Mortgage Professional Australia magazine Issue 10.4 by Key Media

www.brokernews.com.au issue 10.04

Diversify and be more things to more people

Skip all the red tape and paperwork

Just two to three deals more per year can provide you with $20,000

FRANCHISE BEST PRACTIcE: Picking the best money-makers

VOW AGGREGATION WHATâ&#x20AC;&#x2122;S IN IT FOR YOU

Equipment leasing keeps your clients from leaving

winning back clients industry expert shows you how

Editor’s letter

Friends close, clients closer

issue

10. 04

In the last 18 months, as the market relentlessly continued to contract, diversification became one of the most frequently used words in the industry. We asked a range of service providers to nominate those brokers they consider to be the industry’s diversification heroes, then we asked the brokers to tell us what impact having an additional source of income has had on their business. The results were unanimous: not only did the added revenue fortify their balance sheets, but (and perhaps even more importantly) the additional service offering fortified them against their competition. A client in the hand is worth two in the bush. Diversification makes sound business sense. Having a broader range of products to take to the market ultimately reduces commercial risk. And although the worst of the GFC is behind us, having a bit of income security is always a smart thing to do. In many cases diversification means acquiring new skills and accreditations, and even setting up fresh networking paths. But, like many of our heroes have pointed out, if it was easy to do everyone would be doing it. Remember too that markets move in cycles, so now, as our economy moves into a strong period of recovery, is the best time to make that move. Make the effort; the investment now will pay dividends later.

Tim Neary Editor

MPA 2.0 Our multimedia edition features on-camera interviews with the industry’s biggest players. Visit Brokernews. com.au/MPA to hear their thoughts on the hottest issues facing mortgage brokers.

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contents

cover story

43 franchising A brokerâ&#x20AC;&#x2122;s buying guide

28 Diversification Heroes: Early adaptors, these brokers are already reaping the rewards of securing additional sources of income and serving as examples to others

10. 04 issue

Look for extras on Broker News TV. On-camera interviews with:

Lisa Montgomery On French champagne, moving to the big city and reigniting the nonbank lending sector www.brokernews.com.au

Iggy Pintado On networking online, and going global

EDuCATion

CONFLICT RESOLUTION

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contents

Features 10 A day in the life of… Garry Driscoll 14 Regaining customers – in the wake of the GFC 23 Social media: help or hindrance? 53 Vow aggregation: CEO Jeff Zulman on balancing competition with partnerships 61 Disengaged workers– the repercussions for business as well as the individual

MPA LENDER 56 News: A review of news in the world of non-bank lending and mortgage management. 58 Business profile: Oxford Funding

PUBLISHER Justin Kennedy DIRECTOR Claire Preen REGIONAL MANAGING EDITOR George Walmsley

DESIGNERS Paul Mansfield Lucila Lamas SALES MANAGER Rajan Khatak Account MANAGER Simon Kerslake

EDITOR Tim Neary

HR MANAGER Julia Bookallil

PRODUCTION EDITORS Carolin Wun Moira Daniels Jennifer Cross

TRAFFIC MANAGER Stacey Rudd

DESIGN MANAGER Jacqui Alexander

PROFILES 16 Leaders: Vow Aggregation’s Jeff Zulman 20 Broker: Jeremy Fisher

LIFESTYLE 64 My favourite things: David O’Toole

REGULARS

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as MPA magazine can accept no responsibility for loss

6 News review 10 News analysis

10. 04 issue

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This magazine is printed on paper produced from 100% sustainable forestry, grown and managed specifically for the paper pulp industry

News

Government & Regulation

ING changes mortgage conversion rate

149% The increase in applications at Harcourts Financial Services since the beginning of the year

Taking a step that will provide an

increased and immediate reward for brokers, ING Direct has re-jigged its conversion rate calculation. The move comes following consultation with aggregators and ING’s broker network, the Mark Woolnough bank said. Under the current conversion model, applications over a six-month period are included in the conversion rate. This means that if a broker has a bad month or two, they currently carry this legacy for the remaining months. “Under the new model, the legacy of these bad months will extinguish quicker than the previous model and therefore won’t have such a long-lasting effect on a broker’s conversion rate,” said ING head of broker sales Mark Woolnough. The new conversion criteria and calculations will come into effect for applications received from 1 April and for commission payments beginning 1 October.

Regulation to weed out the cowboys: HFS The impending Credit Licensing regulation is a significant step for the industry and one that will improve broker credibility, according to Harcourts Financial Services (HFS) CEO Andy Graham. “I see this new regulation as a real positive for our business and will assist in building the professionalism of our industry,” Graham said. “It will weed out the cowboys and underachievers from the dedicated industry participants, as well as improving our positioning and credibility in the marketplace.” Graham is celebrating a bumper year for his division of the Harcourts real estate group and has announced plans to add 25 mortgage consultants to the base of 45 currently working for HFS. He said monthly written applications were up 149% since the start of the year and that he aimed to increase the number of mortgage consultants “around the country” from 45 to 70 over the next 12 months. “The opportunity that arises from the Harcourts Real Estate Gateway, coupled with our strong focus to add some real value to the client’s property transaction, gives our brokers an ideal scenario to build a significant business,” he said.

Electronic valuation tool to improve processing, reduce risk Hometrack has come up

with a new desktop valuation tool, Hometrack Valuer, which promises to speed up processing times, cut back the need for onsite inspections and reduce risk to lenders. It works by fusing a range of information services to provide valuers with an online application, allowing them to view a property from multiple angles, measure dwelling dimensions, compare sales history and attributes, and complete a report from their office. Hometrack CEO Brendan Darcy said escalations from offsite to expensive onsite valuations remained a “continual challenge” for lenders due to lack of information. “Onsite valuations also add significant time to the valuation process.” The new service claims to cover every residential property in Australia.

CBACM1737_E.pdf

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23/03/10,

1:15

Lender of the Year two years in a row. We couldn’t have done it without you. The Commonwealth Bank has been voted MFAA Lender of the Year 2010 by those who know – namely, you. Across a wide variety of criteria, including best product offering, best loan approval process, best overall support and more, we came out on top for the second year in a row. Of course, we couldn’t have done it without you. Thank you for your support and continued business partnership.

Important information: The Commonwealth Bank of Australia is the MFAA Excellence Awards Lender of the Year – 2010. Commonwealth Bank of Australia ABN 48 123 123 124. CBACM1737_E

News

property

Investors attracted to improved property returns: AFG After the summer holiday lull,

property investors have returned to the market in droves, according to the recent AFG Mortgage Index. The report revealed 34.1% of all mortgages arranged Mark Hewitt nationally for February 2010 were for property investors – 25% up on the August 2009 figure. Investor activity was particularly high in NSW (38.5%), VIC (37.2%) and SA (37.6%). It was lowest in WA and QLD, but at nearly 30% in both states still well ahead of August’s national figure. Investors are now the driving force in the market, encouraged by rising property prices, said AFG’s general manager for sales and operations Mark Hewitt. “Investor confidence has been riding high for several months but we hadn’t been expecting February’s figures to be as strong as this,” Hewitt said. Furthermore, the AFG data showed the market share of second-tier banks continues to strengthen, with the sector accounting for 17% of all new loans. This is up more than 100% on the same period last year. The data also shows that first homebuyers continue to leave the market. Loans arranged for this group fell to 11.3% in February – other than in NSW where the figure grew to 16.2%.

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The value of security held against residential property in Australia

Housing affordability back to pre-GFC levels

$3.5

Flagging a renewed demand for the services of

trillion

brokers, a report has shown the home price-toincome ratio has returned to pre-GFC levels. Rismark’s latest Australian housing affordability index estimates that home prices are 4.6 times higher than disposable household income. This is only slightly higher than the March 2003 figure of 4.4 times. “During the GFC, Australia’s average home price-to-income ratio fell to a low of 3.9 as dwelling prices declined while household incomes remained surprisingly stable,” Rismark MD Christopher Joye said. “However, growth in dwelling prices since the start of 2009 has seen the ratio of prices-to-incomes restored.” Joye added the findings dismissed claims of the home prices-to-income ratio being up as high as eight times. They implied too that house prices are not as unaffordable as is commonly presumed. “Given there’s around $1trn of mortgage debt outstanding in Australia, which is secured against $3.5trn of residential property, the gearing is actually less than 30%,” he said.

Rates close to tipping point for first homebuyers With interest rates already on the way up, a further increase of just 2% could mean broken dreams for many would-be first homebuyers, according to the 2010 Mortgage Choice First Homebuyers Survey. According to senior corporate affairs manager Kristy Sheppard, “a significant proportion (28%) say they’ll back out of buying if rates increase by up to two percentage points”. This year’s survey showed 32% of respondents plan on buying their first property on their own, compared to 28% last year. This has been cited as a possible reason for small rate rises having a big impact on the willingness of buyers to take the plunge.

News analysis

Price recovery to lure investors Rebounding property prices indicate an active year ahead for investors, and brokers will be keen to know where the good deals are to be found. John McGrath’s market predictions for 2010 help the guesswork

John McGrath

Key findings McGrath market predictions + Property days on market tightens to 24, from 38 + CBD/beaches proximity trend continues + Prestige bounce-back continues + Middle and upper brackets should increase + $25k–30k per square metre is benchmark for luxury apartments + Stamp duty discount extended

ince investors can be the difference between a boom and a normal market, smarterworking brokers might be interested in checking out McGrath Real Estate’s recently released autumn report before signing off on their 2010 strategy documents. The first piece of encouraging news is the ‘auction days on market’ statistic, tightening to 24 days in the closing period last year prior to Christmas. “Against 38 days at the same time last year, this is about as low as the market ever goes,” said McGrath Real Estate CEO John McGrath. Good news indeed, as it signifies the readiness of buyers to commit to quality properties. “The trend of wanting to buy close to the CBD or near Sydney’s beaches continues with a significant amount of enquiry from our buyer database looking in those regions,” said McGrath. The prestige bounce back continues too, with Sydney’s upper end growing faster in 2009 than the lower end – despite the recent first homebuyer stimulus. McGrath estimates the recovery to likely be complete by mid-year. “So now is the last chance [for upgraders to get into] homes worth $3m-plus at a discount to 2007 prices,” he said. In 2010, the middle and upper brackets should increase as the economy strengthens and executive bonuses reappear. Here McGrath expects to see the $1.5m-$3m range start to increase strongly. “In 2008/09 we saw executive bonuses that were often the catalyst for property price pressures virtually disappearing. The suburbs that were home to a large percentage of Sydney’s finance and banking executives suffered tremendously from a lack of buyers and an oversupply of property for sale. This will reverse quickly as buyers look to take advantage of the tail end of the GFC and upgrade before the expected market price rises take place,” he said. Baby Boomers The Baby Boomer appetite for quality apartments close to the city and beaches is not expected to

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subside. McGrath is predicting this to force values upward “for the best located apartments in the short and medium term, as buyers fight to secure the best locations in a city with rapidly diminishing development opportunities in prime lifestyle locations”. Houses in great locations will continue to be popular. It is fair to say apartments have narrowed the gap over the past 10 years but land in prime locations will always be sought after. “I expect we’ll see a significant surge in demand for houses over the next five years as young and wealthy executive families in the 35–40 age bracket opt for land over strata airspace,” said McGrath. The return of investors will contribute significantly to strong buyer demand in 2010. “Investors can be the difference between a boom and a normal market. Owner-occupiers are constantly turning over property as their lifestyles change, whereas investors came in and out of the market depending on their investment criteria.” Although the share market has recovered significantly, investors learned a valuable lesson on asset diversification during the GFC, with high rental yields the saving grace for many investors in 2009. Furthermore, McGrath feels that investor activity will replace any decline in first homebuyer activity this year. “We’re already seeing through the AFG Mortgage Index strong indications, with 34% of loan approvals to investors in December 2009 against 28% in February 2009.” Also, McGrath disagrees with the view that there will be a mass pullback in first homebuying in 2010. Indeed, he said he has seen very little drop-off in the level of first homebuyer activity since the boost was removed. McGrath predicts gross rental yields to continue at around 5% for the remainder of the year. “Just as I expect property prices to rise, so too will rents as population growth and a slight decline in first homebuying push up rental demand,” he said. MPA

Column

A day in the life of…

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News analysis

Rates up, customers down? Will rising rates dampen business for brokers? MPA finds out

