Australian Broker 18.10

MAY 2021 ISSUE 18.10

RYAN GAIR Self-employed specialist and mortgage manager Rate Money is growing rapidly and is successfully achieving its goal to provide Australia’s self-employed borrowers with the loan solutions they need /14 ALSO IN THIS ISSUE… Aggregators Mortgage Choice study shows millennials are leading the property push /06 Technology Agility Capital introduces streamlined broker platform for SME loans /08 Non-bank lenders secure big funds Resimac and La Trobe Financial are celebrating large RMBS deals /04

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Australian Mortgage Awards It’s time to get your entries in for the 2021 Australian Mortgage Awards /18

Small business loans on the rise Lenders ensure brokers have plenty of loan options for small businesses /20

In the hot seat One Stop Loans owner Anusha Haran on her broking career /30

24/05/2021 3:42:38 pm

NEWS

IN THIS SECTION

Lenders La Trobe Financial, Resimac notch up huge funding deals /04

Aggregators Millennials keenest to buy property, report shows /06

Market Housing construction costs expected to rise /10

Industry bodies HIA appoints second female national vice president /12

Technology Asset finance provider rebrands with new broker platform /08

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

FEWER U.S. RENT, MORTGAGE PAYMENTS BEING MISSED — STUDY Mortgage Bankers Association (MBA) and Research Institute for Housing America (RIHA) have announced the results of a study of US rental and mortgage payments in March. They found that 7.7% of renters (2.56 million households) and 4.9% of homeowners (2.33 million households) missed, delayed or made a reduced payment in March. That’s an improvement on the results in December 2020. The MBA and RIHA found that 23.7% of renters and 14.2% of homeowners have missed at least one housing payment since March 2020, but only 8.6% of renters and 6.8% of homeowners missed more than two payments. “Things are improving slowly, but the effects of the pandemic persist into the first quarter of 2021,” said MBA associate vice president of housing economics Eddie Seiler.

THE

www.brokernews.com.au MAY 2021 EDITORIAL

SALES & MARKETING

Editor Antony Field

Publisher/Sales Manager Simon Kerslake

News Editor Mike Wood

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ART & PRODUCTION

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FANNIE MAE CFO LATEST SENIOR EXEC TO QUIT MORTGAGE GIANT chief financial officer Celeste Mellet Brown intends to leave her position, according to a recent filing with the US Securities and Exchange Commission. Brown, after four years as the mortgage giant’s CFO, was due to resign on 28 May. During her tenure at Fannie Mae, she oversaw the company’s financial management functions. Brown also led the GSE’s corporate strategy involving strategic planning and economic research. Prior to this she spent 18 years at Morgan Stanley. Brown’s departure is the latest in a string of senior exits from Fannie Mae. Other chief executives to walk out the door have included Andrew Bon Salle (former head of the single-family business), Jeffery Walker (chief strategic officer for single-family), Desmond Smith (chief customer officer), and John Forlines (chief risk officer).

FANNIE MAE

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CANADIAN FIRST HOME BUYERS WORRIED ABOUT DOWN PAYMENTS many as three out of four first-time Canadian homebuyers are worried that they AS will not have big enough down payments to purchase their desired properties, according to a survey by mortgage insurance giant Sagen for Royal LePage. The poll found that, this year, 75% of first-time homebuyers in Toronto (compared to 68% in 2019), 69% in Vancouver (58% in 2019) and 63% in Montreal (60% in 2019) are anxious over their down payments. Nationally, 62% of survey respondents said they were worried they might miss out on their desired homes because they might fall short on their down payments. “First-time homebuyers in all regions, with the exception of Alberta and the Prairies, reported higher rates of anxiety compared to the same survey in 2019,” the survey said.

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This magazine is printed on paper produced from 1OO% sustainable forestry, grown and managed specifically for the paper pulp industry Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Australian Broker magazine can accept no responsibility for loss. Australian Broker is the most-often read industry publication, according to independent research carried out by the Ehrenberg-Bass Institute for Marketing Science at the University of South Australia in December 2008. The research also found that brokers rate Australian Broker as the best for both news content and feature articles, followed by sister publication MPA. Overall, on all categories, Australian Broker ranks top followed by MPA. The results were based on a sample of 405 respondents who were the subject of telephone interviews.

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24/05/2021 11:10:29 am

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24/05/2021 11:10:44 am

NEWS

LENDERS ANZ MOULA ANNOUNCES JOINS PANEL PROFIT AT OF AGGREGATOR ALMOST $3BN FAST has reported strong results for the first half of 2021, posting a statutory profit of almost $3bn. That marks a 113% rise on the period up to March 2020, and 45% on the second half of 2020. Cash profits were up 28% on SH20, and the proposed interim dividend to shareholders will be 70c per share. ANZ said it had provided around 92,000 new home loan accounts in the previous half year, lifting it above NAB to become the third-largest provider of mortgages.

ANZ

NAB DOUBLES DIVIDEND AFTER $3.34BN PROFIT has exceeded expectations by posting a first-half 2021 profit of $3.34bn. Its interim dividend to shareholders will be double last year’s, rising to 60c a share. NAB’s statutory net profit was $3.21bn, largely due to the rise in the Australian economy, fuelled by the COVID-19 recovery and huge growth in the housing market.

“The rebound in the Australian and New Zealand economies from COVID-19 has been better than expected,” said CEO Ross McEwan.

Martin Barry, chief financial officer, La Trobe Financial

Daniel Carde, general manager distribution, Resimac

NAB

“The proceeds of this $1.25bn [RMBS] issue will be used by La Trobe Financial to continue writing home and business loans for everyday underserved Australians” Martin Barry CFO, La Trobe Financial

Greg O’Neill President and CEO, La Trobe Financial

NON-BANK LENDERS PROVE STRENGTH WITH MASSIVE FUNDING DEALS The non-bank sector is enjoying tremendous growth, with La Trobe Financial and Resimac securing record amounts in residential mortgage-backed securities deals lender La Trobe Financial has announced a record residential mortgage-backed securities transaction priced at $1.25bn.

It is the biggest deal the group has achieved since before the GFC. The transaction is the lender’s first of 2021 and represents the confidence La Trobe Financial can now command from investors.

It has fully repaid $30bn in debt since 2014 and is continually growing new business in the home loan market.

All notes were oversubscribed, showing how much confidence funding houses have in La Trobe NON-BANK

Financial. In particular, the non-bank’s strength in writing home loans for self-employed Australians, an inadequately serviced part of the mortgage marketplace, has built its reputation.

La Trobe Financial’s average LVR is 71%, and no mortgages are priced at over 80% LVR, making its risk lower than that of many other lenders in the sector.

“We are very pleased with the record pricing this RMBS transaction has achieved, proving the ongoing appetite of our global investor base for our high-quality assets,” said La Trobe Financial CFO Martin Barry.

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“The proceeds of this $1.25bn issue will be used by La Trobe Financial to continue writing home and business loans for everyday underserved Australians at a time when credit formation has never been so vital.”

Non-bank lender Resimac also recently announced its second huge RMBS deal this year involving a $1bn transaction.

The group closed its Resimac Bastille Series 2021-1NC non-conforming transaction on 5 May, following a $1.5bn deal struck in mid-March.

That prior deal was Resimac’s largest since 2006.

“This latest RMBS issuance enables us to continue supporting the many small businesses and self-employed Australians with access to credit at a time it could make a material difference,” said Resimac general manager distribution Daniel Carde.

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

E A S T WO O D S E C U R I T I E S . C O M . AU Australian Credit Licence N o .385467

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24/05/2021 11:11:25 am

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24/05/2021 11:11:32 am

NEWS

A G G R E G AT O R S AFG COMPLETES $750M RMBS TRANSACTION wholly owned subsidiary AFG Securities Pty Ltd has successfully priced an upsized $750m residential mortgage-backed securities issue, its 11th issue since 2013, taking the total to $4.825bn.

CEO David Bailey said, “We are very pleased to be able to upsize the transaction from $500m to $750m with the support of new and returning investors. AFG Securities mortgages continue to perform well, and the broker proposition in the Australian home lending market has never been stronger.”

AFG’S

LENDI CEO EXCITED ABOUT AUSSIE MERGER Lendi CEO David Hyman is upbeat about the merger of Aussie Home Loans and Lendi, which was completed on 4 May. “It feels very, very good,” Hyman said. “We’ve had great feedback in both businesses. There’s been a journey to get through. There’s a small group of us both at the Aussie and Lendi side that have been working hard at this for many, many months. The merger will bring the best of the Lendi online platform and meld it with the iconic Aussie brand.”

NEW

Susan Mitchell, CEO, Mortgage Choice

MILLENNIALS EAGER TO BUY PROPERTY, SAYS MORTGAGE CHOICE REPORT A new study by the aggregator shows that millennials are leading the charge in terms of the generation that most wants to purchase a home are more confident about buying a house in Australia than any other demographic, according to a survey by broker network and aggregator Mortgage Choice.

One in two millennials, also known as Generation Y, believe that now is good time to buy a house, reflecting more confidence than shown by other age groups. In total, 42% of respondents believe that now is a good time to buy property, even considering the current housing boom that has seen prices skyrocket.

MILLENNIALS

“If it’s cheaper to buy than to rent in a place that you would like to live, then it’s crazy to keep renting” Susan Mitchell CEO, Mortgage Choice

Commercial Loans

According to Mortgage Choice CEO Susan Mitchell, the so-called fear of missing out (FOMO) is a major driver of homebuying intentions among the 30- to 40-year-old age group.

“It’s interesting, because our research showed that FOMO is a big part of it,” she said. “They’re conflicted – they know that this is the right time to buy from an interest rate point of view, but they’re seeing the prices surge.

