Australian Broker 18.15 by Key Media

AUGUST 2021 ISSUE 18.15

Pepper Money’s specialist solutions Brokers discuss the alternative lender’s range of flexible loan products /18

Meet the winning 5-Star Banks Australian Broker unveils its 5-Star Award winners in the category of banks /22

Lending options for diverse client base La Trobe Financial, Thinktank provide brokers with greater funding choices /26

ALSO IN THIS ISSUE…

HUW BOUGH MyState Bank has exciting plans to grow beyond its Tasmanian heartland. The third party channel will be pivotal to its quest to be a broker-led bank /14

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Lenders CBA reveals plan to reduce turnaround times for brokers /04 Market Phil Waugh wants to reduce channel conflict at NAB /06 Industry bodies The MFAA announces the winners of its 2021 National Excellence Awards /10

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NEWS

IN THIS SECTION

Lenders CBA announces new strategy to improve loan turnaround times /04

Market NAB’s new head of broker, Phil Waugh, wants to reduce channel conflict /06

Technology Tic:Toc seals $25bn partnership deal with Bendigo and Adelaide Bank /08

Industry bodies MFAA announces winners of the 2021 National Excellence Awards /10

www.brokernews.com.au AUGUST 2021

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

EDITORIAL

SALES & MARKETING

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Designer Cess Rodriguez Production Manager Alicia Chin

DELTA VARIANT FEARS TAKE A TOLL ON U.S. MORTGAGE RATES economic uncertainty surrounding the new COVID-19 variant is putting downward pressure on US mortgage rates, with the benchmark 30-year loan rate plunging 10 points to a five-month low of 2.78% for the week ending 22 July, according to Freddie Mac’s Primary Mortgage Market Survey. It’s the fourth consecutive week of mortgage rate decline. The 15-year fixed-rate mortgage was 2.12%, down from 2.22%. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.49%, up from 2.47% the week prior. “Concerns about the Delta variant and the overall trajectory of the pandemic are undoubtedly affecting economic growth,” said Freddie Mac chief economist Sam Khater. “Treasury yields have decreased and mortgage rates have followed suit.” GROWING

CANADIANS KEEN TO KEEP WORKING FROM HOME POST-PANDEMIC the sea change in consumer preferences brought about by the pandemic, more than a third (36%) of Canadian workers said they would refuse jobs with employers who did not permit remote work, according to a new poll commissioned by the Canadian Internet Registration Authority (CIRA). “Having been forced to work from home, many people now say they want to continue doing so,” CIRA said. “While it is no surprise that most people spent more time online in this past year, they don’t seem to be sick of it, as a majority say they don’t plan to unplug more often post-pandemic.” A Brookfield Institute report earlier this year found that one of the sectors most likely to keep employees working remotely even after the pandemic was the finance industry (39%). REFLECTING

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AMERICANS STRUGGLING WITH SHORT SUPPLY OF STARTER HOMES growing shortage of entry-level single-family homes, or “starter homes”, is posing A an enormous threat to prospective first-time buyers, according to Freddie Mac. The supply of starter homes, which the mortgage giant defines as homes up to 1,400 square feet, is hovering near a 50-year low. Data from the National Association of Home Builders suggests that the construction of entry-level single-family homes has declined as home sizes have grown bigger due to pandemic-induced demand for more living space. Smaller homes were more accessible to first-time buyers in previous generations. In the late 1970s, an average of 418,000 new entry-level home units were built per year. By the 2010s, that figure had shrunk to 55,000 new units each year, and, in 2020, only 65,000 entry-level homes were completed.

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02/08/2021 1:34:49 pm

NEWS

LENDERS THINKTANK MOULA JOINS ACHIEVES PANEL AT$1BN IN AGGREGATOR LOAN SETTLEMENTS FAST lender Thinktank is celebrating after posting $1bn in settled loans in FY21. That is more than a third up on FY20 and is a vindication of its strategy of moving from solely SME and commercial lending into the residential space. “Considering the ever-present factor ... has been the COVID-19 pandemic and the impact it continues to intermittently have on economic, business and social activity, this is an outstanding result,” said CEO Jonathan Street. NON-BANK

PROSPA, LENDI SUPPORT PAID VACCINATION LEAVE Prospa and Lendi Group are calling on employers to give staff paid leave to receive COVID vaccinations. The Great Aussie Vaccine Drive is a scheme in which companies offer their employees paid leave from work to get vaccinated. Lendi is leading the charge, and its staff across both Aussie and Lendi brands will be able to get jabbed. Prospa, Athena and Valiant Finance are also on board. Lendi CEO David Hyman said getting vaccinated was crucial to protecting Australians. LENDERS

“Our current turnaround times are one to two days for simple deals, between two and four days for more complex applications” Adam Croucher General manager third party banking, CBA

Adam Croucher, general manager third party banking, Commonwealth Bank

CBA UNVEILS NEW PLAN TO IMPROVE MORTGAGE BROKER EXPERIENCE Australia’s largest bank wants to strengthen its relationship with the third party channel by reducing loan turnaround times, streamlining processes and boosting technology has a new strategy to help mortgage brokers, which aims to reduce turnaround times for loan approvals to as little as one or two days. Adam Croucher, head of third party banking at CBA, spoke exclusively to Australian Broker to explain how Australia’s biggest lender was changing to meet the needs of the broker channel. “Our new strategy focuses on improving the overall experience for brokers, and that’s where we’ve been working exceptionally hard,” Croucher said. “We’re really COMMONWEALTH BANK

focusing on making our partnerships stronger, and what underpins that is trying to make sure that it’s simpler and easier to do business with all of our brokers. That’s been the backbone of our new strategy.” Croucher said CBA had adapted based on extensive consultation with the broker channel over the last 12 months with the aim of improving processes for third party partners across the board. “We’ve made significant investments off the back of that feedback on our operating model, our broker application system and

processes around efficiency in our credit offices and system, all to help and support brokers in the channel. “We’ve seen unprecedented volumes, and we’ve been making sure that we can scale up and make it easier to do business with us. “Our current turnaround times are one to two days for simple deals, between two and four days for more complex applications. We’re thrilled to be able to be back at those turnaround times for our brokers, and to be able to deliver good to exceptional customer outcomes.” Technology is playing a part in reducing turnaround times, as well as educating staff and brokers to improve systems efficiencies. CBA has also changed its accreditation policy so that brokers with one year of experience, instead of the previously mandated two years, can become accredited to write residential loans with the bank.

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02/08/2021 2:57:45 pm

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02/08/2021 2:57:53 pm

NEWS

MARKET REFINANCING RISES IN NSW, QUEENSLAND, VICTORIA activity has surged in three states, according to the latest market report by digital property settlement platform PEXA. The report showed that in June there were 11,000 refinances in NSW and 5,000 in Queensland. Both states recorded two-year record highs for volumes of refinances settled within a month. Victoria recorded the most refinances. Mike Gill, senior research manager at PEXA, said refinancing activity had remained elevated since spiking in June 2020 following a double rate cut. REFINANCING

ESCALATING PRICE OF TIMBER HITS HOUSING increasing price of timber is making building much more expensive for the treechanger market, according to data firm Grafa. Treechangers are being stifled by the huge rise in the cost of building materials, most notably timber, which has risen by 380% in the last year, fuelled by a lack of inward migration, as well as bushfires and the demand for new homes. Grafa chief information officer Dan Petrie said there was the double whammy of a skills shortage and a materials shortage. THE

“We service that customer and each channel equally so that they are getting a consistent experience across home loan originations”

Phil Waugh Executive broker distribution, NAB

Commercial Loans

Phil Waugh, executive broker distribution, NAB

WAUGH READY TO TACKLE DEMANDS OF NAB BROKERS, CUSTOMERS NAB’s new head of third party for home loans, former Wallaby Phil Waugh, wants to avoid channel conflict and ensure brokers and customers are treated equally played 79 Tests for the Wallabies, but he faces a bigger test in his new role at NAB than he ever faced in his illustrious rugby union career: satisfying the demands of thousands of brokers and their customers. Waugh was the head of private wealth north at Westpac and also led the bank’s COVID response before joining NAB in June as executive, broker distribution (home loans), replacing Steve Kane. He spoke to Australian Broker about his desire to resolve channel conflict and ensure that NAB is providing choice to customers. PHIL WAUGH

“My main focus is to change the narrative a little bit to ensure that the choice of how they interact with the organisation is purely in the customers’ hands,” Waugh said. “There’s always been historically across financial services an element of channel conflict about how they interact with customers. “How do we put the choice back into the customer’s hands so the customer can choose whichever channel they would like and is most convenient for them to interact with the bank? “From an organisational point of view, we service that customer and each channel equally so that they are getting a consistent experience across home loan originations no matter

what channel they come through.” When it comes to brokers’ frustrations about long turnaround times, Waugh said NAB was on “a simplification and digital agenda” with the aim of providing one simple way to do a home loan across the organisation. “This will obviously assist in ensuring the customer experience is the same no matter which channel they go through.” “[At NAB] there’s a genuine operational investment in the broker distribution business and the broker channel. That’s supported with three years of committed financial investment which will allow the broker channel, through the origination process and end-to-end value chain, to be the best in market.” Waugh said broker businesses were built on relationships and trust, and for NAB this meant providing clarity and consistency on home loan originations, policy, service levels and decisioning.