Michelle Coleman and Andrew Brumby

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he question about rate rises no longer seems to be ‘if’ but ‘when’. The Reserve Bank of Australia signalled its intention to lift rates by 25 basis points three more times this year in its quarterly Statement on Monetary Policy, issued in February. ‘’The cash rate is expected [by the market] to reach around 4.5% by the end of the year. “Looking forward, if economic conditions gradually strengthen as expected, it is likely that monetary policy will need to be adjusted further over time to ensure that inflation remains consistent with the target over the medium term.” The report expanded on the board’s earlier meeting statement which explained its decision to leave the rate at 3.75%. While the decision to leave rates alone shocked the market, the board left no uncertainty that rates would be kept at this level for much longer. The question is: how will rising rates affect business for brokers? Andrew Brumby, managing director of Develop & Invest, predicted the increases would throw up a roadblock for some borrowers. “Yes it will affect business – especially as the first homebuyers or those who might just meet lender guidelines now will fall outside after further rate increases. It’s really difficult

to say how much – maybe 5-10% on the residential front.” As a result, he expects rate changes to affect his mix of clients – but only those at the lower end. “Investors who have been in the property market are more resilient and understand the cycle, so an investor who is keen to purchase will purchase. We may see a few people get into an uncomfortable position and sell, but realistically if it’s 75 basis points most people should be able to maintain their loans,” Brumby explained. Michelle Coleman, owner of WHO Finance, agrees that the bulk of her customers (investors) will not be phased by the increases. “I don’t think it will affect my business, as the majority are investors. But any first homebuyers that we do have are always told to budget for rate rises.” Of course, should banks move outside the RBA’s increases, the effect on clients will be more pronounced. While higher bank interest rates will raise the ire of clients, Brumby is not certain it will be enough to push them toward other lenders. “There’s already a push in some cases, from those who are not happy with a couple of the majors that are already above RBA rises. This is a difficult one as the variance isn’t enough in many cases to make a change after costs are taken into account on top of this. So in a lot of cases it’s let’s wait and see if this trend continues,” said Brumby. According to Coleman, changes are unlikely to pique borrowers’ interest in fixed-rate products. “No, mostly because the fixed rates are so high.” Is there a possibility non-banks might gain from customers looking for alternative products in a rising rate environment? Brumby is not convinced. “While we need alternative lenders it’s still a tough sell because if you place a product from a non-major bank which may be a better rate and has similar features, customers still want to choose the major bank as they can identify with them and think they’re safer.” MPA

Column

A day in the life of…

Up with the sparrows In the first of this new A Day In The Life Of… series we take a page out of Mortgage Ezy CEO Garry Driscoll’s calendar

0530h

Usually awake before the alarm, out of bed, glass of lemon juice – I’m told it’s good for you – and then walk down to the beach at Surfers Paradise. Fortunately it’s only a block away so no need for any footwear. Usually walk on the beach for an hour each morning which is a great way to start the day. There are always interesting sights on the beach at that time of morning, no matter which day of the week.

0800h Garry Driscoll

“ Excel is the greatest program ever written – you could run a small country using nothing but Excel ”

Into the office and the first thing is a long black to start the day. Cut back to one per day from a high of eight so that must be a good thing. Check e-mails and my calendar and prioritise my tasks for the day. Check previous day’s application, approvals and settlements and our month to date figures. Today they’re looking strong so a good start to the working day.

0830h

Weekly executive meeting to discuss any issues. Meetings are informal and debate is often vigorous.

1000h

Catch up on e-mail and respond to any phone calls. Try to have a wander around the office and say hello to everyone.

1030h

All-staff meeting for five minutes. This is a weekly meeting to update staff on what’s happening this week and a chance for anyone to ask questions. True democracy in action! Today no one asked me any hard ones. Bonus!

1100h

Meeting with IT development team to discuss new software. We’ve been building the new mortgage management platform for 18 months and are due to roll out in a few weeks so everything is getting urgent.

1130h

Meet with Wiz and Kat to review the latest marketing for MPA. Looks good and it’s really poking fun at the majors. Who cares if they don’t have a sense of humour! The artwork

looks great and I’m thankful they don’t have to rely on me to come up with the creative ideas.

1200h

Again follow up on the e-mails and harass sales and credit departments.

1300h

Grab a salad for lunch and go for a walk around the block to get some fresh air.

1330h

Check and sign off the upfront commissions. This is a daily task so it’s important we don’t miss this job.

1400h

Sit down with my EA and go through any documents that need signing.

1430h

Spend the next hour or so responding to e-mails and calls, attending to whatever comes up.

1600h

Teleconference with Joe Sirianni, James Symond and Matt Lawler on the MFAA Strategic Plan Advisory Group. This is a regular meeting to track progress of the new strategic plan for the MFAA. This will have a profound impact, so we need to get it right. I believe people will look back at this time and say this was when working in the industry moved from being a job to a profession.

1700h

Check and release the banking for the day.

1730h

Back to e-mails and correspondence. Try to get as much as possible completed before the brain goes numb. When that happens usually do some spreadsheet work which requires more grunt than thought. I believe Excel is the greatest program ever written – you could run a small country using nothing but Excel.

1900h

Time to head home and put the feet up and have a nice red.

column coach

Regaining

lost clients

Sometimes, with all your efforts directed into gaining new clients, the ones you already have may be lost through neglect. Doug Mathlin reveals how to get them back

onsider this. You have been in the mortgage industry for a few years now. You have written plenty of loans and have a nice loan book. Leads come in naturally from a few sources including your clients and referrers – who are more like friends now. Your peers think you are successful, and by most accounts you are. But deep down you know you could do much better. Most of your clients are not advocates of yours and quite honestly, you don’t know what they think about you. You would prefer not to know what they think – in case it’s not glowing. When you are really honest, you mark yourself eight out of 10 for salesmanship, but only four out of 10 for client care. Call to action Can those clients that rate you a ‘four’ be turned around? Most likely they can. It’s fair to say from

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the day you open a business that some clients will be advocates and some will not – regardless of the shopping experience they have with you. All you can do is your best, and try to create client advocates as often as you can. But here is a tip. Don’t die wondering. Those clients are your assets and it’s their behaviour that will one day help determine the value and sale price of your business. Also, don’t wait until you decide to sell to fix this problem: your actions will help improve cash flow now and the sale price later. Everyone knows about Albert Einstein’s definition of insanity. So if you don’t address this problem, it will not go away. Here is a suggestion that will help you recover many of the clients that you think might be lost. First, admit you have a problem, then take action. Send out the customer care charter letter (see right).

column coach

But beware. You will no doubt receive negative feedback. This is not a time to argue with your client – just accept that these are not the ones to spend your marketing dollars on in the future. And make a note of it in your CRM system. You do have one, right? You will receive positive feedback too, and that is the response we are after. The reality is many of these long-lost clients will think fondly of you. Reluctant caller Follow the letter up with a phone call. This time the positive interactions will trump the negative ones – as long as you have something of value to say. Many brokers that we work with on this issue have what we term ‘call reluctance’ simply because they do not know what they would tell a client in a situation like this. It is a common challenge, and we tell all brokers the same thing: don’t tell them what you think they should know, rather ask them to tell you what you should know. Implementing this practice will be very fruitful for you when it is done well. There is no doubt you will generate more repeat business by simply putting yourself back in front of them. Also, remember you’re a ‘people’ person. Your strength is direct one-on-one communication. Even if your clients don’t rate the service you provided, your attempt to rescue the relationship will rebuild it. True story: in a not-uncommon occurrence, a broker client of mine procrastinated about calling his database for fear of negative feedback. Later, while reviewing his trail fee income form he noticed that a regular – and reasonably large – trail payment was missing. Now he called the client, who told him she had lost his contact details (I’m so sorry) and had refinanced with a bank directly. She told him that if he had called a month earlier, the deal would have been his. The lesson to take away is that business cards go missing and people forget your name. Don’t rely on hoping your clients will remember you. You have to make sure they can’t forget you. Another true story: a long established and very successful broker was reviewing his performance, looking for trends to plan for the year ahead. There was a very obvious spike in production from March through April. On reviewing the marketing activities that occurred in January and February, he identified that calling many clients in those two

“ Don’t rely on hoping your clients will remember you. You have to make sure they can’t forget you ” months was a major contributing factor to lead generation (and ultimately settlements) in that period. The broker remembered that they were ‘uncomfortably busy’ during that time and were pleased when the demand subsided. Lesson learned: outbound direct communication with your clients really does work if you prepare well for it. As an alternative to calling clients, why not just invite them in to your office for a free debt review? What’s the worst thing that could happen? MPA

Action items Commit to contacting every client and prospect in your database this year Ask for feedback Find out what they think of you Do a needs analysis Find out how you can help them Offer appropriate solutions and suggestions Remind them of your referral program Send thank-you cards as follow up

Customer Care Charter template

Dear (insert client’s first name), Ref: Customer Care Charter I’m so sorry that I haven’t been in touch for some time. My intention was to regularly communicate with you to keep you informed about finance industry issues, but to date I haven’t been able to do this. I hope that you will forgive me. (Insert business name) has been steadily growing over the past (x) years and we now offer services to our valuable clients that include: (insert offerings) I want to make sure you know that we do value you as a client and hope that you will consider us as your financial services provider of choice for the above listed services. If we can assist you with these services, we will be happy to help. A representative from our office will be contacting you in the near future to ensure that we have all of your correct contact details and to see if we can assist you in the coming months. We would also like to hear your suggestions on how we could improve the service that we offer to you. If you would prefer not to be contacted, please respond to this e-mail/letter (or e-mail dontcall@youroffice.com.au) We look forward to connecting with you again soon. Regards, (insert your name)

Questions to ask a client after a contact lapse • Can I check to make sure that we have the correct contact details for you? And your home e-mail address is…? • Thinking back to the service that we provided, was there anything we could have done to improve it? • This year, we plan to keep you up to date on changes in the finance industry in a regular, brief e-mail

message. Would you like me to keep you informed? • Are you planning to buy, sell or refinance in the next 12 months? Or can I help you with anything in the coming six months? • Do you know anyone looking to sell, buy or refinance? • Do you have any questions for me?

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Profile leader

EO Jeff Zulman is leading a peloton. The South African businessman has taken over as head of the country’s newest entrant, Vow Financial – a conglomeration of three individual aggregators – National Brokers Group, The Brokerage and The Mortgage Professionals. With a membership of 900 mortgage brokers and a combined loan book under management of $16bn – it is already among Australia’s top five aggregators. But Zulman says more mergers and acquisitions are on the horizon. “Initially, we are looking to increase value through internal growth and acquisition of other mortgage loan aggregators. Longer term our ambition is to diversify the business into the broader financial services sector and offer nonmortgage products,” he confirms.

Promising According to Vow Financial’s CEO Jeff Zulman, the current economic climate is ideal for growing the new venture

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start

Profile leader

As far as Zulman is concerned, the current economic situation means it is a great time to grow this new venture. “The one good thing about tough times and competitive pressure is that it brings out the best. When everything’s going easy it’s hard to differentiate yourself because everyone is riding downhill. Wait until you get into the mountains and you start to climb – then we’ll discover who Lance Armstrong is.” On the way up Zulman’s professional background is rife with mountains both challenged and conquered. After completing a law degree in South Africa, he landed a job with the global investment banking and securities firm Goldman Sachs. He trained in New York and worked on Wall Street for a year before trading the Big Apple for Big Ben. Zulman then spent five years in the UK – four of them in London – before homesickness for the southern hemisphere sunk in. After coming to Australia on a vacation, Zulman decided Sydney was the next pit stop on his world tour. He’s now called the city home for 16 years. Zulman purchased a company in Australia as a joint venture with a UK direct marketing listed group and produced mail order catalogues. He ran that for a couple of years until he sold it to his largest competitor. He then returned to the world of finance – managing venture capital investments, direct investments and corporate advisory, before stepping in as the CEO of a client’s IT company which he headed until 2008. “I’ve been fortunate to have a strong finance background and a legal perspective on that. But I’ve had very good exposure to marketing and a good dose of IT. So hopefully I can bring elements of all that into this venture,” he says. Last May, Zulman was engaged by the founding companies of Vow Financial to assist in bringing the groups together. “I wanted something that would not only professionally satisfy me and give me a challenge but would also be a good business. I looked under many rocks and I liked what I saw here.” Macquarie owns a 20% stake in the group and the rest is divided between Zulman, non-executive chairman Dr Peter Neustadt and the founding

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Personal file Jeff Zulman + Born: South Africa + Family: Married, four kids – 12, 10, 8, 7 + Interests: Cycling, ocean swimming, triathlons + World cup loyalties: “Today I’d cheer for Australia.” + Stress management tip: “Keep things in perspective. I like to take a step back and say ‘what are the priorities in life?’ ”

aggregators. From the outset, Zulman says Macquarie’s involvement has been invaluable. “I think having somebody neutral helped everybody park their egos at the door,” he says. “Now they’ve stepped into the background. They have a minority stake, they have one director on the board, they have no pre-emptive or special rights. They will offer us products just like any other lender would. We’ve cultivated a good relationship with them, so I hope that works mutually both ways. If they’re not happy with us they can pick up the phone or if their product offering isn’t very good I can call them and give them feedback from the brokers.” Making a vow Zulman has dedicated the last eight months to building Vow Financial from the ground up. To get an idea of what elements to bring together from the three groups, the Vow team conducted more than 300 hours of face-to-face broker interviews.