Forty-two per cent of Australians still think that it’s a good time to buy, and millennials are the most confident, with about 45% of them thinking that it’s a good time.

That’s almost half, and I think it is FOMO that is quite an important part of that.”

Given how steep prices currently are, this might not seem the best time to venture into the property market, but as the survey results show, Australians’ confidence in property is near limitless.

“As an American, I would say that Australians are ever-optimistic about property, they love it,” said Mitchell. “I think if they see the prices continue to go up, they think that they won’t have the opportunity to get onto the property ladder.

It’s interesting because there’s a lot of press right now about it being cheaper to buy in some suburbs than to rent. If it’s cheaper to buy than to rent in a place that you would like to live, then it’s crazy to keep renting.

“It’s a really good time to go talk to a home loan expert, see what you can borrow, get a pre-approval and start looking.”

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24/05/2021 11:13:44 am

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24/05/2021 11:14:14 am

NEWS

TECHNOLOGY CREDITORWATCH PRAISES GOVT’S DIGITAL INVESTMENT reporting agency CreditorWatch has welcomed the digital technology initiatives announced in the Federal Budget. The $1.2bn fund for the digital economy strategy has allotted $100m for building digital skills, including a pilot for work-based digital cadetships, $124m for AI investments and $15.3m for e-invoicing. CreditorWatch chief economist Harley Dale said, “It’s especially pleasing to see the federal government allocate funding to e-invoicing, which will help speed up payment times across every industry.”

CREDIT

UBANK RAISES ITS LVR THRESHOLD, WAIVES LMI is offering a solution for borrowers who are struggling to save a large enough deposit to get onto the property ladder. It has raised its LVR threshold to 85% and waived the requirement to pay LMI. This new proposition by the bank aims to help bring first home buying business its way. “We look forward to continuing to offer really sharp, customerfocused home loan products as we move forward with our 86 400 partnership and begin working with their broker lending business,” said UBank CEO Philippa Watson.

UBANK

“We really listened to what our brokers wanted from us, and this [broker submission platform] is a direct response” Fanee Amanatidis General manager, Agiliti Capital

Fanee Amanatidis, general manager, Agiliti Capital

ASSET FINANCE PROVIDER REBRANDS, LAUNCHES NEW BROKER PLATFORM Melbourne-based NLG Leasing has changed its name to Agiliti Capital and upgraded its broking platform to streamline applications well-established company in Australia’s asset finance space has rebranded and launched a new platform for brokers. NLG Leasing has changed its name to Agiliti Capital and its new broker submission platform will streamline their applications. “ ‘Agiliti Capital’ reinforces our value proposition of being agile in our service and our offering,” said general manager Fanee Amanatidis.

“It positions our company where we are now and where we’re heading in the future. The spelling with the three i’s was a conscious decision to resemble our three pillars of strength: knowledge, expertise and A

service. The [word] ‘capital’ reflects the broader market that we play in.”

Agiliti’s new custom-built Swift submission platform represents a simpler proposition for asset finance brokers, using AI to make the loan application process far more accurate, intuitive and efficient.

“The best way to describe it is three words: easy, easy and easy,” said Amanatidis. “We really listened to what our brokers wanted from us, and this is a direct response. They wanted an easier way to refer their clients to us.

“We switched over to a new platform 18 months ago, and it was

fantastic, but it was specifically an asset finance subject matter experience platform. That is what we do, but trying to get our members to jump into that was a bit much: they didn’t want to have to learn another system when they had their own. Hence, Swift came along and made it really easy.

“What our brokers wanted was fast responses in real time, to be able to just name a number for a spot and refer and then jump into Swift for full app commercial deals. The transparency that both will offer is an advantage. Getting notifications of progress on clients’ deals straight into the inbox was really important, rather than having to use different platforms.”

She adds, “It offers everything you would expect in today’s age for a client portal, an interview mode and all the APIs you could like from third party providers, such as bank statements or Equifax.”

FEDERAL GOVERNMENT’S $1.2BN INVESTMENT IN DIGITAL ECONOMY

$100m

$124.1m

30%

to support digital skills, including a new work-based digital cadetships pilot program

to build artificial intelligence capabilities, including a National Artificial Intelligence Centre

$12.7m

$111.3m

$50m

to help SMEs build their digital capacity through expansion of the Digital Solutions – Australian Small Business Advisory Service

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to accelerate rollout of the Consumer Data Right in banking, energy and telecoms

digital games tax offset to support Australia’s involvement in the $250bn global game development market

to enhance cybersecurity in government, data centres and telecoms networks

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24/05/2021 11:24:31 am

NEWS

MARKET PROPERTY ENTHUSIASM STARTING TO WANE — REPORT has been a sudden turnaround in housing sentiment despite favourable market conditions, according to ME’s latest Quarterly Property Sentiment Report.

Overall sentiment among buyers and sellers dropped over the last three months from the record high of the first quarter of 2021. First home buyers reported the lowest level of positive sentiment, while investors recorded the highest. ME head of home loans and personal banking Claudio Mazzarella said this was the opposite of what happened last year when prices started to fall due to the pandemic.

THERE

BUSINESS CREDIT DEMAND RETURNS TO NORMAL

Tim Lawless, research director, CoreLogic

HOUSING CONSTRUCTION COSTS RISE BY 0.8% IN MARCH QUARTER Construction costs have increased at a slower pace than average, but higher home building costs are imminent as dwelling approvals surge, says CoreLogic construction costs went up over the three months to March 2021, according to new data from CoreLogic.

CoreLogic’s national measure of residential construction costs, known as the Cordell Housing Index Price (CHIP), rose by 0.8% during the March quarter – the sixth consecutive quarter in which costs have risen by 1.0% or less.

The first index for 2021 showed national residential construction costs increased by 3.3% annually.

The CHIP index measures the rate of change of construction costs in the residential market and covers freestanding and semi-detached single and two-storey dwellings.

NSW’s CHIP index remained HOUSING

flat quarter-on-quarter, with 0.7% growth in the first three months of 2021, bringing annual growth to a slightly lower 2.9%.

Victoria’s CHIP index grew by 0.8%, up on the 0.6% growth over the previous quarter. Annual growth was 3.4%.

Queensland’s quarterly CHIP index growth fell from 1.8% to 0.8% in the March quarter, while SA’s rose 0.8% over the March quarter and annual growth was 2.8% – the lowest of all states. WA’s index rose by 0.9% over the quarter.

Meanwhile, the consumer price index (CPI) rose by 1.1% over the year to March 2021.

According to the ABS, the total number of dwellings approved rose by 17.4% in March, down on the

credit demand has recovered to pre-pandemic levels, driven by an upswing in demand for asset financing, according to the latest Equifax Quarterly Business Credit Demand Index. The report shows solid commercial demand over the first quarter of 2021, with overall business credit going back up to the level it was at before the border closures and lockdown measures were implemented in response to COVID-19. Credit information requests for asset finance increased by 8.9% over the first quarter of this year, the report says, boosting credit activity during that period.

BUSINESS

20.1% increase in February.

Employment in the construction industry fell by 1.5% over the March quarter.

CoreLogic’s national home value index showed that home values increased by 2.8% in March, the fastest rate of appreciation since October 1988 (3.2%).

“With dwelling approvals surging in response to the recently expired HomeBuilder grant, the residential construction sector is moving into what is likely to be an extended period of activity,” said Tim Lawless, research director at CoreLogic.

“Construction costs were up 0.8% over the March quarter, slightly below the decade average rate of growth and with little in the way of variation across the states.

“Although construction costs rose at a slightly slower than average pace last quarter, it’s likely future quarters will record a more substantial lift in construction costs as shortages of both materials and labour add some upwards pressure on prices,” Lawless said.

“It’s likely future quarters will record a more substantial lift in construction costs as shortages of both materials and labour add some upwards pressure on prices” Tim Lawless Research director, CoreLogic

INDEX OF RESIDENTIAL CONSTRUCTION COSTS, MAR 2015—MAR 2021 Source: CHIP Cordell Building Indices May 2021, CoreLogic

National CHIP index

NSW CHIP index

Vic CHIP index

Qld CHIP index

WA CHIP index

SA CHIP index

330 310 290 270 250 230 210 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21

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TECHNOLOGY UPDATE

EARLY ADOPTERS OF DIGITAL TECH GAIN A COMPETITIVE ADVANTAGE the wake of the COVID-19 outbreak it has become clear that people’s relationship with technology has changed.

And there’s no going back to pre-pandemic thinking as we all move on with the ‘new normal’.

The COVID-19 pandemic has created a greater reliance on evolving digital tools. But despite its broad adoption, some have learned that it’s better for business to stay ahead of the game rather than play catch-up.

Early adopters of digital technology haven’t simply survived the last 12 months, they’ve thrived, which is forcing a rethink in the minds of many who previously assumed a conservative, wait-and-see approach to the take-up of state-of-the-art tech tools that have served brokers for years.

“One of the lessons learned from the pandemic has been: don’t rely on necessity to be the driving reason to adopt tech tools,” says NextGen.Net Senior Customer Success Manager Amanda Ray. As the pandemic pushed business operations online, the adoption of digital tools and the need to operate digitally became a necessity. Yet despite digitisation reshaping the landscape, resistance to technological change has persisted.

“Change resistance is understandable because brokers confront so much change, especially when it comes to regulation and policy. I’m sure it can be quite overwhelming,” says Ray. “But if you wait for external circumstances, such as what happened during the pandemic, to take up tools that are already out there, you’re immediately on the back foot.

“ApplyOnline’s electronic signatures and digital verification tools were available pre-pandemic, but they weren’t heavily utilised.

It was only when restrictions prevented face-to-face contact that identifying customers became an issue and accelerated the move to the digital space.

