Mortgage Choice

Mortgage Choice Limited (ASX: MOC), commonly known as Mortgage Choice, is a publicly listed Australian mortgage broking firm.

Mortgage Choice Limited
TypePublic limited company
ASX: MOC
Founded1992
FounderRodney Higgins & Peter Higgins
Headquarters
Sydney
,
Australia
Area served
Australia
Key people
Vicki Allan (Chairman)
Susan Mitchell (CEO)
ServicesMortgage broking, Financial Planning
Websitewww.mortgagechoice.com.au

Mortgage Choice is a current member of the Franchise Council of Australia[1] as well as the Mortgage & Finance Association of Australia;[2] and holds a credit licence (number 382869) issued by ASIC.[3]

Mortgage Choice Financial Planning Pty Limited is a wholly owned subsidiary of Mortgage Choice Limited and holds an Australian Financial Services Licence (number 422854) that authorises the company to operate a financial services business and provide personalised financial solutions.

History

The company was founded in 1992 in Sydney by Rod Higgins and Peter Higgins.[4] After two years in operation, the company became a franchisor in 1994 by selling its first franchise license in Wollongong. That grew to a national footprint in 1996.

In 1998 Mortgage Choice launched a website and ran its first TV advertisement one year later.

In 2004, the company officially listed on the Australian Stock Exchange.

In 2008, it launched a diversified product offering, commencing with mortgage protection insurance; in 2011 that offering runs across commercial and personal loans, asset finance and risk and general insurances.

In 2009, Mortgage Choice acquired mortgage aggregator LoanKit[5] . This re-launched in 2010 as the company's aggregation arm.

In 2010, Mortgage Choice acquired Australian home loan and insurance comparison website HelpMeChoose.com.au;[6] and launched its first white label product bluegum™ home loans.[7]

In 2012, Mortgage Choice launched Mortgage Choice Financial Planning.[8]

In 2016, Mortgage Choice expanded its product offering by launching a branded asset finance offering.[9]

In 2018, Mortgage Choice announced the introduction of a new franchisee remuneration model that would give franchisees a bigger share of trail commissions, via a system in which franchisees can receive commissions based on either their new lending, or existing loans.[10]

Operations

In Australia, Mortgage Choice is a national financial services company with a customer base in excess of 350,000 and a residential home loan panel of over 20 lenders.[11]

The franchisor's head office is in Sydney, with state offices in Brisbane, Melbourne, Adelaide and Perth.

There are approximately 480 Mortgage Choice franchises in operation across Australia in all states and territories.

Financial Information

Highlights for the 6 months to 31 December 2017

  • NPAT on a cash basis reached $12.5 million, up 7.0% from $11.7 million in 1H17
  • NPAT IFRS of $11.4 million, consistent with the result in 1H17
  • Total loan book $54.0 billion, up 3.2% from $52.4 billion in 1H17
  • 6.0 billion settled home loans 1H18, down slightly from $6.4 billion in 1H17
  • Financial planning Funds Under Advice climbed 49.9% from 1H17 to $634.2 million in 1H18
  • Financial planning insurance Premiums In Force moved past the $25 million milestone, reaching $26.6 million – up 21.1% from 1H17
  • Cash earnings per share at 10 cents, compared to 9.4 cents in 1H17
  • An interim fully franked dividend of 9.0 cents per share was declared by the Board, consistent with 2H17

Financial results for the full year to 30 June 2017

Mortgage Choice delivered yet another year of strong financial results:[12]

  • Cash NPAT up by 10.2% - two consecutive years of over 10% growth
  • IFRS NPAT up by 13.5%
  • Settlements grew to $12.3b and the loan book grew to $53.4b
  • Financial Planning gross revenue passed $10m, gross profit grew by 26% and the division delivered a profit for the year
  • Asset Finance gross revenue grew by 9.3% with over 1,600 transactions completed for the year
  • Record 46 new greenfield franchises were recruited
  • Final dividend of 9c per share, taking the full year dividend to 17.5c per share fully franked, up 1c year on year

References
  1. "Current FCA Members". Franchise Council Australia. Retrieved 4 July 2011.
  2. "Find An MFAA Member". MFAA. Retrieved 4 July 2011.
  3. "ASIC Connect".
  4. "Mortgage Choice About Us". Mortgage Choice. Retrieved 4 July 2011.
  5. "Mortgage Choice acquires Loankit". Business Spectator. Retrieved 4 July 2011.
  6. "Mortgage Choice acquires HelpChooseMe". Smart Company. Retrieved 4 July 2011.
  7. "Mortgage Choice launches bluegum home loans". Predictive Text. Retrieved 4 July 2011.
  8. "Mortgage Choice ready with financial planning offer". Franchise Business. Retrieved 8 April 2018.
  9. AB. "Franchise launches branded asset finance arm". Australian Broker. Retrieved 8 April 2018.
  10. Ferguson, Clancy Yeates, Adele (12 July 2018). "Mortgage Choice profit to take a hit as it overhauls franchisee pay model". The Sydney Morning Herald. Retrieved 28 August 2018.
  11. "About Mortgage Choice". Mortgage Choice. Retrieved 8 April 2018.
  12. "Mortgage Choice results presentation" (PDF). www.mortgagechoice.com.au. Retrieved 8 April 2018.
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