Broker. June 2019

June 2019

Magazine

REFERRAL BUSINESS

& HOW TO GENERATE MORE OF IT

PETER SWITZER’S

POST-ELECTION ECONOMIC OUTLOOK

man on a

MISSION

PETER WHITE AM TALKS INDUSTRY FUTURE PROOFING, ACHIEVEMENTS AND SOCIAL RESPONSIBILITIES

HOW EDUCATED ARE MORTGAGE CONSUMERS? • FIRST HOME BUYER MARKET • MENTAL HEALTH

L

CONTENTS

48

cover story

Peter White AM

MAN ON A

06 FROM the chair INDUSTRY NEWS 08 AGGREGATOR NEWS 14

With Tony Carter

Pushing the industry forward

Better customer outcomes through better education

18

Lender news Rejected by banks: SMEs

struggle to secure finance

first home buyers re-enter the

26

property market

By Grant Bailey

get out of your head

28 One flew over the business nest 34 38 Dispute resolution post-election opportunities for 40 brokers

By Sam Makhoul

By Natasha Hawker

By Zak Wilford

By Darrin Davies

46 debt is not a four-letter word 54

repeat referral business

By Martin Grunstein

By John Dickinson

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Broker Magazine

MISSION

EDITOR & HEAD OF CONTENT Peter White MANAGING EDITOR Krystal Camilleri STAFF WRITER Rachel Licciardello

42

post-election economic wrap Peter Switzer

CREATIVE DESIGN & PHOTOGRAPHY Jodi Hadcroft Jessica Camilleri Matthew Gianoulis Krystal Camilleri ADVERTISING Krystal Camilleri TELL US WHAT YOU THINK We appreciate hearing from readers. If you have feedback, news or have a story idea you would like us to cover, please contact us using the below details NEWS, ADVERTISING AND ADMINISTRATION e: editor@fbaa.com.au p: 07 4721 1174 w: www.fbaa.com.au All information and images are subject to copyright. No part of this publication may be reproduced without prior permission in writing to the Finance Brokers Association of Australia Limited. The views and opinions of the authors and advertisers do not necessarily reflect the opinions of the publisher.

While every effort has been made to ensure the accuracy of information at the time of publishing, the publisher accepts no responsibility or liability for errors, omissions or subsequent consequences including loss or damage from reliance on information in this publication.

Broker Magazine

5

FROM The Chair with Tony Carter

S

ince last edition, the FBAA Board has been fully consumed with the totally unexpected recommendations of the Royal Commission which had direct impact on the Finance Broker industry.

These recommendations were, in the view of the Board, beyond belief.

Our Managing Director Peter White doubled down on his advocacy and lobbying work with all major political parties and a number of the smaller yet influential parties. This work saw him crisscross the country, hold hundreds of meetings with all walks of politics, run a constant social media flow of information for members. In the middle of all this chaos and extra work pressure he has managed to produce a formal response to the ASIC review of RG 209.

Without doubt, FBAA and the entire Finance Broker Industry is extremely fortunate to have such a qualified and experienced person at the helm. I am confident a number of the outcomes are as a direct result of his personal effort.

Peter, thank you for your solid work and great outcomes. Also, and importantly thank you to your wife, Janet, and family for the sacrifice you have made during this important time.

It is also my great pleasure to announce that Peter White has been awarded in the 2019 Queen’s Birthday Honours. He has been awarded Member (AM) of the Order of Australia (General Division).

This is a very well-deserved award and recognises Peter’s many years of giving service and support to the Finance Industry and to those suffering mental health issues, through his work with RUOK Day, Beyond Blue and The Sanity Space Foundation. I encourage you to congratulate Peter on his LinkedIn page. Click here

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Broker Magazine

None of the work done on your behalf in this period is without cost, and I can identify over $100,000 in additional expense incurred by FBAA as a direct result of the Royal Commission. Your money. We take this very seriously and you can be assured your Board is working with FBAA management to identify ways of recouping cost and also continuing to provide first class services to the members whilst remaining fiercely independent of major banking interests.

The business of bringing added value to FBAA members has continued during this time and on 1st July 2019 FBAA will launch a new purposebuilt app specifically for membership processing.

