Australian Broker 17.12 by Key Media

JULY 2020 ISSUE 17.12

Bank unveils new tech for brokers Non-major AMP Bank has introduced digital pre-application, electronic signatures and digital VOI /8

LMI waivers on the chopping block? ‘Low-risk’ professionals may have trouble accessing LMI waivers, according to new reports /18

JOHN MOHNACHEFF Understanding and responding to the evolving habits arising out of the pandemic is crucial, says Liberty’s group sales manager /14

Approvals decline – but for how long? Mortgage approvals have fallen 5%, the latest ABS figures show – the greatest decline since the GFC /20

ALSO IN THIS ISSUE… How brokers can offer a way forward This was a straightforward commercial finance deal – until the pandemic hit /17 Single women to drive property? More women are climbing the property ladder, and brokers can help them /23 In the hot seat Josh Bartlett shares how he pivoted from personal training into broking /30

NEWS

IN THIS SECTION

Lenders Lender reports surprising fall in hardship applications /04

Industry groups Brokers post massive increase in year-on-year volume /06

Market New home sales plummet to lowest on record /10

Aggregators Mortgage Choice welcomes new head of distribution /12

Technology Bank unveils sweeping tech enhancements /08

www.brokernews.com.au JULY 2O20 EDITORIAL

SALES & MARKETING

Editor Sarah Megginson

Publisher/Sales Manager Simon Kerslake

News Editor Madison Utley

GLOBAL WATCH

Production Editor Roslyn Meredith

How is the mortgage and broking world responding to the COVID-19 pandemic overseas? Here’s your snapshot of the news that matters most to the mortgage industry in North America.

AIRBNB SLASHES ITS INTERNAL VALUATION BY US$5BN rental property owners are gradually losing hope as the COVID-19 pandemic drags on, according to a new market analysis by RE/MAX. A significant contributor to the gloom is the almost-overnight collapse of Airbnb, which suffered much-reduced bookings once the coronavirus took hold of the global economy. The online lodging service has lowered its internal valuation from US$31bn to US$26bn, Business Insider reported in early April. RE/MAX said these developments had left Toronto’s landlords overleveraged and susceptible to market volatility – a far cry from the pre-outbreak vacancy level of less than 2% and monthly rent of CA$2,213. “With the closing of the US/Canada border and the imposed stay at home measures, the demand for short-term rentals disappeared overnight, and now some investors are left scrambling to find tenants,” RE/MAX said. TORONTO’S

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LOW RATES NUDGE BUYERS TO JUMP INTO MARKET the coronavirus pandemic, buyers in the US have become more motivated to purchase a home in the next 12 months, according to LendingTree’s latest survey. In a survey of more than 1,000 prospective homebuyers, LendingTree found that 53% of respondents were more likely to buy a home in the next year due to the COVID-19 outbreak. These potential buyers cited record-low mortgage rates (67%) and reduced home prices (30%) as some of their top motivators to purchase in the next 12 months. In addition, 32% of those who want to buy next year said they were able to save a larger down payment due to reduced spending amid COVID-19. Furthermore, 28% said that being confined to a smaller space during shelter-in-place mandates has made homeownership more appealing.

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BROKERS PREPARE FOR ONCOMING PURCHASE ‘RUSH’ the new world of 1.5-metre social distancing rules and stay-at-home directives, it’s vital that mortgage professionals embrace technology, especially with the purchase market likely to surge this summer, according to one US industry expert. “Given that required social distancing has directly created a physical barrier to using traditional face-to-face marketing with borrowers and realtors, access to sales-enablement technology has never been more critical for your business,” said Mark Cunningham, co-founder and chief compliance officer at Sales Boomerang. “You may be busier with refis at the moment than usual; however, for as busy as you are, how many of your borrowers have taken loans right now with your competitors?” Cunningham said that sales-enablement technology like Sales Boomerang, which automates customer retention, enables a data-driven approach to building more business with “borrowers who already know you”. IN

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NEWS

LENDERS WESTPAC SLASHES BASIC VARIABLE RATE

FIRSTMAC CUSTOMERS ON HARDSHIP ARRANGEMENTS Source: Firstmac

of the big four has cut its basic variable rate and now boasts the lowest variable home loan available from a major Australian bank. Westpac’s reduced offering is intended to woo new borrowers to the brand following the publication of recent statistics from APRA, which revealed a drop in the group’s home loan book. Westpac’s Flexi First Option Home Loan has a new rate of 2.69% for loans with an LVR of less than 70%, down from 2.93%. For those above 70%, the rate has dropped from 3.03% to 2.79%. ONE

ANZ ALLOWS BORROWERS TO EXTEND IO PERIOD major bank has introduced a temporary COVID-19 assessment process that allows eligible customers to either move from principal and interest to interest-only or renew an expiring IO period. ANZ introduced the measures to help customers manage their cash flow without putting their repayments fully on hold. To qualify, a customer cannot request additional lending and the loans must be at least six months old and due to expire within three months.

5.32%

5.65%

of customers were on hardship arrangements in April 2020

of customers were on hardship arrangements in May 2020

1.88%

56%

of hardship applicants were 30-plus days in arrears when applying

of those on hardship arrangements have made no payments to date

“COVID-19 hardship requests peaked in late March, coinciding with the federal government’s announcement of the JobKeeper package” Kim Cannon Managing director, Firstmac

NON-BANK REPORTS SURPRISING FALL IN HARDSHIP APPLICATIONS Firstmac has reported that the number of new applications received for COVID-19-related hardship arrangements has fallen faster than it expected to Firstmac managing director Kim Cannon, a “full analysis” of the trusts in its $12.8bn loan book has shown that the impact of the crisis is not accelerating in the way investors feared at the outset of the pandemic. “COVID-19 hardship requests peaked in late March, coinciding with the federal government’s announcement of the JobKeeper package,” Cannon said. “From that time, new COVID-19 hardship requests ACCORDING

have only continued on very low daily increments. The balance as at 31 May 2020 was 5.65%, up only slightly from 5.32% last month.” “Our trusts can withstand stress levels many times higher than the current levels experienced,” he added. The group attributes its successful minimisation of the detrimental impact of COVID-19 to the way its approach to the issue has differed from other lenders’ right from the beginning. “From the outset, we worked with each customer individually to help them tailor the best

arrangement for their unique circumstances, instead of just ushering them through into a default six-month hardship arrangement,” said Cannon. “We will continue that tailored approach next month when our three-month hardship arrangements come up for review, working with each person to ensure that they are making whatever level of repayments they are comfortable with, leaving them better off in the long run.” Of the 5.65% of customers currently on hardship arrangements, only 1.88% were 30-plus days in arrears as many of the accounts were in advance or making partial payments. Around 56% of the small percentage of customers on hardship arrangements have been unable to make any payment during the initial three-month period.

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NEWS

INDUSTRY GROUPS AOFM APPROVES PROSPA INVESTMENT Australian Office of Financial Management (AOFM) has approved a maximum investment of $90m in a Prospa warehouse trust through the Structured Finance Support Fund (SFSF). The Treasurer announced the government’s intention to create the SFSF in March 2020, initially consisting of $15bn. The initiative is part of the government’s efforts to support access to funding markets for SMEs impacted by COVID-19, in a bid to mitigate impacts on competition in lending markets. THE

ABS DATA CONFIRMS COVID LENDING TRENDS statistics published on 10 June have given firmer shape to the trends established over the last few months, with figures showing a significant drop in new lending, and record refinancing activity. In April, new lending fell by 4.8% from the month before, and the total value was down $935.5m from March. The value of new loans for owner-occupier housing declined 5.0%, while investor loans were down 4.2%. Although the value of loans to first home buyers in April dropped 1.9%, it was still 34.5% higher for the year. ABS

BROKERS POST MASSIVE INCREASE IN YEAR-ON-YEAR VOLUME New data from the MFAA has revealed that mortgage brokers achieved a 20% year-on-year increase in the value of new settlements in the March 2020 quarter value of new loans settled by brokers in January to March 2020 represented the largest volume they have ever recorded in a March quarter, according to research commissioned by the MFAA. The overall value of new lending facilitated by brokers over the three months reached just over $49.0bn, an increase of $8.2bn from the comparable quarter ending March 2019. However, despite the record result in terms of volume, broker market share declined over the quarter – down to 52.1% from THE

55.3% in the previous quarter and 59.7% in the corresponding quarter of 2019. MFAA CEO Mike Felton said the result confirmed that lenders had been competing more fiercely through their proprietary channels. He specifically highlighted the major banks, which have leveraged the strength of their balance sheets to pursue market share through “aggressive discounting”, as well as cash-back and fixed rate offerings. “It also reflects a blowout in lender credit turnaround times and delays in processing

discharges, which will have impacted broker settlements to varying extents in the quarter and particularly given the broker channel’s higher concentration of refinancers,” Felton said. Notably, overall market volume across all channels increased by a significant 37.5% over the same period, compared to the quarter ending 31 March 2019, and this also contributed to the lower relative broker market share result. “Whilst broker market share over the past year has declined in percentage terms, the broker value proposition remains strong,” said Felton. “We are confident that the reforms currently being implemented will continue to drive trust, confidence and an increase in market share in the years ahead as consumers increasingly turn to the broker channel.”

