CUA, Australia's largest customer owned financial institution, has recorded home loan growth of more than 20 per cent in Western Australia for the six months to December 2014.
"Western Australia is emerging as one of CUA's fastest growing home loan markets nationally, off the back of competitive rates, strong engagement with brokers and the personalised service provided in our Perth branch," CUA Regional Manager for Victoria and Western Australia, Brent Francis, said.
"Despite the sluggish property market in Western Australia, CUA's home loan portfolio in Western Australia is growing much faster than the eastern states."
Western Australia grew almost four times faster than the 5 per cent first-half balance growth in Queensland, where CUA has its largest home lending book and 27 retail branches.
The Western Australian lending growth was almost double the 12 per cent growth achieved in Victoria and New South Wales over the same period.
CUA increased its Western Australia home loan balance by $73.3 million over the six months to 31 December, bringing the total value of the state's CUA home loan portfolio to $443.9 million.
Mr Francis said the increased lending was also contributing to overall growth in the Western Australia share of CUA's loan book. The state's share of CUA's home loan portfolio jumped from 4.1 per cent to 4.5 per cent over the six month period – despite the lender having only one branch in the west.
Western Australia is CUA's fourth largest market, behind the more populated eastern states of Queensland, New South Wales and Victoria.
Perth Branch Manager Sharon Gunson said the branch had issued around $12.7 million in new home loans in the six months to 31 December.
"Perth has the largest lending and deposit book of CUA's 59 branches across Australia," she said.
"Western Australia is a key market for CUA. We've been successfully attracting new customers to CUA through the branch with our personalised customer service, strong local ties and our competitive products and interest rates."
Mr Francis said CUA was also experiencing very strong lending growth via mortgage brokers. Around 80 per cent of home lending in Western Australia over the first half came through the broker channel, highlighting the importance of that channel in regions with a limited branch footprint.
"The Fresh Start home loan which CUA launched in July last year has been particularly popular with WA borrowers, which is consistent with what CUA has experienced in other states," he said.
Nationally, CUA's housing finance balance grew at 2.8 times system growth during the first half. CUA issued a record $1.81 billion in home loans nationally during the first half – up almost 75 per cent on the same period in FY14.
CUA is also winning customers over with attractive interest rates on its online savings accounts and term deposits. The deposit book in Western Australia grew by $19 million during the six months to 31 December – an increase of almost 15 per cent.