Australian Broker 18.05

MARCH 2021 ISSUE 18.05

INTERNATIONAL WOMEN’S DAY Female finance brokers have come together to celebrate the achievements of women in the industry and to push for empowerment and greater representation /14 ALSO IN THIS ISSUE… Technology news Fintech SocietyOne joins Westpac’s banking-as-a-service platform /08 Keeping pace with tech Calculated Lending’s Bianca Patterson negotiates loan for single mum of five /22 Record market share for brokers The industry is celebrating as MFAA figures show a record quarterly result for home loans settled by mortgage brokers /12

Business booming in regions As the property market outside the capital cities heats up, regional brokers share their success stories /16

In the hot seat Award-winning experienced Smartline broker Ian Simpson has some advice for new brokers /30

Non-bank lender boosts broker team Meet the newest members of La Trobe Financial’s client partnership team /24

NEWS

IN THIS SECTION

Lenders Resimac enjoys stunning half-year profit results /04

Aggregators Finsure partnership opens door to Muslim clients /06

Market Housing values notch up largest monthly rise in 18 years /10

Industry bodies MFAA welcomes record broker market share /12

Technology SocietyOne joins Westpac’s digital banking platform /08

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

U.S. MORTGAGE LENDING HITS RECORD-BREAKING $4.3TRN originations in the United States totalled a record-breaking US$4.3trn in 2020, according to Black Knight’s latest Mortgage Monitor Report, released on 8 March. For the first time ever, loan originations surpassed US$4trn, with refinances reaching an all-time high of US$2.8trn and purchases skyrocketing to US$1.5trn – the largest annual volume since 2005. In the fourth quarter alone, mortgage lending broke records across the board, with all-time single-quarter highs for purchase lending (US$346bn), refi lending (US$869bn) and total lending (US$1.3trn). And, according to Black Knight’s rate lock data, the momentum continued for the first quarter of 2021 despite interest rates rising to a nine-month high. Q1 2021 refi lending volumes are also expected to hover near the previous quarter’s record high. Refi activity is expected to remain steady.

MORTGAGE

www.brokernews.com.au MARCH 2021 EDITORIAL

SALES & MARKETING

Editor Antony Field

Publisher/Sales Manager Simon Kerslake

News Editor Mike Wood

Global Head of Media Marketing Lisa Narroway

Production Editor Roslyn Meredith

ART & PRODUCTION

CORPORATE

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Production Manager Alicia Chin

Chief Operating Officer George Walmsley

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

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AMERICA GAINS 379,000 JOBS AS LEISURE, HOSPITALITY REBOUND US Bureau of Labor Statistics’ February employment report revealed a sharp pick-up in job growth as bars and restaurants reopened thanks to the roll-out of COVID-19 vaccines. The US economy added 379,000 jobs last month, mainly driven by a 355,000-plus gain in the leisure and hospitality sector. Fannie Mae chief economist Doug Duncan sees this as a strong signal of the service sector reopening. “As this sector is heavily dependent on people gathering in close proximity, we believe the efficient distribution of effective COVID-19 vaccines will be crucial to support the ongoing recovery,” he said. Unemployment fell to 6.2%, well below the 14.8% peak in April 2020. However, 10 million people remain unemployed, with 4.1 million among the long-term unemployed – up 125,000 month-over-month.

THE

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CANADA’S FAST-RISING HOUSING BUBBLE MAY ALERT REGULATORS housing market in Canada might soon see a heightened level of speculation that THE would increase the risk of more regulatory intervention, some economists warn.

With average home prices continuing to rise and borders reopening, it’s only a matter of time before wealthy domestic and foreign investors return. Canadian Real Estate Association data reveals the national annual average home price shot up by 22.8% at the beginning of this year, reaching a record C$621,525. Rising prices “often invite heightened speculative activity, which adds more fuel to already hot markets,” said Royal Bank of Canada economist Robert Hogue. “Be on guard for macroprudential measures,” said Bank of Nova Scotia economist Derek Holt. “Ottawa has been caught completely off-guard in the magnitude of the housing response to very low financing costs.”

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Home loan specialist with heart.

With LNS you get the best of both worlds: The support of a team and the freedom to build your own business. We celebrate you as an individual, while offering the benefits of a strong and vibrant community.

Helping people is not just a 9-5 job for Maria Finneran. While by day her passion is to help homebuyers find the finance solution to suit their needs, out of hours, one of her many activities is volunteering with St Vincent de Paul helping the homeless. It’s with this compassion and empathy that Maria helps customers get financial and into a new home, whatever their circumstances. Thank you, Maria.

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To find out more about becoming a Liberty Adviser, visit liberty.com.au/LNS.

Inspiring borrowers and footballers alike.

Whether it’s securing a loan or securing a win on the football field – as a broker and coach, Brett Foster knows the importance of having a strategy in place to achieve one’s goals. Waking before 5am to carry out his own fitness regime each day, Brett brings the same discipline and determination to his work - staying sharp to help more people get financial. We reckon that makes you best on ground, Brett.

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NEWS

LENDERS BOQ ACQUIRES ME BANK FOR $1.3BN Bank of Queensland has announced its acquisition of ME Bank for $1.325bn, to be funded by an underwritten capital-raising. It will include a $1bn entitlement offer and a $350m institutional placement.

BOQ managing director and CEO George Frazis described the deal as a “defining acquisition” for the bank.

“Critically, ME Bank delivers material scale, broadly doubles our retail bank, and provides geographic diversification.

It is an exciting day to see two strategically and culturally aligned businesses come together,” he said.

RESIMAC SEES JUMP IN PROFITS Resimac 1H21 results

Source: Resimac

Results summary

1H21

1H20

Change

Net interest income ($m)

122.1

84.3

up 45%

Statutory NPAT ($m)

50.5

27.2

up 86%

Normalised NPAT* ($m)

50.5

26.9

up 88%

2.1

2.4

down 9%

Home loan assets under management ($bn)

12.9

11.3

up 14%

Total assets under management ($bn)

15.1

14.2

up 7%

Earnings per share (cents)

12.38

6.69

up 85%

Return on equity (%) (normalised NPAT)

38.7

26.0

up 1,270 bps

Cost-to-income ratio** (normalised) (%)

31.1

42.1

down 1,100 bps

Interim dividend per share (cents)

2.4

1.2

up 100%

THE

WESTPAC CUTS FIXED RATE TO NEW LOW among the big four banks has taken a new turn with Westpac announcing a market-leading interest rate cut.

As the RBA’s cash rate continues to sit at 0.1%, the big four are in a home loan rate war. Westpac cut its rate to 1.79% for two-year fixed home loans and 1.88% for three-year fixed mortgages.

The rates will also be available at subsidiaries such as St George, Bank of Melbourne and BankSA.

Home loan settlements ($bn)

*Excluding one-off items **C:I ratio – total expenses (excluding loan impairment expense)/total revenue

COMPETITION

“We were one of very few non-banks that continued [during COVID] to put strong products and good credit into the market” Scott McWilliam CEO, Resimac

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RESIMAC REVELS IN RECORD GROWTH IN HALF-YEAR PROFIT A big boost in home loan assets under management helped the non-bank lender enjoy outstanding results for the second half of 2020 of Australia’s biggest non-bank lenders, Resimac, has announced record results for the last half-year.

Profits were $50.5m, up 88%, for the second half of 2020, representing a significant bounce back after COVID-19. The Resimac board declared an interim dividend of 2.4 cents per ordinary share, double the dividend in the first half of 2020.

The lender cited a 14% rise in home loan assets as a significant ONE

factor behind its success.

“Our reaction to the pandemic is something that we’re extremely proud of,” said CEO Scott McWilliam.

“We offered a payment deferral to all of our customers at the start of COVID, when there was obviously a lot of panic and uncertainty in the market. We are obviously pleased that the percentage of customers that require assistance going forward has significantly reduced.”

“We’ve not drawn on JobKeeper, and we broadly have the same employee count today, so we didn’t

look to cut costs within the business.

What we did do is restructure parts of the business to make sure that we had sufficient resources to manage areas where there was activity.”

It wasn’t all plain sailing, said McWilliam. “Obviously, managing a large portion of your book that is looking for financial assistance requires people, so during that period we were able to second the people into the areas where there was heightened activity and away from other areas where there might have been a reduction in activity.”

“We also didn’t reduce our lending to brokers in the market.

We were one of very few non-banks that continued to put strong products and good credit into the market, distributed through brokers, and that’s another thing that we are enormously proud of.”

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NEWS

A G G R E G AT O R S AFG ANNOUNCES RECORD HALF-YEAR PROFITS has announced record half-yearly profits, with net profit after tax up 36% to almost $25m at the end of December 2020.

The ongoing rebound of the housing market after COVID, aided by federal government policies, resulted in continuing growth within the mortgage broking sector and thus strong profits for aggregators such as AFG. David Bailey, CEO of AFG, cited the pandemic as a motivator for consumers choosing to refinance and using mortgage brokers to do so.

AFG

NEW STATE MANAGER JOINS MORTGAGE CHOICE has appointed a new state manager for NSW. Jason Mares started at the aggregator last month, replacing David Ewens. Mares will report to David Zammit, general manager of distribution and wealth at Mortgage Choice. Mares will be responsible for the recruitment and development of franchise teams and overall business growth in NSW. Mares is an experienced executive who has worked closely with executive management teams across a range of industries, including retail, mining, wholesale, manufacturing and professional services.