“Whilst broker market share over the past year has declined in percentage terms, the broker value proposition remains strong” Mike Felton CEO, MFAA

BROKER MARKET SHARE, JAN–MAR 2020 Source: MFAA

$49.0bn

$8.2bn

52.1%

37.5%

value of new loans facilitated by brokers

increase in brokerfacilitated loans since March 2019 quarter

broker market share of all loans settled

increase in market volume across all channels compared to March 2019 quarter

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NEWS

TECHNOLOGY

MONEYTECH LAUNCHES WEBINAR SERIES business growth platform’s live webinar education series has seen 200 finance brokers tune in from across the country. Moneytech’s digital courses aim to help the group’s referral base build and maintain sustainable businesses in a complex operating environment. Hosted by Moneytech CEO Nick McGrath, each 30-minute webinar involved an in-depth discussion with an industry expert on a topic in the trade and debtor finance and foreign exchange market, with time for a live Q&A. According to McGrath, the viewing figures reveal the appetite for education remains strong among finance brokers. A

BANK UNVEILS SWEEPING TECH ENHANCEMENTS HUNDREDS CONNECT AT VIRTUAL BROKER EVENT the success of the first FOLLOWING virtual BrokerConnect conference on 8 May, a second online event was held on 19 June, giving hundreds of brokers the opportunity to ‘meet’ face-to-face with a wide range of lenders and their industry peers. Leading brokers shared their insights on securing their operations and critical business activities, optimising remote working, driving new revenue streams and growing their businesses in a digital environment, as well as the future of the industry following COVID-19. The event was worth four CPD credits approved by the FBAA and MFAA.

Following rapid digitisation of the mortgage industry, yet another lender has announced a range of new technological improvements to simplify its broker experience AMP Bank has introduced a range of technological enhancements for brokers, including digital pre-application forms, electronic signatures and a digital identity verification process. According to AMP managing director Rod Finch, the changes reflect the lender’s commitment to working towards a simpler, more efficient process for both its brokers and their customers. “We’re helping potential homeowners understand their borrowing capacity through the introduction of a digital pre-application form for home loans,” he explained. NON-MAJOR

“As part of this process, clients can receive a complimentary property report on the home they’re interested in.” The bank’s introduction of e-signatures and its newly enhanced digital identity verification process will work together to further streamline and speed up home loan applications. “All new home loans for individuals lodged via the electronic lodgement system, ApplyOnline, will have the option for clients to eSign their loan contracts, and in some states their mortgage, which is a significant step in digitising our offering and improving the service

quality for clients,” said Finch. “The bank has also simplified the identification verification process, introducing electronic verification of identity, where previously documents had to be verified in person by an appropriate person. To help in these challenging times, brokers and advisers can now use video conferencing facilities to verify a borrower’s identity.” Finch added that the bank’s latest tech enhancements “build on the improved client experience that has come with the introduction of automated credit decisioning, which is providing faster conditional approval for clients and earlier insight into the progress of their home loan application. “The investments we’re making are allowing us to further strengthen the support and service we offer our clients, as well as our important broker and adviser partners,” he said.

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TECHNOLOGY UPDATE

AN ENDURING PARTNERSHIP TO BENEFIT BROKERS “It’s that constant understanding of digitalisation of business opportunities that makes NextGen.Net an integral business partner” Adrienne Smith, Director of Distribution, AMP Bank

was 2010 when AMP Bank rolled out NextGen.Net’s multi-award-winning electronic lodgement and processing platform, ApplyOnline, to its broker network. The exercise represented AMP’s commitment to the broker market, and 10 years on brokers continue to reap the benefits of this enduring partnership. “I know it may sound a bit clichéd, but jointly AMP Bank and NextGen.Net always place the client at the centre of our solutions. That forms the basis of our collaboration,” says Adrienne Smith, Director of Distribution at AMP Bank. “Whenever NextGen.Net presents an opportunity to digitise our business processes, such as the newly launched ApplyOnline Document Verification Service (DVS), which we’ve just implemented, we look at it through the prism of continually wanting to improve our processes by making them more consistent, transparent and secure. “If you look at some of the things we did 20, even 10, years ago and compare them to now, this is an exceptionally exciting time, and we want to take full advantage of it.” IT

Training to maximise its technology is high on AMP Bank’s agenda, and NextGen.Net’s Customer Success Manager Fiona Liu has been working closely with Smith’s team of BDMs to achieve this. One of Liu’s recent series of face-to-face workshops and webinars featuring the ApplyOnline Supporting Documents service attracted over 550 participants. NextGen.Net Senior Customer Success Manager Amanda Ray tells of AMP Bank’s passion and professionalism whenever a new product or an enhancement to a current one is rolled out. “AMP was fully focused on ensuring the enhancements to the Supporting Docs service was a smooth transition for all their stakeholders,” Ray says. “Our charter from a customer success perspective is to ensure our clients get the most out of the platform and use it as efficiently as possible, in order to achieve straight-through processing. “Part of that charter entails collaborating with our partners to deliver training targeted to their specific needs, whether it’s a change they’re implementing or a business-as-usual efficiency regarding an ApplyOnline tool.”

AMP approached NextGen.Net for training to help brokers and their staff make full use of Supporting Docs to reduce double handling and missing information requests and improve their time to ‘yes’. “We had moved to mandating self-verification of supporting documents to reduce rework and the number of requests for more information, and to raise the standard service delivery turnaround times,” says Smith. “When that was undertaken our team worked very closely with NextGen.Net. That’s where the training came in. I witnessed the project unfold, and the collaboration across the teams was fantastic.” NextGen.Net has always invested heavily in providing training to the market, and over the past year there has been an even stronger focus under Ray to ensure that the most is made of the ApplyOnline platform. In February, Liu trained AMP Bank’s BDMs and credit team members, along with brokers, to maximise ApplyOnline’s Supporting Docs service and other time-saving functionalities. “It’s imperative that my BDMs have total comprehension of

every tool and any changes coming down the pipe, because it’s the BDMs who are the face of it. Our BDMs are ‘change managers’. Hence the reason for our focus on ongoing training and support,” says Smith. Smith notes that having full knowledge of every piece of technology in the system is critical in order to maximise the ability of each tool and platform to contribute to “accuracy, security, responsiveness and timeliness”. “My BDM team, which is on the front line, needs to ooze confidence regarding every solution. For that to occur we need high-quality training delivered in an environment that enables everyone to ask as many questions as required. “AMP Bank is invested in achieving increased efficiencies and improved quality of loan submissions and it’s that constant understanding of digitalisation of business opportunities that makes NextGen.Net an integral business partner in the process,” concludes Smith. Brokers and lending staff can register for ongoing CPDaccredited ApplyOnline webinar training at nextgen.net/applyonlinetraining.

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NEWS

MARKET HOMEBUILDER GRANT FACES NEW CRITICISM there have been criticisms of the HomeBuilder grant’s parameters for eligibility, there could also be a longer-term economic impact, says Eliza Owen, CoreLogic’s head of research for Australia. As the policy largely creates stimulus for those who were planning to build and renovate anyway, it may result in a vacuum effect whereby “housing stimulus bringing forward a planned decision to purchase property” could drive “a surge in buyer activity soon after housing grants are made available, and a significant drop in activity thereafter”, Owen said. WHILE

$150K INSTANT ASSET WRITE-OFF EXTENDED government has extended the $150,000 instant asset write-off for an additional six months to 31 December 2020. Initially announced on 12 May and intended to last until the end of June, the government’s $17.6bn stimulus package in part temporarily increased the threshold of the instant asset write-off from $30,000. With the tax break, businesses with an annual turnover of less than $500m can invest in new or second-hand assets to support their companies as the economy reopens and health restrictions ease. THE

NEW HOME SALES PLUMMET TO LOWEST ON RECORD As largely anticipated, new home sales have collapsed since the onset of the coronavirus pandemic, according to Housing Industry Association figures released by the Housing Industry Association in early June has shown that new home sales across Australia have fallen further in each of the three months since the introduction of COVID-19 restrictions. “In March, new home sales fell to their lowest level on record; they fell further in April and lower again in May,” explained the HIA’s chief economist, Tim Reardon. “The first signs of this contraction will flow through to work on the ground as early as July, before falling more significantly from September onwards.” DATA

New home sales fell by 4.3% in May. Over the three months to May, sales were down by 20.3% compared to the previous three months. Sales were also 18.2% lower in the three months to the end of May than in the comparative quarter of 2019, when they were already at a pre-2019 federal election low. “In parallel, the number of cancellations of projects, which are typically around 7–9%, are now 26%. This compared to a 17% cancellation rate after the GFC,” Reardon added. “[However,] the announcement of the HomeBuilder program

in June should arrest the fall in new home sales and improve market confidence, not just in the home building sector but across the wider economy. “This will improve the outlook for employment in the sector in the second half of 2020 and into 2021,” he said. The latest finance data has yet to show the full impact of the pandemic on the industry, with the modest decline in finance approvals in April “reflecting processing delays due to COVID”, Reardon added. “The volume of residential building activity is expected to decline throughout the rest of the year; however, various state stimulus programs will be important in mitigating the extent to which this downturn weighs on the post-COVID economic recovery,” he said.

