JULY 2021 ISSUE 18.13
Expanding a client base with SMSFs Thinktank and Liberty encourage brokers to diversify into SMSF loans /18
Executives help fight homelessness Leaders from across the finance industry join the Vinnies CEO Sleepout /20
Turnaround times disadvantage brokers Slow turnarounds are holding brokers back, says MyState Bank’s Huw Bough /22
ALSO IN THIS ISSUE…
MICHELLE BANNISTER La Trobe Financial’s head of distribution shares her career journey, hoping to inspire more women to join the world of broking and finance /14
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Industry appointments The latest personnel moves in the mortgage and lending space /16 Big deal Mortgage Choice broker helps single mum with construction loan /24 Caught on camera Launch of the Women’s Commercial Finance Forum /25
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NEWS
IN THIS SECTION
Lenders CBA predicts Reserve Bank will lift cash rate next year /04
Aggregators Aussie celebrates a year of rapid growth in network /06
Market Queensland has fastest-growing property market in the east /10
Industry bodies FBAA criticises banks over turnaround times /12
Technology NextGen.Net appoints new chief executive /08
www.brokernews.com.au JULY 2021 EDITORIAL
SALES & MARKETING
Editor Antony Field
Publisher/Sales Manager Simon Kerslake
News Editor Mike Wood
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GLOBAL WATCH
ART & PRODUCTION
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
Designer Cess Rodriguez
MORTGAGE BANKERS BACK BIDEN’S CHOICE OF NEW FHFA HEAD after the US Supreme Court gave President Joe Biden authority to remove the head of the Federal Housing Finance Agency at will, the White House fired Mark Calabria and appointed Sandra Thompson as acting director – a move the Mortgage Bankers Association (MBA) supports. “MBA congratulates Sandra Thompson on her appointment as the acting director of the Federal Housing Finance Agency. Her experience, expertise and deep knowledge of housing finance will serve her well in this role,” said MBA CEO Bob Broeksmit. “We fully agree with the acting director’s stated goals of operating the regulated entities in a safe and sound manner while supporting their missions to increase the availability of affordable housing and extend access to credit.” Thompson was FHFA Division of Housing Mission and Goals deputy director. SHORTLY
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U.S. INTEREST RATES CROSS 3% FOR FIRST TIME IN 10 WEEKS increase in US mortgage rates has ended a 10-week streak of sub-3% rates, Freddie Mac reported on 24 June. For the first time since April, the benchmark 30-year fixed rate mortgage rose above 3%, up nine basis points to 3.02%. Freddie Mac chief economist Sam Khater expects this upward trend to continue. “As the economy progresses and inflation remains elevated, we expect that rates will continue to gradually rise in the second half of the year,” he said. The 15-year fixed rate mortgage also increased weekover-week, from 2.24% to 2.34%. The five-year Treasury-indexed hybrid adjustable rate mortgage rose one basis point to 2.53%. “For those homeowners who have not yet refinanced – and there remain many borrowers who could benefit from doing so – now is the time.” AN
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CANADA BANKS WITH MOST SATISFIED CUSTOMERS REVEALED new study has revealed which Canadian banks offer the highest levels of customer satisfaction and highlighted the country’s ongoing financial literacy issues. Royal Bank of Canada was the clear winner of customer satisfaction with retail banking advice, garnering a score of 603. Bank of Montreal came in second with 583, versus the industry average of 572. The report, which polled more than 2,000 retail bank customers nationwide in March, also showed that only 42% of Canadians passed a basic financial literacy test, while just 39% were at least financially healthy. This has pushed expert resources such as industry professionals and financial institutions to the forefront of customer education. The report notes that 74% of retail bank clients who have received advice from their respective banks have acted on the information. J.D. POWER’S
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Kim, pilates lover
Punnaka, globetrotter
Lynette, master chocolatier
Farzin, movie buff
Jenny, Halloween fanatic
Lorraine, gym enthusiast
Juan, avid freediver
A network that celebrates you
“
Passionate adviser and property renovator.
LNS offers you the best of both worlds: The freedom to build your own business and the support of an experienced team. You’ll be celebrated as an individual, while enjoying all the benefits of a strong community.
Whether he’s renovating a home or securing a loan, Scott has a natural talent for problem solving. He brings the same passion and measured approach to his renovation projects as he does to helping people get financial. Nice work, Scott!
...PS, and when I’m not helping you build your business, I’m enjoying a post-cycling coffee with friends.
Scott, renovation master
- Brendan O’Donnell Managing Director, Liberty Network Services
We’re more than just an aggregator, because you’re more than just a mortgage broker. To find out more about becoming a Liberty Adviser, visit liberty.com.au/LNS.
Broker, mother and ultimate supporter. Linda thrives on helping people realise their dreams. Often working on the go while supporting her children’s soccer and modelling passions, she embraces new technology and doesn’t skip a beat when helping customers reach their financial goals. Linda – you’re a multi-tasking marvel!
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NEWS
LENDERS NOW MOULA FINANCE JOINS PANEL SCORES AT $200M AGGREGATOR LANDMARK FAST DEAL has announced a landmark securitisation: $200m worth of personal loans. NAB was the lead manager of the deal on behalf of Now, which mainly involved car and personal loans. Now’s deal is one of the first of its kind in Australia. “Mortgages have dominated the securitisation market globally and in Australia, but we are increasingly seeing other collateral types coming onto the market,” said Now treasurer James Cunningham. NOW FINANCE
TEACHERS MUTUAL PLANS NEW BANK FOR WORKERS will create a new digital bank with essential workers at the core of its proposition. Hiver will offer the capabilities of a digital bank and the socially conscious policies of a customer-owned bank model. “We saw an opportunity for our essential workers across the education, emergency services and health sectors in Australia to provide a different offering,” said Hiver chief digital bank officer Carolyn Murphy.
Gareth Aird, head of Australian economics, CBA
TEACHERS MUTUAL BANK
“We have pencilled in an increase of 15 basis points, which would take the cash rate to 0.25%” Gareth Aird Head of Australian economics, CBA
COMMONWEALTH BANK PREDICTS CASH RATE RISE IN 2022 While the RBA is not anticipating lifting the cash rate until 2024, CBA is forecasting that interest rates will actually rise more than a year ahead of schedule has publicly warned that interest rates may rise earlier than the Reserve Bank of Australia’s target of 2024. Gareth Aird, head of Australian economics at the CBA, wrote a note explaining that, according to CBA’s economic forecast, the cash rate is likely to move in late 2022, over a year ahead of what the RBA is predicting. “Our central scenario has the RBA delivering the first hike in the cash rate in November 2022,” said Aird. “We have pencilled in an increase of 15 basis points, which COMMONWEALTH BANK
would take the cash rate to 0.25%.” “We expect that to be followed by an increase of 25 basis points in December 2022. We have three further 25-basis-point hikes in Q1 23, Q2 23 and Q3 23.” CBA has already hiked its long-term rates in line with an anticipated rise in the cost of money due to a new term funding period and a rise in base rates by the government. It also moved its Home Loan Assessment Rate, the criteria by which CBA judges prospective borrowers, indicating a tightening up ahead of a rate rise.
“It is an uncertain time, and lenders are scrambling to anticipate when the RBA stance will shift,” said YourMortgage home loan specialist Jay Ahluwalia. “If we compare our economy with what is happening in the US, we’re doing very well. The US Fed has looked at their situation and raised their rates, so the argument is that the RBA will follow the lead. However, there are RBA mandates that are yet to be met, especially wage growth. “On a separate point, the December data on lending is showing [the] number of people with a debt-to-income ratio greater than six has risen by 89%. This will be a concern for the regulators, and the banks are anticipating that the rates may rise earlier than indicated to curb this high increase in the level of debt a property owner is carrying.”
Greg O’Neill President and CEO, La Trobe Financial
4
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NEWS
A G G R E G AT O R S TOP BROKER WILL WORK TO BOOST AFG NETWORK broker Ruan Burger has been contracted by AFG to help the aggregator make the most of its partnership with brokers. Burger, a former director of Time Home Loans in Queensland and an MFAA Credit Adviser of the Year finalist, will work to smooth the relationship with brokers, helping them maximise their partnership with AFG and accelerate growth. “It was best to have a broker in those conversations when they’re teaching their people how to get the best value from their broker network,” Burger said. EXPERIENCED
REA GROUP TO BUY MAJOR STAKE IN SIMPOLOGY is greatly expanding its offering to brokers by acquiring a major stake in Simpology, a technology company that offers solutions in the application and e-lodgement space. REA, which was recently acquired by aggregator Mortgage Choice, will buy a 34% stake in Simpology and use it to increase its turnaround times by allowing brokers to process more paperwork online, as well as giving them more access to different lenders via the 30 lenders that are integrated with Simpology’s system. REA GROUP
“Aussie has outperformed even the most optimistic forecasts for growth. Across the nation, Aussie opened 22 new stores since 1 July 2020” Brad Cramb CEO of distribution, Aussie Home Loans
Commercial Loans
Brad Cramb, CEO of distribution, Aussie Home Loans
AUSSIE CELEBRATES RAPID GROWTH OF ITS FRANCHISE NETWORK The 2020/21 financial year has been an incredibly successful one for Aussie Home Loans as more and more brokers join its growing franchise network
Aussie’s range of pathways to become franchisees. “These are people who have leveraged the power of the Aussie business proposition by taking advantage of everything Aussie has to offer.” Cramb said the other 25% of new Aussie stores were operated by new-to-industry franchisees who were grasping the opportunity after being made redundant in other financial services roles or simply looking to jump into a new and thriving industry. “When you are part of the Aussie family you gain access to a range of pathways through a multichannel distribution model that empowers brokers with industry-leading training and development that continues well beyond accreditation. “We’ve implemented multimillion-dollar initiatives and incentives designed to drive growth. We enhanced our commission structure to ensure that our brokers are rewarded for hard work and are supported during the critical start-up phase.”
