18 minute read
Mortgage franchises
The network broking a better future
Mortgage Choice takes aim at the top franchising spot with new technology, expanding opportunities and winning levels of franchisee support
THE INTEGRATION of Mortgage Choice and Smartline has created Australia’s second-largest franchiser in the mortgage broking space, with almost 1,000 brokers across the country.
Two experienced brokers, Mortgage Choice’s Scott Partridge and Smartline’s Deb Smith, talked to MPA about the support the expanded broker network provides.
Scott Partridge had a glimpse of his own future when a Mortgage Choice franchisee helped him secure his first home loan.
“I’d always wanted my own business, and I really liked the idea of helping people with the homebuying process,” he says.
His main concern was that his skill set might be too limited for the role.
“I’m not good at IT or building a brand at a corporate level, and I’m not a fan of managing the human resources side,” Partridge says. “I was very happy to discover that the Mortgage Choice support system was set up to provide help in all of these areas, leaving me free to do what I do best.”
The industry has transformed in the 24 years since Partridge bought his first franchise.
“Things are still changing fast, particularly in terms of IT, so support is as important as ever,” he says. “Being able to pick up the phone and have someone resolve any IT issues results in far less downtime and greater e ciency for my sta and I. Mortgage Choice also serves as a conduit of information about changes in lender and legislative requirements, so we can be confident about staying up to date.”
Partridge was just 26 when he opened a
Sponsored by
Mortgage Choice o ce in Parramatta, western Sydney. He sold it nine years later to Crowe Howarth, spent the next nine years managing that business, and then, in 2016, decided to buy another Mortgage Choice franchise.
“I had the opportunity to join another group, but I’d seen the value Mortgage Choice adds to both running a business and, ultimately, the sale price when the time is right to leave,” he says. “I had no hesitation in choosing Mortgage Choice.”
Now based close to Parramatta in Sydney’s Hills District, his franchise has clients ranging from medical and IT professionals to tradespeople and teachers.
“I find it particularly rewarding when I can help people in di cult situations achieve positive outcomes,” he says. “I also enjoy building relationships. I’ve had the privilege of assisting first, second and even third generations of the same family.”
Making it happen Deb Smith’s journey as a broker began at Smartline, which along with Mortgage Choice is now owned by REA Group. Over the next 12 months, Smartline franchises will transition to the Mortgage Choice brand.
“I was ready to leave my corporate job in customer experiences and operations management to start my own business, but I had no idea what I wanted to do,” Smith says. “My brother, a mortgage broker himself, put the idea on the table and suggested I gave this some thought. He knew I had always loved real estate and that I have a passion for great service and building great relationships.”
Like Partridge, Smith was unsure about having the right skills.
“I’ve always been relatively sharp with fi nancial wellbeing but didn’t have a fi nancial background,” she says. “Smartline was awesome. When I decided to take the plunge, I was on a hell of a learning curve, but they helped me to establish my business and ensured I had everything I needed for success.
Scott Partridge, Mortgage Choice
That included setting me up with the right mentors, organising training with lenders, and showing me the best way to start prospecting my network.”
Smith also welcomed the opportunity to concentrate on her strengths.
“Smartline makes everything happen from a compliance, business insurance and systems perspective, which allows me to focus on getting outcomes for my clients,” she says. “This is what
REA GROUP: VIEWPOINT
I want to be doing and what I do best. I can trust the state and head o ce teams to know what needs to be done and to do it for us, such as making sure we’re meeting all compliance standards, have the right insurance in place and undertake whatever training we need to meet legal requirements in our business.”
After three years in Kew, Victoria, Smith decided on a tree change: she moved to the Macedon Ranges and set up an o ce in Wallan.
“Mortgage Choice, a nationally recognised and trusted brand for almost 30 years, now sits alongside Australia’s number one address in property, realestate.com.au. This places Mortgage Choice in an unrivalled position to directly benefi t from REA’s highly engaged audience as well as its investment in digital capabilities and property insights.
“With more than 128 million visits to realestate.com.au every month, REA Group sees a signifi cant opportunity to strengthen its experience for consumers by better connecting potential buyers to arguably the most crucial step in their property journey: fi nancing the purchase of a home or commercial premises.