Simple, quick and with a professional interface for the members and fastest processing time ever achieved, this app is industry-leading and will transform a long, detailed and drawn out process allowing you to get to the business of Finance Broking sooner.

In early July we will be meeting with all State Presidents to review and plan for the coming year. If you have any suggestions as to how FBAA can serve you better please contact your State President or the FBAA General Manager with your ideas.

Thank you to the membership of FBAA for your ongoing support. We ask that you do all possible to encourage your peers to also join as FBAA members. The more members we have the greater the value and benefits we can offer back to you.

Tony Carter Chairman

As the dust settles following May’s Federal Election, FBAA says it’s time for the industry to push forward, for brokers to expand their businesses and have confidence in the future of the broking sector.

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Broker Magazine

INDUSTRY UPDATE

Pushing the industry forward

Broker Magazine

9

INDUSTRY UPDATE

Pushing the industry forwa

W

ell, we’ve weathered the storm of the 2019 Federal Election, and in many regards have come out on the right side. While the Coalition had initially said it would ban trail commissions for brokers from July 2020, it later delayed its stance and said it would review matters in three years’ time. I sent Stuart Robert a text the day after the May 18 election while he was still our Assistant Finance Minister, to pass on the FBAA’s congratulations.

I also liaised with various key senior Labor ministers to pass on our commiserations. We will continue the great relationships that we’ve built within the Labor Party, and continue to talk with them and liaise with them whilst they’re in shadow government over the next three years.

Services and Financial Technology.

Minister Hume’s experience comes from working in the banking and superannuation industries, for the likes of NAB, Deutsche Bank and Australian Super, and I look forward to meeting with her and talking through the issues we have within the broking sector to get them on her radar the right way. I look forward to building a relationship with Minister Hume to ensure members’ and industry’s voices are heard and understood.

There are issues we have been working through with previous ministers, which I have reignited with the new Minister, such as finalising various recommendations from the Royal Commission, lenders mortgage insurance disclosure and credit card legislation.

NEW FINANCE MINISTER

LENDERS MORTGAGE INSURANCE

With the re-elected Federal Government has come a new ministry. Josh Frydenberg remains Treasurer, with Michael Sukkar appointed Assistant Treasurer, and Jane Hume has been appointed our portfolio in her role as Assistant Minister for Superannuation, Financial

The FBAA has been a champion of government trying to get lenders mortgage insurance right for a long time. Our concern is that we need to look at how lender’s mortgage insurance is properly disclosed so that it is transparent to borrowers. I’ve documented it to Stuart prior to

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Broker Magazine

the election date, and have now raised it with Jane Hume.

CREDIT CARD LEGISLATION The other piece we continue working on from last year is regarding credit card legislation.

There’s an upswing in that leg of the legislation due in July this year. We have concerns with the impact it could have back into lending in the country. We have also now raised this with our new minister and will report updates to you.

ROYAL COMMISSION The most pressing, and unexpected, issue for our industry in recent months has of course been the Banking Royal Commission’s recommendations regarding mortgage brokers.

Minister Hume will work with Treasury to formulate the proposed new industry working group which will respond back to the other components of the Royal Commission. Regarding the Liberal Party’s position for a three-year review of the industry, we want to make sure we get a check-and-balances review, and not a review with intent to change as was proposed in the Royal Commission.

ard The future of brokers’ remuneration has sat under a question mark since 2014. A review in three years will be over eight and a half years this industry has sat with that question mark over its’ future, and that just can’t be allowed. I have this already placed with the Minister and am awaiting confirmation of our meeting to discuss these issues with her in person. The proposed Treasury Working Group will look at many components regarding the Royal Commission, and that could take time. It is likely that it won’t happen overnight; this is a long-term project if done right.

ASIC REVIEW RG209 The FBAA has completed a 27page submission to ASIC around the ASIC review of RG 209, which is, as you would know, around responsible lending conduct.

This is a major review within our industry, and as such, I imagine this 27-page draft will be the first of a number of submissions the FBAA will prepare. We will spend considerable time in 2019 focused on responsible lending obligations and conduct and how these are documented in ASIC’s guides. We will update you as we progress.

FREE MARKETING ASSETS FOR MEMBERS If you haven’t already, I encourage you to access the free marketing assets available for members to use, which promote the benefits of consumers choosing a broker over a bank. These are easy to download, and use on social media. These assets are powerful statistics, already designed and ready for you to post online with your own caption promoting your business. Go to the FBAA website to download.