is reaping the benefits of a rapidly expanding broker franchise network that is exceeding all expectations. Aussie’s CEO of distribution Brad Cramb spoke exclusively to Australian Broker about the company’s growth in FY21. “True to the Aussie brand, we have thrived throughout the past 18 months, which has resulted in massive business growth and opportunity for our network,” Cramb said. “Aussie has outperformed even the most optimistic forecasts for growth. Across the nation, Aussie opened 22 new stores since 1 July 2020. In a clear show of broker confidence, a further seven
territories are in the pipeline to open before the end of 2021.” Nine of Aussie’s new stores are in NSW/ACT, while Aussie’s leading new store has settled more than $63m in the first six months. Aussie has also doubled the number of store brokers recruited year-on-year and activated 201 Aussie brokers in FY21. Cramb said much of the growth was being driven by existing Aussie brokers having the confidence to invest or reinvest in their own businesses. “In fact, 75% of new stores opened in the 2020/21 financial year were the result of existing franchisees expanding their territory and building multi-site businesses, or mobile brokers progressing through
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NEWS
TECHNOLOGY CBA INTRODUCES NEW DIGITAL SOLUTION FOR SMES has unveiled a new digital lending solution that enables SMEs to use invoices to access short-term capital. Stream Working Capital is a round-the-clock solution offered in partnership with lending platform Waddle. It allows businesses to use their outstanding invoices as loan security to get funds. CBA Business Banking group executive Mike Vacy-Lyle said cash flow was a key issue facing small businesses, and the new solution would provide faster access to financing, with manual processes reduced by up to 80%. The approval process only takes 72 hours. CBA
MONEYTECH PARTNERSHIP TO CUT RESPONSE TIMES Moneytech, a major player in the SME space, has announced a partnership with payroll funder APositive. The move will see the lender assist SME brokers and their clients by providing greater access to payroll and timesheet data, reducing turnaround times. “We think this is breaking new ground because a lot of financiers and non-banks right now are funding their clients through data that is already extracted from a client’s accounting software, such as Xero, MYOB or QuickBooks,” said Moneytech CEO Nick McGrath. FINTECH
“We believe that the creation of intelligent and effective technology will continue to boost efficiencies and reduce the time to yes” Brett Stanford CEO, NextGen.Net
Brett Stanford, CEO, NextGen.Net
NEXTGEN.NET APPOINTS NEW CEO WITH WEALTH OF EXPERIENCE Leading tech provider to the mortgage industry NextGen.Net has promoted to CEO a key member of its team who has worked at the company since 1997 has announced its new CEO as Brett Stanford, who moves up from the position of applications director. Stanford has been at NextGen for 25 years and was at the forefront of the fintech’s lending platform operations, designing and delivering its digital offering to aggregators and lenders. NextGen offers tech assistance across the lending process, from electronic lodgement to loan processing and broker solutions. Its ApplyOnline electronic lodgement platform is used by 97% of Australian mortgage brokers. Stanford has taken over from founder and previous CEO Adrian Macleod, who will stay on as executive chairman. The new CEO NEXTGEN.NET
started his role on 1 July 2021. “Brett is highly regarded in the banking and finance community and well known to NextGen customers,” a NextGen spokesperson said. “His experience and expertise gained over the years at NextGen means he holds a wealth of knowledge on industry, lender, aggregator and regulatory requirements. “His comprehensive understanding of loan origination and assessment requirements and how all parties in the loan value chain work together is paramount to identifying technological innovation opportunities and delivering enhancements to market.” Stanford said he looked forward to leading a highly skilled and dedicated team.
“It’s business as usual for us, and I will continue to focus on our mission to ‘make lending easy’, ” he said. “That’s our litmus test for everything we do. We will continue to identify, build and provide enhancements to our customers that deliver increased efficiencies, lower costs and better consumer outcomes. “In the near future our intention is to amplify the use of data from multiple sources, including open banking, to streamline the loan application process to benefit all participants in the loan value chain.” Stanford said NextGen strives to increasingly digitise manual processes and leverage data that will “drive us to that utopia of straight-through processing”. “We believe that the creation of intelligent and effective technology will continue to boost efficiencies and reduce the time to yes, allowing brokers to spend less time on administrative tasks and get on with what they do best.”
NEXTGEN.NET’S APPLYONLINE PLATFORM Source: NextGen.Net
Market leader for lending industry technology solutions
8
97% of Australian mortgage brokers use ApplyOnline
More than 50 Australian lenders and 70 brands facilitate electronic lodgement with ApplyOnline
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NEWS
MARKET BORROWERS LYING ON CREDIT APPLICATIONS — STUDY per cent of clients lie on credit applications, according to Experian. Its study revealed that one in five Australian borrowers embellished or omitted details on their loan approval forms, particularly for credit cards and personal loans. Sixty per cent also said they didn’t understand how loans were assessed. “I think the reason for [the lies] is that there is a feeling that if they disclosed the complete pictures, it might hinder their chances of approval,” said Experian general manager of decision analytics Mat Demetriou. TWENTY
FIRST HOME BUYER LOANS ON THE RISE, SAYS NAB
QUEENSLAND HAS HOTTEST PROPERTY MARKET ON EAST COAST — PEXA After years of lagging behind its eastern state counterparts NSW and Victoria, Queensland is now striking gold when it comes to a booming property market might be copping a beating in State of Origin, but in the property market there is only one winner. The latest PEXA Property and Mortgage Insights Report reveals the Sunshine State as the fastest-growing property market in eastern Australia. PEXA is Australia’s leading provider of digital property settlements and holds an 80% market share in conveyancing, giving it unique insights into transactions across the country. “The big headline is Queensland,” said PEXA senior research manager Mike Gill. “Looking at the last 12 months, we’ve seen that Queensland has QUEENSLAND
from National Australia Bank shows that lending to first home buyers surged over the first four months of 2021. The major bank said lending to this segment rose by 67% between January and April 2021 compared to the same period last year, and by 9% compared to September to December 2020. The Queensland and WA markets led the way with first home buyer lending growth of more than 90%. “The level of first home buyer activity has been like nothing we’ve seen in a generation,” said NAB executive, home ownership, Andy Kerr. DATA
Mike Gill, senior research manager, PEXA
recorded the highest growth of the mainland eastern states. Queensland was up 37% year-on-year and recorded over 200,000 property settlements in the last 12 months, so huge growth in that market.” Meanwhile, Western Australia recorded 57% year-on-year growth and its highest property sales settlement number since 2015. “Traditionally, Queensland hasn’t benefited from the growth that we’ve seen in the other eastern states: for the last five years, prices have plateaued there, in contrast to what we’ve seen in Melbourne and Sydney in particular. It’s good to see the fantastic growth we’re seeing in
the Queensland market currently. “The growth has come from the metro markets. The Greater Brisbane area was up 53% in that period, and that is where the Queensland growth is driven,” said Gill. “We can also compare against some of the other states. Victoria was a slightly different story. As a state, it did grow 11% in the last financial year compared to the previous one, and in most years that would be a really respectable growth number. But when you compare to Queensland and NSW, Victoria lags.” Gill said in Victoria it was a tale of metro versus regional. In Greater Melbourne, property settlements were down 2%, but the regional market grew 28%. “That points to lower property prices and the trend for city buyers to favour regional areas given the more flexible working environments and the lifestyle benefits,” he said.
“Looking at the last 12 months, we’ve seen that Queensland has recorded the highest [property] growth of the mainland eastern states” Mike Gill Senior research manager, PEXA
PROPERTY TRENDS ACROSS EASTERN STATES, JULY 2020—JUNE 2021 Source: PEXA
Queensland leads growth on east coast +203,000 property sale settlements (up 37% year-on-year) worth more than $106bn (up 44% year-on-year) Queensland has not outperformed Victoria in sale settlements for more than a decade
10
NSW also experienced strong gains in property sales
Victoria saw softer gains due to second extended COVID-19 lockdown
+218,000 settlements (up 26% year-on-year) worth more than $186bn (up 27% year-on-year)
+198,000 property sale settlements (up 11% year-on-year) worth more than $127bn (up 8% year-on-year)
Port Macquarie, Orange and Dubbo were in the top five suburbs for greatest number of property sale settlements
Regional Victoria bolstered sales figures with 28% year-on-year growth in settlements, while Greater Melbourne saw a 2% decline year-on-year
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NEWS
INDUSTRY BODIES HIA SUPPORTS CHANGES TO HOME DEPOSIT SCHEME Housing Industry Association has welcomed adjustments to the price caps and build times under the First Home Loan Deposit Scheme, saying these will help thousands more families own a home sooner. “The original FHLDS has been a great success, with 20,000 places taken up over the last 18 months. The 10,000 Family Home Guarantee places will help the ‘missing middle’ of homebuyers – families who have owned previously but are struggling to get back into the market,” said HIA chief executive industry policy Kristin Brookfield. THE
ASIC GETS COURT ORDER TO HALT UNLICENSED LENDER has obtained Federal Court orders to halt operations at a Melbourne-based mortgage lender associated with ex-Samoa rugby international Trevor Leota. Remedy Housing has been charged by ASIC with trading without a licence, engaging in misleading conduct, making false or misleading representations, giving false or materially misleading information when engaged in a credit activity, and obtaining property and financial advantage by deception. Leota, Remedy director Mahmoud Khodr and secretary Brent Smith have been named as defendants. ASIC
Peter White, managing director, FBAA
FBAA BACKS BROKERS IN THE FACE OF LONG TURNAROUND TIMES Peter White, the head of one of the peak bodies supporting mortgage brokers, goes in to bat for brokers over loan turnaround times managing director Peter White has blamed a lack of preparedness by the major banks and the unprecedented demand for home loans as the reasons for long turnaround times. “This whole pre-approval market issue is a great challenge to so many, probably tens of thousands of Aussies,” he told Sydney radio station 2GB. “It actually stems back into last year during COVID, where a lot of the major banks were offshoring their back-office administration functions and found out during COVID that there were issues with it. FBAA
“[The banks] should have been prepared. They saw this [demand for loans] coming, and they were saying all the great things but basically didn’t deliver” Peter White Managing director, FBAA
“We have been told, predominantly by major banks, that they are looking to increase staff ... between the impact of COVID, the continuing low interest rate environment and a hot property market, the banks basically can’t cope with it. “But they should have been prepared; this is on them. They saw this coming, and they were saying all the great things but basically didn’t deliver. So it’s a real problem.” White said brokers should allow for the increase in turnaround times and manage their clients’ expectations. “The latest data coming out
of banks is saying [that] it’s coming back to about four or five weeks. But in all honesty, that’s a joke. I’ve been in this industry over 40 years. These things take four or five days, not four or five weeks. “And there’s a real caveat to this from anybody who’s looking to get a loan: Please do it now. Don’t wait to the last minute, because it’s going to burn you on the way through. It’s very challenging. “I must admit that the cases where people who are waiting in excess of a month are getting much less, which means the banks are slowly getting on top of it. But the amount of people where it is still taking two to four weeks is just ludicrous.” White said it was important for people to be speaking to a mortgage broker. “They have an understanding of what’s happening in the entire industry.”