“There are exciting initiatives already underway to deliver stronger broker and consumer experiences. The loan tracker feature on realestate.com.au alerts homeowners consumer experiences. The loan tracker feature on realestate.com.au alerts homeowners when savings could be made on monthly repayments, or when there might be equity to when savings could be made on monthly repayments, or when there might be equity to unlock, providing more reasons to speak to a broker. Our strategic unlock, providing more reasons to speak to a broker. Our strategic investment in Simpology has led to the launch of a new loan investment in Simpology has led to the launch of a new loan comparison experience, and we have also engaged in an open comparison experience, and we have also engaged in an open banking proof of concept with Frollo.
“At REA Group we are committed to changing the way “At REA Group we are committed to changing the way Australians and the world experience property, and Mortgage Australians and the world experience property, and Mortgage Choice will play a vital role as it helps new and future generations Choice will play a vital role as it helps new and future generations achieve their homeownership dreams.” – Janelle Hopkins, CFO and CEO fi nancial services Janelle Hopkins, CFO and CEO fi nancial services
MORTGAGE FRANCHISES
“Wallan is close to home, so it makes sense,” she says. “My business is built solely on referrals, so I have clients from all over Melbourne – mainly young people who are moving to the more a ordable outskirts of the city. Many are buying their fi rst home or building on one of the many lots of new land being released in the area.”
Leveraging success Both brokers are excited about the advantages of Mortgage Choice and Smartline joining forces and leveraging the best of the two businesses. Merging two cultures can be a major challenge, though in this case they proved to be a great fi t.
“There’s camaraderie among the Mortgage Choice and Smartline teams,” says Partridge. “Coincidentally, the franchisee who inspired me to join Mortgage Choice all those years ago later joined Smartline. Now we’re back on the same team.”
For Partridge, listening to the way others manage and grow their businesses has always encouraged new ideas, and a fresh approach is inspiring.
“We have forums on Facebook where we can share scenarios and seek advice,” he says.
“During COVID, our personal development
days have largely been online, but face-toface meetings are now back on the agenda. Our annual conference is always a highlight, where relationships are built and input is received in formal and informal settings.”
REA Group, which owns both brands, plans to create Australia’s leading franchise broking network by leveraging the best of each. For example, Mortgage Choice is one of Australia’s most trusted and recognised broking brands, with over 95% consumer brand confi dence.*
“Having a brand name that is immediately recognisable as one of the largest networks in Australia brings a level of trust that simply isn’t found among most of our competitors,” Partridge says.
By the end of 2022, all brokers at both companies will unite under the Mortgage Choice brand and will use Broker Platform, the purpose-built software developed for Mortgage Choice. For the past four years, its fact-fi nd and fi le management capabilities, plus the ability to integrate with multiple systems, have been helping brokers increase their productivity and create better business outcomes for themselves and their clients.
Brokers will also be able to link to REA’s digital capabilities, property insights and highly engaged audience, making Mortgage Choice the leading proposition for anyone considering joining a franchise network.
Smith is looking forward to the changes.
“I’m sure adopting Mortgage Choice systems and processes will further hopefully streamline my business more,” she says. “Being part of REA Group will give us amazing insights into the real estate world with all their data.”
Deb Smith, Smartline Personal Mortgage Advisers
MORTGAGE CHOICE: VIEWPOINT
“Last month Smartline and Mortgage Choice passed a signifi cant milestone as we moved from planning to execution on our path to becoming one business. It’s an incredible feat as we bring together nearly 1,000 brokers under the Mortgage Choice brand.
“Smartline and Mortgage Choice have a rich heritage in this industry, spanning three decades, and over that time each business has shared the fundamental value of truly placing the client fi rst.
“It’s this same value that provides our foundation for the future. We have always been real and relatable to our clients. We will continue to communicate with honesty, been real and relatable to our clients. We will continue to communicate with honesty, transparency and simplicity. Most importantly, we will continue to be the guiding stars for transparency and simplicity. Most importantly, we will continue to be the guiding stars for aspiring homeowners. These traits are some of the reasons why our owners took the brave aspiring homeowners. These traits are some of the reasons why our owners took the brave decision to leave a bank and start up their own businesses so they could be decision to leave a bank and start up their own businesses so they could be all of this and more for their clients.