MORTGAGE CHOICE

Simon Bednar, general manager of aggregation, Finsure

FINSURE PARTNERSHIP OPENS UP MUSLIM MARKET TO BROKERS A new partnership between an aggregator and an Islamic finance specialist will enable brokers to provide products for Muslim clients aggregator Finsure has paired up with Hejaz Financial Services to offer mortgage broking services to Muslim homebuyers for the first time. Finsure’s network of 1,900 brokers will now be able to help Muslims buy property in Australia in a religiously compliant way, thanks to Hejaz’s expertise in the Islamic banking space.

Islamic banking is unique, with many aspects of the Australian financial landscape not halal, or permissible, under Islamic law.

MAJOR

Commercial Loans

Borrowing on interest is not allowed in Islam, so conventional mortgages are not an option.

Hejaz Financial Services has been active in Australia for over a decade and assists Muslims in making various aspects of Australian finance, such as superannuation and investment, compliant with their religious beliefs.

“The key difference is that Islamic finance is structured in accordance with sharia laws, and Muslims are restricted by their faith from paying and receiving interest,”

said Hejaz Financial Services COO Muzzammil Dhedhy.

He said an Islamic ‘loan’ is better described as a financing facility, formed when funds sourced from compliant sources are provided to a client using an Islamic financing facility contract.

Finsure general manager of aggregation Simon Bednar said: “Hejaz Financial Services can offer home finance that is compliant with Islamic law by providing a source of capital and an agreement structure for the buyer. Unlike a conventional home loan, the homebuyer and Hejaz Financial Services agree to be co-owners in the property.”

The buyer makes monthly payments to Hejaz for full use of the home and, over time, purchases all of Hejaz’s ownership stake and becomes the sole owner.

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Simon Bednar General manager of aggregation, Finsure

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“Hejaz Financial Services can offer home finance that is compliant with Islamic law by providing a source of capital and an agreement structure for the buyer”

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NEWS

TECHNOLOGY WINGATE BUYS STAKE IN FIFO CAPITAL has acquired a significant portion of SME financial services provider Fifo Capital Australia. It is hoped the investment in the fintech will allow Fifo to increase its offering to SMEs. Wingate has products in real estate, corporate and consumer debt. “We see that there’s a large underserviced market for providing debt to businesses in that small to medium space,” said Wingate corporate investments managing director Kevin Wunsh.

WINGATE GROUP

BUTN PARTNERS UP WITH LEND.COM.AU platform Lend.com.au has teamed up with payments gateway provider Butn to bolster its lending capabilities. It means brokers can use Lend’s loan-matching platform to access the fintech’s supply chain financing (ButnPay), advanced invoice payments (ButnX) and commission advances (ButnNow), which integrate with Salesforce and other cloud-based platforms. Butn uses sophisticated technology to make accurate, instantaneous decisions about an applicant’s creditworthiness and provide same-day funding.

LENDING

“With the SocietyOne app, customers will be able to access their credit score for free, apply for a SocietyOne loan, and manage their existing loans” Mark Jones CEO, SocietyOne

Mark Jones, CEO, SocietyOne

FINTECH SOCIETYONE JOINS WESTPAC’S DIGITAL PLATFORM Westpac has partnered with SocietyOne to provide digital banking services to its customers, following a tie-up with Afterpay in 2021 lender SocietyOne has become the second partner to join Westpac’s digital banking-as-a-service platform, 10X. The tie-up follows a similar partnership Westpac sealed with Afterpay last October and allows SocietyOne to “provide a broader range of market-leading financial products and services, including the launch of a transaction account to help its 75,000 customers improve their finances”.

“With the launch of the SocietyOne app, customers will be able to access their credit score for FINTECH

free, apply for a SocietyOne loan, and manage their existing loans, as well as deposit, withdraw and transfer money from and within the new transaction account powered by Westpac’s digital platform,” said SocietyOne CEO Mark Jones.

Westpac is expected to roll out its digital banking services to SocietyOne customers in the second half of the year.

Macgregor Duncan, general manager of corporate and business development at Westpac, said the partnership provided a great

opportunity to extend the bank’s reach to the all-digital generation.

“It is an exciting long-term growth opportunity for Westpac, allowing the bank to reach new customers through a low-cost operating and distribution model, grow valuable deposit balances and, over time, expand its offer to lending and data services,” said Duncan.

“We recognise that Australians are looking for new and different ways to do their banking, and by partnering with established brands and leveraging our combined data resources we can provide better, more personal experiences for customers.”

SocietyOne is considered to be among the leaders in Australia’s digital lending space, having originated more than $1bn in loans.

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NEWS

MARKET INVESTORS COMING BACK INTO THE MARKET are set to ride the ongoing property boom, according to the latest ABS data.

ABS Lending Indicators show a 9.4% rise in loan commitments made by investors in January.

That was part of a wider trend, with a rise of 22.4% recorded over the past year. Growth has been strong in NSW, where loan values rose by 6.7%, the highest result since June 2018.

“Investors are seeing strong fundamentals, which ticks a lot of their boxes,” said Grant Foley, director and buying agent at Grant Foley Property.

INVESTORS

CITY PRICES RECOVER, REGIONAL BOOM CONTINUES markets continue to grow as many Australians look to buy a home away from the city.

REA Insights’ latest report shows that homes in regional areas outperformed those in capital cities in terms of price gains over the past year. Regional markets recorded price growth of 9.6% – double the capital cities’ rate of 4.8%.

However, it appears capital cities are starting to recover. Dwelling prices in capital cities increased by 0.4% in February, slightly higher than the 0.3% gain in regional markets. REA economic research director Cameron Kusher said capital city markets are leading the charge so far this year.

REGIONAL

Tim Lawless, research director, CoreLogic

INTEREST RATES, ECONOMY FUEL RAPID RISE IN HOUSING VALUES With the latest housing values growing at the fastest pace seen since 2003, the property market boom is not likely to end any time soon home values continued to grow in February, leading to the largest month-on-month improvement in more than 17 years, according to Core Logic. The 2.1% increase in February was the highest monthly rise in the CoreLogic national home value index since August 2003.

Growth was being driven predominantly in Sydney and Melbourne, with 2.5% and 2.1% value rises, but everywhere in Australia saw improvement, with quarterly growth of 5.5% in Darwin, 4.8% in Hobart and 4.2% in Perth.

“Normally when we judge sustainability in housing markets, AUSTRALIAN

it’s on how prices are rising in line with incomes,” said CoreLogic research director Tim Lawless.

“And clearly on that measure, this is unsustainable, as we aren’t expecting wages to be rising any time soon.”

“Household incomes have been relatively strong through 2020 due to a lot of fiscal support, but that’s obviously winding down now as well, so, long story short, we aren’t expecting that such a rapid rate of appreciation can be sustained for much longer, but we are seeing housing values in the two most unaffordable markets, Sydney and Melbourne, lower

than they were pre-COVID.” “I think we’ll see values rising at least until the end of this year and well into the next year, driven by extremely low rates and improving economic conditions.”

Lawless said low interest rates, higher consumer sentiment and low housing stock levels were driving higher house prices.

“Clearly, very low mortgage rates are one of the main factors, with those being as low as they are having very much stoked consumer demand, but on top of that we have that the economy is improving much more rapidly than what was forecast.

“That has bled through to improved consumer sentiment … on top of that, you’ve got this rise in demand against a backdrop of extremely low supply levels. We’ve seen listing numbers tracking 26% lower than a year ago, but buyer demand is about 35% higher.”

“We’ll see [home] values rising at least until the end of this year and well into the next year, driven by low rates and improving economic conditions” Tim Lawless Research director, CoreLogic

RECORD MONTHLY GROWTH IN HOME VALUES Australian home value index as at 28 February 2021

10

Source: Corelogic

Month

Quarter

Annual

Total return

Median value

Sydney

2.5%

3.6%

2.8%

5.3%

$895,933

Melbourne

2.1%

3.5%

-1.3%

1.8%

$717,767

Brisbane

1.5%

3.5%

5.0%

9.3%

$535,618

Adelaide

0.8%

2.7%

7.3%

11.8%

$478,587

Perth

1.5%

4.2%

4.6%

9.3%

$491,795

Hobart

2.5%

4.8%

8.7%

14.0%

$535,994

Darwin

0.7%

5.5%

13.8%

19.4%

$438,645

Canberra

1.9%

3.7%

9.7%

14.6%

$706,454

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NEWS

INDUSTRY BODIES NEW CONSTRUCTION LOANS HIT NEW HEIGHTS dwelling construction loans surpassed records in early 2021, according to the Housing Industry Association. There was an influx of new construction loans that saw December levels peak as consumers looked to have their contracts sorted before the HomeBuilder grant deadline. Over the whole quarter through to January 2021, lending increased by 45.8% on the previous quarter and doubled what it was as at the end of 2019.

Certain regional areas did even better: lending more than tripled in WA and was up by almost 150% in Queensland, the NT and Tasmania.

“What we’ve seen is that since HomeBuilder was announced in June last year, confidence in the housing market improved greatly,” said HIA economist Angela Lillicrap.

NEW

Raj Ladher, home loan specialist, Your Mortgage Broker

BANKS LAUNCH ONLINE TOOL TO HELP BORROWERS have developed a new online tool available at ausbanking.org.au/assistance to guide customers who are in financial hardship and improve transparency.

Hosted by the Australian Banking Association, it was developed in collaboration with Financial Counselling Australia, the Rural Financial Counselling Service, the Australian Small Business and Family Enterprise Ombudsman, AFCA and ASIC. “This is about ensuring that no customer is left in the dark as we emerge from the pandemic … customers can expect a thoughtful and compassionate approach, with clear and transparent explanations, regardless of who they bank with,” said ABA CEO Anna Bligh. New data shows that 91% of deferred loans have resumed repayments, with just 5% of deferred business loans and 13% of deferred housing loans yet to resume repayments.

