Mortgage Choice Ltd reported a 22 per cent fall in profit as the listed home loan broker was effected by the slowing economy and housing finance sector.

But the company said housing finance demand was showing a noticeable improvement since the end of 2008 as very low interest rates and declines in house prices made homes more affordable.

Mortgage Choice’s net profit declined to $8.25 million for the six months to December 31, 2008 from $10.6 million the year before, the Sydney-based company said in a statement on Wednesday.

The company said it will pay a first-half dividend of 4.75 cents per share compared with six cents the year before.

Revenue for the first half fell 6.7 per cent to $79.8 million.

“Our interim financial result is a solid outcome, especially when considered against a backdrop of a weakened economy plus decreased consumer confidence in the housing market and job security,” chief executive Paul Lahiff said in the statement.

“However, over the last couple of months we have noted renewed borrower interest, which will stand us in good stead for the second half of fiscal 2009.

“Australians are realising today’s unique buying environment very low interest rates, relatively stable housing prices, increased rents, less rental vacancies, high net migration and slow land release - offers many opportunities.”

Mortgage choice said its loan book grew nine per cent to $34.4 billion from a year earlier while home loan settlements during the six months fell 21 per cent to $4.64 billion.

AAP