Peter White AM Managing Director

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Broker Magazine

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Broker Magazine

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Are Australian consumers educated when it comes to mortgages? Many are not, writes Tanya Sale of Outsource Financial.

But, therein lies opportunity for brokers to educate and empower customers‌

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Broker Magazine

Aggregator news

Better customer outcomes through better education

Broker Magazine

15

AGGREGATOR NEWS

Better customer outcomes throu H

ow do loan writers not only survive but thrive in a changed environment? By empowering consumers through education, writes Outsource Financial’s Tanya Sale.

It is no secret that the current lending environment is challenging to say the very least. This is not going to change which is leaving a number of loan writers pondering their options – find another career or adapt to the new environment and get on with it. Simple? No, of course not.

So much has been written about changes in lender policies and practices that I would need to write a book just to go through them and trust me it would not be a bestseller! So, let’s concentrate on how loan writers not only survive but thrive in this new environment. What are the potential options?

Let me give you some insights on what is actually happening in the consumer world.

Consumers are not experts on home loans. ME Bank conducted a basic property buying literacy quiz of 1000 Australians in 2018 and results showed 61% of first home buyers failed, as did 27% of owner occupiers and 25% of investors.

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Broker Magazine

A recent Westpac poll showed that approximately 40% of Australians do not know how refinancing works and almost 50% don’t know what home equity means or how an offset account operates.

Furthermore, the research showed first home buyers don’t understand there is no cooling off period when buying at auction or that a deposit must be paid on the day of purchase, that mortgage insurance covers lenders not borrowers and that 66% don’t know what conveyancing is.

“…approximately 40% of Australians do not know how refinancing works and almost 50% don’t know what home equity means or how an offset account operates.”

Whilst this information is quite disturbing, what it says to us as an industry is opportunity. As I like to tell anyone who is willing to listen to me, education is empowerment, not only just for mortgage brokers but also for the consumer and the research above clearly cements

that fact and shows us that we have a long way to go to address Australians’ knowledge of all the intricacies of the mortgage world.

From the statistics it is clear that all types of borrowers are affected by a lack of lending knowledge.

We are also all aware that good consumer outcomes are paramount and the aim of regulators and lenders alike who are asking us as an industry – what are we doing to educate the consumer?

As an industry we are finding ourselves in an ever-changing environment. The role of the mortgage broker has evolved.

We began to hold forums with our members to address the new era of consumer education which would assist in leading to a good consumer outcome. One of the initiatives implemented that proved very successful was a quarterly webinar for mortgage broker clientele/consumers.

ugh better education The topics ranged from explaining credit reports, living expenses, the effects of an offset account, the advantages and disadvantages of fixed versus variable interest rates, lending policies and challenges for first home buyers, how government

policy will affect investors and SMSF lending parameters, to name a few.

So, my question would be then: What are you going to do about it?

Such a simple innovation has had a profound effect not only for the mortgage broker but also for their clients.

Tanya Sale Chief Executive Officer

Broker Magazine

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Recent research has revealed 23% of SMEs seeking bank finance have been declined.

Here, says online lender OnDeck’s Global CEO, Noah Breslow, lies great opportunity for brokers to diversify their revenue base to include SME lending.

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Broker Magazine

LENDER NEWS

Rejected by banks: SMEs struggle to secure finance

Broker Magazine

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LENDER NEWS

Rejected by banks: SMEs struggle to T

he challenge of securing bank finance is seeing a growing number of small and medium enterprises (SMEs) turn to online lenders.

Research by leading online SME lender OnDeck highlights the problems that small businesses face trying to secure finance.

Two out of five SMEs have sought finance in the past. However, almost one in four (23%) has been knocked back by their bank.

Rejection rates rise to 37% among businesses that have been in operation for less than five years.

Mr Noah Breslow, Global CEO of OnDeck, says, “What is particularly concerning, is that one in three SMEs rejected for bank finance have had to reach out to family or friends for funding, or have simply resorted to using a credit card.”

Lengthy finance approvals hurt SME operations OnDeck’s research confirms that bank finance can be a timeconsuming source of funding for SMEs, often bringing with it the burden of a lengthy application and approval process.