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NEWS

TECHNOLOGY EFFI MOULA OPENS JOINS UPPANEL A WORLD AT OF AGGREGATOR DATA TO BROKERS FAST has found a solution that could revolutionise the way brokers deal with aggregators and lenders and assist with BID compliance. Effi, an AI-driven mortgage broker platform that helps mortgage brokers keep on top of leads and business, designed the product as a way of helping clients to deal with open banking’s product reference data, including home loan and transaction rates. Effi CEO Mandeep Sodhi said brokers could now access data from 114 lenders’ products. EFFI

AI COULD SPEED UP LOAN TURNAROUND TIMES

Anthony Baum, founder and CEO, Tic:Toc

TIC:TOC SEALS $25BN PARTNERSHIP DEAL WITH BENDIGO AND ADELAIDE BANK A multibillion-dollar extension to its funding partnership with Bendigo and Adelaide Bank has put fintech lender Tic:Toc in the box seat for home loan growth what could be one of the largest fintech and bank partnerships in Australia, digital lender Tic:Toc has announced a seven-year extension to its funding partnership with Bendigo and Adelaide Bank, worth up to $25bn. The agreement will give Tic:Toc, a fintech home loan lender, the capacity to increase its monthly volumes by more than 300%, further accelerating its growth as one of Australia’s leading digital home loan platforms. “This extension of our partnership gives Tic:Toc access to up to $25bn of additional funding over the next seven years and highlights the competitive advantage of our asset-light IN

model, with Tic:Toc not bearing credit or interest rate risk,” said Anthony Baum, founder and CEO of Tic:Toc. “Our valued partnership with Bendigo and Adelaide Bank enables us to operate as a platform company, not an ADI or finance company. This means we achieve a greater return on capital as we’re investing our shareholders’ funds into our technology, not using it to fund loans.” Tic:Toc digitises the lending fulfilment process into simple, machine-driven tasks through its proprietary AI-driven lending platform. “Ultimately, Tic:Toc wants to help more Australians access faster

and more cost-effective home loan experiences,” said Baum. “We’ve been doing that since 2017, and this funding agreement ensures we can not only keep doing this but advance our lead as Australia’s pre-eminent home loan platform.” Darren Kasehagen, head of third party banking at Bendigo and Adelaide Bank, said Tic:Toc’s innovative platform enabled the bank to benefit from highly efficient home loan fulfilment and superior asset quality. “We have seen significant growth in our residential lending activity via third party channels, and Tic:Toc is an important strategic partner for us to grow our market share. “We are excited to announce this market-defining distribution agreement with a partner that shares our commitment to innovation and customer experience excellence for Australian consumers.”

might be the answer to loan turnaround times, according to software solutions provider PEGA. It has created products that assist banks with decision-making and can help brokers get a faster pathway to ‘yes’ on mortgages. Jonathan Tanner, head of PEGA’s Financial Services APAC section, said its Credit Risk Hub allows loans to be dealt with in real time and can use AI to influence decision-making so “we can get things back more quickly and get that offer on the table”. AI

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02/08/2021 1:36:03 pm

TECHNOLOGY UPDATE

MKM PLUGS INTO THE DIGITAL AGE

Graham Mendelowitz, Managing Director, MKM

has recently embarked on a best-in-class technology upgrade project. The company has rolled out a full suite of ApplyOnline digital solutions and, accordingly, plug-and-play access to the Australian broker channel. Leading global investment bank and asset manager MA Financial Group (formerly Moelis Australia) acquired a 47.5% stake in MKM late last year. MA Financial Group is injecting substantial funds into the non-bank lender, a portion of which have been applied towards automating and digitising MKM’s electronic lodgement and loan acquisition process. Together, the vision for MKM and MA Financial Group is to become a recognised leader in the non-bank residential mortgage lending space. “Our partnership with MA Financial Group was principally designed to scale up MKM’s product and origination strategy,” says MKM Managing Director Graham Mendelowitz. “The combination of MKM’s operational track record combined with MA Financial Group’s balance sheet and corporate presence makes for a strong partnership in terms of us becoming a significant player in the non-bank mortgage space. Of course, part of that scaling up required a technology investment.” Mendelowitz believes that the decision to choose NextGen.Net as MKM’s technology partner came down to three key specifics. “One was NextGen’s experience MKM

Mike Ponsonby, Customer Account Manager, NextGen.Net

in the marketplace. It’s a long and well-established business that comes very highly credentialled. The second component was our strong sense of their ability to provide us with ongoing support beyond just the implementation. The third element was that they have the entire aggregation market covered. Whilst we have our own relationships with aggregators, NextGen has the ability to connect us with even more broker groups. No other provider in the marketplace has that level of coverage.” NextGen.Net worked closely with MKM during the set-up. NextGen.Net Customer Account Manager Mike Ponsonby says MKM initially wanted to confirm that NextGen.Net could service the company’s needs at the same level as it offers the larger lenders it also partners with. “I assured them that we work with over 60 lenders at all levels and apply the same methodologies and approach and devote the same time and care to all our clients,” he says. MKM went live with ApplyOnline on 24 June 2021. “They have a full lodgement experience,” says Ponsonby. “They’ve got ApplyOnline ‘Supporting Docs’, the compliance tab activated, and a digital experience for signatures and borrower ID. So they’ve digitised the broker lodgement experience from end to end.” Speaking about the way MKM anticipates ApplyOnline will strengthen its relationship with

Russell Nelms, Chief Operating Officer, MKM

the broker market, MKM Chief Operating Officer Russell Nelms notes, “ApplyOnline currently provides electronic lodgement solutions to over 97% of Australian mortgage brokers and facilitates around 70% of Australia’s loan applications per year.” Mendelowitz adds, “It will be easier for brokers to submit applications. Up until now brokers have been interacting with us via an email process. Now, having ApplyOnline, a tool they’re all very familiar with, will allow them to submit their applications and lodge their applications in a much more efficient and effective manner. “We’ve built a more streamlined, technology-enabled credit-decisioning process that provides greater efficiencies in the processing of applications. This will ultimately extend to our in-house loan management system, which is also being redeveloped to create a modern back-end platform to support fast turnaround times and processing efficiencies.” Ponsonby says, “MKM recognised the importance of a great broker experience and our ability to help them achieve that. Their focus was on establishing simplicity and a really great digital experience.” Mendelowitz points to the differentiating factors that set MKM apart and which he says brokers are beginning to pick up on. “MKM of course accepts normal mainstream borrowers

like all the major non-banks. We differentiate ourselves by being purely a mortgage provider. We don’t offer any other loans. We are focused only on the mortgage space,” Mendelowitz says. “Within the mortgage space we focus on two sectors. The first is near prime. In that space, aside from competitive interest rates and fees, we’ve got some key points of difference. We accept a number of alternative income sources, and for new businesses we will accept one-day ABNs for self-employed borrowers, for example. We will also lend on land. “We also lend on partially complete construction, and we’ll consider ‘cash-outs’ for verifiable purposes. Then at a broker level, unlike most lenders we don’t have a commission clawback.” MKM’s history has been essentially in the specialist end of the market. Together with MA Financial Group, its strategy is to scale up and mainstream the brand into the near prime space. “Our intention is to have a combination of near prime and specialist products. NextGen and ApplyOnline are supporting our aspiration,” says Mendelowitz. “Obviously, if you’re going into the volume space you need your business to have an element of efficiency, and NextGen’s technology will certainly provide that for the broker channel in terms of submitting applications to us and our ability to communicate with the brokers via the ApplyOnline platform.”

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02/08/2021 1:36:15 pm

NEWS

INDUSTRY BODIES REGULATION SQUEEZING SMALLER BANKS — COBA Customer-owned Banking Association has called the current weight of compliance that small banks are under a “python squeeze” on the industry. COBA made the claims in a submission to the Senate Committee on Australia as a Technology and Financial Centre, saying the regulatory environment was putting undue pressure on neobanks and customerowned banks, which have less capacity to comply than their larger counterparts. “We have a blizzard of regulation and compliance which is consuming the smaller organisations,” COBA CEO Michael Lawrence said. THE

FBAA CELEBRATES RECORD MEMBERSHIP GROWTH FBAA has announced record growth in membership for the 2021 financial year. The peak body also reported 10% growth in membership in the last 12 months, with over 9,000 brokers now affiliated. The numbers reflect the success that the industry has enjoyed in the last year, with huge growth in home loans and broker market share. “We really do take seriously our mantra of ‘by brokers, for brokers’ and are passionate about helping every member prosper,” said FBAA CEO Peter White. THE

“It gives me a great sense of confidence knowing that the level of support I provide to my business partners is being recognised” Matt Hall BDM, Liberty

Matt Hall, business development manager – residential, Liberty

MFAA REWARDS FINANCE INDUSTRY’S FINEST AT ANNUAL EVENT The MFAA has honoured the best brokers, BDMs, aggregators, banks and non-bank lenders and support service providers across Australia at its 2021 National Excellence Awards mortgage finance industry’s top professionals have been recognised at the MFAA 2021 National Excellence Awards. Due to COVID lockdowns in Greater Sydney, South Australia and Victoria, it was the second year in a row that organisers held a virtual ceremony instead of a live event. The MFAA’s national awards reward excellence, customer service, professionalism and innovation in 23 categories and were held on 22 July, hosted by TV and radio personality Melissa Doyle. Damien Rylance of Melbourne brokerage Entourage won the Residential Finance Broker Award, while George Karam of BF Money was named top Commercial Finance Broker. THE

Finestream Capital’s Matthew Ford won the Equipment Finance Broker Award, and Tamara Virgo of TV Financial Services in Esperance, WA, won Regional Finance Broker. Australian Mortgage Awards 2020 Broker of the Year winner Mhairi MacLeod received the MFAA Community Champion Award. The Business Development Manager Award – Lender/Support Service Provider, sponsored by Australian Broker, was won by Matt Hall of Liberty. Hall said the win was “mind-blowing” and one of the greatest moments in his 22 years in the industry. “It gives me a great sense of confidence knowing that the level of support I provide to

my business partners is being recognised across this great industry of ours,” he said. “I get asked a lot about what makes a successful BDM. To be honest, I feel it’s about being willing to share your knowledge and experiences within the industry to allow others to benefit. “I try and put myself not only in the broker’s shoes but also the customer’s shoes and work to a solution which can benefit everyone.” MFAA CEO Mike Felton said the field for the 2021 awards had overcome a range of challenges to emerge successful and everyone should be especially proud of their achievements. “While continuing to overcome COVID-related process changes, lockdowns and other industryrelated challenges, the nominees and winners have managed to maintain an unwavering commitment to their customers that has been nothing short of inspirational,” he said.