“Not only have we helped make the great Australian dream a reality “Not only have we helped make the great Australian dream a reality for hundreds of thousands of clients, but we have also supported the for hundreds of thousands of clients, but we have also supported the creation of hundreds of incredible small businesses. As we turn the creation of hundreds of incredible small businesses. As we turn the page and begin the story of our next 30 years, Mortgage Choice will page and begin the story of our next 30 years, Mortgage Choice will continue to do what it has always done. We will support franchisees with continue to do what it has always done. We will support franchisees with the tools they need to deliver the best outcomes for their clients and the tools they need to deliver the best outcomes for their clients and build sustainable and successful businesses.” – David Zammit, director – national sales
SPECIAL REPORT
Australia’s top young brokers have brought more dynamism and resilience to the business
CONTENTS PAGE
Feature article .............................................. 62
Methodology ................................................
Rising Stars 2022 ........................................ 63
65
RISING STARS 2022
NEW ENERGY FOR THE INDUSTRY
THE SHAPE of the home loan lending industry in Australia continues to evolve with extensive structural change taking place in the last 12 months.
One of the developments is National Australia Bank’s agreement with Citigroup to purchase the latter’s Australian consumer business – including its mortgage and unsecured lending books – for approximately $1.2bn, according to reports by mortgagebusiness.com.au and other sources.
O cial mergers were also announced between the Firefi ghters Mutual Bank and Firefi ghters Credit Co-operative in May, and between the Teachers Mutual Bank and Pulse Credit Union in November 2021.
Several other major lending institutions, including Heritage Bank, Newcastle Permanent and South West Credit Union, are said to be contemplating mergers.
RISING STARS BY GENDER
Due to the surge in housing prices, Westpac and the Reserve Bank of Australia announced their decision to tighten their lending policies.
Retail banks have increased fi xed mortgage rates from their trough below 2% to cover their costs, and a further o cial increase is expected, reported the Sydney Morning Herald. Citing ANZ senior economist Felicity Emmett, the SMH report stated that fi xed rates could rise slightly before stabilising, after three-year rates rose more than 80 basis points over the last few months of 2021.
The Rising Stars featured in this report have had to contend with even further adjustments because lockdown periods meant that broker accreditations issued by banks were not always processed within the usual timeframe, leaving some applicants awaiting their authorisation for extended periods.
10
15
Danielle Pierre, Mortgage and Finance Solutions
The spotlight on new talent
Twenty-fi ve exceptional mortgage professionals, all aged under 35, have made their mark in the industry during a period of unprecedented uncertainty.
Exceeding expectations and eclipsing their competitors, the Rising Stars have all written more than $15m in loans over the last 12 months after working as accredited brokers for only two years and made the proverbial lemonade from lemons during the pandemic.
Lee Hao (Jiangshan) of AUSUN Finance is a shining example of an individual possessing the imagination and tenacity
FROM THE SPONSOR
We are honoured to once again sponsor Mortgage Professional Australia’s Rising Stars report in 2022. As one of the fi rst digital banks to invest in the broker channel, ING has always championed its growth and longevity. We know that for a sustainable mortgage broker industry, it’s essential that young entrants continue to enter the industry and build their careers.
As 90% of ING home loans originate via the third-party channel, brokers are not merely a distribution channel for ING but an integral part of our business. The Rising Stars in this report exemplify the traits of a successful broker: customer-focused, driven, dedicated and resilient. ING is committed to supporting the development of such young talent in the broker market.
In 2021, we have seen an evolution in how mortgage brokers operate. The pandemic has taught us to be fl exible and able to adapt to a changing environment. This is exactly how the Rising Stars have demonstrated their ability to grow amidst the challenges. They demonstrate the qualities of top performers and will continue to thrive. It gives me great pleasure to recognise the achievements of the nominees in MPA’s Rising Stars 2022 and to celebrate their hard work and dedication to the industry.
Congratulations to the Rising Stars and all the nominees.
Glenn Gibson
Head of Customer Experience, Service and Distribution ING
Jun Sun, AUSUN
required to make this prestigious list.
“Although our o ce had been closed intermittently and not fully operating, Lee continued to contribute by promoting the company, training new interns, and opening the new branch. Lee obtained his broker accreditation in January 2021. However, with most of the country under lockdown, he did not receive his accreditation from banks until much later. Under such circumstances, Lee still managed to settle nearly $25m in total. He proactively used online meeting software and social media to engage potential business referrals and ensure business pipeline growth,” says AUSUN founder and managing director Jun Sun.
This resilience in the face of adversity is a common trait among the Rising Stars.
