Home loan market competition hots up

COMPETITION in the WA home loan market is increasing with a new player entering WA and an existing one firming its presence.

Wizard Financial Services has extended its branch network to include an office in Perth. While the office’s location has not been decided, Subiaco looks likely.

Meanwhile, FAI Home Loans has appointed Paul Baker as dedicated WA manager.

FAI is planning to take the battle to Aussie Home Loans and WA Home Loans.

Mr Baker said FAI would be strengthening its broker network in WA.

“WA is currently an aggressive and very mature home loan market,” he said.

Wizard executive chairman Mark Bouris said his company’s move into WA was part of its national distribution plans.

Currently its loans are distributed in WA by a broker network.

Mr Bouris said his company was securing negligible business from WA at the moment.

“Our plan was to get our distribution plans right in Victoria, Queensland and New South Wales first,” Mr Bouris said.

“Those markets are not so reliant on the broker system while that system is very strong in WA.

“I think the brand now is mature enough to go into such a parochial market.”

Mr Bouris said he did not think WA was getting very good service.

“I think the WA market is very good,” he said.

“From a loan value efficiency point of view it is far better now than it has ever been.

“The loans are bigger. People are borrowing more because land is more expensive. There are a lot of things coming together at once.”

Mr Bouris said processing loan applications through one facility in Sydney meant his company did not have to lug a lot of infrastructure around.

Wizard’s loan processing facilities are Internet-based thanks to its 25 per cent partner eCorp.