2021 MFAA National Excellence Awards winners • Community Champion Award: Mhairi MacLeod, Astute Ability Group • Fintech Lender Award: Prospa • Mutual/Specialty Lender Award: Pepper Money • Non-Major Lender Award: Bankwest • Major Lender Award – Macquarie Bank • BDM Award – Lender/Support Service Provider: Matt Hall, Liberty • BDM Award – Aggregator: Ben Livera, Mortgage Choice • Aggregator Award: Loan Market • Support Service Provider Award – Small Company: Broker Profits Vault • Support Service Provider Award – Large Company: Allianz • Diversity and Inclusion Program Award: Loan Market • Professional Development Award: Loan Market

• Loan Administrator Award: Kristel Ongoco, Entourage • Equipment Finance Broker Award: Matthew Ford, Finestream Capital • Commercial Finance Broker Award: George Karam, BF Money • Diversified Business Award: My Expert • Customer Service Award – Business: Towner Finance • Customer Service Award – Individual: Priscilla Tan, SF Capital • Newcomer Award – Melissa Wright, Zest Mortgage Solutions • Young Professional Award: Joel Wyld, Peasy • Regional Finance Broker: Tamara Virgo, TV Financial Services • Finance Broker Business Award: Rise High Financial Solutions • Residential Finance Broker Award: Damien Roylance, Entourage Finance

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INDUSTRY UPDATE

PRIVATE LENDER HAS PROPERTY FUNDING SOLUTION FOR BROKERS Michael Veitch is the Head of Property Finance NSW and ACT at Keystone Capital, a funds manager specialising in investment opportunities secured by mortgages over real property assets. Veitch originates and manages lending opportunities for commercial property operators and property developers and works with direct clients, referral partners and mortgage brokers development approval or start a marketing campaign • development funding; generally land subdivisions, townhouse and villa developments or boutique apartment buildings with low or no presales • cash-outs/equity releases for business purposes – this style of lending is where a client has an unencumbered or very lowly geared property and seeks to borrow funds for a commercial purpose (often a property development without the need for quantity surveyors and presales, etc)

After 10 years at Commonwealth Bank, you took a role at a private non-bank lender. What was behind that decision? I know it is a cliché, but part A of my decision was about needing a change. The other part was frustration as it seemed like each year property lending at a major bank was becoming harder through a mixture of appetite, process rules and regulatory oversight. Large property developers can still operate in these conditions, but it was getting so difficult to help small and medium-sized property operators. These are the types of clients I enjoy working with the most.

Who is Keystone Capital and why did you join them? Keystone Capital is a funds A management business that specialises in the origination and management of property lending opportunities secured by a mortgage. In everyday terms, Keystone is a “private non-bank lender”. I joined Keystone for a couple of reasons. The role allowed me to focus on property lending and working with brokers, two things I really enjoy. The company itself has a good track record, good values and is motivated to grow.

What were the challenges of moving into a private lending role? I have to confess it was a A challenge. When I was at CBA I was guilty of thinking that every time the bank declined a deal the client could simply “get a private loan”. Private lending is not bad credit, it’s different credit. All the basics of lending – the client, the security, the loan purpose and how the loan will be repaid – are all part of private lending. Oh, and the COVID pandemic hitting six weeks after I started in the role was also challenging!

What advice do you have for brokers with clients who need private lending? Keystone is a common-sense A lender. It is important that when applying for a loan brokers clearly articulate: 1. The funding need; 2. Background on the borrower; 3. Details on the asset/ project; 4. What is the intended loan exit; and 5. Any other useful information. Also, don’t try to hide adverse history – we understand that things don’t always go according to plan and can usually accommodate if reasonable.

Michael Veitch, Head of Property Finance NSW and ACT, Keystone Capital

How is private lending different from lending at a major bank? Private lending generally is A more commercial in its credit appetite, with the trade-off being higher interest rates. For example, Keystone’s appetite is based around the client, the security property and the exit. Private lenders often have loans with capitalised or prepaid interest for the loan term. This means that whilst servicing is considered, it is not a major focus in assessment. Private lending is not a long-term solution – typical loan terms are six months to two years.

Where do you get your business from? Ninety-nine per cent of our A business comes from mortgage brokers, and they are very important to our business.

We see them as business partners as not only do they help explain where Keystone sits in the market, they match client needs with our appetite. Brokers also help with the management of a client during the loan term, and where applicable also assist with the ‘exit strategy’ of a loan, generally to a better-suited long-term financier. Where does Keystone sit in the market? What types of deals do you do? Keystone is unique in the A private lending space as we lend in all Australian states and territories and do not have postcode restrictions. Our most common type of lending includes:

• helping developers acquire development sites (land banking) and providing time for the client to achieve a

What are some of the things brokers need to look out for? If you are dealing with a A private lender for the first time, I would recommend making sure that they have an Australian Financial Services Licence, they are able to explain where and how they obtain funding (a link to a product disclosure statement is ideal) and what are their lending guidelines. Talking with your industry colleagues to get a recommendation is also important.

How do brokers find out more about Keystone? Check out our website at A www.keystonecapital.com.au or contact me directly on email mveitch@keystonecapital.com.au.

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M b S © A

Australians love their brokers. And so does ANZ. That’s why we go the extra mile when it comes to giving you support. Our customer-facing ads highlight the importance of brokers by reminding Australians they can speak directly to you, for their home loan needs. And to ensure you get the support you need when you need it, our team of dedicated ANZ BDMs are ready to work with you. ANZ is the bank that sees Brokers as partners. And that all adds up to better support for your customers.

ANZ Financial Wellbeing MFAA Quarterly Survey of Brokers (September 2020), page 10, brokers’ market share of all new residential loan settlements during September 2020 quarter grew to highest share on record at 60.1% © Australia and New Zealand Banking Group Limited (ANZ) 2021 ABN 11 005 357 522. Australian credit licence number 234527.

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COVER STORY

MYSTATE PARTNERS WITH BROKERS FOR GROWTH Brokers are an integral part of MyState Bank’s drive for growth as the Tasmania-headquartered lender unveils exciting plans to boost technology, staff and its national footprint, led by its new leaders in the third party channel, Huw Bough and Blake Albones

general manager of banking, Hugh Bough, is excited by his new role and the opportunity to bring a sharp focus and energy to the organisation’s crucial partnership with brokers. He was general manager of retail and business banking and broker at MyState for four years until 2019 when he left due to family wellbeing reasons. Following that he became a consultant to Avant on its lending strategy and identified a joint-venture opportunity, which led to him becoming chief operating officer at Kooyong Avant, providing specialist lending for medical professionals. Now that he’s back at MyState, Bough has some unfinished business and is keen to use what he learnt at Avant to assist brokers going forward. “Whilst I’d been a broker before, this gave me a really current, first-hand feel for the challenges that brokers face every day,” says Bough. “Having walked in our partners’ shoes, and I view our brokers as our partners, we have a much better understanding of what’s required.” Bough says he knows brokers are small businesses that face many challenges away from the mortgage process, such as staff, revenue, marketing and customer experience. He says MyState is here to help, with a plan to provide better technology, faster turnaround time and more relationship managers, and to extend the bank’s reach across Australia. “Technology and consumer behaviours have changed,” Bough says. “If I look to the broker industry, I think we’re going to find that lenders that have a deeper MY STATE BANK'S

understanding of the channel and are closer to the customer are going to partner better.” Bough says because MyState is a small organisation, everyone in the bank is talking either to a customer or to a broker. Looking back at his prior MyState role when he started opening up the broker channel, he says this was informed by feedback from Tasmanian brokers. “It’s that ability to listen and learn and partner at a deeper level that I think puts us in a pretty unique position.” Bough says he’s passionate about the broker channel, and the biggest factor that drew him back to MyState was the people. “It’s that human element to the channel that allows us to create a point of difference. “We have a hugely talented group of people, and the appointment of Blake Albones is proof positive of our strategy of backing people who believe in the channel.” Albones, MyState’s new head of home lending distribution, who will look after retail home lenders and brokers, has more than 20 years’ industry experience. He was previously the CEO of brokerage RateOne Financial Services, head of NAB Broker for Victoria and Tasmania, and a senior BDM at PLAN Australia. “He understands credit, he understands product, he understands policy, but most of all he understands what partnerships stand for, and partnerships in the broker channel are what counts,” Bough says. As for his own role, Bough says it presents a unique opportunity

to be able to lead a bank that has an enormous appetite for growth and seize that growth through the broker channel. Since 2016, My State has increased its home loan book by 43%. “We now see an opportunity to build on that success and substantially increase our growth trajectory.” Bough says MyState went to the market in May to undertake a $80m capital raising to rapidly accelerate its 2021–25 growth strategy, and a key part of this was dedicated to the broker channel: “We want to be a broker-led bank.” Technology is also crucial. Bough says the bank’s ability to undergo digital transformation faster than its competitors means customers find MyState easier, more trustworthy and intuitive to deal with, and it ultimately attracts more customers. “We’re respected as a digital challenger brand. I think we’ve got an enormous opportunity to be able to grow off the back of that, and that’s because we are a simpler, easier, more focused bank.” Recent home loan growth has been partly driven by the First Home Loan Deposit Scheme, but the fixed rate market, owner-occupier refinances, and, in Tasmania, the property investment business, are all particularly strong. Ongoing COVID lockdowns would cause a blip in the economy, Bough says, but he believes there’ll be a speedy recovery. “One thing that’s happened that’s of use is that we’re able to do things digitally, and there’s been more change in that space by banks across the board, so brokers are able to

