The Lendi Group secured $33.6bn in settlements and posted 35% year-on-year growth during FY22, the online home loan platform and broker franchise network has revealed.
The group, which includes Lendi and Aussie Home Loans, is now responsible for 6.3% of market share. It has 1,319 brokers nationally and closed out the financial year with 233 Aussie broker franchise stores. It maintained an 80% renewal rate for existing stores and brokers, with a 25% decrease in attrition on the previous year.
The figures were revealed at Lendi Group’s annual broker conference, which took place from October 26 to 28 on the Gold Coast. This year’s theme was “Stronger United”.
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Lendi Group CEO distribution Brad Cramb (pictured above left) and Lendi Group CEO David Hyman (pictured above right) were joined by an ensemble of guest speakers over three days, including MFAA CEO Anja Pannek, NAB executive broker distribution Phil Waugh, Boost Juice founder Janine Allis, Australian tennis star Ash Barty, real estate coach Tom Panos and comedian Claire Hooper.
At its inaugural group conference, Lendi Group unveiled its ambitious vision for brokers: a deal a day average, which is a target already being achieved by Lendi home loan specialists.
“The Lendi platform is currently Australia’s number-one online home loan platform, bringing together smart technology to streamline a home loan application process with access to over 25 lenders and 2,500 different home loan options,” Cramb said. “Within weeks, Aussie brokers will start rolling on to Lendi Group’s technology platform being used by the Lendi and Domain Home Loan channels, which are some of the most productive in the industry, with some of the platform brokers on track for $100m in lodgements this year.”
Cramb said the platform would provide Aussie brokers access to Lendi Group’s trademarked world-first technology Approval Confidence, a real-time indication of whether a loan would be approved with nine major lenders. It had seen lenders achieve loan-to-settlement conversions of up to 10% higher than panel.
“We have entire teams and world-class technology all dedicated to helping solve problems and unlock growth,” he said. “Aussie mobile brokers who have opted in to the Lendi platform and associated benefits are already reaping the rewards of fresh processes with the introduction of two new operating models – ‘Associates’ and ‘Client Solutions’.”
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Cramb said the Associates teams make first contact with customers to qualify them and assist with loan packaging to deliver a personalised experience for customers, reduce touch points from inquiry to settlement, and nurture lower-intent customers.
“Since May, 75% of Aussie mobile brokers have embraced the new model and have seen a sizeable increase in both lodgement to approval and speed to approval. It’s all about creating a network of the future, which includes the beginnings of the ‘retail stores of the future’ also evolving,” he said. “All channels and brands continue to focus on innovating, growing and supporting brokers into the future, ensuring we have the assets and capabilities to set new benchmarks in customer experience, and continually grow productivity and efficiency.”
New Lendi Group data revealed mortgage activity continues to rise ahead of the next expected cash rate hike on Nov. 1.
Hyman said as households revised their options about seeking mortgage relief, 41% of NSW homeowners with mortgages were feeling the strain the most, followed by Victorians (32%), Queenslanders (28%) and South Australians (26%) – all reporting they were still “constantly” concerned about the increases.
“Sydneysiders, for example, who are continuing to remain the most worried about their mortgage, could be avoiding upwards of $140,000 of extra repayments over the life of their loan,” Hyman said. “We’re seeing 59% of mortgage holders on a fixed rate who have not yet made plans for when their fixed rate expires, and a further 20% of households admit they were not even aware of their fixed rate expiry date. Mortgage knowledge really is the power that will save borrowers in this situation.”
Hyman said lender loyalty tax was only going to increase, and for those who had already taken steps and challenged their lender loyalty, they had made significant savings by doing so.
“Lendi data shows as of August 2022, on average, banks are charging new customers rates that are 86bps lower than rates charged to existing customers, while the big four are charging 91bps less for new customers,” he said. “On a $500,000 loan, lender loyalty means mortgage holders could be missing out on very significant savings – approximately $70,000 over the life of the loan ($332 per month) increasing to $99,000 ($332 per month) on a $750,000 loan and $140,000 saving ($467 per month) on a $1 million loan.”