Mortgage Choice announce new plans

by Rachel Seymour 19/11/2008

 Mortgage Choice will diversify into personal finance

 Independent mortgage broker group Mortgage Choice announce plans to expand into personal loans, equipment leasing and insurance as the Australian housing market continues to slow down.  Mortgage Choice will offer personal loans through St George Bank and GE Money as it diversifies into other areas.  The company is also looking to secure deals to offer equipment finance.  An existing agreement with life insurer ALI has been renewed and now offers home and contents insurance.  

At the company's annual general meeting yesterday, managing director Paul Lahiff revealed that due to the decline in the number of home loan approvals and settlements, profits are expected to fall by as much as 45 per cent next year.

"This business is not an overly complex one; there are a number of things that can be done in terms of responding to interesting and challenging times," Mr Lahiff said.

"The diversification we see as being a good adjunct in the latter part of this year and in 2009 to assist franchisees grow their business."

Home loan approvals fell 2.7 per cent in September, according to the latest figures released by the Australian Bureau of Statistics.

Mortgage Choice has also been affected by the reduced commissions offered by lenders to brokers.



source: The Australian
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