Australian Broker 18.20

OCTOBER 2021 ISSUE 18.20

AFG guides new broker businesses Aggregator’s brokers discuss how they set up their brokerages /16

Nation’s top BDMs honoured Australian Broker unveils its 2021 5-Star BDM winners in special report /24

v Big deal: nMB, Liberty come to rescue Andy Truong finds loan solution for client at risk of losing their home /30

ALSO IN THIS ISSUE…

RENEE BLETHYN Leading tech provider NextGen.Net’s innovative Industry Benchmark Reporting service offers valuable new data to broker groups and lenders /14

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Opinion SME expert Andrew Griffiths on charging what you’re really worth /22 Property market analysis Broker Tom Uhlich looks at lenders’ interest rates, cashback offers /33 In the hot seat How Nicholas Clunes became an Aussie Home Loans broker /34

12/10/2021 10:03:42 am

NEWS

IN THIS SECTION

Lenders NAB overhauls third party strategy to boost broker channel /04

Industry groups Mortgage broker numbers and pay on the rise, says MFAA report /06

Market Pandemic lockdowns affecting property settlements /08

GLOBAL WATCH What’s happening in the mortgage, broking and banking world in the United States and Canada? Here’s your snapshot of the news that matters most in North America

EX-BANK OF CANADA ADVISER EXPECTS INTEREST RATES TO RISE Bank of Canada will have to consider raising interest rates within the next few months, as supply and inflationary pressures will likely prevail for the foreseeable future, according to a former adviser at the central bank. “The bank thinks that there’s a lot of capacity, which I don’t think there really is, and the facts on the ground of rising prices show that,” said Fidelity Investments portfolio manager David Wolf. He said any upward movements in the BoC’s benchmark interest rate will have to take place in the first half of 2022. “The consequences are pretty straightforward. The short end backs off, curve flattens, Canadian dollar goes up – and certain businesses in Canada may have a harder time because of the effects of the tightening.”

THE

PENDING HOME SALES ON UPWARD TRACK ACROSS U.S. MARKETS are returning to the US market after a short hiatus, thanks to improving prices and supply, the National Association of Realtors (NAR) has reported.

Breaking two months of consecutive declines, pending home sales rose to 119.5% in August, up 8.1% month-over-month but down 8.3% year-over-year. “Rising inventory and moderating price conditions are bringing buyers back to the market,” said NAR chief economist Lawrence Yun. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.” Pending home sales in the Northeast rose by 4.6% to 96.2 in August (-15.8% YoY) and by 10.4% to 115.4 in the Midwest (-5.9% YoY). In the South, contract signings grew 8.6% to 141.8 (-6.3% YoY). The West saw a 7.2% increase to 107 (-9.2% YoY).

BUYERS

www.brokernews.com.au OCTOBER 2021 EDITORIAL

SALES & MARKETING

Editor Antony Field

Publisher/Sales Manager Simon Kerslake

News Editor Mike Wood

CORPORATE

Production Editor Roslyn Meredith

Chief Executive Officer Mike Shipley

ART & PRODUCTION

Chief Operating Officer George Walmsley

Designer Cess Rodriguez Production Manager Alicia Chin Customer Success Manager Andi Zbojniewicz

Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

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tel: +61 2 8311 5831; fax: +61 2 9439 4599 subscriptions@keymedia.com.au

ADVERTISING ENQUIRIES

Simon Kerslake +61 2 8437 4786 simon.kerslake@keymedia.com.au

Australian Broker is part of an international family of B2B publications and websites for the mortgage industry MORTGAGE PROFESSIONAL AUSTRALIA claire.tan@keymedia.com +61 2 8437 4772

NZ ADVISER

alex.rumble@keymedia.com T +61 2 8437 4708

CANADIAN MORTGAGE PROFESSIONAL john.mackenzie@keymedia.com T +1 416 644 8740

BETTER VALUE TO OWN A HOME THAN RENT, SAYS CANADA SURVEY Canadians who can afford a 20% down payment, it is more financially beneficial FOR to take on a mortgage than to rent long-term, according to a Royal LePage survey. This is despite the monthly costs of ownership being on average higher than renting. “Mortgage payments comprise principal and interest, and the principal component can be seen as a form of saving, albeit forced saving,” Royal LePage said.

“While the homeowner has to pay the full amount each month, the principal is not a true cost. The interest component gradually decreases over the life of the loan, effectively increasing the amount of forced saving each month.” This is part of the long-term value proposition of housing, said Royal LePage Real Estate Services COO Karen Yolevski.

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MORTGAGEBROKERNEWS.CA corey.bahadur@keymedia.com T +1 416 644 8740

MORTGAGE PROFESSIONAL AMERICA katie.wolpa@keymedia.com T +1 720 316 7423

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor.

Contributions are invited, but copies of work should be kept, as Australian Broker magazine can accept no responsibility for loss. Australian Broker is well known within the industry as “The broker’s magazine of choice”.

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11/10/2021 12:18:17 pm

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11/10/2021 5:19:04 pm

NEWS

LENDERS PROSPA MOULA JOINS ACQUIRES PANELLOANEZI, AT ADDS AGGREGATOR TOCCO TO FAST TEAM lender Prospa has bought fast-growing commercial finance brokerage Loanezi. Prospa has also acquired the services of Loanezi founder and managing director Renee Tocco, who will take over as Prospa’s northern regional manager, focusing on broker relationships in Queensland, NSW and the ACT. “This strengthens our broker market leadership team and continues our commitment to provide the highest levels of service to all our partners,” said Prospa co-founder Beau Bertoli.

SME

RESIMAC CUTS TURNAROUND TIMES, INTEREST RATES lender Resimac has cut turnaround times to as little as one to two days and dropped its Prime Full Doc home loan variable rate to 2.14%. The changes followed a client survey showing the number one priority of home loan customers who came to the lender via a broker was the amount of paperwork required for approval.

“Resimac has invested significantly in our processes, technology and staff to improve our turnaround times,” said GM of distribution Daniel Carde.

NON-BANK

“We recognise the essential role of brokers in helping Australians to buy their dream home or build their investment portfolio” Phil Waugh Executive – broker distribution, NAB

Phil Waugh, executive – broker distribution, NAB

NAB’S NEW BROKER DISTRIBUTION MODEL AIMS TO BOOST CHANNEL NAB has combined two of its broker sales teams to provide a better and more consistent experience for brokers dealing with the big four bank has announced that it has streamlined its third party strategy by combining its NAB Broker and Advantedge sales teams into a new NAB Broker Distribution model.

The brands will remain separate in their broker-facing activities, with BDM teams and sales teams remaining apart in alignment.

The changes are designed to improve the broker experience at the major bank, with NAB executive, broker distribution Phil Waugh planning major investment into broker strategy in 2022.

“We want to be the most reliable bank for brokers and customers, providing a consistent experience NAB

regardless of how they choose to come to us to buy their home,” said Waugh.

“Combining our sales teams allows us to provide greater consistency and improved sales support to all of our brokers, regardless of whether they introduce a customer through the NAB or Advantedge channels.”

The realignment includes a new head broker experience role, with Advantedge executive Adam Brown moving up to the position of executive, broker experience.

“Adam’s skill set and technical expertise are well suited for the enablement function and accelerating enhancements to the

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broker experience for both brands,” Waugh said.

“As we continue to focus on a simpler digital experience, the changes enable us to increase focus, resourcing and support for the business where it is needed most.

“Maintaining separate sales support for the NAB and Advantedge brands is key to our model and reflects the importance of our white label proposition, which covers approximately 85% of the market.

“We recognise the essential role of brokers in helping Australians to buy their dream home or build their investment portfolio.

“The updates to our model will help us to be more agile and even more responsive to changing market conditions.”

Waugh said NAB would continue to build on its huge investment in technology to deliver best-in-class solutions and experiences for brokers and customers.

Melbourne (03) 9225 5189 Sydney (02) 9239 3144 Adelaide (08) 8408 0800

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12/10/2021 10:06:45 am

ANZ & BROKERS

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ANZ Brokers * This LVR is for medical practitioners, specialists and dental practitioners who are existing ANZ lending customers (that have held an ANZ lending product for at least 6 months) with an owner occupier loan making principal and interest repayments. For other eligible customers, the LVR is up to 90%. Different LVRs may apply to other lending options, such as investment lending. Terms, conditions, fees, charges, and credit approvals and eligibility criteria apply to ANZ home loans. Please visit anz.com.au/promo/broker for the offer terms and conditions, including how to verify customers’ qualification/registration. © Australia and New Zealand Banking Group Limited (ANZ) 2020. ABN 11 005 357 522. Australian credit licence number 234527. Item No. 97528C 08.2021 WX248035

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11/10/2021 12:18:58 pm

NEWS

INDUSTRY GROUPS COBA WANTS PROTECTION FOR SMALLER BANKS Customer Owned Banking Association is urging regulators to avoid the anti-competitive impacts of any macroprudential intervention in housing finance on smaller banks.

COBA was responding to the Council of Financial Regulators, which last month confirmed that macroprudential policy responses were under consideration and APRA would consult with the council about any measures. “Adequate consultation prior to intervention will reduce the risk of unintended consequences on smaller banks from any macroprudential measures,” said COBA CEO Michael Lawrence.

THE

APRA GRANTS LICENCE TO NEW DIGITAL BANK has granted Avenue Bank a licence to operate as a restricted authorised deposit-taking institution. The Sydney digital bank provides funding for SMEs. As a restricted ADI, Avenue Bank will be conducting limited banking business with select customers and business partners prior to a full public launch on receiving its full ADI licence.

Avenue Bank CEO George Confos said the receipt of its restricted licence was a major milestone.

“We’re bringing to market a 21st century business bank for 21st century SMEs.” APRA

“Mortgage brokers were able to assist a record number of customers in taking advantage of the historically low interest rates and strength in the market” Mike Felton CEO, MFAA

Commercial Loans

Mike Felton, CEO, MFAA

BROKER NUMBERS, REMUNERATION ON THE RISE – MFAA REPORT The MFAA’s latest report on the mortgage industry for the six months to March 2021 shows the broker channel continues to grow in size, pay and loan settlements broker numbers are growing and so is their average pay, but the percentage of women joining the industry continues to fall, according to the MFAA’s 12th Industry Intelligence Service report.

Its detailed analysis of the broker channel for the six months between 1 October 2020 and 31 March 2021 shows that broker pay has risen 14.55% compared to the previous year, with the average broker taking home $161,894.

The number of active mortgage brokers also grew, by 3.5%.

Data for the report, supplied by 12 of the mortgage industry’s leading aggregators, MORTGAGE

also showed that the total value of residential home loan settlements delivered by brokers was $122.81bn, a rise of 24.4% year-on-year and the highest ever recorded by the report since it began in 2015.

