Finance broker Mortgage Choice has posted a fall in annual profit and sounded a warning about the effects of housing under-supply and affordability on the housing market.
Mortgage Choice reported a net profit after tax of $23.479 million in 2009-10, down 12.5 per cent from $26.849 million in the prior year.
On a cash basis, Mortgage Choice said annual net profit was $14.8 million, up from $13 million in 2008-09.
Revenue was $170.513 million, down 11.2 per cent from $191.993 million.
Profit before tax was down 12.3 per cent at $33.468 million, with earnings per share at 19.7 cents, down from 22.6 cents in 2008-09.
Mortgage Choice declared a final dividend of 6.5 cents, fully franked, up from 5.5 cents, fully franked, the year before, which the company said represented a 17 per cent rise in its dividend payout.
The company said the fall in reported net profit was due to an adjustment in 2008-09 of its future loan book cash flow estimates.
Mortgage Choice said it had not been deterred by "subdued growth in housing finance demand", but it sounded a warning for the market in the future.
"Housing undersupply continues to remain a problem that places strain on housing affordability for a large number of property buyers as well as renters," Mortgage Choice chief executive officer Michael Russell said.
"Australia has serious blockages in its land and dwellings supply pipeline. This must be cleared if we are to tackle the undersupply problem that continues to stress housing affordability," he said.
"While undersupply is good news for many investors, with tight rental vacancy rates seeing rental price rises, it is bad news for others. Our three tiers of government need to work together on effective and immediate action."
Total residential commission revenue on a cash basis was $135.1 million in fiscal 2010, down two per cent on $138.0 million a year before, the company said.
Its Mortgage Choice-only residential loan book reached $39.1 billion, up 8.6 per cent on $36.0 billion, "ahead of system growth (of) 7.9 per cent".
AAP