NOVEMBER 2021 ISSUE 18.23
DAVID HYMAN The merger of Lendi Group and Aussie Home Loans will bring exciting new technology to the mortgage finance market, and the combined power of the brands gives brokers and customers more options /14 ALSO IN THIS ISSUE… Real estate market analysis Michael Matusik explains where housing markets now sit on the property clock /26 SMSF lending La Trobe Financial and Thinktank discuss the advantages of SMSF loans /32 ANZ reaches out to small businesses Major bank ANZ has doubled its business loan term to up to 30 years /16
Pallas Capital gains cash injection Non-bank lender scales up with $530m Credit Suisse funding deal /18
2021 Fast Brokerages rewarded Australian Broker unveils the country’s fastest-growing brokerages /21
In the hot seat A love of property led Amber Linzner to become a broker /34
BRIDGING FUNDS TO DOWNSIZE Short-term finance NCCP personal or business use $25K - $500K+ funded in 3-5 days No credit check or income assessment
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NEWS
IN THIS SECTION
Lenders Westpac enjoys big lift in profits driven by housing /04
Aggregators Mortgage Choice merger makes franchise major player /06
Market Prospa survey shows SME finance demand rising /10
GLOBAL WATCH What’s happening in the mortgage, broking and banking world in the United States and Canada? Here’s your snapshot of the news that matters most in North America
CUSTOMER SATISFACTION DROPS WITH SURGE IN BORROWING massive surge in US refinance loan volumes and an over-reliance on digital workflows have hit customer satisfaction levels, according to a new JD Power survey. The JD Power 2021 US Primary Mortgage Origination Satisfaction Study, based on the views of 5,414 people between June and September 2021, found that customers who purchased a mortgage or refinanced within the past 12 months were less satisfied with their homebuying experience. Overall customer satisfaction with primary mortgage originators dropped by five points (on a 1,000-point scale), driven largely by declines in satisfaction with the refinancing process. Both banks and non-banks experienced declines in scores. Mortgage originators “struggled to manage surging refinancing volume” amid efforts to streamline new issuance with a ‘‘one-size-fits all” digital workflow, causing an erosion of customer satisfaction. THE
PARENTAL HELP WITH MORTGAGES LEADS TO COURT BATTLES increasingly common phenomenon is Canadian parents going to court against their children over gifted down payments, according to Toronto law firm Shulman & Partners LLP. “I think it’s coming to a head because of the state of the housing market for so long,” senior associate Kevin Caspersz said. The average amount provided by older relatives to children who are buying homes swelled from CAD$52,000 in 2015 to $82,000 in 2021, Canadian Imperial Bank of Commerce said. The size of the average gift was even higher in Toronto ($130,000) and Vancouver ($180,000). The share of first-time homebuyers who have received this help from relatives grew from approximately 20% to nearly 30%. Caspersz said agreements between parents and children should “absolutely be formalised to protect both parties”. AN
www.brokernews.com.au NOVEMBER 2021 EDITORIAL
SALES & MARKETING
Editor Antony Field
Publisher/Sales Manager Simon Kerslake
News Editor Mike Wood
CORPORATE
Production Editor Roslyn Meredith
Chief Executive Officer Mike Shipley
ART & PRODUCTION
Chief Operating Officer George Walmsley
Designer Cess Rodriguez Production Manager Alicia Chin Customer Success Manager Andi Zbojniewicz
Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil
US homeownership remains elusive for many due to sky-high prices and supply WHILE issues, some areas are still affordable for low- and mid-income families. A National Association of Home Builders report showed housing affordability at its lowest level in nearly a decade: just 56.6% of homes sold in Q3 2021 were affordable for families earning the national median income of US$79,900. The national median home price grew by $5,000 to a record $355,000 in Q3. Lansing-East Lansing, Michigan, was the most affordable major housing market in Q3, with 89.1% of all homes sold in the metro affordable for families earning a local median income of $79,100. Pittsburgh, Pa., Indianapolis-Carmel-Anderson, Ind., Scranton-Wilkes-Barre-Hazleton, Pa., HarrisburgCarlisle, Pa., and Davenport-Moline-Rock Island, Iowa-Ill., rounded out the top five.
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EDITORIAL ENQUIRIES
Mike Wood +61 2 8437 4792 mike.wood@keymedia.com
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AFFORDABLE MARKETS EXIST DESPITE RECORD U.S. HOME PRICES
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A network that celebrates you
“
With the support of the experienced LNS team, you can build your own business with confidence. You’ll enjoy all the benefits of our strong network community while being recognised as an individual.
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Frank, music enthusiast
Masih, Persian BBQ connoisseur
Bindi, chess champion
Woo, coffee connoisseur
Michael, AFL fanatic
Aria, Army Reserve member
Hayley, self-professed chef
Alan, motorbike fanatic
Sandra, holiday lover
... PS, and when I’m not helping you build your business, I’m cheering on the Renegades in the BBL. Get on Red! Brendan O’Donnell Managing Director, Liberty Network Services
Dedicated broker and avid runner. Whether she’s running laps of her suburb or doing the legwork for first home buyers – as a Liberty Adviser and avid runner, Anna Nicolazzo is always willing to go the extra mile. She takes the time to guide customers through each step of the lending journey to help them get financial. Keep putting your best foot forward, Anna! Anna, running enthusiast
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. Liberty Network Services Pty Ltd ABN 65 151 158 628 Australian Credit Licence 408042.
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NEWS
LENDERS CBA MOULA LAUNCHES JOINS PANEL NO-FEE AT BUY NOW, AGGREGATOR PAY LATER FAST PRODUCT has launched a cash incentive for retailers that offer the new StepPay, the big bank’s buy now, pay later (BNPL) product. Many BNPL schemes charge businesses 4% to 7% per transaction, but StepPay has no transaction fees. This is to encourage smaller businesses to connect to BNPL and put extra money back into the enterprise. “StepPay is a win for small businesses and levels the playing field,” said CBA group executive for business banking Mike Vacy Lyle. CBA
TEACHERS MUTUAL MERGES WITH PULSE CREDIT UNION merger between Teachers Mutual Bank and Pulse Credit Union has been completed, increasing the mutual’s membership by 6,000. The merger is the latest in the trend of customer-owned bank consolidations. Newcastle Permanent and Greater Bank are undergoing a merger, as are People’s Choice and Heritage Bank. Teachers Mutual head of industry partnerships Jim O’Connell said the mergers were good for brokers and customers that choose to use brokers.
Peter King, CEO, Westpac Group
THE
“We grew our Australian mortgage portfolio 3%, or $14.7bn, over the year, a significantly better performance than 2020” Peter King CEO, Westpac Group
WESTPAC REPORTS HUGE INCREASE IN PROFIT AMID LENDING BOOM Australians’ penchant for property is paying off for major bank Westpac, which is enjoying a massive rise in annual profit and fewer home loan delinquencies has announced an annual profit of $5.45bn, up 138% on 2020. Shareholders will be paid out 60c per share on the back of the strong results. The major bank is riding the wave of a housing boom, with mortgage lending up 3% and home loan delinquencies down 55 basis points. “2021 has been another challenging year, with a focus on continuing to support customers and employees through the pandemic, while implementing our Fix, Simplify and Perform strategic priorities,” said CEO Peter King. WESTPAC
“Cash earnings rose, the balance sheet remains strong, and I am pleased with the progress we are making to transform Westpac into a simpler, stronger bank. Credit quality has remained remarkably good, with stressed exposures continuing to decline off last year’s peak. “We grew our Australian mortgage portfolio 3%, or $14.7bn, over the year, a significantly better performance than 2020. Owner-occupied lending increased 9%. Consistent with increased liquidity in the market, total customer deposits were up 4%, or $24.9bn.
FASTER THAN BANKS CHEAPER THAN CAVEATS ___
SPECIAL RURAL PACKAGES available now. LOW RATES capitalised for up to 12 months.
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King accepted that the results were not everything they could have been, but said Westpac was moving in the right direction. “We recognise we have more to do to become the high-performing company we aspire to be,” King said. “However, we are making progress in changing how the bank is run, including improving our culture and risk management systems, streamlining decisionmaking processes through lines of business, and streamlining our processes through digitisation.” That digitisation has sped up turnaround times at Westpac. “In mortgages, we have further digitised processes and introduced more than 70 policy and process improvements, which contributed to faster approval times. Our digital mortgage origination platform peaked at 810 applications per week, and we have started rolling out this platform to mortgage brokers.”