“New home sales fell to their lowest level on record; they fell further in April and lower again in May” Tim Reardon Chief economist, Housing Industry Association

FALLING SALES OF NEW HOMES Source: Housing Industry Association

4.3%

20.3%

18.2%

26%

Decline in new home sales in May 2020

Decline in sales in 3 months to May 2020 versus 3 months to February 2020

Decline in sales in 3 months to May 2020 versus 3 months to May 2019

Number of project cancellations between March and May 2020

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NEWS

A G G R E G AT O R S

FINSURE CONTINUES TO GROW LENDER PANEL aggregator Finsure has grown its broker support team by three with the appointment of two new BDMs and a business coach. The group welcomed Chelsea Deacon as BDM for Victoria and Cherish French as BDM for NSW, while new business coach Rachel Johnson – who has eight years’ experience in finance across a range of roles at Bankwest – will be based in Melbourne. “The continued growth of our 1,700-strong broker network necessitates expanding our highly regarded BDM team,” said Finsure general manager of aggregation Simon Bednar. MORTGAGE

MORTGAGE CHOICE WELCOMES NEW HEAD OF DISTRIBUTION The aggregator’s newly appointed general manager of distribution took the reins at the beginning of June

CONNECTIVE PARTNERS WITH CAR BROKER aggregator has partnered with car brokering service Premium Car Search to better support its brokers who are exploring vehicle financing. Connective reported a 36% increase in asset finance deals submitted last month, and attributes this to its brokers looking to deliver more value to clients and protect their businesses through diversification. With Premium Car Search, brokers can more easily source the ideal vehicle to match customers’ needs, and can process the deal using the BOLT loan processing tool. AN

new general manager of distribution at Mortgage Choice, David Zammit, brings to the aggregator 14 years of experience in financial services, spanning from boutique firms to multinational corporations. Most recently, he was the head of banking and wealth management distribution at CitiBank. “David’s appointment comes at a critical time, as we gear up for a new era in the broking industry,” said Mortgage Choice CEO Susan Mitchell. “We have made it a priority to invest time and resources into building a competitive and ever-evolving technology and compliance offering to support our network for best interests duty.” THE

According to Mitchell, client satisfaction rose to an all-time high during Zammit’s tenure at CitiBank, leading the business to achieve record volumes across mortgages, investments and FX transactions. “I believe that David’s understanding of the lending industry and ever-changing regulatory environment will help to position Mortgage Choice and its franchisees for the changes that lie ahead,” she added. Zammit has expressed excitement over joining the “iconic Australian brand”. “I have a deep passion for building and growing successful businesses, both large and small. I look forward to building strong

relationships across the franchise network and learning first-hand from its experienced franchisees what they need in order to be successful and grow their businesses and to drive the change required to deliver to those needs,” he said. “I have always believed in the strong value proposition of the broking channel and its ability to put the customer first, which makes me optimistic about the future. I have seen the industry undergo tremendous growth over the years, and I believe there is much more to come.” Mitchell also thanked former general manager of distribution Neill Rose-Innes for his 12 years at the company. “[Rose-Innes] has played a significant role in the strategic evolution of the business over the years, and his authentic style has allowed him to build strong relationships at Mortgage Choice and within the wider industry. I wish Neill all the best in his new journey,” she said.

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FE AT URES

COVER STORY

LIBERTY MEANS BUSINESS With the first six months of 2020 behind us, we can reflect on lessons learnt and prepare for the future. For John Mohnacheff, group sales manager at Liberty, this means strategising the best possible way to support brokers and their clients this year and beyond

there’s one thing that rings true for 2020, it’s the fact that this has been a year of rapid change and growth in the mortgage industry. Words like unpredictable, unprecedented and uncertain have been repeated ad nauseam, but to John Mohnacheff, group sales manager at Liberty, this is the time to focus on the upsides and opportunities, rather than the setbacks. “Thanks to the agility and quick work of all our support teams, we have been able to continue providing the same legendary service and quick turnaround times that brokers have come to know us for. I’m really proud of our ability to remain open for business with a seamless transition to remote working, which has allowed us to continue to support brokers and business partners when they needed it most,” Mohnacheff explains. “Social distancing posed challenges to the way many brokers normally do business, so we made it our priority to adapt quickly. We integrated digital identity verification software into our application process swiftly to allow brokers to continue to work with customers and help those most in need. Our top priority was to support customers and brokers during this challenging time, and we’ve aimed to provide customers with peace of mind and a seamless remote service.” One thing Liberty has long been known for is its agility and willingness to give brokers scope to help borrowers reach their goals in a range of different situations. IF

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So, how has this approach evolved during the pandemic? “Once we realised that face-to-face operations would have to change, Liberty immediately switched approaches, initiating our view-toview program and setting in place our virtual visitations. Our BDMs were diligent about continuing to provide brokers with support, and kept in touch through personalised video communications,” Mohnacheff says. “Liberty’s unique business model allows us to assess applications on

and opportunities for brokers to help customers as the situation has evolved,” Mohnacheff says. “Continuing to be accessible to support our brokers and business partners was a high priority as the pandemic developed. Liberty’s underwriting and support staff remained proactive and available as we moved to remote working arrangements, with many brokers and business partners commenting on the lead we took to ensure our service was not disrupted.”

“Liberty has always championed diversification, and our BDMs can provide brokers with the personalised training they need to expand their offering and build their businesses” a case-by-case basis so we can offer the best solution for each customer’s individual situation.” This ability to take a closer look at each application and “find free-thinking ways to help, where others can’t” has always been at the core of Liberty’s approach, he adds – and during the pandemic this has proven to be a genuine competitive advantage. “It has not only meant that we have been able to continue to help brokers and their customers when they need it most, but we’ve also continued to innovate, releasing more solutions

To this end, Liberty developed a number of measures to support BDMs and brokers during COVID-19, with a particular focus on assisting Australia’s small business community. “Our extensive experience working with small businesses and our understanding of the challenges they faced as the pandemic progressed meant that we were quick to jump on the opportunity to partner with the Australian government in their SME Guarantee Scheme and provide more options for brokers to help business clients,” he says. “Through our Liberty Business

Care offering as a participating lender in the scheme, we have been able to extend our experience to further support individuals and businesses that have been directly impacted. And we were pleased to confirm an upfront commission structure to brokers working with us to deliver this solution.” Reinforcing its approach to working collaboratively with brokers, Liberty is “ensuring lines of communication remain open” for brokers to contact its underwriting teams directly to discuss any unique or complex scenarios. “We know that timely responses are crucial in times like these and keeping those lines of communication open between us and our business partners is crucial to delivering tight turnarounds,” Mohnacheff says. He also suggests that the rapid digitisation of the way business is done within the mortgage industry as a result of COVID will continue to evolve, and the industry will continue to formalise and adopt the techniques that have been rushed forward through the pandemic. “The events of this year have highlighted the importance of customer service and taking a personalised approach. Broking is a people business, and while digital tools have become integral to the way we work during the pandemic, it’s more important than ever to exercise those soft skills and engage with customers with empathy and understanding,” he says. “The way brokers communicate will continue to evolve as customer expectations change with greater

In partnership with

John Mohnacheff, group sales manager, Liberty

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FE AT URES

focus on connection. Customers are no longer satisfied with reactive service, so brokers need to adapt to look beyond the transaction to build long-term customer relationships. Successful brokers see these engagements as more than just a transaction and recognise the importance and value of fostering these relationships to create lifelong customers.” Working digitally while retaining that personalised approach allows brokers to adapt to the needs of each customer, Mohnacheff explains. “I think that means, going forward, customers will have an even greater expectation of flexible, customised service. Operating electronically has brought conveniences for customers that many will prefer. So, with this approach continuing even when we can meet in person again, brokers will need to be flexible and technology-savvy.” In terms of diversification, Liberty also recently launched its LIFT business loan at the end of last year. The product, which was introduced after feedback from brokers who were “crying out for business solutions” for their customers, requires no mortgage security. Liberty has further established a dedicated business lending department to support both brokers and business partners. “Liberty has always believed in the value of innovation and diversification, and with pressure on small business increasing during COVID-19, we were quick to do all we could to help support our brokers and to help more businesses. We know that small business is integral to the Australian economy and is the group hardest hit by repercussions of the pandemic,” Mohnacheff explains. “Where we see opportunities, we will continue to innovate. Just as we were quick to put our hand up and join the government’s SME Guarantee Scheme with Liberty Business Care, we are constantly working to improve our offering to meet the needs of our customers and business partners.” While it’s too early for Mohnacheff to reveal any more right now, he does confirm that brokers can expect further announcements from Liberty in the very near future, which have been designed to help brokers who service the SME space. “We’re committed to helping more businesses to get financial with Liberty, and our unmatched record of innovation continues as 16

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we constantly scan the industry and listen to our customers and business partners to identify product and service needs,” he says. The timing couldn’t be better for the broker community, he adds, because right now those in the industry have a huge opportunity to take stock and review their offering to identify any gaps that could be strengthened by diversification. “With brokers strengthening their online presence during the pandemic, it will be important to really think about their unique proposition and how they can set themselves apart. Embracing technology to deliver personalised customer service is a very real opportunity for successful brokers to continue growing their business through the rest of 2020 and beyond,” Mohnacheff says. “When it comes to ensuring the relevance and viability of your broker business into the future, we continue to remind brokers of the importance of diversification. Being prepared for the future means consistently striving to meet the best interests of more customers. “Liberty has always championed diversification, and our BDMs can provide brokers with the personalised training they need to expand their offering and build their businesses. Our custom training program is designed to give brokers the tools to successfully diversify. Over the years, we have continued to refine our ‘Do More’ program to ensure that brokers are equipped to handle the challenges they may face in their careers.” AB

“With brokers strengthening their online presence during the pandemic, it will be important to really think about their unique proposition and how they can set themselves apart”

LIBERTY BUSINESS CARE LOANS

 

Business loans worth $25,000 to $250,000 over a three-year term

       