LENDER TURNAROUND TIMES BY QUARTER Source: AFG Mortgage Index, April 2021
Turnaround times to unconditional approval
30
27.1 25.2 23.9
25 Days
22.5 21.2
20
19.6
20.4
19.7
20.1
22.7
21.0 19.8 18.8
16.3
15
* Average number of days from submission of the loan application by the broker to the lender providing formal approval
FY18 Q2
12
FY18 Q3
FY18 Q4
FY19 Q1
FY19 Q2
FY19 Q3
FY19 Q4
FY20 Q1
FY20 Q2
FY20 Q3
FY20 Q4
FY21 Q1
FY21 Q2
FY21 Q3
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FE AT URES
COVER STORY
INSPIRING WOMEN TO REACH THE PINNACLE Michelle Bannister is proud of the support she received from La Trobe Financial as she moved up through the ranks into a senior role. Now she wants to encourage more women to choose a career in broking and finance
Michelle Bannister, senior executive – head of distribution, La Trobe Financial
has been at leading non-bank La Trobe Financial for 23 years and her career path has taken her all the way from the mailroom to senior executive – head of distribution. “La Trobe Financial’s support has helped me to grow and develop as a person and has offered me a number of opportunities during my career which at that time were traditionally seen as male-dominated roles.” Bannister says she began her career at La Trobe Financial working in the mailroom after completing a twoweek work experience trial – a typical cliché for a young female entering the corporate arena at that time. “From there, I progressed to the typing pool, where I was again MICHELLE BANNISTER
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“As much as it’s a juggle, a balance and hard work, don’t give up your career just because you have the title of being a mum” Michelle Bannister, senior executive – head of distribution, La Trobe Financial surrounded by females, but that’s where the cliché ended, which is a great reflection on the culture at La Trobe Financial where hard work gets recognised and opportunities are presented.” Bannister spent time in collections and then quickly moved into credit, where she realised her strength
and passion was in the third party channel, dealing with the brokers. “I headed up credit for nine years prior to moving into a sales role – which gave me a great foundation along with a high degree of confidence to back my decisions in the field, which is what I built my sales career on,” she says.
La Trobe Financial has always had a focus on employing females, and that hasn’t changed. “Opportunities are available to everyone – period. If you can prove yourself, and you do the work, the job is yours,” Bannister says. At the non-bank lender, the number of females entering the workspace is steady and holding at close to par with the number of males. “In recent times, we have experienced an extremely high calibre of females joining us, often coming out of larger corporate organisations where in some cases they tell us they feel that they lost sight of their future career path and felt more like a number with a limited voice.”
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In partnership with
Bannister says what has changed externally is that 20 years ago a typical broker would have been a mature-aged male broker, but that’s no longer the case, as younger women and men have become brokers. “That’s helped the transition to a greater level of acceptance of females in the industry and a greater deal of respect.” The industry has also come a long way in accepting and promoting women, Bannister says. “That wasn’t the case 15 years ago. You look at every industry body back then and it was 100% male dominated; well and truly over 80% of the industry was male.” Bannister says her move away from an individual sales role to her current role in which she looks after a team of 35 sales people has been rewarding. “My role now is about helping people under me succeed. I’m proud to have mentored a number of people and assisted them in finding leadership opportunities.” During her time as head of distribution, Bannister has created a number of state manager roles over the last 12 months, and three of them (NSW, Victoria and Queensland) are held by women. There are also two female state managers in the asset
simply a reflection of the best candidates for the role at the time getting an opportunity, which is evidence of the meritorious culture that exists at La Trobe Financial. “I feel that we’re set up well to provide even more opportunity for our staff, because the people under the state managers are going, ‘OK, there’s a stepping stone for me. How do I get there? I want that job’.” The company provides tailored training for its female employees to equip them with useful skills and tips and the confidence to work in what can be a male-dominated industry, Bannister says. In order to boost female broker numbers, which the MFAA says are at 26.9% – the lowest percentage ever – she says promotion and messaging via industry bodies is needed to show women how broking has changed and now offers work-life balance. “The way in which a broker was expected to operate 10 to 15 years ago, being nine-to-five minimum in an office five days per week, is no longer the same now, therefore it can appeal more now to females because as long as you’ve got your laptop and phone with you, you can be flexible around your hours,” Bannister says. “Digitisation of documents and the move towards more online
“A career in broking offers tremendous flexibility and security and can be incredibly rewarding personally and financially” Anthy Lakkotripis, senior lending consultant – commercial, Chocolate Money management arm of the business, bringing the total number of females in a sales leadership role to six, out of eight roles. Three of La Trobe Financial’s state managers are mums. “It shows to females in the industry that it is possible; as much as it’s a juggle and a balance and hard work, don’t give up your career just because you have the title of being a mum,” Bannister says. “La Trobe Financial has continued to provide me with great support, encouraging me to strive to be my best, and supporting me both in my day-to-day role and also by allowing me to progress my career whilst raising my young children.” Bannister says arriving at a female majority within sales leadership roles was not purposeful; it was
processes have enabled us to become borderless and able to operate from the kitchen table if we need to – this can be of great appeal to working mums and should be promoted.” Bannister says when it comes to La Trobe Financial helping female brokers, “we feel that our program caters well for all brokers, regardless of gender, to try new products and learn new skills, and have specifically engineered our products to do so”. “A great example would be in the commercial and development space, where the number of active female brokers is further reduced. We are able to provide a very hands-on approach with training and spend the time with brokers to empower them to ensure they have a high level of confidence to play in this niche market.”
Anthy Lakkotripis, senior lending consultant – commercial, Chocolate Money
The non-bank also provides great support for ‘women in finance’ events, supplying inspiring female keynote speakers and promoting education aimed at females in the finance industry. “I am always willing to share my story and experience with other females in the industry if it can help them on their journey,” Bannister says. Experienced female broker Anthy Lakkotripis is the senior lending consultant – commercial at Chocolate Money, a Melbourne brokerage specialising in the self-employed and building sectors. Lakkotripis has been a finance broker for more than 17 years. “I believe women may tend to shy away from commercial broking especially, as they perceive it as a highly specialised, male-orientated and difficult area to break into,” she says. “This, coupled with the fact that it can take up to two years before someone can create a truly sustainable income via their pipeline, may discourage some from entering this profession.” Lakkotripis says the finance industry also presents challenges to women that men won’t necessarily face. “Women who intend to have children and may need to take time out of the workforce are then faced
with a ‘rebuilding stage’ before their income is restored. This can be a major deterrent for many. "Having said all that, a career in broking offers tremendous flexibility and security and can be incredibly rewarding personally and financially. It is especially suited to women who are looking for a balance of career and being a mum.” While commercial broking is considered highly specialised, Lakkotripis says many of the skills are transferable, and becoming competent is not as onerous as it is portrayed. “It is important to first highlight the positives and then put systems in place which demonstrate and allow women to identify the skills they already have which can be harnessed and transferred.” Lakkotripis says the industry should also provide mentoring and peer networking so new brokers can fast-track their knowledge and gain success more quickly. She says the presence of female brokers will help dispel the “male requirement” myth. “Having successful women to look up to and be mentored by will indeed give other women entering this industry the confidence to strive for success regardless of any challenges that they may face with ‘old-school operators’.” AB www.brokernews.com.au
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05/07/2021 8:42:19 am
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SECTOR APPOINTMENT S
MAKING MOVES IN THE FINANCE WORLD Meet six industry professionals who have moved to new positions in a range of companies across the mortgage and finance sector
Huw Bough General manager banking, MyState Bank MyState Bank has promoted its former head of broker, Huw Bough, to general manager banking. Bough had been away from the company for two years, working as chief operating officer at Kooyong Avant, a joint venture that deals in specialist lending to medical professionals. Prior to that role, Bough oversaw the leadership, operation, customer services and sales performance of MyState Bank’s broking and banking divisions as general manager retail banking, business banking and broker. He also served in leadership positions at RAMS and Westpac. Now he brings his broker channel knowledge to the general manager role at MyState, in particular the emphasis on turnaround times that has put the bank in the top 25% of lenders recognised by AFG for
Huw Bough, general manager banking, MyState Bank 16
“I am very pleased to have joined NextGen.Net and am excited to help drive broker priorities into strategy and solutions” Renee Blethyn, NextGen.Net their speed of loan approvals. “Huw has an exceptional understanding of our business and our service proposition, and he appreciates the important role that MyState Bank plays in the lives of our customers and the broker community,” says MyState Bank managing director and CEO Melos Sulicich. “There is a big opportunity before us with Huw on board to build on the strong momentum of our retail and broker operations. Despite the impact of COVID-19, we have maintained and improved our service proposition
over the past 12 months, and Huw’s appointment will only serve to strengthen our efforts in this area.” Bough says he’s looking forward to working alongside a hugely talented group of people at MyState, which presents the opportunity for rapid growth. “We understand that brokers and their clients need a faster service proposition from lenders, which is why MyState Bank remains committed to supporting brokers by delivering consistently fast conditional and unconditional turnaround times.”