Close to one-third (30%) of SMEs that have applied for bank finance say their business was negatively impacted by the experience.

The chief impacts reported by SMEs include: •

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57% - normal business activities were slowed or halted

Broker Magazine

“For SMEs, time is money, and the number of hoops that SMEs need to jump through to secure bank finance is clearly adding to the cost, and stress, of gaining much-needed funds.”

•

42% - had to delay the delivery of products/services

One in four SMEs will seek finance in the future

•

40% - were forced to delay debt payments

•

39% - had to delay buying new equipment

•

12% - were forced to postpone hiring new staff.

One in four (25%) SMEs plan to seek additional business finance in the future, a figure that rises to 39% of SMEs with 6–10 employees, and 56% of those with 11–49 employees.

Mr Breslow says, “For SMEs, time is money, and the number of hoops that SMEs need to jump through to secure bank finance is clearly adding to the cost, and stress, of gaining much-needed funds.

“As an online lender, OnDeck streamlines the finance process for SMEs, requesting far less information, and expediting the application and approval process by allowing key documents such as bank statements, to be uploaded directly to OnDeck online.”

“Clearly, there is strong demand for finance among the SME community. This offers a strong business opportunity for mortgage brokers to diversify their revenue base by expanding into SME lending,” notes Mr Breslow.

Growing numbers of SMEs turn to online lenders Among those SMEs likely to seek finance in the future, 65% would still try their luck with a bank, while 27% would dip into their personal funds.

o secure finance There is growing awareness of online lenders as a source of finance, especially among those businesses that have had a poor experience with mainstream banks.

One in five (22%) SME owners would consider an online lender, with the level of interest in online lenders rising to 42% for SMEs that have previously had an application for finance rejected by a bank.

Commenting on the findings, Mr Breslow notes, “Large numbers of Australians SMEs may not be reaching their full potential either

because they cannot secure bank finance, or because an inefficient and lengthy lending process is adding to the cost burden. It is important for SME owners to realise that more efficient funding options are available through online lenders.

“I encourage the broking profession to engage with online lenders and diversify their revenue base to include SME lending. By helping SMEs access the finance they need, this would be a winwin for brokers and the small business community,” concluded Mr Breslow.

About OnDeck. First launched in Australia in 2015, OnDeck Australia is part of the US-based OnDeck Group. Over the last decade, OnDeck Group has loaned over US$10 billion to 80,000 small businesses. Loan terms are tailored to each individual customer’s needs and circumstances.

About the research. AltFi research conducted online in April 2019 by Honeycomb Strategy across 430 SME owners Australia-wide. SMEs with fewer than 50 employees, annual turnover of $50,000–$5 million, and in operation for at least 12 months.

Noah Breslow Global CEO

Broker Magazine

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Broker Magazine

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Broker Magazine

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A fairer deal for Australian Businesses

F

unda Finance is a national non-bank lender on a mission to help small business owners reach their potential. How are they doing this?

By providing fair, tailor-made finance solutions, specially designed for SMEs. According to Funda’s Co-Founder and CEO Nathan Wright, “Funda understands the need for non-bank lenders within the Australian business landscape.

Access to finance is of vital importance to the growth of SME’s and therefore the overall health of the Australian economy”. With 97% of businesses in Australia being small businesses, Funda’s goal is to ensure fair finance solutions are available.

Funda client Ben Donaldson has been able to grow his business, Magnetic Shoe Co, thanks to Funda.

Ben had a new product on pre-order from Australia’s leading building supplier Stratco, after experiencing frustrating delays from a bank, Ben was able to get the required funding through Funda in 12 hours. This allowed for the manufacturing to proceed, fulfilling Magnetic Shoe Co’s customer orders. The business accessed $80,000 through Funda within 12 hours and was able to turn the loan into $260,000 in revenue.

A Better Solution For Your Clients Our loans give businesses an interest rate that is considerably lower than what some other non-bank lenders offer. We provide market leading loan terms of up to 5 years.

But not only that, we do not penalise our customers repaying their loans early.

Giving business owners the freedom to ensure our financial solutions are working in their best interest.

Funda don’t just assess loan applications against standard criteria but take into consideration an applicant’s specific situation. This includes having a member of the team personally assess each loan application rather than rely solely on computer algorithms.