Melbourne (03) 9225 5189 Sydney (02) 9239 3144 Adelaide (08) 8408 0800
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NEWS
A G G R E G AT O R S AFG, VOLT TO LAUNCH MARKET-FIRST BANKING APP and Volt have announced a new link-up that could revolutionise how customers interact with banks and brokers. AFG will launch an app, Handl, that the aggregator says will give customers an interface to control all their banking products, and a white label home lending product, AFG Home Loans Sparc, powered by Volt. Steve Weston, CEO of Volt, said integrated finance will enable customers to bank with their trusted business partners, whether that be Apple, Google, a retailer, an airline or a mortgage broker. AFG
BROKERS’ CLIENTS NEED ‘INSIGHTS’ ON RATE RISES managing director John Kolenda has urged brokers to have honest conversations with their mortgage clients about the possibility of future interest rate rises. “It’s important to know what is going on in the market. You engaged in discussions with consumers, and you need to be able to provide them with insights into possible scenarios that might affect them in the future,” Kolenda said. “They should be mindful of anticipating some sort of rise and the impact that it might have on their monthly repayments.” FINSURE
“We have made excellent progress to integrate our businesses, including the announcement that the combined businesses will operate under the Mortgage Choice brand” Owen Wilson CEO, REA Group
Commercial Loans
Owen Wilson, CEO, REA Group
MORTGAGE CHOICE SOON TO BE N0. 2 BROKER FRANCHISE – REA GROUP Real estate media giant REA Group is making a play to be the largest broker franchise network in the nation, following the merger of Mortgage Choice and Smartline CEO Owen Wilson has staked his company’s claim to be the biggest player in Australian real estate, naming the newly merged Mortgage Choice and Smartline broker networks as the secondbiggest franchise in the mortgage broking space. Mortgage Choice and Smartline are estimated to have around 900 brokers across Australia, with Mortgage Choice operating over 400 franchises, which will retain their names and branding after the merger. It is expected that Mortgage Choice will be fully integrated REA GROUP
into the business by Q3 of FY23. This will mean the combined franchise group will be second only in size to Aussie Home Loans and Lendi, which also merged this year and boast 1,200 brokers in Australia. Wilson told REA Group’s AGM that the integration of Mortgage Choice, as well as the dominant position of the flagship realestate.com.au brand and the newly acquired Simpology e-lodgements and loan application brand could see his company become the biggest player in the Australian property market. “This acquisition not only increases our access to the $400bn
home loan market, it positions REA’s combined Mortgage Choice and Smartline business as the number two retail mortgage broking business in Australia,” said Wilson. “Since completing the acquisition, we have made excellent progress to integrate our businesses, including the announcement that the combined businesses will operate under the Mortgage Choice brand.” “In June, REA acquired a 34% stake in Simpology, an Australian software company providing mortgage application and e-lodgement solutions for the broking and lending industries. “Simpology’s technology enables direct transmission of digital mortgage applications to a broad range of banking and lending partners. This technology will also deliver significant productivity improvements to our broker network.”
1st mortgage, 2nd mortgage and caveat loans
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22/11/2021 12:51:33 pm
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TECHNOLOGY UPDATE
NEXTGEN.NET INTRODUCES VOI TOOL TO APPLYONLINE
Tony Carn, Chief Customer Officer, NextGen.Net
is unveiling a new digital identity verification service that will rapidly accelerate the application process for brokers, lenders and borrowers. Announcing the launch of ‘NextGenID’, NextGen.Net Chief Customer Officer Tony Carn describes it as “a breakthrough moment at an industry-wide level”. “The online verification of an applicant’s identity is a friction point for customers, brokers and lenders alike,” says Carn. “We’ve worked very hard as an industry to create highly standardised approaches for many things. Of course, everyone differentiates themselves on key factors such as price, product and credit policy, but verification of identity is not a selling point. It’s a requirement.” Traditionally, verifying the identity of applicants has been a tedious, paper-based process with a reputation for creating missing information requests and delaying application approvals. “NextGenID introduces the opportunity for the industry to embrace an easier approach to identity verification,” Carn says. NEXTGEN.NET
As more transactions move online, remote verification of identity is a key step in an efficient and compliant process for meeting customer expectations and ensuring lenders keep pace with competitors. COVID-19, which virtually jettisoned face-to-face interactions, has increased the use of VOI apps and added yet another dimension to the need for a better and unified approach. “With NextGenID, we can harmonise identity verification by simply integrating it into the application process,” says Carn. The NextGenID tool enables a broker to send a request to an applicant for identification requirements from within ApplyOnline. Using optical character recognition and biometric scanning, applicants can securely capture their identity documents and complete a liveness test using any device within a minute. Carn explains that NextGenID not only verifies a customer’s identity, it verifies that the identity documents are current and legitimate. In 2019, NextGen.Net became an authorised gateway provider for the Australian Government’s
Document Verification Service. “That data function is integrated into NextGenID. So not only do we verify the customer’s identity, we validate their identity documents against a range of national and state-based databases,” says Carn. Using NextGenID, verification of identity is entirely automated and provides an instant result within seconds, giving brokers realtime updates when authentication is complete and delivering a full identity compliance report to activated lenders. “Notably it’s also about the validation of a customer’s consent to a lender,” Carn emphasises. “This changes the whole game regarding brokers being better equipped to embrace next generation technology and tools provided to them by lenders via their ApplyOnline applications. “Cost and time to yes, both major bugbears, are all about lenders having to go back to the broker and ask for more information, most frequently regarding identity issues. “Why this is so exciting is because NextGenID eradicates that.” Carn says NextGen.Net’s mission is to make lending easy for all participants in the lending value
chain, from lenders to aggregators and brokers, and ultimately end-customers – borrowers. “Our mission is for lenders to have a much lower reliance on supporting documents, and to eradicate reworks,” he says. “NextGenID means a lender doesn’t have to ask for copies of a driver’s licence or a passport, or use a separate non-integrated app; instead, we give them all the validation they require in one place. “Not only does that eliminate cost for the lender, it also drives out prolonged time to approval – both of which are major pain points.” By fully automating and integrating the verification of identity into ApplyOnline, NextGenID will save significant time for brokers and lenders and reduce turnaround times while also delivering an improved and impressive experience for a borrower. “NextGenID streamlines the identification process for all users, providing speed and convenience while protecting the privacy of borrowers and insuring against fraud. Importantly, it enables lenders to empower brokers through an increasingly integrated process.” AB
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NEWS
MARKET 1% RATE RISE WOULD HURT MANY AUSSIES – FBAA than half of Australians with a mortgage would be unable meet repayments if there was a 1% rise in interest rates, a new FBAA study shows. The survey asked borrowers how prepared they were for a $300 increase in mortgage repayments (based on a 1% rate rise). Fifty-seven per cent said they would not be able to meet the new repayments. “This survey is a wake-up call and shows that even a small rise in rates could be catastrophic for our nation,” said FBAA CEO Peter White. MORE
BIG BANKS ENJOY STRONG PROFITS DESPITE PANDEMIC big four banks have made a spectacular rebound from the pandemic, with profits up massively on 2020. Across ANZ, CBA, NAB and Westpac, profits were up 54.7% on last year, totalling $26.8bn in NPAT and a 70% increase in shareholder payouts. “At the high level, we are looking at 2019, 2020 and 2021, and if we look at operating income we were very slightly up: 0.1% on last year and down 1.5% on 2019,” said KPMG banking strategy lead Hessel Verbeek. AUSTRALIA’S
Roberto Sanz, national sales manager, Prospa
EXPECT RISING DEMAND FOR FINANCE FROM SMES, SAYS PROSPA Brokers need to get ready for a surge in demand for small business loans, after a survey revealed 37% of SMEs will need finance in the next six to 12 months research from fintech lender Prospa has indicated that demand for commercial financing is surging across Australia. The study, carried out by RFi Group on behalf of Prospa, suggests that 37% of small businesses will be in need of funds in the next six to 12 months, a number that will grow to over 50% for those between two and five years old. Those mid-aged SMEs are also the ones that will need the most funding, with between $46,000 and $58,000 in finance required. Demand spans several sectors, with the need for standard financing arrangements such NEW
as asset finance for tools and equipment ranking alongside funding for digital transformation and restocking inventory after lockdown seen as major drivers. “Positive sentiment is on the rise with restrictions relaxing in time for end-of-year trade, one of the busiest times of the year, reflecting that the nation is entering a phase of strong economic recovery,” said Prospa national sales manager Roberto Sanz. “However, 37% of businesses require credit to get the business back on track. “An incredible 87% of small businesses believe that an opportunity would be lost without
access to credit, which highlights the importance of readily available funding. “With demand for funds high, and small businesses requiring it fast, we encourage brokers to consider alternative lenders such as Prospa. We offer funding in 24 hours, and we’re now offering eight weeks no repayments until the end of the year.” Sanz said restrictions may have led many small business owners to be more careful with their cash flow, delaying purchasing decisions, but as the nation reopens Prospa expects SMEs will need credit to retool, restock, and rehire. “We launched Prospa Plus Small Business Loans last month, a product that was designed after feedback from our partners, enabling us to now offer loans of up to $500,000 with improved terms to ensure brokers can service more of their clients.”
“An incredible 87% of small businesses believe that an opportunity would be lost without access to credit, which highlights the importance of readily available funding” Roberto Sanz National sales manager, Prospa
CREDIT GROWTH BY SECTOR — YEAR ENDED 28 OCTOBER 2021 Source: ABS; APRA; RBA
30% Housing
20% Business
10% 0% Personal
-10% -20%
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Redefining commercial finance
Thinktank has a proven track record of providing straight forward commercial property finance solutions, with no surprises• Support your self-employed and investor clients with: • ‘Set and forget’ loan terms from 6 months to 30 years • Purchase, refinance and equity release ($100K - $3M) • SMSF finance options • National Relationship Manager support • The deepest commercial property experience in the market
Into people. Not just transactions. 1300 781 043 | deal@thinktank.net.au
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BUSINESS UPDATE
PEPPER MONEY SIMPLIFIES ACCESS TO ASSET FINANCE API-enabled originations platform, Solana, has been enhanced to embed next-level tools and capabilities, integrated directly into introducer systems to save time and effort. The enhanced originations platform is now available to brokers and introducers for commercial loans. After entering the asset finance space in 2014, Pepper Money has grown from challenger to major player in an increasingly fragmented market. With asset finance loans under management reported at $3bn in 1H 2021 results, Pepper Money is playing a growing role as partner to major asset finance broker groups, dealer groups and manufacturers. The leading non-bank took the Solana platform to market to test and learn late last year, beginning with Novated and Consumer, and has now extended the rollout to commercial finance products. “Our primary relationship is with our introducers – we are here to help them succeed, because they are our path to customers; and that influences the way we see our network,” says Lucas Tarnawski, Pepper Money Head of Product – Asset Finance. “We are focused on offering them best-in-class technology to help them deliver the best possible customer outcomes.” Tarnawski says the smart technology improves approval rates and speeds up decisions to transform the asset finance experience. “Solana’s enhanced API capability allows for integration with introducer systems, which not only makes for a seamless user experience but, importantly, there’s a direct reduction in the time to decision and time to settlement for the borrower. “Solana is that best-in-class originations platform. It offers a complete digital journey from enquiry through to settlement, with electronic identity verification, a higher level of credit decision automation, and
Solana program for our consumer products, we immediately sought to enhance the platform to accommodate our commercial products, delivering a streamlined experience for this important segment.” Tarnawski says approval rates are up because the platform provides greater transparency. Without Solana, the introducer would need to submit the application to get a decision. “Now they get real-time feedback as they enter customer data. By giving them a good indication as to whether the customer will be approved earlier in the process, they can then have a conversation about model choice or budget.”