Sylvia Economou, franchise business manager, Mortgage Choice
Sylvia Economou Franchise business manager, Mortgage Choice Sylvia Economou recently joined Mortgage Choice as franchise business manager. She will focus on assisting Mortgage Choice franchise owners in driving sales performance and efficiencies and promoting best practice, as well as on the overall business performance of the franchise network in Victoria and Tasmania. Economou says she’s honoured to be working at Mortgage Choice, an established and respected brand in the broking and franchising industry. “For almost 30 years, Mortgage Choice has been helping Australians with their financial needs by delivering a range of financial choices teamed with trusted expert advice,” she says. After completing her business degree at RMIT, Economou started her 20-year career at ANZ, where she held numerous roles across sales, relationship management and capability development. She spent five years working at ANZ Mobile Lending and, more recently, worked at Liberty Network Services to support its broker network. “There has never been a better time to be a part of this industry, with brokers settling more than 60% of all residential home loans. I look forward to creating strong working relationships and supporting our franchisees to achieve business success,” Economou says.
Renee Blethyn, national head of broker partnerships, NextGen.Net
www.brokernews.com.au
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Renee Blethyn National head of broker partnerships, NextGen.Net
Alexis Holloway Senior credit manager, Pallas Capital
Leading fintech NextGen.Net has appointed Renee Blethyn to the newly created role of national head of broker partnerships to oversee its interactions with the broker channel. Blethyn joins the company from Suncorp, where she was national partnerships manager – bank intermediaries, and boasts two decades of experience in the sector, having previously worked in the mortgage, business development, specialist lending and retail banking segments. She also worked in several states at Pepper Money, BankSA and aggregator Connective. Blethyn’s arrival follows the appointment of Brett Stanford as the new CEO of NextGen.Net (see story on page 8). “I am very pleased to have joined NextGen.Net and am excited to help drive broker priorities into strategy and solutions,” says Blethyn. “It’s a great opportunity to work for a leading technology provider to the industry as they look to strengthen their partnerships with aggregators. I look forward to engaging broker groups and working strategically with them to support the broker community.” NextGen.Net chief customer officer Tony Carn says Blethyn is an outstanding choice for the new role, bringing along a wealth of experience, a deep understanding of the needs of the third party channel, and a strong focus on optimising innovation and opportunity.
Pallas Capital has appointed Alexis Holloway as senior credit manager, off the back of rapid growth of the specialist non-bank lender. In his role, Holloway will be instrumental in the structuring and approval process for all commercial real estate loans. He will also be responsible for establishing credit policy and will sit on the investment committee at Pallas Capital.
Alexis Holloway, senior credit manager, Pallas Capital
“I have admired from afar the business Dan and the leadership team have created at Pallas Capital. The company has experienced tremendous growth over the past five years and amassed a team of talented and experienced real estate financiers. I hope to contribute to its continued growth,” says Holloway. Pallas Capital chief investment officer Dan Gallen says Holloway brings a wealth of experience that he has acquired over the years through his work in corporate advisory, non-bank credit and funding roles.
“Pallas Capital has experienced tremendous growth over the past five years and amassed a team of talented real estate financiers” Alexis Holloway, senior credit manager, Pallas Capital Established in 2016, Pallas Capital is one of the fastest-growing structured property investment arrangers in Australia, having underwritten $850m worth of transactions. This number is expected to increase over the next six months, with Pallas Capital doubling its staff since the start of 2021 to accommodate its strong growth. Prior to joining Pallas Capital, Holloway spent 13 years in the real estate and structured finance sector, most recently as a senior credit manager at Balmain Group. He also worked at CVS Lane Capital Partners and Deloitte.
Terry Masri, credit officer, Brighten Home Loans
Terry Masri Credit officer, Brighten Home Loans Rapidly growing Australian non-bank lender Brighten Home Loans has appointed experienced credit professional Terry Masri as credit officer. Masri joined Brighten from Pepper Money last month and has more than 25 years’ experience working in credit assessment in the financial services sector. At Pepper Money he specialised in assessing alt-doc and non-conforming loans. Prior to this, he worked as a credit analyst at ING Direct and had a 15-year stint at QBE Insurance,
rising to underwriting team leader. Brighten’s head of credit, Stuart Murray, says the team is delighted to have Masri on board. “Terry brought a wealth of experience, especially in alt-doc lending within a non-bank environment,” Murray says. “Terry’s expertise in all facets of the credit assessment process will help ensure we provide our customers with quality decisionmaking and rapid turnaround times.” Over the next 12 months, Brighten is looking to continue its growth by ramping up its focus on prime and near prime lending and maintaining its trajectory in the market. “I am thrilled to be part of the growth journey of Brighten. I am excited about the opportunity to work with a growing organisation that is ambitious for success,” says Masri. Kristie Oldfield Business development manager NSW, RedZed Kristie Oldfield has joined RedZed’s business development team in Sydney, where she will bring her youthful energy and experience to the group. Oldfield has worked in finance for over six years, both as a broker and as a lender BDM at Resimac and Bluestone. She has a deep understanding of self-employed lending, is acutely aware of the needs of a broker, and is heavily focused on the importance of customer service. “We’re very excited to have secured the services of Kristie, who’ll provide valuable insights into the needs of a broker, and who also has some great broker relationships,” says national sales manager Adrian Fisher. AB
Kristie Oldfield, business development manager NSW, RedZed www.brokernews.com.au
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05/07/2021 9:33:23 am
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MARKET VIE W
DIVERSIFYING INCOME STREAM WITH SMSF LOANS Self-managed super funds can offer mortgage brokers a valuable addition to their usual income stream. Non-bank lenders Thinktank and Liberty reveal how easy it is for brokers to navigate loans to SMSFs
no complicated science behind limited recourse borrowing arrangements (LRBAs). Put simply, an LRBA is when an SMSF trustee takes out a loan from a third-party lender, says the ATO. The trustee uses those funds to purchase a single asset or collection of assets to be held in a separate trust. According to the ATO’s March quarterly statistical report, there are about 1.1 million SMSF members in Australia and 600,000 individual SMSFs in operation, collectively owning nearly $700bn worth of assets. Of the total SMSF investment in property, 65.3% is non-residential and 34.7% residential. That presents a world of possibilities for mortgage brokers. “For brokers ready to branch out into SMSF lending, there truly is a world of opportunity – largely because LRBAs offer SMSF customers so many options,” says Liberty group sales manager John Mohnacheff. “Recognising the benefits, more business owners are looking to buy their own premises through their SMSF with the help of an LRBA and paying rent directly into their own super fund. “But you don’t need to own a business to be eligible for an SMSF LRBA. For many SMSFs, purchasing a commercial or residential property with the help of an LRBA is simply a smart investment strategy. “For brokers, diversifying into SMSF lending can be a great strategy that helps them grow their business and source new referrals. Not only is there a significant market of customers looking for support in this area, but it’s likely that many customers within a broker’s existing database would want to hear more about these lending options.” THERE’S
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Mohnacheff says some brokers hesitate to move into SMSF lending due to its perceived complexity. “The truth is that SMSF lending has more similarities to a standard home loan than many brokers realise.” Liberty’s SMSF ‘Do More’ sessions provide comprehensive training to bring brokers up to speed
Amundsen says typically SMSF transactions are well-performing loans with very low to no arrears and are usually of much longer duration than standard loans – meaning they are quality loans that should stay in place for a long period. “It’s true some brokers see SMSF LRBAs as time-consuming and
“Brokers can help facilitate many forms of finance for an SMSF, including the purchase of commercial and residential property” Per Amundsen, director, Thinktank Commercial Property Finance and equip them with the tools they need to hit the ground running. “And, with unmatched SMSF lending experience, our awardwinning BDM team can walk you through the entire loan process to ensure you achieve the very best outcome,” Mohnacheff says. Thinktank Commercial Property Finance director Per Amundsen says: “A well-connected broker with relationships with SMSF specialist lenders can open up new opportunities for their customers. “Brokers can help facilitate many forms of finance for an SMSF, including the purchase of commercial and residential property and the refinance of related-party and third-party LRBAs both for residential and commercial. “They can also help find solutions to meet GST funding needs for commercial SMSF purchases, as well as assist with structured transactions such as tenants-in-common arrangements with multiple SMSFs.”
difficult. But with the right lending partner, training and guidance, these loans are no more difficult than a standard self-employed or SME loan.” Amundsen says the tax benefits of SMSFs are considerable, especially in the long term for wealth creation and retirement planning. “The zero tax on property investments is a prime example, whether relating to rental income or capital gains realised on disposal once in pension phase.” It is important to note that brokers cannot provide financial advice unless they are licensed to do so, Amundsen says. “But with the correct education they can become a valuable resource to their referral partners and customers in offering various funding solutions available in the market. “Thinktank provides SMSF accreditation sessions where we cover all aspects of SMSF LRBAs and alternative structures under trust arrangements. These
workshops are held on a regular basis, and we encourage any broker seeking to enter the field of SMSF LRBAs to attend these free sessions. Talk to us for more details.” Loan products Liberty’s SuperCredit product enables established SMSFs to leverage the power of their super and invest in either residential or commercial property, says Mohnacheff. “With LVRs available up to 80% of the property value and no minimum contribution requirements, it’s not surprising Liberty SuperCredit remains the first choice for so many brokers assisting SMSF customers.” Amundsen says, “Our product range for LRBAs features many of the advantages found in other Thinktank loans, including terms of up to 30 years and interest only for up to five years, depending on the LVR of the LRBA.” SMSF portfolio growth Mohnacheff says that over the last few years Liberty’s loan portfolio has continued to expand at a steady pace. “We’re delighted to support even more Australians to get financial and grow their retirement assets,” he says. “We’re also noticing an uplift in customers refinancing their existing SMSF loan into a Liberty SuperCredit loan. As more customers look to reap the rewards that SMSF loans can offer and more brokers look to get involved, we’re confident that our SMSF lending arm will continue to thrive.” Mohnacheff points out that as more customers become aware of the advantages of SMSFs, self-managed funds continue to grow in popularity – and brokers are realising this.