profile leader

“We’ve had the time, with the help of some very qualified people and assisted by Macquarie Bank, to be able to go and ask ‘if you had a blank sheet of paper what would you do differently?’ ” He says IT came up as one of the biggest sources of frustration among brokers. Given Zulman’s previous CEO experience with an IT company, it was an area near and dear to his heart. “The first external hire that I made into Vow was the CIO. Having been the CEO of an IT company I was fairly well plugged in and I wanted someone who really had a good vision and perspective, and understanding of it all.” In an effort to rectify the problem areas, the Vow team decided against building a system and then trying to sell it to their brokers. Instead they brought brokers in to help them design and build a system from the ground up. Enabling brokers to be ‘a part of the solution’, so to speak, plugs into another key area of broker concern – empowerment. “A lot of people left [their former jobs] … and they went into their own business thinking this will put me in control of what I’m doing. And now they’re thinking they are anything but empowered. ‘Will the banks take away our commissions; will they take away our trails; what does the future look like? There’s all this regulation. I thought I was getting control, but now there’s less control’ – so empowering brokers is a very important part of what we want to do.” Yet how do you empower brokers? Get them involved in designing the IT, for example. Another way in which Vow is making itself representative of its members is by enlisting them to participate in developing the aggregator’s brand tag line. The broker that comes forward with a pithy statement that articulates who and what Vow Financial is will win a tidy prize. “We could have paid a marketing agency to give us a catchy slogan,” says Zulman, “but rather than pay an agency, we’d rather pay the brokers.” As for branding, the name ‘Vow’ is set in stone. In late November, the group’s project name (‘Wonderland’) raised a few eyebrows, despite assurances that it was just a working title. Zulman says the group settled on Vow Financial because they wanted a name that expressed the commitment that it had to the

“ Our ability to realise value from this is that together we have a scale that we didn’t have as individual businesses … ”

brokers of the founding members. While there exists a strategy of growth through acquisition, Vow Financial isn’t about to “sell up and move on” from the individual aggregators’ principals that attracted them in the first place. As for imminent mergers, Zulman says discussions are ongoing. “The group that came together is the same group from the time I started. But there have been those that had an interest but didn’t want to be the first movers – first to be second. Now we need to bear down and integrate, but our discussions are ongoing with some of those other groups and we’ll see where they take us.” Integration of the founding groups is near completion, Zulman says. “Our ability to realise value from this is that together we have a scale that we didn’t have as individual businesses so that’s what we’re going to do now.” Moving under one platform, developing one set of lender agreements, and centralising back office functions are just some of the challenges Vow Financial tackled in merging together. Going forward Brokers often accuse their aggregators of being toothless tigers when it comes to representing their interests to lenders. But Zulman says that’s the wrong way to look at the situation. “I think both the aggregator and the broker needs to be realistic about the balance of power. In other words, to get a baseball bat and bang on the door of the Big Four and say ‘change it or else’ is probably unrealistic and not commercial.” He says it’s up to the aggregator to prove its worth to the bank. “At the end of the day, the major banks today have a finite pool of capital and that capital is more restricted now than it has been for many years – and the GFC has shown they need to be even more prudent. So they are saying ‘what does it cost us to acquire a customer in the banking channel and what does it cost through a broker?’ ” According to Zulman, aggregators have to be much more clever in figuring out which buttons to push, so that banks not only recognise the value that the broker channel brings- but find it worthy to reward it. “There is a time and a way to get the best for our brokers.” MPA

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Profile

top-seeded broker

1st Street broker Jeremy Fisher smashed his way to third place on the MPA Top 100 list. MPA finds out how…

he largest loan 1st Street broker Jeremy Fisher settled in 2008/09 was worth $21m, which also happens to be the largest single loan for a single residential property purchase ever put through the banks. “That comes with some serious pressure and three months of putting it together and everything else,” he says. “But it’s obviously worth it.” Last financial year, Fisher settled 98 loans totalling more than $102m – a phenomenal tally for a broker who just seven years ago gave up a career in stockbroking to start his own mortgage business in Sydney’s wealthy Rose Bay. Working in the eastern suburbs of Sydney gives Fisher access to some very high net worth individuals, but he says he doesn’t limit himself to any particular type of client or area. “Most of my clients do live in the eastern suburbs. But I have a rule that I’ll never say no to a client and I don’t care where it takes me. So I’m in Melbourne once a month – my client base there is growing. I’ve also got clients in Byron Bay and parts of Queensland.” Despite working with some top-end market clients, Fisher says he’s much more interested in

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broker finding out what people do, rather than what they earn. “It’s quite fascinating to hear what everyone does for a living… I’ve got one client who is a world champion barista and I think that’s really cool.” The back story is what captures his imagination most, perhaps because Fisher’s own history is quite colourful. He grew up in Sydney but moved to the US after receiving a full tennis scholarship from the University of California. Fisher played seriously as a junior and has travelled to most countries representing Australia. But as he got older and the competition became more serious, he had to decide whether tennis was going to be the be-all and end-all, “and I thought no”, he says. So he returned to Australia and finished his degree at the University of Western Sydney, and after graduation he became a stockbroker. After five years, Fisher and a colleague decided to get

into the mortgage business together – and 1st Street was officially born as a result in 2003. “Working for somebody in stockbroking and giving away half of what we earned is what gave us the incentive to go into broking and do it ourselves.” Fisher was very comfortable with the service proposition of mortgage broking, which he says is quite similar to stockbroking, but that first year was difficult for the company. They didn’t settle one loan in their first six months, and shortly after starting out, Fisher’s partner decided to leave the industry. So Fisher bought him out. “It was interesting times,” he admits. “I knew that 90% of small businesses fail in their first year so I wanted to beat the odds.” His commitment started paying dividends and last year Fisher managed to grow his business by 30% in a downturn.

profile broker

Personal file: Jeremy Fisher Family: Married, two kids: 4, 2 + Outdoor pursuits: Running, tennis, work on the house, spend time with family + Long-term goal: Own and operate a tennis centre + If I wasn’t a mortgage broker… I’d be a professional tennis player

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Profile leader

“ I have a rule that I’ll never say no to a client and I don’t care where it takes me ” Business file + Company: 1st Street + Location: Rose Bay, NSW + Years as broker: 7 + 2008/09 settled: $102,523,656 + Number of loans: 98 + Number of support staff: Just hired one mortgage broker

“The last few years have become a lot more consistent and reliable I would say, not just financially, but client enquiries and so forth,” he says. “I think my business is just maturing.” The 2009/10 year is also shaping up with similar numbers. For the first time in his mortgage career, Fisher has decided to bring in another broker to help with the overflow of leads. It’s a big move for Fisher who likes to do everything on his own, including all the back office support. “I like to be able to tell clients what’s happening with their loan when they ring me up.” It makes for a fairly hectic schedule. Fisher usually starts his day at 7:30am so he can get some work done before the phone rings. After that, it’s meetings with clients, following up by e-mail and phone calls to banks. From about 5:30pm he starts submitting loans. He also does home visits at night. But weekends are sacred, says Fisher, who has two kids, ages 2 and 4. By referral His dedication to the whole process has obviously impressed clients, as the majority of his business is via referral. He also receives referrals from Ray White in Bondi. Fisher says it took several years to cultivate the relationship with the realtor, but it’s paid off in spades.

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“I approached the proprietor when I started and he said, ‘well you just started this business, how do I know you’re going to be around in a couple of years? Come and talk to me then.’ So I just persisted. It took a few years before he was willing to give me the opportunity and introduce me to the sales staff, but then it happened. They had other brokers that they were working with, but after a while the agents were pretty much just referring to me and it became an exclusive arrangement.” As the majority of his clients come by referral, advertising has not been a big part of his business. “I’m happy to support charities or organisations. I’d rather spend my money on that than advertising which I don’t believe is very productive.” When he first started, Fisher shelled out $5,000 on a sponsorship agreement with a local sporting club, but the results were disappointing. “It got my name out there, but I never got a single loan from it. It could be different in other suburbs, but in the eastern suburbs everyone here seems to know three brokers – they’re not going to go to someone new. So I realised my business would be purely referral and that’s what I then focused on.” Twitter or other types of new online social networking are not on his radar either, he says. But Fisher does keep regular contact with his clients via e-mail and newsletters and he’ll contact them on the anniversary of their loan. At the end of the year, he also likes to send out a small gift. “So those are the guaranteed touch points. But if there is a major change with a lender, I’ll go through all my clients and contact everyone that is placed with them to advise them what’s going on.” As for future market changes, Fisher doesn’t believe the housing market will be greatly affected by rising rates. “I still believe people will be buying and selling. I look back when rates were 9% and people were still active.” Fisher’s relaxed attitude crosses over to his views on the lack of competition and the increased power of the major banks. He believes the threat of increased commission cuts is not one brokers can do much about. “At the end of the day what can any of us do? I would hope that the brokers writing good business get recognised by the banks,” he says. And Fisher can rest assured he counts among those brokers writing good business. MPA

fEATURE

social media

Get online Go global T

o clarify, social media is the catch-all phrase that describes the various communities that have popped up online in recent years. Facebook, Twitter, LinkedIn, corporate blogs: these are all examples of social media platforms where millions of people congregate to share thoughts, photos, ideas and opinions. “These days networking is not only done in real life, it’s also done online,” explains Iggy Pintado, author of Connection Generation. “Social media is classic networking, but it’s online – and it’s global.” Pintado says many brokers dismiss social media sites as being personal playgrounds with little business value, but he believes the exact opposite is true. “If you’re a broker in Australia, for instance, it allows you to connect with the thousands of Australian that live overseas,” he

The mortgage industry is driven by connecting and building relationships, and nowhere is networking easier to pull off than online. Sarah Megginson reports

says. “It’s all about ‘virtually’ going where the people go.” Tested Not everyone is convinced that social media sites are brimming with business opportunity. David Brell, director of Smartmove Home Loans, says he has considered introducing social media into their marketing plan, but “ultimately, we don’t want to change the model that works.” “Most of our customer base is built via word of mouth and ongoing relationships, and people seem to like the personal and traditional service that we provide using e-mail and phone calls,” he explains. It’s the new, unproven nature of online networking that has caused Brell to think twice about moving forward with any social media

Feature social media

Online edge Facebook Many businesses establish their own Facebook page to complement their website. People often dismiss Facebook as a platform exclusively for young people, but the highest adoption group of Facebook users is those aged 40-plus in the US. www.facebook.com

LinkedIn Sixty million users globally, one million in Australia. A powerful profiler, LinkedIn gives a summary of your work history, experience, and who in your network recommends you. Forty-two-year-old senior professionals earning AUD$118,300 are your average profilers. This is a highly recommended network tool. www.linkedin.com

initiatives. “You have to wonder – why don’t the banks do it? Why don’t the big accountants and lawyers do it? I don’t want to reinvent the wheel – I want to do what works, and I think if they don’t do it, what’s stopping them?” he says. Brell also struggles to see how social media sites are going to help his business – and more to the point, he can actually see some potentially negative impacts. “It can be viewed by some as being unprofessional, and a bit of a tacky way to generate business. The fact that you’ve got the time to spend on blogs and Facebook says something in itself – if you have enough time on your hands to work on that, then perhaps it can be redirected to providing better customer service,” he says.

Twitter Twitter is not about who you are; it’s about your attitude. If you publish stuff that is quite compelling, people will follow you. I tweet quality information and advice about social media as well as inspirational quotes, and that’s why I have 14,000 followers. www.twitter.com

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A new age However, there are plenty of brokers who see the value of integrating social media into their marketing model. Alistair McCreath, managing director at Financial Broking Consultants, says his company is aware of the social media phenomenon and that he is actively working to incorporate it into his business. “I’ve read a lot of articles that explain the benefits of how social media can increase your exposure and generate leads, so we thought we should look at participating,” McCreath explains.

“ Social media is classic networking, but it’s online – and it’s global ” “We’re registered on Facebook and Twitter, but to be honest we haven’t done much with them. I think you need to be about 18 years old to understand it.” And that’s the issue. It is not so much social media’s validity that is in dispute by some brokers – rather it is the ability to put it to proper use. McCreath is the first to admit that he’s not sure how to maximise its value. “I think that most people are aware of these sites – we’re just not certain of how to use them yet,” he says. “We’ve already had two leads that have come through that system, and we haven’t done a lot with it yet, but we can see the benefits already.” Embracing new media Katrina Rowlands, partner and home loan consultant at Mortgage Success, has yet to jump on board the social media train, but she certainly knows of others who have had success with it. “I do know one lady, and she thinks Facebook has done wonders for her business. It is a very cost-friendly medium,” Rowlands admits.