As Funda focuses on solutions-based lending, it is able to help those who may not currently meet standard bank loan criteria. Whilst still providing all the benefits of alternative lending such as quick turnaround times, less paperwork and the ability to assess a business’ loan application based on their story, rather than the ridged metrics traditional banks rely on, they also offer much fairer cost of funds than others in the market.

Funda offers competitive commissions, individual client managers, and is open to partner with likeminded commercial and mortgage brokers who are seeking better options for their clients. If you think your clients could benefit from Funda’s business finance products, find out more at funda.com.au/partnerships

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Broker Magazine

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hello@funda.com.au

Broker Magazine

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EDITORIAL

Deposit Power have seen this reflected in their transactions with first home buyers, which increased from around 8% of total transactions in the last quarter of 2017 to around 12% in the last quarter of 2018.

Recently released Australian Bureau of Statistics (ABS) figures for March show first home buyers comprised over 27% of all new lending, marking that segment’s highest level since 2012.

by Grant Bailey General Manager

A

fter sitting on the sidelines for the past few years, first home buyers have reentered the market following a decline in property prices over the past 12 months, according to Grant Bailey, General Manager of Deposit Power.

“With the property markets cooling in Melbourne and Sydney since early 2018, first home buyers have deemed it’s now more affordable to achieve their dream of home ownership,” Mr Bailey says.

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The median house price in Sydney has been over $1 million dollars since March 2015. Based on the trend of recent price falls, that median is on track to go below that figure in the coming months.

“Sydney and Melbourne property markets have grown around 10% per annum for the past five years.

The recent property correction has been driven by reduced availability of credit as a result of APRAimposed restrictions that commenced in late 2014,” Mr Bailey says.

“This year Deposit Power is celebrating its 30th year of its launch in Australia and in that time, we have been through several property cycles. Each time the market has declined, we have seen increased uptake of the Deposit Power product by first home buyers,” he says.

The Federal Government’s recently announced First Home Loan Deposit Scheme, which will only strengthen the First Home Buyer market.

In announcing the scheme, Prime Minister Scott Morrison stated, “The First Home Loan Deposit Scheme will mean first home buyers won’t need to save for a full 20% deposit”.

Mr Bailey says the scheme’s benefits are about time, cost and creating opportunity. “One of the significant additional costs first home owners incur when they borrow more than 80% of the property value is Lenders Mortgage Insurance, which is often in the thousands of dollars. This initiative has the potential to do away with that significant impost as well.”

The First Home Loan Deposit Scheme has a proposed start date of January 1, 2020, and will be available to first home buyers who have saved at least 5% deposit, and earn under the income cap ($125,000 for individuals, $200,000 for couples).

The value of homes eligible for purchase under the scheme will be determined by region.

The Labor Party adopted the policy almost immediately after it was released by the Coalition.

Mr Josh Svenson from Central Coast real estate agency Property Central, notes that, “Compared to last year, there certainly appears to be more first home buyers looking, especially buyers from Sydney looking for properties close to rail links. I think one of the reasons for this is that historically they stepped out of the market as they could not compete with investors. Now there are fewer investors on the ground, the first home buyers are back.”

Mr Bailey says, “These days around 80% of first home buyers are getting financial help from their parents. So, when a first home buyer doesn’t have the full cash deposit available that the vendor wants and the parent does not want to sell an asset or use their equity to pay the deposit, a Deposit Power bond is a great solution.”

“First home buyers may be borrowing more, but if you are buying four or five years sooner than you otherwise could, you could very well come out ahead,” Mr Bailey believes.

Mr Bailey identified the Central Coast and Sydney’s western and south-western suburbs as hotspots for first home buyers. “Suburbs like Penrith, Camden South and Caringbah have defied the property downturn in recent months, all recording price increases of over 5%,” he says.

Broker Magazine

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How to of you

(AND INTO Y

Have you ever noticed yourself goin attention to what is going on around whatever, completely lost in

By Sam Makhoul, Founder at A H

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get out ur head

YOUR BODY)

ng about your day not really paying you? You could be driving, eating or your thoughts. Not present.

Higher Branch Success Academy

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M

EDITORIAL

ost of us in business spend a lot of time in front of a computer, in meetings, sitting, analysing and strategising; i.e. living in our heads.

