Resolve Finance has announced that the 2024 financial year was a record year for the business, with loan volumes surpassing $1.74 billion.
This represents a substantial 11% year-on-year increase for the broker franchise, highlighting its continued growth, and success of the franchise business in the highly competitive mortgage broking industry.
It comes after a bumper 2023 for the broker network.
A significant portion of this growth can be attributed to strong first-time buyer activity. The number of First Home Buyer schemes and grants Resolve brokers have assisted with has increased by 29% from FY23 to FY24.
"The increase in first-time buyer loans is a testament to the confidence that new buyers have in the support offered by Resolve Finance brokers,” said Don Crellin, managing director of Resolve Finance.
“Government incentives have played a crucial role, and we are proud to assist so many first-time buyers access this support to achieve their homeownership dreams."
Resolve Finance also continued its franchise expansion, growing the network by 35% building on its expansion into Queensland and New South Wales, with over a third of new franchise partners coming from the two states.
Almost three quarters of Resolve Finance’s brokers are now franchisees, a significant shift from two years ago when franchisees accounted for just over half of the company’s brokers.
Overall, the company has 62 franchise brokers and 22 employee brokers, with 44 brokers in Western Australia and 40 on the East Coast.
The ongoing growth of the franchise businesses resulted in almost 25% increase in settlements through this channel. Notably, franchisees accounted for $1.35 billion of the total loan volumes, highlighting their significant contribution to the company's success.
The growth of the franchise business has been strongly supported by its training and mentoring program, endorsed by the MFAA earlier this year.
Crellin said the program offers tailored training modules that address the unique challenges and opportunities faced by these groups, ensuring they gain the necessary skills.
“Experienced mentors provide one-on-one guidance, sharing their expertise and offering career development advice to help new brokers navigate the industry effectively,” Crellin said.
“Franchisees have complete flexibility in their role, and we have seen many of our brokers take advantage of this by working school hours or mixing work and pleasure by sponsoring their kids’ footy teams.”
Crellin said the mentoring program is also designed to provide comprehensive support for younger brokers and women entering the mortgage broking field.
Resolve Finance has aimed to challenge the usual profile of mortgage brokers in the Australian market – more than 75% of its brokers are under 50 years and over a third are female.
This is above the industry average for female broker representation, which sits at 26.9%.
Challenging the traditional profile of mortgage brokers in Australia is crucial, according to Crellin, as it brings “fresh perspectives, fosters innovation, and reflects the diversity of Australian homeowners and aspiring homeowners”.
“By having a higher representation of young, culturally diverse and female brokers, we are better equipped to understand and meet the needs of a broader customer base, particularly those younger clients and those from different cultural backgrounds,” he said. “This diversity brings more relatable relationships with clients.”
Resolve Finance said it had also seen some creative and successful marketing coming from its younger brokers, who gravitate towards social media a lot more naturally and intuitively understand how to get success from the different channels.
“Ultimately, it makes us a forward-thinking, inclusive company that can understand and service clients with different viewpoints and experiences," Crellin said.
Since the franchise model’s foundation in 2018, Resolve has grown its network to 58 partners across Australia.
Crellin said the evolutions of the business model had helped expand the business rapidly and assist more clients, especially during this uncertain period where “interest rate movements are more unpredictable than ever before”.
“Homeowners increasingly recognise the importance of consulting their broker to find the right mortgage products, and our franchise partners are consistently delivering exceptional value to their clients,” Crellin said.
“As we celebrate these milestones, we remain focused on supporting our franchisees to grow their businesses and support their customers. We look forward to continuing to expand our franchise network and navigate the evolving market landscape with confidence and agility."