“Mortgage brokers were able to assist a record number of customers in taking advantage of the historically low interest rates and strength in the market, and in doing so achieved some of their most positive results to date,” said MFAA CEO Mike Felton.

He said the settlements result was indicative of a strong performance by mortgage brokers, with upfront commissions growing 19.93% year-on-year, reaching $94,096 per broker for the period.

“This helped to achieve a healthy

national average combined remuneration per broker of $161,894 per annum, or a 14.55% increase year-on-year, despite a 3.5% increase in the number of brokers in the industry.”

However, the percentage of women in mortgage broking fell year-on-year to the lowest level ever – 25.8%. The total number of female brokers remained largely steady, but men outnumbered women more than two to one in terms of new people joining the industry.

“Disappointingly, though, the proportion of female brokers has seen a decline to the lowest observed level, even as the total broker population recovered and increased period-on-period,” said Felton.

“Overall, October 2020 to March 2021 was a positive period for the mortgage broking industry, as brokers responded to customer demand driven by record-low interest rates, government support and a buoyant national housing market.”

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11/10/2021 12:19:10 pm

TECHNOLOGY UPDATE

NEWCASTLE PERMANENT PREPPED TO LAUNCH BROKER FAST LANE

Simon Burt, Acting Head of Digital Customer Experience and Innovation, Newcastle Permanent

on its reputation for delivering quality service, Newcastle Permanent has introduced a suite of ApplyOnline digital tools to help boost application quality and enable the lender to fast-track applications.

“We’re implementing a broker loan processing fast lane through ApplyOnline,” says Newcastle Permanent Acting Head of Digital Customer Experience and Innovation Simon Burt.

In contrast to the traditional approach of rewarding brokers who lodge the highest number of deals, Burt says, “the number of loans you submit doesn’t matter; if you do a good job, and submit a complete application, we will use ApplyOnline to identify that quality and process those loans ahead of those applications that are incomplete”.

“We have a focus on forming really strong partnerships with brokers who are wanting to send us quality business,” says Burt.

“Brokers using the entire suite of ApplyOnline’s technology tools are absolutely at an advantage in working with us, given the assurances and efficiencies it provides. Features such as ‘Supporting Docs’, the checklist within ApplyOnline, the Document Verification Service and ‘eSign’ allow us to fast-track the processing of loans and build good, trusted relationships.

BUILDING

“In our experience, where brokers don’t use the tools, it often results in follow-up requests that can lead to days of inefficient reworking, which can then slow down the process for customers, brokers and our broker teams.

“We want to encourage brokers to use all the ApplyOnline tools available to them.”

Newcastle Permanent’s modus operandi is predicated on NextGen.Net technology enabling it to compete on a level playing field, Burt points out.

“From a technology perspective, we can genuinely compete with the major banks.

They might have a lot more to invest in technology, but through NextGen we are able to have a leading proposition,” he says.

Recently, Newcastle Permanent signed an MOU with Greater Bank to explore uniting the two locally grown organisations through a merger to create one of Australia’s largest customer-owned banks, serving a combined customer base of approximately 600,000.

The merger will increase their ability to invest in new technologies and enhancements to the services offered to customers and partners, which will ultimately benefit brokers.

“Our size means we are small enough to make changes quickly, and big enough to have enough

Steven Hudson, Customer Account Executive, NextGen.Net

money to do it,” says Burt.

“For example, we’ve been one of the first lenders, apart from the fintechs, to deliver digital signatures on home loans end to end. We use ApplyOnline eSign at the application stage, and DocuSign is implemented for the mortgage and loan agreement, as well as for variations.

“Technology is important.

So, too, is the human element,” Burt emphasises. “Our focus is on our people and relationships.

Our BDMs are known as some of the best in the business.

“We use technology to make it easy for the broker to take out the pain points and deliver us a quality application so the process can be streamlined and quick.

Relationships are a key aspect of that equation.”

Newcastle Permanent is expanding what it does with NextGen.Net, and Burt underscores the significance of this relationship.

“I see NextGen as a partner versus just a software company.

We align very closely with them,” he says. “We tell them what we want to do and how we want to change and evolve our processes.

And they tell us how they think we could improve. It’s all about making the process easier and faster for brokers.

“I’ve worked with NextGen for five years, and I really enjoy it because we are continually

challenging each other to make the process better for brokers.”

NextGen.Net Customer Account Executive Steven Hudson describes his role with Newcastle Permanent as “a trusted adviser”.

“Through our partnership we can help to ensure Newcastle Permanent maximise their return on their investment. We adopt a consultative approach and make recommendations where we can make efficiencies work and where there are opportunities for improvement.

“The way we’ve established and built on the relationship is a product of delivering on time and on budget. We do what we say we’re going to do and in the time frame we say we’ll do it in. That cements and glues the relationship.”

The next stage in Newcastle Permanent’s roadmap will be to grow further point-of-sale quality features, helping to boost straight-through processing and empowering brokers to ensure faster turnaround.

“For us it’s about brokers using the full suite of ApplyOnline tools we are making available to them,” says Burt.

“For those brokers who take up these tools to help them provide all the right details up front – supporting documents, etc., – it can really speed up processing by reducing unnecessary rework.”

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11/10/2021 12:19:24 pm

NEWS

MARKET BUILDING MOULA JOINS APPROVALS PANEL ATFOR HOUSES, AGGREGATOR APARTMENTS FAST RISE approvals rose in August across most states, reflecting strong demand for housing despite the end of stimulus measures. Residential dwelling approvals rose 33.7% in the August quarter, ABS data shows. The sales rate was higher than in the same quarter of 2018 and 2019. Multi-unit approvals were 39.7% up on the July quarter of 2020. “The value of renovations approved also reached its second-highest level on record,” said the Housing Industry Association.

BUILDING

LENDERS BETTER EQUIPPED TO HELP, SAYS STUDY consumer data reveals how lenders have adapted to helping customers after the second wave of major lockdowns in Australia. Customer expectations have improved, with 60% of Australians polled now saying lenders have dealt with customers well in response to the pandemic. Experian’s GM of decision analytics for ANZ, Mat Demetriou, said, “Banks are much better prepared now to support customers through hardship than perhaps they were in early 2020.”

EXPERIAN’S

“While the lockdowns are having an impact, as we can see in the [property settlement] declines this quarter, buyers and sellers are still finding a way to transact” Mike Gills Head of research, PEXA Insights

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Mike Gill, head of research, PEXA Insights

LOCKDOWNS HURTING PROPERTY SETTLEMENTS, SAYS PEXA Digital property settlements and conveyancy company PEXA’s data shows coronavirus lockdowns are having a negative effect on the housing market, especially in NSW and Victoria ongoing lockdowns have made a dent in the housing market in Australia, according to the latest figures released by conveyancing giant PEXA. PEXA Insights showed that NSW and Victoria saw their property volumes and settlements fall in the quarter from July to September 2021, during which the states were largely under restrictions, while Queensland, where lockdowns have been avoided, continued apace.

Greater Brisbane and Surfers Paradise were the standout regions of Queensland, with NSW areas that avoided the bulk of the THE

lockdowns, such as Port Macquarie, also holding up well.

“In NSW and Victoria, where we had extended lockdowns in the last quarter, there has been an impact,” said PEXA Insights head of research Mike Gill.

“In the previous four quarters, we were recording rises across all states but in particular NSW. It’s been growth in terms of the number of settlements and also the value of those settlements.

“This quarter is the first that we’ve seen a decline in some time now. In NSW and Victoria, that’s been very much informed by those lockdowns. We’ve seen drops in

volume: 4% on the previous quarter in NSW, 4.6% in Victoria.

“But what I should say is that we’re in an interesting phase now.

If we go back a year and compare to the lockdowns last year, the numbers are still well up. NSW is up nearly 30%, Victoria up nearly 33%.

“What that tells us is that, while the lockdowns are having an impact, as we can see in the declines this quarter, buyers and sellers are still finding a way to transact.”

Gill added that the Queensland market results showed “an impressive performance ... albeit coming off a lower base”, and there could be much more potential for growth.

“Queensland’s story is really a standout, because for so many years prior to this current upturn, the market has been quite stagnant,” he said.

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11/10/2021 12:19:34 pm

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11/10/2021 12:19:49 pm

TECHNOLOGY UPDATE

THE TECH BEHIND PEPPER MONEY’S AWARD-WINNING SERVICE comprehensive credit reporting (CCR). With the customer’s written consent, using Pepper Product Selector will give brokers access to a customer’s credit score and other bureau data, including repayment history information – empowering them to have deeper discussions with their clients about their situation and roadmap to success.

Ultimately, it gives brokers an opportunity to demonstrate their value as trusted advisers. The broker will be able to provide transparency to the customer on the rate available to them, the maximum LVR, fees, and loan amount on offer against the security, without impacting their credit report. And if the customer is happy with the indicative approval, the broker can proceed to application with confidence.

a fast-moving property market, brokers know speed to finance matters more than ever – and removing effort delivers a much better customer experience. Pepper Money General Manager Mortgages and Commercial Lending Barry Saoud explains the Pepper Money tools and technology that underpin its market-leading services.

IN

What is Pepper Money’s current focus?

Pepper Money is committed to creating platforms that are designed with broker and customer needs in mind.

We want to create an experience that is as effortless and frictionless as possible.

Our broker partners are a crucial part of our business, representing 95% of what comes through the door. Because of this, we regularly consult our brokers about their current pain points. What we’ve found is that it always comes down to confidence. They want to be confident in the process.

They don’t want lenders moving the goalposts on credit policies every time.

And while there may be increasing numbers of fintechs offering discounted rates and a fast online experience, customers are often let down once they discover they don’t fit into very narrow lender requirements.

That’s why we invest in removing roadblocks and providing more certainty. We are the premier lender in the country that can offer a digital service with the fastest turnaround times for a significant market segment – prime, near prime and nonconforming borrowers, including self-employed customers.

How are you supporting brokers in a time of uncertainty?

The current environment has shown us that ‘real life’ can happen to anyone. Unexpected events occur that can have a major impact on a family’s financial situation.

At Pepper Money, we believe that borrowers should never

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Barry Saoud, General Manager Mortgages and Commercial Lending, Pepper Money

“We will continue to evolve and listen to the market and understand the pain points that a broker faces in their interactions” be in a position where they do not understand their financing options, regardless of their circumstances.

That’s why Pepper Money’s Product Selector was created – to help brokers source the best-fit home loan solution for their customers, the first time.

The entire process, from initial borrower assessment through to indicative approval, takes less than five minutes – with no future rate or fee surprises. Within minutes, the tool does a comprehensive credit check, an electronic valuation, and

puts all the information through our algorithm decision engine.

It follows our Credit Cascading Model, which provides three Pepper Money solutions (Prime, Near Prime, or Specialist) with a high probability of conversion – removing the majority of the showstoppers experienced in a standard submission. It’s like having a BDM sitting right beside you, making sure you know our solutions.