BANKS

INDUSTRY CELEBRATES RECORD MARKET SHARE FOR MORTGAGE BROKERS The broking industry is on a high as the latest quarterly figures show mortgage brokers achieved a record market share of home loans in December to CoreLogic research group Comparator, reporting on behalf of the MFAA, 59.4% of all residential home loans in Australia in the October to December 2020 quarter were settled by mortgage brokers.

This represents 4.1% growth compared to the December 2019 quarter and is just 0.7% shy of the all-time one-month market share, set in September 2019. It also follows a record market share result for the July to September 2020 quarter of 60.1%.

The total for the December 2020 quarter is the highest ever recorded in terms of dollar value, topping out at $64.1bn of new ACCORDING

home loans settled across the leading aggregators. That is 23.44% up on December 2019.

The results come at a time when the property market is booming, with home loans, auctions and house prices breaking records for growth.

Brokers’ position in the market is also strengthened by strong public support – a survey earlier this year revealed that 94% of customers trusted mortgage brokers when refinancing.

“This outstanding market share result, in the traditionally less-buoyant December quarter, reflects the continuing hard work of brokers in supporting their customers to achieve their

aspirations and assisting many to refinance and take advantage of record-low interest rates, making mortgage repayments more manageable,” said MFAA CEO Mike Felton.

Brokers were quick to celebrate the achievement.

“Mortgage brokers have two advantages in their arsenal,” said Raj Ladher, home loan specialist broker at Your Mortgage Broker. “Firstly, they have a range of lenders whose policy and interest rates can differ considerably. Secondly, they have the know-how along with the personalised customer service.

“In the main, mortgage brokers are small businesses where a client isn’t just another number. So many of the clients that come through to Your Mortgage have already been to their bank and been declined, and we have managed to secure them a home loan, which is very rewarding all round.”

BROKER MARKET SHARE KEEPS GROWING Source: Comparator (CoreLogic) and MFAA

Mortgage broker market share

“[Brokers’] outstanding market share result reflects the continuing hard work of brokers in supporting their customers to achieve their aspirations” Mike Felton CEO, MFAA

12

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Value of new home loan settlements

55.3%

59.4%

$64.10bn

October–December 2019

October–December 2020

December 2020 quarter

(0.7% lower in December 2020 quarter than the all-time record of 60.1% set in September 2019)

($12.17bn or 23.44% higher than the $51.92bn settled in December 2019)

FE AT URES

COVER STORY

INDUSTRY PROFESSIONALS INSPIRING THE NEXT GENERATION Some of the commercial finance industry’s most influential female brokers gathered at CAFBA’s International Women’s Day event to celebrate their achievements and talk about what more needs to be done to increase participation

at the Kirribilli Club in the shadow of the Sydney Harbour Bridge on a bright Monday morning, it was easy to see how far we have all come.

Not just because this was the first in-person event that many present had attended in almost a year, but also because we were celebrating International Women’s Day 2021 in the company of a roomful of more than 50 female brokers at the Commercial & Asset Finance Brokers Association annual International Women’s Day (IWD) breakfast meeting.

The mortgage broking industry is now far more diverse than it was when many of those present began their careers, a fact that wasn’t lost on several of the women present.

“When I started, there weren’t many of us. I couldn’t count them on one hand,” said Tina Clark, a broker at Laurentide Financial Services.

“I don’t actually have role models per se; I just like individual people – people that are doing the same thing that I am – and [hearing] how they got to where they are.”

“There’s not many female brokers that I can aspire to, because we’re few and far between. You watch everyone else’s business. I like [talking to] individuals and many SITTING

14

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different people, because I can take a little bit of everyone and make my own business.”

Clark has been in the business for 20 years and has been something of a trailblazer. In fact, one of the other women that Australian Broker spoke to was quick to highlight her as a role model.

where Tina worked, and there was literally just her.”

The IWD event was hosted by CAFBA and sponsored by lease finance provider FlexiCommercial.

Keynote speaker Karla Poulton, head of account management and settlements at FlexiCommercial, emphasised the increasing number

“We talk about advancing women’s rights, but sometimes there’s not an acknowledgement in organisations that you need to provide equal opportunities” Karla Poulton, head of account management and settlements, FlexiCommercial “A few of the women here today inspire me,” said Caroline Watkinson, an adviser at Danforth Finance.

“I used to work with Tina Clark, and she’s driven me to do loads of courses and develop my skills as a broker over the years. She’d be one of my role models. I’ve been in the industry for 12 years now, and I started in the reception

of women coming into the industry year-on-year, and the new role models who would be there for the next generation.

“I’ve been in the industry for 20 years, and there wasn’t really anyone I guess who I could look up to,” she said. “I forged my own way and took the opportunities that were presented to me. That’s how I’ve lived my working career, I think.”

“Probably in the last five to 10 years there’s been an increase in the number of women in more senior positions. It still depends what part of the industry you’re in as to whether you would have women to look up to, but there’s definitely more than when I started.”

Poulton believes the industry still has plenty of ground to cover.

“I think the industry needs to show that there are careers and that employers can be flexible. Certainly, that is why I’ve spent so long at FlexiCommercial, because we’re fairly ahead of our time in terms of working arrangements,” she said.

“I think we need to appear interesting, too: I work in asset finance, and I think that is the part of the industry that has the least female representation. It’s improved significantly, but there’s still such a way to go.”

The COVID-19 pandemic was brought up frequently by attendees, with several women pointing out that it had not all been negative.

Indeed, the increased flexibility of working from home was seen as a step forward for helping women in the industry.

“I think the pandemic has helped many people, and not just women,” Poulton said. “I know a lot of dads

From left: Tina Clark, finance broker, Laurentide Financial Services; Karla Poulton, head of account management and settlements, FlexiCommercial; Rachel Hind, founder and CEO, Best Capital; and Caroline Watkinson, adviser, Danforth Finance

have been much more involved in their family life because of the work-from-home [situation]. And that helps women, because if you’ve got men being more involved, that helps free women up to participate.

“I was at a dinner on Friday night, and one of my colleagues was saying that he worked at another organisation that had the same parental leave for both men and women, so he did six months and his wife did six months. That was great for her, because she really wanted to go back to work, and it didn’t take her out of the industry for too long.

She could go back and play in the game again.

“I guess that’s not acknowledged: we talk about advancing women’s rights, but sometimes there’s not an acknowledgement in organisations that you need to provide equal opportunities, whatever they are, because that can help. If the men are involved, that can free up women to participate and do what they need to do.”

Rachel Hind, founder and CEO of Best Capital, agreed.

“I think pre-COVID, women came to broking because it gave you that ability to be flexible and to work as little or much as you want,” she said.

“You’re your own boss. The world has changed so much now, and even talking to people today from Macquarie Bank, they’re 100% working from home, so even the big corporates are getting on board.”

Clark also pointed out the benefits of the ‘new normal’.

“The pandemic has helped with flexibility; I’m not getting stuck in

traffic and driving any more,” she said. “I can actually go out and work. I’ve got my phone with me, and that’s my tool of trade. When we finally figured out that the world wasn’t crashing around our ears, it actually turned out to be a bit better. Once we’d gotten over the shock of everything, we realised that we could do this.”

That said, everyone was happy to finally be back at in-person events and happy to have events that cater for female brokers specifically.

“These events are great, because women are better networkers than men,” said Clark. “The breakfast is nice because you can chat, and I think events of all types have to be diverse and not pigeonhole people. I’ve been to the football plenty of times on a corporate card, and most of the time what really annoys me is that most of the corporate events in finance are sports-based.

“More corporate events need to be toned to women, so not just sporting events all the time. I’m a football tragic, but … surely there have to be other events we can do in Sydney that aren’t [sports] and that include everybody.”

Hind said it was vital that women and men should share the space, and that women in the industry should put themselves out there.

“There’s a lot going on in the female space,” she said. “Even today, we’ve got male champions here as well who get into the events and empower each other. It’s very inclusive. I like events that are unisex, because everyone brings a

WOMEN IN CAFBA Source: CAFBA Annual Review, 2019–2020

Female membership of CAFBA has risen from 8% to 27% in the last 3 years

A core strategy of CAFBA is to increase female representation in commercial finance

2020 was the fifth year CAFBA has partnered with Women & Leadership Australia and the Australian School of Applied Management to provide a Women in Leadership Scholarship program

54 women have completed the Women in Leadership courses, which include the Advanced Leadership (12 months), Executive Ready (7 months) and Leading Edge (5 months) programs

In 2018, CAFBA started the Women’s Networking Forum, which features a series of networking forums to support and encourage female brokers

In 2019/20, CAFBA set up Commercial Lending Young Professionals, a national networking group for commercial finance brokers aged under 40

different dynamic, and it’s important to have that support. It’s come so far – a lot of amazing women before me have paved the way and made it easier for women like me.

“It’s all about having that selfbelief that you can do anything.

Even if you’re entering a maledominated industry, you have to have that belief that you can do a good job and you deserve your right

to be at the table as much as anyone else. As a woman, you have to have that self-belief that you can compete as an equal. This’s year’s theme is Choose to Challenge, and you have to be loud and choose to challenge the status quo. That’s not as a broker but just as a female. If you’re not feeling happy about the level of gender inclusion, then you have to speak out about it.” AB www.brokernews.com.au

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MARKET VIE W

BOOM TIME FOR REGIONAL BROKERS A year on from COVID-19 hitting Australia’s shores, regional mortgage brokers have never been busier as the demand for residential property outside the capital cities shows no signs of slowing down

ability to work remotely, cheaper property prices, the attractions of a coastal or country lifestyle, lower housing densities – all these factors are contributing to a property boom in Australia’s regions.