MYSTATE BANK AT A GLANCE 145,000+ customers; 8,000 accredited brokers One of Tasmania’s largest employers and financial institutions Home loan book has risen by 43% since 2016 61.7% of home loans from outside Tasmania Average time of two days to conditional loan approval Announced an $80m capital raising in May to accelerate growth $30m investment in technology over the past five years Biggest growth segment: customers aged 25 to 45 Broker NPS of +71 when brokers were asked how likely they were to recommend MyState broker relationship managers to a colleague 2021–25 growth strategy focused on growing national footprint and being brokers’ bank of choice

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Huw Bough, general manager banking, MyState Bank

change how they operate.” MyState has invested in a new technology stack, built over the past five years at a cost of $30m, which will help reduce IT costs and improve the personalisation of services to the bank’s 145,000 customers and 8,000 brokers across Australia. In the last 12 months, MyState has launched a market-leading AI-based solution to provide customers with insights on spending, bills and savings as well as auto-savings capability. Bough says better technology allows the bank to scale more efficiently as competition for lending products intensifies. “Our biggest growth segment is now customers aged 25 to 45 – that just says how well we’re doing in the

digital space. Customers are starting to see us as a neobank.” For brokers, Bough says lending processes and policies have been streamlined and supporting documentation reduced to make it easier for brokers to do business with MyState. “Where possible, MyState Bank also relies on AVEs [Automated Valuation Estimates] saving time with property valuation and speeding up the time to assess the loan.” Bough says new features will be added to MyState’s broker portal, which includes ApplyOnline for loan applications. Unlike many other banks that have offshored back-office services, Bough says MyState’s residential mortgage broking credit decisioning and processing teams remain in

“That ability to listen, learn and partner at a deeper level puts us in a unique position. We want to be a broker-led bank” Huw Bough, general manager banking, MyState Bank Tasmania, which provides easy access to decision-makers. “We’re really proud of the fact that we’re close to our customers, that we collaborate to win, that we are always chasing the better … and that really means having people onshore,” he says. “We had a customer that had an urgent settlement – the broker called me up and it was the same

day. He’d been given my name by a friend, and I was able to walk downstairs and ensure we met that customer’s needs. “That ‘moment of truth’ really makes a difference for our partners and customers.” A recent MyState survey of brokers revealed that 75% of respondents said turnaround times had worsened since the end of 2020. www.brokernews.com.au

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Blake Albones, head of home lending distribution, MyState Bank

“MyState has award-winning products, NPS results that other lenders are envious of, and a compelling service proposition” Blake Albones, head of home lending distribution, MyState Bank Bough says he wants to maintain and improve on the bank’s consistently fast conditional and unconditional turnaround times. “We’ve been essentially at two days for conditional approval for the last year. Despite [loan] volumes going up quite dramatically, we’ve held to that.” Turnaround times and customer satisfaction are measured “every minute of every day” to ensure MyState is delivering for its customers and partners. While vastly different turnaround times between branch and broker have been a major frustration for brokers when dealing with some banks, Bough says MyState doesn’t differentiate between channels. “If a customer comes to one 16

of our retail lenders or they come through the broker, they get the exact same delivery in terms of service. You can’t penalise a customer’s choice of channel – we are channel agnostic, and the majors should be too.” Bough says the core advantage of MyState over other banks is the customer experience. “I’m a big believer that if we delight customers they will advocate for the bank and the brand, and they’ll give brokers referrals. A happy customer is likely to give brokers extra business and stay with us longer.” Bough says one of MyState’s goals is to be the number one bank in its heartland of Tasmania. “We’re very close to being the

biggest bank in Tassie; we’ll do that off the back of the strong broker business and support and learnings we get from there.” This would then provide a platform to increase MyState’s presence across Australia, particularly in Victoria, NSW and Queensland, and help it become “the broker’s bank of choice”. While MyState has bank branches in Tasmania, Bough says these are not necessary on the mainland. “Every broker for us is a branch, because they’re talking and dealing with a customer; everything else is digital.” He says it’s important to maintain and improve on MyState’s net promoter scores from brokers. In a recent broker NPS survey, the bank received an exceptional score of +71 when brokers were asked how likely they were to recommend their MyState broker relationship managers (BRMs) to a colleague. When asked why brokers should recommend MyState to their clients, Bough says: “You know that when you make a recommendation, the people that we have will treat it

respectfully and treat it as a genuine partnership, because we are reliant on each other to deliver the best experience we can for the customer.” MyState’s growth plan extends to its staff, with three new BRMs being hired in Victoria, as well as recruitments in NSW. It recently appointed Neville Anitelea as senior manager for broker marketing and communications to boost engagement with brokers. Bough says the bank’s broker portal provides everything a broker needs to know about working with MyState. Other activities planned over the next year to increase broker and customer awareness of the bank include advertising, PR, new sales support collateral, virtual and face-to-face events, and aggregator and broker education programs such as lunch and learns, roundtable discussions and Webex masterclasses. Albones is looking forward to his new broker-facing role at MyState. “My time at RateOne allowed me to see what brokers deal with daily: the frustrations from poor service standards by mainstream lenders, the inconsistency in credit decisions, and even simple tasks becoming too complicated,” says Albones. “My vision for MyState is to be the broker’s bank which makes things simple again and supports the broker’s own business to thrive.” Albones says the bank has ambitious and audacious growth targets. “To achieve them, we need to be a lot more aggressive in the bigger markets of Victoria and NSW. We need a salesforce that is committed to providing a great broker experience and therefore great customer outcomes.” MyState has invested heavily in its digital experience, which will complement the bank’s market-leading service. While COVID restrictions have meant fewer opportunities to meet brokers in person, this has taught the MyState team to be a lot more efficient when it comes to communication. “Brokers have become time-poor as a result of complexity creeping into this industry, and therefore shorter, sharper and more precise conversations are preferred,” Albones says. “Using data to drive conversations is paramount.” More brokers are turning to MyState because it is brokerfriendly, he says. “It has awardwinning products, NPS results that other lenders are envious of, and a compelling service proposition.” AB

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ROUNDTABLE

PEPPER’S REAL-LIFE LOANS BENEFIT BROKERS As the major banks tighten credit policies, leading alternative lender Pepper Money is helping customers who don’t fit the vanilla profile. Australian Broker spoke to brokers and Pepper’s Siobhan Williams about the lender’s non-conforming loan solutions

How long have you been using Pepper Money as a lender, and what has the company been like to deal with?

James Jabbour: At Smartmove, we’ve been using Pepper for about six years now. We had our first loan settled with Pepper in 2015, and for me I settled my first loan with Pepper in 2018. Pepper is fantastic to work with – great BDM support; the broker portal is very user-friendly; the serviceability model is very easy, very efficient to use. They have some great niches and offerings that have helped me and our business assist customers who wouldn’t necessarily fit our bread and butter. We mostly deal with prime clients, but with the exposure of Pepper we have really opened up our horizon and been able to broaden and assist a lot more clients in different positions. Felicity Heffernan: I’ve been dealing with Pepper for about the same time as James and probably using them more and more. I’ve always had a specialty, with a very niche market being vendor finance, so I’ve always been seeking out the non-conforming type lenders. I’ve found Pepper to be really great at finding solutions for those clients. More recently, I’ve got a large percentage of selfemployed clients, and the alt-doc product is fantastic in assisting them. Pepper has been refining that alt-doc product just to make it a lot more marketable. I love using the BAS, because they are the raw figures of the business, and being able to support those clients. 18

Brent Rollings: I’ve only been broking for three and a half years. I’ve been using Pepper since day one, and I think the reason I started to look at Pepper was I didn’t have the luxury of an established loan book or even a referral base. I was getting a lot of opportunities that were sitting outside of the standard conforming space, so I started to venture out and look at nonconforming lenders. I gravitated towards Pepper [because of its] flexibility around the policy and being able to help self-employed clients. The other thing I really like about Pepper is its industry-leading lead times, so we can submit an application and we don’t have to wait 30 days for it to be assessed. Great support, and again all those variations around the alt-doc products as well – BAS and bank statements. We can use lots of different things to demonstrate serviceability and income. Sam Ayliffe: I’ve been in the industry for about 20 years. I’ve probably used Pepper for five or six years. What I like about the Pepper product and team is that the BDMs are very, very receptive and very good at workshopping deals. You’ve got a good support network. The assessors own a deal, and they get to it quite quickly, which is really important for our team and everybody with turnarounds. The clients actually like the fact that Pepper gets its money from the big four. Whether we’re putting it through on a BAS, or we’re looking for a consolidation of 10 credit cards that no one will do, the Pepper product is wide enough to look after people in almost any achievable lending environment.