PEPPER MONEY’S
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Lucas Tarnawski, Head of Product – Asset Finance, Pepper Money
a fully integrated eSignature solution enabled by OneSpan.” The platform launched at the end of 2020, with a 90% approval rate on the thousands of applications processed since then. With increases to auto approval rates it’s already proven its value to asset finance introducers. Here’s what Pepper Money’s broker partners had to say about the Solana platform: “Pepper Money has published an extensive set of APIs covering a wide range of scenarios. They have quickly become one of the most forward-thinking finance companies in our sector. – Neil Bennett, Director, Loans Unlimited “Pepper Money has provided us with an industry-leading suite of APIs. Scenarios range from application submission to status updates, document generation and settlements.” – Ben Needle, Managing Director, Bizi Loans
“We love Pepper’s suite of industry-leading APIs. They allow us to process most scenarios from within our own systems, spending less time on rekeying information and more time with customers.” – Greg Bellchambers, Head of Digital, Fintelligence “Solana is a best-in-class origination system for consumer and commercial products; we are spending less time on processing finance applications and more time talking to and assisting our customers” – James Keepkie, Director, OzCar Tarnawski says Pepper Money has an industry-leading suite of APIs. “Scenarios range from application submission to status updates, document generation, and settlements. Commercial introducers can expect similar enhancements to their finance experience, and Pepper Money is delighted to bring this technology solution to them between now and year-end. “Following the success of the
Enhanced APIs Solana removes a simple friction point for brokers and introducers because it uses APIs to fully integrate with their own system, so there’s less need to log into a third-party system. “Most introducers work with five or six financiers. They shouldn’t have to use five or six different systems,” says Tarnawski. “They should be able to submit applications, get status updates, make amendments, share and issue documents and send settlement packs from within their own platform.” Even the complexity of resubmitting application changes is being addressed, with Pepper Money building an API to handle application resubmission within the introducer’s system. From Q1 next year, payments will be made in real time too. In-house tech Pepper Money does a lot of the heavy lifting for others. For example, one introducer had just one employee looking after customer financing. By outsourcing the entire process to Pepper Money, the business increased its run rate from $30m a year to over $200m. “We just kept automating more aspects of their process, added more support flexibility, and drew on the strength of our own developers to build out their capacity,” says Tarnawski.
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Pallas Capital is proud to announce a new partnership with Credit Suisse. Our partnership will bring to the non-bank lending market an Australian-first offering, backed by a global institution. The new $530m fund will specifically cater to medium-sized CRE borrowers who are underserviced by the major banks.
“The fund will provide predevelopment, residual stock and investment asset loans between $1–10 million. The same turnaround times and flexibility that we are known for, but with a significantly lower cost of funding.” STEVE LAWRENCE Executive Director — Lending
Brokers can email lending@pallascapital.com.au to request a callback. pallascapital.com.au
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FE AT URES
COVER STORY
LENDI GROUP MERGER POWERS STRONG GROWTH Merging the Aussie and Lendi home loan brands is a mammoth task, but Lendi Group CEO David Hyman is up for the challenge. He discusses how the merger is progressing and the exciting benefits it will bring for brokers and their clients
been just a little over six months since the merger of Aussie Home Loans and Lendi Group was signed, and the new entity has been a hive of activity. Lendi Group CEO David Hyman now leads Australia’s biggest retail broker network, combining Aussie’s much-loved franchise group of more than 1,000 brokers with the cuttingedge technology behind Lendi and Domain Home Loans’ 200 brokers. “It’s been a busy and incredibly productive six months since we completed the merger transaction,” Hyman says. “We’ve not only brought our teams together, kicked off an ambitious and complex integration strategy, set out the five-year business plan, deployed platform and technology upgrades benefiting both Aussie and Lendi brokers, but we’ve also won awards, smashed records and grown the Lendi and Aussie brands. “It’s been a huge accomplishment by the whole team, particularly when you add a pandemic and multiple state lockdowns into the mix.” Hyman says FY21 ended with record performance across both Lendi and Aussie and more than $24bn in loan settlements. “This is an outstanding result and testament to the momentum in the group, which isn’t slowing down. Our results for the September quarter have us on track to come in well ahead of our FY22 target.” Aussie brokers will eventually operate on an Aussie-branded version of the Lendi technology platform. “The number one objective for the business is to get the platform Aussie-ready so we can migrate all the Aussie brokers and customers across,” Hyman says. “We’ll be doing that progressively over the next 12 to 15 months.” IT’S
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“The underlying platform and technology is the exising Lendi platform which today powers the Lendi brand and the Domain Home Loans brands. Once the platform experience has been built to also service the Aussie broker network and their unique businesses, then customers will engage with Aussie, with Lendi or with Domain separately, but there will be a single technology platform powering all of those experiences. “For Aussie brokers, they’ll continue to operate under the Aussie brand and with the unique serviceled proposition – they’ll just get the
“All of our activities are designed to close the gaps between the standards and benchmarks we have today and what is possible when the right technology is applied to solve problems for brokers and their customers.” This means simple things like freeing up time for brokers and customers by removing routine tasks and admin from their lives, Hyman says. “It means empowering customers with more choice and more control in how and when they engage in the home loan process. It means richer relationships and exchanges
“Our aim is to power brokers with the technology, data and systems that make them indispensable to customers and lenders” benefit of the platform technology and all that enables both for them and their customers.” Hyman says the merger business case was clear from the outset. “By combining Aussie’s iconic brand, strong distribution model and trusted relationships with proprietary Lendi technology and processes, the opportunity to supercharge the growth of our brands and drive greater investment in their market-leading capabilities is huge.” Benefits for brokers, customers Hyman says securing a property can be one of the most stressful and disjointed experiences Australians go through. “We know the system is large, fragmented and strewn with barriers. Lendi Group exists to change this.
between brokers and their clients. “Looking ahead, it means a future of property finance powered by seamless connections between customers, brokers, lenders, products and data.” Hyman says Lendi Group has already invested millions in proprietary processes and technology but is putting “even more resources and investment into solving problems for brokers and customers”. “Our head office team is made up of more than 600 specialists, experts, developers and engineers dedicated to powering growth and innovation across our network. “Our aim is to power our brokers with best-in-breed technology, data and systems that make them indispensable to customers and lenders.”
LENDI GROUP BY THE NUMBERS
225 stores and over 1,200 brokers
Australia’s number one home loan platform supported by a growing team of engineers
A head office team of over
600 specialists and experts supporting Aussie, Lendi and Domain Home Loans
A loan book in excess of $80bn Record performance by Lendi
and Aussie brands in FY21, with more than $24bn in settlements
Technology One tech platform feature Lendi Group is incredibly proud of is Approval Confidence. “This gives brokers and customers a real-time indication of whether their loan will be approved. We’ve got five lenders on the Approval Confidence panel, including ANZ, Bankwest and Adelaide Bank, and more in the pipeline. “As more lenders come on board, this is going to be a real game changer for the industry because it’s the precursor to on-demand home finance.” Approval Confidence is marketleading technology, Hyman says. Brokers can spend weeks learning their clients’ objectives and financial situations, looking at lenders’ serviceability spreadsheets or calling lender BDMs to come up with suitable loan options. But Lendi’s platform has all this information in structured data points as well as direct integrations with banks. Approval Confidence sends the data
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In partnership with
Turnaround times Slow loan discharge and processing times are a big issue, but not a new issue for brokers, customers and the industry, says Hyman. “We’ve been both lobbying lenders and working with industry bodies,” he says. “When it comes to discharge times, there’s a clear opportunity for regulators to step in and hold lenders to account. Last December, the ACCC’s home loan price inquiry report recommended all lenders be subject to a maximum time limit of 10 business days to complete the discharge process.” Hyman says this hasn’t happened, and there were times this year when it was taking up to 40 days for a lender to process a discharge. While this has now dropped to 15 to 20 days, “it is still an unjustified delay and cost for customers”. “With the right technology in place, we believe discharge processes could be standardised and completed in as little as two days.” Lendi Group aims to remove some of the processing barriers by using tools such as Approval Confidence.
David Hyman, CEO and co-founder, Lendi Group
to the banks and gets information back from their decisioning engines, which is converted into a score showing how likely the client is to be approved for a loan. “It’s one of the reasons why Lendi, from an experience perspective, is rated well above other brokers and why Lendi is able to deliver faster approvals, and more of them,” says Hyman. “When Aussie brokers are rolled onto the platform, they’ll get access to Approval Confidence as well, under the Aussie brand.” Lendi Group has already introduced highly effective tech upgrades into Aussie’s systems and is piloting process innovation that will deliver big benefits to Aussie brokers in the next few months. The Lendi platform will automate many routine, manual tasks for Aussie brokers.