CoreLogic’s latest regional market update for the 12 months to January 2021, which looks at capital growth in Australia’s 25 largest non-capital city markets, shows that regional housing values rose by 7.9%, more than four times the pace of capital city markets at 1.7%.

Australian Broker caught up with four award-winning regional brokers in Mandurah, WA; Darwin in the NT; and Lismore and Wollongong in NSW to find out how brokers in the regions operate and the reasons behind their success. We also spoke to NAB’s head of commercial broker to find out how the bank is supporting regional brokers.

THE

Steve Milligan, Launch Finance, Mandurah, WA Steve Milligan has won a number of broking awards, including MFAA WA Regional Broker of the Year in 2018 and 2019 and the overall Regional Broker of the Year at the MFAA National Excellence Awards 2019.

He is the director and finance manager of boutique brokerage Launch Finance, based in Mandurah, a coastal city about 80km south of Perth.

Milligan started his career at Bankwest, where he spent 13 years 16

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in lending and management roles before working in car sales finance and insurance for 10 years.

He says when the GFC hit he thought it was time for a change.

“Probably the main focus for me was to go into a role that provided me with some flexibility with time and work balance.”

A mutual friend introduced Milligan to one of his now business partners, and he became a broker at Westate Finance in 2009. Milligan jokes that the work-life balance didn’t quite work out.

Steve Milligan, director and finance manager, Launch Finance

only eight brokers, five of which are directors.”

Milligan says the directors all run their own individual businesses under Launch Finance, which operates as a sub-aggregator, so they can share the costs of

“In our last calendar year, we were up over 60% in business written compared to the previous year” Steve Milligan, director and finance manager, Launch Finance “My brother used to ask me to go fishing up north with him every year, and having four weeks’ designated holidays in the private sector, I’d have to say no, kids and things like that … needless to say after about 13 years I have never been fishing with my brother.”

In 2016, Milligan and four Westate colleagues started Launch Finance. Four of them are based in Perth, while Milligan is in Mandurah.

“We took control of our own destiny. We’re a boutique group –

marketing and a general manager.

He says the main employer in Mandurah is Alcoa, but the city is also heavily reliant on the mining industry, with a lot of fly-in, fly-out (FIFO) workers.

The WA government is trying to shift population growth south instead of north, Milligan says.

“They’ve got a place in the south called Mandurah where the train comes to; we’ve got the freeway down here, we’ve got land, we’ve got water, schools, hospitals. They’re trying to get a few more professionals

because a lot of the professionals in town just travel from Perth and have a part-time office here.

They want professionals who will permanently reside down here. It’s a wonderful place.”

Milligan says COVID-19 has also led to population growth, as mine workers were told they had to live in WA if they wanted to hang on to their jobs.

“A lot of people from the eastern seaboard came over, and because rentals were so hard to get they started buying property.

“I can sell my house in Perth for $650,000 – I can buy the same house down here closer to the beach for $450,000, which halves my mortgage. Suddenly I’ve only got a $200,000 mortgage, I can buy a brand-new car, have a little boat in the driveway. We’re right next to the beach; I can jump on the train and be in Perth in the same amount of time as it takes me to drive in every morning.”

While the market has continually ticked over for the last 10 years, Milligan says the past 12 months “have gone absolutely frantic, stupid”. He estimates that 50% of his business is being generated

and property valuations.

“People in the city don’t even have to worry about postcodes. Down here we do. I know we’ve got a lender out there that does no mortgage insurance up to 85%, but not in Mandurah. I’ve got other lenders who’ve told me, I’ve got this and this, but I’m sorry, 6210 postcode, we count it as regional, we won’t do that.”

Milligan says when lenders reduced LVR ratios for mining towns, Mandurah was affected because of Alcoa. Depending on the postcode, some lenders won’t lend to particular areas, or clients might need a greater deposit, but all brokers can do is tell their clients.

“We’re fighting valuations as well.

I tend to find valuers down here are very cautious on valuations. We’re getting huge fluctuations between two different valuers.”

The majority of Launch Finance’s customers are generated through

can gain work experience, to sponsoring the local AFL club.

Milligan has also taken part in the Variety 4WD bash for sick children and the MACA ride for cancer research.

When asked about his 2019 MFAA Regional Broker Award, Milligan says it’s nice to be recognised by his industry peers.

“I’ve got a stand with some of the awards I’ve got in the office, and I often get comments from clients that I need a bigger stand.

“It’s very good for me to be able to acknowledge to the staff that we’re being identified, our numbers are up there and what we’re doing is the right thing.”

Katrina Rowlands, Mortgage Success, Wollongong, NSW Katrina Rowlands is a multiaward-winning mortgage broker with 23 years’ experience in the

“For everyone, there’s six degrees of separation in a regional area. Ensure every transaction you manage is to the highest level for your clients” Katrina Rowlands, managing director, Mortgage Success

by federal and state government first home builder incentives.

“One of the interesting things is, probably about a third of my clients are first home buyers,” Milligan says.

Unlike in Perth or other big cities where first home buyers move to outer suburbs because of price, it’s different in Mandurah.

“A lot of our kids are actually staying in Mandurah. They’ll either stay here and work FIFO, work out of Alcoa, go and work in Perth, but they actually don’t mind staying.”

First home buyers in WA who were planning to build a house were able to apply for state and federal grants totalling $55,000 until the end of December 2021, which spurred a lot of activity and brought people’s plans forward.

“In July, there was a three-week period there when myself and my offsider, Paul, had over 100 new appointments,” says Milligan.

“I’ve basically worked seven days a week for 12 months, barring a couple of breaks in between.

It’s reached the point now where we’re putting on some staff at the moment; it’s not sustainable.

“In our last calendar year, we were up over 60% in business written

Katrina Rowlands, managing director, Mortgage Success

compared to the previous year.

“In Sydney you might have brokers that average $500,000 or $600,000 a deal. We average $300,000 a deal.

When you are writing the numbers that we write, you can understand why we are so busy.”

Milligan says there are two main challenges to being a regional broker: postcode restrictions

word of mouth. Community connection is critical for regional brokers, Milligan says.

“Communities grow by putting back into communities. This community has been very good to us, so there’s certain things we do to try and put back into the community.”

This varies from employing a young woman as a casual so she

industry. Her accolades include Salesperson/Broker of the Year at the inaugural Australian Mortgage Awards in 2002 and top broker ranking in the inaugural MPA Top 100 brokers list in 2006. She is also an AFG Hall of Famer, having won 11 AFG awards, and won an Illawarra Business Woman of the Year award in 2009.

RISING DWELLING VALUES ACROSS REGIONAL AUSTRALIA Source: CoreLogic

Change in dwelling values February 2021

Regional NSW

2.2%

Regional Vic Regional Qld Regional SA Regional WA

2.6% 1.9%

1.0%

2.0%

Combined regions

2.1%

Australia

2.1%

8.3.0% 9.2%

5.0%

11.5%

6.5% 4.3%

Combined capitals

11.0%

6.2%

2.7% 1.0%

Past 12 months

5.5%

2.0%

Regional Tas Regional NT

Past 3 months

-1.5%

6.5% 4.2%

3.6%

13.8% 0.6%

2.6% 9.4%

5.4% 4.0%

4.0%

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Rowlands says she started broking when she was pregnant with her beautiful twin daughters.

“We already had two children to care for, and I had worked so hard to achieve what I had to date in my career, and I really didn’t see myself being a successful stay-at-home mum,” she says.

“Prior to this I was in a financial services company in a district management role, and due to me going off to have twins, I missed out on opportunities within the company as they assumed I couldn’t possibly keep up.”

Embarking on a career in broking was one of the best decisions she’s made, Rowland says. “I didn’t return to the old job, as in the few months I spent working as a broker I fell in love with the industry.”

Rowlands initially worked with a small boutique aggregator, becoming their highest-volume broker year-on-year.

“It just became a natural progression to change to a larger industry player, so I joined AFG and set up our own company and brand of Mortgage Success Pty Ltd in 2004,” she says.

Rowlands and her small team moved into an office in Wollongong CBD and three years ago purchased a larger office in Wollongong Central shopping centre.

mortgages, personal loans and deposit bonds.

Although Mortgage Success is based in Wollongong, about 80km south of Sydney, Rowlands says the area the brokerage covers is “huge”.

“We have no real boundaries, and with a client base spanning 23 years plus, many have migrated to other areas but stay loyal to me as their broker. I have clients in Dubai and New York, for example – even one on a ship in the Caribbean and no fixed resident of any country.”

The South Coast differs from Sydney because it provides a wonderful diversity of clients, property types and policies.

“You need to know your grey areas very thoroughly – you need to know your acceptable exceptions, and you need to know your smart credit managers that can decision well and with confidence in their credit critical thinking.

“You need to ask more questions and never assume you know an area. It keeps it very interesting and creates constant challenges for learning, and I love that.”

Rowlands says the Illawarra and South Coast real estate market is booming as Sydneysiders discover what it has to offer.

“You just need to see our traffic on weekends now to know that Sydneysiders have fallen in love

“You have the opportunity to build a well-known brand within the community, which is certainly harder to achieve in a capital city” George Smith-Roberts, mortgage broker, Smik Home Loans “In my main office I am the accredited broker with six staff supporting my business flows, including client maintenance matters. Externally to my main office I have four separately accredited brokers that write their own business and write under their own business trading names but are part of the Mortgage Success group. They are contractors to Mortgage Success.

“I am just about to bring on a fifth new writer and also am in the process of gaining accreditations for some of my team to commence writing on their own but stay under the Mortgage Success brand.”

