Major mortgage group triples industry growth

by Julia Corderoy09 Jun 2015
Major mortgage and wealth planning group, Yellow Brick Road has reported growth of three times the market in the last six months.

The group – which encompasses the YBR franchise, Vow Financial and Resi – reported a 43% lift in loan settlements in the six months to April, compared to the same period a year ago. In comparison, the broader Australian lending industry grew by just 12.5% in the six months to March. 

“Our growth is the result of eager borrowing and low interest rates, as well as our swift response to rate drops with our ‘Rate Smasher’ product – one of the most competitive rates on offer,” Yellow
Brick Road’s executive chairman Mark Bouris said.

“It [‘Rate Smasher’] has been extraordinarily popular with the demographic of borrowers looking for straightforward loans.”

The company has been able to double its settled loan volumes, even at a time when the market is becoming increasingly competitive, says Bouris.

“Four of our last six months have been our best months on record,” he said, referencing the settlements for November, December, January and April which each surpassed $1 billion.

“It’s particularly satisfying to see Vow accelerating its growth since acquisition. And our Yellow Brick
Road branded network is really firing, with a 55% increase in April alone.”

In April, Vow reported 56% growth in settlements for the financial year to date, compared to ABS reported market growth of 15%. Upon this announcement, Bouris claimed that he expects the aggregator will become the country’s third largest within the next six to 12 months.
 

COMMENTS

  • by Craig Budden 9/06/2015 8:54:27 AM

    Be very wary YBR franchisees. There'll be no loyalty is someone offers the right price. MB will ditch you & sell for a profit, just like the Wizard days. Wizard store owners didn't get so much as a 'thanks for your help' from MB.

  • by Harold Spencer 9/06/2015 11:12:02 AM

    So the question is Craig how many Wizards thanked MB for all his help? Figured about the same traffic either way.

  • by Craig Budden 9/06/2015 11:49:27 AM

    No Harold. I think years of loyalty & hard work deserved more than being flogged off to GE Money in 2004. Then, as CEO, when GE sold to Aussie, he ran off at the handover meetings, without so much as a 'hello' or 'goodbye' to existing franchisees, many of whom were with him from day one & helped shape Wizard. As I said, be careful. Was always aloof, & will do the same here when it suits him.