Application fee of $545 due at credit submission

Rate of 4.95% for loan terms of up to three years

Repayments deferred for first six months (interest capitalised) No prepayment costs and the ability to redraw Establishment fee of $950 or 0.95% of total drawdown (if greater) Open to businesses with an aggregate annual turnover of under $50m Funding for working capital purposes only (no refinancing of debts) Suitable for ABN-registered businesses trading for more than two years The loan to be approved and unconditional by 30 September 2020

PEOPLE

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

sarah.megginson@keymedia.com

BIG DEAL

Nicola Tucker, director and finance broker at Surf Coast Finance, took on this relatively straightforward commercial finance deal at the beginning of March – and then the pandemic hit THE FACTS

Client Family trust with father and son as trustees

Loan size and term $560k over 300 mths @ 3.99% pa; $80k over 120 mths @ 4.49% pa

Goal To purchase commercial property at 80% LVR

Location Geelong

THE SCENARIO

I had originally helped one of the two borrowers in this deal with his first home purchase nearly two years earlier; he had found me via my Google reviews. Subsequently, when he wanted to buy a commercial property, which his father’s business would be operated out of, he contacted me to see if I could assist. The goal was for the father and son to purchase the commercial property for $875,000, using an equity release from the son’s existing home to help fund the purchase. Based on legal advice that the pair had sought out independently, the finance structure that they desired required a family trust to purchase the commercial property. To add a little bit more complexity to the deal, we were aiming to complete and settle this transaction during COVID-19, as the developer had offered the borrowers a substantial rebate worth $75,000 for purchasing during the pandemic. We required an 80% lend, based on the deposit of $175,000, which had been pooled by the father and son. The son’s portion was due to come out of the equity release from his home. During normal lending conditions, this would have been quite a complex deal. However, because of all of the uncertainty driven by COVID-19, it became much more difficult as we saw some commercial lenders who were originally very active in the commercial space limit their LVRs – or in some cases pull out of the market completely.

Lender Suncorp SME

Aggregator Loan Market

THE SOLUTION

We reviewed a number of different lenders in order to find the right fit for these borrowers’ particular circumstances. As each lender assesses income differently, it was a matter of finding a bank or lender that would take into account the particular requirements of this loan and the borrowers’ unique situation. For instance, there were many lenders

to borrow at up to 80% LVR on the commercial purchase. The way Suncorp structures this type of transaction is to hedge its risks by splitting the loan into two loan terms with different terms and conditions: the 70% LVR loan was set up as one loan amount amortised over 25 years, while the remaining portion at 10% LVR was amortised over a much shorter term of 10 years. We split the loan as follows: • $560,000 repaid over 300 months @ 3.99% pa • $80,000 repaid over 120 months @ 4.49% pa Suncorp issued conditional approval within five days, and we are expecting the property to settle in late July. THE TAKEAWAYS

Every bank and lender has its own unique policies and procedures, so no matter how complex the loan, the borrower’s situation or their ultimate end goal, there is always a way forward, even in the middle of a pandemic.

Due to all of the uncertainty driven by COVID-19, the deal became much more difficult as we saw some commercial lenders … limit their LVRs – or in some cases pull out of the market completely

Nicola Tucker Director and finance broker at Surf Coast Finance

that wouldn’t look at the application because of the accumulated losses sitting in the balance sheet, even though the business had shown highly profitable trading over the previous three years. We had also started the conversation about a commercial purchase and loan structure with this client prior to COVID-19. Back then, there were multiple options available, so initially it wasn’t a challenging placement. When the situation changed and we were strategising a lending solution, we began talking to Suncorp and discovered that the client had the ability

Originally, I had been advised that the maximum loan term for this transaction with Suncorp would be 10 years for the full loan amount. Having the ability to lean on an experienced commercial broker enabled me to challenge this and seek a policy exception based on the owner-occupied nature and loan size. This resulted in a fantastic outcome for our borrowers and the bank, which now has a secure, low-risk and long-term customer in place, and proves just how valuable it can be to have a mortgage broker advocating for you rather than approaching the bank directly. AB

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BUSINESS VIE W

LMI WAIVERS ON THE CHOPPING BLOCK? Amid an evolving mortgage market in which the goalposts are changing daily, a new shift is emerging around lenders mortgage insurance. ‘Low-risk’ professional borrowers have traditionally been able to access LMI waivers; however, reports of these waivers being withdrawn are gaining traction waivers for professionals have long been available to eligible borrowers, in recognition of the fact that these registered professionals – such as engineers, doctors and lawyers – represent a low risk for defaulting on their loans. “Medical professionals are amongst the most commonly accepted industry to be given an LMI waiver across a number of lenders, but other professionals who are offered LMI waivers include lawyers, accountants and even sports and entertainment professionals,” explains Aaron Christie-David, managing director and finance broker at Atelier Wealth. “Brokers can help potential clients by identifying client occupations that are eligible, and they’re also familiar with lender policies regarding LMI LMI

waivers, given that some have a minimum income requirement and/or a maximum loan amount.”

industries can save up to tens of thousands of dollars via the waiver, depending on the value of the

“There have been a few lenders that have been clamping down on their LMI waiver policy and … even though the client may be eligible, the bank is opting not to apply this policy” Aaron Christie-David, managing director, Atelier Wealth When purchasing a property with an LVR of between 80% and 90%, those in eligible professional

property being purchased. This makes recent reports that some banks are winding back their

waiver offers fairly significant for borrowers who are considering getting a loan in the near future. “I’m often a little wary when I hear about anecdotal evidence, as there could be mitigants to the waiver, and even pre-COVID it may not have been an approved loan. However, we have seen medical professionals have their LVRs capped at 85% for LMI waivers, while some lenders, such as Westpac and St. George, have definitely removed this [waiver] for whitecollar professionals, sportspeople and entertainers,” Christie-David says. “There have been a few lenders that have been clamping down on their LMI waiver policy, and some of these changes have been communicated explicitly, while feedback amongst broker peers

WHICH PROFESSIONALS CAN ACCESS AN LMI WAIVER? Traditionally, the following industries have been eligible to claim an LMI waiver on loans above 80% LVR with a number of banks and lenders. It has been a requirement that the borrower should hold current membership of a relevant industry body in order to apply for the waiver. Eligible professionals include:

Accountants – Chartered Accountants Australia

Judicial officers (judges and magistrates) – Must show copy

& New Zealand

of current commission or letter of appointment

Actuaries – Fellowship of the Institute of Actuaries

Lawyers – Must have current practising certificate issued by

of Australia

their relevant state or territory legal practice regulatory body

Doctors – Membership of relevant association,

Vets – Membership of relevant association, eg Australian

eg Australian Medical Association

Veterinary Association

Dentists – Membership of relevant association,

Professional athletes – Must show copy of current contract

eg Australian Dental Council Entertainment professionals – Must have an accredited Financial planners – Membership of the Chartered

manager, agent or accountant

Financial Analyst Institute Source: Home Loan Experts

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Aaron Christie-David, managing director, Atelier Wealth

suggests that sometimes, even though the client may be eligible, the bank is opting not to apply this policy. Being CBD-based, we often work with a number of legal and finance professionals, and the huge advantage we have is that there are plenty of other lenders still active in this space. This is where being a mortgage broker is such an advantage, when we have so many lender options at our fingertips.” Melbourne-based finance and property adviser Mary Sartinas of Affiliate Finance & Property has also noticed this trend emerging, noting that there have been “some changes to the lending policy for professional borrowers”. “We’ve found that CBA will now waive LMI for loans of up to 90% for select professionals in the medical, legal and accounting sectors who are borrowing for owner-occupier purposes; however, the LMI waiver will not be available if the purpose is for investment,” she explains. “NAB and Westpac have a limited LMI waiver policy that is only available to medical professionals at 90% and 85% respectively. Meanwhile, ANZ’s LMI waiver policy remains at 90% for medical, legal and accounting professionals. “It’s important to keep in mind that these lending policies can change at any time – and given the scope of options that are still available in this space, our clients are not significantly impacted by these recent changes.”

A bigger concern for borrowers has been the impact of more conservative valuations as banks and lenders take a more cautious view and increasingly appear to be shading their property valuations lower. “It’s expected during times of economic uncertainty that banks will take the required precautions and be more careful when making lending decisions. Whilst we have noticed that the values in some suburbs have remained stable, there has been an evident drop in

Mary Sartinas, finance and property adviser, Affiliate Finance & Property

Christie-David has a similar view and says access to data is a broker’s best ally in the current environment. “Low valuations tend to poke their ugly head up consistently, so we always start by ordering a property report, which will give us a good range on a bank’s estimated value. We base our numbers on this midpoint, and once we order the [borrower’s] valuation, there really shouldn’t be any surprises if we have planned for the worst but hoped for the best,” he says.

“We’ve found that CBA will now waive LMI for loans of up to 90% for select professionals … however, the LMI waiver will not be available if the purpose is for investment” Mary Sartinas, finance and property adviser, Affiliate Finance & Property valuation results in other areas, which could be triggered by a number of variables,” Sartinas says. “Low valuations have had an impact on a small percentage of our clients, but having the ability to order an upfront bank valuation enables us to determine our client’s equity position prior to lodging an application, and from there we’re able to move forward with a realistic expectation.”