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Per Amundsen, director, Thinktank Commercial Property Finance
“We are seeing a steadily increasing number of brokers looking to get accredited to better serve this market, and it’s our goal to help business partners find their footing quickly.” Thinktank sees several factors driving the popularity of investing in direct property through SMSFs, says Amundsen, particularly in using gearing through LRBAs to maximise the investment power of superannuation savings. “And with interest rates having fallen to the current levels, alternative investments like direct real property are much more popular than was previously the case. “This is reflected in the growth of property investments in SMSFs generally, and the same holds true for Thinktank. We have continued to see very strong growth, and that’s despite the pandemic where activity was predicted to slow down. “The other notable aspect of our portfolio’s performance – both SMSF and other borrowers – is the relatively low level of hardships experienced last year and the quick
John Mohnacheff, group sales manager, Liberty
recovery in the past few months.” Amundsen says with a number of larger financial institutions withdrawing from SMSF lending, some assumed funding would no longer be available. “This is obviously not the case. So, in terms of the best referral
SMSFs can have from four to six. “The move to increase the number of members allowed within an SMSF from four to six will allow more people, usually family members, to pool their retirement savings and provide greater investment opportunities,” Mohnacheff says.
“The truth is that SMSF lending has more similarities to a standard home loan than many brokers realise” John Mohnacheff, group sales manager, Liberty networks, it’s more about making sure your typical referral network – accountants, financial planners, etc. – are aware of all the SMSF finance solutions and options still available.” Rise in SMSF trustee numbers On 1 July 2021, a new law came into effect that increases the maximum number of members
“As always, customers must seek professional advice on how to best structure their SMSF. “With larger groups, we may see some greater administration challenges. Before, it was possible for the one listed director to sign regulatory documents; groups of six will now require at least half of the directors’ or trustees’ signatures. However, it’s worth noting that
more than 90% of SMSFs currently have just one or two members.” Amundsen says much of the discussion has centred on adding family members, while previously this was restricted when more than two children were involved. “Our circumstances are different, with more of our four-member SMSF borrowers being made up of business partners rather than families,” he says. “We expect this will be an area of new opportunity, where new SMSFs will be formed by three couples who are business partners looking to invest in ‘business real property’ occupied by the business as a tenant. “The impact of two additional members and their increased contributions starting 1 July 2021 will be quite significant, and we are making preparations for the first enquiries. “Time will tell, but there is certainly potential now for an increasing number of larger transactions to begin emerging in the new financial year.” AB
SMSFS BY THE NUMBERS Source: ATO’s SMSF quarterly statistical report, March 2021
Quarter
Establishments
Wind-ups
Net establishments
Total number of SMSFs
Total members of SMSFs
March 2021
6,147
240
5,907
597,396
1,120,936
December 2020
5,693
591
5,102
591,489
1,110,568
September 2020
6,232
424
5,808
586,387
1,101,660
June 2020
4,591
9,001
-4,410
580,579
1,088,882
March 2020
5,659
2,008
3,571
584,989
1,097,724
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05/07/2021 12:41:03 pm
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COMMUNIT Y SUPPORT
FINANCE LEADERS GIVE BACK
Phil White, CEO, QBE Lenders Mortgage Insurance
Executives from the finance world gathered in cities across Australia last month to sleep rough for one night during the 2021 Vinnies CEO Sleepout. They raised millions of dollars in the fight against homelessness Nick Marval, district manager Sydney CBD, ANZ
and finance industry senior executives joined dozens of business leaders at the 2021 Vinnies CEO Sleepout in Sydney to raise funds for thousands of Australians living without a proper roof over their heads. Every year business leaders across Australia sleep rough for one night and help raise millions of dollars for the St Vincent de Paul Society. The funds are used to provide food, crisis accommodation and support services to assist the more than 116,000 Australians experiencing homelessness. This year marked the 16th annual CEO Sleepout, and while in 2020 COVID-19 forced organisers to run a virtual event with people sleeping in their backyards or at work, the 2021 event was back to normal with sleepout locations in all the major cities. Vinnies’ goal was to raise $8m, and at the time of going to print it had received more than $9.17m. Australian Broker caught up with nine finance executives who gathered at White Bay Cruise Terminal on a cold, clear winter’s night on 17 June with sleeping bags and cardboard in tow for the Sydney CEO Sleepout. Among them was Lendi Group’s chief operating officer Sebastian Watkins; chief marketing officer Zara Cobb; CEO David Hyman; and CEO of distribution Brad Cramb. They collectively raised more than $46,000 for Vinnies. MORTGAGE
20
Others who took part in the CEO Sleepout included QBE Lenders Mortgage Insurance CEO Phil White ($18,285 raised to date); ANZ Sydney CBD district manager Nick Marval ($5,520); Simplicity Loans and Advisory managing director Jean-Pierre Gortan ($12,066); GetCapital CEO Jamie Osborn ($10,909); and Lumi founder and CEO Yanir Yakutiel ($11,285). Participants told Australian Broker how they were able to hear on the night from people who had experienced homelessness. White was taking part in his sixth CEO Sleepout. “A colleague of mine who’s here tonight is doing seven in a row. When I got the role as CEO for the mortgage insurance business he said, ‘you should come along to this’, so I did, and I come back every year,” said White. “Mortgage insurance is all about helping people who don’t have a large deposit to get into housing, but we recognise there’s a lot of people who don’t have a chance of getting into housing. “Vinnies do a good job – they introduce you to people who have been through it … some of the stories, it could be you or I that you can find yourself homeless. One of the ones that was most heart-wrenching was a lady in her 70s. Her husband died – they had been married 30 years, her children got control of the house and they kicked her out.”
Jean-Pierre Gortan, managing director, Simplicity Loans
White said sleeping rough for one night was a small sacrifice for a great cause. “You meet some great people with similar values, all prepared to try and do something to give back.” Marval said ANZ executives in Melbourne had taken part in the CEO Sleepout before, and his boss asked for some volunteers, so he and colleague Mark Simpson got involved in the Sydney and Wollongong sleepouts. “I’ve already heard from one of the homeless people, Sylvia, who shared her story, and the reality is if you have two or three mishaps in your life, you’re not too far away from homelessness,” he said. Marval said he had heard that homelessness in Australia had
risen 13% in the past four years. “COVID has probably accelerated that with a few people, so any support we can do, we’re more than happy to give back to the community.” Gortan, of Simplicity Loans, was doing his third sleepout. “I felt like I’d been really fortunate in my personal life, in business, and this was something I felt that puts you a little bit outside your comfort zone, but it definitely gives you a profile and helps you use that profile for a very worthwhile cause,” he said. “Especially youth homelessness, which maybe doesn’t get as much press as it should – there’s some 37,000 kids that sleep rough or that don’t have a fixed address. I’ve got a couple of little girls, 12 and 10, so it definitely hits home for me.”
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Yanir Yakutiel, founder and CEO, Lumi
Jamie Osborn, CEO, GetCapital
From left: Lendi’s chief operating officer Sebastian Watkins; chief marketing officer Zara Cobb; CEO David Hyman; and CEO of distribution Brad Cramb
For Hyman, it was the third time he had taken part. “As a business we obviously help people get into homes every day of the week, and some people aren’t as fortunate, so we thought we could lend a hand and raise some money to make it a little bit easier,” he said. “It’s one of the most powerful things I’ve done to understand what the homeless endure living on the streets.” Cobb, who has long been a passionate advocate for ending homelessness, said it was her first time experiencing CEO Sleepout “on the ground”, with COVID restrictions last year meaning she and other Lendi executives, including Hyman and Watkins, slept at work on the balcony.
“This is just really about grounding yourself and giving back,” said Cobb. “We’re in a very privileged position both in the business and the roles that we’re in. I think it’s really important to take a minute and step away from that and hear other people’s stories.” Cobb said she had heard about an Argentinian woman who came to Australia with her family. She left her husband due to domestic violence, and he took the youngest child with him to Argentina and left her with nothing. “Today’s story resonated a lot with me being a female. I think you think you’re invincible to this and would do it differently or do it better, and then you hear of a strong female who got into that position
through no fault of her own.” Watkins said the sleepout was a “real eye-opener”, and it was something he was proud to support. “I probably didn’t quite understand just the significant impact [homelessness] can have on people that would otherwise be living very normal lives,” he said. “Hearing the stories had made it a bit more real.” Cramb was participating in his first CEO Sleepout. “I think the perception of what homelessness is in Australia is very different to reality, so to bring attention to that is very important in my point of my view,” he said. Osborn was embarking on his fourth sleepout. “It’s a fantastic event – Vinnies do such a great job not just of raising
the money but getting people upfront and personal with the homelessness problem,” he said. “I think that’s part of the tough nut to crack just how do you get that empathy through the community, so this is a really good program for that.” Yakutiel said it was his fourth sleepout. Last year he and his son, then aged eight, slept in the park next to their house, and it was great to give him an insight into homelessness. “It’s something you see every day living in Australia in any big city. It really disturbs me to see so much plenty on one hand and so much need and despair on the other, and it’s something I thought it would be important to raise awareness for.” AB www.brokernews.com.au
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05/07/2021 8:44:48 am
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OPINION
TURNAROUND TIMES AN OBSTACLE FOR BROKERS Ballooning loan turnaround times at major banks are frustrating brokers just as demand for their services surges alongside the strengthening housing market, argues MyState Bank’s new general manager of banking, Huw Bough resourcing, it is having an impact on the service experience that brokers can deliver to their customers. At a hearing of the Standing Committee on Economics during their ongoing Review of the Four Major Banks and other Financial Institutions in April, the CEOs of Commonwealth Bank of Australia and
confidence is on the rise as the economy recovers from COVID-19 and first home buyers take advantage of government schemes. According to the latest MyState Bank Quarterly Broker Survey, about two thirds of brokers are confident in growing their business this year as ultra-low interest rates boost demand and first home buyers tap their superannuation to enter the market. Brokers anticipate an increase in prospective clients over the next six months. Meanwhile, the uptake of technology and virtual advice during the coronavirus pandemic has meant brokers can do more business in the same amount of time, positioning them to meet the strong demand. BROKER
With hot competition in the housing market, the speed at which a borrower can settle a loan is increasingly important ANZ both acknowledged the time to yes for home loans was different depending on the channel.