Additionally, it allows brokers to harness the power of

What are Pepper Money’s plans for the future?

Since its launch we’ve optimised Pepper Product Selector and consulted with brokers who regularly use the tool to meet their expectations. We will continue to do this, as well as invest in more ways to improve the broker and customer experience through technology.

We have also recently integrated digital identity verification into our application process and are aiming to automate valuations, deploy system enhancements like e-signing and provide real-time application status updates in the very near future.

We will continue to evolve and listen to the market and understand the pain points that a broker faces in their interactions. We know the most valuable asset our brokers have is their customers – and our most valuable asset is our people.

This continued investment in technology will give everyone a seamless, effortless experience, and it will help set our brokers up for the future.

To find out more about Pepper Money loan solutions and tools, visit the Pepper Money Broker Portal today: www.pepper.com.au/broker; or phone 1800 737 737

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11/10/2021 12:20:06 pm

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FE AT URES

BROKER SUCCESS

AUSSIE BROKER SMASHES SETTLEMENTS RECORD It’s a big step going from being an Aussie Home Loans mobile broker to becoming a franchisee and running your own Aussie store, but Dilip John has risen to the challenge, notching up big loan settlement numbers in a short period records were tumbling at the Tokyo Olympics back in August, Dilip John – one of Aussie Home Loans’ newest franchisees – was notching up a very different record, settling over $66m in loans in just his first seven months.

John is no stranger to the Aussie Home Loans business model. He started as an Aussie mobile broker in 2010 and five years later stepped up to become a senior Aussie broker operating out of an Aussie store in Melbourne’s northeast.

By 2020, John was ready to back himself and invest in an Aussie franchise of his own.

Undeterred by the challenges of the COVID-19 pandemic, he moved forward with his plan.

“I felt that buying a franchise would open opportunities for me and create the potential for expansion,” says John.

The highly experienced broker opened the doors to Aussie Heidelberg, 15km northeast of the Melbourne CBD, late last year.

With many new territories for stores available across Victoria, he settled on Heidelberg because he knows the area well, and it’s close to his home.

WHILE

Business forges ahead As John notes, he was probably one of the few people brave enough to open a business in an exceptionally uncertain year, but he has no regrets.

“It was a good decision,” he says.

“Since we opened, business has really forged ahead.”

Aussie Heidelberg already employs two brokers and two assistants, and John is looking to add more brokers to his busy team.

What’s especially remarkable about John’s journey as a franchisee is his outstanding success. Aussie Heidelberg’s $66m in home loans in just seven months smashed previous records for new Aussie store settlements.

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Dilip John, mortgage broker and franchisee, Aussie Heidelberg

“I felt that buying a franchise would open opportunities for me and create the potential for expansion” Job satisfaction John is understated about his success. He attributes his record level of settlements to “having good clients”, backed by his high level of community engagement.

Being a franchise owner brings a new set of responsibilities, he says.

As well as helping his own clients achieve their homeownership goals, he manages the office and his team.

But he believes the rewards are there.

“For store brokers who are comfortable taking on the additional responsibility, there are definitely

more rewards in being a franchisee.

Plus I get to work with more brokers – there are more people to interact with, and that’s the part I really enjoy,” John says.

He describes himself as an experienced mortgage broker “with a passion for achieving the best financial outcomes for my clients”.

After completing his Master of Business Administration and discovering that he had a sharp eye for numbers, John entered the accounting field and practised as an accountant for several years.

“My passion for helping people at pivotal points in their lives eventually led to a career in mortgage broking,” he says. “Working with individuals and families to organise their finances is therefore very important to me.

“My goal is to assist clients to reach their best financial potential, helping them with wealth creation and the reduction of debt, and to obtain suitable deals for house purchases.”

John has a wide range of expertise in different areas of lending, including first home buyers, refinancing, property investment, family guarantor home loans, deposit bonds, bridging loans, and commercial and construction loans.

He services Heidelberg, Rosanna, Macleod, Eaglemont, Ivanhoe, Bulleen, Greensborough and surrounding suburbs. AB

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11/10/2021 11:40:51 am

Go far.

Go together.

Running a business can often feel like navigating the ocean without a map, a compass or a sail. To succeed you don’t just need intelligence and hard work, you need the right support and the right tools. With AFG you have a tried and tested partner by your side.

One who can provide you with confidence, support, and the tools you need to grow your business, your dream and your future.

afgonline.com.au ACN: 066 385 822 | Australian Credit Licence: 389087

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COVER STORY

DATA SERVICE PROPELS BROKERS TO NEXT LEVEL NextGen.Net’s new head of broker partnerships Renee Blethyn has over 20 years’ experience in the finance industry. She talks about her role and the valuable data the tech provider’s Industry Benchmark Reporting service offers aggregators and lenders

is excited by the power of technology and the opportunity to work closely with broker networks.

She began her career as a broker at a Destiny Financial Solutions franchise before working in various roles at Suncorp, Pepper Money, BankSA, Connective and St. George Bank.

Blethyn joined NextGen.Net, a leading technology provider to the mortgage lending industry, as its new head of broker partnerships in June.

“So this was a change for me, having started out as a broker and then worked for a lender as well as an aggregator in a couple of different roles some time ago,” Blethyn says.

“I’ve got a pretty great insight across all the different parts of our industry. What I didn’t have was the technology side, and that’s what really excited me about the NextGen opportunity.

“I just see this awesome opportunity with the way that technology is going to disrupt and change a lot of industries. There’s some exciting things that are going to happen for our industry, and I wanted to learn as much as I possibly could about it.”

With her broad view of the finance industry, Blethyn says she has a different insight into how NextGen.Net can meet the needs of brokers and borrowers and ensure that brokers remain the channel of choice for the consumer.

So, what has impressed Blethyn about NextGen.Net? “The biggest insight for me has been getting a full picture of the work that goes on behind the scenes,” says Blethyn. “The work that we do with lenders is 24/7, and the amount of time and energy we RENEE BLETHYN

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invest with our lender partners helps us find efficiencies that are going to be of benefit to both the broker and the borrower.”

Blethyn is also inspired by NextGen.Net’s intelligence – its data and insights – and investment in future technologies.

“Open banking is fast approaching, and the investment NextGen.Net has made to make sure we’re at the forefront of that to help support brokers, aggregators and lenders is really exciting. I’ve also been so impressed by the people at NextGen.Net and the work culture.”

NextGen.Net’s customers, both lenders and aggregators, gain valuable insights from its Industry Benchmark Reporting service into loan activity each month, including their own performance and how it compares to the market.

“What our report does is establish a benchmark point of view to help the broker group understand where their network is performing to market trends,” says Blethyn.

“Broker groups can also have visibility on how different lenders are performing, which helps them identify where the opportunities

“Our report establishes a benchmark point of view to help the broker group understand where their network is performing to market trends” This includes providing wellness leave for employees to help them “survive and thrive” during the challenging COVID lockdowns.

“The culture and the values of the organisation are outstanding.”

Industry Benchmark Reporting For the last few years NextGen.Net has been working on building market data and industry insights.

More than 97% of all mortgage brokers use its ApplyOnline platform for electronic lodgement, and ApplyOnline processes seven in 10 Australian mortgages.

“The ApplyOnline platform processes over a million applications each year – an enormous amount of data which allows us to see the trends of what’s happening in the market,” says Blethyn.

are to work collaboratively so we can all hopefully find some shared wins that deliver a better broker and borrower experience.”

Data insights While benchmark reporting is shared with aggregators and lenders but not brokers, it does benefit them, says Blethyn. “It helps aggregator groups have a really informed conversation with their lender partners when it comes to performance with turnaround times.”

The service provides information on lenders’ investments in technology to improve the loan process for brokers.

“It also gives a great insight into those lenders that have chosen to enhance their process by taking up those technologies, for example

eSign or the Document Verification Service or the Combined Industry Compliance tab.”

Blethyn says brokers who use lenders’ tech enhancements see an improved ‘time to yes’ performance.

“The data gives a whole view of all applications, so you can have a look at application flows across all of the different segments, different regions and LVR bands. That’s a huge amount of data, and, in terms of the insights, it depends on what the broker group or the lender would actually be looking for that’s relevant to their specific business.”

The information includes data on applications (owner-occupiers, investments, refinances, the self-employed, etc.) and lender performance (time to yes, time to conditional, time to unconditional), as well as key application milestones through to settlement.

“For brokers, it’s going to help improve that experience that the broker has for their client with specific lenders,” Blethyn says.

“From a market perspective, the value that it adds for a broker group is it gives them a really good insight as to how they’re trending against market trends so that they can support their brokers. It helps a broker group manage the needs of their brokers in however they want to drive and grow their businesses.”

The Industry Benchmark Reporting service is available to all of NextGen.Net’s aggregators and broker groups.

“Since I started in June, I’ve been in the process of engaging with our broker group partners to make sure they’ve got access to the reporting and have had the training to extract the information that’s really important to them.

“We’ve had really positive

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Renee Blethyn, head of broker partnerships, NextGen.Net

feedback so far, because it just gives another data source for those broker groups to have a visibility of the whole industry and how they’re performing.”

Enhancements to reporting Blethyn says a recent change was the introduction of embedded reporting, providing information in a live format for broker groups.

“We update the information every 24 hours, and that enables broker groups to be able to see live what’s actually happening in their network.

“We’re always continuously looking to improve the reporting and the information that is important to broker groups, so we work collaboratively to make sure we’re delivering more value.”

The most exciting change to the service involves open banking.

“NextGen.Net acquired Frollo last year because we could see the opportunity that open banking and CDR [the consumer data right] was going to provide to enhance the loan process,” Blethyn says.

NextGen.Net’s intention is to use the power of open banking to inform the loan application process

and empower brokers’ holistic relationship with their clients.

Blethyn hopes it will eventually eliminate the requirements to provide supporting documents, making life so much easier for brokers and borrowers.

everyone in the value chain, being the borrower, broker and lender.”

Challenges facing brokers “Turnaround times are the biggest challenge for brokers to manage at the moment, including

“Open banking’s going to provide enormous benefits to everyone in the value chain, being the borrower, broker and lender” “We can see how open banking can be leveraged to support the broker when they guide and educate their clients to get financially fit for the finance they need.

“And it’s not just for the loan application process. Open banking is going to really empower the broker to be able to manage and support their clients early, and ensure they stay as the channel of choice for borrowers in the long term.

“So it’s pretty exciting. It’s going to provide enormous benefits to

client expectations around that,” Blethyn says.

A range of factors affect turnaround times, including specific lender processes, the variance across lender policies and processes, and the constant changes that brokers need to keep up with, she adds.

“What we also hear is that it’s also the complexity of borrower situations which impact that, so it could be non-standard employment or complex investment structures.”

Given how quickly credit

policies and loan products can change, Blethyn says brokers need to be agile and have exceptional communication skills to manage this complex landscape and ensure their clients are matched with the right lenders.