“We also order valuations upfront to avoid submitting deals that would ultimately fall over at the valuation stage.” As for where property values will head in the months ahead, Christie-David says clients often ask him and his team for their views on the market. “We’re being asked more and more about the property market, stamp duty, land tax incentives, first home

buyer grants – which is great, as we get to educate our clients. This shows me that with all these options for homebuyers, they are being bombarded and overwhelmed with information, and our role is to be their problem-solver,” he says. Sartinas adds that with a significant level of uncertainty as to what will happen to the property market as 2020 progresses, many potential property buyers are seeing opportunities amid the crisis. “Some investors and developers have turned to specialised lenders or private funding to keep their projects moving, and although this means paying higher fees and accepting a higher [interest] rate, for many this is still a feasible option – especially at a time when rates are at an all-time low – versus shelving a project for an indefinite period of time,” she explains. “I also believe that every economic shift opens up new opportunities for each type of borrower, whether it be first home buyers, owneroccupiers, investors or developers. In recent weeks we have seen a spike in enquiries from owner-occupiers looking to upgrade their homes, investors who are exploring the potential to expand their portfolio, and even first home buyers looking to get their foot in the door. With interest rates at a historical low and the potential to secure a good property deal, we can expect to see the mortgage industry continue to be very busy.” AB www.brokernews.com.au

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MARKET UPDATE

MORTGAGE APPROVALS DOWN, BUT FOR HOW LONG?

In the months since the COVID-19 pandemic hit, giving the economy a battering, mortgage approvals have declined. But how long is this sluggish market set to continue – and what can brokers do to assist clients in the interim?

HOMEBUILDER SCHEME CRITERIA

 Valid for all new-build home purchases and substantial ($150k plus) renovations between 4 June 2020 and 31 December 2020

 HomeBuilder will provide

all eligible owner-occupiers, not just first home buyers, with a grant of $25,000 to build a new home or substantially renovate an existing home

 Applicants will be subject to eligibility criteria, including income caps of $125,000 for singles and $200,000 for couples, based on their latest assessable income



A national dwelling price cap of $750,000 will apply for new home builds

 A renovation price range

of $150,000 to $750,000 will apply to renovations of an existing home, and the home must be currently valued at no more than $1.5m

 The program is expected

to provide around 27,000 grants at a total cost to the federal government of around $680m Source: Prime Minister, Treasurer, Assistant Treasurer and Minister for Housing; pm.gov.au

people were expecting the Australian Bureau of Statistics’ most recent round of mortgage data to paint a rosy picture. Indeed, the April 2020 Lending to Households and Business figures released by the ABS in mid-June revealed that the value of loans for housing fell by 5.0% in seasonally adjusted terms, with the decrease largely driven by a drop in owner-occupiers purchasing existing dwellings. Adrian Kelly, president of the Real Estate Institute of Australia (REIA), says the figures represented the greatest decline the market has seen since the GFC. “The value of new loan commitments for both owneroccupiers and investors displayed the largest fall in 12 months, and the purchase of existing dwellings experienced the largest fall in over a decade,” Kelly says. “Not surprisingly, the ABS reports that lending institutions have indicated that COVID-19 impacts were evident through both reduced demand from borrowers and tighter lending criteria. What is more sobering is that the ABS says COVID-19 operational impacts experienced by some lending institutions resulted in a backlog of March housing loan applications being processed in April, which moderated the April fall in loan commitments.” The number of owner-occupier first home buyer loan commitments fell by 3.8% in seasonally adjusted terms, but the proportion of first home buyers, as part of total owner-occupier housing finance commitments, was 36.7%, Kelly adds. FEW

“Feedback from agents suggests that worse is yet to come on housing finance figures, as restrictions on movements throughout May and caution about the economy’s impact on activity in the housing market,” he says. Economist Maree Kilroy from BIS Oxford Economics shares similar sentiments, after analysing the Lending Indicators data and finding that the monthly result was dragged down by “weaker demand for established dwelling loans (down 6%), as barriers to property transactions were imposed in response to the pandemic”. “Investor demand took another fall, down 4%. Similarly, first home buyers contracted by the same amount,” Kilroy says.

expected to contract further in May. The easing of restrictions on live auctions and open house inspections will see new housing loans gradually recover over the subsequent months. The recently announced HomeBuilder program will provide material support for new construction loans, but this will not be evident until the end of 2020.” One group that hopes Kilroy is on the money with her prediction of a HomeBuilder-driven boost in activity is real estate agents, who are more than ready to see some activity return to the market. National research by RateMyAgent has revealed that Australian sellers are increasingly unhappy with housing prices, with vendor price satisfaction decreasing

“The easing of restrictions on live auctions and open house inspections will see new housing loans gradually recover over the subsequent months” Maree Kilroy, economist, BIS Oxford Economics These results are largely in line with what economists expected, Kilroy explains, with the month-onmonth fall of 5% of total owneroccupier housing loans considered “relatively soft, all things considered”. “Increased processing times meant that the April result included a backlog of loans from March, pre-pandemic,” she says. “Following weak turnover with a modest lag, mortgage approvals are

by 5% in the first quarter of 2020. Surveying more than 20,000 Australians, RateMyAgent’s newest Price Expectation Report (January–April 2020) asks successful vendors if the sale price they achieved was above, below or in line with their expectations. The first quarter of 2020 showed a substantial increase in overall price satisfaction and a recovery trend, with net vendor happiness

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Maree Kilroy, economist, BIS Oxford Economics

increasing 17%, from 25% in March 2019 to 42% in March 2020. However, as government-mandated regulations and physical distancing measures came into place in response to COVID-19, April vendor price satisfaction dipped nationally. Tasmania led the drop with a 16% decline in seller happiness, closely followed by Victoria and NSW. “The Price Expectation Report shows us that the initial impact of COVID-19 on the market wasn’t as severe as expected, as the housing market has proven to remain resilient,” says Mark Armstrong, CEO of RateMyAgent. “While we still need to analyse the long-term effect of the pandemic and keep a close eye on economic conditions, we are seeing the real estate industry begin to recover, particularly with the easing of restrictions and a slight drop in the national house price.” In response to uncertainty, metro areas saw the largest drop in vendor happiness, with robust property markets in Melbourne and Sydney experiencing declines of 10–16% respectively. Meanwhile, regional areas in Victoria and Queensland saw a reduction in vendor happiness of between 4% and 1%. Contrary to this, property markets in Queensland (4%), SA (1%) and WA (1%) initially saw a steady increase in price satisfaction in

Adrian Kelly, president, Real Estate Institute of Australia

“Not surprisingly, the ABS reports that lending institutions have indicated that COVID-19 impacts were evident through both reduced demand from borrowers and tighter lending criteria” Adrian Kelly, president, Real Estate Institute of Australia TOP 10 REGIONS BY COUNT OF OWNER-OCCUPIED PROPERTIES WORTH LESS THAN $1.5M Number of Properties

Median value of all properties in the region

Portion of households where income is <$200,000*

Melbourne - South East

157,364

$ 648,881

93.7%

Perth - North West

145,889

$ 468,461

88.5%

VIC

Melbourne - West

141,444

$ 577,817

93.2%

QLD

Gold Coast

132,976

$ 550,152

93.3%

VIC

Melbourne - Outer East

130,307

$ 785,669

91.9%

Perth - South East

121,696

$ 425,434

91.0%

Adelaide - North

108,848

$ 357,520

96.9%

VIC

Melbourne - North East

108,354

$ 679,160

92.2%

ACT

Australian Capital Teritory

106,909

$ 637,279

83.9%

Perth - South West

105,948

$ 437,637

88.6%

State

Region

VIC

Source: CoreLogic, ABS Regions are based on ABS SA4 2016 boundaries. *Data is an estimate, derived from self-reported total household incomes from 2016 ABS census data. It is intended to be a proxy for the portion of couples that would qualify for the HomeBuilder scheme on income.

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WANT MORE BREAKING NEWS? For more up-to-date news and comprehensive analysis of issues affecting mortgage brokers and the industry at large, visit

www.brokernews.com.au

April. The remainder of Q2’s results will determine the full impact on the real estate market. “What’s great to witness is how high-performing agents have adapted and learnt new ways to remain ‘undisruptable’, while continuing to provide exceptional customer experiences in an ever-changing property market,” Armstrong says. Looking ahead, will the newest

Part of the eligibility criteria for renovations is that the property must be owner-occupied and not exceed more than $1.5m in value. Using its extensive database, CoreLogic has put together a count of properties in the regions where the highest and lowest number of owner-occupied properties valued at under $1.5m are located (see boxouts). The count of properties includes those

“While we still need to analyse the long-term effect of the pandemic and keep a close eye on economic conditions, we are seeing the real estate industry begin to recover” Mark Armstrong, CEO, RateMyAgent stimulus package announced by the government, which will see grants of $25,000 awarded to homebuyers who build a new property or substantially renovate their existing home, have much impact on mortgage figures? “In tandem with weak property turnover, we expect a further and larger decline in May of mortgage approvals given the lags involved,” Kilroy says. “The HomeBuilder program favours the greenfield housing market over off-the-plan apartments, due to the short time frame for construction, as the intention is for construction to commence within three months of the contract date. Combined with existing grants, first home demand should respond solidly, especially in Western Australia.” Eliza Owen, head of research Australia at CoreLogic, says the HomeBuilder scheme was announced in early June with the intention to boost activity in the construction sector, but the jury is still out as to whether it will have a substantial impact on the mortgage market. “Dwelling construction is expected to see a lagged decline in activity off the back of COVID-19, as the recently recovering trend in dwelling approvals began to slip in April, led by a decline in unit approvals,” she says. “However, the $25,000 incentive for building a new home, or renovating an established one, comes with a set of extensive eligibility criteria.” 22

that it estimates are owner-occupied and have a high confidence valuation of less than $1.5m. “Even where dwellings fall well below the $1.5m threshold for a renovation grant, many of these owner-occupiers will not take up the HomeBuilder incentive for renovations,” Owens says, warning that in areas where dwelling prices and incomes are relatively low, taking