The brokerage covers all financial products offered under AFG, including commercial, lending, 18

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with it. Prices have gone berserk, especially in the past six months,” she says.

“Stock is low and auctions are now watched with incredulous anticipation as to what someone will actually pay. Sydney money buying Illawarra property meant the prices would go up, but I don’t know that anyone expected the ferocity of the new buyers. With limited stock, FOMO is alive and well in the real estate market.”

The pandemic’s effect on Mortgage Success’s clients has been minimal. Some took advantage of deferred payments, but all are now back on track with repayments.

Time at home meant people could reconsider their goals.

George Smith-Roberts, mortgage broker, Smik Home Loans

“They included renovations and improving money management with consolidation of debt or simply looking at better deals on their largest debt – their home loan.

COVID-19 was a chance to breathe and get out of the rat race and think.”

Rowland says regional brokers are supported as much as city brokers.

“I believe in this day and age of technology there are avenues for support for everyone and anyone who seeks it, especially during COVID where physical meetings were non-existent; location was irrelevant in many ways.”

Being a regional broker allowed Rowlands to “have the life I love, and live where I really wanted to raise my family”, as well understand what clients wanted from the area.

She says the secret to success for regional brokers is the same for all brokers – you are a professional, so act like it intentionally.

“Remember, for everyone there’s six degrees of separation, especially in a regional area. You need to ensure every transaction you manage is to the highest level of best outcome for your clients, as you will be walking down the same street as they do very often. You need to always be able to

look everyone in the eyes.”

Being part of the community is also incredibly important.

“There is a saying – ‘no one cares how much you know, but everyone knows how much you care’. It has to be a demonstrated involvement in thought, word and deed, and usually cash.”

Rowlands describes herself as the “inaugural queen of awards in the mortgage industry”.

“I had a beautiful bunch of flowers delivered to me from a wonderful national manager of one of the lenders after one of my inaugural wins that held a note that said: ‘Congratulations! This is special.

There is only ever one inaugural winner. Enjoy the moment’. It was a beautiful comment I dwell on, and still I celebrate every single success point. “[Awards] are important to my career. They reinforce behaviours for me as they are tangible evidence that I am getting it right, and they create self-pressure to keep doing so.’

George Smith-Roberts, Smik Home Loans, Lismore, NSW George Smith-Roberts won the 2019 Regional Broker of the Year award at

Apart from the distances needed to travel to access some services, Smith-Roberts says Smik Home Loans is not disadvantaged at all by being regional.

“It used to be the case that regional customers were more likely to use a branch lender over a broker, but this has shifted greatly in the last few years, and the broker market share is increasing rapidly.

“Whilst I believe it is still below what would be seen in a capital city, it is certainly much higher than what it used to be.”

Smith-Roberts also believes there is little difference between regional and city brokers.

“I think a good broker is a good broker, no matter where they operate. Technology advances mean that regional brokers receive the same training and support as our city counterparts, so to be honest I can’t really see much difference between a regional broker and a major city broker, other than the types of properties that we are financing.”

There are also good support mechanisms in place for regional brokers, Smith-Roberts says.

“The support network is available to regional brokers as much as it is to city brokers, as long as

Michelle Lewis, mortgage broker, Easy Loans

the Australian Mortgage Awards.

He says he started his career in 2014 as a mortgage broker in Lismore.

“I used to own a newsagency, and at the time I was looking to get another business going in preparation for when the newsagency finally sold,” Smith-Roberts says.

“I had previously used the services of a mortgage broker, and after a little research I noticed that there were limited brokerages locally. Essentially, I just stumbled into starting my career as a mortgage broker.”

Smith-Roberts says his brokerage has undergone a number of changes over the years.

“After originally starting out as a Choice Home Loans franchise, we moved to realestate.com.au Home Loans when it was first launched.

After two years we found out that it was to be rebranded as Smartline, so I took the opportunity to leave the franchise and have now started Smik Home Loans. We have been operating under this since January 2021. “ There are three brokers working under the Smik name, including Smith-Roberts, and the brokerage

focuses on residential mortgages.

Lismore is the regional business hub for the Northern Rivers area of NSW and is about 100km south of the Queensland border.

“Being a regional city, we see a great mix of different lending scenarios regularly, ranging from standard residential dwellings through to large-acreage properties, which means we are always working on something different,” Smith-Roberts says.

The local real estate market has been “crazy busy”, he adds, with demand outweighing supply by a long way.

“Sale prices are higher than ever seen. I don’t know what it will look like in 12 months, but for now it is definitely a sellers’ market in Lismore.”

The pandemic has had little effect on the area.

“We have been fortunate enough that we have been relatively unscathed by COVID. Apart from the initial federal restrictions, we have been allowed to operate pretty much business as usual, so the overall effect in our local area has been minimal for the majority of the local businesses.”

Regional Broker of the Year award in 2019 was a special moment.

“It felt like all the effort I had put into learning a new career and gambling on starting a business from scratch was being rewarded. It has been great for advertising over the last couple of years and sits proudly in the office for all our clients to see.”

He has some sage advice for regional brokers.

“We don’t have an endless supply of clients in a regional town, so if you get a bad reputation it sticks and can be very hard to repair. So my biggest tip for a new broker in a regional area is, if you say you will do something, make sure you do it, and don’t promise something unless you are 100% sure you can deliver.”

Michelle Lewis, Easy Loans, Darwin, NT Michelle Lewis won the Regional Finance Broker Award at the MFAA’s State Excellence Awards SA/NT in 2019 and has also won several awards with aggregator PLAN Australia. She has been in the residential home loan lending industry for 25 years, having previously worked at Westpac’s mortgage centre in Adelaide and also at TIO. Lewis moved from Adelaide

“To succeed you need to work hard, provide a service to your clients and referrers, and stay true to who you are” Michelle Lewis, mortgage broker, Easy Loans you take the time to access it.

This is probably one of the few good things to come out of COVID, in that the amount of online training available has definitely increased over the last year.

“For me, the advantage of being a regional broker is the ability to build a really solid business, as you have the opportunity to build a well-known brand within the community, which is certainly harder to achieve in a capital city.”

It is also very important to actively be part of the community you serve, says Smith-Roberts.

“This can be as simple as sponsoring a local sporting team or advertising in the local free paper, but making sure you give something back financially is what keeps a regional community going.”

Smith-Roberts says winning the Australian Mortgage Awards

to Darwin 15 years ago.

“I have worked in residential lending for most of my career,” she says. “I always liked the feeling that I was helping someone achieve their goal of homeownership, but was never really interested in face-to-face with customers as I didn’t want to sell a particular bank’s proposition or product. I also wasn’t interested in having to meet targets that might not be in the best interest of my customer.”

Lewis started working at Easy Loans in 2012 and has been a broker since 2013.

“When the offer to work at Easy Loans was made, I saw it as an opportunity to take the skills I had learnt over the years and become more involved in the process of helping people,” she says.

“Being a broker allows me to connect with my customer and help www.brokernews.com.au

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them achieve their dream.”

Easy Loans has been operating for more than 20 years in Darwin.

It currently has a team of eight brokers and provides a range of services, including residential and commercial lending as well as personal loans.

“I think it’s really important that we provide a holistic service to customers,” says Lewis. “Most customers will need more than just a home loan, and it’s important that we can help them with their individual journey.”

With a population of about 150,000, Lewis says Darwin’s main source of employment is the defence industry and government.

“This provides a lot of opportunity in the market for first home buyers, especially during the current climate with COVID. Due to the remoteness and defence presence, we tend to have a highly transient population.”

Lewis says the real estate market in Darwin has been quite active in the last six to eight months.

“Due to the incentives offered by both the Northern Territory and federal governments, land and construction has been extremely popular. The established market has also taken a turn for the better, with indications that property prices might be improving.”

In terms of COVID-19, Darwin has been “extremely lucky”, Lewis says. Despite initial concerns, there haven’t been any real day-to-day effects.

“Many small businesses are currently experiencing an upturn in business and confidence.

Some pockets are still struggling; however, many are also trying to find ways to diversify.”

Regional brokers face different challenges to their city counterparts, including bank policies being targeted towards the major cities and not the unique features of regional Australia.

Lewis says regional brokers also face time delays due to remote locations and the more manual aspects of the loan process, such as having to post original documents.

“There also tends to be more collaboration between different brokers, banks and stakeholders – conveyancer, valuers, etc. – rather than the competition that may be experienced in major cities.”

However, Lewis says the pandemic has actually allowed governing bodies and banks to become more accessible to regional brokers, with much of the contact 20

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and training now available via online meetings or resources, avoiding the need for long travel.

COVID-19 has boosted business, but she says she’s not sure how much is coming from people moving to the regions.

“I think we are seeing many people who have not been able to spend money as they have previously, for example on travel.

This means that they have been able to save and realise that they might actually be in a position where they can purchase a home. The pandemic has created lifestyle changes that previously were not considered.”

Lewis says much of Easy Loans’ business comes through word-of-mouth referrals.

“It’s important that we are also part of the community as it helps us build relationships with the people we want to partner with as they achieve their dreams.”

Receiving the MFAA award for SA/NT Regional Finance Broker was “quite humbling” and “an acknowledgement of the service I try to provide each and every customer”, Lewis says.

“I don’t think there is anything too profound about success. I think to succeed you need to be willing to work hard, provide a service to your clients and referrers, and stay true to who you are.”

Chris Thomas, executive for commercial broker, NAB Chris Thomas says NAB has a long-standing history of backing brokers and their business customers in regional Australia.

“We are a strong supporter of

Chris Thomas, executive for commercial broker, NAB

experiencing the best trading conditions in several years,” he says.