Changing technology There have been a number of changes to the broker process, some of which are the result of COVID-19, Blethyn says. Brokers have had to quickly adopt new digital tools and change the way they interact with clients.

“We actually had some of the technology there waiting, and that was one of the positives that came out of last year: the take-up of some of these digital ways to make that loan process smoother.”

The tech tools required to calculate living expenses are important to brokers, especially with the amount of information they need to collect up front “to get a picture of the borrower and a feel for who might be the right lender”.

Blethyn says there are wins for brokers who work with lenders that have the best technology, because they have the best ‘time to yes’. AB www.brokernews.com.au

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ROUNDTABLE

SUPPORT VITAL TO BUILDING SUCCESSFUL BROKERAGES Setting up your own brokerage can be a daunting challenge, but AFG brokers know they have the backing of a supportive network. AFG has released a new e-book guide for brokers on starting a business. Here, four brokers who feature in the e-book discuss their career journeys with AFG’s Chris Slater and Them Lam

What was the trigger that made you want to start your own mortgage broking business?

Q

Joshua De Buelle, FiNEXT: I went to one of AFG’s conferences. Back then I was an employee of another firm, and I remember standing around talking to all the other guys that were there, and they were all business owners. I was talking to my wife, and I said: you know the one thing I don’t have that all these guys have is that they own their own business; they’ve got control over their business, their direction, their trailbook as well. That was back in 2016, and I just came away from that going no, I want this.

So I started having discussions with the people I was in business with then. It took about two years to go through the process of buying them out and taking over the business and rebranding. That would have been the trigger – respectfully, a lot of those in the room would have been twice my age, and I said if I want to be there one day, I’ve got to start that journey now.

Nathan Aird, Universal Mortgage Experts: It’s definitely control, wanting to be able to do my own thing. I was subcontracting within a business. The business wasn’t running in the direction I wanted it to run. I had this image, I had this brand, I knew what I wanted.

I was the one working on the brand for the business, with no support from the business owner. I was just getting no traction with what I wanted, so you’ve just got to rip 16

the band-aid off and go out on your own. That was my trigger.

all the admin stuff. It’s a lot more flexible to suit my lifestyle.

Sarah Zhou, Beyond Financial: I was working as a broker for an accounting firm, building a book.

Twelve months ago, I told them that I was planning a family and I didn’t feel the business supported me at all. They wouldn’t pay any mat leave; they wouldn’t pay me any trails for the book that I’d written. They said, if you’re off,

Grant Arbuckle, GA Finance Solutions: I didn’t have any finance backing behind me; I had my degree, diploma and my cert. I came from hospitality in corporate. I enjoyed what I was doing, but I got to a point where helping corporates hit their KPIs wasn’t what I wanted any more; I wanted to start helping people

“There’s good opportunities for females that want a role in a business that can fit in with their lifestyle and give them different challenges” Chris Slater, head of sales and distribution, AFG that’s it, no money, no support.

So that was the biggest trigger to go ‘I want to build something for myself ’; and also, coming back from mat leave, there was no support there. It’s really hard to balance childcare or who’s looking after the baby – do I have to end up doing nine-to-five hours? So it was six months of planning – to go, alright, the only other option financially is to start my own business, forgo what I’ve built the last couple of years. It’s building something that’s for me, but also I can work the hours that I want to work. I plug in the hours when the baby’s asleep for two or four hours a day, and then at night I can do

more widely. At this point, I didn’t really know what mortgage brokers essentially do, so I did as much research as I could before starting as an employee with a mortgage broking company. When I started, I didn’t like how they did things, so I lasted there about six weeks before I flipped it on its head and said, ‘I’m going to do this my way’.

I’m going to give this a crack in the best way that I can, to bring in what I know around corporate client management and processes.

One of the biggest triggers for me is doing things differently, in ways that I want, all of which ensures greater satisfaction when achieving the end result.

Them Lam, AFG: That’s the common theme – being the master of your own destiny and choosing a career path for yourself that suits your lifestyle. Whilst it’s a difficult job being a mortgage broker and a business owner, it’s very rewarding for the right type of person. It’s not for everyone.

Chris Slater, AFG: I’ve just always admired how brave our entrepreneurs are. Josh is basically working for someone else and says, I’ve got to create my own destiny.

Sarah’s story is very similar; they’re very brave stories. That’s what I love about brokers the most; I just love how brave they are to get out right at the start and go and do that. Sarah’s story’s the one that we’ve been trying to get out into the marketplace – there’s good opportunities for females that want a role in a business that can fit in with their lifestyle and give them different challenges at all different stages.

Q

How did you build out your business plan?

Sarah Zhou: When I started working two years ago with the accounting firm, I wrote a business plan for them. I wrote a 10-page business plan which included where all your leads come from, what each month would look like in terms of numbers and costs and cash flow projections. When I decided to do my own business, I adapted that. I was quite realistic about it all – how many hours can I contribute to the business

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versus a balanced lifestyle and looking after the baby. Not setting too high an expectation for the first couple of years and understanding that it is a gradual build, because if you have a huge goal and you’re not meeting it, it does become a stress. Entrepreneurs are all very hard on themselves about meeting targets and goals. I prepared a huge list of where the leads are going to come from; how do I feed my business, what are the avenues, what are all the networks – clearly written out and planned in a timely manner. There are some days when the whole world seems like earthquakes, pandemics and protests, and you think, did I even make these calls this week? But I think if there’s an overall picture of where you’re heading and there’s progress, then that’s OK. Nathan Aird: My plan probably wasn’t as well thought out as some of these people’s here. I like the baby theme – I had a seven-month-old when I set up my own business as well. It was also the back end of the

into play. Whether I was doing a million [in lending] a month or five million a month, making sure that I had the same process and principles in place would ensure the remainder of my goals would start to come to fruition.

Joshua De Buelle: When I started as a broker, I had no plan. I was only 22. I saw a mate doing it, and I thought, this looks great, I’ll give it a crack. I’m good with people, good with numbers. Starting my own business, I had to be very detailed.

I went to AFG to fund the purchase of the trailbook, and they wanted me to give them a 16-page blueprint business plan, white paper, spreadsheet, the works. They said, we’re going to give you a million dollars plus, so we need to see what you’re going to do with it. I was a broker for 10 years before I took that leap. Cash flow wasn’t a major issue; I was able to buy my book, but I also had a load of debt that was about to start. I just backed myself – I knew all I’d got to do was continue what I’d been doing for the last few

“There’s times when I go, this is a really tricky situation, what do I do? ... Just be open and honest about when you need help” Sarah Zhou, finance consultant, Beyond Financial GFC, and I was broke, and I knew that I could do better than what we were doing. So, when I took the plunge to set up my first office on the Central Coast, we were literally busted up. My wife wasn't working, we’d had our first baby, and I had a ton of debt. I just backed myself – it wasn’t with a plan. Most of the things I’ve done have just been through hard work. I just knew I could do it, so I did it.

Grant Arbuckle: One of the biggest things I had to focus on was cash flow. I didn't have a detailed business plan. The big thing I knew was that cash flow was going to be my make or break. So in my first 18 months I would regularly change my business plan to adapt to where the business was going.

As we continue to scale, processes are the most important aspect of our business, so nail the processes and everything else starts to come

years, because I had been doing well. What AFG forced me to do with that business plan was actually document it. Every day I got up, and I said, just follow the plan and go and do it. It then becomes a habit.

Them Lam: It’s so important to have that discipline. Every business is unique, but there’s common problems to solve – the customer, the process, profitability and cash flow. When we’re talking to our broker groups, to be able to share that knowledge collaboratively as an industry, we grow. It’s pleasing to see.

How important are support networks to your business success? What does that network look like?

Q

Joshua De Buelle: Within my business plan, AFG wanted to know who was in my network – did I have

a financial adviser, did I have an accountant, did I have business partners, mentors. I was honest; I said, look, I don’t know it all, but I’ve got the right people around me that can help. I’m always a big believer in never trying to figure everything out yourself, because there are people out there who’ve been there, done it before better than me. You’ve got to have the people doing the right jobs, and I think if you don’t have that either within your business or externally, it’s a lot harder road. The mistakes that we’re going to make everyone’s made before – you can learn from that, so being honest and sharing your vulnerabilities with people allows other people to share what they’ve gone through.

Chris Slater: I think you guys do that for your customers. They’re coming to you because they want someone to give them confidence that what they’re about to do, others have done, and you can help them do it. You’re surrounding yourself with other brokers or mentors that have been there, and they can give you confidence that you can do that too. That’s what you do for your clients every day – you give people confidence, and they give you confidence that you can achieve what you want to achieve.

Nathan Aird: The people I’ve met in this industry – the brokers, the staff and the support that I’ve got through my journey – have been phenomenal. I wouldn’t have taken a lot of the chances I have or backed myself without knowing that I spent time with those that have done it before me, made the same mistakes, had the same triumphs and were willing to share.

People talk about competition in our industry; I don’t see it. The most successful people that I’ve ever met or been involved with at AFG, the most successful share, and that’s what I love: share what you do, your process, your triumphs, your challenges. That’s my network – other brokers. From there it’s family. My wife’s a big supporter; it’s amazing what she does to pump me up and challenge me.

Grant Arbuckle: When I started broking I just picked an aggregator, and at about the four-to-six-month mark I thought, this isn’t going to work for me. So I knew I had to work out where I was going, and

ROUNDTABLE PARTICIPANTS

Chris Slater Head of sales and distribution, AFG (Brisbane)

Them Lam National manager – strategic partners and recruitment, AFG (Melbourne)

Sarah Zhou Finance consultant, Beyond Financial (Melbourne)

Joshua De Buelle Principal broker, FiNEXT (Perth)

Grant Arbuckle Finance and lending specialist, GA Finance Solutions (Melbourne)

Nathan Aird Director, Universal Mortgage Experts (Central Coast)

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I read of the prospects of being an AFG broker. To AFG’s credit and the people that I met, I probably wouldn’t be where I am now without their support. Yet further to AFG is mentor support. I have mentors that are both in industry and out of industry. I personally believe there’s merit in having people that don’t understand exactly what your industry does but understand how a business should run. Quite directly, I’m seeking a new mentor now who can take me to the next stage in my business career. As I tell my team now, you’re only as good as those who are around you.

Chris Slater: We had Ariarne Titmus and [coach] Dean Boxall on our webinar – the trust between them, that he could actually tell her all the stuff that people wouldn’t want to hear. Being able to have a mentor to able to say, ‘hey Chris, mate, you need to change the way you’re thinking; your thinking’s not right’, and for you able to hear that and change it. What makes successful people successful is that they’re very open to a mentor giving them some hard truths.