“What brokers need to understand is that embracing these tools early on is the key to IN

Amanda Ray, Senior Customer Success Manager, NextGen.Net

“Embracing these tools early on is the key to adaptability when change inevitably occurs” adaptability when change inevitably occurs,” adds Ray. The primary objective of the NextGen.Net Customer Success team, which Ray heads, is to increase awareness of ApplyOnline tools and features as they become available by working with brokers, aggregators and lenders directly.

“The reason people don’t grasp change is often complex,” she says.

“But if they know our training is free and will help them make the most of the platform, which in turn will increase their efficiency and speed, hopefully they will take advantage of the offer.”

NextGen.Net has invested heavily in building a training program for all new and existing ApplyOnline users and is dedicated to supporting businesses to make the most of the platform’s many time-saving features.

The NextGen.Net ‘ApplyOnline

Efficiency’ training program is also CPD accredited by the MFAA, FBAA and CAFBA. When the COVID-19 social distancing rules came into effect, NextGen.Net also pivoted its complimentary face-to-face broker and lender training sessions towards digital webinars.

Ray notes that training for lenders can be targeted and customised to their needs.

“We are quite open to attending clubs or clusters or coffee sessions.

Our whole aim is how to make lending easy,” she says.

“Demand for the ApplyOnline Efficiency training program changed dramatically during the pandemic. We adapted the content to make sure it was covering key issues being raised in conversations with BDMs and support teams.

“We were in high demand as

more lenders enabled their electronic signing and Document Verification Service tools in ApplyOnline.”

For brokers, embracing ApplyOnline’s tech tools can bring many benefits. It can help to create a paperless office (through supporting document management and online submission); support audit trails (showing customer history); support workflow through integration from CRMs; and allow brokers to order valuations when they’re needed – all within the platform to hasten approval turnaround times.

The capabilities of inbuilt tools within ApplyOnline create efficiencies that can liberate brokers to focus on ‘building their business’ rather than focusing on time-consuming, lengthy application processes.

“Some brokers who are averse to change will sometimes say it’s because they don’t want to compromise the personal service they offer. What they fail to understand is that ApplyOnline can only enhance their service, not replace it,” says Ray. An array of ApplyOnline tools were readily available and on the market when the pandemic struck, but their quick adoption from the onset by both brokers and lenders helped boost calls for further digitisation of the mortgage process throughout the industry.

Ray says the feedback from brokers who used ApplyOnline tools to help them continue to do business during lockdown and restrictions has been invaluable.

“Many brokers spoke of it broadening their reach in terms of who they could do business with and the speed with which they can turn applications around so they can focus on the next one.

“The other resounding feedback has been brokers saying to me they wished more lenders had these tools available and asking me what we’re doing to encourage others to pick them up!

This standardisation of tools available across all brokers panel lenders is something we strive for,” says Ray.

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NEWS

INDUSTRY BODIES THUMBS UP FOR BUDGET BACKING NEW HOMEBUYERS MFAA and FBAA have welcomed the federal government’s budget efforts to help single parents and first home buyers.

The Family Home Guarantee will assist single parents to buy homes by dropping the minimum deposit to 2%. MFAA CEO Mike Felton said the association supported all measures targeted at solving the real challenges facing Australian homebuyers. FBAA CEO Peter White also commented that homeownership had become more difficult in recent times “so these initiatives are urgently needed”.

THE

BEWARE CRYPTOCURRENCY SCAMS, SAYS ASIC is warning consumers to beware of scammers promoting fake articles on social media. The regulatory body said it was receiving an increasing number of reports from consumers who have lost money after responding to advertisements mostly promoting crypto-assets or cryptocurrency and contracts for difference trading.

ASIC said it had also seen advertisements and websites falsely using ASIC logos or misleadingly saying the investment was “approved” by ASIC. It is urging consumers to report such scams to its website: asic.gov.au.

ASIC

“I want Australians to have confidence in our industry, in the products and materials we use and the homes we deliver every day for thousands of families” Debbie Johnson National vice president, HIA

Debbie Johnson, national vice president, Housing Industry Association

HIA BUILDS PATH FOR WOMEN WITH APPOINTMENT TO VP ROLE Respected building industry business owner Debbie Johnson is the newly appointed HIA national vice president and the second female to hold this important position Housing Industry Association has appointed Debbie Johnson as its new national vice president. The second woman to be elected to this position, Johnson is a highly experienced and well-regarded building designer and builder based in Queensland.

The HIA said Johnson would bring strong skills to the role as she had run her own business for 35 years and was involved in a range of industry and government boards.

Johnson was appointed as HIA Queensland regional president in 2013 and to the association’s national board in 2017. She was integral to the setting up of the HIA’s Building Women Awards in Queensland, which is in its seventh THE

year in 2021. She supported the program’s national expansion and has shared her career journey, speaking at many Building Women events over the last five years.

Johnson said she wants to carry on the good work of her predecessors and represent the HIA’s core values.

“HIA is the trusted voice of the housing industry that has represented our members and promoted the industry more broadly since we were established in 1945,” she said.

“Today, just as then, we are one voice, strengthened by our members who give their knowledge, experience and time generously – and we are

supported by the exceptional HIA team who work in our national and regional offices.

“I want Australians to have confidence in our industry, in the products and materials we use and the homes we deliver every day for thousands of families.”

Meanwhile, new data from the HIA’s monthly new home sales report across the five largest states shows that new home sales decreased in April as the HomeBuilder scheme ended.

HIA economist Angela Lillicrap said new home sales “fell in April to be 54.4% lower than March as HomeBuilder came to an end”.

Despite the drop, Lillicrap said the result for April 2021 “is an encouragingly strong result”.

“It suggests that there is a significant volume of new homes to be built for customers not eligible for HomeBuilder. Sales in April 2021 are just 2.7% lower than the average month prior to the COVID shock.”

THREE-YEAR TREND IN PRIVATE NEW HOUSE SALES — AUSTRALIA (SEASONALLY ADJUSTED) Source: Housing Industry Association New Home Sales report, April 2021

14,000 12,000 -54.4%

12,000

Number of new home sales

8,000

3-month rolling average number of new home sales

6,000 4,000 2,000 Apr-18

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Apr-19

Jun-19 Aug-19

Oct-19

Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21

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COVER STORY

SELF-EMPLOYED CLIENTS AT HOME WITH RATE MONEY Self-employed specialist lender and mortgage manager Rate Money is on a rapid growth path and wants the market to know it provides highly competitive loan solutions for self-employed borrowers. The company has expanded from just three people in 2019 to nearly 100 people and 16 branches in NSW and Victoria today

RATE MONEY AT A GLANCE Self-employed specialist and mortgage manager Operates under a licensor/licensee structure

Licensees, known as branch principals, are independently owned and operated Referral network of mortgage brokers, accountants, financial planners and others First branch principals set up in northwest Sydney in November 2019 16 branches across Sydney and Melbourne, with plans to expand into regional NSW and Victoria, as well as Queensland More than $1bn in loans settled since launch of the business in July 2019

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CEO Ryan Gair and directors set up Rate Money, the goal was to be Australia's leading lender for the self-employed. They had a vision: to construct a self-employed lending model that would support business owners with their financing needs.

Gair told Australian Broker the business wanted to be different and ensure it had its own “exclusive funding lines”.

“There’s a lot of lenders that chase PAYG business,” says Gair.

He saw a huge opportunity for the self-employed borrowers of Australia.

Gair, who has been selfemployed for much of his career, says there are a few reasons why lenders don’t understand the self-employed applicant.

“Their business can have quite a complex structure, and trying to get a bank or a lender to understand that structure can be very tedious.

“There was a big opportunity for the self-employed to come to Rate Money, who actually understand their needs – this is due to our diverse product range with full-doc and alt-doc lending solutions; more so with our alt-doc lending having a nil risk fee across all funding lines.

“The Australian dream has changed from the 1960s and 1970s when it was all about owning the home with the white picket fence and paying off your mortgage,” says Gair.

He believes the Australian dream is now about running your own business, and he says you can see that in the many people of different cultural backgrounds in Australia who want to be in control of their own destinies.

Gair saw a lending opportunity for Rate Money to save its WHEN

customers by offering lower fees and cheaper rates.

He says on alt-doc loans strong customers with good equity positions and long-term self-employment were being charged risk fees and high interest rates by lenders due to not being able to supply their

Rate Money has grown the business to include 16 independently owned branches across NSW and Victoria, with plans to more than double that number within two years. The company is now concentrating on opening up in Queensland.

“When a customer walks into a Rate Money office, they know they are dealing with the best in the business and that we understand the client’s circumstances” Ryan Gair, CEO, Rate Money current financial tax returns.

“That’s how Rate Money started.

We kicked off with two funding lines in July 2019, which has now increased to six different funding lines. In July 2019, when Rate Money opened the doors, it was with just three people, and we have now grown exponentially, having 16 branches based in NSW and Victoria and almost 100 people within our network.”

Rate Money’s vision Gair says his vision is “to be known as the best self-employed lender in Australia, offering all self-employed Australians the opportunity to own their piece of the great Australian dream”.

“When a customer walks into a Rate Money office, they know they are dealing with the best in the business and that we understand the client’s circumstances and will go that extra mile in every way possible.”

“We want to bring branch principals on board that have been in the industry for a long time and who see the opportunity of expanding and growing their business – offices that have a team of professionals behind them, which allows the branch principal to grow a big business themselves,” says Gair.

He says a self-employed applicant can come to a Rate Money office and speak to an experienced branch principal professional who understands them because they are also self-employed.

“They can help not just with the client’s current situation but also by assisting them in creating a better future as they build a relationship with Rate Money.”

This means providing diverse, flexible funding solutions.