Feature social media

“But at the moment, I’m still old-fashioned; I don’t use any of them. If I were invited to join in a site like LinkedIn, I would take it up based on who the invite came from. I’d have to be introduced by a reputable source to seriously consider it.” And good for her too, since according to Pintado this is precisely how social media platforms should be used. To build quality referrals and networks based not only on who you know, but also based on who your contacts know. “I have this mantra, that every connection you make is a potential social or business opportunity,” says Pintado. “Business cards are nice, but they’re not very practical. If I invite you to LinkedIn and you set up a profile, it becomes your online card. If you move companies and have a different e-mail address and phone number, your business card is suddenly out of date, but we’ll remain in contact, provided you update your LinkedIn profile.” If you’re considering entering the social media space, Pintado recommends LinkedIn as the ideal place to start, as it’s “a place where you can interact and engage with people professionally”. “At the end of the day, I’m not interested in just who you know – I’m also interested in who you know that knows someone else. The modern-day business world is all about connections, and continually expanding your network.” mpa

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Protecting your reputation online Thinking of joining LinkedIn, or creating a page on Twitter? If so, David Freer, vice president of Norton Business for Asia-Pacific Japan, says it’s important to take steps to protect your reputation and identity online. “Getting information back off the web is nigh on impossible – once something hits the public domain, you can’t pull it back,” he says. Freer points to the recent Rockpool restaurant debacle , where Neil Perry and an unhappy customer exchanged increasingly nasty e-mails which eventually went viral, to demonstrate how quickly your reputation can be tarnished online. “That was a private e-mail between a patron and the restaurant’s owner, and it went on the public domain very quickly,” Freer says. Once you put pen to paper (or in this instance, cursor to screen) there’s no way to permanently wipe away any mistakes. For this reason, Freer offers the following advice to brokers who are considering beefing up their online presence:

1. If you have a personal profile on a social media site, be careful what you share. If you don’t want a client, employer or employee to know what you’re up to, don’t post it online, even on your personal page. 2. Think before you post. Am I comfortable for anyone and everyone to know this about me? This is particularly important on sites such as Twitter, where you may share more personal opinions and thoughts. 3. Never include details of your birthday online. It’s already easy enough for people to find your full name, address and phone number on the web, so don’t give them your date of birth as well. 4. Once you’ve finished uploading or updating, make sure you log out of the site, especially when using a shared work computer. 5. Don’t assume your online activities are anonymous – ever. People think they have anonymity on the web, but it’s the exact opposite. Just because you can’t see where the information is stored, that doesn’t mean it’s not accessible by someone else.

fEATURE

social media

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diversification

For about as long as it has been apparent that the GFC would put a dent in brokers’ earnings, market commentators have advised on the need to procure and secure additional sources of income. Some brokers responded early, and now enjoy the fruits of that labour

iversify or die? While this may not necessarily be the broker’s mantra anymore, given the recession didn’t dip as deep as many market commentators feared it might, it is still true that diversification is certainly an easier word to say than it is a strategy to implement. At the height of the financial crisis some brokers simply stuck their heads in the sand and gave diversification a wide birth. Some gave it a fair go, but floundered anyway. But then there were the others; early adaptors who did what was needed to seek out other revenue sources to combat the recessionary effects

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of the global financial crisis. In the first instalment of this new feature on Diversification Heroes, MPA ferrets out these pioneers and publicly salutes them for their resilience and entrepreneurial spirit. We asked various service providers operating in the broadest and most obvious categories – life and short-term insurance, short-term lending and commercial equipment finance – to nominate their broker stars. To take a feather from their caps, MPA asked each one how they did it. Here is what we learned:

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heroes brokernews.com.auâ&#x20AC;&#x201A;â&#x20AC;&#x201A;

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short-term loans:

Des Bolland + Company:

The Loan Company + Nominator: MKM Capital

“ The greater reward is being able to satisfy a client’s critical needs at a time when it appears to be close to their darkest hour ”

Target market: Legitimate homebuyers and business owners who need money in a hurry and who have adequate clean security. Commission range: Nominated brokerage paid up to 5% of the loan amount

t was innovation that caused Bolland to diversify into short-term loans. Over the past nine years he has focused on the more complex loan sector of the market. Usually, he explains, issues were caused through a temporary downturn in net profit, non-recurring set up costs or impaired credit issues; all of which can be resolved at a future date. Prior to the global financial crisis, the solution was to fund these through low-doc loans with second-tier lenders or third-tier non-conforming lenders. Then, when the impediments had been sorted, the loan could be refinanced through traditional sources. “But post-GFC, these sorts of clients literally had diminished avenues of obtaining or seeking additional funds. Helping clients through such a crisis was the big challenge which led me to sell short-term loans. The MKM 6 + 6 product fits the bill perfectly and, because it doesn’t have the same deferred establishment or early repayment fees, it makes it a far more economical proposition for the client,” he says.

Bolland says that initially breaking into the new market was difficult “…until you got some runs on the board and were able to relay the success stories to potential clients or referral sources”. It’s been good for business: the additional income is, of course, good. “However, the greater reward is being able to satisfy a client’s critical needs at a time when it appears to be close to their darkest hour,” he says. Under these circumstances, the referral business generated from a satisfied client is “very meaningful”. While he says there wasn’t a great deal of training required in the product knowledge sense, getting to recognise the opportunities is the more critical investment from a time perspective.

Applications of short-term funding Brad Collins, finance consultant, PFG Mortgage Managers WA, nominated by NCF Financial Services 1. Clients often leave their pre-30 June tax planning to the last minute, and then require funding for

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tax effective investments in a hurry. Depending on the nature of the short-term lender, funding can be available within 72 to 120 hours. 2. With the demise of a number of nonconforming lenders,

short-term lending, in most cases, is more beneficial than taking the full principal debt plus arrears to a nonconforming product. 3. When developers underestimate costings, short-term funding is an

effective way to get the development over the line. 4. Failure to pay out the debt upon expiration sees the fees and interest increase and possibly force the mortgagee to take recovery action for clearance of the debt.

5. Where homeowners have reached a severe stage of mortgage arrears, short-term funding allows the borrower to take back control of the security property and sell it of their own accord, not under a forced mortgagee sale.

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“ Settling the short-term loan was actually a lot smoother and faster than most home loans. Good staff at the lender’s office also made a big impact on how easy the deal was to get through ”

F Scott Marston + Company:

Indigo Money + Nominator: NCF Capital

ate drew Marston to the world of short-term money. One of his best long-term clients needed short-term finance to finish building their new business premises in the Perth CBD. The initial budget was exceeded (partly due to expensive taste), and the client was in the process of selling an existing business; a transaction that would provide ample funds to complete the building project, and make a healthy profit to boot. “Unfortunately, the sale was delayed significantly and my client had a deadline to open the new business. Needing funds for only a few months, NCF Capital was the best choice for speed, and was able to do the deal where others couldn’t,” he says. Since the basic principles are the same as for broking, Marston says the transition was painless. Other than acquiring a knowledge of the new products, no additional training was required. “The process was actually a lot smoother and faster than most home loans. Good staff at the lender’s office also made a big impact on how easy the deal was to get through,” he adds. And while the extra income is nice, what is nicer for him still is the ability to provide more services to his existing clients. So much so that Indigo Money intends to spend more money on advertising this year to grow the diversification side of its business into more new territory.

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short-term loans: I Gabrielle Schubert + Company:

Loan Market Home Finance Brokers + Nominator: HomeSec Finance

t was the importance Schubert placed on being in a position to offer a broad range of alternatives that first attracted her to the short-term market, and today she feels every broker should have access to some form of short-term funding. She feels it is not that difficult to break into the new market either. “If the need is there I feel it’s important for us as brokers to seek access to it and there are many lenders out there who are more than happy to assist,” she says. She says that with the major lenders rationalising and cutting back on broker commissions the additional income has allowed her to grow her business. In addition, diversifying has allowed her to offer a broader range of solutions “for problems that may fall outside the square”.

T Scott Symons + Company: Adelaide

Finance Agency + Nominator: MKM Capital

he disappearance of the non-conforming lenders and the tightening in credit policy from the banks and the mortgage insurers has lead to a resurgence in the demand for short-term loans. “We have always handled the more difficult and harder-to-place loans so we were well positioned when the non-cons started leaving the market,” Symons says. He recognised an opportunity to find an alternative solution on behalf of other brokers who had relied solely on the mainstream banks assist their non conforming clients. Under this

“ If the need is there I feel it’s important for us as brokers to seek access to it and there are many lenders out there who are more than happy to assist ”

arrangement the commission is shared while the originating broker keeps the client relationship. The additional income was welcome during the downturn, says Symons. “And looking for ways to diversify our business was key to surviving the last 18 months,” he adds. He says there was no real extra training required, but it did require the implementation of new systems. “The GFC was a very interesting ride for us; it certainly afforded a bit of character building but most importantly it provided us with many opportunities,” he says.

“ The GFC was a very interesting ride for us; it certainly afforded a bit of character building but most importantly it provided us with many opportunities ”

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short-term loans: I Paul Mitchell + Company:

Mortgage Helpers Australia + Nominator: MKM Capital

t seems that the short-term sector found Mitchell, rather than the other way around. Market forces always determine the changes brokers should make to stay on top of things, he explains, and the changes to the prime lenders' credit policies meant finding new ways to assist clients without locking them into long-term contracts, since he works in the non-conforming space. “So a short-term loan for a short-term problem is a great way to go,” he says. Not that the transition was difficult to make. “A loan is a loan,” he says, “the term does not make the difference, it is and always will be the way you package it.” Mitchell says “in real terms” short-term loans have given him an extra way to “clean” (solve) a client’s issue. Furthermore, since he is time-poor these days, what took him an hour to do then takes four now, so having an extra place to put a loan means you

O Anthony Marquez + Company:

Universal Finance + Nominator: HomeSec Finance

perating mainly in the non-conforming space, Marquez began to feel the effect of the non-conforming lenders exiting the market as the GFC took hold. So, since many of his clients were developers or property investors looking for fast access to funds – and at great rates – he chose to make the transition into caveat loans and short-term business finance to help them. As well as shortterm loans, he also found a healthy demand for private first mortgages; using a combination of individual private investors and privately funded mortgage companies. “We have built longstanding relationships with many caveat loan lenders throughout Australia, allowing us to settle fast and negotiate directly

“ Privately funded mortgages and caveat loans allow us to skip all the red tape and paperwork involved with the mainstream lenders ”

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can earn some income – and maybe have a second go when the initial term is up. As far as training is concerned, Mitchell believes that product knowledge is king. And knowing your lender's buying guidelines will save you time and wasted effort. He’s quite strict about it too. “If you do not put time into training then do not do the job,” he says.

“ A loan is a loan; the term does not make the difference, it is and always will be the way you package it ”

with the source of funds. Privately funded mortgages and caveat loans allow us to skip all the red tape and paperwork involved with the mainstream lenders,” he says. Today, with Universal Finance’s extended panel of lenders, Marquez says business is better than ever. He even describes the company’s growth as having been “phenomenal” over the past 18 months. “The product has allowed us to stick out the hard times of the industry without reducing our income. In turn Universal Finance has seen consistent growth, and diversification has allowed us to brand the company name through the means of television and newspaper advertising nationwide,” he says. Marquez says that taking the step to diversify into this product has meant all Universal Finance brokers having to undergo training and accreditation from all new service providers the company deals directly with. “I firmly believe that every Universal Finance consultant should know the ins and outs of every product on offer, so there is something new to learn every day,” he says.

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Target market: New home owners, investors, and business owners who have recently substantially increased their asset portfolios. Commission range: For unlicensed referrer, between 30% and 40% of yearly premium. For authorised rep, between 80% and 100% of yearly premium.

life insurance: P Rachel Pratt + Company: Loan

Market Home Finance Brokers + Nominator: Australian Life Insurance

“ Selling life insurance has added significant income to my business, enabling me to employ a personal assistant with very little effort ”

ratt had no trouble in identifying the benefit to her business of offering life insurance protection to her clients, as buying property was going to be the biggest investment in their life. “We have all heard the statistics that Australians are underinsured and many say “it won’t happen to me” so I provide a service in offering my clients life insurance for the amount of their mortgage, or at a minimum some protection of $50,000,” she says. Very easy is how she describes the crossselling. “I introduce the concept of offering life insurance protection when first meeting clients; and reiterate it again when we are signing the loan application. Most of my clients take out life insurance when they sign the loan contracts and mortgage documents or at second interview (application taking) stage,” she says. Pratt has no hesitation in confirming that the diversification into life insurance strategy has been absolutely the right thing to do for her business. Not only does it protects her clients’ lifestyles, it (obviously) also keeps her onside with her aggregator. And as far as the dollar value is concerned, “it has added significant income to my business, enabling me to employ a personal assistant with very little effort.” All it took was a little regular one-on-one training with the Australian Life Insurance SA/NT regional manager, working on scripts and dialogues in different ways to introduce the concept of offering protection to her clients. “I have taken the dialogue on board and introduced it into my PA’s dialogue as well for when she is booking appointments or signing loan applications and mortgage documents,” she says.

