Macquarie boosts mortgage business five-fold

Shareholders have a lot to gain from Macquarie capturing a larger share of the profitable Australian mortgage market.

Macquarie Group (ASX: MQG) now has a 1.1% share of the domestic mortgage market, having increased its origination volumes five-fold since mid-2010 according to a report in the Australian Financial Review. It’s good news for shareholders given the profitability of the mortgage market in Australia.

It looks like Macquarie will prove the sceptics wrong (again!) as the investment bank sets about re-inventing itself for a post-GFC world. With 83% of the mortgage market controlled by the four major banks, there is certainly scope for Macquarie to capture further market share. Not only is increased competition good for home buyers but Macquarie’s aggressive move into the mortgage market has also been a blessing for mortgage brokers, who are a major distribution channel for Macquarie’s products. The three main listed players – Homeloans (ASX: HOM), Yellow Brick Road (ASX: YBR) and Mortgage Choice (ASX: MOC) – all have distribution agreements with the bank.

News of Macquarie’s growing position in the mortgage market comes as the bank looks to raise $500 million in debt from bonds backed by residential mortgages. This highlights the clever thinking of Macquarie’s management with the bank benefiting not just from the profitable mortgage sector but mortgages also offer a sound asset on which to boost the bank’s balance sheet.

Macquarie’s soaring share price has shrunk the bank’s dividend yield, meaning there are better options available. Interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool contributor Tim McArthur owns shares in Macquarie Group.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »