Media Release:
Latest Business Awards reveal Refund Home Loans growth
In the final week of October, Refund Home Loans (Refund) received two significant business awards that reflect homebuyers’ acceptance of the company’s innovative business model and underline the continued growth of the young company even at a time of market uncertainty.
Refund consistently rates well in surveys of the industry and earlier this year topped the rating for “Fastest-Growing Franchises by Outlet” in the BRWmagazine survey (Flagship edition January 31 – March 5 2008).
Last week, in BRW’s 2008 “Fast 100” survey, Refund improved from its 12th position in 2007 to make the prestigious Top 10 as a result of the company’s revenue growth of 141.74% (to a total of $10.51million) in the 2007-08 year (Flagship edition October 30 – November 26 2008).
Refund’s recognition was one of only three in the Financial Services category in the Top 100 and only one of 27 who featured in the Top 100 in the previous year, 2007.
Significantly, Refund was one of 7 franchise operations rated in the Top 100, with the second coming in at number 24.
Two days later Refund was presented by Choice Aggregation Services with the National Champion Award for achieving the highest loan volumes through the company, one of the largest aggregators in Australia
In a recent endorsement by Choice, Refund’s mortgage aggregator wrote that since operating with Choice in July 2005, Refund had “grown rapidly to achieve the No1 spot in volume with Choice and is now a truly national home loan provider”.
The Choice report added that the company had never received any complaints or issues relating to (its franchisees) “which is noteworthy given the volumes they are processing; further they observe the strict minimum qualifications and experience restrictions in all States.”
Wayne Ormond launched Refund Home Loans into the competitive mortgage market in April 2004 with the promise to refund its customers up to 50% of the commissions it receives from its lenders, which often amounts to more than $1,000 per loan.
Today, against a background of uncertain home mortgage rates, of declining house values and general economic concerns, Refund is finding its home loan concept proving increasingly popular.
The second significant element in Refund’s business model is the involvement of franchisees. In the course of the 2007/08 financial year, Refund’s Australia-wide network of work-from-home Franchisees increased by 49% from 114 to 170 (and to almost 200 in the two months since) while loan volumes continued their annual incremental growth and the company increased total refunds to its customers to more than $5 million since commencing business.
As the architect of the company’s business model, Mr Ormond says he is pleased but not surprised by the company’s popularity.
“Competition in the market means there are in fact numerous options offered by a wide range of lenders. Refund has access to a panel of 35 lenders, providing our customers with the widest of funding options. The company reviews the home loan products available to find the most appropriate and relevant deal for each customer’s requirements.
The research the company conducted before starting the business showed home buyers would appreciate the opportunity to gain any saving on the purchase of their home. It also showed that people would prefer to discuss their financial affairs in their own surroundings.
Both these factors play a major part in Refund’s current success as home buyers understand the advantages and ease of dealing with a mortgage broker in the privacy of their own residence where they feel able to ask questions and express concerns which they might not be comfortable to raise in an impersonal office environment.
From its commencement in 2003, adherence to the highest business and ethical standards has been Refund’s policy. As such, as part of their training, its franchisees must obtain a Certificate IV in Mortgage Lending to meet legislative requirements.
Mr Ormond contrasts this with the major banks, most of whose “Lending” staff have no such training, which he sees as a major issue for industry attention, considering 50% of home mortgages are written by the major banks.
When Refund commenced operation in 2004, the industry statistic was that 20% of home loans were handled by mortgage brokers. Today the industry puts that figure as passing 55% and in Western Australia an estimated 60% of home buyers source their mortgages through brokers.
As the popularity of the company’s product continues to increase, Refund’s Head Office staff has increased to more than 30, supporting the businesses of the fast growing Franchisee network.
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Issued: November 4th 2008
On behalf of: Refund Home Loans
Issued by: Sawyer Public Relations
Further information: Peter Sawyer (07) 3262 3192 or 0417 626 605