Mortgage Choice upbeat about profit

Listed home loan broker Mortgage Choice said that it had no immediate plans to issue any revised earnings guidance, even though ANZ and Commonwealth banks will reduce the commission paid to the franchise system for home loans introduced to the banks. Mortgage Choice’s prospectus for its float in mid 2004 estimated the full year impact of a 5 basis point reduction in commissions paid by banks at $660,000. Mortgage Choice said that demand for new home loans across the economy in 2004/2005 may be around $190 billion, with strong demand among franchisees in November and December.