Mortgage Choice Limited (ASX: MOC) closed up 13c or 4.7% yesterday at $2.88 a share after climbing as high as $3.04 in late-afternoon trade.
Mortgage Choice is benefiting from the upswing in the Australian housing market thanks to the low interest rate environment. With the interest rate looking likely to remain at the record low of 2.5% for some time, more and more customers are calling on the services of companies like Mortgage Choice to find the best mortgage products to suit their individual needs.
While Mortgage Choice reported a 17% increase in residential approvals and 21% increase in settlements in its first-half operations, the company yesterday made itself even more appealing when it provided earnings guidance for the full-year ended 30 June 2014.
It forecast net profit after tax (NPAT) to be 16.5% higher than in the previous year, excluding the profit made on the sale of its LoanKit business (increase in full-year NPAT including the sale would be 25%). Meanwhile, Core Mortgage Choice revenue is expected to increase by more than 8% while Group revenue should be up 11%.
While Mortgage Choice presents as a quality stock to own, you should also strongly consider adding fellow mortgage broker Yellow Brick Road Holdings Ltd (ASX: YBR) which possesses enormous growth potential. Its shares are trading at just 66c apiece.
Get in before it's too late…
Mortgage Choice and Yellow Brick Roads might be benefiting now, but you need to be prepared for when interest rates rise (which will be very soon).