“We have different rates for different customers, so we go to the customer that hasn’t done their current financials and is not up to date.”

Ryan Gair, CEO, Rate Money

Rate Money offers different easy-doc options that allow an accountant to sign off on the client’s income or they can supply their BAS and self-certify their income.

“Most lenders out there will charge a premium/risk fee for these types of loans,” says Gair. “Across all our funding arms we don’t charge a risk fee, which can save the customer tens of thousands of dollars on their application.”

Rate Money also offers clients the option of providing a one-year tax return and getting a cheaper rate.

“If you can supply two years’ worth of financials, we have a cheaper interest rate again, so for the life of the customer we can actually help better the customer’s interest rates.”

Multiple funding lines When Rate Money opened its doors it was built on servicing self-employed people who were busy running their own businesses, says Gair.

“Self-employed people are time-poor; they need to speak to someone who gets the client’s

situation first time,” he says.

“We wanted to make sure that we could offer all self-employed applicants different loans.

“All customers have different circumstances. Each customer is unique, and having only one or two funding lines means you can pigeonhole yourself with a lot of customers. All of our funding lines offer a different, unique product offering.

“We have six different funders at this current time, and with those funding lines they all offer a different policy and niches, so very rarely are we unable to help a self-employed applicant.

“We can do high-rise, we can do cash-out, ATO debt, and we can do large loan amounts in regional areas – the list goes on.”

Having multiple funding lines also allows the Rate Money customer to keep borrowing and purchasing property with nil risk fees, says Gair.

“Self-employed clients are so entrepreneurial, and a lot do not want to stop at one or two

properties. At Rate Money, we wanted to make sure we could look after the customer ongoing. A lot of lenders have a cap at $1m to $2m, but as we have six funding lines we can lend up to $10m for each customer.”

“Rate Money has great relationships with their funders.

Product innovation is something we are very passionate about, and we are about to launch our full-doc offerings in the coming weeks, which include high-LVR loans and construction loans.”

Fast-growing business Gair says the Rate Money network has certainly grown exponentially in the last six to 12 months.

“The reason for the growth is due to the branch principals that we bring on within our network – their professionalism, resilience, their customer service, and the Rate Money proposition offer.

“These are businesses that have been in the industry for a long time, which means they already understand mortgages and can

look after customers, and can easily generate repeat business.

“The exciting thing is we have never had to do any form of advertising or recruitment, yet we have 16 offices and almost 100 people within our network.”

Gair says Rate Money currently has 10 offices in NSW and six offices in Victoria.

“We are still looking to expand in NSW and Victoria, but we see a huge opportunity across the state of Queensland.

“The current prospect for us in Queensland is massive. They are a hard-working state with lots of self-employed Australians. We see huge opportunity in Brisbane, the Gold Coast and the Sunshine Coast at the moment.

“We are very keen to open three offices in these areas in the next three to six months.

“Queensland has a great buoyant real estate market, people from all different walks of life, different customers, different opportunities and new growth areas.” www.brokernews.com.au

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Chris and Natalie Moran, branch principals, Rate Money Fairfield

Effects of COVID-19 Gair says some people have asked how Rate Money coped during the pandemic, especially as it was a new business.

“COVID didn’t affect us negatively. During the pandemic, self-employed applicants needed someone who understood what they were going through more than ever and would take the time to understand their circumstances to help find a solution.

“Due to the great relationships we have with our funders, we were able to work together to find niche solutions for our customers.”

Gair says the solution was niche full-doc funding or loans that were “just slightly outside of the box”.

“Rate Money can use 95% of rental income, 100% of bonuses and commissions, plus Stayz/Airbnb income to make loans service, where generally the maximum in the industry is 80%.”

Lenders that could adapt to COVID and provide different loan options are now reaping the rewards as small businesses that downsized during the pandemic are ready to expand again.

“We can help give our Rate Money customers the chance to regrow their business using different funding options and our 16

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“Rate Money have been absolutely amazing to work with, and they have been able to assist with any queries promptly and efficiently” Chris and Natalie Moran, branch principals, Rate Money Fairfield specialised knowledge as fellow self-employed business owners.

Rate Money understands business owners go through ups and downs, and we always try our best to support their financial needs.”

What branch principals say Natalie and Chris Moran joined Rate Money in February and are based in the southwest Sydney suburb of Fairfield.

“We decided we wanted to join Rate Money in mid-2020,” say the Morans. “We loved the idea of running our own business as well as having the support of the group behind us.

“We decided to join because of the support, and we went with Rate Money in particular, due to the exclusive low-doc products on offer as well as the variety of other lenders available.”

The Morans say “it feels good

knowing we are helping people, whether with refinancing for a better rate, or helping them save money on their repayments and ultimately achieve their financial goals”.

“We love what we do, whether it’s getting a first home buyer their home, a client buying their first investment property, or a client getting finance to complete their commercial developments,” the couple say.

Chris is new to the broking space, having previously worked in retail for more than 10 years.

He says he wanted a change to help other people achieve their financial goals, and Rate Money was the perfect opportunity.

After completing courses and being closely mentored by a broker, Chris quickly built up his confidence and awareness of what is important to banks and

in meeting clients’ priorities.

Natalie had worked in the industry for five years in the role of business manager assisting the principal, which equipped her with wide experience and knowledge of residential home loans.

“The Rate Money team have been absolutely amazing to work with, and they have been able to assist with any queries promptly and efficiently. You always feel welcome when speaking to everyone, which is super encouraging,” the couple say.

The Morans praised the company for “moving with the times” by ensuring many of their processes were completely online.

They say what attracted them to Rate Money was the team – everyone had been “welcoming, very personable and extremely helpful”.

“Opening a Rate Money branch was also fairly easy to set up.

The team made it simple, and everything was set up quickly.

We had great support, from setting up employees into the system, to IT and office branding.

“This support was wonderful and has continued to be.

A few months in, and we are looking forward to a successful future ahead.” AB

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AUSTR ALIAN MORTG AGE AWARDS

CELEBRATING THE INDUSTRY’S BEST It’s time to submit your nominations for the 2021 Australian Mortgage Awards. The event celebrates its 20th anniversary this year, so it’s only fitting that, this time around, brokers, lenders, BDMs and aggregators will be able to honour the industry’s finest at an elegant gala night at The Star Sydney 20 years, the Australian Mortgage Awards have been honouring the best in the business – the top brokers and brokerages, BDMs, banks, non-banks and aggregators across the nation.

In 2021, the AMAs will again reward the best of the best and, unlike last year, when the event was held online due to COVID-19, everyone can glam up and enjoy celebrating with their peers when the industry’s most prestigious awards night returns to The Star Sydney on 15 October.

The AMAs began in 2001, and the gala evening will be the perfect opportunity to celebrate the 20th anniversary of the event, as well as the remarkable resilience and growth of the broking and lending sector following a difficult year of pandemic lockdowns and job losses hurting the economy.

Nominations are now open for the awards, which will recognise the industry’s top performers across 30 categories, including the premier titles of Broker of the Year and Brokerage of the Year. Go to australianmortgageawards.com.au to nominate.

Westpac will be the AMAs event partner for the 12th consecutive year, including sponsoring the major award – Westpac Australian Broker of the Year, which was won in 2020 by Mhairi MacLeod of Astute Ability Group.

“2021 marks the 12th year of Westpac’s partnership with the Australian Mortgage Awards, and we’re delighted to continue our support,” says Warren Shaw, head of third party distribution at Westpac.

“Australians value the choice and independence mortgage brokers provide, growing to a record 60% of all mortgage applications, and this is something we would like to celebrate together at this year’s AMAs.” Key Media APAC managing

2020 AUSTRALIAN BROKERAGE OF THE YEAR

FOR

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Warren Shaw, head of third party distribution, Westpac

director Justin Kennedy says: “We are extremely pleased to have Westpac back again as the event partner in 2021. Thanks to the ongoing support of Westpac, the Australian Mortgage Awards is still

Smartmove Professional Mortgage Advisors

Mhairi MacLeod, founder and principal, Astute Ability Group – 2020 Broker of the Year; Broker of the Year – Specialist Lending MacLeod says last year was very

“2021 marks the 12th year of Westpac’s partnership with the Australian Mortgage Awards, and we’re delighted to continue our support” Warren Shaw, head of third party distribution, Westpac the pinnacle awards night for the mortgage and finance industry.”

Australian Broker caught up with some of the 2020 award winners to discuss the benefits of industry recognition and why people should nominate for the 2021 awards.

rewarding for her professionally and personally.

“Awards recognise hard work and builds self-esteem, pride, confidence and certainly builds employee morale, which we all needed last year, considering the lockdowns and

lack of social interactions during COVID,” says the owner of the Central Coast-based brokerage.

“Winning the Specialist Lending and Broker of the Year awards gave my clients the feeling they were working with the right group for their unique situations and gave them a lot of confidence, and during these times the right guidance and positive outcome added to their own business confidence.

The award of Broker of the Year is definitely a game changer on how you are perceived.”

MacLeod says celebrating success is an overlooked yet powerful motivator, so coming together and connecting with others at the AMAs 2021 will also be very important, given what everyone has overcome.

Previous AMA winners who have worked hard to develop and use their skills have inspired MacLeod, and she encourages people in the industry to nominate.

“By entering the awards you are forced to look at your business from

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Event partner

2020 NEW BROKERAGE OF THE YEAR

2020 YOUNG GUN OF THE YEAR

Experity Capital

a different perspective and compare yourself to your competitors. It also acts as an endorsement for your business amongst your peers, customers and employees – this will give a seal of approval of your activities and a sign of quality for potential customers and relationships with lenders. Awards also give validation and credibility, adding strength to your profile.”