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life insurance: “ The extra income is providing a means to purchase new technology for the business so I can have a paperless office and is funding extra marketing activities and staff bonuses ”

W Irene Cukjo + Company: Kings

Langley Mortgage Choice + Nominator: Australian Life Insurance

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hen she looked at ways to enhance her business during the GFC, Cukjo felt that life insurance seemed to be a natural fit to the home loan. “Part of my responsibility to the community as a financial solutions provider is my duty of care to customers,” says Cukjo. Recognising the opportunity in crisis, Cukjo realised that people would be concerned about protecting their wealth and assets through the recession, which made offering additional services to her customers “relatively easy”. Furthermore she says the life insurance products are simple to understand and, more importantly, to explain to customers. “They go hand-in-hand with mortgage guidance. The support from Mortgage Choice and our non-core product providers has been a great help in getting me through the initial introduction. The support provided by our insurance BDMs especially has been terrific,” she says. Cukjo says the insurance offering has become an integral part of her business’ daily routine, so she was determined to get the necessary training. “My staff and I underwent a general two-hour training session followed by a one-on-one visit from our provider’s BDM,” she says. The effort has paid off handsomely. Since making the decision to take life insurance onboard, Cukjo and her team have “not looked back”. In fact, based on this success, she’s already in the process of implementing more diversified services into her business. “Over the past 12 months as a broker, I have been faced with a number of professional challenges. Thankfully, the additional income stream received from our life insurance offering is now offsetting the residential mortgage commission cuts we adjusted to last year. This income is providing a means to purchase new technology for the business so I can have a paperless office and is funding extra marketing activities and staff bonuses,” she says.

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Brad Kirwan + Company:

Ocean Homeloans + Nominator: PD Financial Group

t was not just the extra revenue stream that made Kirwan choose to sell insurance. He says it had more to do with his long-term relationships with them. And for Kirwan, breaking into the new market was a simple, natural progression. While having the extra revenue stream is always good, Kirwan says he takes a longer-term view on his diversification effort. “The more I can arrange for my clients, the easier it is to keep them long-term,” he says. What is more, Kirwan says it wasn’t necessary for him to undertake any additional training: “I

work with my clients on the basis that I am a home loan expert and I can have an insurance expert come and assess their true needs.”

“ The more I can arrange for my clients, the easier it is to keep them … ”

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equipment leasing: A

diversification strategy has always been on Florance’s radar screen. What made it easier to implement was his taking on the Mortgage Choice franchise, coinciding with Mortgage Choice’s complementary focus on driving diversification from the franchisor’s perspective. Today Florance says it was something he believed to be a critical part of his value proposition; and he began to develop a number of alliance partners as soon as he took on the franchise in October 2008. “I saw equipment leasing as an essential product for my ‘shelf ’; enabling me to fulfil my client’s needs, and diminishing their requirement to go elsewhere,” he explains. He says it was easy enough making the transition into the new product market; having set up strong alliance partners was essential to his early success. “I was also able to cross-sell these products to my existing base and reinforce my status as their broker for life at the same time,” he says. Florance says adding that initial income stream to his business was “critical” for his first year in business. It came during the period in the industry when lead to settlement times were being blown out to five days, so it “assisted cash flow and profitability substantially”. Additional training was required, says Florance, but the process was not onerous. “Macquarie Leasing has excellent software which made learning a new product and process very easy. And BDM support was and still is always available,” he says.

• Generate home loan leads from equipment finance deals You are in a strong position to convert this client into a home loan. They know you, they have taken your advice and you have enabled them to obtain something that they want. Once you determine that a particular client has an upcoming need for new equipment, review their file and put yourself in an informed position. Offer to review their position. They may need a refinance and debt consolidation, variation for home improvements, etc. You have it all in front of you.

“ I saw equipment leasing as an essential product for my ‘shelf’; enabling me to fulfil my client’s needs and diminishing their requirement to go elsewhere ”

• Offer structured repayment finance Once again do not be negligent with your database. Agricultural industry clients earn their major income seasonally. You can also obtain finance for them in line with their income streams.

James Florance + Company:

Mortgage Choice Petrie Queensland + Nominator: Macquarie Leasing

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Annette Ross: Diversification sales tips • Identify equipment finance leads from home loan clients Look closely at your home loan client’s asset and liability statement, paying particular attention to their term commitments schedule. This schedule will show any ageing equipment or residuals falling due. You can generally save a client time and money from working your files, as well as earn supplementary income by upgrading or replacing their equipment.

• Upsell a specialised equipment finance product You may notice that an existing PAYG home loan client is on a high tax bracket. Make them aware of the novated lease product and how the loan repayments are deducted from their gross income. Give them a product sheet and tell them to speak to their employer. Other staff may follow suit. • Treat credit-impaired clients carefully Be aware that not all clients with credit issues – particularly where the default has been paid – should need to pay a fortune for their funds. They may still be considered by a major lender. You can provide affordable, even competitive, funding.

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Target market: SME business owners who require capital equipment to generate income. Commission range: Between 1.5% and 4% of the loan amount

W Robert Rollfink + Company:

RCR Finance + Nominator: Macquarie Leasing

“ We might not be able to be all things to all people, but by careful design and plenty of sheer hard work, we can diversify and certainly be more things to more people ”

hen Rollfink started out as a broker in 2003 he already had a fair bit of experience in various fields of finance. And right from the start he was determined to satisfy all of his clients’ finance needs – so that is what he set out to do. So equipment finance proved itself many times over to be a great value-added service. At the same time, more so by default than by design, it diversified his business. Because he already had an understanding of how it worked, it wasn’t difficult for Rollfink to break into the new market. “So I simply treated it as a natural value-add to my mortgage business. Equipment finance was the value-add that, particularly, my self-employed investor clients appreciated,” he says. And having a diversified income stream, he maintains, is more crucial in today’s competitive broker market than ever. If you meet all of your client’s financial needs, you will make their lives easier, and that can only be a recipe for success – since then the client is “stickier”. “We might not be able to be all things to all people, but by careful design and plenty of sheer hard work, we can diversify and certainly be more things to more people,” he says.

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equipment leasing: G Rob Horner + Company:

Jack Horner Financial Solutions + Nominator: Macquarie Leasing

Annette Ross + Company:

Money Pants + Nominator: Macquarie Leasing

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etting into equipment leasing was a natural progression for Horner; it is, he says, a natural extension of the service brokers already provide to their mortgage clients. “Once you know the process and the products and are able to confidently recommend the most appropriate option for the client, you are well placed to write equipment leasing consistently and profitably,” he says. Also, in most cases having already written the home loan, he will have all the information needed to prepare the leasing proposal. “This minimises stress for the client and allows them to complete their transaction without having to initiate a brand new finance application with another party,” he says. And while having the additional income stream obviously improves his bottom line, Horner says that the major benefit of his diversification initiative is in the way the leasing complements his mortgage business. “It increases customer loyalty as I am providing them – in most cases – with all of their finance requirements,” he says. Getting the training is not a drawback either, as it can be provided by colleagues, he says, or the lender BDMs.

or Annette the decision to move into the equipment leasing space was made out of necessity. It was either that, or have her clients pinched by the direct lenders. “You must do everything possible to stop your home loan clients going direct to lenders. Dedicated brokers know that customers are loyal, but they can be crossmarketed by a lender introduced by you,” she says. And that is before coming to appreciate how valuable a second revenue stream is; and particularly one not influenced by fluctuations in the housing market either.

“ This minimises stress for the client and allows them to complete their transaction without having to initiate a brand new finance application with another party ”

For Annette, breaking the new ground was not the difficult part; that came from the lack of access to product. “Accreditations are now available to volume brokers over quality brokers: that was the major difficulty I faced,” she says. Her advice is to seek aggregators and lenders that actually support you in this area, or align yourself with an experienced colleague who you know and trust. And since she is paid on settlement, Annette says having the added income stream certainly helps with her cash flow predictability.

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short-term insurance:

Mende Dulevski, Tony Bice + Company: Capital

Loan Services + Nominator: Tower Australia

t might sound easy, but Bice and Dulevski’s experience is that diversifying your core business is not always easy. Otherwise, in their own words, every broker would be doing it. When banks first began cutting commissions in November 2008, the two directors – who have 14 years’ broking experience between them – realised the broker channel was inexorably changing, and that to survive (let alone prosper) they’d need an expanded service offering: one that would appeal to more customers. “We had a choice, work harder by writing more home loans or work smarter by crossselling products and services that go hand-in-hand with home loan finance. We chose the latter,” says Tony Bice. First, the two directors toyed with the idea of setting up referral arrangements with partners; the same as many other brokers, but decided against it in favour of wanting to be in charge of their own destinies. “We were also cognisant of the fact that we didn’t want to try and ‘wear too many hats’ by having a number of qualifications but no time to actually process the business we were now capable

Target market: Homeowners, investors and business owners who have something to lose and want to protect it. Commission range: Up to 115% upfront, plus 10% from year two onwards

of writing. We also didn’t see the point in bringing in ‘other specialists’ to write the business on our behalf under some sort of a JV arrangement,” Bice says. “The simple fact is that you have to be prepared to make sacrifices if you want to go all the way and that means undertaking a number of courses (and yes, exams) as well as spending a substantial amount of money to obtain the relevant qualifications and diplomas.” For Bice and Dulevski, in the end the extra effort has paid off. “Diversifying has allowed us to grow our business exponentially in a way we could only have ever have dreamed of if we were simply just writing home loans. The extra income has enabled us to set up a small call centre to generate new leads and market to our existing database,” Bice explains. The trick in succeeding in the diversification business is to form close relationships with all of your business partners, says Bice. “Eighteen months down the track and we feel like we’re part of the family with both our aggregator, who we have been with for many years, and now our dealership,” he says.

“ The simple fact is you have to be prepared to make sacrifices if you want to go all the way and that means undertaking a number of courses (and yes, exams) as well as spending a substantial amount of money to obtain the relevant qualifications and diplomas ” brokernews.com.au

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cash flow finance:

Target market: SME business owners who have much of their working capital tied up in a large debtor’s book, and would like to free up some of the cash. Commission range: Annually, between $5,000 and $10,000 a deal

K John King + Company: Mortgage Call + Nominator: Cashflow Finance

“ Doing two to three deals per year will see the average broker adding an additional $20,000 in income per year – plus ongoing trails ”

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ing says that if you are considering providing commercial and business funding solutions for your clients or referrers it is necessary to have a cash flow funder on your panel. Breaking into the cash flow market has not been difficult for King: “In terms of business efficacy, it was a natural progression to my existing business.” King says that adding cash flow finance to his product suite has meant an increase in his income by as much as 30%. “Doing two to three deals per year will see the average broker adding an additional $20,000 in income per year – plus ongoing trails,” he says. King suggests that before meeting with your clients, you should fully understand the product, the application process, and all credit requirements. Also, it helps if you know how a balance sheet is put together, so a short course in reading this document is recommended. In addition, a good funder will have BDMs to support you through your first deal. “This includes educating you in the capabilities and possibilities of the product, how it is to be delivered to the client, and how it is packaged,” he says. MPA

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water Just add

In these uncertain times, franchising offers entrepreneuriallyminded brokers the opportunity to be in business on their own, but with the comfort of a well stocked head office to rely on. Check out MPA’s broker franchise buyer’s guide

ranchising has been called the “just add water” approach to building your own business. It’s also been described as choosing to ride a bicycle with the training wheels still on. But either way, it is an attractive option for brokers looking for a tested formula for business success. New brokers might find the franchise model particularly eye-catching. It provides education, marketing, and ongoing support. In a nutshell, franchising offers the firmest foundation from which to launch a business. But, far from being sedate, the franchise world is robust with franchisors competing fiercely to

maintain and gain market share. This was particularly apparent during the tumultuous GFC period, as increasingly independent brokers sought out the shelter of established brands. Accordingly, many franchisors have sharpened their offers in recent times; both to attract new recruits and keep their existing ones satisfied. To separate the wheat from the chaff and help researching brokers compare offers, MPA rounded up a few of the better-known brands and compiled this Broker’s Guide to Buying a Franchise. Here is what we found:

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franchise buyer’s guide

BEAT Home Loans Head office: Melbourne Chief executive officer: Sof Tsialtas Number of units: 30 Investment required: Up to $50,000 dependent on location Competitive advantage: + Exclusive rate beating home loan product + Autonomy over income through commissions control + Coaching and support + Access to aggregation platform + Exclusive territorial rights + Access to brand building and marketing assistance Although BEAT Home Loans is not a true franchise, it is a worthy entrant into this forum since it offers marketing and brand promotion to its members – called associates – as well as business coaching and rights to customers in exclusive territories. “BEAT Associates also have the unique benefit of being able to work independently and at the same time participate in the success of the group as a shareholder,” says Sof Tsialtas, chief executive officer of BEAT Home Loans. Tsialtas says BEAT associates become shareholders as well as operators of BEAT Association Ltd. Shareholders automatically acquire a part of its distribution channel, giving them full control of earnings through commission and pricing. “At BEAT we don’t tell franchisees what to do; we offer support and advice and help them to apply their skills to develop successful businesses,” says Tsialtas. The upfront investment made by associates returns them an equity ownership stake and provides them with the right to sell. “The BEAT network controls the margins and earns marketleading commissions – 95% of commission flows to the associate for branded and non-branded product,” he says.