Our left brain to be precise. The problem is that our left brain is always processing information from the past to plan the future. It takes us out of the present, where the real magic lives.

There is nothing wrong with that except that we spend too much time in the left brain, up to 90% of waking hours. This is out of balance, unnatural and disconnects us from our bodies.

“

“

We need to tip the balance back to the right brain.

Why is that important? The right brain connects us with our body and the present moment where the source of creativity and human connection comes from. Serving customers from the heart with empathy and warmth comes from the body. People feel your energy first, and listen to what you have to say second. So, whether you are a salesperson, advisor or a barista, your competitive edge comes from your ability to connect with others. It is also in the passion you bring to your job. And you guessed it, passion resides in your body, not the head.

Broker Magazine

Before I answer that question, I want to share with you the:

6 signs you are living in your head 1. You don't notice beauty around you. Whether it is the blue sky, chirping birds, flowers in the garden, your partner’s touch or the sparkle in your child's eyes.

2. Your breathing is shallow. Breathing is an instant barometer of your thoughts and feelings.

3. You feel like you are always on the edge of anxiety or unhappiness or worse still, numbness.

4. You are all talk, no action. You sign up for the gym but don't go, or buy recipe books but don't cook.

Whether you are a sales person, advisor or a barista, your competitive edge comes from your ability to connect with others.

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So how do you get out of your head and into your body? How do you engage the right brain – your ‘feeling’ brain?

5. You focus on consuming and not creating.

Whether it is media to fatten the brain or food to fatten the body. These days everyone wants to eat but nobody wants to grow or cook. Everyone wants to read or watch but not many want to write or produce.

6. You worry too much about what people think of you. When you spend too much time in your head, you waste precious energy feeding your ego.

What causes us to live in our heads?

When feelings hurt too much or we have unexpressed emotions.

•

Too much technology and social media.

•

Work that requires constant sitting and thinking.

•

Too much education and not enough free thought.

•

Not enough socialising with others face-to-face.

Ways To Get Out Of Your Head And Into Your Body 1. Dancing and listening to music.

6. Getting a massage.

2. Mindful breathing and meditation.

7. Doing the things you fear.

3. Making love. (Beware pornography.

Studies show it ruins intimacy).

8. Playing sport.

4. Connecting with nature and gardening.

5. Hugging family and close friends.

9. Taking an afternoon nap.

For more practical tips on upgrading your life during tough times, download Sam Makhoul’s free eBook: GUIDE TO GREATNESS by clicking here.

Broker Magazine

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JUN

The end of ďŹ nancial year can get a little bit messy.

It’s a late night for us, but a new year for your clients.

crownandgleeson.com.au

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ONE FLEW OVER THE BUSINESS NEST

by Natasha Hawker

Employee Matters Pty Ltd

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NATASHA HAWKER

W

e have all heard the derogatory terms used to describe people with a mental health illness such as ‘crazy’, ‘psycho’, ‘mad’, ‘loony’ or ‘nuts’, just to name a few. Most employers and employees would prefer to talk about anything other than mental health issues.

The management of mental health has come a long way but there is a still a significant way to go.

What actually is the definition of a mental health illness? “A mental disorder or mental illness is a diagnosable illness that affects a person’s thinking, emotional state and behaviour and disrupts the persona; ability to work or carry out other daily activities and engage in satisfying relationships.” – Standard Mental Health First Aid Manual 2017.

It might surprise you to discover that, as an employer, you have a duty of care to manage the stress levels of your employees so as not to cause a mental health issue and also to manage anyone in the workplace who is struggling with a mental health condition.

people get treatment, so their illnesses can be exacerbated.

What can you do to help? The best thing that you can do is to either seek help from someone who is trained in Mental Health First Aid or, better still, train up someone in your organisation to assist. We have just had eight of our team members trained and accredited to help our clients.

Mental Health First Responders can identify how to recognise the cluster of symptoms of different illnesses, but they are not mental health professionals. They know how to offer and provide initial help, and how to guide someone towards appropriate treatments and other supportive help.

An example being, we have a client whose best sales guy has admitted that he has a cocaine addiction, only he is now the poorest performing sales rep. He has been with the organisation for a long time and his employer wants to help him.

