is anticipated.
Increasingly, credibility, accountability, quality, consistency and track record are the keys for Mortgage Choice’s consumers, franchise network and lenders.
Financial milestones at 31 December 2007 Mortgage Choice was listed on the Australian Stock Exchange in August 2004 (ASX sign: MOC). Key company financial milestones for the 6-month period to 31 December 2007 are (unless otherwise stated, all figures are based on AIFRS):
- Record net profit after tax of $10.6 million up 5% on the prior corresponding period to 31 December 2006 ($8.6 million up 2% AGAAP#).
- Total revenue of $85.5 million, up 9% on prior corresponding period ($76.5 million up 11% AGAAP).
- Earnings per share stood at 9.0 cents per share (7.3 cents per share AGAAP) compared to 8.6 cents per share (7.1 cents per share AGAAP) for the prior corresponding period.
- Mortgage Choice generated $5.9 billion in housing loan approvals during the period to 31 December 2007. This result was up on the prior corresponding period of $5.5 billion.
- The Board has declared a first half fully franked dividend of 6.0 cents per share compared to 5.5 cents per share in the prior corresponding period.
- Mortgage Choice’s loan book now stands at $31.6 billion at 31 December 2007, up 14% on the balance in the prior corresponding period.
Company awards / recognition
- 2008, 2006 and 2005 - Mortgage and Finance Association of Australia (MFAA) Awards Retail Mortgage Broker of the Year
- 2008 - MFAA Awards Best In Mortgage & Finance Industry
- 2008 - BRW Magazine Fast Franchises list
- 2007 - Lending Central Awards Mortgage Broker of the Year
- 2007 - FCA Excellence in Franchising Awards Franchisor of the Year finalist
- 2007, 2005 and 2004 - Australian Banking and Finance Magazine Awards Best Mortgage Broker
- 2006 - BRW Magazine Top 500 Public Companies list
- 2006 - Mortgage Industry Association of Australia Awards Retail Mortgage Broker of the Year
- 2005 - Australian Mortgage Awards Best Branding
- 2005 - Australian Mortgage Awards Most Effective Internet Presence
- 2005 - BRW Magazine Top 500 list
- 2004 - BRW Magazine Fast and Lasting list
- 2004 - BRW Magazine Fast 100 list
- 2004 - Australian Mortgage Awards Franchise Operation of the Year
- 2003 - BRW Magazine Fast 100 list
- 2003 - Franchise Council of Australia (FCA) Awards Franchisor of the Year – Home-Based and Mobile, Greater than 100 Outlets
- 2003 - Australian Mortgage Awards Franchise Operation of the Year
- 2002 - BRW Magazine Fast 100 list
- 2001 - BRW Magazine Fast 100 list
- 2000 - BRW Magazine Fast 100 list
- 2000 - Franchise Council of Australia (FCA) Awards Best Franchise System (under $50,000)
26-Mar-2008