Mortgage House Head Office: Sydney Managing director: Ken Sayer Number of units: 60

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Investment required: Zero Competitive advantage: + No start up cost + Mortgage House is its own funder + Provides access to other lenders With a partnership approach, there is no interference in a broker’s business. Although not strictly a franchise on account of the fact that it charges no upfront joining fee, Mortgage House provides its members with the tried and tested business systems required to run a business. Sean Bombell, general manager at Mortgage House, says the benefit to brokers of partnering with a franchised operation is that it offers them a certain consistency of brand and image. Mortgage House is in the unique position of existing both as a lender and as a provider of full broker capabilities. “By having our own range of products we are able to provide unique product attributes and enhanced customer experiences from initial turnaround times for approvals and post-settlement activities,” says Bombell. In addition, Mortgage House provides brokers with a range of support services. These include running a number of nationwide marketing campaigns and providing brokers with their own webpage as part of the corporate website. Also, Mortgage House provides a propriety system – called e-mms – to manage and process customers and their transactions. “We give brokers the rights to use the Mortgage House brand in an approved suburb; however, they are free to write loans anywhere in Australia, subject to state licensing. So we don’t cap their earning potential in any way,” he says. And Mortgage House has a history of sponsoring major sporting teams. This is something that generates great public awareness of its brand, says Bombell.

RAMS Home Loans Head Office: Sydney Chief executive officer: Melos Sulicich Number of units: 51 franchisees, 70 RAMS Home Loan Centres Investment required: $175,000–$250,000 working capital Competitive advantage:

Sof Tsialtas

“ … we don’t tell franchisees what to do; we offer support and advice and help them to apply their skills … ”

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scalable and gives each franchisee scope to grow their business,” says Kirkpatrick.

+ Recruitment process focus on quality not quantity + Support service levels; credit decisions are

typically provided within 24 hours + Direct access to credit team + Flexible franchise model; 12 months to establish a Home Loan Centre RAMS is a leading retail brand and competes strongly with its key competitors, says Clive Kirkpatrick, head of franchise at RAMS. “Our market research shows excellent brand awareness and affirms RAMS’ position as a well-regarded alternative to the major banks,” he adds. Kirkpatrick considers that it is the strength of RAMS’s franchise system, coupled with committed sales and business support, that gives its franchisees scope to build and grow sustainable businesses. In addition, the marketing team at RAMS is dedicated to growing franchisee distribution through the franchise channel. Kirkpatrick says a significant portion of the annual budget is allocated to promotions – “to maintain brand awareness and drive customer leads”. Each state in which RAMS operates has a dedicated state franchise manager who acts as a business coach, assisting franchisees with analysis and planning. Sales managers are also on hand for any training requirements. Franchisees get access to a competitive remuneration structure, designed to reward for extra effort. “The RAMS franchise model is

Club Financial Services

Simon Norris

“ A franchisee should enjoy the fruits of their labour … ”

First hand experience… Michael Richardson; branch manager at Caringbah Mortgage House, NSW Michael Richardson says the beauty of the Mortgage House model is that it gives him more time to focus on developing new business and building a referral network. “Alternatively as an independent, I would need to devote considerable time maintaining my name in the marketplace. The back office functions as an independent would also eat into my resources,” he says. He says it was the no joining or franchise fee and the promise of unlimited new business leads that first attracted him to Mortgage House. In addition, he acquired the tools to grow and run his business. “I have my Caringbah office dedicated web page. This is within the Mortgage House website, giving me greater access to potential customers. And having a free mortgage management system with head office people able to help with placing a difficult loan is great,” he says. Today Michael believes the best thing that he gets from teaming up with Mortgage House is the strong brand recognition that comes with it. He says the money he has invested is more than returned in the new leads generated through the head office advertising and marketing campaigns. “As the economy improves those leads are converting to new loan settlements.”

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Head office: Adelaide Managing director: Andrew Clouston Number of units: 25 Investment required: $30,000 Competitive advantage: + A genuine one-stop shop offer + A suite of mortgage managed products that lead to excellent referral business + Training and support through the Club Academy + Anytime access to dedicated Club Coach Franchising offers entrepreneurs the option of “being in business for yourself but not by yourself”, according to Simon Norris, director for sales and marketing at Club Financial Services. “A franchisee should enjoy the fruits of their labour while being able to rely on the support, guidance and expertise of their franchisor,” he says. Club Financial Services offer its franchisees access to an extensive range of products; from loans to financial planning and insurance, as well as accounting to property investments. Franchisees effectively become business centres. And specific to the loans side of its business offer, Club not only operates as a mortgage broker but also a mortgage manager with its own range of products, envious service levels and attractive commission structure. “You’re even allocated a Club Coach to assist you in growing your business,” he says. Compliance is an integral part of the mortgage broking business and Club franchisees benefit from consistent communication through a webbased communication centre. “With marketing templates, point of sale material, franchise manuals, lender information and application forms all housed in one place, it’s a ‘portal’ through which information can easily be shared,” says Norris. Also, franchisees enjoy exclusive geographical territories – all of which allow for the same income earning potential. They get access to RP Data property reports, as well as to a complete CRM system. “This allows franchisees to get on with the business of meeting and servicing clients,” Norris explains.

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The investment required to secure a Club territory is just $35,000 and is made up of two components; $5,000 for induction and the Club Academy Certificate IV, while the balance is the franchise cost. “We provide a proven system, leadership, support, motivation and innovation and a commission structure designed to reward those who are driven to succeed,” says Norris.

+ Established brand with good reputation + Heavy positioning in terms of consumer advocacy + Few remaining pure non-bank lenders + De-risking role of LaunchPad employment model

Lisa Montgomery says it is better to be tied in with a franchise operator because you get the benefit of having the support services from the parent. In addition, she says that events such as legislative changes, bank accreditation, aggregator changes, etc, make the franchise option more attractive now than ever before. Resi has spent the last six months developing its LaunchPad offering, a franchisee employment

Resi Head office: Sydney Managing directors: Peter James and Jim Christie Competitive advantage:

Vital statistics

Year commenced Number franchising of units

Territory

Panel

Investment required

Profit split

Length of contract term

Mortgage House

2001

NSW, Vic, Qld, SA, Tas

25 + self

Zero

Branded loans: 0.6% upfront commission and 0.15% trail. Third party loans: 80% of upfront and 50% trail

1+ option

Club Financial Services

2008

National

$30,000

Franchisees can receive up to 91% of commissions dependent on volume

7x6

Mortgage Choice

1994 (established in 1992)

349 franchises (325 franchise owners)

National

23 (with Macquarie and CUA to be added shortly)

$35,200 + 6–12 months working capital

Upfront payment of 0.3928% of the amount borrowed. Annual ongoing fee on balance outstanding – between 0.0229% and 0.0843% of the loan balance

5+5 year option

Century 21

2008

National

$7,700

n/a

3+3

Smartline

1999

220

National

$13,200

Between 70% and 80%

5+5

BEAT

2006

National

Up to $50,000 dependent on location

95% of commission for branded and nonbranded products

Equity ownership and licence with right to sell

RAMS Home Loans

2003

51 franchisees, 70 RAMS Home Loan Centres

National

n/a

$175,000– $250,000 working capital

n/a

5 years

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platform that Montgomery is particularly proud of. “What makes it so attractive is that it de-risks the whole proposition of moving across,” she says. It’s a unique model in that prospective franchisees come in as employees first. They get the benefit of having access to all the development programs available as well as having a competitive income. The Resi model offers franchisees exclusive catchment areas. In addition they get access to a “considered” national marketing program – but with local marketing support. “This provides back-end service so that franchisees can translate their ideas into real activity,” says Montgomery. Another unique Resi offer is its sales system. ResiWay provides a template for nurturing leads to create a “sustainable, repeatable, duplicatable” business. “Franchisees can rely on leads from a franchisor, but they really need to be a self generator,” Montgomery says.

For their investment, Resi franchisees get the benefit of having loads of national and local support. Montgomery says, “to get value-for-money back from your franchise fees, it is about what you are going to be investing in your business and what the franchisor will invest back into you.” And if that is in balance then value is attained by both franchisor and franchisee. Chris Acret

Smartline Personal Mortgage Advisors National head office: Sydney Managing director: Chris Acret Number of units: 220 Investment required: $13,200 Competitive advantage: + Strong client focus + Range of ‘trusted advisor’ tools and systems + Effective relationship-based approach to

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marketing + Systemised client care program + Franchisee input into the running of the group A franchise gives a business operator the best of both worlds – the chance to be in control of your own destiny and the support of a head office team to help build your business, says Chris Acret, Smartline’s managing director. “Being a small business owner you generally have to wear a lot of hats. Being part of a franchise means many of these aspects are taken care of for you, but you don’t have to give up your entrepreneurial spirit – which is still vital to the success of your business,” he says. Acret describes Smartline as a franchise that has broken the traditional, restrictive mould. Instead, he says Smartline has invested “huge sums of money” over the years in putting a highly systemised business infrastructure in place. “This provides considerable time savings for the franchisees and allows them to focus on building relationships and servicing their clients,” he says. Smartline doesn’t have territory restrictions.

From the horse’s mouth While being a club franchisee has given David a keen competitive advantage, he makes the point that David Wegener, managing director at the branding wouldn’t mean much Club Financial Services Norwood says without the correct systems to back it the franchise model offers a “whole up. “But the strength of the franchise lot” more support – from shared model behind me gives me the information to experience and systems. confidence and the expertise to do “Having these systems in place is what I do best and that gives me a big especially valuable as you don’t end up advantage,” he says. making the mistakes you would if you He says he is getting an adequate were on your own,” he says. return for the money he has invested More particularly, he says that Club in the Club franchise model – especially offers a very personal and very in the last 12 months. “I went into the dedicated group of people to work with. franchise from being a broker and now He says they are pro-active with his I employ five people. It would be next to business by being “always available”. impossible to find the time to keep up “The Club group as a whole is like a with the legislations, tracking the close-knit family of professionals all commissions and the marketing and all working together like a sporting team, the other things Club handles while always striving to get the best results,” trying to run a new business and write he says. loans,” says David. David Wegener, managing director at Club Financial Services Norwood

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“They’re just not relevant,” says Acret, “when so much of our business comes from personal referrals – 85% in fact.” In addition, Smartline keeps a flat structure in place, giving franchises direct access to the company’s directors. Franchisees also enjoy continual input into the running of the group through forums such as Smartline’s Franchise Advisory Council (FAC). Furthermore, maintaining a shop front is not mandatory; and many of its brokers share offices. Nor are franchisees required to contribute to advertising campaigns, given the franchisor’s referral-based marketing approach. “The thing I am most proud of at Smartline is our culture. It’s a team culture and it’s not common in this industry. Business is hard enough; having a positive team culture makes it much easier and more rewarding,” says Acret. Every new franchisee undergoes an intensive week-long residential training course at Smartline’s head office. This is followed by a structured accreditation program with its lender panel as well as an MFAAaccredited two-year mentoring program. Smartline also offers fortnightly ‘boot camp’ training sessions for both new recruits and other franchisees who may want to refresh their skills. The cost of a Smartline franchise has quite deliberately been set at a minimal level. Acret says its focus is on supporting its franchisees to create successful businesses rather than making a lot of money from the sale of franchises. “From the outset we knew we wouldn’t be successful as a group unless our franchisees were successful – I think that’s a philosophy that has differentiated us,” he says.