“Commodity prices are trading at high levels. Our farmers have had good rain and have generated a once-in-a-generation crop this year.”

Another key trend in the commercial space is the net

“We remain committed to working in partnership with brokers to quickly develop the best banking solution for their customers” Chris Thomas, executive for commercial broker, NAB agribusiness and have a broad distribution footprint across regional Australia,” he says.

Thomas says brokers can leverage the strength of Australia’s largest business bank, which gives them access to NAB specialists across a broad range of industries, including health, aged care, agriculture, manufacturing, transport and logistics and professional services.

“Many regional businesses are

migration effect from metro to regional areas, leading to strong demand from business customers, especially in the logistics, infrastructure and commercial property sectors.

“To support this growing demand, which has only heightened during COVID-19, we’ve invested heavily to ensure more BDMs and more business bankers are on the ground,” Thomas says.

“Our national team of dedicated BDMs continue to be available and active, both in person and via digital tools where it makes sense.

As a dedicated team, they are very focused on service and on bringing the best of NAB to our brokers across the country.

“Our 600-plus broker-aligned bankers are really embedded in the local community and work in partnership with brokers to back business customers across the country via our 160 business banking centres. Their focus is on customer satisfaction and honouring the partnership we have with our brokers who referred them.”

Thomas says 2021 is shaping up to be an active year of recovery and growth.

“In such a dynamic environment, we understand brokers are looking for predictability and reliability from their lender partner.

“Our deep understanding of the business landscape places us in a strong position to understand this.

We remain committed to working in partnership with brokers to quickly develop the best banking solution for their customers so that they can get on with business.” AB

THE CHOICE IS YOURS WITH

DECEMBER 2020 ISSUE 17.24

YEAR IN REVIEW COVID-19, a recession, bushfires and floods – 2020 threw up some monumental challenges.

We asked industry leaders to look back on the year and at how 2021 is shaping up /14 ALSO IN THIS ISSUE… Big deal How Ray Ethell helped a financial adviser consolidate his debt /20 Real estate spotlight Darwin’s house prices are rising faster than in other capital cities /26 Tech partnership to speed up loans Finsure Group has partnered with fintech illion Open Data Solutions to provide a new integrated service for brokers /22

01_AB1724_Cover mockup_v4_SUBBED.indd 1

Brokers take on bankers in cricket The inaugural Bankers vs Brokers Twenty20 cricket match in Perth raised funds for the McGrath Foundation /23

Restoring brokers’ confidence Wealth Today’s Keith Cullen suggests brokers hard-hit by regulation changes should diversify the services they offer /25

In the hot seat From restaurants to finance: GM Capital Solutions director Andrew Soo /30

9/12/2020 11:01:04 AM

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BIG DEAL MFAA Young Professionals and Community Panel member Bianca Patterson runs Calculated Lending, a boutique finance and mortgage brokerage in Perth. She helped a client secure a loan to build a home to accommodate her five children, four of whom have special needs THE FACTS

Client 47-year-old single mother of five

Loan size Goal and term To transfer Stage 1 refinance: ownership of $136,500; ex-partner’s Stage 2 loan increase share of land for construction: and refinance $383,500, existing loan to build 30-year term a home

Location High Wycombe, WA

Lender CBA

Aggregator Connective

order deadline. Once she was working full-time we were then able to apply to increase the loan for the construction of her home.

I researched the lenders’ policies to see which would consider the client’s Family Tax A and B income (to mitigate the living cost of her children) and also her carer’s entitlements on top of her PAYG income, as this was an income she would likely receive for the full loan term.

At the time, Commonwealth Bank was one of two lenders that would consider enough of the client’s income for her to be able to take on the property and then eventually build. CBA was able to look at the client’s situation with a common-sense approach and so was able to lend her the amount she required on the terms she needed.

THE TAKEAWAYS

was in a position to borrow more.

Looking at the client’s income, I could see why the lenders and brokers had told her that borrowing was not possible in this case. While she was

THE SCENARIO

Calculated Lending was referred to this client in August 2018. She was getting divorced and had stamped court orders to transfer the ownership of a block of land and its existing loan to her sole name within 45 days. If she could not do this, the property had to be sold to clear the existing debt.

The client had engaged a builder who had designed a special-purpose home that would accommodate her family for the long term, because it was very likely that at least one of her children would live with her forever as she would be his ongoing carer.

The client had spoken to a number of lenders and brokers and had been told that it was not possible for her to borrow what she needed as she had sole custody of her five children, and her income was made up of part-time work as a teacher, as well as a carer’s benefit from Centrelink because four of her children had special needs.

We are referred many clients in difficult situations … There is always a way forward if you are willing to invest the time to find it and work with the client to achieve it

THE SOLUTION

The client was unable to find a long-term rental property to suit her family’s unique needs, so I knew I had to find a solution to help her avoid selling the property in the depressed WA market. That would mean paying selling agent fees and then stamp duty on a new property in the future when she 22

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I formed Calculated Lending to be a client-first, solutions-based business.

We are referred many clients in difficult situations, as clients and referrers who have worked with me in the past know that I believe there is a

Bianca Patterson Director and mortgage and finance specialist, Calculated Lending

only working part-time, she would not be able to borrow the full amount that she needed.

The client let me know that she was willing to do anything to build her family a home. After checking lender policy and running some calculations, I let her know that building her family a home might only be possible as a staged approach – if she was able to return to work full-time once her youngest was in full-time schooling, as well as reduce the total cost of the build by almost 20%.

The client was committed to the process. She applied to her school for a full-time role for the following year and worked with the builder to redesign the property to reduce the total cost.

The immediate need was to have the property and loan transferred into the client’s name to meet the court

solution to every problem.

Helping a client often involves having hard conversations, requiring a readjustment of their lifestyle and/or expectations, and then a lot of discussions with our lender partners and their credit teams. There is always a way forward if you are willing to invest the time to find it and work with the client to achieve it, no matter how long that takes.

It took two applications and over two years for me to help this client get to the construction stage. Being able to help clients like this is exactly why I became a broker and why I started the business.

I think it’s important to never be too busy or label a situation as too hard, because our knowledge, experience and networks have the ability to make a genuine difference to our client’s lives. AB

¤ĚēĚǛŠĿŠij ČūŞŞĚƑČĿîŕ ǛŠîŠČĚ Thinktank has a proven track record of providing straight forward commercial property ǛŠîŠČĚ ƙūŕƭƥĿūŠƙȡ DžĿƥĺ Šū ƙƭƑƎƑĿƙĚƙ• Support your self-employed and investor clients with: • ‘Set and forget’ loan terms from 6 months to 30 years • ¡ƭƑČĺîƙĚȡ ƑĚǛŠîŠČĚ îŠē ĚƐƭĿƥNj release ($100K – $3M) • ¬q¬G ǛŠîŠČĚ ūƎƥĿūŠƙ • National Relationship Manager support • The deepest commercial property and SMSF lending experience in the market

Into people.

Not just transactions.

1300 781 043 deal@thinktank.net.au

FE AT URES

BUSINESS INSIGHT

LENDER BOOSTS TEAM TO HELP BROKERS Dean Allsop, senior manager client partnerships, La Trobe Financial

As Australia’s economy continues to bounce back, non-bank lender La Trobe Financial is adding new faces to its highly experienced team to help brokers capitalise on its range of products has recently expanded its senior manager client partnership team to 45 members.

According to Michelle Bannister, the lender’s head of distribution, these new appointments will further LA TROBE FINANCIAL

in the financial services industry, as well as a degree in business management from James Cook University, Townsville.

In 2011, Hinchy moved to Brisbane, where he worked at Latitude (formerly GE) for five

Allsop’s positive attitude and willingness to innovate has helped him build a track record of success, both overseas and at home in Melbourne bolster the firm’s commitment to brokers by continuing to deliver Australia’s broadest product suite in the specialist market via a team of highly experienced, credit-skilled client partnership managers.

“Allow us to introduce you to the newest members of the La Trobe Financial team,” says Bannister.

Reece Hinchy Senior manager client partnerships Reece Hinchy joined La Trobe Financial in February 2021 as a senior manager client partnerships in the real estate credit division, based in Queensland. He has more than 10 years’ experience 24

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years, spending time in personal loan sales and compliance. For the first three years he worked in sales, starting as a frontline sales consultant before being promoted to a branch manager position.

Hinchy was then appointed as the national compliance leader responsible for overseeing the newly formed Personal Loan Compliance Model. From late 2016 to January 2021, he worked as a business development manager at Bluestone Mortgages, a non-bank residential mortgage lender.

Hinchy prides himself on his work ethic and utilising his industry experience to help grow the businesses of his broker partners.

This has brought him recognition

Mark Lai, senior manager client partnerships, La Trobe Financial

within the industry as winner of Best Lender BDM Non-Bank at both the 2019 Better Business Awards and the 2019 MFAA Excellence Awards.

Mark Lai Senior manager client partnerships Mark Lai joined La Trobe Financial in January 2021 as a senior manager

client partnerships in the real estate credit division and is currently based in Melbourne.

Lai has over eight years of experience in lending, operations and credit within the major bank and non-bank sectors, having worked at Commonwealth Bank of Australia and Resimac, and managed a multi-award-winning brokerage in Sydney as its head of

Sairlao’s effective listening skills, product knowledge, technical knowledge and solution selling lead her to develop enduring relationships with all those she encounters

Sornkin Sairlao, senior manager client partnerships, La Trobe Financial

compared to that of other lenders.

In his current role as a senior manager client partnerships, Lai will be responsible for servicing and managing existing relationships with mortgage brokers, and adding value to his clients in Victoria.

He is able to provide professional management advice relating to workflow process, business strategies and transformation, and implementing technology and automation process within the business.