Darren Little, CEO of Smartmove Professional Mortgage Advisors – 2020 Australian Brokerage of the Year Smartmove’s Darren Little says recognition with the Brokerage of the Year award in 2020 “was outstanding for our team and the effort they put in with our clients through what was a very different year”.

“It was our first opportunity to get our team together for six months for the virtual event, which was wonderful in itself, plus some of our business partners and aggregators were there, which made it all the more fun when we won the Brokerage of the Year,” he adds.

Little says the AMAs are deeply ingrained in Smartmove’s DNA: the brokerage has won five Young Gun of the Year awards over the last 11 years and Best Customer Service from an Individual Office for three out of the past five years – and to be named overall Brokerage of the Year again was wonderful after winning the award back in 2009 and 2010.

The team is looking forward to the AMAs returning as a live event.

Katie Dowton, Mortgage Choice

“Our industry is built on relationships, and the opportunity to get back together is both exciting and crucial as we continue to move forward together. The AMA live event has historically been a wonderful opportunity to celebrate the year that has been for the industry, and I’m sure this year will be extra special after having a year on Zoom.”

Smartmove is encouraging companies and individuals to enter the 2021 awards.

“The AMAs provide a great platform for your individual team members or businesses to tell their story about the year that has been.

To be a finalist is fantastic, and to win the category is outstanding, plus it’s a great night to network and celebrate the year.”

Katie Dowton, broker, Mortgage Choice: 2020 Young Gun of the Year – Franchise “Winning Young Gun of the Year was a huge personal achievement for me in 2020, and it was such a surreal moment when I saw my name come up on the screen,” says Katie Dowton.

“I received so many messages and emails from people in the industry that I have a lot of respect for, and it felt really nice to know that it wasn’t just my small team that thought I was a winner. I also feel like the awards that our team have won both individually and together give new clients confidence in knowing that we are not only among the best brokerages on the Central Coast but also in the country.”

Dowton, who has been part of the Mortgage Choice Erina team since 2017, says the atmosphere of the 2019 awards night was amazing.

“Watching it from the computer last year just wasn’t the same.

It’s always fun to get dressed up, and whilst I’m relatively new to the awards scene, I have been told that some of the best business partner relationships are made on the dance floor.”

Dowton wants other young brokers to nominate for the 2021 awards.

“It is a massive honour to be recognised by industry partners and leaders. Particularly as a young woman, it is encouraging to be reminded that you are on the right path and can absolutely make it no matter what barriers you may face.

“There are a few names that I have seen as finalists and winners who have inspired me because of their ability to consistently raise the benchmark for success and that motivates me to work harder and push myself to grow both individually and as a business.”

Gus Mendez, CEO, Experity Capital – 2020 New Brokerage of the Year It has been a busy three years for Sydney-based brokerage Experity Capital, topped off by winning an AMA in 2020.

“Winning this award is testament to our successful merger of three businesses, which we carried out in 2018 to increase our customer service capabilities and provide better solutions to our clients,” says Mendez.

2020 BROKER OF THE YEAR

Mhairi MacLeod, Astute Ability Group

“Most of all, our solution-centric collaborative approach has meant outstanding customer outcomes.

Although some of our directors are industry stalwarts, being recognised as a group at a national level this early in our journey has boosted credibility further across our network to become the brokerage of choice for clients and valued referral partners.”

The team at Experity Capital is excited by the prospect of the AMA awards night being back at The Star on 15 October.

“Being able to come together and reflect on an extremely challenging year to celebrate success is important to us. With collaboration being one of our core values, we are excited to welcome the opportunity to reconnect with industry peers, colleagues and friends in person and strengthen our relationships.

“It’s not just about winning or the recognition, it’s an opportunity to reflect on your achievements as a business, come together as an industry and celebrate success.”

Mendez says the industry as a whole should be proud of how it has helped clients across Australia navigate one of the most challenging years.

“Seeing our industry peers get recognised for their innovation, leadership and overall excellence is a reflection of the collaboration amongst lenders, aggregators and industry bodies … we are always inspired by those who have been recognised for raising the bar and giving back to the broking community.” AB

Nominations for the Australian Mortgage Awards 2021 are now open. Entries close on Friday 25 June. Go to australianmortgageawards.com.au to submit your nominations. The awards will be held at The Star Sydney on Friday 15 October. www.brokernews.com.au

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SMALL BUSINESS LENDING

SME LENDING PRESENTS WORLD OF OPPORTUNITIES

Small businesses are the engine room of the economy, and while the pandemic threw a spanner in the works, SMEs are now returning to peak performance. Lenders are tuned in, providing funding options for brokers and their clients

employers often hog the limelight in Australia, but really it’s small businesses that should get all the attention.

Defined as those having fewer than 20 employees, small businesses account for 97.4% of all businesses in Australia, according to the Australian Small Business and Family Enterprise Ombudsman’s Small Business Counts study from December 2020.

That figure jumps to over 99% if you include medium-sized businesses, which have between 20 and 199 employees.

Small business employs more than 4.7 million people or 41% of the business workforce, making it the nation’s biggest employer.

The biggest contribution by small business to GDP is in the construction sector, where it accounted for $71.3bn in value-added in 2018/19.

While the pandemic had a devastating effect on some SMEs, causing job losses and closures, many stood strong, and with low COVID-19 numbers, employment rising and historically low interest rates, small business operators are now looking to expand and want access to finance.

Australian Broker caught up with five small business lenders – Liberty, Thinktank, OnDeck, Commonwealth Bank and Moula – to discover what lending options they offer for small businesses and how brokers can tap into these.

LARGE

How lenders meet demand for finance from SMEs Liberty has been around since 1997, and group sales manager John Mohnacheff says the non-bank 20

lender has a proud history of helping borrowers who don’t fit traditional lending criteria.

“Supporting small business owners is an important part of that,” says Mohnacheff. “Often with complex lending needs, Liberty recognised the benefit of bringing greater options and more flexibility for this group early on, and we were one of the first to offer specialist solutions to SME borrowers.”

Liberty recently celebrated its

Vala, Thinktank’s general manager partnerships and distribution.

He says the company’s main focus was to improve customer cash flow options by offering longer-term facilities, and remove frustrating reporting covenants, including annual reviews and revaluation requirements.

“This approach quickly established Thinktank as a leading commercial property specialist that is SME-inspired to meet the needs of

“Liberty’s suite of small business loan options is second to none; we have solutions to help all kinds of borrowers and all kinds of businesses” John Mohnacheff, group sales manager, Liberty 15th year in the commercial lending space and now offers even more options to thousands of small business customers.

“As demand grows, we will continue to refine our product offerings to plug the gaps and support our customers’ changing needs,” Mohnacheff says.

Non-bank lender Thinktank was formed in 2006 by a group of highly experienced professionals with backgrounds in property and consumer finance and business lending.

“We could see a clear opportunity to provide simple, hassle-free commercial finance under terms and conditions not dissimilar to that of residential home loans,” says Peter

brokers and their customers.

“The success of this style of lending has also enabled us to grow and widen our product offering to now include all forms of SMSF lending and residential owner-occupied and investment loans,” says Vala.

About 90% of Thinktank loans are for self-employed and SME customers, with settled loans now numbering more than 6,000.

OnDeck was set up in Australia in 2015 specifically as a lender for small business, and has since funded thousands of SMEs. “As a small business owner myself, I had long been aware of a significant gap in the lending market,” says Cameron Poolman, CEO of OnDeck Australia.

“Traditional banks simply don’t cater very well to the SME sector.

Not only can the loan application process be arduous for small businesses, loan approvals can take weeks – a time lag that often sees SMEs miss valuable opportunities.”

He says OnDeck takes a different approach to banks, which base loan decisions on SMEs’ past financials. Instead the non-bank lender uses innovative data analytics and technology to make real-time lending decisions and deliver capital rapidly to small businesses.

“OnDeck Australia has continued to grow year-on-year, and globally, OnDeck has provided over $13bn in loans to over 110,000 customers,” Poolman says.

Commonwealth Bank looks after more than 800,000 SME customers nationwide.

CBA’s general manager broker and agency sales, Ian Burnett, says at the start of the pandemic the bank’s focus was on helping customers with the initial economic shock to ensure they had the cash flow and support they needed to keep afloat.

“We responded quickly and at scale with measures such as automatically deferring loan repayments for more than 80,000 customers,” Burnett says. “We improved speed to lending through our BizExpress lending platform, which meant we could quickly offer the federal government’s SME Guarantee Loan Scheme, and we’ve been the leading provider of loans, funding about half of all loans under the scheme so far.”

Burnett says as economic conditions improve CBA is focused on ensuring SMEs have the cash flow, products and localised services they need to rebuild and grow.

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John Mohnacheff, group sales manager, Liberty

“It’s positive to see more businesses looking to invest and capture opportunities, and we’re focused on supporting their business goals.”

Moula is another non-bank lender that was established to provide loans to small businesses.

“When Moula was founded in 2013, there was a massive gap in the market, with SMEs facing a 74% rejection rate for unsecured finance, which meant too many good businesses were getting knocked back for funding,” says Sam Sfeir, head of strategic partnerships at Moula.

“Where banks were relying on legacy systems, we saw an opportunity to underwrite based on a business’s data, not their assets, while offering more personalised service. We’ve since processed tens of thousands of applications with same-day decisions, and funded SMEs with over $500m.”

Small business loan products “Liberty’s suite of small business loan options is second to none, and we have solutions to help all kinds of borrowers and all kinds of businesses,” says Mohnacheff.

“For those looking for funding to grow their business, we provide both secured and unsecured options.

Our Liberty Mint product offers loans up to $3m, while Liberty Lift offers more flexible options up to $1m.”