Mark Armstrong, CEO, RateMyAgent

up the grant “may lead to owners overcapitalising on renovations, where they cannot recoup the cost of upgrades to the property”. “CoreLogic estimates there are about 4.4 million owner-occupied properties across Australia with a high confidence valuation below $1.5m, but

the federal government estimates the scheme may only support about 7,000 renovations,” Owens adds. “While part of this is [due to] the income cap put on the scheme, it is also due to the high value of renovations that is set in the eligibility criteria.” AB

BOTTOM 10 REGIONS BY COUNT OF OWNER-OCCUPIED PROPERTIES WORTH LESS THAN $1.5M Number of Properties

Median value of all properties in the region

Portion of households where income is <$200,000*

Queensland – Outback

2,178

$ 160,972

93.1%

Northern Territory – Outback

3,441

$ 373,764

92.2%

South Australia – Outback

4,864

$ 177,986

95.8%

Western Australia – Outback (North)

5,292

$ 309,441

81.8%

NSW

Sydney – Eastern Suburbs

5,395

$ 1,410,948

76.5%

TAS

South East

7,890

$ 379,666

97.8%

NSW

Far West and Orana

9,067

$ 189,543

95.9%

NSW

Sydney – Northern Beaches

11,291

$ 1,597,316

77.6%

QLD

Darling Downs – Maranoa

11,681

$ 235,869

96.3%

Western Australia – Outback (South)

13,545

$ 232,592

91.9%

State

Region

QLD

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OPINION

HELPING SINGLE WOMEN REALISE PROPERTY DREAMS Even just 20 years ago, it was rare for a single woman to own real estate. Fortunately, times have changed, but while mortgage broker Rebecca Jarrett-Dalton from Two Red Shoes is seeing growing numbers of women take the plunge, she believes brokers can help many more get on the property ladder single women give up on their hopes of property ownership. It seems like a white-picket-fence dream. As a mortgage broker, this attitude concerns me, because I know it doesn’t have to be like this. Single women are completely capable of building a property portfolio, and many are determined to do so. Whether coupled-up or single, the goal of property ownership is a solid one for anyone, and savvy mortgage brokers can do much to support and encourage their female clients. Financial independence is such a crucial achievement and one that women have been fighting to gain for many years. With changing family and economic dynamics, more and more single women are looking to join the property market. They want to build a property portfolio because homeownership is a secure investment. We’ve seen the importance of these kinds of investments in recent months as COVID-19 has undermined the economy. These economic changes could make property investment more realistic, as with uncertainty around prices, some single women will be able to use this as the chance they’ve been waiting for. Mortgage brokers have a crucial opportunity to leverage this situation. If we’re aware of this trend and think carefully about how best to cater to these buyers, we can help realise the property ownership dreams of many single women. If brokers want to best serve this demographic, then they need to get with the times and become aware of unspoken bias. Women often report that they feel ignored or overlooked by the property professionals they deal with, which is obviously going to be a huge turn-off. Single women need advisers and mortgage brokers who will take them seriously. They need a support team who listen and ask good questions. No one wants to be dismissed or patronised, especially when hard-earned cash and big decisions are at stake.

In order for single women to kick-start their property portfolios, they need compassionate industry professionals. Homeownership is a long-term investment, so it’s important that buyers secure the best property they can afford, for the sake of their future. For families or couples looking to buy, the formula is pretty simple. Often, families have clear goals for property ownership. Perhaps they’re looking for a three-bedroom house but have plans to move on when their family grows. Or perhaps a location within a school district is a major consideration in their property decision. This formula is different for single women. A little brainstorming might be needed to assess exactly what kind of

MANY

to purchase an investment property, rather than a home to live in. Trends change, so the key is to choose long-term value over looks. It can be hard to make decisions with your head and not your heart, and in this respect families and couples can bounce ideas off each other and help keep one another level-headed. This isn’t the case for single women who are looking to buy. So it’s important that they surround themselves with people who will help them make good decisions – and as a mortgage broker, you are part of their support network. Are you doing everything you can to make life easy for single women in the market for a property? If not, it may be time to make a change.

Women often report that they feel ignored or overlooked by the property professionals they deal with … they need advisers and mortgage brokers who will take them seriously

Rebecca Jarrett-Dalton Mortgage broker

value matters most to a single woman. House features? Location? Neighbourhood? Even the floor level is an important consideration, with single females prioritising the security of an upper level (no ground floor, please). For women looking to build a property portfolio, it’s important to seek the highest possible value without breaking the budget. This is another reason that having a great team of professionals is key to making wise decisions. As a mortgage broker, are you thinking carefully about the advice and support you give to single clients? It’s also important to think strategically, which is especially true for those looking

The current economic and societal climate means more and more women will be joining the property market. They represent a serious slice of clientele who deserve excellent service. There are particular issues that are relevant to single property buyers. Who can help them make their decisions? Are their requests and questions being taken seriously? What is most valuable to them? As an industry, we need to commit ourselves to finding solutions to these issues. That way, we’ll see many more single women making life-changing property purchases that lead to financial independence. And that’s a win for everyone. AB www.brokernews.com.au

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22/06/2020 2:18:38 PM

PEOPLE

Get involved in the discussion Share your thoughts at

brokernews.com.au

FROM THE FORUM

Top comments from trending stories on brokernews.com.au

STAMP DUTY REFORM TAKES THE SPOTLIGHT

ME BANK FACES ONGOING LOAN REDRAW WOES

The conversation around stamp duty reform has gained momentum in recent weeks, with everyone from RBA Governor Philip Lowe to Treasurer Josh Frydenberg to state politicians suggesting that land tax reform may have a role to play in Australia’s post-COVID economic recovery. Reform could significantly aid homebuyers by reducing the amount of savings required upfront to buy a home. While discussion of stamp duty reform is ever-present, the tax is widely viewed in the industry as “untouchable”, says Damien Roylance, managing director of Melbourne-based Entourage – and this is especially the case in Victoria, where it comprises 40% of the state’s revenue. “We’ve always talked about stamp duty reform, but the thing is, the percentage of stamp duty hasn’t changed since the ’70s when the median house prices were 30-odd thousand dollars. It was never adjusted down as we moved into the 2000s, and house prices obviously increased,” Roylance said. “A lot of agents are now screaming, ‘Just make a decision on it!’, because if people think reform is coming, agents are worried they are going to hold off on buying. With a million-dollar purchase, which is not uncommon these days, the stamp duty is $55,000. If people think change is coming, why would they buy now when they could save that much down the line?”

ASIC commissioner Sean Hughes has addressed ME Bank’s redraw issue, which ASIC first became aware of in March 2013 when an error in ME Bank’s legacy platform resulted in a number of home loan holders being incorrectly notified about the amount available for redraw. As a result, 416 customers fell behind on repayments and a further 6,554 were identified as at risk of doing the same. ME informed ASIC that the 416 customers would be contacted by telephone and the larger group by letter, to explain the error and inform them of their correct redraw amount. The bank enacted the plan and ASIC received no customer complaints at that time. Over six years later, on 10 December 2019, ME Bank informed ASIC that the redraw error had reappeared in 2015 but was not identified by the bank until October 2019. ME Bank made adjustments to approximately 21,000 customers’ home loan redraw facilities in April 2020, before ASIC was able to raise any concerns regarding the bank’s communication and remediation plan. “This has been a disappointing experience for ME Bank and has had an avoidable impact on customer confidence,” said Hughes. “ASIC will continue to closely monitor ME Bank’s conduct and engage with the bank … to ensure a fair and transparent outcome for customers.”

Tax ‘reform’ = increase taxes. It’s that simple. Castor Chua

“I’m not an expert, but I don’t see the state government foregoing direct revenue from stamp duty without increased GST or a bigger share of that pie. Would other states agree to that? I also think that if the FHOG [First Home Owner Grant] is increased, the government should make it repayable if the property is subsequently sold at a profit. The recouped funds could then be put back into the scheme to make it more sustainable at the levels required to be effective. The current $10,000 grant is inadequate.” Steve

“ASIC are nothing but brainless thugs. CBA, Macquarie Bank and several others identified exactly the same issue and took the same action without event. Yes, ME’s timing was just plain stupid, but that does not remove their right to correct their systems…” Paul

“Agree, Paul. It seems they want to hold only the smaller lenders to account while letting the larger ones get away with anything. Let’s see how the Westpac AML breaches play out. If no one from the bank is held accountable by ASIC, then it will severely dent an already battered appearance.” OzBoy

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22/06/2020 2:19:30 PM

PEOPLE

Do you have a question for our broker mentors? Email your question to:

sarahmegginson@keymedia.com

BROKER ON BROKER

It’s not just lagging turnaround times that are bottlenecking brokers at the moment; it’s also the impact of conservative valuations. Louisa Sanghera, principal broker at Zippy Financial Group, says valuers erring on the side of caution are causing more than a few headaches

What trends are you noticing around property valuations right now? Valuations are starting to come A in lower. During the GFC, apparently many valuers got sued due to valuations being made too “high” for the market, so they have learned from that and they’re being more conservative now. They won’t go and visit a property to perform a

to their policies right now. There are so many variables: valuations, unemployment, JobKeeper. These are all affecting deals in progress, and of course it varies between lenders. We’ve had some deals in the queue with two particular lenders, and they have been waiting for 12 weeks now! They are just not staffed up to cope with the volumes. With other lenders, the turnaround time has