You can still get a rate from down to 2.35%. Pepper is wide enough for people to be able to enjoy the opportunity of taking a value loan in their relevant circumstances and still shifting it to something better while they’re there and not feeling they have to leave. Donna Beazley: I’ve been accredited with Pepper for four to five years, but the last two years I’ve used them as solutions for my clients. I’ve got a lot of self-employed clients, especially tradies. I deliver it as a solution for them if it doesn’t fit with bank statements or BAS; we’ve got the

Pepper Money markets itself as an alternative lender focusing on specialist loans. How does Pepper differ from other lenders in this space?

Donna Beazley: I don’t even compare with the others, I’m a little bit biased. There’s some others out there that do some alternative loans, but I haven’t had to go there. So, for me, they [Pepper] are the number one operating in that space. Sam Ayliffe: Pepper doesn’t disadvantage the strong investor,

“Pepper will constantly look for ways to improve and capture more opportunities so brokers can continue to provide solutions to customers” Siobhan Williams, head of retail south-east, Pepper Money accountant we have conversations with. I haven’t had any declined or turned down, which is lovely. I sell it on the fact that it’s a solution that a mainstream lender may not look at for whatever reason. But I’m going to Pepper more often as a first [choice], not a rebound, to look at the rates, because they are competitive. So I’ve changed my mindset. I’ve put a fair few deals through in the last 12 months, and I’ve got a few on the go. The pricing’s great, the service levels haven’t failed us. We can be transparent to the client straight away.

so you’ve got the client that’s got multiple investment properties; they’re not going to load their rate like some of their competitors do. But also their qualifying is really strong because the actual repayments on their investment loans do open an opportunity for the investor that’s got three, four, five properties to be able to expand a portfolio. Felicity Heffernan: Just recently I had a client with three investment properties, who had relocated and needed to get back in with an alt-doc. She’d been to

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In partnership with

the main lenders, and she couldn’t even get the money to service a property, and Pepper was just head and shoulders above, so we basically had one lender that were able to provide for her. I’m finding also my first home buyers wanting that quick turnaround – ‘can I get a one-day pre-approval, I need to go to auction’ – and still very reasonable rates. They’re there at auction; it’s an absolutely brilliant solution from a pre-approval point of view, which you can’t even get from most lenders at the moment. James Jabbour: The very first settlement I had with Pepper was in 2018 for a client who was knocked back by their bank of 15, 20 years for having a credit misjudgment. We managed to get them set with Pepper. They purchased their new home in Manly, and the property has since gone up 50% in value. We set up a plan to revisit the credit misjudgments; we actually managed to get those off her credit fi le about two years later. If it wasn’t for Pepper being open to that customer, she probably wouldn’t have got the property of her dreams. That client is probably one of my closest clients; she’s written me a really long, nice Google review and referred me to her family and friends. That was the moment that really solidified

Sometimes we do take a perceived risk on borrowers' past behaviour, but we've proven that we're able to provide solutions to customers and it results in that customer for life. I think that’s a really good value proposition for brokers – creating those customers for life is really what helps build that business model and provide longevity of the broker business. That commonsense approach is really needed, and I think we’re the best in market for that. What does it mean for your clients and the success of your business to have access to Pepper Money specialist loan products? Can you give us an example of a client who has been in a difficult situation and been successfully funded by Pepper?

Donna Beazley: Recently I was handed a client through a solicitor. The client came in thinking she had to sell her home after a bitter divorce. She had strong income and could service, but it was her credit history. Her credit report was tarnished a little bit. She was quite upset at having to move on; one of her children has a disability and she didn’t want to sell the family home and get him out of sorts. We packaged it up with Pepper, and it’s all settled. She’s got the home; her

“I’ve got a large percentage of self-employed clients, and the Pepper Money alt-doc product is fantastic in assisting them” Felicity Heffernan, mortgage broker, Property Loan Advisor Pepper for me as an option with those clients that might not fit the prime product or the main lender. I’m also starting to use them now as prime lender – the rates and the turnaround times are second to none, the offering’s great, and the support from the team is also fantastic. Siobhan Williams: The turnaround times do make a really big difference. Our commonsense approach to that real-life customer situation where we really understand a good balance between risk and opportunity.

equity’s already grown substantially in nine months. The repayments are really affordable. It’s a really good solution and a good feeling to know that we have that there for her. It was an absolute win for everyone involved. Sam Ayliffe: What I love about Pepper is they’re not disadvantaging the self-employed client that hasn’t done their tax returns. Pepper is actually looking at those BAS statements, looking at the business bank statements, and you’re still getting rates from 2.89%. We’re not just mobile lenders or brokers any

more; we’re more solution-based providers, and Pepper provides that for us. Customers that have had a loan for five years with one of the majors and they’re floating at 3.5% and haven’t done their tax return so the major’s not going to move on them, well, we can move it for them at 2.99% to Pepper, and that’s a pretty good solution. Another good win is a customer with a lot of debts that they needed to consolidate – a lot of the banks shy away from more than four, which is ridiculous. I did that for a customer about nine months ago with Pepper, and she was absolutely delighted because they were going backwards – now they’re $2,000 a month better off. So, Pepper is a great solution and is creating opportunities for people that they didn’t think were there. Brent Rollings: Just this month I’ve had two divorce settlements, and, very similar to Donna, we had two female applicants looking at losing their homes, with the kids and everybody being impacted. One of them was referred to me after being unsuccessful with prime lenders. We managed to keep her home by taking a commonsense approach to the income she receives. Those two families and those two applicants, it’s just lifechanging for them to hold their homes. Eighteen months ago I had a young couple – a female applicant with some credit conduct issues, and a male applicant who had been self-employed for 13 months with no tax returns. They bought a place in Emu Heights; I think they paid $760,000. They’d been declined by CBA and a couple of other primes. They bought this home 18 months ago, and it’s worth probably $250,000, $300,000 more than what it [was]. Again, it’s just lifechanging for clients when they can find their way into Pepper with the right broker. Felicity Heffernan: I’ve also got a good number of people over 50, good clients with strong asset positions, and then being able to produce some nice exit strategies where a lot of the conforming lenders are probably too tight on that. Pepper is fantastic with the exit strategies for a lot of those clients. Working with the Pepper team it’s been fantastic being able to put those exit strategies together and get those clients over the line. Having a life event does not stop them from getting a loan.

ROUNDTABLE PARTICIPANTS

Siobhan Williams Head of retail south-east, Pepper Money

Felicity Heffernan Mortgage broker, Property Loan Advisor

Brent Rollings Lending manager, Astute Financial Management

Donna Beazley Credit advisor, Oxygen Home Loans

Sam Ayliffe Principal, Astute Financial Management

James Jabbour Team leader and mortgage advisor, Smartmove Professional Mortgage Advisors

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How long have you been offering clients specialist loans? Knowing what you know now, do you wish you had started writing specialist loans earlier?

James Jabbour: A lot of our clients are in that prime space. Having done my first transaction with Pepper in 2018, in hindsight I do wish I’d had a better understanding of Pepper and its offerings, because I do feel like there were probably a few clients I could have helped that I might have let walk away because I didn’t quite understand what specialist products were out there. I’m grateful that Pepper has made a huge effort to upskill the team, to constantly do webinars, workshops, visit the offices and educate us on what can be done for those customers that won’t fit a prime or mainstream provider. Felicity Heffernan: I’ve always worked in that alt-doc space. I really like it, and I think it sets your business and yourself up – it just gives you that specialty. I do favour alt-doc lending over everything at the moment. If you can go out there as a specialist broker, I think it’s fantastic for your business. Your clients are always going to be sticky, because you’ve helped them in ways that nobody else can. I probably wish I’d known a lot more back when I first started doing it. Sam Ayliffe: If we think about the last few years, the lenders have got harder and harder to deal with, slower at turnaround times, looking closer at clients’ living expenses. It means that a lender like Pepper, I wished I’d used them earlier – there’s clients I’ve let go that I probably could have helped. The strength of Pepper has really come from the tightening of credit across the industry. It’s a great opportunity to be able to put it in our bag and have that solution for our clients. What growth in specialist Q loans have you experienced, and where do you think it’s heading in the next 12 months? Brent Rollings: The number of loans we’ve written through Pepper year-on-year is increasing. It’s actually making me think maybe 20

I need to change the way we are marketing our business as well. Maybe there’s a place for us to start to specialise a bit more in this space. It’s not getting any easier with all the traditional lenders, and this space just provides so many options and possibilities for your clients. Donna Beazley: I've been around a long time, and it would be silly for a broker not to get on board, especially in the last three years where the majors are saying no, this is not our space. I've noticed a growth of around 20% over the last two years. I don’t even go to majors now. As soon as I can identify the situation of the client, the history and how it fits, I’ll pick Pepper first. The growing market is absolutely going to continue to grow, especially with the self-employed. I can see that it will probably grow another 20% on my books. Sam Ayliffe: When the major banks reviewed their low-doc policies, it opened the door for specialist lenders. Having the Pepper product coming on and Pepper educating us and making sure we know how to place its

and Pepper does so many things differently to the mainstreams and other specialist lenders. They look at things like 40-year loan terms for example; they take existing repayments on existing loan facilities – that automatically is a couple hundred thousand in borrowing capacity. With that customer you might qualify them to purchase their next dream home or investment property. I see the specialist products becoming a lot more common in the next 12 months. With COVID, a lot of small businesses have really been impacted, and you look at some of the specialist products like the alt-doc loans where we can disregard the previous year’s tax returns – those solutions can help the next client get into their dream home or consolidate some debt. Felicity Heffernan: I see such an opportunity for brokers to specialise and grow in this space, when you think about the number of self-employed out there. I’ve got two accountants that absolutely love the specialist loans, and that’s where a lot of the growth is coming from, because, let’s face it, the BAS returns are the raw