We are coaching the team in how to manage this situation. Employee Assistance Programs (EAPs) can also be of enormous support here as well.

You cannot ‘fire’ or terminate the employment of anyone with a mental health condition, as this would be seen as discriminatory and could expose you to legal action.

It gets worse – a report by PWC in 2017, estimated that Mental Health is costing Australian Workplaces

$12 billion per year.

Mental illness is very common with 20% of 16–85 year olds experiencing mental health issues in any one year and experts are suggesting that this is likely to increase to 25%.

Some of the most common illnesses are anxiety, depression, and bi-polar and substance use conditions and the big concern is that only 35% of

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“IT MIGHT SURPRISE YOU TO DISCOVER THAT, AS AN EMPLOYER, YOU HAVE A DUTY OF CARE TO MANAGE THE STRESS LEVELS OF YOUR EMPLOYEES…”

Another fabulous example, is that Virgin are training a number of their team to be accredited Mental Health First Responders and their aim is to have one trained First Aider on every flight.

They plan not only for this support to be for their fellow employees but also for nervous fliers. What a fabulous goal!

My concern is that the incidence of mental health illness is on the increase and you only have to look at high schools, where it is estimated that one in three teenage girls is suffering from anxiety, to see that the tsunami is coming. These students will be in the workforce within 5–10 years.

As I said, people are frightened by mental health but awareness and education is key. We also need to reduce the stigma of having a condition.

Mental Health in the Workplace Employers have a ‘duty of care’ and the latest stats suggest that one in four Australian employees between the ages of 16–85 have a mental health condition. This could be anxiety, depression, substance abuse, anorexia and in more serious cases this can lead to suicide. Eight of our team members have recently completed training to become Accredited Mental Health First Aiders.

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Broker Magazine

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Dispute resolution: do you have the skills to make it a career?

“Positions in dispute resolution are on the rise, and talented individuals with experience in industries like mortgage broking are in high demand.”

Mortgage broking has always been a talent-short market from the perspective of a recruiter, and clients are often most keen on finding out who’s hiring, what they are paying and what are other businesses doing to attract candidates right now.

When discussing movement in the mortgage broker market, the majority of candidates I’m speaking to today are in relation to a project I’ve recently started working on with recruitment giant Randstad.

By Zak Wilford Specialist Recruiter working with Mortgage Brokers

N

ow the dust is settling after the Royal Commission, its real effects are becoming apparent. Whether you’re a one-man band or a big-four bank the shake-up is being felt by all and businesses have been put on notice to ensure their processes are tightened up.

The broker industry is feeling the squeeze, and like any industry that faces such a dramatic overhaul, there is a phase of adapting to the new way of doing things — changing processes to deal with new lender conditions, a more precise, stringent requirement of supporting docs all leading to a more thorough assessment and slower process.

As a one-man band or small business, even the little things can make a big difference, and it’s clear from conversations I’m having that there’s a degree of uncertainty regarding the future.

Positions in dispute resolution are on the rise, and talented individuals with experience in industries like mortgage broking are in high demand. As a result of the Royal Commission, organisations are reviewing and tightening up their compliance and complaints procedures and desperately need those with real industry expertise, who have been through the process to handle and resolve disputes.

As I work on this project with colleague Geraldine Libatique, it’s proving to be quite an attractive proposition to take to market. Those that are feeling the pinch and struggling with changing conditions are looking to find a new opportunity in something aligned. Taking a position in dispute resolution is providing the refreshing change of pace some in the mortgage industry are craving.

It allows professionals that may be finding the changes simply too much, to consider a career move into a fringe role in which they can leverage their credibility and experience, handling and resolving disputes relevant to their expertise.

there’s no dispute. we have roles to match your ambition.

• • •

Multiple Case Manager/Analyst roles with AFCA. Financial services and dispute resolution experience required.

Located in Sydney and Melbourne.

info.randstad.com.au/afca 38

Broker Magazine

The small business loan specialist Your trusted lending partner We respect the hard-won relationships you have with your clients. They’re yours, not ours.

To honour this, we provide a reliable service team and transparent products with no hidden surprises. Plus, we don’t offer cheaper rates to direct customers, so you stay competitive.