“We’ve had some deals in the queue with two particular lenders, and they have been waiting for 12 weeks now! They are just not staffed up to cope with the volumes” valuation unless they have a contract signed by all parties, and a lot of the official valuations are coming back lower than expected. I’ve just had a client’s apartment in Brisbane valued, and it’s come in $45k lower, which puts them at over 90% LVR. This is affecting the other property they own that they are trying to finance now, which is off the plan. What impact is this having, or could it have, on borrowers? I am so nervous for my clients A who are purchasing property. We are anxious every day at the moment, worrying about approvals, as many lenders are not even sticking

only been a few days. There is nothing we can do about that as a broker; they won’t accept escalations. What can brokers do to help their clients through these challenges? It’s all about communicating A clearly and educating the borrower so that they know what the risks are and the potential outcomes. We are doing our best to educate our clients and give them all the possibilities, including the best-case and worst-case scenarios. We are logging it in writing and on file so they cannot say they didn’t know, and also obviously to get them to think, do research and check

Louisa Sanghera, principal broker, Zippy Financial Group

everything carefully so they don’t get into trouble. Is it possible to go back to the lender and query a low valuation? very difficult to get a valuer A It’s to change their mind. They’ve made their decision and they stand by it. We’ve tried several times over the years but have only once succeeded. In a declining market, it’s difficult to argue against a low valuation.

Do you believe this trend towards very conservative valuations is here to stay or will remain for 2020? It depends on how long the A current situation goes on for. Until we are out of the COVID-19 pandemic and people start putting their houses on the market and the housing market picks up, then yes, I think the valuers will remain conservative in order to protect themselves. AB

PITSTOP MENTORING Are you new to the industry, or simply keen to learn from experienced brokers who have words of wisdom to share? This is your opportunity for pitstop mentoring! If you have a question you’d like a senior broker to answer, contact us and look out for an expert answer in a future issue.

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22/06/2020 2:20:13 PM

DATA

WESTERN AUSTRALIA

VICTORIA SPOTLIGHT

$150m housing investment expected to reduce decline in building pipeline Western Australia has already reported a 50% reduction in the homebuilding pipeline as a result of the COVID-19 outbreak, according to the Housing Industry Association. The Housing Industry Forecasting Group recently reduced its forecast for new dwelling commencements in WA in 2019/20 by 19% – from 15,500 to 12,500, the lowest level ever, adjusting for population. However, a $150m housing investment package is set to help prevent further reductions in WA’s building pipeline. “Supporting and sustaining job-creating sectors such as construction through the pandemic will be vital for economic recovery. It will create much-needed additional activity across the residential building supply chain,” says Cath Hart, HIA executive director for WA. The immediate focus of the stimulus is on refurbishing 70 homes across metro and regional areas. Construction of up to 500 affordable homes is planned. The package also includes $19.2m for 200 additional shared equity homes, delivered in partnership with Keystart. Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

Metro (H)

$470,000

-1.0%

-3.1%

$380

4.2%

Metro (U)

$370,000

0.0%

-2.6%

$350

4.9%

Country (H)

$335,000

0.0%

-0.5%

$360

5.7%

Country (U)

$195,000

-4.9%

-11.2%

$320

8.3%

TASMANIA

Homes sales are down in Tasmania, but land sales continue to increase

VICTORIA’S TEST OF RESILIENCE The state needs an immediate construction boost to stimulate demand for new homes and kick-start a recovery needs to address the impending downturn in its construction industry, says the Housing Industry Association, with housing starts in the state projected to be down by 12.7% this year. This decline is expected to extend into next year, with a further 33.8% drop in building commencements likely. Fiona Nield, the HIA’s executive director for Victoria, says the COVID-19 restrictions have resulted in lower sales and high numbers of cancellations. Homebuilding activity is thus likely to contract in the second half of the year. “This will see the market at a lower point in December 2020 than it was during the 1990s recession, so stimulating demand so that the existing housing workforce can be retained and can deliver the homes Victorians need this year has never been so important,” she says. Nield believes the property market would benefit from a range of measures, including the VICTORIA

MELBOURNE HOUSING PRICE STATS

Figures from the Real Estate Institute of Tasmania (REIT) show that sales of vacant land increased by 1.6% on an annual basis in April. “This is good news with the potential to assist the building industry as they have noticed a downturn in new building approvals,” says REIT president Mandy Welling. On the other hand, home sales have declined by 27.5%. Hobart, Launceston and the North West region all reported substantial drops in home sales of 36.8%, 39% and 12.3%, respectively. Of the three, only the North West managed to keep its prices stable. Hobart and Launceston registered respective price declines of 13.8% and 0.8%. Across the state, prices dipped by 2.2%. Despite the drop in sales and prices, buyers are still active, Welling says. In fact, properties are selling at 1.7% above their list prices. This could indicate that there is still competition in the market. Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

Metro (H)

$530,000

2.0%

8.7%

$470

4.9%

Metro (U)

$418,000

1.3%

7.3%

$400

5.3%

Country (H)

$335,000

2.3%

8.0%

$330

5.2%

Country (U)

$295,000

0.9%

4.6%

$270

5.2%

HomeBuilder stimulus for homebuyers, which offers builders of new homes access to $25,000 in funding. It would also benefit from planning and building reforms, stamp duty concessions and incentives for foreign investors, Nield says. Meanwhile, Leah Calnan, president of the Real Estate Institute of Victoria, says the state is in a good position to the COVID-19 impact. “There are many predictions circling about real estate and the economy in general, but looking at what the actual data tells us, the Victorian market is weathering the storm well,” she says. Calnan adds that house prices have not been as affected as sales volume, which remains much lower than expected at this time of year. “The Victorian market continues to show strong resilience; with the return of public auctions and easing of some restrictions, we expect the market to soon start gaining the momentum it lost due to the pandemic,” she says.

Source: Real Estate Institute of Victoria/CoreLogic

DOM

Yield

Average number of days on market was 32 during the March 2020 quarter

March quarter average rental yield for units was 3.6% and for houses 2.8%

Vacancies

Units

Metro Melbourne reported an increase in house vacancies to 2.5% in April

Median sale price of units in metro Melbourne was $575,000 in the March quarter

Houses

Median sale price of houses in metro Melbourne was $727,000 in the March quarter

SUBURB TO WATCH: BALLARAT CENTRAL Median price (houses) $540,000

Median price (units) $305,000

12-month growth

3-year growth

Average annual growth

Indicative gross rental yield

26%

44%

8.4%

12-month growth

3-year growth

Average annual growth

Indicative gross rental yield

16%

23%

5.6%

www.brokernews.com.au

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AUSTRALIAN CAPITAL TERRITORY

Canberra is well positioned to weather the pandemic-led impact on its market The fundamentals are very strong for the medium to long term in certain Brisbane, Canberra and Adelaide submarkets, says Richard Sheppard, chief property investment adviser at inSynergy. Canberra, in particular, offers robust yields of 4.5–6%, which make it attractive to property investors. “We also believe the risk of COVID-19 pushing these markets backwards is quite low,” he says. A recent Herron Todd White report adds that the Canberra residential market has been historically stable, with consistent growth. It has solid market fundamentals such as low unemployment, aboveaverage annual incomes, and a strong government and public sector employment base. “We don’t tend to see the spikes and falls like some other markets, but general stability,” says Angus Howell, local expert at Herron Todd White. “The outlook for the remainder of the year is difficult to predict. The landscape changes very quickly; however, the stable market conditions mentioned hold the Canberra residential property market in good stead.” Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

Metro (H)

$700,000

1.5%

4.6%

$580

4.4%

Metro (U)

$440,000

0.7%

2.6%

$480

5.7%

NORTHERN TERRITORY

The NT’s property market is yet to show any significant hit from the coronavirus

HIGHEST-YIELD SUBURBS IN VICTORIA Suburb

Property

Gross rental

Median

Quarterly

12-month

Average

type

yield

price

growth

annual growth

MALLACOOTA

17%

$422,500

34%

5.1%

CAPE PATERSON

12%

$565,000

21%

6.2%

NHILL

10%

$118,000

-15%

-24%

2.0%

MORTLAKE

10%

$162,000

-2%

1.4%

WARRACKNABEAL

$118,000

3.8%

DIMBOOLA

$120,000

-17%

4.6%

MURTOA

$122,560

15%

5.3%

DONALD

$142,500

-8%

3.9%

HEYWOOD

$170,000

-3%

-1%

0.6%

ROSEDALE

$215,000

-7%

-24%

3.9%

Will Johnson, local expert at Herron Todd White, says sales agents in the NT are reporting a “stable level of interest” in existing housing market stock. “Real estate agents have shifted to online auctions using the Gavel app, which has resulted in a handful of sold dwellings,” he says. However, while some vendors are motivated and taking action, others are taking a more cautious ‘wait and see’ approach. Johnson says there have not been any market reductions that are out of line with recent market conditions, due to the pandemic. Long-term residential tenancies, for instance, have remained steady. Requests for rent reductions have been relatively low, and rental arrears are still in check. “We are yet to see any firm market evidence [that] the pandemic has resulted in lower rents or capital values; the big test as we look through the forward lens is the speed at which social restrictions are lifted, and the time it takes to reopen the economy,” Johnson says. Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

Metro (H)

$470,000

-0.9%

-5.1%

$480

5.4%

Metro (U)

$287,500

0.0%

-10.4%

$360

6.2%

Country (H)