Sarah Zhou: There’s a lot of times when running your own business you just go, I know what to do, and this is how I need to get there, but it’s quite assuring when you know you can ask for help. There’s times when I go, this is a really tricky situation, what do I do – and ask for that help. I’ve got my partner who’s not in the finance industry, and sometimes I chat through situations, and he says, what about this, and I go, I’ve never thought of that. My support network is friends, family, work colleagues from the 10 years I worked in banks. Just be open and honest about when you need help, and give that back when they need a hand.

How do you balance your Q roles as a broker and business owner? How have you made that transition?

Nathan Aird: I’ve always looked at myself as a broker, not a business owner, but as you build your team you realise you become a business owner. The biggest challenge was letting go, because I’m far too OC, far too controlling, and generally try to do everything, but you can’t – it’s impossible. The transition to running a team of people was letting go, letting those that are 18

employed for a certain segment of my business do their job. Building trust within a team of people, moulding them to keep to my high standards – it’s still a challenge.

I’ve now got a team of four people that are doing an amazing job, but at the same time I’ve still got to grow them in their positions.

Joshua De Buelle: I consider myself a broker first. We’ve got a team of 10 now. I always think of a footy club or a team. Call me the captain, but most captains are out there playing in the field.

Transitioning to being the coach off the field and overviewing the game is something I started eight months ago. At the beginning of the year I employed a young guy, Jake, who I trained up to get his diploma. I’ve brought him in as my succession plan. The plan is to train him up as a shadow broker, and then eventually he’s going to take over my database and the day-to-day of being a broker. Then we’ll get another guy starting next year. I’m very obsessive, so the only way to let go of things is just literally to do it, but having the trust and the processes comes first. We’ve got three support staff and another five

all new and fresh at the moment, which is nice.

Grant Arbuckle: I’ve got a couple of team members, and I’m always looking to grow. I’m certainly a broker first and foremost and am always aspiring to become a successful business owner.

My biggest challenge is putting the right people in the right roles to help us all move forward.

As I’m well and truly in the early stages of building my business, I still see myself as a day-to-day broker with the added arms of being a business owner fulfilling tasks such as cash flows and budgets. For my first employee, I was a bit cheeky. I took the risk out of recruiting, and I made an offer to my previous office coordinator from when I was in the corporate world, because I trusted her – she knew how I worked back to front. At this time, I couldn’t keep up with admin. My skill set is being on the phone. I know my place, and I’m comfortable with that. Frankly, I’m 60 years old in my technology skills, so that’s why I pay for systems and hire staff better than me to fill these gaps. Our second team member I brought on

“AFG forced me to document my business plan. Every day I said, just follow the business plan and go and do it. It then becomes a habit” Joshua De Buelle, principal broker, FiNEXT brokers. My plan at the end of next year will be to completely take my hands off the wheel from the dayto-day broking. My kids are now four and one and a half, so my next decade is about being a dad.

Sarah Zhou: I love broking, talking to customers and helping them achieve their goals. I’ve only just started my business seven months ago, so I can’t really see myself stopping that part at all yet. From the business owner side, there was just so much more to have to know – the paperwork side, the admin side. I haven’t done it for too long, but it balances out the broking stuff. To go, right, I’ve worked on you, the customer, helped you with your goals; now I need to focus on my tasks and on helping me. It’s

was to better support and continue with our promise of being customer focused. Both of my two team members were outside of industry.

Nathan Aird: Every single employee I’ve ever employed has come through a training company.

I’ve always hired trainees straight out of school, and they always stay.

Ryan, my wingman, has been with me since he was 18. I knew I needed to grow an administration team to do what I needed to do. I always train them to be mini-me’s. I’ve never hired a broker.

Chris Slater: I’ve spent the last decade hiring people, and I find you get a much better result if you know them. Trying to pick a candidate out of 15 résumés that got emailed

to you is very, very difficult versus knowing someone, trusting someone and picking the right characteristics.

If you’ve never hired people before, you have to learn it. We try to share our experience, which is to talk through your process, why you’re hiring, who you’re hiring, what characteristics you’re looking for.

What’s in it for them?

Them Lam: The employee value proposition is so important.

They spend a third of their lives with you. To attract the right talent into your business is about building that culture that makes people want to come and work with you side by side.

What processes and systems have been most important to your business success when starting out?

Q

Joshua De Buelle: Administration is not my skill set. Just having your team line up correct. It flows within the five of us – I implement the strategy, and then we’ve got an analyst who does all the research, all the processing and qualification of the client. I’ve got Jake who goes out and does all the appointments, and we’ve got a pre-settlement officer and a post-settlement officer that processes the file. Breaking that up to the five different stages just allowed us to do a lot more volume with a lot less work, because you had each specialist doing what they were really good at. The process is identifying what people want to do, getting them to do it well, and being vulnerable enough to understand when you’re not good at it and letting someone else take that over for you.

Sarah Zhou: It’s about time frames.

Being a new business, to go out there and to tell my network, hey, you should work with me. Why? My selling point to my referrers and my network is my time frames.

I absolutely will get back to you with a response within 12 hours.

That’s my promise. I will lodge your application within a certain time.

So that they have the confidence if they refer a client, and also when a client comes to me, they know exactly what to expect. It’s an assurance to my referrers, to my clients, that they can rely on that. As a business starting up, for me that’s important. It’s something to distinguish myself as a new business. Every one of

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Australian Broker roundtable (clockwise from top left): Chris Slater, AFG (Brisbane); Joshua De Buelle, FiNEXT (Perth); Them Lam, AFG (Melbourne); Grant Arbuckle, GA Finance Solutions (Melbourne); Sarah Zhou, Beyond Financial (Melbourne); and Nathan Aird, Universal Mortgage Experts (Central Coast)

my referrers has other brokers on their panels, so this is where I can go, this is what I’ll stick to, this is the process I’m going to work to, and I’m bringing you on board with it, and that’s why you should work with me.

Nathan Aird: I’ve got people that are responsible for certain segments of my business – they know what their job is, and they have a certain part of the process that they take care of, and I know that too. So I find myself to be a traffic director with the information that comes to me first, and whose job it is to

“The people I’ve met in this industry – the brokers, the staff and the support that I’ve got through my journey – have been phenomenal” Nathan Aird, director, Universal Mortgage Experts do that. Every person has their job they were employed and trained for. What works so well for our 300 customers every year is that every person gets the exact same service, because the same person

does the same job and they do it very well because that’s what they were trained to do.

Grant Arbuckle: There’s probably two prongs. There are the business

processes which I think we’ve all nailed – staffing and allocating who does what; and our client processes, which we are always adapting. Certainly in my first year, before I had any staff or frankly knew what I was doing, the biggest thing was IT. What creates a positive impact for my clients – systems like bankstatements.com or DocuSign. Just about everything we do is digital, and we know that these systems impact the client’s experience positively. It all means we can get things out quickly and effectively, because we’ve got the systems in place to do so. AB www.brokernews.com.au

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DIVERSIFICATION

EXPAND AND DELIVER: LENDERS URGE BROKERS TO BRANCH OUT The residential property market is booming, but as the nation begins to emerge from pandemic lockdowns, the desire for commercial finance is growing. There’s no better time for brokers to diversify, say Thinktank and La Trobe Financial are plenty of reasons for mortgage brokers to branch out and diversify their product offering to clients.

It’s not only about assisting the self-employed and small businesses to access funding, it’s also about strengthening relationships with existing clients, attracting new clients and ultimately creating a more robust, resilient business.

Australian Broker caught up with Peter Vala, general manager partnerships and distribution at Thinktank, and La Trobe Financial’s vice president and chief lending officer, Cory Bannister, to find out more.

“For brokers that are seeing significant levels of residential lending, it’s the perfect time to diversify so your clients know you can arrange other finance solutions whenever the future need arises,” Vala says. “Recurring business in all forms is a good problem to have.

“Diversification also helps reduce the risk of reliance on one predominant source of income, shielding a broker’s cash flow through periods of instability.”

This is critical given the unpredictable nature of markets, Vala says, particularly the property sector, which is likely to continue experiencing peaks and troughs.

At La Trobe Financial, Bannister says, “we strongly believe diversification to be one of the most important fundamentals for any investment. Arguably, a finance broking business is just that, an investment. So a strategy to diversify should be seriously considered to bullet-proof any broker’s business”.

He cautions brokers not to THERE

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delay a diversification strategy, “particularly now with so much regulatory uncertainty in relation to the potential reintroduction of macroprudential limits”.

“These limits will impact the residential sector specifically, along with the constantly changing lender appetite currently occurring.

The time to plan for the future is now,” says Bannister.

Vala says diversification allows brokers to offer a broader choice

Mid Doc loans up to $3m, through to 65% for Quick Doc loans requiring only a self-certification of income.

“We also offer a Mid Doc residential product up to 80%, designed specifically for everyday self-employed customers,” he says.

Bannister says La Trobe Financial offers one of the broadest product suites in the market, with products covering residential, commercial, SMSF, development, rural, aged care

“To ensure customers keep coming back, brokers need to make sure they can cater for the changing needs of their customers” Cory Bannister, vice president, chief lending officer, La Trobe Financial of financial products and attract a wider range of clients.

“Importantly, it also helps to develop deeper relationships with existing clients by supporting most, if not all, of their financial needs.”

Diversified lending options open up opportunities, says Vala. “For example, the purchase of a commercial property may be facilitated by a full-doc loan, an alternative income verification product, or under an SMSF structure.”

Vala says Thinktank’s commercial lending products are simple, flexible and highly appealing to SMEs as they are not dissimilar to normal residential loans. Its commercial LVRs range from 75% for Full and

and non-resident.

“We are well placed to assist brokers with their diversification strategy, and we have purposely engineered our products and processes to ensure all products look and feel the same – meaning that if a broker can write a residential loan, they can write a commercial loan just as easily,” says Bannister.

It’s clear the future growth area for brokers in the next 12 months will be SMEs and the self-employed.

“SMEs are the engine room of Australia’s economy,” Bannister says.

“Small business accounts for about 35% of Australia’s GDP and employs around 44% of our workforce.

The events of the past 18 months mean that the path to finance is

as uncertain and complex as it has ever been, and we believe that brokers are best placed to help them navigate that path.”

Some SMEs are playing offence, while others play defence, says Bannister.

On the offence side some SMEs have thrived during COVID through organic growth or a slight shift in their business model uncovering opportunity.

“These business owners are looking for capital to grow, which presents a great opportunity for brokers to help their clients build their business.”

At the same time, Bannister says, some businesses are playing defence and having to restructure their financial positions to help them get through a very challenging period.

“This also presents a great opportunity for brokers to demonstrate their core value proposition and create a client for life, with customers who remember who helped them in their time of need.”

Vala says the trend following every major lockdown has been for businesses to increase working capital requirements for various purposes – from restocking goods for sale and employing staff, through to relocating business operations, and commercial property acquisitions.

“To strengthen their position, many self-employed and SMEs have looked to restructure their existing commercial finance facilities to better terms, in addition to freeing cash for the purposes above,” says Vala.

