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Purple Circle celebrates $4bn settlement milestone

The boutique aggregator has announced that its members have now settled over $4 billion in mortgages.

Purple Circle has revealed that its loan book surpassed the $4 billion milestone in January 2024, following on from a record year of settlements from members.

The group had seen strong growth over the year, with brokers having achieved close to $2 billion in settlements over the 2023 financial year (ended June 2023). Its broker members have been settling in excess of $1 million per month, it recently noted.

Founder Greg Pennells welcomed the milestone achievement, stating: “The hard work put in by our team throughout the previous years propelled us to shatter all records in the calendar year 2023.”

He flagged that while broker numbers had grown by 53 per cent, loan settlements had “surged by an astounding 86.52 per cent”, which he said built upon the success of the preceding “record-breaking year”.

Mr Pennells continued: “Our Purple Circle members have the opportunity to obtain ownership in their aggregator, providing them with a genuine stake in the journey and rewards.

“Coupled with this distinctive share ownership structure, we have dedicated substantial resources to enhance our service proposition. As a team, we see ourselves as stewards, actively working to safeguard our members’ interests within the group. This entails creating various forms of value, including financial, relational, reputational, intellectual property, social impact, and talent.

“We are committed to staying innovative by continually developing a portfolio of appealing offerings and support structures for our members.”

Small and Medium Enterprises (SME) Guarantee Scheme

The Scheme will enhance lenders’ willingness and ability to provide credit and will be available for new loans made by participating lenders until 30 September 2020.

The Government will provide eligible lenders with a guarantee of 50% per cent of new loans. Some generic terms are:

  • Businesses with a turnover of up to $50 million.

  • Maximum total size of loans of $250,000 per borrower.

  • Loans will be up to three years, with an initial six month repayment holiday.

  • Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

Reduced Interest Rates

Consider your current banking arrangements. The Reserve Bank has recently reduce the cash rate and lenders have passed this on to various loans they have.

Instant Asset Write Off

An increase in the instant asset write-off threshold from $30,000 to $150,000 30 June 2020.

Deferment of Loan Repayments for up to 6 Months

The banks are developing their own approach as to how to deal with requests from their clients for repayment holidays. Some are automatically granting the request, others are assessing the requests individually.