Approval times a roadblock As they prepare for the influx of clients, brokers say turnaround times, the speed and frequency of changes around credit policies and the different requirements of lenders are issues of concern. More than half say turnaround times have significantly worsened since the end of 2020. With some big banks taking up to 30 days to provide conditional approval, brokers are right to feel frustrated. With home loan applications at record levels and hot competition in the housing market, the speed at which a borrower can settle a loan is increasingly important. Brokers are focused on meeting customer needs with competitive solutions in a timely manner. However, long delays in processing an application from other lenders is now negatively impacting customers and reflecting poorly on brokers. Majors’ double standard puts brokers at disadvantage Over the last couple of years, we’ve seen a widening in the disparity at the major banks between the time to yes if a customer walks into a branch versus the time to yes for a customer who deals through a broker when accessing the same product or service. Whether that is by design or due to poor 22
broaden their offering to other asset classes within the segment. Specialisation along industry segments will increase. We should see more innovation from lenders around policy for those customer segments they want to play in, and brokers becoming more specialised in industry verticals. If this happens and smaller lenders
Discharge rates unacceptable In an environment in which low interest rates make refinancing attractive, some lenders are taking up to 60 days to discharge a mortgage, well up from the standard 30 days. This is an awful impost on a customer who has plans, who has reasons for wanting to access funds, and if it impacts the customer experience, it impacts the broker’s advocacy with the customer. It also impacts brokers from a cash flow perspective. They are small businesses. Quite often they have investments, financial commitments and business plans.
Huw Bough General manager banking, MyState Bank
Policy change continues Another key issue of concern for brokers is keeping pace with rapid changes in bank policy. Next on the horizon is the adoption of ASIC’s new guidelines for product design and distribution obligations (DDO) for financial products, which take effect in October. As a result, lenders’ products and policies will be more nuanced to target customer segments, and brokers’ behaviour will align more closely to customer segments. For example, brokers specialising in the medico segment will
move quickly, it will boost competition. With their broad offering, big banks find it more challenging to adapt. We could see smaller banks and monoline lenders pick up market share. Bank customers more willing to look beyond the big four COVID has brought a change in behaviour, and you are now seeing customers looking beyond the big four banks to the smaller banks and lenders. Often smaller banks can be more nimble and able to move faster because they aren’t burdened by reparations following the Hayne royal commission and are less impacted by COVID. Some of the big banks also had offshore processing that was impacted by the pandemic, whereas MyState Bank, for instance, has always done its processing in Tasmania. It currently takes around eight to 12 days to receive unconditional approval at MyState Bank, compared to an industry average of 19.5 days. When we make a promise to brokers, we keep our commitment, because the broker is accountable to the customer for the same commitment. We believe the future is bright for broking. Looking ahead, my focus is to ensure that MyState is viewed as a trusted partner, and through that trust to help brokers reach their full potential and grow our market share in the broker space. AB
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05/07/2021 1:43:59 pm
PEOPLE
Do you have a question for our broker mentors? Email your question to:
antony.field@keymedia.com
BROKER ON BROKER
Tina Clark has been in the asset finance space for 20 years and is a broker and part-owner of Laurentide Financial Services. She travelled the world as a professional nanny and worked in a variety of roles before discovering her passion for asset finance. Here she answers questions about the sector
How different is equipment finance broking to other sectors such as residential? The equipment finance space A is faster and turnover greater than in the residential space. Our team has decided not to specialise, so we are dealing with all different types of small businesses, which is a challenge in its own right. Every business has a story and its issues; during any one month, we may be financing all types of equipment, from farm equipment to excavators, computers, packing machines, refrigeration equipment and more.
Q
What skills or knowledge do you need to specialise in this area? You need a thorough A understanding of how business works and where the numbers come from. You also need to get to know all about your clients so you are better equipped to place their finance requests successfully. If you are not familiar with the equipment a particular client is buying, Google is the best tool you can use to learn about it and get across your client’s individual needs. The Certificate IV and the Diploma of Financial Services developed by CAFBA is a great course for getting started in asset finance.
Q
What should the industry be doing to encourage more women to become brokers? This is the toughest question A of all. I don’t know why more
Q
women are not doing equipment finance. Is it because equipment finance is looked at as being more of a ‘sales role’ and, anecdotally, so many women seem to dislike the sales arena? However, I do not see myself as working in sales; I see myself as a problem-solver. Whether it is a $5,000 or a $500,000 deal, I do the same amount of work, so I ensure that every client is as special to me as the next – everybody gets my undivided attention. I am actively involved in encouraging more women into the broking industry by facilitating the CAFBA Women’s Forums. What is the best piece of advice you ever received in your career? “Do the deal.” We are A constantly bombarded by reasons why various finance companies will not approve a finance transaction, and you can easily get bogged down in the details. It is a broker’s responsibility to be able to find a home for most deals they are asked about, and I believe we need to move away from ‘matrix lending’ and get back to the real job of looking at a client’s merits and not just the item they wish to obtain finance for. We have many small businesses in Australia, and their requirements for finance can vary. Most clientele I assist do not necessarily tick the lenders’ boxes, so it is up to me to tell their stories to secure and finalise each and every deal. AB
Q
Tina Clark, finance broker, Laurentide Financial Services
“You need a thorough understanding of how business works and where the numbers come from. You also need to get to know all about your clients”
PITSTOP MENTORING Are you new to the industry, or simply keen to learn from experienced brokers who have words of wisdom to share? This is your opportunity for pitstop mentoring! If you have a question you’d like a senior broker to answer, contact us and look out for an expert answer in a future issue.
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05/07/2021 9:02:40 am
PEOPLE
Have an interesting deal? Have a particularly difficult or interesting deal? Why not share it with us? Email:
antony.field@keymedia.com
BIG DEAL Chris Howitt is an experienced mortgage broker who has worked at Mortgage Choice for more than 16 years. He assisted a single mum who was struggling to secure a construction loan so she could build her first home THE FACTS
Client 39-year-old female
Loan size and term $510,000 over 30 years (72% LVR)
Goal To obtain a home construction loan for a home
Location Port Melbourne
A 39-year-old single mother was trying to buy her first home through an owner-occupier land and construction deal but couldn’t get lenders to approve it due to serviceability issues. Having been declined twice for a construction loan through another broker, this client felt like she would never be able to build her dream home, let alone buy a home at all. She was a PAYG employee, received maintenance income for four children, as well as the Family Tax Benefit (FTB) A and B. Her parents were gifting her funds to pay part of the deposit, and she qualified for the $20,000 First Home Owner Grant. She was asking for a $510,000 loan over a 30-year term at a 72% LVR. When I heard about the client’s predicament from the first broker, the reasons for her being declined all seemed circumstantial to me – and specific lender policies appeared to be the only hurdle. I was keen to be referred and to speak to the client because I knew immediately of a lender (ANZ) that would most likely understand her situation.
THE TAKEAWAYS
The most important takeaway is really having good knowledge of all the policies of lenders on your panel. Mortgage
The most important takeaway is really having good knowledge of all the policies of lenders on your panel
THE SOLUTION
24
Aggregator Mortgage Choice
13 years, and many lenders simply won’t recognise income payments once children become teenagers; however, they continue to classify them as an ongoing expense. It turned out that one of the client’s
THE SCENARIO
After meeting the client and obtaining more supporting information relating to her income payments, we soon identified the potential hurdles. One issue was the age of her four children. They were all aged over
Lender ANZ
to her income assessments, lenders were taxing her full pay, and this became less income to use, as opposed to taking into account her overall net income. This is where it’s important to have access to a database of lender policies. I knew that ANZ considers the issue above more sensibly. It does not consider a child’s age when assessing maintenance and FTB payments. I was also aware that the bank assesses net income, allowing for things such as salary sacrificing. I always knew that lender policy was going to be critical to my recommendation. Once the deal was approved, the client was in tears. She will be moving into the home this month. I’ve just submitted an application to increase her mortgage by another $40,000 to vary some of the construction and give the client some extra money for landscaping.
Chris Howitt Owner partner, Mortgage Choice Port Melbourne
children was over 18, working, and no longer a dependant, but the mother was in the process of removing the child from Centrelink in relation to the FTB. It was enough to create potential issues, as lenders still saw this child as a dependant and an expense. Separate to this case study, I’ve seen a scenario in which a father only saw his teenage child on a Saturday night once a fortnight. The bank wanted to expense the child as well as the father’s maintenance payments (a double up), and this led to his loan application being declined. Thankfully, when talking to the right lender, they put the maintenance payment down as an expense and didn’t expense the child. Teenagers are not likely be an ongoing expense over the life of a 30-year loan, but not all lenders recognise this in their policies. Back to the single mum. Another issue was that she was salary sacrificing in her current employment. So, when it came
Choice has a Lending Centre Toolkit that displays all lender policies in one place and is searchable by keyword, meaning you can easily get to know how lenders treat certain circumstances. You should also be prepared to do your research for your clients prior to making your recommendation. I often tell clients with more complex deals that researching the specific details of their loan application may take a week. It’s also good to communicate with the client about what documentation and details will be needed so they understand what you’re doing and why. It is critical when in doubt to run the scenario past your lender BDM, other brokers in your office or your network, or your aggregator’s credit team. Furthermore, it’s essential to have clear notes to present to the lender and BDM. In this case, you wouldn’t want to miss that the client receives income for a child but the child is over 13 years of age. Every little detail matters. AB
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05/07/2021 2:32:17 pm
PEOPLE
CAUGHT ON CAMERA More than 40 female commercial brokers celebrated the launch of the Women’s Commercial Finance Forum (WCFF) in Adelaide last month. The WCFF is the brainchild of founder and managing director Yasmine Shah, a senior business development executive at Tradeplus24. Shah says the forum is the largest women’s commercial finance community in Australia, with a national membership of more than 630 female finance brokers and women in finance who are passionate about supporting the prosperity of self-employed Australians. “The WCFF is both a virtual and face-to-face commercial finance upskill hub where brokers learn from each other and from industry stakeholders through scenario and best practice based collaboration, mentoring and networking,” says Shah. It meets in every state several times each year. Sponsors included La Trobe Financial and NAB. La Trobe Financial senior manager client partnerships Stacey Madejewski says, “It was a brilliant turnout, great cause, great inspiring venue, and just a great day all around. I have had some extremely positive feedback.” Experienced broker Sharyn Gommers from Hamptons Advisory mediated several broker panels and interviewed Rose Kentish and Kari Allen, the co-founders of Sparkke Change Beverage Company.