“This is where Thinktank

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Peter Vala, general manager partnerships and distribution, Thinktank

can be a strong ally for brokers, restructuring a client’s loan to remove onerous reporting covenants, including property revaluations and annual reviews.

“We can also reset the loan term out to 30 years, significantly reducing monthly repayments to improve overall cash flow and help weather any future business and financial storms.”

Vala says diversification both strengthens and protects a broker’s loan book.

“One of the best places to start to grow a broker’s business is with existing residential customers, as they are likely to turn to a trusted broker first when seeking out other forms of finance and lending.”

There are plenty of ways brokers can generate opportunities within an existing customer base, says Vala.

He advises brokers to start by providing regular communication updates and relevant content, including reminders that you can help beyond residential requirements.

“Conducting an annual financial health check and product suitability comparison also allows you to determine future needs in areas such as asset finance, cash flow management and premises relocations.”

Bannister says La Trobe Financial cannot stress enough how important diversification is for brokers looking to build a “flywheel” for their business.

“Repeat customers are the perpetual motion that leading brokerages covet,” he says. “So to ensure customers keep coming

back time and again, brokers need to make sure they can cater for the changing needs of their customers over their borrowing life cycle.”

Bannister says if a broker chooses to specialise in one product line only, then they must understand they are effectively prompting their clients to talk to another finance broker at some stage for the finance requirements they don’t offer.

Cory Bannister, vice president, chief lending officer, La Trobe Financial

solutions in new areas such as asset and commercial finance, as well as deepen and shore up existing relationships with those wishing to invest in commercial property, reframe their wealth management objectives through an SMSF, or restructure their lending.”

Bannister says now is absolutely the right time for finance brokers to invest in their future

“Diversification helps reduce the risk of reliance on one predominant source of income, shielding a broker’s cash flow through periods of instability” Peter Vala, general manager partnerships and distribution, Thinktank “The risk being, if the next broker they speak to helps them – and can also do what the incumbent broker does – then there is a strong possibility the client will be moving onto the one-stop shop, chasing convenience,” he says.

So, should brokers focus on non-conforming or specialist loans first before diversifying into asset and commercial finance?

Vala says while non-conforming residential loans will widen the opportunity to assist more customers, this won’t protect the broker from a correction in the residential market.

“Diversification can do both – grow the client base by offering

through diversification if they haven’t already done so.

“We would encourage them to branch into all of these areas over time to become a fully diversified business,” he says.

“However, we would also caution against ‘trying to boil the ocean’; instead we would recommend brokers pick an area that they are most interested in, or where they feel it could add the most benefit to their business in the immediate term.

“Pursue that first until it is successfully integrated, then move to the next piece. This ‘slow and steady’ approach is likely to ensure the diversification strategy is executed successfully

and with less risk of error.”

Both La Trobe Financial and Thinktank help brokers gain the skills they need to diversify.

Vala says Thinktank’s team of highly experienced relationship managers assist and support the workshopping and deal preparation of any type of commercial, SMSF or residential property transaction.

“We’re with the broker every step of the way, both in helping expand their relationships and network in commercial lending, through to assisting in structuring a deal to suit their client’s needs.”

Thinktank also runs regular training and accreditation sessions for commercial and SMSF lending, either virtual or face-to-face.

“Our education also extends to other areas such as prospecting and getting the best out of existing client and adjacent professional networks,” Vala says.

Bannister says La Trobe Financial has removed the barriers to entry for many of its specialised products, including commercial, SMSF and development finance, all of which often require additional “specific” accreditation and training with each lender.

“We understand these accreditation barriers are a major reason many brokers fail to execute their diversification strategy,” he says. “And finally, we offer customised training and education through our credit-skilled senior manager client partnerships and offer direct access to the decision-makers in credit so brokers feel supported right through the process.” AB www.brokernews.com.au

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FE AT URES

OPINION

BE EXCEPTIONAL: BOOST YOUR VALUE TO CUSTOMERS In his latest book, Someone Has To Be the Most Expensive, Why Not Make it You?, Andrew Griffiths, bestselling author of 14 books sold in more than 65 countries, argues that small businesses should not undervalue their worth

relates to terrible communication.

People have to constantly chase their advisers for updates and information.

They get frustrated, they get grumpy, and they are unlikely to speak favourably or refer the business. The answer is to become incredible at communicating. In fact, overcommunicate where you can.

Look for every opportunity to become the absolute best at communicating.

Out-communicate your competitors.

This simple strategy will elevate you miles ahead of your poor-communicating competitors, and your happy customers will become raving fans.

all want to get paid more for what we do. Why wouldn’t we?

And right now the world is changing.

We understand that choosing the cheapest option is generally one that leaves us wanting. Inferior products and inferior services lead to frustration and angst.

Never before has there been a greater opportunity to really charge what you’re worth and, ideally, be the most expensive.

But you can’t be the most expensive if you don’t deliver. It just doesn’t work.

Our goal when it comes to getting paid more than our competitors is to address the key areas that increase our value to customers. Below I’ve outlined five of the most effective strategies that, if embraced, will certainly give you the opportunity to charge more than your competitors.

WE

3. Create extraordinary experiences One of the greatest ways you can increase your value, and charge more for what you do, is to make the shift from doing transactions to creating experiences.

1. Avoid making the single most common marketing mistake most businesses are guilty of Businesses today are really good at telling potential customers how they are exactly the same as their competitors, as opposed to showing how they are different. Every accountant’s website is basically the same; every financial planner’s website is basically the same; every hotel website is basically the same. And to make matters worse, these businesses state the obvious on their sites. Consumers are smarter, well informed and well educated. They know that lawyers do law, accountants do tax, and mortgage brokers do loans. We need to learn to tell potential customers less of the obvious and more of the things that actually make us different – and that means tell more stories, share more of why we do what we do, how we do things differently, and what makes us unique, not what makes us the same.

2. Become an exceptional communicator One of the biggest complaints customers have about professional service providers 22

referrals. Often we feel a bit needy when we ask our happy clients to say great things about us. But if you engage them well, explain that you are really proud of what you do and that you want to grow your business and to do that you need more wonderful clients like them, you’re heading on the right path.

5. Build a reputation for being more than a mortgage broker When it comes to deciding who we want to do business with, our decision-making processes have changed a lot in the last 10 years. Given the choice between two businesses, where one offers a service and that’s it, and another offers the same service but also plays a proactive role in the community, shares more of its philosophy of doing business, takes greater care of its people, shines the light

If you can make the customer experience extraordinary, in as many ways as possible, you can charge more than your competitors We live in a world that craves and appreciates experiences – and we’re prepared to pay for them. If you can make the entire customer experience extraordinary, in as many ways as possible, you can definitely charge more than your competitors. The key is to focus on the little things, not just the big things.

Andrew Griffiths Bestselling small business author

4. Encourage others to rave about you and recommend you We think that if we do a great job people will automatically refer our business to others. A small percentage will, because that’s their nature, but from my experience it takes a more proactive approach. We need to get comfortable about asking people for testimonials and

on their customers and is generally ‘more’, it’s clear which business customers will use. These businesses can charge more because they offer more value.

In reality, the list of what we can do to charge more than our competitors is long. It all comes back to the fact that we live in a values-driven world, not a cost-driven world. I’ve seen this shift happening around the world. An ever-increasing number of people are prepared to pay for value; their biggest challenge is finding businesses that can deliver. Those businesses that really get this and look for ways to keep increasing the value they bring to their customers are the ones that can charge more. It’s as simple and as complicated as that. AB

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Redefining commercial finance

Thinktank has a proven track record of providing straight forward commercial property finance solutions, with no surprises • Support your self-employed and investor clients with: • ‘Set and forget’ loan terms from 6 months to 30 years • Purchase, refinance and equity release ($100K – $3M) • SMSF finance options • National Relationship Manager support • The deepest commercial property experience in the market

Into people. Not just transactions.

1300 781 043 | deal@thinktank.net.au

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SPECIAL REPORT

2021

BDMs Australian Broker celebrates the nation’s best business development managers as chosen by brokers for their excellent customer service, responsiveness, communication and product knowledge 24

CONTENTS

PAGE

Feature article .......................................................... 25 Winners’ profiles ...................................................... 28 5-Star BDMs ............................................................ 29

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BROKERS’ BEST BUSINESS PARTNERS REWARDED development managers play a crucial role in the everyday lives of mortgage and finance brokers.

Not only do BDMs – sometimes also referred to as relationship managers or business relationship managers – educate brokers about lenders’ products, policies and systems, but they also help navigate complex loan scenarios, providing a vital second opinion BUSINESS

of the relationship. Brokers are more likely to continue to seek out finance solutions for their clients from lenders whose BDMs go out of their way to assist them and help see a loan deal through to fruition.

BDMs can also provide a great sounding board for brokers wanting to establish or boost referral networks and improve their sales skills to bring in more business.

“Pepper Money’s continued growth and success is wholly dependent on our ability to recruit, train and retain quality BDMs” Barry Saoud, general manager mortgages and commercial lending, Pepper Money before lodgement. This can ultimately speed up turnaround times and create a smoother path to settlement.

A great BDM will always be willing to help brokers who need advice and support, because they understand the value proposition

Aggregator and broker network BDMs play a slightly different role to lender BDMs. They provide brokers with expert one-on-one support and guidance, helping boost their skills and career progression through training and professional development sessions.

METHODOLOGY Australian Broker carried out extensive research to determine the top business development managers in Australia.

Researchers contacted 300 brokers across the nation and through in-depth phone interviews encouraged brokers to identify the top-performing BDMs. Brokers were asked to name the BDMs who gave them the best support based on the following four criteria: customer service, responsiveness, communication and product knowledge.

From more than 400 nominations, the list was whittled down to 100 BDMs, with 24 individuals who were rated excellent across all categories receiving 5-Star Awards. See the full list of winners on page 29.

24

Number of BDM winners

100+

Number of BDMs nominated

Aggregator BDMs can even help residential mortgage brokers diversify into the world of asset and commercial finance, reaching new clients and strengthening their relationships with current clients.

To find out who are the best BDMs in Australia in 2021,

400+

Number of nominations

Australian Broker asked brokers.

We approached hundreds of brokers across the country and invited them to nominate the best business development managers they had come across who were working for lenders and aggregators.

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SPECIAL REPORT

5-STAR AWARDS 2021: BDMs

WHAT’S MOST IMPORTANT TO BROKERS WHEN IT COMES TO BDMS

% of brokers who said this feature was most important Responsiveness

Communication

Customer service

Product knowledge

98.7%

93.7%

96.8%

85.4%

96.5%

84.9%

95.8%

69.9%

“Our BRMs specialise in distributing competitive lending products to our brokers and ensuring the process from scenario to settlement runs seamlessly” Hayden Cush, national sales manager, AFG Brokers ranked BDMs across four criteria – customer service, responsiveness, communication and product knowledge.