Mortgage Choice Head office: Sydney Chief executive officer: Michael Russell Number of units: 349 franchises (325 franchise owners) Investment required: $35,200 + 6–12 months working capital Competitive advantage:

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+ 16 years’ experience + A trusted brand; knowledge, integrity,

empowerment and convenience + Industry leading support mechanisms + Centralised marketing leads + Flexible franchise structure options + Unique policy and rewards program + Diverse product offering Michael Russell, chief executive officer at Mortgage Choice, says when you become a franchise owner, you hit the ground running. “You can quite easily leverage in your local area the franchisor’s national and metropolitan advertising, branding and public relations activities and results,” he says. At Mortgage Choice, all new franchisees are automatically part of a 12-month mentoring program with experienced (successful) franchisees. Also, the head office support offered should not

Michael Russell

“ You can quite easily leverage … the franchisor’s … advertising ”

be underestimated. At Mortgage Choice, this ranges from business and sales processes through training and continued professional development to PR, accounting and IT support. Within each state office, along with a state manager a franchise development manager will be on hand to help you grow your business, and a field marketing manager to help you generate and convert leads. The Mortgage Choice customer service centre receives and distributes group office leads that are generated by either national advertising or public relations campaigns. Mortgage Choice has a panel of 23 respected home loan providers, from the big banks through to smaller building societies and non-bank lenders. Bespoke Mortgage Choice software matches consumers with the most appropriate products and lenders, and franchisees also get their own, ready-made franchise website.

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Century 21 Head office: Melbourne Chief executive officer: Warren Stapleton Number of units: 33 Investment required: $7,700 Competitive advantage: + Unique position with Century 21 principles and salespeople + Access to full lending panel through aggregator AFG + Access to AFG SMART CRM system + Ongoing reinvestment into R&D and lead generation Chief executive at Century 21 Home Loans Warren Stapleton says the biggest advantage to any business owner considering a franchise is that they have the benefit of operating under an already well established brand with an equally well established distribution channel. “Franchising has become extremely popular in Australia over recent years, with many people seeing the advantage of operating under a strong brand and sharing a proportion of their income in return for sustainable business infrastructure,” he says. Brokers who choose to team up with Century 21 Home Loans get the benefit of running in step with an already large – and growing – real estate group. It means they get

automatic access to real estate offices that are actively selling and listing properties in every state. “I think right now professional mortgage brokers need to ‘fish where the fish are’ and customers want to know who they are dealing with,” says Stapleton. Bear in mind that financing the home is a natural extension of the purchase process. Century 21 Home Loans franchisees also get automatic and immediate access to a franchise development manager, who makes sure franchisees integrate smoothly with the sales agents and leverage direct referrals to maximum advantage. Franchisees also have access to a full panel of lender products through aggregator AFG. Regular training and professional development, as well as access to AFG’s SMART program is also part of the deal. “The SMART program is an outstanding CRM system that AFG manages on behalf of its members. It is designed to assist our franchisees with improving their customer retention and acquiring new customers,” says Stapleton. For their investment, franchisees get a 3+3 year agreement with the exclusive rights to operate under the strength of the Century 21 brand. This comes with the ongoing support of the franchisor; including a strong focus on research and development and reinvestment in lead generation. MPA

Verbatim… Ken Wilson, principal at RAMS Sydney South East The individual efforts of each RAMS franchisee combined with national marketing campaigns create a pooling effect, says Ken Wilson, principal at the RAMS Sydney South East franchise. “The brand seems to open doors that were not open before, and provides instant credibility for all my marketing efforts, rather than me having to explain who I am and how I fit in to the picture,” he adds. In addition, Wilson says that RAMS offers him “a small business environment”, and that helps in maintaining a high level of personalised service to his customers – but with both the backing and purchasing power of a major bank.

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He says there is a drift by customers back to dealing direct with the lender, and RAMS is perfectly positioned to capitalise on this trend without forfeiting the service attitude of being a self-employed franchisee. “RAMS have added more structure to my business including planning, marketing and access to a team of specialists that just weren’t available as an independent brand,” he says. Most people in the mortgage industry strive to deliver great customer service, but sometimes elements outside their control create barriers. But at RAMS, because of its dedicated credit team you deal directly with a decision maker, and this, Ken says, is what gives him the edge over the competition. “RAMS can give 48-hour unconditional approval. So while other brokers are still

trying to get confirmation that their deals are lodged, mine has already been assessed,” he says. Furthermore, Ken feels that the entry cost for a RAMS franchise is designed for franchisees to prosper, without the burden of high upfront outlays and borrowing costs. “When comparing other franchise models, I weighed up the size of each franchise territory, the upfront outlay required and the ongoing support from head office. The combination of these criteria highlighted RAMS as being extremely good value for money compared to other more front-end loaded options with smaller territories. For all the extra benefits of the RAMS franchise you still only pay a similar cost that you would normally pay to an aggregator,” he says.

Feature Q&A feature

Vow: balancing competition with partnerships After a fair amount of speculation, Vow Aggregation Services has finally launched itself into the Australian mortgage market, but exactly how does it plan to be of benefit to brokers? MPA sat down with its CEO Jeff Zulman to discuss Vow’s points of difference, strategies, and growth ambitions

ith the industry in skittish recovery mode now after the passing of the GFC, established and newly-invented market players are making their presence felt; each jockeying for vacant market position up for grabs again. An amalgamation of three aggregating businesses – The Mortgage Professionals, National Brokers Group and The Brokerage – Vow fits into the newly-invented category, and chief executive Jeff Zulman was keen to explain how it would work in a “Co-opetition” agreement with the banks as well as the ways in which brokers can expect to benefit by its existence, including being empowered against the whim of the bank lenders.

Here is what he said: What is Vow’s point of difference? Every good business claims to have a customer focus. For aggregators, it means a claim to having a special relationship with their brokers. But at Vow it’s the value we place on this relationship that we fervently believe differentiates us from our competitors. Empowering brokers is fundamental to what we want to achieve; we not only commit to listening to them but to acting on what we hear. Many brokers left secure jobs to build their own businesses, thinking: “I’ll be in control of what I’m doing.” Today, however, they feel anything but

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Feature Q&A feature

empowered. They’re at the whim of the banks; regulation is growing apace. We want to give them back their voice and participate in Vow. There are five points of difference that the entry of Vow into the market will offer brokers: • Allied services – Vow is focused on providing other services in addition to what aggregators traditionally offer brokers. • Listening – we have been working for more than a year to bring Vow to the market, and over that period we have done more than 300 hours of face-to-face interviews with brokers. This is why we are confident we have isolated the issues really concerning brokers. • Independence – some of our competitors are either owned outright or controlled by the banks. Vow is truly independent. While Vow recognises there has to be ‘Co-opetition’ (ie, co-operative competition between us and the banks) our founders, who have been in the business since the early days of mortgage broking, recognise that as the credit markets open up again new lenders will come into the market. They will value an aggregator that is independent, ethical, administratively sound and innovative. • Growth both organically and via acquisitions – Vow has made its intentions clear. We want to use the base inherited from three founding companies to grow organically, and, when the opportunities arise, to enhance this growth by acquisition. • IT excellence – it is Vow’s belief that there’s no IT platform that allows brokers to place their customers at the epicentre of their business dealings. Vow intends to offer such an IT system. What is the strategy behind launching the business now? The industry is consolidating – a trend Vow supports. Brokers today have to confront the biggest concentration of power since the early 1990s. Just look at the statistics: a few months ago the Big Four banks were writing 92% of all mortgages. Now it’s back to 88% but the banks are still calling the shots. So Vow has come into the market at a difficult, but, at the same time, exciting period in this industry’s evolution. Brokers know the industry is changing and want an aggregator that can work with them to handle this change. In this environment I think they are looking for

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Jeff Zulman

“ The way to work with a bank is to make the broker channel more profitable, more efficient than the branch channel. This is what Vow wants to do ”

an aggregator that will find ways to work differently with the banks and other lenders. I don’t mean in a belligerent way; they are our source of funding so while we are competitors we are also partners. The key is finding the right balance between competition and partnership. The banks are sophisticated businesses. They have a finite pool of capital and that capital is more restricted now than it has been for years; the GFC has shown that they must be prudent. No doubt banks are asking these questions: what does it cost us to acquire a customer directly through a branch? What does it cost us if we pay a broker to bring the business to us? Will our return on equity increase via the branch network or the broker network? So if you understand their mindset, then the way to work with a bank is to make the broker channel more profitable, more efficient than the branch channel. This is what Vow wants to do. What are the synergies that each brand brings to the Vow table? The three aggregating businesses that merged to create Vow – Sydney-based The Mortgage Professionals (TMP), National Brokers Group (NBG) from Newcastle and The Brokerage (TB) from Brisbane – were successful businesses in their own right. They all shared the value of service, of stressing the need to communicate with their brokers while remaining at the forefront. They all understood – and appreciated – the need to merge and generate the synergies that will come from Vow being one of the top five aggregators in the country. Our ability to realise value from this merger is because, as one entity, we have a scale that they didn’t have individually. Vow will have one central processing area in Newcastle. But, and it’s an important but, the merger will not come at the expense of the service culture and sense of extended family that was synonymous with TMP, NBG and The Brokerage. What response have you had from brokers? The response has been overwhelmingly positive. From the moment the ink was dry on the agreement in early February, I have been on the road talking to brokers from all three aggregators. From my conversations there’s no doubting the excitement Vow is creating in the market with its

Feature Q&A feature

message to empower brokers, to give them back control of their own destinies. With the demise of securitisation, an important alternative source of funding dried up. Some established lenders took their bats and balls and went home. But there are opportunities out there; change can be a positive force. Let me illustrate how change can work in favour of brokers by what Vow is doing in respect of IT. With IT, it’s often the way that some smart people design it and then take it to the market. But in this instance, we are designing a system that puts our brokers front and centre with their involvement from day one. The research we’ve done shows that most brokers get their leads and sources through referrals. So what’s today’s equivalent of word of mouth? It’s the electronic social networking forums – Twitter, blogging, websites. We’ve got to make that part of today’s platform. So it’s pretty radical compared with what’s out there.

Do you have any volume targets? When the merger was announced in early February, the combined business had loans under management of about $16bn, as at December 2009. Vow wants to use this base to grow organically, and, when the opportunities arise, by acquisition. That said, it will not be growth for growth’s sake – and the board does not have a target in mind. Growth will be done strategically, with the board and senior executives acutely conscious of the need to ensure that it does not come at the expense of our brokers. Growth will not be restricted to the home mortgage market. Brokers have a skillset that will enable them to not only provide clients with the best mortgage deals, but to offer an alternative in related financial services. This development won’t happen overnight, but Vow believes that there is a real opportunity going forward for brokers to use their networks to develop other businesses. MPA

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mpa lender news

contents 56 News: A review of news in the world of non-bank lending and mortgage management 58 In profile: Oxford Funding

Aussie John going back to his roots Aussie Home Loans is going back to its roots with a plan to ramp up the sale of its own home loans backed by securitisation. The move is the latest positive sign for the RMBS market, which is on the comeback after virtually suffering a shutdown when the GFC hit in 2008. Aussie’s founder and executive chairman John Symond said that he wanted to write “billions of dollars” of loans originated by Aussie and packaged for sale as RMBS. “We are going back on the attack and putting out home loans and instead of 95% of our loans being brokered it will fall to 75%,” he said. Aussie John said the strategy had already kicked off with the assistance of the CBA, which owns a third of the company.

$10bn 56

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Firstfolio targets exiting brokers for growth Firstfolio CEO Mark Forsyth is on the hunt to buy up loan books from brokers wishing to exit the industry. The aggregator is believed to want to increase its $20bn loan book to as much as $30bn by the end of the year. “We see opportunities in buying books from businesses which have gone to the wall, or increasing geographic presence through groups that survived the crisis,” Forsyth said. Firstfolio recently acquired Xplore Capital, Loan Services Australia and First Chartered Capital, which added $6bn to its loan book.

The size of the loan book increase Firstfolio is looking for by year-end

mpa lender news

Home loans next parcel out of the bag from an Australia Post bank?

Mortgage Choice looks to lend Mortgage Choice CEO Michael Russell is reportedly looking into funding options that would allow Australia’s largest independently owned mortgage broker to enter the $1 trillion mortgage market. Russell believes that a range of Mortgage Choice products would allow the company’s brokers to achieve a new level of consistency in processing and turnaround times. “My perspective is if we could go out there and source some funding and create a suite of products that is every bit as competitive as the best of the products we have on our panel, then we owe it to our customers to investigate that,” Russell told The Australian recently. The need to introduce its own line of mortgage products became apparent to Russell during the worst of the financial crisis, at a time when the banks were tightening their lending criteria causing borrowers to constantly call their brokers for loan updates. He said the time of signing to acquire a property was one of incredible anxiety – particularly for first homebuyers. “We need to be able to arrest that anxiety and let them know in a very short space of time that their loan application has been answered,” Russell said. At the time of going to press he had not made any decision on whether the new products would be branded under the Mortgage Choice name or otherwise.