“What I love about Pepper is they’re not disadvantaging the self-employed client that hasn’t done their tax returns” Sam Ayliffe, principal, Astute Financial Management products does lead to the specialist market growing. It will grow and become a significant percentage more than it is, because as the mainstreams get harder, the more people want to stretch their borrowing capabilities or consolidate multiple debts. When we are qualifying with lenders and I think one of those clients might be a little bit tight, to qualify them with Pepper anyway because the Pepper product’s pretty good. That could be the $200k difference in borrowing capability for the client. James Jabbour: We’ve looked at the Sydney market in the last six to eight months, and weekon-week there’s growth in record sales. Borrowing capacity is such an important thing for our customers,

figures of the business. The two accountants are more than happy to do accountants’ letters and get the deal across the line, which is an absolutely fantastic solution for these people. Siobhan Williams: We’re in a constantly evolving environment. As a common-sense solution provider, Pepper will always look to fill gaps where we feel we can provide an opportunity to those underserved Australians to realise their financial goals. We will constantly look for ways to improve and capture more opportunities so brokers can continue to provide solutions to those customers. We’re seeing more and more data for clients – comprehensive credit reporting now gives us two years

of history. I think we’ll always have customers that might not fit that vanilla persona, and with more and more access to information we’ll just organically grow with that. Alternative income verification methods can provide great ways for those self-employed to substantiate their current and sustainable income; that’s such a big space for us. By looking at alternative documents we can really assess where that business is at today, rather than relying on old data. How does Pepper Money assist brokers in terms of examining a client’s complete financial and personal circumstances and ensuring a speedy and efficient loan process?

Sam Ayliffe: Pepper makes it easy for us, so when we lodge an application we feel confident that it’s going to come back approved. Some of the banks don’t give us that same confidence. With Pepper we know it’s going to be done in a timely manner; they’re not going to make us wait a week or two – things get turned around. They make it easy with live credit reporting and a common-sense approach. Felicity Heffernan: What I’m loving at the moment is the speedy turnaround times. Whether I’ve got a non-conforming or somebody I would normally place with a major, I’m choosing Pepper simply because I can get that deal done. The confidence of knowing that deal’s going to be approved, I can get it through quickly, I’m eternally grateful for that. I think Pepper has got it right in terms of how much extra the assessors are having to ask – they’ve got common-sense lending. Was there a pivotal moment in your broking career that led you to embrace alternative solutions for your customers?

Donna Beazley: My light-bulb moment would have been over two years ago when I had one of my first alt-doc clients positioned at Pepper. They were a young couple in their late 20s, working really hard, saving up a good deposit – theirs was income-based because they had a business. I wanted to know what their plans were not just in the next two years – it was

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In partnership with

Australian Broker roundtable with Pepper Money and brokers. Clockwise from top left: Siobhan Williams, Pepper Money; Brent Rollings, Astute Financial Management; Donna Beazley, Oxygen Home Loans; Sam Ayliffe, Astute Financial Management; Felicity Heffernan, Property Loan Advisor; James Jabbour, Smartmove Professional Mortgage Advisors

five and seven and 10. These lucky people are due to settle tomorrow, two loans with Pepper – that’ll be their third property they’ve purchased in three years. One of the properties was a bit of a challenge. Had I not run the deal by Pepper, they would not be settling on their third property. Brent Rollings: It was at the beginning when I first started in broking and you really try to get outcomes for your clients. That drove me to look for alternatives and solutions. It was really early on that I thought, hang on,

“The rates and the turnaround times are second to none, the offering’s great, and the support from the Pepper team is also fantastic” James Jabbour, mortgage advisor, Smartmove I don’t need to go to these primes to be disappointed and not get an outcome for my clients. All those examples we talked about before – we’ve had clients go through divorces; self-employed

clients; credit conduct issues – the light bulb was on very early. Sam Ayliffe: When the major banks started pulling away from that low-doc market, it was a

lot harder to place the genuine clients that earn the good money that just haven’t finished their tax return or were just behind on them or had a period when their business was impacted, like COVID. That did steer me to look for alternatives for those clients that genuinely wanted to buy a property, and if they didn’t buy that year it would be up by 20%. Pepper was the solution. They came in and created those opportunities. and those clients’ equity is so much stronger from being able to have a lender like Pepper earlier. That was the pivotal moment. AB www.brokernews.com.au

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SPECIAL REPORT

5-STAR AWARDS 2021: BANKS

SPECIAL REPORT

2021

BANKS Australian Broker celebrates the nation’s top banks as chosen by brokers across a range of criteria, including turnaround times, credit policies, digital experience, BDM support, broker training, and communication

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BROKERS A KEY DRIVER OF BANKS’ SUCCESS ongoing COVID-19 lockdowns and restrictions affecting almost every facet of life in Australia, the appetite for property remains high. Whether this is driven by treechangers or seachangers moving out of the major cities, first home owners taking advantage of government incentives to buy their dream home, or families renovating or refinancing to make the most of low interest rates, banks and DESPITE

Banks realise the importance of brokers in bringing residential and commercial finance business their way. Australian Broker surveyed more than 400 brokers across the country to gauge their views on Australia’s banks for the 2021 5-Star Awards. Brokers were asked to determine what features in a bank were most important to them. The brokers were then asked to rate banks across nine criteria –

“As a dedicated broker-only bank, the broker channel is key to our current and future long-term success”

METHODOLOGY Banks are always looking for an edge over their rivals. And they only need to look at the broker channel. MFAA figures released in June 2021 showed that the mortgage broker market share rose 27% in a year. In the first quarter of the year, brokers enjoyed market share of 57.5%. Banks are increasingly reliant on the broker channel to drive higher volumes. Brokers will be drawn to banks that have great rates and product ranges, quick turnaround times, clear credit policies, and good technology and communication. Now extensive market research has revealed brokers’ best banks. Australian Broker surveyed more than 400 brokers across Australia to understand what brokers think of current market offerings and bank/broker relationships. Brokers were quizzed on their most preferred bank and asked to rate them on broker communication, training and development of brokers, BDM support, product range, interest rates, credit policy, turnaround times, digital experience and commissions. A number of banks were identified, and they all received ratings above 80% for commissions, credit policies and turnaround times. The 5-Star Bank Awards were presented to the four banks that achieved more than 80% ratings across all nine criteria.

Raj Kapoor, head of broker distribution, Adelaide Bank brokers are benefiting from clients seeking property finance solutions. This massive demand for loans has overwhelmed some lenders and led to long turnaround times and channel conflict with brokers. But those banks that have had the support infrastructure and technology in place and, more importantly, great relationships with their brokers, have succeeded in avoiding these problems and enjoyed impressive loan volume growth through the broker channel.

product range, interest rates, broker communication, commissions, broker training and development, BDM support, digital experience, credit policy and turnaround times. Brokers picked four banks as the best in the industry, which achieved more than 80% ratings across all criteria. The four banks winning a 5-Star Award this year are Adelaide Bank, Bankwest, Macquarie Bank and ING. Adelaide Bank head of broker distribution Raj Kapoor says it is a

82%

of all banks received a top rating of excellent for commissions

100%

of all banks were rated excellent for credit policies

great honour to receive the award in a unique and challenging year. “This award is testament to the hard work of our fantastic and growing BDM, back-office and support teams; without whose efforts, this wouldn’t be

82%

of all banks were rated excellent for turnaround times

possible,” Kapoor says. “As a dedicated broker-only bank, the broker channel is key to our current and future long-term success. “Our strategy in the broker channel has always been to provide

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SPECIAL REPORT

5-STAR AWARDS 2021: BANKS

personal service to our brokers, and being a smaller player in the market gives us a nimbleness and a more responsive approach to broker feedback and to meeting their needs as they grow their businesses.” Kapoor says Adelaide Bank has had had an incredibly successful year in the broker channel, with almost 50% growth in applications and approvals year-on-year. “Our focus in the coming 12 months is to continue to build on this momentum by further cementing the strong relationships we have formed with our broker partners and continuously improving our processes by providing a compelling broker value proposition. It’s a simple strategy, and we’re running hard with it.” Ian Rakhit, Bankwest’s general manager third party, says for Bankwest be rated so highly by

“This [award] ultimately means brokers believe we’re going above and beyond to help their client/our customer, and this is what matters most” Glenn Gibson, acting head of retail bank, ING brokers means a great deal to him and his colleagues. “We’re incredibly proud to receive this accolade from the broker community,” Rakhit says. “We’re determined to deliver brilliant customer experiences every day, and we know many people prefer the support of brokers in making one of the biggest financial decisions of their lives.” Rakhit says Bankwest believes in brokers so much that 80% of its

home loans originate through the bank’s 12,000 accredited brokers. “Bankwest strives to be the best broker bank in the country … we believe the best way to achieve that is by listening to brokers; delivering what they need and want.” Bankwest operates a case ownership model, with one point of contact throughout the application process, in order to be as efficient for its brokers as possible. The bank enjoyed a significant

increase in home loan applications in the past 12 months, including record volumes in March, April and May. Rakhit says to help meet demand Bankwest has reverted to pre-pandemic lending of up to 98% LVR (inclusive of LMI) for owner-occupier purchase and construction applications. Wendy Brown, head of broker sales at Macquarie Bank, says Macquarie is thrilled to receive a 5-Star Award. “We’ve been working really hard behind the scenes to deliver a seamless experience when it comes to the home loan application process, so winning awards like this means our efforts are resonating with brokers.” Brown says Macquarie Bank is committed to the broker channel, so to know brokers rated the bank among the best in key focus areas,

WHAT IS MOST IMPORTANT TO BROKERS WHEN CHOOSING A BANK?