“That frees up the broker to spend more time nurturing customer relationships. They can help more customers, more quickly.” But he says tech tools won’t replace the broker-customer relationship. “They are designed to enhance it. The broker-partnership mentality that sets Aussie apart from its competitors is not changing, and we continue to work closely with our broker representative groups, Voice of the Broker and Aussie Franchise Council, along with our top-tier Signature Platinum brokers, to develop best practices and improve efficiency.” Shared resources The two brands are already sharing best practices and leveraging complementary strengths across the group, Hyman says.
“An example of this is the work we’re doing on creating a single, combined and comprehensive lender panel that will be available to all brokers on platform, encompassing a ‘best of breed’ approach for the current Aussie and Lendi panels. “We’re looking at all the various customer segments that both the Aussie brand and Lendi brand serve today, and we’re determining a group lender panel, which will apply to both Aussie and Lendi. “Aussie’s lender panel will slightly expand – there’ll be some new lenders added into the mix – and Lendi’s lender panel will slightly contract.” Lendi Group has also set up a client solutions pilot that’s already enhancing the lodgement process, in terms of broker efficiency and quality assurance.
Growth strategy Hyman says the Lendi and Aussie merger has brought together two complementary but very different models. “The merger strategy is very much a growth strategy, which enables two things – one, using the technology to make our team more efficient so we can unlock growth faster, and two, having a killer proposition for brokers, meaning it’s attractive to join us, whether that’s through Aussie, Lendi or Domain.” The Lendi Group is “100% committed to helping our brokers grow their businesses”, Hyman says. It also offers brokers more entry pathways and options once they are in, including the opportunity to work as a salaried employee (Lendi and Domain), a mobile broker (Lendi and Aussie) or a franchise broker (Aussie). Hyman says as Australia emerges from the pandemic, consumer confidence is high, and there’s still a lot of momentum in the housing market. “There’s also a phenomenal amount of untapped opportunity in the refi market, and the building sense of anticipation that the RBA will raise rates, together with the recent movements we’ve seen on fixed rate offers, may well shake borrowers out of complacency. “Competition between brokers will heat up, and this is where innovation and agility will be key to sustaining performance.” AB www.brokernews.com.au
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FE AT URES
BUSINESS LENDING
LONGER-TERM ANZ LOANS HELP BOOST BUSINESS ANZ knows that small to medium-sized businesses are an essential part of the Australian economy. The major bank has supported SMEs throughout COVID and has now doubled the loan term for its ANZ Business Loan from 15 to 30 years for amounts less than $3m coronavirus pandemic has been extremely tough on Australia’s small businesses, but with the support of their customers, federal and state governments and lenders such as ANZ, many have survived and are now growing. ANZ’s general manager commercial broker, Ivan Mioc, and broker Joe Birmingham, a commercial and asset finance specialist at Azura Financial, talked to Australian Broker about the benefits of ANZ business loans. Mioc praised the role brokers had played in helping their small business clients through the pandemic. “Brokers have provided outstanding levels of support to their customers through what were probably the most challenging and unsettling times a business could face into,” says Mioc. “What makes this exceptional is this was done at a time when this challenge also applied to their own business.” When asked how brokers and their clients have been responding to ANZ business loans over the last 12 months, Mioc says: “At a time when it was not unreasonable to think that demand [for finance] would decrease, we have actually seen the opposite, especially in the up-to-$1m lending segment but also across all segments.” ANZ offered those SMEs that were struggling during COVID-19 a range of financial relief measures, as well as ongoing hardship support. “Small business customers had the option to apply for a range of measures, including up to 60 days’ repayment deferral on business loans, waiving merchant terminal rental fees for up to three months, and access to funds held in business notice term deposits and farm management deposit accounts without notice periods or break fees applying,” Mioc says. THE
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ANZ has also fully supported federal government stimulus and support packages, including the current Government SME Recovery Loan Scheme. This was expanded in October to support the recovery of SMEs that continue to deal with the economic impacts of COVID-19 Mioc says ANZ understands the importance customers place on the service their brokers provide to them, and the bank has been very pleased to receive great support from brokers. “Our analysis found that, in the 12 months leading to September 2021, ANZ wrote 28% more
more choices and greater flexibility, which may assist them to run and grow their businesses,” Mioc says. “The longer term will usually result in a lower amount of principal being repaid in each regular repayment and the total amount of interest payable being higher than a shorter-term loan as a result of the longer loan term during which interest is paid.” Eligible customers may also take advantage of an interest-only period of up to 10 years when the total lending of the borrowing group is less than $3m and the loan term is between 20 and 30 years, subject to
“Extended loan terms give eligible customers more choices and greater flexibility, which may assist them to run and grow their business” Ivan Mioc, ANZ business loans for broker-introduced customers than in the same period the previous year and 21% more compared to the same period two years ago.” ANZ business loan features “At ANZ, we believe small businesses are integral to helping communities thrive,” Mioc says. “They are a massive driver for employment growth and give people freedom and agency to pursue their passion.” ANZ has recently extended the maximum loan term for eligible customers on the ANZ Business Loan when the total lending of the borrowing group is less than $3m from 15 years to up to 30 years when secured by suitable commercial property. “Extended loan terms and interestonly terms give eligible customers
ANZ’s credit assessment criteria. ANZ also offers an ANZ Business Offset Account which can help customers save on interest. (Eligibility criteria, terms, conditions, fees and charges apply.) Mioc says extending the maximum loan term on an ANZ business loan is one way that ANZ is helping eligible businesses access financing solutions that may help them rebound after the pandemic. “It may help them keep their business moving or take advantage of growth opportunities which may have previously been out of reach.” Businesses thinking of buying commercial property or refinancing their commercial property loan could be attracted to this extended loan term. “It can be used for a range of business purposes, provided these are
IMPORTANT INFORMATION ON ANZ BUSINESS LOAN TERM OF UP TO 30 YEARS 1. Excludes Business Mortgage Loans and Agri Finance Loans (both no longer offered) and Asset Finance loans 2. Eligibility and credit criteria apply, including: total credit facilities with ANZ, including new loan funds as part of the application and any credit facilities held by related entities, must be less than $3m; loan purpose acceptable to ANZ; and provision of security acceptable to ANZ, meeting ANZ’s security requirements including minimum security coverage and suitable security location 3. A longer loan term will usually result in: a lower amount of principal being repaid in each regular repayment; and the total amount of interest payable being higher than a shorter-term loan as a result of the longer loan term during which interest is paid All applications for credit are subject to ANZ’s normal credit approval criteria. Terms and conditions, fees and charges and standard minimum loan amounts apply. ANZ recommends applicants read the applicable terms and conditions before acquiring the product.
acceptable to ANZ and the product is suitable in the circumstances. The loan must have an appropriate purpose to justify a longer loan term.” Broker access, diversification When it comes to brokers wanting to secure ANZ business loans for their clients, Mioc says ANZ understands that brokers have choice when it comes to recommending a
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In partnership with
Ivan Mioc, general manager commercial broker, ANZ
bank for a business customer. “We pride ourselves on being easy to do business with, as brokers have direct access to frontline lenders they can work with, and we encourage brokers to actively engage with their ANZ bankers and broker account managers.” Aggregators are encouraging brokers to diversify their income base, and ANZ has always supported broker diversification, Mioc says. “As brokers become more confident and competent in commercial, they further diversify into other commercial lending opportunities. “We know that this can be a challenging transition, which is why the role of our ANZ broker managers and bankers is so crucial in helping our brokers and customers.” A proportion of ANZ homeowners are non-PAYG. “We want to support accredited brokers who want to provide holistic financial solutions to their customers regardless of whether it’s business or personal – it’s important we help support brokers and their customers,” says Mioc. Mortgage brokers who want to diversify into commercial property will need to gain a separate ANZ accreditation for commercial lending and asset finance and will need to be authorised to act for an ANZ-approved aggregator group.
Broker perspective Joe Birmingham is a commercial and asset finance specialist at Azura Financial, an independent brokerage based in Double Bay, Sydney. He worked for 10 years in various corporate and commercial banking roles, including at ANZ, before becoming a broker 18 months ago and working with business owners across a wide range of industries, as well as with commercial property investors. “ANZ usually get a shot at all of the trading business transactions that I look at,” says Birmingham. “I find they are especially strong on owner-occupied commercial property purchases and refinances, where they are often able to provide higher LVRs, great terms and very competitive pricing. “I’m lucky enough to have known the people I work with at ANZ Commercial for years – so I know that the service is always reliable and my clients will be well looked after.” Birmingham says the extension of ANZ business loan terms from 15 to 30 years affects serviceability and can significantly reduce the monthly repayments. “This will allow more clients to justify parting ways with their landlord and entering the commercial property market. Another significant difference this product makes is to a client’s cash flow,” he says.