“With more than two decades of

experience in specialist lending, we are very comfortable working with SME customers no matter how complex the situation – we can offer flexibility that

Peter Vala, general manager partnerships and distribution, Thinktank

the SMSF loan process.

“One of our key points of difference is our open lines of communication.

We’re proud to provide our business partners with direct access to

“A key attraction of our loans is their set-and-forget nature.

This saves precious time and expense for the customer, with no annual reviews” Peter Vala, general manager partnerships and distribution, Thinktank many other lenders can’t.”

Mohnacheff says Liberty was also one of the first non-bank lenders to join the government’s SME Guarantee Scheme, which has been extended to 30 June.

Liberty created its new Business Care lending product to support SMEs through the pandemic, and it also joined the SME Recovery Loan Scheme.

“Our comprehensive suite of lending products also includes competitive commercial loans which can help customers to invest in commercial property – with options to buy via their SMSF.” As a dedicated SMSF lender, Mohnacheff says Liberty has the expertise to walk brokers through

our underwriting team.”

This eliminates “endless hours of legwork” for brokers and helps process applications with far greater efficiency and achieve the best customer outcomes, Mohnacheff says.

At Thinktank, all loans are mortgage secured with loan sizes ranging from $100,000 to $3m per property offered as security.

“This may be in the form of commercial, industrial, retail, office or residential property types,” says Vala. “We also support some specialised securities such as boarding houses, student accommodation and childcare with loan ratios up to 75%.”

“The businesses we service are wide-ranging, from the sole trader

to complex corporate structures and trusts.”

Thinktank provides finance for purchases, refinances and equity release, with some of these refinance and purchase requests coming in the form of SMSF loans.

“Not surprisingly, the majority of our SMSF enquiries are from owners of SMEs wishing to run their trading business from premises they own in an SMSF in a highly tax-effective way.”

Vala says a key attraction and advantage of Thinktank loans is their set-and-forget nature.

“This saves precious time and expense for the customer, and fewer hassles, with no annual reviews or ongoing report covenants to monitor and administer. Our loans are also offered over terms up to 30 years, which provides greater flexibility, a practical feature that has been particularly valuable in recent times.”

This longer term lowers repayments, allowing customers to better optimise their monthly cash flow and still make capital reductions or accelerate payments when circumstances allow.

Vala says shorter terms can be requested, but “we prefer to see a longer term taken where possible and see the customer pay back the loan quicker if they so desire”.

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businesses loans of up to $5m with variable interest rates from as low as 2.60% for secured loans, and from 2.85% with a repayment holiday.

Burnett says unsecured loans are available from 3.25% and from 3.75% with a repayment holiday.

“Also, our Better Business Loan is a simple loan that can be secured or unsecured with flexible repayment options and competitive interest rates. Customers can borrow from $10,000 and save interest by making special repayments which can be then redrawn at any time.

“We also have a range of solutions for smaller financing needs, including overdrafts and business credit cards.”

CBA has deep expertise across SME sectors, including retail, hospitality, health, professional services, trades, manufacturing, construction and agriculture.

“We have the scale to provide service, with hundreds of employees across customer-facing and broker support roles, and, importantly, we’re accessible across multiple touchpoints.”

Burnett says branches remain an important channel for small business customers, and CBA is well on its way to more than doubling the number of business bankers in branches nationwide by the end of 2021.

“We also have a dedicated Australian contact centre for all business banking customers open 24/7, with dedicated relationship managers for larger customers and brokers.”

EFTPOS, e-commerce and innovative online banking and business insights tools, including ‘Personalised Insights’ sent directly to customers, powered by business insights tool Daily IQ, have also helped CBA meet small business finance needs.

OnDeck offers short-term business loans of $10,000 to $250,000 to SMEs with a minimum $100,000 gross annual turnover and a minimum of one year in business.

SMEs also need a business credit score of at least 500, which business owners can check by using OnDeck’s free online Know Your Score tool.

“We do not ask for security, just a personal guarantee,” says Poolman.

Poolman says OnDeck funding is used for variety of purposes.

“Our loans are also used by SMEs to buy trading stock and take advantage of terms that offer discounts for early payment.

We service all industries within the SME community.”

22

As an online, dedicated SME lender, Poolman says OnDeck offers a simple application process, requiring just six months’ worth of bank statements, which can be uploaded in minutes via OnDeck’s secure portal.

OnDeck also recently launched its own KOALA Score™, formally known as the Key Online Australian Lending Algorithm, an innovative credit assessment system developed by its own team of data scientists.

Poolman says the KOALA Score™ uses a sophisticated blend of big data, predictive analytics and statistical techniques, as well as business and personal credit scores data from credit reporting agencies such as illion and Equifax, to support more tailored risk assessment for SME lending.

“To the best of our knowledge, no other online SME lender is working with the level of detail that KOALA provides … this makes KOALA an important asset in allowing OnDeck to help level the finance playing field for business owners, particularly for very small or very new enterprises, and their brokers.”

Cameron Poolman, CEO, OnDeck Australia

“Our latest innovation is Lightning Loans, delivering turbo-charged finance of up to $95,000 to Australian small businesses in as little as two hours” Cameron Poolman, CEO, OnDeck Australia Moula offers business loans of $5,000 to $250,000, unsecured regardless of loan amount, with loan terms from 12- to 24-months.

“We deliver same-day funding decisions, and clients have the ability to repay funds early, at any stage, without any fees or penalties,” says Sfeir. “Within 24 hours, we tailor finance to your client’s unique needs, helping them better seize time-sensitive opportunities.

We support a broad range of industries and businesses with more than six months of trading history.”

Sfeir says Moula is up front about what it offers, quoting business loans in annual percentage rate (APR) so brokers and customers can easily understand the cost of finance before they take the loan.

“APR simply stacks up. It’s also an important aspect of SMART Box™, a tool we helped develop in

collaboration with the Australian Finance Industry Association, which helps brokers and customers compare different business loans from different lenders on a level playing field.”

Moula offers two referral processes, Sfeir says.

“You can manage your client exclusively by submitting a full business loan application, or submit a referral and we’ll handle the entire process on your behalf. If you choose to submit a ‘tick and flick’ referral, we’ll work directly with your client to tailor finance to their needs.”

Sfeir says Moula’s move to flexible referrals has been welcomed by brokers with varying levels of experience.

“It makes things easier for mortgage brokers who are new to the space, who may not feel as confident with commercial lending.

It also saves time for established brokers, while streamlining the process for their clients.”

Lending trends Vala says not all business sectors have been adversely affected by COVID, and there are a number of areas where there has been significant growth, such as logistics and industrial property.

“We see the market continuing to improve over the coming year or so; however, when it comes to serviceability, historical financial statements may not be the best or easiest way to demonstrate capacity to pay on a new loan where the 2020/21 financial year may have been adversely affected by COVID.” Alternative forms of income verification are useful here, says Vala, such as Thinktank’s Mid Doc offering, which draws more on an SME’s current trading performance, with one form of supporting income verification to demonstrate serviceability.

Burnett says there has been strong demand for commercial lending and asset finance, and he expects this to continue.

“Asset finance agreements have increased by about 20% in the last six months, with funding amounts increasing by about a third.

“Growth has been driven by the car market, which is up 15% in deal

www.brokernews.com.au

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Sam Sfeir, head of strategic partnerships, Moula

numbers and over 30% in amount financed. Trucks and agricultural equipment are both up over 45% in the last six months,” says Burnett.

Sfeir says during the pandemic there was reduced lending risk appetite across the board, which made Moula’s offering even more critical in delivering finance to SMEs to enable them to seize opportunity and fund growth.

“We maintained our commitment to delivering same-day credit decisions throughout COVID-19, and now are able to offer even faster turnaround times.”

Mohnacheff says the small business sector has been challenged by the pandemic, but what the market is seeing is change.

“As we enter a post-COVID world, switched-on SMEs are adapting their business models to accommodate the changing needs of their customer base and are seeking funds to do so,” he says.

“As the situation continues to unfold and we settle into the new normal, we’ll likely see things start to balance out. Some will look to return to the old way of doing things, but by and large, most business owners have found the benefits of the new business models are worth holding on to.”

Poolman says there’s a marked return to positive market conditions, growing SME confidence and

Ian Burnett, general manager broker and agency sales, Commonwealth Bank

“We have the scale to provide service, with hundreds of employees across customer-facing and broker support roles, and we’re accessible across multiple touchpoints” Ian Burnett, general manager broker and agency sales, Commonwealth Bank an increase in SME appetite for rapid finance.

“Our Open for Business marketing campaign, launched in Q4 of 2020, reassured SMEs that OnDeck is always open to new clients, and this was rewarded with sustained growth in new loan applications from August onwards.

“In the final quarter of 2020, we experienced an increase of almost 90% in loan applications over the previous quarter, and we continue to see an uptick in SME loan applications.”

Turnaround times “Liberty is known for fast turnaround times, and our business partners know they can count on us when customers are in a pinch,” says Mohnacheff.

“To maintain our speedy response times, we continually measure, track

and adjust where we need to. We also give direct access to our underwriting team so that our business partners can get quick updates.

“It’s an ongoing process, and we rely on many teams to work together cohesively to ensure we deliver consistently strong results.”

Burnett says CBA provides a dedicated broker-only service proposition for brokers and its small business customers.

“We work closely with them to try and make sure application forms are completed correctly and fully the first time round,” he says. “This helps us ensure the broker and customer get a decision on credit applications and access to funds as quickly as possible, and that we’re well inside the service promise timeline.”

Burnett says the bank’s ABCD Commercial lending offering continues to deliver conditional

approval within its 24-hour service promise for eligible sub-$1m commercial lending transactions.