Lai holds a Diploma of Finance and Mortgage Broking, a Certificate IV in Financial Services and a Bachelor of Commerce degree.

Dean Allsop Senior manager client partnerships

Reece Hinchy, senior manager client partnerships, La Trobe Financial

operations. Lai also has experience as a financial adviser.

He is reliable and thinks outside the box. He takes a hands-on approach, working alongside his brokers to achieve the best results for their clients. Lai understands the pain points mortgage brokers have to experience as the lending landscape constantly changes. He previously managed a loan book

of over $1bn and a team of more than 20 senior finance brokers and mortgage supports in Sydney.

Lai says being a senior BDM at La Trobe Financial gives him much more confidence and less stress when discussing scenarios with his brokers, because its Melbourne-based credit assessors are all forward-thinking, and the approval process is much simpler

Dean Allsop joined La Trobe Financial as a senior manager client partnerships in January 2021.

He spent the previous seven years in the real estate sales sector and has extensive experience across the UK, US and Melbourne. Allsop has proven to be a dynamic client relationships manager who offers significant expertise in providing solutions and ensuring the success of the products offered by La Trobe Financial.

Driven by a deep understanding of people and the real estate sector, and with a genuine desire to help his valued clients, Allsop’s positive attitude and willingness to innovate has helped him build a track record of success, both overseas and at home in Melbourne. As a keen traveller and fitness enthusiast, Allsop’s natural energy and eye for planning and detail underpin his engaging nature and ability to build mutually prosperous relationships.

Allsop has a proven ability to create and cultivate high performance within a team, with both onshore and offshore resources, and focuses on the development

of long-lasting client relationships and loyalty. His capabilities and experience have resulted in high rates of client referrals and continued support from past clients.

After working internationally and alongside some of Australia’s most renowned real estate agents, Allsop is beyond excited to join the team at La Trobe Financial and offer what is truly a first-class service to his clients.

Sornkin Sairlao Senior manager client partnerships Sornkin Sairlao comes to La Trobe Financial with more than 20 years of industry experience as a BDM at major and second-tier banks, as well as four years’ experience as a financial broker. As a result, she can quickly identify what the broker is looking for and provide the solution utilising La Trobe Financial’s broad range of product solutions.

Sairlao is an accomplished business development manager in the financial services sector.

The combination of her effective listening skills, product knowledge, technical knowledge and solution selling leads her to develop enduring relationships with all those she encounters.

Sairlao has a reputation for developing relationships based on trust, credibility, follow-through and a genuine desire to deliver on customer satisfaction. This is proven by her brokers nominating her as a finalist for the Australian Mortgage Awards in 2014 and 2015, and the Better Business Awards in 2016.

In 2016, Sairlao became a successful broker and is now looking to combine this experience with her BDM knowledge to provide solutions to her brokers and their customers that will have a positive impact on them and their businesses. AB www.brokernews.com.au

25

DATA

NORTHERN TERRITORY

VIC SPOTLIGHT

Darwin’s housing market is growing fast as buyers are drawn to a ‘safe haven’ Darwin posted the highest gain in median prices of all capital cities in February, hitting 13.5%, according to the latest figures from CoreLogic.

Despite this growth, it remains the most affordable capital city market, with its median price only reaching $438,000.

Terry Roth, director at Herron Todd White, said the Northern Territory had been a “safe haven” for property buyers.

“This has resulted in a population influx to the point where vacancy rates have decreased.

However, once southern states again become a safe and stable place to live, we wait and see if long-term employment prospects are strong enough to support their life up in the Top End,” he said.

The first home buyer segment has been an active driver of demand in the city and state.

Roth said the intervention by the state and federal governments to spur activity in the housing market has changed market sentiment, particularly among first-time buyers.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$513,500

3.2%

3.2%

$450

4.8%

Metro (U)

$305,000

5.1%

-0.2%

$370

6.4%

Country (H)

$427,500

2.6%

3.0%

$490

6.1%

Country (U)

$304,000

0.0%

-4.3%

$370

6.4%

TASMANIA

The appeal of the Tasmania market sustains strong demand in Hobart The record-low interest rates and “safety” of Tasmania will be the major drivers of housing demand in Hobart this year, according to Stephan Ning Liu, property valuer at Herron Todd White. He said properties in the sub-$600,000 price bracket would likely be the sweet spot for potential buyers.

“Multiple offers are still being fielded by agents, with offers more often than not exceeding vendors’ expectations,” he said.

However, Liu noted that with the increased sale prices, rental yields were going down slightly.

Still, demand remains robust for reasonably priced rental properties throughout the region.

“Gone are the days, for now, where a 7% return was the norm. Tasmania has the lowest average salaries in Australia, and rental affordability is also a concern,” he said.

The outer suburbs of Hobart are also likely to post gains this year as buyers try to find an alternative to inner- and near-city markets where prices may already be out of their reach.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

SLOW GOES THE CITY’S RECOVERY Despite signs of an uplift in the market, housing activity in Melbourne remains low

HOUSING MARKET FUNDAMENTALS — MELBOURNE

$565,000

2.9%

9.3%

$450

4.4%

Metro (U)

$420,000

1.2%

5.3%

$395

5.0%

Country (H)

$375,000

2.9%

9.4%

$340

5.1%

Country (U)

$294,000

0.5%

4.3%

$280

5.2%

New listings:

Houses

Units

www.brokernews.com.au

38,211

$829,509

-1.8%

0.9%

$514.50

Median value

Annual change

Total return

Weekly rent

$582,833

-0.4%

3.2%

$373

Median value

Annual change

Total return

Weekly rent

SUBURB TO WATCH: MORWELL $195,000

Median price (units) $175,000

26

Source: SQM Research, CoreLogic

Property stats for the month to 19 February 2021

Median price (houses) Metro (H)

and increased supply could hamper price growth. While this could make investors more cautious, it could also present an opportunity for owner-occupiers to seek out bargains.

“We expect that the rental market [for CBD apartments] will start to recover gradually.”

The median dwelling price in Melbourne increased by 2.1% to $717,767 in February, according to CoreLogic, making it the secondstrongest market after Sydney that month.

However, on an annual basis, the city’s median dwelling price was 1.3% lower.

King said recent factors could still indicate a positive outlook for Melbourne. For instance, the stamp duty discounts announced in the 2020/21 budget would improve optimism.

“New and off-the plan properties will receive a 50% waiver on stamp duty, with established property receiving 25% up to 1 July 2021, with discounts available to both investors and owner-occupiers on property valued up to $1m.”

for homes in the Melbourne CBD is likely to remain sluggish, according to the latest report from Herron Todd White.

Perron King, director at Herron Todd White, said travel restrictions and the closure of international borders would continue to limit the arrival of overseas students, tourists and new migrants either from overseas or interstate.

“With lower or no rental income and the inability to secure new tenants, investors are likely to sell their properties, which will add more stock to the market, which already has high supply,” he said.

Approximately 4,300 transactions took place across the city in November last year. At the same time, 8,054 new listings were added to the market. This translates to a sales-to-new-listings ratio of 0.5.

In spite of the high supply, there was still a 0.7% rise in dwelling values during this period, though King said the likelihood of lower sales DEMAND

12-month growth

3-year growth

Average annual growth

Gross rental yield

8%

17%

2.8%

7%

12-month growth

Average annual growth

Weekly advertised rent

Gross rental yield

4%

4.5%

$200

6%

AUSTRALIAN CAPITAL TERRITORY

Canberra is one of the best-performing city markets for median-value growth Dwellings in Canberra remained on a winning streak in February, with median values growing at one of the fastest rates among all capital cities, according to CoreLogic. Canberra registered a 1.9% monthon-month and 9.7% annual gain in median values to $706,454, making it the third-most-expensive housing market after Sydney and Melbourne.

Herron Todd White property valuer Sandra Howells said Canberra’s residential property market in 2020 had surprised many market watchers. “The year definitely ended strongly, as evidenced by the continuing high auction clearance rates,” she said.

Sellers who decided not to sell last year might try to test the waters as the vaccine roll-out starts.

This could potentially boost supply.

“Adding to this, buyers will continue to be incentivised by record-low interest rates, which are expected to remain in place in the medium term,” Howells said. “If the above scenario plays out, we will see a return to the linear stability Canberra is known for.”

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$766,500

2.7%

7.4%

$585

4.1%

Metro (U)

$477,051

1.4%

4.7%

$480

5.5%

SOUTH AUSTRALIA

Adelaide consistently delivers price growth in suburbs across the city

HIGHEST-YIELD SUBURBS IN VICTORIA Suburb

House

Gross rental yield

Median price

Quarterly growth

12-month growth

Average annual growth

INDENTED HEAD

H

14%

$565,000

-7%

-8%

4.6%

POINT LONSDALE

H

11%

$872,500

4%

5%

2.5%

MURTOA

H

9%

$130,000

-2%

24%

5.3%

ECHUCA

U

8%

$282,500

4%

11%

3.5%

MORTLAKE

H

8%

$220,000

28%

36%

4.5%

ARARAT

U

8%

$190,750

-8%

-8%

11.4%

The SA capital has been consistent in terms of sales activity and continues to deliver steady price growth, according to data from Hotspotting.

“It recorded growth in its house prices in 11 of the 12 months of 2020 and overall had a 6% increase in the city’s median price,” the report said.

Over the past year, two thirds of Adelaide’s suburbs registered gains, with affordable locations being the market leaders.

Suburbs in the City of Playford in northern Adelaide posted robust gains, with Munno Para reporting the highest growth of 16% to $260,000.

Elizabeth Downs followed with a median price increase of 11% to $195,000. Dwellings in Andrew Farms also posted an increase in median value of 8% to $280,000.