From more than 400 nominations a shortlist of 100 BDMs was compiled, and then 24 winners, who rated excellent across all

26

% of brokers who said this feature was very important

four categories, received 5-Star BDM Awards.

One of the 5-Star Award winners is Pepper Money BDM Pasquale Caia.

“On behalf of the Pepper Money team and the entire industry, I’d like to acknowledge Pasquale Caia and congratulate him on

being awarded the 5-Star BDM Award by Australian Broker,” says Pepper Money general manager mortgages and commercial lending Barry Saoud.

“Pepper Money’s continued growth and success is wholly dependent on our ability to recruit, train and retain quality BDMs. “Being part of the Pepper Money business for over eight years, Pasquale has consistently delivered at an outstanding level, and he lives the Pepper Money can-do and real values. It’s no surprise he has been recognised as one of the best BDMs in the country.”

AFG national sales manager Hayden Cush commends the performance of AFG BRM James Tran, who also won a 5-Star Award.

“It’s really no surprise that James

has received this award. He is well regarded in the business and has done a terrific job servicing AFG brokers. We are thrilled to have James flying the AFG Home and Commercial Loans flag,” Cush says.

“An enormous amount of dedication and hard work has gone into his achievement, so it’s great to see James acknowledged with this award.

“Our BRMs specialise in distributing competitive lending products to our brokers and ensuring the process from scenario to settlement runs seamlessly for all parties involved. More broadly, the AFG sales team are the lifeblood of the business and consider service to our members an absolute priority.”

Three BDMs at Bankwest – Jude Schofield, Grant Roden

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“Ours remains a people-first business, where support, confidence and ease, as demonstrated by our BDMs, make such a difference” Ian Rakhit, general manager third party banking, Bankwest and Tes Anderson – have won 5-Star Awards.

“Bankwest strives to be the best bank for brokers in the country, delivering brilliant experiences to both brokers and customers,” says Bankwest general manager third party banking Ian Rakhit.

“That’s why we’re committed to working with brokers – to listening and delivering what they need and want and being there when needed – and why these awards are so significant.

“Ours remains a people-first business, where support, confidence and ease, as demonstrated by BDMs such as Tes, Grant and Jude, make such a difference. Their recognition reflects the commitment all our BDMs strive to deliver to our brokers, and I’m tremendously proud of their efforts.”

Liberty BDM Matt Hall adds

a 5-Star Award to his impressive list of accolades in 2021. He is already national winner of the MFAA BDM – Lender and Support Service Provider award and an Australian Mortgage Awards Best Non-Bank BDM excellence awardee.

“Liberty is incredibly proud of Matt’s impressive achievement and his dedication to our business partners,” says John Mohnacheff, Liberty’s group sales manager.

“A true freethinker, Matt never shies away from a challenge and is always willing and ready to go the extra mile for our business partners.

“On behalf of the wider Liberty community, I’d like to personally congratulate Matt for his outstanding efforts and his unwavering dedication to the brokers he supports.

“As long-standing supporters of the broker channel, BDMs are at the heart of our business. The efforts of individuals like Matt allow us to help brokers provide flexible, tailored lending solutions so that together we can help more people to get financial.”

Adelaide Bank BDM Jess Stevens has also received a 5-Star BDM Award. Steve Larizza, the lender’s regional manager, northern, broker distribution, says Adelaide Bank is both proud of and excited by the amazing recognition Stevens has received.

“It was a pleasure to share this news to our wider Adelaide Bank family, showing just how devoted and committed Jess is to her work. Like Jess, Adelaide Bank BDMs play a significant role in supporting brokers to meet their customers’ needs, making the process simple, delivering clear and direct messaging, and being available when it counts.

“Over the years Jess has received

numerous compliments from her aggregators and brokers, which is a testament to herself and why there is no doubt she is held in the highest regard and worthy of this amazing recognition.”

Another 5-Star Award highlighted the success of Heritage Bank BDM Andrew Galloway.

“We’re extremely proud that Andrew has been recognised by brokers for his outstanding service,” says Stewart Saunders, head of broker experience at Heritage Bank.

“Andrew is an exceptional advocate for brokers, working in partnership to get positive outcomes for them and their clients.”

Saunders says Heritage Bank is on a journey to modernise its origination platforms to deliver a better and faster experience for brokers.

“Our fantastic BDM team goes above and beyond to support

“For a long time now, we have known our core group of BDMs are amongst the best in the industry, so it’s fantastic to see some of them recognised on this national stage by those that matter the most – their broker partners,” says RedZed national sales manager Adrian Fisher.

“We are very proud of our collective group, who are all regularly recognised for the value they consistently provide to our network. As RedZed continues to expand its distribution footprint, we are excited that more of the broker network will get to experience how our BDMs like Sally, Kristie amd Peter can make a big difference to their business.”

Fisher says BDMs are likely responsible for the first experience a broker has with a lender, so the quality of their service is extremely important, as the first impressions

“Heritage’s growth in the broker channel over the last 22 years is off the back of the hard work of our BDMs and the valuable broker relationships they have built” Stewart Saunders, head of broker experience, Heritage Bank brokers, helping out if things get off track. Heritage’s growth in the broker channel over the last 22 years is off the back of the hard work of our BDMs and the valuable broker relationships they have built.”

RedZed is proud of its 5-Star BDM winners, Peter Burkhart, Kristie Oldfield and Sally Carmichael.

they create are long lasting.

“RedZed has experienced incredible growth over the past two years as we expanded our distribution into aggregator relationships. Our BDMs have been pivotal during this time in engaging, training and nurturing these new relationships, culminating in significant volume increases.”

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SPECIAL REPORT

5-STAR AWARDS 2021: BDMs

PASQUALE CAIA

JAMES TRAN

Pepper Money

Australian Finance Group

P

asquale Caia is a BDM with the drive, hunger and dedication to educate brokers and support their clients in understanding what Pepper Money’s non-conforming solutions can offer them.

Caia started his career as a mobile banker at NAB in 2006, moved to a BDM role at Aussie Dreams Home Loans in 2010, and joined HSBC as premier relationship manager in 2011. In 2013, he stepped into his current role at Pepper Money.

For this highly motivated individual, being able to pivot his business and day-to-day schedule in a challenging business environment has been his biggest achievement over the past year – that and being able to help his wife homeschool their two beautiful boys.

Caia won the 2020 Better Business Award for Best Lender BDM (Non-Bank) and was recently nominated as a finalist for the award in 2021. He was also a finalist for the 2021 MFAA Best BDM – Lender and Support Service Provider awards for the second consecutive year.

Caia is determined to continue to leverage his industry experience to lead, educate and train people as well as help grow his peers’ and brokers’ businesses. He also wants to continue developing his skills and learn from the amazing people he works with at Pepper Money.

Pepper Money is a non-bank lender with businesses in Australia and New Zealand. The ASX-listed company provides a variety of home loan options, along with car loans, personal loans, loans for professional equipment, and commercial loans.

28

J

ames Tran joined Australian Finance Group as business relationship manager for AFG Home Loans in November 2018. He started his finance career at Commonwealth Bank in 2012, moved to NAB in 2014, then jumped over to Bankwest in 2016 when given his first opportunity to take on a BDM role.

Tran has posted the highest lodgement and settlement numbers at AFG for both FY20 and FY21. His recent achievements include winning AFG’s Business Relationship Manager of the Year award for FY21, as well as being recognised as its Most Valuable Player in FY20 for achieving the ranking of top salesperson in the company. Tran was also a finalist in the Best Lender BDM (Non-Bank) category at the 2021 Better Business Awards.

Moving forward, Tran said he would continue to support AFG brokers in growing their businesses and achieving success – whether in his role as BRM or, hopefully, in a managerial position at AFG Home Loans in the future. He aims to further build on the relationships he currently holds and become a leader in the third party channel.

AFG is one of Australia’s largest mortgage broking groups and leaders in providing financial solutions. Established in 1994, it now has over 3,050 members nationally and a combined residential and commercial loan book of more than $175bn.

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A

ANDREW GALLOWAY Heritage Bank

ndrew Galloway is a seasoned BDM with more than three decades of experience in the banking and finance industry.

Galloway worked in various sales and credit-related roles at Super Members Home Loans (now ME Bank), Citibank and Westpac before joining Heritage Bank in 1999, bringing with him valuable insights from both a process and customer-facing perspective. Galloway served in a number of leadership roles at Heritage before being appointed as BDM in the bank’s broker distribution team in 2006.

With Galloway on the team, Heritage has achieved record lending volumes while navigating the challenges of the COVID-19 pandemic in the past year. He has continued to offer a high level of service to the bank’s broker partners; acted in the capacity of state manager – broker distribution on a number of occasions; and exceeded sales budget expectations in a tough business environment.

Galloway also played a pivotal role in launching Heritage’s Commercial Broker pilot program, which has now been successfully rolled out as part of the bank’s broker proposition to selected aggregator partners. He believes brokers play an instrumental part in helping Heritage drive growth nationally and in delivering the bank’s people-first proposition to a wider market.

As part of this, he sees the importance of developing strong relationships with brokers and gaining an understanding from both the client and broker perspectives.

With his outstanding service approach and can-do attitude, Galloway has more recently taken on the responsibility of servicing Heritage’s broker partners in Western Australia with both AFG and Smartline, while maintaining his current relationships with these groups throughout southeast Queensland and northern NSW.

2021 Pasquale Caia Pepper Money Phone: 1800 737 737 Email: scenarios@pepper.com.au Website: www.pepper.com.au Andrew Galloway Heritage Bank Phone: 13 14 22 Email: brokerenquiries@heritage.com.au Website: brokers.heritage.com.au James Tran AFG Phone: (08) 9420 7888 Email: info@afgonline.com.au Website: www.afgonline.com.au

BDMs

Sally Hillman St. George Bank Josie Jones Macquarie Bank John Loukadelis Macquarie Bank Dayna Manser Bluestone Milenko Novakovic ING Kristie Oldfield RedZed Jason Patel Westpac

Tes Anderson Bankwest

Adam Pisani Westpac

Peter Burkhart RedZed

Daniel Puca NAB

Sally Carmichael RedZed

Grant Roden Bankwest

Patrick Clarkson FAST

Jude Schofield Bankwest

Romney Ferguson Macquarie Bank

James Shacallis Commonwealth Bank

Nick Ganis Macquarie Bank

Jess Stevens Adelaide Bank

Matt Hall Liberty

Cassandra Woodyard Connective Home Loans

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PEOPLE

Have an interesting deal?

