Oxygen Home Loans writes record mortgage business in March as average loan size hits $630,000

Oxygen Home Loans, the subsidiary mortgage broking arm of McGrath Estate Agents, wrote a record $135 million worth of mortgage in March, defying a weak overall mortgage market.

March 2012 lodgements were 80% higher than what it achieved in March 2011 and matched a strong performance in NSW by AFG, the wholesale mortgage aggregator that Oxygen Home Loans operates under.

AFG lodged $842 million worth of mortgages in NSW, the second highest month for AFG NSW since the AFG Mortgage Index commenced in 2004.

Oxygen Home Loans has 24 mortgage brokers, who predominantly arrange finance for properties purchased through McGrath Estate Agents.

It was named independent brokerage of the year (six or more staff) and Australian brokerage of the year at last year’s Australian Mortgage Awards.

ABS housing finance figures released yesterday show that NSW owner-occupier mortgage commitments fell by 9.4% in February following an 8.5% drop in January.

Oxygen general manager James Green says the company’s milestone result came on the back of a 113% year-on-year increase in new mortgage enquiries in February and an 85% year-on-year increase in March.

“The big growth area for Oxygen has been from upgraders,” says Green.

“Correspondingly we have seen an increase in the average loan amount to over $630,000, the highest monthly figure recorded.”

Green says a large proportion of the applicants are buyers of McGrath properties, “reflecting the success of offering a streamlined one stop shop for property transactions”.

More than 90% of March lodgements were approved in principle, and James says the $135 million figure provided a good indicator of market activity and sentiment.

McGrath Estate Agents chief executive John McGrath says Oxygen’s success could be attributed to the group’s commitment to “six-star service”.

“When people buy or sell property they are usually trading the most valuable asset they own.

“They expect professionalism and accountability, and that is what they know they will get from both McGrath and Oxygen,” he says.