Positive signs ahead for Homeloans Ltd by lindayy

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Positive signs ahead for Homeloans Ltd

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									                 Positive signs ahead for Homeloans Ltd
          Homeloans forecast improved result for financial year ended
                               30 June 2005

Sydney, June 30, 2005

Australia’s only publicly listed non-bank lender Homeloans Ltd. (ASX: HOM) today announced an
expected profit upgrade of 15 to 25% for the financial year ending 30 June 2005. Management
changes and the restructuring of company operations, along with consolidation of the product range
over the last 9 months have been major factors in the company’s strong growth in operating cash flow
and net profit.

“The improved results were anticipated”, begins Brain Jones Homeloans Ltd Director. “The results of
the last 12 months can be directly linked to the positive changes we have made, namely the
consolidation of business practices, changes to the Business Service Unit, which now focus on an
improved more efficient broker relationship and continued emphasis on our own product line”

The profit upgrade follows Homeloans aggressive assault over the last 12 months on the Eastern
Seaboard’s home lending market. Designed as the cornerstone of the move east the “All Purpose
Saver” product has had a favourable market reaction with submissions and formals of standard loans
already showing an increase of around ???

General Manager of Sales Troy Phillips said “The take up rate of the loan after its official launch earlier
in the year has been very positive. Responses tell us that it is the product borrowers and mortgage
brokers have been looking for”

Along with the introduction of this product and contributing to the profit upgrade, Homeloans have
focussed on making the broker’s job as easy as possible. Homeloans Ltd Director Brain Jones said “We
are committed to delivering a broker friendly model by providing a solid product and service proposition.
By ensuring that the borrower is assigned back to the original broker, no broker providing service to
their customer will ever lose their trail. In doing so we have eliminated any possible channel conflict.”

“The Better Broker Support” program has also improved processing times and contributed to a high
retention rate of brokers. “There is a new culture at Homeloans and I think the broker channel is
becoming aware of that” Said Brain Jones.

The launch of a high function and easy to use broker web site, LoanZone, aimed at providing brokers
with the best possible support by providing real time SMS and email loan status updates and changes
in underwriting significantly reducing processing times have contributed to “The Better Broker Support”
program.

“Homeloans have been very pleased with the response of the LoanZone website and looks forward to
increased loan volumes through the “All Purpose Saver” complemented by our more efficient and
focussed business model. From a manufacturing and funding perspective this is our own product, and
sets us in a direction towards being self reliant in these competencies” Said Homeloans Director, Brian
Jones.
Homeloans profit upgrade can also be traced back to the consolidation of sales offices to the corporate
head office in NSW. With a centralised sales division in Sydney, Homeloans is now concentrating on
the expansion of its Sales/Broker support team throughout the country including BDM’s servicing
Woolongong, Newcastle, Canberra and Regional Victoria.

“By expanding our ‘homegrown’ BDM sales force we are positioning ourselves to take full advantage of
the void in the regional market largely untouched by the bigger banks and financial institutions” Said
General Manager of Sales Troy Phillips.

Over the next 12 months Homeloans emphasis will be focussed on distribution, continued broker
relationship management and further cost reduction.

There is a new culture at Homeloans and I think the broker channel is becoming aware of that” Said
Brain Jones.



Product Highlights

All Purpose Saver
A traditional loan for owner-occupiers or investors. Suitable for borrowers who require a flexible loan
with all the features whilst still receiving a competitive variable interest rate.
Includes:
     A variable interest rate of 6.76% (comparison rate 6.84%)
     For purchase or refinance for owner-occupiers and investors
     A LVR (loan to valuation rate) of up to 95%
     Redraw faciltities
     Additional repayments allowed at any time
     No annual or ongoing fees


LoanZone
Broker website that features automated loan updates via SMS and email, increased search functionality
and user-friendly navigation. LoanZone has been designed to make the tracking of deals by brokers as
easy and simple as possible. www.homeloans.com.au/loanzone



Homeloans Background
Founded and established in Western Australia, the publicly listed Homeloans (ASX: HOM) relocated
many of their key functions from Perth to Sydney in 2004.

Homeloans leading book is currently approximately $4 billion. The company has operations in all
mainland states.

In 2004 Homeloans appointed two ex-NAB mortgage industry specialists to key positions. Brian Jones
was appointed to the Board of Directors and Troy Phillips was appointed General Manager of Sales.
Both were key players for NAB in building their BNZA arm, later rebadged HomeSide, from a small
operation to the leading third party mortgage distribution business in Australia. HomeSide processed in
excess of $1 billion in loan applications per month.

Recently the senior management team was further strengthened by the appointment of former
NAB/HomeSide Regional Sales Manager and Head of Underwriting, Les McDonald, as National Head
of Underwriting for Homeloans. As part of this appointment Homeloans transferred its underwriting
control point from Perth to Sydney.

Enquiries
Alexandra Curr
Ph: (02) 8267 2003
Email: alexandra.curr@homeloans.com.au

Media
Peter C White & Associates
Peter White (0416 041 390) or Ben McAlary (0417 351 724)
Ph: (02) 9247 7757
Email: peter@petercwhite.com.au

								
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