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05/07/2021 12:48:48 pm
DATA
i
SOUTH AUSTRALIA
VIC SPOTLIGHT
First home buyers are reclaiming their space in SA’s housing market The latest report from the Real Estate Institute of SA (REISA) shows that the share of first-time buyers in the market hovered at around 33% in each month between September 2020 and April 2021. “This increase is a welcome improvement from the first seven months of 2020, when first-time buyers accounted for less than 29% of all state housing loans,” said Barry Money, CEO of REISA. Money said applicants for the state’s First Home Owners Grant over the 10 months of the 2020/21 financial year have already exceeded those in the preceding year in terms of volume and total value of financial support. “Record-low interest rates as well as targeted government measures have provided strong incentives to enter the market,” he said. Money believes the federal government’s move to make access to superannuation easier, along with its expansion of the First Home Loan Deposit Scheme, will enable more South Australians to break into the market. Area
Metro (H)
Median
Quarterly
12-month
Weekly
Gross
price
growth
growth
median
rental
5.9%
rent
yield
$400
4.1%
$527,500
3.1%
Metro (U)
$371,000
1.0%
7.4%
$350
4.7%
Country (H)
$302,250
1.8%
3.6%
$280
5.0%
Country (U)
$360,000
4.6%
3.0%
$220
5.3%
TASMANIA
The state government has pledged to invest in infrastructure and construction Tasmania’s Minister for State Development, Michael Ferguson, has said investment in infrastructure and construction is crucial as the local economy continues to recover from the impacts of the COVID-19 pandemic. “Our record investment of $615m into social and affordable housing, and homelessness initiatives, including our record election commitment of $280m to extend our building program of new social housing for Tasmanians in need, is the biggest in this state for decades,” he said. Based on his projections, Tasmania will be able to build 2,000 new homes by 2027, on top of the 1,500 already being built over the next three years. “Two recent examples of upcoming projects are the awarding of the Youth at Risk facility in Launceston, worth $2.32m, to RTC and the announcement that VOS have been awarded the $8.7m upgrade and expansion of Thyne House in Launceston,” Ferguson said. He added that the state’s infrastructure program has also served as a stimulus for the local economy. Area
Median
Quarterly
12-month
Weekly
Gross
price
growth
growth
median
rental
rent
yield
Metro (H)
$600,000
3.7%
11.0%
$465
4.4%
Metro (U)
$440,000
1.1%
5.0%
$400
5.0%
Country (H)
$400,000
4.2%
12.1%
$350
4.9%
Country (U)
$291,000
1.1%
4.7%
$290
5.2%
26
BIG SPENDING ON SOCIAL HOUSING
The state has commenced the roll-out of the largest single investment in social housing seen in Australia where it’s needed most in locations like Collingwood and South Yarra – close to school, employment opportunities, health services and transport,” said Minister for Housing Richard Wynne. The Delacombe, Collingwood and South Yarra sites add to the Big Housing Build projects already underway at Ascot Vale, Ashburton, Flemington, Hawthorn, Heidelberg West and North Richmond. The landmark $5.3bn Big Housing Build is the largest single investment in social and affordable housing in Australia’s history. It is expected to deliver 12,000 new homes across the state. Roughly $1.25bn will be invested in regional areas. The project will boost Victoria’s social housing supply by 10%, while creating 10,000 jobs per year over the next four years. Acting Premier James Merlino said the Big Housing Build hits two birds with one stone: providing a roof over the heads of vulnerable Victorians, and opportunities for job creation.
Victorian government is ramping up its investment in housing in an effort to provide homes for more Victorians and boost the construction industry. The government recently announced an investment in regional housing to create at least 150 social housing homes in Ballarat. This project is expected to create 100 direct and 350 indirect local jobs. The construction of these homes will commence next year and will replace 66 of the existing ageing social housing homes at the Delacombe estate. “We’re creating local jobs, while also building homes that will transform the lives of community members, delivering a stronger and more resilient Ballarat,” said Wendouree MP Juliana Dickinson. A construction project in Collingwood and South Yarra is also expected to deliver 480 new social and affordable homes while generating more than 2,000 new jobs. “We’re getting on with building housing THE
MELBOURNE HOUSING MARKET FUNDAMENTALS Source: CoreLogic, June 2021
Property stats for the week ending 27 June 2021
New listings:
6,317
Total listings:
24,515
Houses
2,013
$720,000
31
Monthly sales volume
Median price
Median days on market
1,098
$574,000
41
Monthly sales volume
Median price
Median days on market
Units
SUBURB TO WATCH: PORTLAND Median price (houses) $300,000
Median price (units) $195,500
12-month growth
3-year growth
Average annual growth
Gross rental yield
7.1%
30.4%
3.1%
6%
12-month growth
Average annual growth
Weekly advertised rent
Gross rental yield
-3.2%
5.3%
$265
7%
www.brokernews.com.au
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05/07/2021 10:49:28 am
AUSTRALIAN CAPITAL TERRITORY
New guidelines for the ACT’s Sustainable Household Scheme have been released The ACT government has released the guidelines for the $150m Sustainable Household Scheme, which will provide zero-interest loans for energyefficient upgrades. The scheme will enable eligible households to access loans worth from $2,000 to $15,000 for the upfront costs of investing in energy-efficient home upgrades. These loans will be repaid over 10 years and will not have fees. Applicants will have the option to borrow above the $15,000 limit, but approval will be based on their credit checks. “The government is in the final stages of the procurement process to engage a loan provider and will also invite the initial group of registered homeowners, who have already completed an Actsmart workshop, to take part in a pilot before the end of June,” said Andrew Barr, Chief Minister of the ACT. The scheme is a key part of the government’s strategy to tackle climate change, while helping households reduce their power bills and growing jobs in the renewable energy industry, Barr said. Area
Median
Quarterly
12-month
Weekly
Gross
price
growth
growth
median
rental
rent
yield
Metro (H)
$806,500
2.7%
9.5%
$600
4.2%
Metro (U)
$486,000
2.7 %
7.3%
$485
5.4%
NEW SOUTH WALES
Sydney’s falling vacancies are a positive sign in areas hit hardest by COVID-19
HIGHEST-YIELD SUBURBS IN VICTORIA Suburb
House
Gross rental yield
Median price
Quarterly growth
12-month growth
Average annual growth
MALLACOOTA
H
15%
$450,000
17%
7%
4.9%
OUYEN
H
12%
$123,000
-2%
7%
7.1%
POINT LONSDALE
H
11%
$920,000
5%
9%
3.5%
MURTOA
H
8%
$125,000
-4%
-2%
5.8%
NHILL
H
8%
$160,000
0%
36%
5%
WARRACKNABEAL
H
8%
$155,000
10%
31%
5.4%
MERBEIN
H
7%
$220,000
8%
5%
3.6%
MORTLAKE
H
7%
$260,000
13.1%
N.A.