“As a driven individual, goals are important to me,” says Danielle Pierre of Mortgage and Finance Solutions. “I set this award as one of my goals when I sat down with my mentors, but my biggest accolades have been the feedback I receive from my clients, for example, ‘We will defi nitely keep you in mind for any of our future needs and would absolutely recommend you to friends and family’; ‘Wow! A broker that follows through and does
METHODOLOGY
Mortgage Professional Australia invited the most impressive mortgage companies in the country to nominate high-performing achievers for the 11th annual Rising Stars (formerly Young Guns) list.
All nominees must be 35 years old or under, must have written more than $15m in loans from 1 October 2020 to 30 September 2021, and must have worked as accredited brokers for no more than two years.
Brokers presented their submissions to MPA, detailing why each individual deserved to be considered, and recommendations were then taken from their peers to decide who made the fi nal cut.
After thoroughly reviewing all entries, the MPA team narrowed down the list to 25 Rising Stars who have made the most signifi cant impact on the industry through their fi nancial results, determination and drive.
RISING STARS 2022
RISING STARS BY LOCATION
VIC 10 NSW 9 WA 3 QLD 2 SA 1
Steven Brent Korner, Glass Financial Group
what she says she is going to. We couldn’t be happier’; and ‘Give Danielle a raise, please!’”
Another winner, Jennifer Campbell, achieved Elite Broker status in her fi rst year as a broker with the Loan Market Group, exceeding all the requirements for the category. Her exemplary standards saw her receiving a net promoter score of 99 and multiple Google reviews, all while welcoming her fi rst child into the world in May 2021.
Business with a social purpose
The pandemic has undoubtedly created a shift in societal priorities. On close inspection, the motivations of this year’s fi nalists have proven every bit as admirable as their economic success.
Shubham Bhaskar of Sheel Capital has submitted $52m in loan applications. These requests were made up of commercial property investments, restructuring of mediumto-large-size investment property portfolios, and fi rst home buyers who wanted to make the most of the low interest rates.
Bhaskar, however, believes in sharing not only knowledge but also material wealth. He has already donated $2,000 to a not-forprofi t organisation in the last six months and plans to donate a further $8,000 before the end of the fi nancial year.
Steven Brent Korner of Glass Financial Group previously worked in fi nancial planning. After switching to broking, he has assisted close to 100 people in buying their fi rst home during a turbulent year and echoes many of his contemporaries’ sentiments.
“I became a broker because I really wanted to help people change their lives. I left being a fi nancial planner because I felt like the fees we were charging were too expensive and [therefore] I wasn’t able to assist the average person to achieve fi nancial freedom. My transition into mortgage broking was fuelled by this – to ensure I can help as many Australians as possible,” he says.
Mat Kirk, fi nalist from Empower Wealth Mortgage Advisory, agrees with Korner, revealing that his career goal is to ensure his clients are “safely secure in their dream homes” and to “help many more Australians become fi nancially free”.
Contemplating her future in the industry, Danielle Pierre adds: “I just want to look back on my career, when I retire, and have thousands of clients say ‘Danielle really cared about me’.”
Shubham Bhaskar
Founder and Director Sheel Capital
Phone: 0408 456 777 Email: shubham@sheelcapital.com.au Website: sheelcapital.com.au
Sabrina Huang
Director Smart Mortgage
Phone: 07 3195 7299 Email: sabrina.huang@smartmortgages.com.au Website: smartmortgagebne.com.au
Adam Piper
AXTON Finance
Andrew Hadjidemetri
Australian Financial and Mortgage Solutions
Ansh Sethi
Mortgage Domayne
Blake Murray
Blue Crane Capital
Danielle Pierre
Mortgage & Finance Solutions
Danny Alvarez
Simplicity Loans and Advisory
Edward Ta a Shore Financial
Elliot Hitchen
Bespoke Finance Group
Eva Loisance
Finni
Isabella Constantinou
Simplicity Loans and Advisory
Jamie Currie
Preferred Private Lending
Jennifer Campbell
Loan Market
Leah Hutchinson
MoneyQuest Cronulla
Lee Hao (Jiangshan)
AUSUN Finance
Luke Simon Rowland
AXTON Finance
Mat Kirk
Empower Wealth Mortgage Advisory
Melissa Long
Empower Wealth Mortgage Advisory
Michelle Della-Vedova
Napoleon Finance
Nigel Ferreira
MoneyQuest South Yarra
Nittaya Phommachack
Entourage Finance
Peter Jin
Keylend
Rachel Eveson
Bell Partners Finance
Steven Brent Korner Glass Financial Group
