Pioneer buys mortgage broker

Perth-based financial services provider Pioneer Credit has acquired an online mortgage broking company for an undisclosed sum.

Pioneer is expanding its broking offering with the acquisition of SwitchMyLoan, a local online-focused mortgage broker which assesses a customer and matches them to lenders with appropriate offers, before connecting the customer through to a bank.

“Pioneer’s mortgage broking service is all about providing value-based options to our customers,” Pioneer managing director Keith John said.

“With its online model, Switch offers consumers lower fees, while our full-service mortgage broking capability is available for those who prefer to tap into the know-how of an expert.

“The online marketplace is becoming extremely popular with consumers looking for ease and speed of transaction.”

Switch will become part of Pioneer’s ‘Connect’ brand, which was introduced at the company’s annual general meeting in October.

“Switch will now allow us to introduce an entirely new customer base to Pioneer which is timed to increase our customer growth with the launch of our new credit card products later this year,” Mr John said.

“This acquisition allows us to grow that offering as it opens up a range of new customers to Pioneer.”

The purchase of Switch will be funded out of Pioneer’s existing cash reserves.

Pioneer shares were 2.2 per cent lower to $1.75 each at midday.