Joe Birmingham, commercial and asset finance specialist, Azura Financial
“This [loan] will allow more clients to justify parting ways with their landlord and entering the commercial property market” Joe Birmingham, Azura Financial “The 30-year loan term has been really well received by mumand-dad business owners. Buying a commercial property can obviously be a daunting experience. This product brings the loan term – and often LVR – more in line with what clients are used to seeing on their home loans, and I really think this eases that burden psychologically.” Birmingham is happy with ANZ’s turnaround times on loans too. “The timeline on my most recent deal with ANZ was … I sent through a discussion paper summarising the deal on Monday and received indicative pricing and loan terms the same day. I then presented a number of options to the client, and they advised me to proceed with ANZ. Application forms and further financial information were provided by Thursday, and I had a credit-endorsed approval in hand by Tuesday morning.” Birmingham is really positive about business loan growth moving
forward and is hoping to see an “easing of the two-speed economy that has accompanied COVID”. “Businesses that thrived during lockdown will continue to grow and will require credit to do that. Those that did it tough will love being back open and will continue to turn to brokers to guide them towards the support on offer through the banks and federal government whilst they do.” AB The opinions or views contained in this article are not necessarily the opinions or views of the Australia and New Zealand Banking Group Limited ABN 11 005 357 522 and its related bodies corporate (together, the “ANZ Group”). The views express by Joe Birmingham are his own. The ANZ Group makes no representation and gives no warranty as to the accuracy, currency or completeness of these opinions or views. This content is provided for brokers only and is not for distribution to others, including customers or applicants for finance. Any advice does not take into account your personal needs, financial circumstances or objectives, and you should consider whether it is appropriate for you. www.brokernews.com.au
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FE AT URES
PROPERT Y FUNDING
CASH INJECTION FUELS PALLAS CAPITAL LENDING
Pallas Capital has settled more than $1.2bn in loans since 2016, and $820m of that total was in the last 12 months. The leading specialist property lender has just received a $530m funding boost from Credit Suisse, allowing it to offer more finance solutions to brokers and their clients PALLAS CAPITAL LOAN SOLUTIONS Pallas Funding Trust Trust set up by Pallas Capital through a $530m funding deal with Credit Suisse Funds to be used for predevelopment loans, residual stock loans and investment property loans Most loan amounts range from $1m to $10m Lower lending rates for borrowers Pallas Capital loans Five core loan types:
Commercial/SME Pre-development Construction Residual stock Vacant land Loan amounts range from $1m to $50m
Secured against non-specialised property assets
Detailed due diligence on
the borrower Realistic and multifaceted exit strategy Active management of all loans by Pallas Capital throughout the term
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an exciting time for the team at Pallas Capital, which has grown rapidly since its inception in December 2016. Specialising in commercial real estate debt, the non-bank lender has settled 181 loans and other funding structures with a total value exceeding $1.2bn. With 81 loans having been repaid, it has a current loan book of $808m across 100 transactions. Last year, Pallas Capital appointed former La Trobe Financial chief lending officer commercial Steve Lawrence as its executive director of lending, aiming to boost its loan book even further and bring its expanding portfolio of flexible loans to more brokers and borrowers across the nation. Pallas Capital offers five core lending products to quality borrowers seeking reliable and competitive funding for commercial and residential assets and development projects. The loan types include residual stock, commercial/SME, predevelopment, construction, and vacant land, with a preferred asset location of metropolitan Melbourne, Sydney, Brisbane, Canberra and Adelaide, as well as major regional areas on a case-by-case basis, for amounts generally ranging from $1m to $50m. They are secured against non-specialised property assets. Now Pallas Capital’s ability to provide trusted and flexible funding for commercial brokers and their clients will expand via a $530m injection from Credit Suisse, leading to the creation of the Pallas Funding Trust (PFT). Lawrence says PFT intends to lend this money on a range of pre-development loans, residual stock loans and investment property loans, with most of the loans in the $1m to $10m range. IT’S
PFT will target medium-sized CRE loan types and borrowers who are currently underserviced by the major banks. “This market segment, whilst underserviced at present, features substantial lending volumes, given that most commercial properties have a value range of $1m to $15m,” Lawrence says. “This is precisely where PFT has been designed to focus its lending business. In addition, the loan types that PFT has been designed to fund, such as value-add investment loans, residual stock and pre-development
“Pallas Capital’s loan book has grown in recent years at about 75% per year, even though our cost of funding has been relatively high,” says Lawrence. “We have achieved this by ‘speed to market’ and by offering loan terms that are flexible and commercially realistic. “PFT will have the same turnaround times and flexibility but a significantly lower cost of funding. By lending at lower rates to borrowers, we expect PFT will swiftly carve out a leading position in the CRE lending markets. I look forward to taking these loan
“By lending at lower rates, we expect Pallas Funding Trust will swiftly carve out a leading position in the CRE lending markets” Steve Lawrence, executive director of lending, Pallas Capital loans, are the loan types the banks have little appetite to fund.” Lawrence says while other non-bank lenders will compete with PFT, generally they are funded by retail or “high net worth” investors, and these investment flows can shrink quickly if sentiment deteriorates, as it did in the first COVID-19 lockdown in 2020, and a significant pool of CRE borrowers can be left without commercially attractive loan options. “With Credit Suisse as a funding partner, the PFT is protected from such pressures on liquidity and is well placed to continue lending through cycles that would sideline many of its competitors by virtue of their source of capital,” says Lawrence. He welcomes the introduction of PFT as a significant new lender.
opportunities to our established mortgage broker clients.” Although PFT will not undertake construction loans, these will continue to be offered through Pallas Capital, which is currently settling about $50m per month of new construction loans. In his role at Pallas Capital, Lawrence says his focus is on expanding the loan book rapidly, bringing high-quality service, great speed-to-market, and flexibility in assessing and delivering loans to a growing client base. “I have been in the banking, finance and property industries in Australia for almost 40 years, and I know that relationships are at the heart of success in this business and therefore in everything that I do,” Lawrence says.
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In partnership with
Matthew Paterson, director, Partnership Finance Group
“[Pallas Capital executive chairman] Patrick Keenan and Dan Gallen [chief investment officer] have a very compelling, ambitious and well-supported vision for Pallas Capital’s business, and it was an easy decision for me to become part of the team working to achieve this vision. “I look forward to continuing to build on my strong relationships in the Australian lending industry to drive positive outcomes for brokers and borrowers looking to take advantage of one of the most competitive real estate loan product ranges in the Australian market, supported by Pallas Capital’s robust lending strategy.” Gallen says Lawrence brings deep experience, trust and industry-leading relationships to Pallas Capital, and the team is thrilled to have him on board. “We knew that we needed the right person to lead Pallas Capital’s lending team, and Steve’s reputation in the industry was one we could not look past,” he says. Broker perspective Matthew Paterson is the director of Partnership Finance Group
(PFG), an independent commercial financial brokerage specialising in property finance transactions. PFG provides a range of finance options, including senior debt facilities for construction and investment loans, highly leveraged facilities, mezzanine debt, and equity finance solutions. It settled its first transaction with Pallas Capital in mid-2020, and the relationship has continued to grow, with PFG-originated deals recently passing $100m. “We advise a strong core of key clients and regularly settle over $500m per annum, with deal sizes that typically range between $20m to $60m and above,” Paterson says. “I originally met Dan Gallen some years ago. But my relationship with Pallas Capital really began with the appointment of Steve Lawrence, who I knew very well from his time at La Trobe Financial.” Paterson says PFG’s first deals with Pallas Capital occurred during last year’s lockdown, in an uncertain market. “The strong relationship I had with Steve, and the confidence I had in his ability to deliver,
Steve Lawrence, executive director of lending, Pallas Capital
“There are currently a lot of lenders; however, I find Pallas Capital is the most flexible and commercial to work with” Matthew Paterson, director, Partnership Finance Group gave me comfort to recommend Pallas Capital to my clients.” Pallas Capital always offers solutions and options, says Paterson. “I find I’m able to work best ‘outside the box’ with Pallas Capital, certainly more than with other lenders in the market. There are currently a lot of lenders, so you have plenty of choice. However, I find Pallas Capital is the most flexible and commercial to work with. “Every deal is different in its own way and never typically fits within the box of a lender’s mandate. This is where I’m able to present a scenario to Pallas Capital, identify the ‘issue’ and come up with a solution that benefits all parties.” Paterson says settling more than $100m in transactions with Pallas Capital gives PFG confidence.
“It allows us to originate further transactions and opportunities to present to Pallas, knowing they will deliver on the terms we’ve sold to our client. This ultimately means we’re growing our business in partnership with our clients, and with Pallas Capital.” Paterson says PFG’s success is based on strong relationships with lenders and clients. “We’ve dedicated a lot of time and energy to developing these, and it’s seen us build deep levels of trust with our clients. Whenever I present an opportunity from Pallas Capital, they can always be certain the final approval will reflect the original indicative proposal. “These three words best describe Pallas Capital: reliable, commercial, certainty.” AB www.brokernews.com.au
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OPENING DOORS TOGETHER We’re working with you to open doors for more Aussies. westpac.com.au/brokers
Things you should know: © Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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In partnership with
SPECIAL REPORT
FAST BROKERAGES
Australian Broker puts the spotlight on the nation’s fastest-growing brokerages that have thrived during the pandemic, achieving over 30% growth in combined loan revenue and settlement volume
CONTENTS
PAGE
Feature article .......................................................... 22 Sponsor’s message ................................................. 23 2021 Fast Brokerages and Fast Starters ............... 25
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SPECIAL REPORT
FAST BROKERAGES 2021
CUSTOMER SATISFACTION DRIVES BROKER SUCCESS almost two years now, the mortgage finance industry has been shaken by an all-encompassing health crisis that has affected how brokers do business, as well as the economy that underpins their success. COVID-19 has had a massive impact on the property market, but instead of causing a decline, it has pumped up prices as many Austalians have rushed to purchase homes due to a ‘fear of missing out’, or FOMO. FOR
knowledge to assist homeowners and businesses in securing the best loans for their needs. There is a growing desire among consumers to use the services of brokers to help them purchase properties, or refinance, or fund their businesses. According to the MFAA’s latest Industry Intelligence Service, 12th Edition report, the broker channel settled $122.81bn in residential home loans in the six months from 1 October 2020 to 31 March
“This is our first award from the industry. It’s humbling to get the recognition, and we are grateful to our customers”
METHODOLOGY Australian Broker invited submissions for its Fast Brokerages awards on 31 August 2021 as the publication sought to recognise brokerages across the country that did not just weather the COVID-19 storm but actively thrived. The research team asked brokerages to list their revenue totals and settlement volumes for the 2019/20 and 2020/21 financial years, in addition to other growth milestones they wanted to highlight. They then evaluated the nominations received to determine which brokerages experienced standout growth. The 2021 Fast Brokerages awards are given to brokerages that achieved more than 30% growth in combined revenue and settlement volume. A total of 46 brokerages made the final list of Fast Brokerages this year. Australian Broker also highlights 13 brokerages as Fast Starters that have been in business for three years or less, making their mark on the mortgage landscape. These brokerages confirmed their resilience and cemented their strong positions in the Australian mortgage industry. For the full list of this year’s Fast Brokerages and Fast Starters, see page 25.