7.8%
STAWELL
H
7%
$235,000
3%
21%
4.5%
MILDURA
U
6%
$226,000
3%
1%
3.1%
According to data from the Real Estate Institute of NSW (REINSW), vacancy rates in Sydney’s inner-ring suburbs fell month-over-month in May to 3.3%. They also dropped in both the middle-ring suburbs (to 4.6%) and the outer ring (to 2.5%), falling by 1.2% and 0.7% respectively. Overall, vacancies across Sydney fell in May and now sit at 3.3% – down 1.0% from April 2021. REINSW CEO Tim McKibbin said the figures suggested more confidence in the economy and jobs market. “While it is still very early days, this is a positive sign particularly for the inner ring, which has endured a lacklustre performance during the past 12 months with no international students and tourism to boost vacancy rates,” said McKibbin. “It is good news for those with investment properties, and an improvement from the peak 5.8% vacancy rate recorded back in June and October last year.” The Newcastle and Wollongong rental markets remained steady during May. Overall vacancy rates in the Illawarra fell slightly to 0.9% – the lowest level since April 2016. Area
Metro (H)
Median price
$1,090,000
Quarterly
12-month
Weekly
Gross
growth
growth
median
rental
3.1%
rent
yield
8.4%
$560
2.9%
Metro (U)
$732,000
0.7%
2.8%
$490
3.5 %
Country (H)
$550,000
2.9%
8.9%
$420
4.2%
Country (U)
$470,000
1.1%
7.1%
$360
4.1%
www.brokernews.com.au
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05/07/2021 10:49:35 am
DATA
WESTERN AUSTRALIA
Rents in Perth are significantly more affordable than at previous price peaks The latest report from the Real Estate Institute of WA (REIWA) shows that most Perth suburbs continue to be among the most affordable for tenants across Australia. In fact, around 235 suburbs have reported median house rents that are below their previous peak prices. “Our analysis shows 201 of the 235 suburbs had median house rents 10% cheaper than their previous peaks, while 37 of those 201 suburbs were more than 20% cheaper than their previous peak median rents,” said Damian Collins, president of REIWA. Collins said that despite a lift in rental prices over the past year, WA overall remained the most affordable place to rent a home. “It’s very clear that the biggest issue facing the Western Australia rental market is not affordability but the shortage of housing,” he said. “To keep rents affordable, property investors must remain an active part of the Western Australia market so there are enough rentals on the market to keep up with tenant demand,” he said. Median
Quarterly
12-month
Weekly
Gross
price
growth
growth
median
rental
rent
yield
Metro (H)
$525,000
3.1%
6.3%
$400
4.1%
Metro (U)
$405,000
2.7%
2.7%
$360
4.9%
Country (H)
$392,500
3.9%
13.6%
$370
5.1%
Country (U)
$235,000
4.1%
14.5%
$330
7.5%
148
Cleared
86
Uncleared
23
Clearance rate
78.9%
PERTH Total auctions
25
Cleared
11
Uncleared
5
Clearance rate
68.8%
Quarterly
12-month
Weekly
Gross
growth
growth
median
rental
rent
yield
$100,000 $0
Sydney Melbourne Brisbane
Adelaide
Perth
Hobart
Darwin
$492,500
$595,000
$470,000
$670,000
$420,000
$515,000
$493,250
$372,500
$200,000
$410,000
$300,000
$535,000
$500,000 $400,000
$574,000
$700,000 $600,000
$720,000
$800,000
Units
$820,000
Houses
$649,950
$900,000
Canberra
CAPITAL CITY HOME VALUE CHANGES Capital city
Weekly change
Monthly change
Year-to-date change
12-month change
Sydney
0.1%
1.8%
14.5%
13.9%
Melbourne
0.0%
1.1%
9.3%
7.1%
Brisbane
0.1%
1.4%
10.1%
12.3%
Adelaide
0.1%
1.1%
8.2%
13.1%
0.2%
0.5%
7.5%
9.8%
0.1%
1.4%
11.4%
11.4%
Metro (H)
$565,000
6.2%
10.5%
$490
4.9%
Metro (U)
$325,000
0.8%
0.0%
$375
6.5%
Perth
Country (H)
$435,000
0.5%
2.4%
$500
6.2%
Combined 5 capitals
Country (U)
$338,000
3.6%
6.7%
$370
6.0%
28
Total auctions
$1,000,000
The latest figures from the territory government show a 77% surge in property sales over the period from January to May 2021. This translates to 772 transactions – significantly higher than the 435 sales recorded in the same period last year. “There’s no doubt about it – the territory is booming. We are seeing more and more people choosing to purchase their own patch of the Territory – whether that’s building a new home or moving into an existing one,” said Michael Gunner, Chief Minister of the NT. The increasing demand for dwellings in the territory, particularly in its capital, has led to a significant rise in prices. In fact, separate figures from CoreLogic show that the median house price in Darwin increased by 3% monthly and 11.2% annually in May to $970,355. In the investor segment, demand for dwellings in the territory also increased, recording a 1.7% rise during the March quarter. On an annual basis, the NT reported the biggest gain in dwelling investments, which rose by 37% to $718m. Median price
ADELAIDE
MEDIAN HOUSE AND UNIT PRICES
The territory’s housing market has entered a boom phase in 2021
Area
The combined capital city auction clearance rate weakened slightly as volumes rose in the week to 27 June. There were 2,976 homes taken to auction, revising down by 2% from initial predicted volumes as the Sydney COVID outbreak grew. Of the 2,417 results collected, equating to a preliminary collection rate of 81.2%, 77.5% were a sold result. The previous week a lower volume of 2,400 auctions were held, with a preliminary clearance rate of 77.8%. Melbourne had its second-busiest auction week of the year, with 1,414 homes taken to auction and a preliminary clearance rate of 75.9%, higher than the previous week’s 71.5%. In Sydney, 1,101 homes went to auction, down -5% as COVID clusters grew, resulting in 52 auctions being rescheduled. Of the 920 results collected, a clearance rate of 81.8% was recorded, and the withdrawal rate was 9%. Of the 753 homes that did sell, 45.4% reportedly sold prior to auction. Canberra had the highest clearance rate at 87.8%. However, Brisbane was the busiest of the smaller auction markets, with 177 homes at auction and a preliminary clearance rate of 57.2%.
$417,500
NORTHERN TERRITORY
WEEK ENDING 27 JUNE 2021
$901,750
Area
CAPITAL CITY AUCTION CLEARANCE RATES
*The monthly change is the change over the past 28 days
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BRISBANE CANBERRA Total auctions
109
Cleared
79
Uncleared
11
Clearance rate
Total auctions
177
Cleared
83
Uncleared
62
Clearance rate
57.2%
87.8%
SYDNEY Total auctions
1,101
Cleared
753
Uncleared
167
Clearance rate
81.8%
TASMANIA
MELBOURNE Total auctions
1,414
Total auctions
2
Cleared
861
Cleared
1
Uncleared
274
Uncleared
1
Clearance rate
Clearance rate
75.9%
n.a.
Note: A minimum sample size of 10 results is required to report a clearance rate.
QUEENSLAND
Area
Median
Quarterly
12-month
Weekly
Gross
price
growth
growth
median
rental
rent
yield
The state has unveiled a $2.9bn investment to boost social housing The Queensland government has announced the largest concentrated investment in social housing in its history, with $2.9bn earmarked for the project. “We are investing $1.9bn over four years to increase social housing stock and get more vulnerable Queenslanders into homes quicker,” said Leeanne Enoch, the state’s Minister for Housing.“[And] to support this, we are establishing a new $1bn Housing Investment Fund, the returns from which will drive new supply to support current and future housing need.” Over the life of the state government’s housing strategy, around 10,000 social and affordable homes are expected to be added to the housing stock. Antonia Mercorella, CEO of the Real Estate Institute of Queensland, said the investment was a big step towards the goal of expanding the supply of affordable homes. “We welcome the large investment in putting roofs over people’s heads and the jobs that will be created during construction of this much-needed accommodation,” she said.
Metro (H)
$599,000
2.7%
5.6%
$425
3.9%
Metro (U)
$415,000
2.0%
3.3%
$385
5.0%
Country (H)
$475,000
2.2%
2.7%
$420
4.7%
Country (U)
$412,000
2.6%
6.7%
$360
4.7%
Source: Except where otherwise stated, all data sourced from CoreLogic, June 2021
NICK YOUNG: TRAIL BOOK SALE EXPERT Sell your book. Keep your clients. Release working capital or start succession planning. 03 8508 6666 | 0417 392 132 | nyoung@trailhomes.com.au | trailhomes.com.au www.brokernews.com.au
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05/07/2021 10:49:56 am
PEOPLE
Aggregator National Mortgage Brokers
IN THE HOT SEAT
Andy Truong worked at Commonwealth Bank for 10 years before setting up Melbourne brokerage Alliance Mortgage Group almost four years ago. The award-winning broker also part-owns a restaurant on the Mornington Peninsula
What skills did you pick up in your roles at CBA and as a restaurant partner that have helped you as a broker? Working at CBA gave me the opportunity to build a strong A financial foundation, and various lending roles strengthened my lending experience and business networking skills. This provided a large network of business partners in different industries, such as builders, accountants, real estate agents and business consultants, to help establish a large client portfolio in my mortgage business. As part-owner of a restaurant I learned different skills, giving me greater insight into different challenges and how to overcome them.
Q
You have won industry awards – what is the key to your success? These awards were not possible without the support of my A business partners and the advocacy of my clients. As a banker, I developed key working relationships with internal and external stakeholders. The key is to have good time management skills and productivity. As a brokerage we are lucky to not need online marketing – all our business has come via word of mouth from clients and ongoing referrals. The key element is honesty/integrity, and by living this value and delivering what we promise it allows business associates and clients to have the trust and confidence to advocate for our business.
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Your brokerage includes commercial, investment and personal loans. How important is it to diversify? Very important, as seen when the royal commission A recommended residential broker trails be abolished. Diversifying is key to business expansion and to minimising potential threats in changing environments. Our aim is to be a solution-focused business, not just when it comes to pricing but also in delivering a one-stop shop for all our clients’ financial needs. Delivering a wide range of financial products encourages client loyalty and allows us to place our customers’ needs at the centre of everything we do.
Q
Lender turnaround times have been a big issue for brokers. How are you dealing with this? have priority access to the major lenders and good working A We relationships with our second-tier lenders, so we can prioritise in terms of either pricing, solutions and/or fast turnaround times in
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Andy Truong, managing director, Alliance Mortgage Group
selecting the best lender for clients. Before submitting an application, we workshop it with a potential lender and have a clear line of communication open with clients. If we set the expectations, we can help minimise the impact of time delays. Where do you see yourself in five years? We aim to grow our business with loan support staff and brokers to A help increase new clients. We also aim to have relationship managers, to maintain constant contact with our existing clients through rate reviews, and to provide ongoing banking and lending solutions. We value both existing and new clients equally, so it’s important to invest in our business to maintain strong working relationships with both. AB
Q
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AMA21
Celebrating 20 years 15 OCTOBER 2021 • THE STAR SYDNEY
THANK YOU FOR YOUR NOMINATIONS MPA and Australian Broker would like to thank their readers for the incredible response to the call for nominations for the 2021 Australian Mortgage Awards. It’s great to see so many talented professionals and organisations within the mortgage industry who have excelled during an extraordinary year. Excellence awardees will be announced in August. Winners will be revealed live and celebrated at the highly anticipated black-tie awards gala on 15 October at The Star Sydney. BE PART OF THE INDUSTRY EVENT OF THE YEAR
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Our simpler Home Loan Pricing Tool An improved pricing tool, with more functionality - so you can get the best outcome for your customer, faster.
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commbroker.com.au Things you should know: *Loan and age eligibility requirements and other limitations and exclusions may apply. Applications are subject to credit approval. Terms, conditions, fees and charges apply. Commonwealth Bank of Australia ABN 48 123 123 124 Australian credit licence 234945.
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