Have a particularly difficult or interesting deal? Why not share it with us? Email:

antony.field@keymedia.com

BIG DEAL Andy Truong has nearly 15 years’ experience in banking and broking, and this year he switched aggregators to join nMB. He recently assisted a client whose existing lender couldn’t help when he needed to restructure his loans to keep his home THE FACTS

Client Male, aged 52

Loan size $481,000 at 55% LVR

Goal To pay out ex-partner in a matrimonial separation

Location Dandenong, Victoria

This client was in his early 50s and worked full-time as a blue-collar PAYG employee; he had been with the same empoyer for over 20 years. The client had an existing loan of $260,000 with a big four bank (that he had been with for many years) and had requested an increase to pay out an ex-partner.

The bank had declined.

When the client came to us, he was stressed and very concerned that he might have to sell his home if he could not find a lender to assist him.

Lenders being unwilling to assist existing borrowers is a common scenario we encounter. Putting myself in my client’s shoes, I fully understood how emotionally and mentally difficult it must have been for him, and the importance of finding a solution. We made it a priority to help him get out of this difficult situation so he could retain his home and work towards full ownership before he retired.

THE TAKEAWAYS

I enjoy being a mortgage broker because our role is not just about getting a lower rate; more importantly, it is to help clients through challenging times by finding solutions to complex scenarios.

To deliver the best client experience and outcomes, we need the backing of

To deliver the best client experience, we need the backing of – and a strong working relationship with – a range of lenders, as well as our aggregator nMB

THE SOLUTION

30

Aggregator National Mortgage Brokers

lender at a major bank, and now as a broker, I have seen how important it is to correctly structure a loan scenario and provide detailed commentary. Tapping into my experience with these sorts of scenarios, we workshopped with several lenders as we needed to make sure we could mitigate any potential concerns.

After exploring a few options, it was

THE SCENARIO

After we met with our client and completed a fact-find, we obtained the necessary documents to ensure that he could afford the increased debt level and that we could assist in identifying possible solutions. This process allows us to consider options to present to our client to achieve his immediate and future goals.

We knew the main challenge in this application would be the borrower’s age, ongoing child support payments and borrowing capacity. During my time as a

Lender Liberty

to address Liberty’s concerns in our loan submission. The application was lodged, and we received an approval in a few days for the full amount needed to refinance the existing loan and pay out the ex-partner.

The interest rate and fees were very good, not the lowest in the market but that was never expected to be the case.

It was great to find a lender that was prepared to look at the whole situation and recognise the applicant’s strengths.

After delivering news of the approval, my client was so relieved. I could feel his happiness over the phone. Just a week earlier he had feared he would have to sell his home and start again, but he was now able to retain it, pay out his ex, and focus on moving forward.

Andy Truong Managing director, Alliance Mortgage Group

clear that a number of lenders would have been unable to approve this scenario.

After discussions with my nMB BDM Anthony Wick and my Liberty BDM Justin Kirby, I had full confidence Liberty could assist.

I had found previously that Liberty had been able to work on a wide range of loan scenarios, taking a more commercial approach and showing a willingness to help clients who didn’t fit neatly into all the boxes.

Another key reason we have used Liberty in the past is that our BDM has a great working relationship with its credit team. This is crucial when we need to understand if there is appetite for a scenario being presented. It saves valuable time for my clients and, importantly, the broker.

Once we had completed the loan application with our client, we were able

– and a strong working relationship with – a broad range of lenders, as well as our aggregator nMB. It’s important to maintain regular contact with lenders to keep relationships strong, and we commit to attending every product session. This helps brokers to remain solution-based.

When presenting a deal to a lender, always provide all necessary documentation and detailed notes.

Put yourself in the credit assessor’s shoes and provide the information you would like to receive.

Every client’s situation is different; always workshop the scenario across different lenders to ensure their policy, pricing and support will match the client’s needs.

Where you can, aim to provide a minimum of three options for the client to consider. AB

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Are your clients eager to start their property development or construction projects?

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*

Receive an indicative offer within 48 hours* Enquire now p 1800 230 099 e lending@trilogyfunds.com.au *Terms & conditions apply This advertisement has been prepared for prospective borrowers and provides information only about Trilogy Funds’ lending services. Trilogy Funds Management Limited (Trilogy Funds) ABN 59 080 383 679 AFSL 261425 is not a licensed credit provider and does not make loans regulated by the National Credit Code. The source of Trilogy Funds’ loans may include managed investments schemes registered with ASIC, as well as other private lending arrangements with high net worth investors. If you would like more details on our investment opportunities, please contact us.

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Supporting brokers to build successful businesses has

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Contact an nMB Partnership Manager today. nmb.com.au | 1300 668 662 National Mortgage Brokers Pty Ltd ACN 093 874 376 Australian Credit Licence 391209.

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DATA

PROPERT Y MARKET ANALYSIS

BORROWERS LURED BY LOW RATES, CASHBACK OFFERS Banks are targeting new home loan customers with offers of better interest rates than they give existing customers, as well as generous cashback incentives. Broker Tom Uhlich of Boss Money looks at the latest trend are things in life that go to plan.

There are things that don’t.

And then, there are things that completely defy all logic.

One of these logic defiers is the Australian property market during the pandemic. Flashback to early 2020, and the forecast for the Australian property and mortgage markets was beyond doom and gloom – armageddon was predicted.

What actually happened was quite different. Australian property prices, particularly in the northern states, have skyrocketed.

A knock-on effect has been a significant increase in demand for loans, and rising competition in the loan market. Also spurred on by the current record-low interest rates, with no improvement expected in the foreseeable future, the market is hot, and lenders are doing all they can to get a piece of the action.

The RBA has highlighted that lenders are offering new borrowers significant interest rate discounts compared to existing loan customers. This can be a difference of half a percentage point or higher. For example, for owner-occupiers with principal and interest loans, the average interest rate is 2.33% for new borrowers and 2.79% for existing customers. That’s a gap of 0.46 of a percentage point. For investors with

AVERAGE HOME LOAN INTEREST RATES – CURRENT VS NEW LOANS

THERE

Loan purpose

Outstanding loans % per annum

New loans % per annum

Owner-occupier housing

2.85%

2.39%

Principal and interest

2.79%

2.33%

Interest only

3.70%

3.19%

Investment properties

3.19%

2.74%

Principal and interest

3.08%

2.67%

Interest only

3.44%

2.85% Source: RBA, July 2021

Tom Uhlich Director and senior mortgage broker, Boss Money

interest-only loans, new borrowers are offered 2.85%, while existing customers are charged 3.44%, a gap of 0.59 of a percentage point.

Banks are also now throwing cashback offers out into the market to lure borrowers. Cashback amounts can range from $2,000 to a whopping $5,000 paid on settlement. It’s an astonishingly competitive environment – one that even seasoned brokers have not seen before.

A recent example was a loan settled by the Boss Money team last month. It was a loan of $778,000 refinanced to an ultra-low 1.79%. In addition, the lucky owners received $4,000 in cashback.

That represented a saving of $12,480 in year one and $8,480 per year ongoing!

Being smart investors, these clients kept their repayments the same, which will reduce their loan term by seven years and

save them over $60,000 in interest.

Over the last six months we have saved more than $5,000 per year for 93% of clients that contacted us. Cashback is also helping borrowers get out of high fixed rates as they can use it to pay off their break fees.

It’s mind-boggling that lenders are looking after new clients rather than their existing customers. Shouldn’t they offer their existing clients cash incentives to keep them happy?

It will be interesting to see how this all plays out as government regulators try to slow the property market by making money more difficult to get. Will it be lower LVRs or increasing debt-to-income ratios? It’s unlikely to happen until lockdowns have ended.

Contact Boss Money on 0476 111 000 or tom@bossmoney.com.au.

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Release working capital. Keep your clients.

03 8508 6666 | 0417 392 132 | nyoung@trailhomes.com.au | trailhomes.com.au www.brokernews.com.au

11:12 am

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PEOPLE

Aggregator Aussie Home Loans

IN THE HOT SEAT

After contemplating a move into broking for months, Nicholas Clunes finally took the leap and joined the Aussie family in May, spurred on by the Aussie Bloom incentive. He started his new broking journey at Aussie Home Loans Neutral Bay

What led to you moving to a role at Aussie?

I had been looking to leave my role at Greater Bank, where I’d been A working as an assistant relationship manager for a few years. I had been contemplating working for myself when an Aussie broker, not knowing this, reached out and asked if I’d considered Aussie – it’s like it was fate. I was unaware of the benefits of working for a brand like Aussie and the support I would receive, as compared to flying solo.

After a couple of long phone calls and a meeting, I handed in my resignation and dove head first into the Aussie training program.

I’m so grateful for the opportunity to be a part of Aussie’s Bloom program; it really accelerated my journey by allowing me to start much sooner as a broker than I had originally anticipated. The Bloom program took away a lot the worries and concerns I’d had about starting out as new broker, through all the support and training I received along the way. It also meant that in my early days I was able to give my clients my full attention, without the fear of when my next pay cheque would be.

If I had to make the decision again, I would pick Aussie every time, and for anyone considering a career change like me, I couldn’t recommend the Aussie Bloom program more.

Q

have you enjoyed most Q What about mortgage broking?

A One thing I enjoy about being a mortgage broker is being able to help people from all different backgrounds and circumstances. For a broker there is no one-size-fits-all approach; each one of our customers has different circumstances, and I find joy in seeking options to assist them in their situation. I believe a broker should provide as much value as possible and take the ‘difficult’ out of home lending.

34

Nicholas Clunes, mortgage broker, Aussie Home Loans Neutral Bay

What transferable skills have you brought to Aussie from your previous work life? main skill I have taken from my previous role is the ability to A The think outside the box when it comes to implementing lending solutions. Also, [I’m used to] being available to my customers; whether it be before or after hours or on weekends, I work around their working hours to ensure a seamless experience.

Q

How have you used social media to stay at the front of your customers’ minds? important for my customers to know that, while we are locked A It’s down, now could be a great time to review their options. My main platform for reaching my customers is through LinkedIn, where I post quick tips and short pieces of valuable information around home lending.

Making regular posts reminds customers that we are still available and open for business, as well as showing them the guidance we can offer them throughout their home loan journey. AB

Q

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11/10/2021 12:17:38 pm

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Better together.

Continually improving the experience to make our partnership stronger.

Our simpler Home Loan Pricing Tool An improved pricing tool, with more functionality - so you can get the best outcome for your customer, faster.

A better digital experience Our DigiDocs deliver an easier and more convenient customer experience, meaning faster settlements.

Solution-focused lending We consider the circumstances of individuals and provide alternative servicing arrangements for customers with non-standard income or liabilities.

Complimentary Home Loan Compassionate Care protection We’ll support eligible Owner Occupied home loan customers by paying their home loan repayments for around 12 months, if the customer, their spouse or dependant passes away or is medically certified with a terminal illness.*

commbroker.com.au Things you should know: *Loan and age eligibility requirements and other limitations and exclusions may apply.

Applications are subject to credit approval. Terms, conditions, fees and charges apply. Commonwealth Bank of Australia ABN 48 123 123 124 Australian credit licence 234945.

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