Rishi Bhatia, principal, KRIA Mortgage Managers Record-low interest rates and the work-from-home phenomenon have also encouraged plenty of renovations and refinances. Brokers have taken up new technology and ways of communicating and shown their resilience and ability to adapt to a challenging environment. Mortgage and commercial finance brokers have the skills and
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2021, the highest value seen in any six-month period since the MFAA began reporting in 2015, and a rise of 24.4% year-on-year. Mortgage brokers facilitated 57.5% of all residential home loans in 2021, the second-highest figure for a March quarter. They are also increasingly turning to commercial loans: the value of commercial loans settled by mortgage brokers reached its
46
13
Fast Brokerage winners
Fast Brokerage winners that are Fast Starters
> 80
Number of nominations received
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FROM THE SPONSOR
Warren Shaw, head of broker distribution
On behalf of the Westpac Group, we would like to congratulate the 2021 most successful brokerages. This is a great honour that recognises high-performing brokers and their contributions to our industry and communities. Brokers have played a key role in this year’s homebuying journey. Australians
highest-ever value, breaking through the $10bn mark for the first time, at $10.27bn, a 5.94% rise year-on-year. Australian Broker set out to discover Australia’s fastest-growing mortgage brokerages for its Fast Brokerages awards. The research team invited brokerages to nominate themselves and detail their revenue and loan settlement growth between FY20 and FY21. They then selected 46 winners based on brokerages with more than 30% growth in combined revenue and settlement volume, and other achievements. Within this list, the team also highlighted Fast Starters – brokerages that are three years old or less. Australian Broker spoke to a few of the Fast Brokerages winners. Rishi Bhatia, who runs KRIA Mortgage Managers in Templestowe, Melbourne, says being named a 2021 Fast Brokerage is a significant achievement. “Extremely ecstatic to be recognised, and I want to acknowledge the support of my team and of outsource Financial,” says Bhatia. “This is our first award from the industry. It’s humbling to get the recognition, and we are grateful to our customers who keep coming back and referring us to their friends and family. We are a single broker firm with a small team of two. One new broker is joining
trust and value the independent service and advice, and during these times that bond is being strengthened as customers look to brokers to help them navigate an even more complex landscape of choice. Westpac appreciates the contribution brokers make to help open doors for more Australians. Well
the team in December 2021.” Bhatia says his brokerage’s rapid growth has been the result of word-of-mouth referrals. “The main reason customers refer us to their network is because we go that extra mile to listen to them and guide them to success. We are genuinely happy to see them succeed. I believe that if customers are happy, they will tell their close networks, but if they are not, they will tell everybody. “We are happy to continue our organic growth, always focusing on our customers’ best interest.”
done to these brokers for their significant achievement, and we wish them continued success.
Ben Magnus says the team is very humbled by the recognition, which will drive the success of Empower Wealth as the brokerage continues to grow. “This award recognises the hard work the team have put in during the pandemic, which is when we embarked on our accelerated growth strategy,” Magnus says. “We focused our energy on building a Broker Academy and training our support staff to then transition them into brokers. It’s been the best investment we could have made. Look after your people
“The main reason customers refer us to their network is because we go that extra mile to listen to them and guide them to success” Ben Magnus, head of mortgage broking, Empower Wealth Melbourne-based Empower Wealth, which aggregates with AFG, is riding a wave of success, winning a Fast Brokerages award just a month after being named Resimac Brokerage of the Year – Diversification at the 2021 Australian Mortgage Awards. Head of mortgage broking
and they will look after your clients.” “Focus, determination and backing ourselves is the foundation for our success over the past 12 months. “We have a strong marketing strategy that’s relevant to the current position of the property market, and this attracts clients to us – the diversified business services we offer
also mean we have a constant stream of engaged clients.” A number of other AFG-affiliated brokerages have been named Fast Brokerages, including Base Home Loans and Action Finance Mortgage Solutions, both highlighted in the Fast Starters list. Karen Hall has been a broker for 15 years. She started Action Finance Mortgage Solutions in Mackay, Queensland, in 2018 as a solo-broker mobile lending service. Her first employee started in July 2019. They moved into an office in November, and there are now four full-time and two casual team members. Hall says the team is excited and thankful to receive a Fast Brokerage award, and it’s “lovely to receive recognition for our hard work and dedication to customers”. “We are very fortunate to be part of a community that is very supportive of local business, so this is a big thank you to those who have contributed to our growth. “Purchasing a home can sometimes be a daunting and overwhelming experience. Our approach is to guide and navigate our customers through the enormous amount of information available and to provide a no-fuss, honest and efficient experience.” AFG head of sales and distribution Chris Slater
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SPECIAL REPORT
FAST BROKERAGES 2021
YOY REVENUE AND SETTLEMENT GROWTH OF 10 FASTEST-GROWING BROKERAGES, FY21
Abbas Khorakiwala and Priyank Dubey – Loan Market
6,255% 2,443%
Capital for Castles Hannah Chen – Loan Market
601%
Absolut Financial
546% 415%
Nathan Hawes – Loan Market
299%
Boss Money Sarah Holder – Loan Market
267%
Lend Perspective
239%
KRIA Mortgage Managers
209%
congratulated all the winners. He says for 27 years AFG has passionately supported some of the industry’s best in their quest to become successful. “We are delighted that many of the best businesses in Australia
“Our analytics, marketing, flexible commission systems and technology, combined with our financial strength, transparency, our on-the-ground support and our ability to keep them safe around compliance and cyber risk, are some
“We are very fortunate to be part of a community that is very supportive of local business” Karen Hall, Action Finance Mortgage Solutions today choose AFG as their partner, and I think it shows we know how to help them get there,” Slater says. “Our brokers are entrepreneurial at heart and are continually looking to improve how they win, onboard and serve more customers.
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Kirsty Dunphey, director, Up Loans
311%
MoneyQuest South Yarra
of the reasons our brokers prosper.” Up Loans, which aggregates with Choice, opened seven years ago in Launceston, Tasmania, with two brokers and two other staff members. “We were ex-real estate agents with no finance background,” says
“To come from a small state in a regional area and to be experiencing such fast growth is epic for us”
Up Loans director Kirsty Dunphey. “Since then we’ve grown to a team of 14 with four brokers. We have one commercial specialist and two, including myself, who are resi specialists, and one all-rounder doing car loans, personal loans and residential.” Dunphey says the team are “over the moon” to receive a Fast Brokerage award. “To come from a small state in a regional area and to be experiencing such fast growth is epic for us, and we’re really proud to show what a team of passionate female brokers in a tiny state can do.” What sets Up Loans apart is client communication. “We want to exceed our client’s expectations – if they’re asking us where a file is at, we’re failing. It’s about recognising that we’re part of one of the biggest journeys – financial and emotional – our
clients will go on in their lives, and respecting the magnitude of that and creating an experience that’ll make them want to tell their friends and family.” Tom Uhlich was an Aussie Home Loans franchise broker for 10 years but decided to set up his own Brisbane brokerage, Boss Money, in December 2015. “As I have an accountant background, my main market is self-employed, investors and more of the high-net-worth clients,” Uhlich says. He describes the Fast Brokerage award as “totally amazing”. “I have put a lot of time and effort into the business and kept refining it as the market has been changing – more emphasis on making it more digital and less old-school, and I’m so excited it has paid off. “My partner, Summer, joined the business over 12 months ago, which helped me push the button on taking it to another level. We organised VAs to run the back office, which has freed up our time to do what we love: looking after clients and marketing. “Finsure has been amazing. We met with other aggregators in the industry, and while some were bigger and had fancy presentations, they have delivered in all areas.”