Turnaround times

Credit policy

Digital experience

BDM support

Broker training and development

How important is this feature? Rank in order of importance

12.4%

12.1%

11.9%

11.2%

10.9%

Percentage of brokers who thought this was most important or important

23%

14.9%

12.8%

Percentage of brokers who thought this was not important

11%

2.1%

8.5%

“We’ve been working really hard behind the scenes to deliver a seamless experience when it comes to the home loan application process” Wendy Brown, head of broker sales, Macquarie Bank

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“Bankwest strives to be the best broker bank in the country … we believe the best way to achieve that is by listening to brokers” Ian Rakhit, general manager third party, Bankwest such as turnaround times, digital experience and BDM support, is very rewarding. “We’ve made big investments in these areas in recent years,” she says. Macquarie Bank provides brokers with regular updates on the latest policy and industry changes, as well as weekly emails on processing times. Brown says broker feedback is also important. “We do everything we can to action it, all with a view to making it easier to do business with us.” Macquarie Bank was pleased with the growth in its home loan portfolio, seeing the benefits of significant investments in its mortgage platform, market-leading product and turnaround times. “We’re also proud to have built a leading digital experience, and we’re always investing in our digital capabilities to meet the needs of brokers and their clients.” Glenn Gibson, acting head of retail bank at ING, says the bank is experiencing sustained growth through its broker channel as a direct result of its service, products and price proposition. The 5-Star Award is of significant importance to ING because brokers are such a key pillar in helping it maintain an excellent customer experience. “This ultimately means brokers believe we’re going above and beyond to help their client/our

customer, and this is what matters most,” Gibson says. “The broker channel to us is of utmost importance. As a digital bank we don’t have branches, so around 80% of our home loan business comes via the broker channel. “We maintain strong relationships with our brokers by listening and acting quickly on what brokers are telling us. Our ability to maintain a turnaround time of less than three days for the past two years is testament to this.”

Adelaide Bank Bankwest Macquarie Bank ING

GROWTH OF OWNER-OCCUPIER HOUSING LOANS THROUGH AUSTRALIAN BANKS $1,300bn

$1,200bn

$1,100bn

$1,000bn Mar 19

Aug 19

Jan 20

Jun 20

Nov 20

Apr 21 Source: APRA, June 2021

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FE AT URES

SPECIALIST LENDING

SPECIALIST SOLUTIONS FOR A GROWING MARKET

Non-bank lenders La Trobe Financial and Thinktank have a range of funding solutions for brokers looking to help self-employed clients and others who need specialist loans

are plenty of banks and other lenders that are servicing the standard or ‘vanilla’ home loan market. But what about brokers whose clients are self-employed, may have variable income, their own SMSF, or are operating through trust structures? La Trobe Financial and Thinktank have the loan solutions and support infrastructure to assist these brokers and their clients. Australian Broker spoke to La Trobe Financial senior vice president and chief lending officer Cory Bannister and Thinktank general manager partnerships and distribution Peter Vala. THERE

Specialist loan products Bannister says specialist loans generally require a conversation with each borrower in order to fully understand the application before an approval can be made. “There might be a detail within the application that fails automated scoring models, however, upon review, is easily explained and forms part of an entirely reasonable and suitable transaction,” Bannister says. “These ‘credit events’ include divorce, illness, change of employment, relocations and variability in income. He says in addition to ‘credit events’, specialist loans at La Trobe Financial are also experiencing strong demand from the selfemployed seeking alternative income verification methods, as well as those looking to borrow via their SMSF. As the oldest non-bank of size and scale with 70 years of experience, Bannister says La Trobe Financial’s core purpose since setting up in 1952 has been to service those borrowers who are underserved by major lenders. “So when, for whatever reason, the banks narrow their lending spectrum 26

as we have seen recently, we are ready to lean in and assist – and we consider this to be specialist lending.” Vala says Thinktank views commercial loans as specialised if the applicants are self-employed or there is a degree of complexity, for example, with multiple trust structures, or if the situation involves anything other than full-doc serviceability. “We have always offered alternative income verification [alt-doc] products, such as Mid Doc and Quick Doc, which many now term as specialist loans,” says Vala. “Specialised lending for us tends to be more about the uniqueness of the transaction that may vary certain pivotal credit criteria, such as high LVR, non-standard security

a home, and clients who want to build their retirement nest egg via an SMSF loan. “All of these products can become a ‘specialist loan’ at a point in time through circumstance,” he says. “This could be due to variability in income, a change in employment, minor credit impairment, self-employed borrowers without up-to-date financials, or that segment of the market that would have been classified as ‘prime’ by the major banks just two years ago but now find themselves outside the banks’ ‘target zone’. Bannister says the point is that a borrower’s circumstances change regularly, as do lender appetites, and it’s often the case that “a borrower

“By helping a customer navigate a complex and uncertain path, you will earn their trust and create a customer for life” Cory Bannister, senior VP and chief lending officer, La Trobe Financial property or sources of income, or transaction structure.” Thinktank has been a specialist in structured commercial lending since 2006 and in SMSF lending for the past eight years. Vala says more recently it has also extended into alt-doc options for residential loans with its popular Mid Doc product. “However, we have not ventured that step further into credit-impaired lending, which is another specialist field in itself.” Bannister says La Trobe Financial has one of the broadest loan ranges in the market, covering first home buyers, upgraders, downsizers, the self-employed, those wanting to build

is a ‘specialist’ customer today, with more options available tomorrow”. This changing dynamic provides the great proof point of the customer value proposition to a broker, certainly more than any vanilla home loan. “By helping a customer navigate a complex and uncertain path, you will earn their trust and create a customer for life,” says Bannister. Vala says while all Thinktank loans are secured by standard commercial and residential security types, its Mid Doc products only need serviceability to be supported by the self-declaration of income, along with one of: an accountant’s letter, most recent BAS statements, or the last six

months’ trading bank statements; whereas its Quick Doc loan only requires a self-declaration. “These loans are popular with self-employed and SME clients who appreciate the ease, convenience and speed of approval while also knowing that, if and when the timing suits, they can convert over to a Full Doc loan product at no cost upon meeting the associated product criteria.” Growing borrower demand Vala says demand for alt-doc solutions continues to grow and has been accelerated by the emergence of COVID-19. “Why? As the economy stops and starts, historical financial statements may not reliably demonstrate the customer’s trading position or profitability and therefore might fall short of meeting traditional full-doc criteria,” he says. Thinktank’s Mid Doc and Quick Doc products rely on the borrower’s self-certification of current earnings, supported by one of the various verification document options above. “This has been a major benefit during COVID and has enabled ready access to much-needed credit for good-quality borrowers,” says Vala. Bannister says the coronavirus pandemic has been one of history’s most economically disruptive events, creating volatility in consumers’ income and expenses, both of which can cause challenges when applying for vanilla loans with major banks. “We expect the pandemic to create further demand for specialist non-bank solutions for the short- to medium-term ahead.” COVID-19 is also accelerating the gig and freelance economies and the rise of e-commerce, says Bannister, creating a greater need for specialist loans. “The irregular nature of their employment often means that they sit

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

outside major banks’ loan acceptance criteria. Without specialist lenders that can assess their applications manually, they are frozen from the market,” Bannister says. La Trobe Financial thinks the broker industry will receive a major boost on the back of COVID-19 in 2021 and beyond. “We know that where there is confusion and complexity, there is opportunity. Consumers can’t be expected to navigate their way through the thousands of loan products on the market,” Bannister says. “Brokers can use their technology, knowledge and experience to distil these options quickly and appropriately to assist customers. As a result, we expect to see broker share heading back to 60% plus and retargeting the 70% milestone, and we hope to see NBFI market share heading back to 10% and beyond.” Vala says, “The flexibility of alt-doc products makes them a great option for brokers to offer their clients in uncertain times.” He says the advantage for brokers is that alt-docs are also a quicker form of finance for borrowers to apply for and lenders to underwrite and approve, compared to traditional loans that require time-consuming full-year or interim financials and/or one or more of cash flow forecasts, budgets and assumptions. “As digitisation progresses throughout the industry at pace, alt-docs offer an opportunity to streamline the credit assessment as well as speed up critical steps such

as valuation ordering, credit history enquiries, borrower and guarantor KYC [Know Your Customer], and fraud checking.” Vala says all Thinktank loans are also set and forget, with no annual reviews or regular property revaluations, ensuring no onerous or ongoing requirements or uncertainties for borrowers. Thinktank keeps brokers informed

Peter Vala, general manager partnerships and distribution, Thinktank

for any transactions,” Vala says. Bannister says there is no difference between a broker’s approach to selling a mainstream/vanilla loan and a specialist loan – the process is the same. By following responsible lending guidelines, brokers are well equipped to complete a specialist loan application. “The key is to understand the borrower’s situation and to be able