Poolman says OnDeck has always harnessed the power of technology to ensure a simple application process and rapid approval times.

“Our latest innovation is Lightning Loans, delivering turbocharged finance of up to $95,000 to Australian small businesses in as little as two hours,” he says.

Lightning Loans’ innovations include requiring zero asset security, with just a personal guarantee, and a streamlined, efficient application process involving six months of recent bank statements to be uploaded via a secure online portal.

Sfeir says Moula guarantees fast turnarounds through its “heads and hearts” approach.

“This is about balancing the data, automation and tech with the personal, human touch,” he says.

“We leverage machine learning and artificial intelligence to deliver faster outcomes to brokers and their clients. Instead of a lengthy application process and weekslong waiting period, ours is a fast, streamlined application, with API access to business data helping determine eligibility.”

Sfeir says technology makes things fast and easy, “but at the same time, we take the time to listen when needed”. www.brokernews.com.au

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24/05/2021 2:52:58 pm

FE AT URES

BUSINESS LENDING INTEREST RATES, SEPT 2019—MARCH 2021 Source: APRA, RBA

Lenders’ interest rates for small, medium and large businesses in Australia – % per annum Small businesses

Medium businesses

Large businesses

6%

6%

5%

5%

4%

4%

3%

3%

2%

2%

1%

1%

Sept 19

At Thinktank, responsiveness has always been a priority, says Vala.

“We have invested heavily over the years in a range of technological improvements to improve SLAs. “We have also invested substantially in our relationship management team, who are always ready to assist regardless of a broker’s experience in self-employed or commercial loans. Workshopping a loan with one of our RMs is the best way to ensure a transaction has the smoothest and quickest passage through to approval and settlement.”

Broker diversification and support Mohnacheff says diversifying into small business lending can be a great way for brokers to broaden their customer base, and SME borrowers need guidance more now than ever before.

“After a trying 12 months, many small businesses are still not out of the woods financially and could greatly benefit from broker support.”

To help brokers enter the SME lending landscape, Liberty provides tailored training and development sessions with one-on-one support as required.

“With highly skilled BDMs across Australia, our team is here to walk you through the entire process, and we’re always available to answer any questions you have along the way,” says Mohnacheff.

Vala believes it makes sense for businesses to diversify their trade and supply chains to ensure continuity of 24

Jan 20

May 20

income in times of change.

“A broker should really be no different,” he says. “By diversifying their income into different streams such as residential, commercial property finance, asset finance and cash flow finance they can help spread their income risk and

Sept 20

brokers to deepen relationships with their clients, becoming a ‘one-stop shop’ for all their clients’ lending needs.”

Poolman says OnDeck not only delivers a wealth of training but its “hi tech, hi touch” philosophy means intensive BDM support,

“We deliver same-day funding decisions, and clients have the ability to repay funds early, at any stage, without any fees or penalties” Sam Sfeir, head of strategic partnerships, Moula weather market changes.”

It’s all about looking after their customer’s entire needs, resulting in a stronger relationship, improved retention and new referral business from that customer.

Vala says Thinktank is committed to helping brokers diversify, participating regularly in industry events and providing one-on-one training and education workshops.

Poolman says it always makes sense for brokers to diversify their business beyond home loans, and many could be surprised to find a wealth of SMEs already in their database.

“OnDeck research confirms that one in four of a broker’s existing home loan clients are likely to be small business owners. It makes commercial lending a way for

a straightforward accreditation process, and keeping brokers regularly updated with industry news and product updates.

“Importantly, the feedback from brokers who expand into commercial lending with OnDeck typically runs along the lines of ‘it is much easier than I anticipated’.”

Burnett says small businesses are the backbone of our economy, but they are often time-poor so brokers provide an important service option.

“As a service-oriented organisation, it’s very important our accredited brokers are adequately informed and trained to represent our current policies, processes, capabilities and offering to prospective small business customers.”

CBA’s innovative Broker Education

Jan 21

Skills & Training (BEST) program is designed to ensure this is the case, says Burnett.

“The BEST program also provides an opportunity to raise broker awareness of contemporary industry issues and ensure accredited brokers understand their – and our – compliance and regulatory obligations.”

Sfeir says that in the threeand-a-half years to September 2019 the value of commercial loans settled by mortgage brokers through aggregators in Australia almost doubled.

“Through COVID-19, the case for diversification into commercial lending only became more compelling as repayment holidays depressed the available housing stock on the market.”

But Sfeir admits business lending is nuanced and can sometimes be challenging for residential brokers who are new to the space.

He says Moula’s experienced BDM team offers support through training and scenarios, including ‘Good Business Deals’, which highlight key considerations behind recent funding decisions to help educate brokers in underwriting.

“We publish regular blog content on industry issues, including a recent piece comparing annual percentage rate to simple interest rate,” Sfeir says.

“All these things help brokers better understand how we can help tailor finance to their SME clients with a wide range of needs.” AB

www.brokernews.com.au

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PEOPLE

Have an interesting deal?

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

antony.field@keymedia.com

BIG DEAL Emmanuel Marios is the director of Hobart-based mortgage brokerage Derwent Finance, which serves clients across Tasmania and Melbourne. He assisted a borrower who wanted to purchase his first investment property through his SMSF but was unhappy with his lender THE FACTS

Client 58-year-old male

Loan size and term $210,000 over 30 years

Goal To purchase an investment property through his SMSF

Location Queensland

26

Aggregator outsource Financial

approval within five business days is often unheard of, especially with a more complex deal like an SMSF purchase.

Personally, I really didn’t know if it was possible, but I took the risk.

THE SCENARIO

This client, who was referred to us by a referring partner, was looking to finance the purchase of his first investment property through his self-managed super fund. The client already had a contract of sale in place and had made contact with another lender; however, he was unhappy with their reliability and therefore lost trust in the lender and wanted to find another professional to handle the transaction.

At the beginning of the application it was very simple: a low purchase price on the contract of sale and high serviceability on the client’s end.

Although it was an SMSF purchase, we had many lenders on our panel for the client to choose from.

The deal was submitted, and everything was moving along smoothly until the client’s original lender came back to him with a better offer.

The client then asked us to withdraw the application we had submitted on his behalf. To be fair, the offer was indeed a fantastic offer, and one that would have been hard to say no to. However, this was a time-sensitive matter with a contract of sale in place.

Two weeks later and with five days until the finance clause was due, the client came back to us, stating that the original lender was too unreliable and slow, and asked us to resubmit his application to Firstmac.

As we all know, with lenders’ current service level agreements, unconditional

Lender Firstmac

possible, you also need to take it one step at a time and ensure everything is spot on before submitting.

It’s then important to maintain good communication with the lender, explaining the scenario to them and highlighting the due date; constantly contacting them for updates on how the file is travelling, and to find out if there is anything you can do at your end to get things moving, and so on. This good communication also applies to the client, so they need to be advised to be on the ball and proactive in responding to all requests that come to them, in order to avoid any delays.

By doing all the above, fortunately we received an approval letter from the lender and met the finance clause due date on the contract of sale.

This was hugely to do with each party communicating and being active regarding the application – from the client to myself and my team and the lending support. Our BDM was passionate and on our side in his efforts to get the loan approved, which was fantastic and resulted in a successful transaction. This was a huge relief for all parties involved.

Additionally, we received the approved loan documents for the client the day following the approval (that day was a

Keep your relationships strong with everyone involved in the application, from the client right through to the BDM and lending support THE SOLUTION

Emmanuel Marios Senior mortgage broker and director, Derwent Finance

I know that unfortunately this isn’t the case with all applications, and I have had my fair share of finance clauses not being met; however, I believe fantastic communication is the key to moving forward, and quickly.

This wasn’t a deal that needed solution-based thinking or conflict resolution; it was an application that was time-sensitive and needed approval within a very short period of time.

Having a clean application from the very start, taking the time to write detailed broker notes, and providing as many of the required documents as possible on submission minimises the back and forth between the lender, broker and client, which can take up a lot of time.

Although the goal is quite often to submit an application as quickly as

public holiday as well, so the lender’s team was thin on the ground), so there was no further delay in the next step of the transaction.

This outcome would not have been possible if it wasn’t for the team involved in this application.

THE TAKEAWAYS

The takeaways from this deal are primarily to keep your relationships strong with everyone involved in the application process, from the client right through to the BDM and lending support, and to keep everyone motivated and passionate about getting the deal done. At the end of the day, you need to be on the lender’s side and to maintain a good relationship with them, because they are the ones controlling when the application is picked up and approving the loan. AB

www.brokernews.com.au

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24/05/2021 11:34:00 am

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

Into people.

Not just transactions.

1300 781 043 deal@thinktank.net.au

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24/05/2021 11:34:10 am

DATA

QUEENSLAND

TAS SPOTLIGHT

Robust demand has supported growth in building approvals Residential dwelling approvals remained high in Queensland over the first three months of the year, according to the Housing Industry Association.

Multi-unit approvals saw the highest growth at 65.3%. Approvals for detached buildings increased by 50.7% and for renovation works by 45.6%.

HIA Queensland executive director Mike Roberts said the higher rate of approvals came with strong sales activity, which improved by 54.9%. “This very strong result follows from rapid house price growth across the southeast corner and in north Queensland,” he said.

Roberts said the demand for homes was due to the state being able to offset the loss of international students and migration by attracting workers from NSW and Victoria.“We anticipate a very strong year for building work on the ground in Queensland this year and into 2022, with more new detached homes to commence this year than in any previous year.

The record volume of work will see the industry absorb workers from across the economy.”