$435,000

0.6%

-4.7%

$500

6.3%

Country (U)

$305,000

-2.9%

-6.0%

$373

6.5%

www.brokernews.com.au

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DATA

QUEENSLAND

Construction industry foundations not strong enough to bear brunt of COVID-19 According to the Real Estate Institute of Queensland, total dwelling approvals in the state dropped by 1.8% in March. This could be due to the halt in immigration. While Australia is starting to recover from last year’s slump in approvals, Queensland has failed to keep up. Annual dwelling approvals across the country grew by 1% – the state, on the other hand, experienced a decrease of 7.8%. Paul Bidwell, deputy CEO of Master Builders, says the residential sector lacks the strong foundations needed to face the impact of COVID-19. “The 12-month total of dwellings in Australia isn’t far off the post-GFC low point – and that’s without the impact of COVID-19, which we don’t expect to really begin to hit until August or September 2020,” he says. Mike Roberts, Housing Industry Association executive director for Queensland, says, “The long lead times associated with building a home mean that stimulus is required now to lessen the impact later in the year.” Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

Metro (H)

$538,000

0.0%

1.3%

$420

4.0%

Metro (U)

$385,000

0.0%

0.8%

$390

5.2%

Country (H)

$435,000

-0.4%

1.1%

$400

4.7%

Country (U)

$378,000

0.7%

0.0%

$355

4.9%

This week saw the combined capital city preliminary auction clearance rate improve, with 63.3% of homes selling at auction. The higher clearance rate was against a higher volume of auctions, with 1,164 properties scheduled for sale in the busiest week for auctions since the week ending 19 April. Last week, there were 711 scheduled auctions with a preliminary clearance rate of 59.8%, later revising down to 56.2% at final figures. While volumes remain lower than one year ago, the gap was less significant this week, with 1,505 auctions held one year ago, when 61.8% cleared. Both Melbourne and Sydney returned preliminary clearance rates above 60% this week, with Sydney the better performing of the two largest cities. There were 474 Melbourne homes taken to auction with a 61% success rate, which was more than double the volume of auctions held last week (195), when a final clearance rate of 60.1% was recorded. Sydney’s preliminary figures saw 67.3% of homes successful at auction last week, with 532 auctions held across the city, higher than the 398 last week, when 56.8% sold.

Total auctions

Cleared

Uncleared

14 57.6%

Clearance rate

PERTH Total auctions

Cleared

Uncleared

8 20%

Clearance rate

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

Sydney Melbourne Brisbane

Adelaide

Perth

Units

Darwin

$442,500

$713,000

$536,500

$365,000

$525,000

Hobart

$215,000

$329,500

$100,000

$455,000

$200,000

$370,000

$300,000

$445,000

$500,000 $400,000

$357,500

$600,000

$495,000

$700,000

$574,400

$800,000

$687,000

Over recent weeks, the NSW capital has consistently reported clearance rates of above 70%. Leanne Pilkington, president of the Real Estate Institute of NSW, says this shows signs of buyer confidence. “REINSW member agents and auctioneers indicate that properties have been comfortably exceeding their reserve. As we know, when demand outstrips supply, property prices don’t tend to fall,” Pilkington says. However, she believes vendors are still testing the waters due to the uncertainties of the COVID-19 crisis. “Lack of stock could well be the issue for the market as purchasers are still keen to buy. Hopefully, that will turn around once vendors come to understand that the world hasn’t collapsed,” she says. “Property is a long-term asset acquisition; it cannot be lumped in with share-market volatility. We cannot predict what will be happening in the housing market in six months’ time, but the data makes it clear; it is not collapsing around us right now.”

Houses

$900,000

$665,000

Sydney’s auction market continues to lead other states in terms of clearance rates

Canberra

CAPITAL CITY HOME VALUE CHANGES Capital city

Weekly change

Monthly change

Year-to-date change

12-month change

Sydney

-0.2%

-0.6%

3.7%

14.1%

Melbourne

-0.3%

-0.9%

1.2%

11.3%

Brisbane

0.0%

-0.2%

1.9%

4.5%

Adelaide

0.0%

0.3%

1.6%

2.0%

-0.4%

-1.0%

0.0%

-2.4%

-0.2%

-0.7%

2.3%

9.7%

Metro (H)

$927,000

1.1%

-0.3%

$550

3.1%

Metro (U)

$717,000

1.1%

-0.6%

$530

3.9%

Perth

Country (H)

$485,000

0.4%

2.6%

$400

4.3%

Combined 5 capitals

Country (U)

$424,500

1.2%

2.4%

$350

4.3%

ADELAIDE

MEDIAN HOUSE AND UNIT PRICES

NEW SOUTH WALES

Area

WEEK ENDING 14 JUNE 2020

$812,000

Area

CAPITAL CITY AUCTION CLEARANCE RATES

*The monthly change is the change over the past 28 days

www.brokernews.com.au

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22/06/2020 2:22:01 PM

BRISBANE CANBERRA Total auctions

Cleared

Uncleared

Clearance rate

Total auctions

Cleared

Uncleared

19 51.3%

Clearance rate

75.8%

SYDNEY Total auctions

336

Cleared

226

Uncleared

110 67.3%

Clearance rate

TASMANIA

MELBOURNE Total auctions

344

Total auctions

Cleared

210

Cleared

Uncleared

134

Uncleared

Clearance rate

61.0%

SOUTH AUSTRALIA

Area

n.a.

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental yield

rent

Affordable entry price and stable property values keep market steady The state is one of the most consistent property markets in Australia, given the steady demand, solid local economy and housing affordability, says Emma Slape, CEO of Turner Real Estate. “We are seeing more and more young interstate people buying in Adelaide to get their foot into the property market – while they continue to rent interstate,” she says. Adelaide’s rental market is also in good shape. In fact, even with the increase in housing stock in April, Adelaide still has one of the lowest vacancy rates of all capital cities at 1.2%, according to SQM Research. Slape says the SA housing market, in general, is not vulnerable to extreme price fluctuations. “This will help hold our prices a little firmer. There is still activity in both the rental and sales market, and this is expected to continue along, just at a slower pace than we have seen previously. In the next few years, we may not see strong price growth, but more so stability in pricing,” she says.

Metro (H)

$465, 000

0.0%

1.8%

$385

4.4%

Metro (U)

$326,172

-0.4%

0.1%

$330

5.1%

Country (H)

$280,000

0.0%

1.9%

$270

5.1%

Country (U)

$210,000

0.0%

$210

5.2%

Source: Except where otherwise stated, all data sourced from CoreLogic, June 2020

NICK YOUNG: TRAIL BOOK SALE EXPERT Smart succession planning starts early Maximise the sale of your trail book and business as a whole 03 8508 6666 | 0417 392 132 | nyoung@trailhomes.com.au | trailhomes.com.au www.brokernews.com.au

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PEOPLE

Aggregator: AFG

IN THE HOT SEAT

Over a decade ago, Josh Bartlett, founder and managing director of MAB Melbourne, made the pivot from personal training into mortgage broking: ‘I was telling people how to do push-ups one day, and how to get a loan the next!’

What was your first job before you entered the finance industry? After studying for a business degree at uni, I started a gym! We ended A up running two gyms for 11 years, before I became a broker. I’ve now been self-employed for 20 years, with nine of those years as a broker. People think it’s so different, but I think that as a broker I am able to do what I do because I owned a gym and had so many different clients walking through the door: wealthy clients, those on normal wages, those who were just getting by. You get to know so many different personalities, and that has made me a better broker.

What inspired you to get into the mortgage broking business? was about 32 and had two young kids, and I decided it was A Itime for a different career with more suitable hours. My wife is a real estate agent and we’d bought and sold a few properties and met a few different brokers. I’d always understood the structure and finance part of buying a home, and I understood negative gearing, all of these different things, so broking just made sense to me. We’ve now written $1.1bn in loans, and this year we’re on track to hit over $200m again.

What has surprised you most during your career in finance? much education is involved. I always aim to educate A How my clients; it’s the biggest part of my business. No one ever learns about money at school. I didn’t learn too much about money from my parents either, but a decade of being a personal trainer and running a business taught me to value it: you start to realise how important cash is because it’s actually sitting in your hand, and you’ve exchanged an hour of your time for a cash amount.

What is one thing you wish everyday borrowers knew about finance or debt? When I was a kid I saved up for rollerblades, and after buying A them I had $0 left. If I saved up $1,000 and bought a stereo from Brashes, then at the end after buying the stereo, I had nothing. Then

I saved for a car, and I had zero dollars left. We always get back to zero, but I want people to reset their zero balance to be above zero. Once you have saved $5,000, that becomes your new zero and you’re not allowed to spend it. Now, most people go, ‘I’ve got $5k, I’m going to Bali’. But I work with my clients to help them get their zero balance up and up. I’ll call a client and I don’t ask how much is in their offset account; I say, “What’s your zero balance?” It’s a really powerful way to save money. AB

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16 OCTOBER 2020 • THE STAR SYDNEY

THANK YOU FOR YOUR NOMINATIONS Australian Broker would like to thank its readers for the incredible response to the call for nominations for the 2020 Australian Mortgage Awards. It’s great to see so many talented professionals and organisations who have excelled over the past year. Finalists will be announced in September. Winners will be revealed live and celebrated at the highly anticipated black-tie awards gala on 16 October at The Star Sydney.

BE PART OF THE INDUSTRY EVENT OF THE YEAR Visit australianmortgageawards.com.au for table reservations or sponsorship opportunities

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