“The flexibility of alt-doc products makes them a great option for brokers to offer their clients in uncertain times” Peter Vala, general manager partnerships and distribution, Thinktank about its loans and provides training in conjunction with aggregators, such as Commercial 101, Commercial Balance Sheet and Construction Lending and SMSF sessions. “We regularly create and shape bespoke sessions for brokers that may be seeking training in specific areas of finance and not just property secured lending,” says Vala. Thinktank also communicates regularly with brokers via its newsletters and updates to its aggregator partners. “If a broker is not yet accredited and wants these regular updates, our relationship managers can arrange accreditation and immediate support

to communicate that clearly to the lender. The more information we have up front, the quicker and easier we can provide a solution.” La Trobe Financial holds regular webinars and attends PD days and presentations to educate brokers on its product range. Bannister says it has also a nationally renowned team of credit-skilled client partnerships managers to provide a highly personalised relationship service model to brokers. Market trends Vala says Thinktank hopes for more settled conditions ahead and that the current financial year in turn offers

a more consistent and confident trading environment. But with further uncertainty and disruption likely, it anticipates an ongoing increase in alt-doc activity until at least the end of 2022. This is because “quality borrowers in established, enduring industries” are still experiencing instability, but they need credit to support their operations and grow. “Thoroughly understanding a self-employed or SME customer’s cash flow and circumstances during and post COVID does enable brokers to provide incredibly valuable assistance at a challenging time and be effective, informed advocates for their clients across a range of financial needs,” says Vala. Bannister says the major banks’ persistent tightening of bank acceptance criteria has been unfolding under their simplification strategies for the past three years. They are pursuing a narrower segment of the market – the ‘prime vanilla’ home loan that can be scaled en masse, thanks to highly automated credit processes. “We expect this focus will only intensify should the proposed change to responsible lending guidelines be passed as per the recent government draft,” says Bannister. “This leaves a large segment of the mortgage market overlooked. We are terrifically positioned for this segment of the market and expect NBFIs will play one of the most important roles in the mortgage lending space over the next three years.” AB www.brokernews.com.au

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DATA

VICTORIA

NT SPOTLIGHT

Melbourne and regional Victoria maintain robust growth in dwelling prices Melbourne’s median price remained above $1m in the June quarter, data from the Real Estate Institute of Victoria (REIV) shows. Over the quarter, the median house price in Melbourne hit $1.01m, while in regional Victoria the median value reached $559,500. REIV president Leah Calnan said these recent gains were a confirmation that the historic March quarter result was not a one-off spike following the 2020 lockdowns. “Buyers and sellers across the state are still active within a growth market, with all metrics holding strong. Winter is typically a relatively low-activity period, but this year was different,” Calnan said. Regional markets recorded 10.5% quarterly and 20% annual growth in dwelling prices – the highest on record. “We know that COVID-19 has created flexibility in employment arrangements, and hybrid working models are allowing people to set their property sights beyond Melbourne. It’s also true that there are plenty of investment opportunities in regional areas.” Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

7.5%

$430

2.8%

Metro (H)

$840,500

3.3%

Metro (U)

$620,000

0.7%

3.4%

$400

3.5%

Country (H)

$475,000

4.7%

17.1%

$370

4.3%

Country (U)

$349,725

4.0%

12.7%

$300

4.6%

WESTERN AUSTRALIA

Perth is proving to be a thriving market for property investors Investors are boosting their presence in Perth as the number of rental listings rise, according to the latest report from the Real Estate Institute of WA (REIWA). Data from Reiwa.com shows that the number of rental listings has increased by 5.7% in the state capital. Five suburbs – Balga, Highgate, Osborne Park, Kardinya and Piara Waters – have reported the highest gains, of between 54% and 108%. “The increase in listings since the end of the moratorium indicates investor confidence is starting to return,” said REIWA president Damian Collins. The increasing investor presence was supported by recent ABS data, indicating an annual gain of 209% in investor loan approval. “We should see more available rental properties hit the market as investors return and current tenants take advantage of Western Australia’s affordable house prices to become first home buyers,” Collins said. “However, this will not happen if investors are further deterred from buying property in Western Australia.” Area

DARWIN ENJOYS A HOUSING BOOM

Are investors finally cashing in on the NT capital’s stellar market performance? property market performed “well beyond expectations” over the first half of the year, according to the latest report from Herron Todd White (HTW). Are investors already taking advantage of the city’s booming environment? Jeremy Callan, a property valuer at HTW, said Darwin had recorded a substantial lift in dwelling prices in recent months. Citing figures from CoreLogic, he said Darwin had reported 20.3% annual growth in house values in June – the strongest performance of any capital city in Australia over the period. “The greater Darwin market is seeing increases in housing value, shorter days on market, an increase in weekly rental rates and a decrease in vacancy rates. These large increases in value must be tempered by a reminder that the Northern Territory is starting from a far lower base than other states, with five or so years of continued decline in property values and business confidence,” he said. DARWIN’S

DARWIN HOUSING MARKET INDICATORS

New listings:

Weekly

Gross

growth

median

rental

rent

yield

Median price (houses)

Metro (H)

$530,000

3.0%

7.4%

$400

4.1%

$516,000

Metro (U)

$410,000

4.0%

$370

4.9%

Country (H)

$390,000

4.1%

15.2%

$380

5.2%

Median price (units)

7.5%

$235,000

$330

803

$564,125

Monthly sales volume

Median price

Median days on market

$398,250

Monthly sales volume

Median price

Median days on market

SUBURB TO WATCH: ROSEBERY

12-month

growth

15.0%

Total listings:

Units

Quarterly

4.5%

143

Houses

price

$235,000

Source: CoreLogic, July 2021

Property stats for the week ending 25 July 2021

Median

Country (U)

Three factors are driving the housing boom in Darwin: population, stimulus packages and renewed confidence. Callan said Darwin had served as a “haven” amid the national lockdowns, with many southerners relocating to the city. “Given the small population base, the extra thousands who came north provided an immediate upswing in the rental market. This has now flowed into more permanent residents in the Northern Territory, especially looking to take advantage of lifestyle opportunities and the relatively low house prices.” However, investors have yet to cash in on this boom, as owner-occupiers still dominate the market. Investors in Darwin are traditionally interstate buyers targeting the unit market. Callan said the strong rental market and cheap units in the city could potentially lure investors. “The forward pipeline of construction, mining and gas and infrastructure projects has placed the Northern Territory in a positive frame for the first time in a good while,” Callan said.

12-month growth

3-year growth

Average annual growth

Gross rental yield

10%

1.1%

12-month growth

Average annual growth

Weekly advertised rent

Gross rental yield

-4%

$380

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TASMANIA

The state has boosted its partnership with housing providers The community state government urged to support

HIGHEST-YIELD SUBURBS IN NORTHERN TERRITORY Suburb

House

Gross rental yield

Median price

Quarterly growth

12-month growth

Average annual growth

KATHERINE SOUTH

$255,500

5.9%

TENNANT CREEK

$230,000

15%

3.7%

THE GAP

$247,000

-13%

-1.9%

KATHERINE EAST

$295,000

-5%

-13%

4.9%

MILLNER

$220,000

-3.2%

DARWIN CITY

$318,000

-9%

-2.9%

Area

QUEENSLAND

tenants and government landlords has renewed The Tasmanian its pledge to provide access to good-quality social housing for vulnerable Tasmanians with new support services from Centacare Evolve Housing (CEH). Under the state’s Community Housing Growth Program, the CEH will expand services into Austins Ferry, Berriedale, Bothwell, Brighton, Campania, Colebrook, Granton, Kempton, New Norfolk, Oatlands, Old Beach and Rosetta. The CEH will roll out additional housing and support services from September. Michael Ferguson, minister for state development, construction and housing, said community housing providers were a crucial part of the social housing sector given their access to more funding options. “This means they have more money to provide more housing services like maintenance, upgrades, housing support and community development. This will provide certainty and confidence for both tenants and financial institutions,” he said. Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

Metro (H)

$600,000

4.3%

13.0%

$470

4.3%

Metro (U)

$470,000

1.0%

6.0%

$400

4.9%

Country (H)

$400,000

4.2%

13.6%

$350

4.9%

Country (U)

$315,000

1.8%

5.5%

$290

5.2%

Median

Quarterly

12-month

Weekly

Gross

price

growth

median

rental

rent

yield

Weekly mortgage repayments are becoming cheaper than rents Homeseekers in Queensland are better off buying than renting, according to the latest CoreLogic report. The data showed that 55% of homes in Brisbane and 73% of dwellings in regional Queensland are now cheaper to buy than rent – a higher proportion than the national record of 36% of homes. The report showed that it was cheaper to buy than rent a home in 97 suburbs in Queensland, based on data recorded in March. Mortgage payments in these suburbs were lower than $250 per week. CoreLogic research director Tim Lawless said the state had a “healthier” mortgage serviceability rate given its softer housing market conditions during the previous growth cycles compared to NSW and Victoria. “Over the past 10 years, Brisbane housing values have increased at a much lower rate than Sydney or Melbourne,” Lawless said. “Brisbane values are up 33% since June 2011 compared with a 90% rise in Sydney housing values and a 58% lift in Melbourne.”

Metro (H)

$610,000

2.7%

6.5%

$430

3.9%

Metro (U)

$415,000

1.8%

3.8%

$390

5.0%

Country (H)

$482,000

2.2%

4.5%

$420

4.7%

Country (U)

$420,000

2.5%

7.3%

$360

4.7%

Source: Except where otherwise stated, all data sourced from CoreLogic, July 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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Celebrating 20 years 15 OCTOBER 2021 • THE STAR SYDNEY

THANK YOU FOR YOUR NOMINATIONS Australian Broker & MPA would like to thank their readers for the incredible response to the call for nominations for the 2021 Australian Mortgage Awards. It’s great to see so many talented professionals and organisations within the mortgage industry who have excelled during an extraordinary year. Excellence awardees will be announced in August. Winners will be revealed live and celebrated at the highly anticipated black-tie awards gala on 15 October at The Star Sydney. BE PART OF THE INDUSTRY EVENT OF THE YEAR

Visit australianmortgageawards.com.au for table reservations or sponsorship opportunities

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