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FAST BROKERAGES 2021 Absolut Financial
Loan Market Ellenbrook
Lend Perspective
Paul Hixon – Loan Market
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Simple Easy Finance
Boss Money
Lisa Bridgett – Loan Market
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22/11/2021 11:08:18 am
DATA
RE AL ESTATE MARKET ANALYSIS
WHERE MARKETS SIT ON CURRENT PROPERTY CLOCK
Michael Matusik has over 30 years’ experience in property research and project advice. He outlines how a useful tool called the property clock shows what’s happening in the market
property clock is an often-used yet simple tool that displays where select markets are positioned in the housing cycle. I have been using my version of the property clock for close to three decades and have found it’s an effective way to display the comparative heat in the housing market. Most people can understand the clock, and it’s a tool worth incorporating in a discussion about the housing market. There are four phases in the housing cycle: recovery, upswing, downturn and stagnation. The market is rising between the recovery and upswing phases; it peaks between upswing and downturn, declines between downturn and stagnation, and once it hits bottom it starts again. It is often best to think of the four phases of the housing cycle as seasons: recovery is spring, upswing is summer, downturn is autumn, and stagnation is winter. The temperatures relate to the housing market’s relative heat. But unlike the seasons, housing cycle phases are not equidistant in terms of time. Typically, an upswing and downturn are shorter than a recovery and stagnation. Also, when a market significantly overheats, or is substantially oversupplied, during the upswing phase, then the following downturn can be sharp and the stagnation long. Sometimes a market will miss a cycle – which history suggests typically takes between seven and eight
RESIDENTIAL PROPERTY CLOCK
THE
Peak
Darwin, Melbourne, Perth, Sydney Bathurst, Dubbo, Launceston, Tamworth
Canberra, Hobart
Geelong, Central Coast (NSW)
Adelaide, Brisbane
Ballarat, Bendigo, Coffs Harbour, Gladstone, Gold Coast, Hervey Bay, Mackay, Newcastle, Rockhampton/Yeppoon, Sunshine Coast, Toowoomba, Townsville, Tweed/Northern NSW, Wollongong/Illawarra
Rising market
Upswing
Downturn
Recovery
Stagnation
Declining market
Bundaberg, Cairns
Bottom Source: Matusik, Nov 2021
Michael Matusik Director, Matusik Property Insights
years between peaks – as a result of the previous exuberance. The market positions depend on the ‘balance between supply and demand’, with demand exceeding supply during the recovery and upswing phases and the reverse happening during a downturn. Throughout stagnation the market is often more equally balanced between properties listed for sale and buyers. It’s also rare to see the housing market as congested around the upswing and recovery phases as shown in my current property clock. The last time the detached housing
markets were similarly positioned was between 1987 and 1989. And while economic conditions and policy responses were different in the late 1980s, there was very little price growth for a long time once the overheated market peaked in 1989. Next year looks much quieter on the housing market front, and I think calendar 2022 will be the start of a long slowdown in both price and rental growth, similar to what happened during much of the 1990s. To keep up to date with my weekly thoughts on the Australian housing market, visit matusik.com.au. AB
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PEOPLE
Have an interesting deal? Have a particularly difficult or interesting deal? Why not share it with us? Email:
antony.field@keymedia.com
BIG DEAL Last year, COVID-19 caused many construction lenders to retreat from the market. So Mark Hayes, director of Right Angle Group, turned to leading non-bank financier Trilogy Funds to provide a lending solution for his client’s residential apartment development THE FACTS
Client Melbourne-based property developer
Loan size $14.32m over 18 months
Goal Construction of a 39-apartment building
Location Benowa, Queensland
Aggregator Right Angle Group
Many construction lenders were not in the market at the time due to business uncertainty caused by COVID-19
THE SCENARIO
This deal entailed the equity release of approximately $233,000 and the subsequent construction of a low-rise residential apartment building comprising 39 apartments in Benowa, Queensland. I started engaging with the client, a Melbourne-based developer, in July 2020 during the height of the pandemic. In the loan submission, the client requested a loan for $14.32m over an 18-month term with an LVR of 65% of the gross realisable value, including GST. The development is predominantly investment-grade stock based on the building’s configuration, density, apartment gross floor areas, and its location on a four-lane arterial road. However, it benefits from a clear view of the Gold Coast Botanic Gardens and the Surfers Paradise skyline.
THE SOLUTION
When this deal arose in July 2020, it was difficult to tell what was going to happen next. This was evident across various levels, such as supply chains, the property market,
THE TAKEAWAYS
I am pleased we were able to provide the developers with a tailored solution at the height of a pandemic. At a time when it was easy to walk away or say no, Trilogy Funds was willing to work with us and provide the developer with a funding solution tailored to their needs. Patience and trust were key – we recognised that no credit success
Trilogy Funds was willing to work with us and provide the developer with a funding solution tailored to their needs
The plan had plenty of positives: The proposed project was geared towards a good-quality mid-market development The developers weren’t trying to ‘reinvent the wheel’ At the time of the loan settlement, 10 presales had already occurred at a combined total of $6m The challenges: The deal originated at the height of the first wave of the pandemic It was the Melbourne developer’s first project in Queensland The market ‘exit strategy’ was unclear at the time
Lender Mortgage fund managed by Trilogy Funds
highlighted the importance of obtaining up-to-date prices and tenders from builders. Securing project finance at the time was also challenging. However, I had worked with the team at Trilogy Funds for years, and this trusted relationship meant we were able to work closely and in ways that enabled us to respond proactively to the changing market. From what I experienced, Trilogy Funds was one of the only construction lenders writing loans throughout 2020. Trilogy Funds places value on broker relationships, so we applied a like-minded approach to the project. This deal settled close to Christmas 2020 to ensure the developer could kick off in the first weeks of 2021.
Mark Hayes Director, Right Angle Group
the economy, etc. It wasn’t until spring (Sept/Oct 2020) that we started to see a ‘new normal’ arise. With this new normal and with the developer residing in Melbourne, we knew it was important for us as the broker to make all third-party requirements as seamless as possible. We helped arrange the valuation and quantity surveyor processes and put forward options for project management and locally based tradespeople. Our goal was to integrate a team-based approach and what I call ‘operational equity’ – a challenge we often come across is ensuring developers have enough hands on deck. Another aspect we assisted with was ensuring the builder signed off on the project-build plan; we looked at the building budget and instigated construction cost mapping. There are many moving parts in the property market. Construction costs were and still are at a historic high, so we
would occur unless the project was well managed from a risk point of view. I pick up little nuances from every deal I instigate. Each can add a small or more significant layer to how you approach things the next time. I believe in the constant adding of process tweaks over time to grow more efficient in what you do on a day-to-day basis. Some of the keys to my successes: Forward thinking and process management to help ensure clients are ‘two to three steps ahead’ A unique and versatile operational skill set that goes beyond arranging debt and equity funding and covers value-adding functions in project sales and marketing, and cost delivery management An unrivalled ability to coordinate and manage multi-dynamic teams of professionals in and around the successful financial close of property development funding transactions. AB www.brokernews.com.au
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FE AT URES
OPINION
NEW YEAR WILL BRING GROWTH OPPORTUNITIES
2021 has been a challenging year for brokers and their clients. Gerald Foley, managing director of aggregator nMB, which is celebrating its 20th anniversary, looks at how brokers and aggregators should tackle 2022 return to lockdowns. This will quickly be reflected in business and consumer confidence being restored. This will be great for the economy; however, borrowers may quickly fall into spending habits that could impact their borrowing ability as they splurge their way out of lockdowns.
the globe, the impacts of COVID have been felt throughout every aspect of day-to-day life. The separation from family, friends, schooling and work colleagues has seen so many forced changes to the way we go about things. With 2021 coming to an end, now is a great to time to reflect on this year and what we might expect to see in 2022 as we move into the next version of ‘normal’. ACROSS
Property The property market will be interesting to watch in 2022. There are clear signs that the pace of growth is starting to slow, largely due to interest rates creeping up, lending restrictions being placed on banks (with non-banks possibly to follow later) and supply issues for new homes. With 2021 seeing national property price growth of around 20%, we can expect to this to drop back in 2022 to a still very respectable 8% to 10% range, particularly evident in the capital cities of
People The move to engaging via Zoom, Teams or one of the many other platforms quickly replaced the face-to-face engagement we all felt was critical to doing business. While you can’t beat face-to-face, what we have learned is that the convenience of finding 30 minutes to an hour to meet is easier when you can remove travelling time. Meeting online for business purposes has quickly moved from uncomfortable to convenient as everyone becomes more comfortable with this method of connecting. Changing expectations of staff wanting to work from home will need to be balanced with the needs of each business. To be able to provide a mix of work from office and work from home will be so important to obtain and retain staff. There will be challenges for many businesses to get their teams to return to the office. The important thing is to get them back in, then work out how some days of work from home can be managed. The businesses, especially SMEs, who get the balance right will become preferred employers. Economy The economic impact of COVID (directly and indirectly) will be felt for many years to come as business owners attempt to recover from lost revenue and increasing debt. As vaccination rates climb and restrictions become less palatable (as much for the voter pushback as medical grounds), we should not see a 30
in property values) and lenders reducing their borrowing capacity and incentives to switch. For brokers there will be many great opportunities to continue to grow their businesses, and no better time to maintain good contact with their customer bases. If COVID taught us only one thing, it’s that in troubled times relationships are called upon, not created. Building relationships must occur in good or calmer times, so that when the need for assistance presents, your broker is the immediate go-to person. Brokers and aggregators The number and size of M&A activity in 2021 caught many by surprise. A new year and fresh, post-COVID optimism will see many brokers look at the support and growth opportunities they have with their current aggregator.
If COVID taught us only one thing, it’s that in troubled times relationships are called upon, not created Sydney and Melbourne. Other pockets will likely provide some stronger upside, with any likelihood of negative growth still a few years away, if at all.