Some suburbs in the upper end of the market also clocked price gains, with Norwood striking the strongest growth of 27% to $1.02m. Prices in Toorak Gardens and St. Peters reported respective gains of 15% to $1.5m and 13% to $1.37m.

Area

PORTLAND

U

7%

$196,500

-2%

3%

1.1%

MOE

U

7%

$139,000

0%

-10%

1.1%

BAIRNSDALE ORBOST

H H

6% 6%

$290,000 $219,000

2% 4%

5% 15%

2.5% 3.1%

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$507,051

2.1%

3.2%

$390

4.1%

Metro (U)

$370,000

1.4%

4.4%

$335

4.6%

Country (H)

$283,000

0.0%

0.7%

$270

5.0%

Country (U)

$205,000

-2.0%

-3.9%

$215

5.4%

www.brokernews.com.au

27

DATA

WESTERN AUSTRALIA

Pandemic leads to a big boost in interstate homebuyers turning to WA The WA housing market experienced a 164% increase in interstate enquiries by the end of last year, according to Momentum Wealth. The property consultancy’s buyer’s agency team leader, Emma Everett, said the sudden spike in interest in the state’s housing market was due to investors and buyers looking to relocate to Perth following the COVID-19 pandemic.

“For investors who have benefited from recent upswings in their own market, there’s certainly a great opportunity to leverage the state’s affordability and enter the Perth market to take advantage of its respective growth cycle, and I think many investors are now recognising this could be a time-limited opportunity,” she said.

One of the major contributors to renewed investor interest in Perth is its tightening rental market conditions, which result in a stronger outlook for yields. In fact, estimates from Momentum Wealth show that houses in Perth with robust underlying land values have achieved yields ranging from 4.8% to 5.5%.

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$515,000

2.1%

1.0%

$380

4.1%

Metro (U)

$380,000

0.0%

-2.6%

$350

4.9%

Country (H)

$380,000

4.1%

8.8%

$360

5.2%

Country (U)

$258,000

9.0%

2.8%

$310

7.4%

Quarterly

12-month

Weekly

Gross

growth

growth

median

rental

rent

yield

Cleared

58

Uncleared

13

Clearance rate

81.7%

PERTH Total auctions

25

Cleared

9

Uncleared

2

Clearance rate

81.8%

Units

$777,000 $477,500

$330,000

$530,500

$471,000

$610,000

$430,000

$100,000

$500,000

$200,000

$335,000

$300,000

$490,000

$400,000

$400,000

$500,000

$525,750

$700,000 $600,000

$552,500

$800,000

$0 Sydney Melbourne Brisbane

Adelaide

Perth

Hobart

Darwin

Canberra

CAPITAL CITY HOME VALUE CHANGES Capital city

Weekly change

Monthly change

Year-to-date change

12-month change

Sydney

0.7%

2.9%

3.6%

3.1%

Melbourne

0.4%

2.3%

2.9%

-1.2%

Brisbane

0.4%

1.5%

2.8%

5.2%

Adelaide

0.2%

0.8%

1.8%

7.4%

0.3%

1.5%

3.4%

5.1%

0.5%

2.3%

3.2%

2.6%

$1,010,000

1.2%

6.9%

$540

2.9%

Metro (U)

$725,000

0.0%

2.9%

$500

3.6%

Perth

Country (H)

$530,000

2.0%

6.3%

$400

4.1%

Combined 5 capitals

Country (U)

$452,500

2.3%

5.5%

$360

4.3%

www.brokernews.com.au

101

Houses

Metro (H)

28

Total auctions

$900,000

$711,250

Richmond-Tweed became the top spot for growth in the regional housing markets when it recorded a 12.6% rise in median values in January. Houses in this region had a median value of $696,394.

During the period, Richmond-Tweed also registered a 14.2% increase in the number of houses sold. Houses sold faster in the suburb, with days on market down to 46 days from 64 at the same time last year.

In terms of units, the Southern Highlands and Shoalhaven was the best-performing region. Units recorded a median price of $484,642, representing a 17.9% annual increase. Unit sales rose by 34.6%, while days on market shrank from 87 days to 60 in the same period last year.

“Generally, prices are cheaper than their capital city counterparts, housing densities are typically lower, which is likely to be appealing amidst a global pandemic, and many workers have a newfound appreciation and ability to work remotely, which is supporting additional demand,” said Tim Lawless, executive director for research at CoreLogic.

Median price

ADELAIDE

MEDIAN HOUSE AND UNIT PRICES

NSW’s regional markets are among the best-performing in the country

Area

Clearance rates for capital city home auctions improved in the first week of March. There were 1,587 homes taken to auction with 84.5% selling out of the 1,311 results collected so far. This compares to a preliminary clearance rate of 81.9% for the previous week when volumes were higher (2,473). That rate was revised down to 79.3% on final figures.

The lower volumes for the week can be attributed to four of the states and territories having a public holiday on Monday, including Melbourne, where volumes were down substantially. In Melbourne, there were just 477 homes auctioned, far below the 1,299 auctioned the week before. Of the results collected so far, 80.9% were sold. The final clearance rate for the previous week was 76.4%, and one year ago 66.1% of auctions cleared. In Sydney, 812 homes went to auction, with a preliminary clearance rate of 86.7%. In the previous week 844 auctions were held, with an 85.3% final clearance rate, while one year ago 830 auctions took place, with 75.2% cleared. All small auction markets had clearance rates of more than 80%.

$650,000

NEW SOUTH WALES

WEEK ENDING 7 MARCH 2021

$871,500

Area

CAPITAL CITY AUCTION CLEARANCE RATES

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

BRISBANE CANBERRA Total auctions

64

Cleared

54

Uncleared

Total auctions

107

Cleared

65

Uncleared

14

Clearance rate

82.3%

5

Clearance rate

91.5%

SYDNEY Total auctions

812

Cleared

601

Uncleared

92

Clearance rate

86.7%

TASMANIA

MELBOURNE Total auctions

477

Total auctions

1

Cleared

321

Cleared

1

Uncleared

76

Uncleared

0

Clearance rate

Clearance rate

80.9%

n.a.

Note: A minimum sample size of 10 results is required to report a clearance rate.

Area

QUEENSLAND

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

New, modern set of body corporate regulations will protect unit owners Queensland Attorney-General and Minister for Justice Shannon Fentima said the state’s new body corporate regulations will lay out key changes that strengthen transparency, reduce body corporate costs and enhance protection for unit owners. “The new regulations will make it easier for Queensland unit owners with the introduction of electronic communication, voting and video conferencing, which will be a benefit for all members,” she said. “Transparency will be strengthened, with body corporate managers now required to disclose any commissions received before a body corporate enters any contracts, including for insurance.”

Fentima said the state government was also working on establishing a Community Titles Legislation Working Group.“This group of key stakeholder representatives will provide advice to the government on a range of issues impacting the community titles sector so we can continue to improve regulations,” she said.

Metro (H)

$567,000

0.8%

2.2%

$410

3.9%

Metro (U)

$407,000

0.3%

0.3%

$385

5.1%

Country (H)

$465,000

0.5%

1.1%

$400

4.6%

Country (U)

$397,000

1.3%

3.2%

$350

4.7%

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

NICK YOUNG: TRAIL BOOK SALE EXPERT Sell your trail book in part, or in full.

Release working capital. Keep your clients.

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

29

PEOPLE

Aggregator Smartline

IN THE HOT SEAT Smartline broker Ian Simpson is based in Mudgee, NSW, but looks after many clients in Sydney. The 2020 MPA Top 100 Broker and Smartline Franchise of the Year winner started his career at Mortgage Force in 2003

How long have you been a broker, and how did you get into the industry?

A I have been a broker for 18 years. I grew up on a farm in Coonabarabran, country NSW. After boarding school and university, I spent 10 years in investment banking as a bond trader.

I had always wanted to be self-employed, and the bond market was shrinking, so I felt the opportunity was right to get into mortgage broking, having recently used a broker for a property purchase. A close friend was already established as a leader in the industry, and she was a great encouragement and mentor in the early days.

Q

What do you enjoy most about being a broker?

A I really enjoy talking to clients and finding a solution for their needs. It still gives me a buzz. None of us enjoy the paperwork process or dealing with a lender’s substandard service levels or credit policies. Therefore, I do spend an inordinate amount of time working out how I can make the whole process more efficient. I have great staff spread far and wide: one in Mudgee, two in the Philippines and one in France.

Q

Your loan growth has been considerable over the last financial year. What is the secret to your success?

To be honest, there is no secret other than working hard and A just keep turning up. After 18 years and four full property cycles, you realise that after the good times it’s going to get quiet.

Then after the bad times, it will get busy again. We just have to acknowledge and manage these cycles. Use the quiet times to fine-tune your processes, and to relax.

Ian Simpson, mortgage broker, Smartline

Q

What advice would you offer to brokers at the start of their careers?

Early on it is important to absorb as much knowledge as A possible from others in the industry. Speak to other brokers.

Ask them what tools they use. Gain their insights and tips.

Use your spare time to really think about your processes and how you can make the journey for clients as enjoyable as possible.

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Embrace technology and always search for efficiencies, because even though you may feel like you have a lot of time now, this will soon change.

If there is one thing you could change about the industry, what would it be?

It still astounds me that in 2021 we have all this amazing A technological capability at our fingertips, yet lenders can still take six weeks to assess a loan. The combination of outdated legislation and outdated lender processes means that the customer approval process is ridiculous with most lenders. The legislation needs changing, and a fresh approach needs to be adopted by management at those lenders that cannot assess a loan within a few days. AB

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