20% The fall in brokered loans sought after by Aussie Home Loans

Christopher Joye, head of Rismark International, has suggested it is a logical move for an Australian Postbank to offer home loans. This it would do either by becoming a third party lender or providing whitelabel products. One proposal the head of former prime minister John Howard’s home ownership taskforce put forward would see Australia Post create a line of products to offer mortgages through an existing non-bank lender. Another would be to align with second-tier banks and credit unions. Australia Post already has the advantages of having an instantly recognisable brand and an unrivalled distribution network, Joye said. Speculation that Australia Post managing director Ahmed Fahour will create Postbank is gathering momentum, as the former NAB chief looks to strengthen the company’s balance sheet and increase profits.

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business Profile lender

Tailor-made customers can lose. “As a wholly-owned subsidiary Oxford retains its autonomy, while its customers enjoy the peace of mind of dealing with a dynamic funding partner who also offers large banking group security,” he says.

Rob Lamers

Specialist debtor finance provider Oxford Funding breaks down its product and service offering, and the challenges and opportunities that lie ahead for the debtor finance industry

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umble beginnings often underscore the promise of grander endeavours, and so it was with Oxford Funding which has progressed a long way since it started out 16 years ago, offering panel shop factoring to a handful of customers. In the ensuing years Oxford has expanded from a five-employee operation in Mount Waverley, Victoria, to where it is today – offering both confidential and disclosed debtor finance solutions to more than 400 customers across Australia and employing nearly 50 people. In 2005, Oxford became a wholly-owned subsidiary of Bendigo Bank. “Bendigo’s continuing investment ensures that we are well positioned to take advantage of the growing demand for debtor finance solutions in the Australian market,” says CEO Rob Lamers. For Lamers the arrangement is like a doubleheaded coin: neither the company nor its

Targeted approach Oxford Funding offers debtor finance solutions to primarily small- and medium-sized enterprises with turnovers of between $1m and $50m. “Debtor finance allows businesses to release the cash tied up in their debtor’s ledger, providing an immediate cash injection to meet business needs. The service allows businesses to manage their cash flows and to meet everyday creditor and payroll requirements without a bank overdraft or real estate asset security,” says Lamers. The facility can either be confidential, where the debtors are unaware of the facility, or disclosed. Here, a business might outsource all or part of its debtor ledger management including the issuing of debtor statements and the making of collection calls. Essentially, all debtor finance facilities function like a line of credit linked to sales. As sales grow, so does the potential size of the facility. This allows managing directors to fund their own growth on an even scale using the assets of the business, rather than some other form of collateral security – usually real estate. Generally, the industries and businesses most suited to debtor financing are labour hire firms, transport operators, wholesalers, manufacturers, smash repair businesses and printers. In the market, Oxford’s key point of difference is its customer-centric focus, according to Lamers. “We view customers and introducers as lifelong partners and, through our Australia-wide team of dedicated account managers and business development managers, we aim to build long-term customer and introducer relationships – and this is all based on business understanding,” Lamers explains.

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business Profile lender

Fast facts: Oxford Funding + Chief executive officer: Rob Lamers + Head office: Docklands, Victoria + Number of staff: 50 + Commencement date: 1994 + Parent company: Adelaide and Bendigo Bank + Business coverage: Australia-wide + Target market: SMEs with t/o of $1m–50m + Loan types: Confidential or disclosed + Security: Debtors book business arrangements

“ Post-GFC, many businesses need cash flow to fund their growth. As a result, we are seeing an increase in demand for our solutions ” Easy access Making it simpler to do just that is Oxford’s commitment to a flat internal structure. It means that customers get access to decisionmakers by speaking directly to those who sign off on the credit applications. And the company is still nimble enough to tailor-make the solutions it offers. “Oxford understands that every business is different and works with each customer to create tailored solutions matched to real-world business needs,” he says. Also, having direct backing from a trusted bank means Oxford has the benefit of a continuity of funding – another aspect in these uncertain times that provides customers with peace of mind, says Lamers. Also, by offering the option of a specialist collections team, customers are able to benefit by the outsourcing of their entire collections management function. “This way our customers can focus on growing and managing their businesses,” he adds. Other innovations that Oxford has come up with are to make selective funding available and to offer flexible debtor concentration limits. By taking advantage of the selective funding initiative customers can choose which debtors to apply their facility to without having to send their entire ledger in for funding. And the flexible limits mean larger debtors’ funding limits are mostly never limited by the size of any particular debtor. “Some competing debtor finance providers limit the funding they will provide in cases where a particular debtor accounts for more than 30% of a business’ ledger,” Lamers says. In addition, clients also enjoy the benefit of having instant online access to all account information and functions, 24 hours a day. “Oxford’s paperless online funding facility makes managing a debtor finance facility convenient and straightforward,” he says. Growing years They say that one person’s meat is another’s poison, and in the case of the GFC that adage has never rung more true than here in Oxford’s case. While it put paid to many Australian businesses, the GFC has actually provided Oxford

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with increased opportunities to grow its base. “Last year, many SMEs experienced cash flow difficulties, and it provided us an opportunity to assist businesses in their time of need – knowing that the economy would recover,” says Lamers. There is more growth ahead, too. “Post-GFC, many businesses are turning around and they need cash flow to fund their growth. As a result, we are seeing an increase in demand for our solutions,” he adds. But, the same as in any business, the company will need to overcome challenges as it forges ahead. Staffing is a particular challenge, says Lamers, since as a specialist financial provider Oxford requires qualified staff who are experts in their field. “With low levels of unemployment, however, the task of finding suitable, experienced staff is demanding.” Looking ahead, as product awareness continues to improve Lamers anticipates a continuing trend of industry growth. “More so as a result of business owners increasingly looking to secure their businesses with business assets, rather than real estate,” he adds. With ANZ and Bankwest leaving the debtor finance market in the last year, the industry has also seen an increasing amount of refinancing as customers partner with new specialist providers. According to statistics released by the Institute for Factors and Discounters, in both Australia and New Zealand debtor finance continues to record strong growth. Much of this is driven by demand for disclosed debtor finance facilities – often referred to as factoring, says Lamers. And the industry is already in a growth phase. In the last 10 years, industry turnover has averaged growth of 20% plus year-on-year. “Australia is essentially following trends in the US and Europe which has seen debtor finance become a mainstream financing tool for SMEs. In 2009, the industry turnover in Australia and New Zealand of $63bn was up from $31bn recorded just five years previously,” says Lamers. That said, and based on current growth rates, he expects the debtor finance industry total turnover to exceed $100bn within the next three years. MPA

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disengaged workers

the

disengagement epidemic B

eing disengaged at work can shave years off your life, lead to an early heart attack and cause you to fight with your family. New research from the US and Australia shows that workers are becoming more disengaged during the economic challenges we are facing. Many are feeling angry with their company for firing their friends or cutting benefits. Their reaction is to take power into their own hands and say “I will get back at them by not working as hard and being disengaged at work”. Sounds logical, but are they hurting themselves more than the company? There are three types of workers: Engaged worker – has a strong connection to their job and the company. They look to improve their performance and do their job better each day. They are enthusiastic and boost the culture. Not engaged worker – is the walking dead. They do their job but don’t have any enthusiasm, energy or passion for their work.

With all the talk about the impact of disengaged workers on business performance, it’s sometimes easy to forget it can have massive repercussions for individuals as well. Dr Adam Fraser outlines why

Actively disengaged workers – are toxic to the company; they undermine the business and engaged workers. You could say they have quit but haven’t had the decency to resign. According to Gallup, currently in Australia only 20% of workers are engaged, a whopping 63% of workers are not engaged and 17% are actively disengaged. This costs our economy between $33.5bn and $42.1bn in lost productivity alone. Focusing on the wrong thing! If you look at all the literature around engagement it always talks about how the company suffers if employees are disengaged. A company that has four engaged employees to every actively disengaged employee, grows 2.6 times faster than an organisation with one engaged to one actively disengaged employee. In addition, companies in the top quarter of engagement out-earn companies in the bottom quarter by 18%. (Taken from Gallup article, ‘Building engagement in this economic crisis’) You can’t argue with the numbers. It is obvious that a company needs to have engaged workers. But the average employee is far too self-centred and this issue of company performance does not appeal to their self-interest.

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disengaged workers

What about the individual? Rather than only focus on the company, why don’t we talk about the impact of disengagement on the individual? Gallup’s survey of Australian workers showed that 43% of ‘actively disengaged’ workers have admitted to treating their family poorly for three or more consecutive days. The fallout of engagement does not just end in the home. An English study published in the Archives of Internal Medicine followed a group of healthy men over 10 years. It found that men who were engaged at work were 30% less likely to suffer from coronary heart disease than those who were disengaged at work. The findings remained consistent even when the researchers controlled for age, ethnicity, marital status, educational attainment, socio-economic position, cholesterol level, obesity, hypertension, smoking, alcohol consumption, and physical activity. What this means is that work attitude was the defining variable. One of the contributing factors to this relationship between disengagement and heart disease is the fact that people who are disengaged at work report higher levels of stress compared to engaged employees. Moreover, a German study published in Psychosomatic Medicine shows that people who report high levels of stress at work have significantly higher levels of cortisol in their system. Cortisol is a stress hormone that is linked to a variety of metabolic diseases such as diabetes and heart disease. Engagement is also beneficial for your mental health. When you are engaged all you are thinking about is the present moment, you are paying attention to each detail and thinking ‘can I do this better, faster, more efficiently?’ Research by prominent psychologist Mihaly Csikszentmihalyi found that people with chronic depression and eating disorders feel a predominance of negative emotions and negative self-talk. However, when given a task to do that they engaged with, their emotions and thoughts were indistinguishable from those of people free of these conditions. In addition, it was found that the worst thing for people with depression and eating disorders was for them not to be engaged, as their mind becomes

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“ … people who are disengaged at work report higher levels of stress compared to engaged employees ”

occupied by depressing thoughts and their consciousness becomes scattered. This is true for all of us. Disengaged people in the workplace often say that they are bored and disinterested. Pause for a moment to think what happens when you put two children in the back of a car and go for a long drive. After 15 minutes what do you hear? “She hit me”, “He’s on my side of the car”, “He teased me”. A disengaged worker is similar to these children in the back of the car. When not engaged, their thoughts drift and they start looking for trouble. Office gossip, turf battles and in-fighting are fallouts from a lack of engagement at work. Can we start to choose to be more engaged in the work place? For most people, engagement is conditional: if my team is in a good mood I will be engaged; or my boss didn’t thank me for doing a good job so I won’t be engaged. Obviously, having a supportive and fun work environment makes it easier to be engaged. However, research shows us that highly engaged people don’t necessarily work in the best workplaces. Looking at all this evidence we can clearly see that being engaged in the workplace is one of the most important elements in our search for greater wellbeing. Can we start to expand the engagement conversation to focus on the benefits to the individual? What if a company focused on helping their employees to be more engaged at work so they had greater wellbeing, better health, and richer relationships with their family? Hmm, would you call them an employer of choice? MPA

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lifestyle favourites

Drink Beer of pretty much any description, and tea being a good Irish/Australian

David O’Toole + national sales manager + FAST

Favourite things Star If I could be anyone, I would be Jack Nicholson or Keith Richards!

Place to be On the 14th hole at Augusta, just through Amen corner with a three-shot lead and praying to hold on until I am in the clubhouse and comfortably at the 19th hole!

Food Unfortunately the list is endless, so broadly anything with pastry, Thai, Chinese – and always love anything from Rockpool and Rockpool Bar & Grill (Sydney or Melbourne)

Vacation spot Always love to get to Queensland for some sun and surf or Paris if I can get overseas, for pastries, bread and history Book Currently reading an old favourite, The Great Gatsby, but also recently finished A Week in December by Sebastian Faulks which is a satirical look at Britain today. He is best known for Birdsong set in World War I

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Sport From the above I think you could guess that I love a game of golf and I am very competitive. I really don’t like to lose Movie Anything with Jack Nicholson in it and either The Deer Hunter or The Godfather Part II as I also really like Robert DeNiro

Hobby Before starting in finance I was going to be a chef so cooking for family and friends is now my relaxing pastime, along with reading great books and cinema Music Depends on the mood, but roughly Exile On Main Street by the Rolling Stones when driving, The Cult when getting ready to go out and – embarrassingly – Simon & Garfunkel when I need to relax

“To be recognised as Australian Broker of the Year was a real win considering we were up against much larger broker groups and from a regional location. It justifies all the hard work and long hours myself and our team put in, in what was a very trying year in the mortgage industry…..I certainly recommend other brokers enter the awards. Our business received lots of press coverage and gave credibility to the business and my work.”

JOSHUA EGAN

WINNER: Australian BROKER OF THE YEAR AMA09

September 24, 2010 The Westin Hotel, Sydney

Online nominations open April 1, 2010 www.australianmortgageawards.com.au Official event partner

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