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$580,500

2.0%

3.9%

$420

3.9%

Metro (U)

$410,000

2.0%

2.4%

$385

5.0%

Country (H)

$470,000

1.1%

1.3%

$415

4.7%

Country (U)

$410,000

1.8%

5.3%

$350

4.6%

NEW SOUTH WALES

Construction work in NSW is poised to boom in the year ahead Approval figures increased by 26% in the first three months of 2021, signalling busy months ahead, the Housing Industry Association reports.

“We anticipate a very strong year for building work in NSW this year and into 2022, with the strongest number of detached housing starts since 2017,” said HIA executive director David Barre. “The record volume of work will see the industry absorb workers from across the economy.”

Renovation approvals also increased over the quarter, up 32.9% on the year prior. “There is a record volume of approvals for renovation work in NSW. This is consistent with the results in more timely leading indicators such as new home sales,” Barre said.

While multi-unit approvals finished March on a strong note, the segment’s volatility still showed in its quarterly figures. Over the quarter, multi-unit approvals in NSW fell by 1.2%, but the rise in approvals for townhouses and high-rise apartments helped the segment see healthy gains in March.

Area

Median price

Quarterly

12-month

Weekly

Gross

growth

growth

median

rental

rent

yield

Metro (H)

$1,000,000

2.1%

7.4%

$550

2.9%

Metro (U)

$725,000

0.0%

2.8%

$495

3.6%

Country (H)

$540,000

3.0%

8.3%

$420

4.2%

Country (U)

$462,250

1.1%

5.9%

$360

4.2%

28

HOBART PRICES SET NEW RECORD The city is starting to outpace other capitals in terms of price growth as property values rise to new highs prices in Hobart have risen substantially over the first three months of the year, overtaking prices in other capital cities, according to the latest market update from Domain.

Over the quarter, house prices in the city went up by 7.6% to $601,567, reaching a new record high. This was the strongest quarterly growth reported since 2017. On an annual basis, prices during the three-month period increased by 15.9%.

Price growth in Hobart appears to be accelerating. In fact, although the city was the most affordable capital for house purchases at the end of 2019, since then its prices have overtaken those in Darwin, Perth and Adelaide.

Houses have continued to outpace units in terms of price appreciation, with the latter even reporting a decline of 0.8% to $430,716 over the first quarter of the year. This drop was driven by the inner-Hobart region, which was HOUSE

the only area to report a fall on an annual basis.

Still, Hobart has outpaced other capital cities when it comes to both house and unit price growth over a five-year period. Prices of houses have risen by 73% and unit prices have increased by 67% over the past half-decade.

“During this time, there has been a significant lift in population growth, particularly from interstate buyers that see Hobart as affordable in comparison to mainland cities, and they also tend to have deeper pockets because of the discrepancy between wages from the mainland and the island state,” the Domain report said.

While construction has already picked up in Hobart, limited supply continues to be a key driver of rising prices in the city.

“The local lifestyle and successful control of the pandemic, as well as the desire for lowerdensity living, will continue to place Hobart in the spotlight,” Domain said.

HOBART HOUSING MARKET INDICATORS Source: CoreLogic, May 2021

Property stats for the week ending 9 May 2021

New listings:

291

Total listings:

753

Houses

157

$626,000

29

Number of sales

Private treaty median price

Median days on market

Units

50

$470,500

21

Number of sales

Private treaty median price

Median days on market

SUBURB TO WATCH: BRIGHTON Median price (houses) $450,000

Median price (units) $315,000

12-month growth 19%

12-month growth 6%

3-year growth Average annual growth 38%

Gross rental yield

4.5%

5%

Average annual growth Weekly advertised rent

Gross rental yield

3.7%

$350

6%

www.brokernews.com.au

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WESTERN AUSTRALIA

Median prices in Perth have clocked a nine-month growth streak

HIGHEST-YIELD SUBURBS IN TASMANIA Suburb

House

Gross rental yield

Median price

Quarterly growth

12-month growth

Average annual growth

ZEEHAN

H

10%

$122,500

-2%

2%

7%

ROSEBERY

H

9%

$105,000

6%

21%

5.8%

QUEENSTOWN

H

8%

$112,500

13%

32%

5.2%

ACTON

H

7%

$214,000

0%

11%

1.8%

BRIDGEWATER

H

6%

$307,000

-1%

15%

6.6%

RISDON VALE

H

6%

$332,000

4%

13%

6.7%

Area

VICTORIA

For the first time since December 2018, the median dwelling price in Perth has surpassed the $500,000 mark, according to the latest report from the Real Estate Institute of WA (REIWA) and CoreLogic.

Perth’s home value index rose 0.8% over the month, hitting $508,000. This marks the ninth consecutive month of price gains in this city.

“The Perth property market continued its strong recovery in April. It’s a testament to the strength of our local market that even with the Easter and Anzac public holidays, as well as another lockdown during the month, prices continue to rise,” said REIWA president Damian Collins.

Perth’s home value index has been improving since August 2020. So far this year, prices have risen by 5.9%. Bullsbrook had the strongest growth in house prices of 7.8% to $352,500.

Bicton followed with a 6.6% gain to $1.14m. Over the month, the number of properties listed for sale increased by 5.8% to 8,742.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

2.9%

rent

yield

4.2%

$395

4.1%

Metro (H)

$529,000

Metro (U)

$405,000

2.2%

0.7%

$360

4.9%

Country (H)

$386,000

2.8%

10.4%

$370

5.2%

Country (U)

$237,917

4.7%

8.0%

$325

7.5%

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Construction approvals skyrocketed in Victoria in the first quarter Victoria has recorded its highest quarterly growth in detached building approvals since 1983, according to the Housing Industry Association. These rose by 36.1% annually in the first quarter of the year. “We anticipate a record volume of building work will commence this year and into 2022, with more than 40,000 new detached homes to commence construction,” said HIA Victoria executive director Fiona Nield.

The renovation segment also reported a busy quarter, with approvals growing by 22.2%. There was a drop in multi-unit approvals over the quarter. While March approvals rose due to a surge in approvals for high-rise apartments, this growth did not offset declines in previous months.

During the same quarter, Melbourne house and unit prices hit a new record, according to Domain. It is expected that the median house price will reach $1m by the end of Q2, and units will keep rising in the only capital to record highs in unit prices over the quarter.

Metro (H)

$805,000

2.7%

6.1%

$430

2.9%

Metro (U)

$609,750

1.7%

4.9%

$400

3.5%

Country (H)

$463,888

4.6%

12.9%

$360

4.4%

Country (U)

$360,000

5.1%

11.2%

$300

4.8%

Source: CoreLogic, May 2021

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 Finsure

IN THE HOT SEAT

Anusha Haran is the CEO and owner of One Stop Loans, an award-winning Sydney brokerage. With more than 20 years’ experience in the industry, she works alongside her husband, Ram Kota, and specialises in commercial finance How did you become a broker, and how did being a BDM help your transition into the role?

After my third child, I decided to become a broker because A I wanted the flexibility it offered for work and family. I had loved being a non-bank BDM who found solutions for brokers that the banks would not provide. I planned to become a specialist broker focusing on loans for the self-employed and for credit-impaired borrowers, as well as private loans. This gave me the opportunity to have repeat clients and provide suitable solutions. My main customers were still the brokers who did not want to diversify to help clients with difficult situations and write loans with non-banks.

Q

How difficult is it to set up your own brokerage in such a competitive industry?

A You need to have your customers’ interests first. It’s a very difficult job, but when you have 20 years of banking and lending experience, you have the upper hand in making it happen.

I set up the business with my husband, Ram Kota, as a specialist broker and positioned our unique services to our referrers. This gave us the opportunity to diversify into home loans, commercial loans, asset and development finance, private loans, business loans and more. You need to have a diversified business to capture all customers’ financial requirements.

Q

As a specialist commercial and asset finance broker, what advice would you give to residential brokers who want to diversify?

We are always dealing with residential brokers who have not A expanded their businesses into commercial loans. They are either too busy and do not want to expand due to resources, or they don’t have enough experience. Most of these loans are assessed in the same way as residential loans. Use the resources and training that the lenders, aggregators and associations provide. Get a mentor and you will never look back.

Q

How do you and your husband successfully navigate being life partners and work partners?

In most cases we stay away from each other’s fi les, but A still occasionally we have our little differences in opinion.

But I would not have it any other way. It makes it all worth it when we see our results and productivity flourish. Success is when we can work together as a team and have similar passions and goals to become one.

Q

30

Anusha Haran, CEO and owner, One Stop Loans

What are your long-term goals?

For One Stop Loans to become a national broking fi rm with A exceptionally talented brokers sharing dreams and success. We also want to expand to other businesses, such as the beauty, food and health industries. Right now we want to be the best broking fi rm that is highly qualified and diversified to provide solutions to our clients. One Stop Loans has gone from a single person to eight staff within five years of trading, well on track to accomplishing the goal of having a national broking fi rm. AB

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www.brokernews.com.au

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Bigger, better, faster, stronger.

When you choose OnDeck, you choose a loan provider who knows small business.

Our solutions are smart, simple and designed to put you and your clients first.

Bigger We generally offer larger loans than our competitors, thanks to KOALA Score™, one of the most predictive credit scoring engines in Australia.

Better Our loan terms are designed around the needs of small businesses. We won’t ask for upfront security on any size loan.

Faster With Lightning Loans™, we can fund up to $95k in as fast as 2 hours with only 6 months bank statements, and more complex loans up to $250k in as fast as one business day.

Stronger Our focus is on strengthening your business and our dedicated Broker team pride themselves on understanding your needs and providing exceptional service.

Contact us today to learn more about our Broker Partner Program.

Get onboard: Visit ondeck.com.au/broker Email broker@ondeck.com.au Call 1800 831 294

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OPENING DOORS TOGETHER We’re working with you to open doors for more Aussies.

westpac.com.au/brokers

© Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.

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