Gerald Foley Managing director, National Mortgage Brokers
Borrowing 2021 has been a landmark year for new borrowing and refinance opportunities. It has been almost a perfect storm with discretionary spending down, interest rates remaining at historic lows and lenders offering cashbacks and other incentives. And we can’t forget the FOMO set who just couldn’t miss out on getting into their next property. I expect in 2022 there will be some slowdown in lending – but still well above recent averages – with fewer refinance opportunities (in line with slower growth
A new year is always a good time to review current arrangements. Take some time over the break to list your priorities for the year ahead. Discuss them with your aggregator. If they are not aligned with your growth plans and able to support you, maybe it’s time to reconsider. And finally, we are coming off the back of unprecedented challenges and workloads over the past 18 months. Due to travel bans and a surging market, there has been little chance to stop and take a proper break. Now is the time to plan to rest and get ready for 2022. We can’t know what lies ahead, but we can all safely presume there will be speed humps and potholes along the way, and we will need to be ready for anything. AB
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02-13_N
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FE AT URES
SELF-MANAGED SUPER FUNDS
BOOMING SMSF SECTOR ENTICES BROKERS Self-managed super funds are an excellent, long-term source of income for brokers wanting to offer more to their clients and attract new borrowers. La Trobe Financial’s Cory Bannister and Thinktank’s Per Amundsen explain the benefits
passion for property and a desire to take control of their investments are driving the growth of SMSFs. Australian Broker asked Cory Bannister, senior vice president and chief lending officer at La Trobe Financial, and Thinktank director Per Amundsen about SMSF trends and how brokers can access this valuable market. The latest ATO figures, for the June 2021 quarter, show the number of SMSFs grew 4% from 574,775 in June 2020 to 597,500 in June 2021. The number of SMSF members is now well over 1.1 million. Bannister says the SMSF sector continues to grow year-on-year. “We expect the impact of the pandemic to cause a further increase in the number of SMSFs as many Australians begin to take greater self-interest in their investments, including superannuation, where many may question if they couldn’t do a better job,” says Bannister. “We believe this could lead to an increase in millennials setting up their own SMSF, following the trend observed in equity markets where millennial participation had increased over 100% in some platforms.” Amundsen agrees that SMSFs are becoming increasingly popular. “We are certainly seeing increased interest and steady growth in the SMSF sector as people look to real property as a source of yield and a reliable long-term investment,” he says. “Brokers have also been onto this trend, with more and more AUSTRALIANS’
32
diversifying into SMSF lending to satisfy demand from existing clients and new prospects.” Bannister says La Trobe Financial expects continued strong demand for light industrial property as the e-commerce and data storage industries grow and well-located middle- and outer-suburban commercial properties support work decentralisation. “We see the number of SMSFs investing in residential property increasing to capitalise on the
“We don’t foresee any drastic changes occurring once the pandemic ends,” he says. “The low interest rate environment has been more of a main factor for SMSFs to navigate from a return perspective but take advantage of when it comes to borrowing and LRBAs.” Regulatory changes Amundsen says the most recent SMSF rule changes were introduced on 1 July – which included increases in maximum contribution levels
“We expect the pandemic to cause a further increase in SMSFs as many Australians take greater self-interest in their investments” Cory Bannister, chief lending officer, La Trobe Financial healthy yield premiums and potential capital growth,” he says. COVID-19 impact Bannister says the pandemic has caused many people to take stock of their lives and re-evaluate their finances. “We expect to see more people looking at their super balances, particularly if they’ve had to dip into it for cash flow purposes. This could lead to a significant increase in the number of new SMSFs in the years ahead.” At Thinktank, Amundsen says SMSFs’ desire for finance or ability to borrow has not been overly impacted by COVID-19.
(both concessional and nonconcessional) and the increase in the maximum number of members allowed from four to six. “As all of the new changes will impact borrowing capacity and the ability to service loans, it’s important for brokers to be fully across any potential consequences for their clients,” Amundsen says. “Our relationship managers are here to help brokers work through these changes.” Bannister says increasing the number of SMSF members will create an opportunity for intergenerational SMSFs, with implications for lenders. “It will mean lenders will need
to look carefully at servicing and how to ensure that a loan is going to be serviced, with some members drawing a pension from the fund and some paying down a loan,” he says. For commercial SMSF loans, it could open up opportunities for multiple business partners as they would be able to increase the Superannuation Guarantee contributions from most commonly $50,000 to potentially $150,000 if all members made the maximum possible concessional contribution. This increases the income that can be used to service a loan substantially and opens up the maximum loan size. For residential SMSF loans, Bannister says it will increase the number of guarantors required. “For example, you could need six guarantors if you have a fund with six friends or colleagues, and you would need to evaluate six sets of income.” Diversification opportunities Bannister says the most obvious benefits for brokers diversifying into the SMSF market are in attracting and retaining clients, increasing revenue and improving business value. “SMSF loans have a longer ‘loan life’ than standard loans, so the recurring revenue SMSF loans provide is extremely attractive and efficient for brokers. But the understated and potentially most important benefit is revenue protection.” Bannister says accountants and financial advisers are the best source of regular referrals of quality clients to brokers.
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Per Amundsen, director, Thinktank
“They can also take comfort in knowing that the clients have been qualified, and deemed appropriate, to undertake borrowings under an SMSF structure.” La Trobe Financial recommends that brokers who want to offer SMSF loans undertake a relevant training program. “SMSF lending is not as complex as brokers tend to think. Any broker who has done a trust loan will find that an SMSF loan is very similar – an LRBA simply involves a trust within a trust.” Amundsen says as SMSF finance is particularly attractive to SMEs, offering this lending option is an ideal strategy that enables a broker to both look after and expand their client base. “It also spreads the risk profile by adding another income generation stream,” he says. “One of the key features SMSFs have over other investments is their tax-advantaged structure geared for maximising retirement savings. At Thinktank, we can also work with brokers to create bespoke lending
Cory Bannister, senior vice president and chief lending officer, La Trobe Financial
“One of the key features SMSFs have over other investments is their tax-advantaged structure geared for maximising retirement savings” Per Amundsen, director, Thinktank structures such as Unit Trust and Tenants in Common facilities.” Brokers wanting to diversify into SMSFs should do some training, and many of the industry associations and aggregators offer courses in SMSF lending, Amundsen says. “At Thinktank, we run a variety of education and accreditation sessions available online and in person. Please see our website for more details.” SMSF loan purposes Both commercial and residential property is attractive to SMSF trustees for different reasons, Amundsen says. ATO figures show that more money is invested in commercial property via SMSFs than
residential by about two to one. “One of the main differences is with commercial the property can be owner-occupied; this isn’t allowed in SMSFs for residential property.” Amundsen says this is known as “business real property”, and owning the commercial business premises within the SMSF creates great advantages, such as the ability for SMSF trustees to make “in specie” contributions. Refinancing an SMSF also offers significant opportunities, despite a common misconception that an SMSF can’t be refinanced. “Care just needs to be taken as to the amount of the loan being refinanced, as no equity may be
released other than the associated cost of the refinance.” Bannister says the most fundamental benefit of SMSF loans is that they allow a borrower to invest directly in residential or commercial property using funds accumulated in their super. “There may be some tax advantages, as interest and borrowing expenses are generally tax deductible, which can reduce the tax payable within the fund,” he says. However, La Trobe Financial strongly recommends financial advice is obtained first. One example of where advice should be sought is in setting up an SMSF for people who are self-employed and currently leasing their place of business. “If they hold adequate funds in their superannuation fund, it can often make good commercial sense for them to purchase their business premises through an SMSF.” Bannister says they can use cash flow from their business to pay their mortgage. AB www.brokernews.com.au
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PEOPLE
Aggregator AFG
IN THE HOT SEAT
Amber Linzner had her heart set on being a major bank BDM when she joined the finance industry but soon discovered the advantages of mortgage broking. She became a qualified broker 16 years ago and set up AKL Finance Group in 2012
How and why did you become a broker? When I started as a mortgage adviser’s personal A assistant at 25, my aim was to learn about the industry, gain experience and become a BDM for a major bank. Once I had been working for six months, I decided the mortgage adviser role had so many different aspects that excited me that I would make Amber Linzner, director and mortgage adviser, AKL Finance Group this my long-term career. From a young age I had always loved property and found myself reading property investment magazines and exploring ways I could purchase my first property. As I learnt more, I saw the opportunity to build my own business and create a life and future I reached out to several clients to check in and see how they were coping in which I could look after myself financially. and how they were being affected. We discussed lender support and options, and I connected them to the right people. I did have lots of conversations with my clients who’d had their work hours reduced about The proportion of female brokers has fallen to 25.8%. Q How can the industry attract more women? putting their mortgage, car and credit card payments on hold. The industry needs a clear pathway to becoming a broker. A We need to support new entrants financially and with education Q What’s the best career advice you and on-the-job experience, whether they are male or female. The biggest have received? hurdle to attracting more women is having a clear and supportive Feel the fear and do it anyway – that’s my motto. Career change and A growth pathway to becoming a broker, and talking about the reality of having can be scary but very rewarding. children before it happens and how you manage life and your business afterwards. If we can have these conversations with a new female Q What will drive business growth for brokers entrant and they can see how other women have managed this, I believe in 2022? it may assist in keeping women in mortgage broking long term. First home buyers and owner-occupiers will continue to drive growth A in 2022. Brokers who can assist clients with their recovery and growth after the lockdowns will have a client for life. Our 2022 is How did you cope with COVID lockdowns and look after Q your customer focused – we want to embrace new tech to stay connected to our clients? clients while ensuring we maintain a personal touch. We want to continue I didn’t like being locked down, but I did try to look at what I was A gaining rather than losing. I spent a lot of time with my husbandto improve our processes and what we do every day to ensure the customer journey is a stress-free and enjoyable experience. AB to-be and my son, exercised and ticked several items off my to-do list!
Q
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22/11/2021 3:53:46 pm
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Our LMI premium is currently waived, with no minimum income requirements, for eligible professional customers. For example, a medical practitioner who has an LVR of up to 95%* could save up to $36,000 based on an $800,000 home loan. Eligible Customers Include: Medical Practitioners, Specialists, Dental Practitioners, Optometrists, Chiropractors, Physiotherapists, Veterinarians, Lawyers, Accountants. The amount your customer could actually save depends on their circumstances, such as their profession, their loan amount and where their property is located.
ANZ Brokers * This LVR is for medical practitioners, specialists and dental practitioners who are existing ANZ lending customers (that have held an ANZ lending product for at least 6 months) with an owner occupier loan making principal and interest repayments. For other eligible customers, the LVR is up to 90%. Different LVRs may apply to other lending options, such as investment lending. Terms, conditions, fees, charges, and credit approvals and eligibility criteria apply to ANZ home loans. Please visit anz.com.au/promo/broker for the offer terms and conditions, including how to verify customers’ qualification/registration. © Australia and New Zealand Banking Group Limited (ANZ) 2020. ABN 11 005 357 522. Australian credit licence number 234527. Item No. 97528C 08.2021 WX248035
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