For more information or to join our Broker Partner Program: Visit www.ondeck.com.au/fbaa Email broker@ondeck.com.au Call 1800 831 294

Broker Magazine

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EDITORIAL

Post-election era presents business growth opportunities for brokers times. His words were repeated within hours by Treasurer Josh Frydenberg who quickly realised that the livelihoods of 20,000 small business people were at risk.

By Darrin Davies Mercer PR

The 2019 Federal Election will make history for numerous reasons, but finance brokers will remember it as the election that breathed new life into the industry.

Only a few months ago the release of the final report into the banking Royal Commission shined the spotlight on brokers, albeit not for the right reasons.

The industry united like never before to fight Commissioner Hayne’s recommended changes to the remuneration model, which labelled ill-informed by the FBAA. FBAA Managing Director Peter White was the first industry voice to respond. Over a 24-hour period he appeared on radio, television, print and online more than 100

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The message that Australia needed a competitive banking sector resonated, and the industry played its part in the election result.

Politicians from both major sides started to respond to the intense pressure being applied not only from brokers but from informed commentators, non-major banks and others who understood the detrimental effects of a mortgage sector without finance brokers.

The message that Australia needed a competitive banking sector resonated, and the industry played its part in the election result.

Now there is an opportunity for all brokers to leverage this increased awareness of the role finance and mortgage brokers play, and build their businesses to new levels.

Whether you are a small or larger broker, here are a few tips to help you grow your business through strategic publicity.

1. Speak with authority – Brokers have specific industry knowledge, so don’t keep this to yourself. Consider seeking public speaking opportunities to talk with authority about the critical role brokers play and why banks need to be kept in check. This could be at a local business networking function or at an event or sporting club sponsor.

2. Website – Keep your website up to date with interesting topics and commentary about the market. Consider a news section with regular updates.

The more information on your website, the more search engines will elevate your profile. Ensure an easy call-toaction element so that readers want to contact you. Link your site to your social media platforms.

3. Social media – Industry leaders like Peter White regularly attract more than 60,000 views to each video blog they produce and many successful brokers are building their following the same way. Record and post your own video content to your social media pages then

cross promote the link. While Facebook is still important, try LinkedIn, your own YouTube channel or Instagram.

Research how your clients and potential clients like to communicate and connect with them through those channels.

4. Traditional media – Traditional media outlets, particularly community radio and local weekly newspapers, are often on the lookout for content from people with interesting things to say. Consider making contact to introduce yourself, promote your expertise and provide a list of topics you can

speak about. This may include interest rates, credit cards, the importance of saving, home ownership or investing.

Be prepared and do your research.

5. Branding – Ensure you have a point of difference from other brokers. Consider what your advertising says to the public and also how successful your call to action campaign is.

There are companies that can help brokers with publicity and social media. While Mercer PR doesn’t specialise in small business, we can refer you to excellent PR and social media companies who do, so don’t hesitate to reach out and ask.

Darrin Davies is a senior consultant with Mercer PR, consultants to FBAA.

Importantly, do everything in your power to deliver the best possible service to your clients and stay in touch with former clients. The best form of communication is still word of mouth.

Watch this compilation of news clips featuring the FBAA following the release of the Banking Royal Commission’s final report in February 2019.

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Post-election

economic wrap up

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PETER SWITZER

I recently interviewed Susan Mitchell, the CEO of Mortgage Choice. I asked Susan what percentage of people who used to get “Yes” to a loan are now getting “No”, or a more restricted offering. When she said “20%”, I knew that had to be an economic problem. This will have to be the most pressing issue that the PM will have to address now the election is done and dusted.

by Peter Switzer Founder, Switzer Group

P

ost-election, it’s important to understand the kind of economy Prime Minister Scott Morrison and his Government will face and the likely path forward for crucial economic indicators that affect the business and performance of mortgage brokers, writes Peter Switzer.

Over the past nine months, the Oz economy has surprised most economists, including the Reserve Bank, Treasury, the IMF and yours truly on the extent of the slowdown since September last year. I believe the combined impact of APRA and the fallout from the Royal Commission has ‘helped’ to cripple an economy that was supposed to be heading to 3% plus growth.

Sure, there have been other negative headwinds, such as Donald Trump’s trade war antics and the slowdowns in Europe and China, which were partly related to Donald’s nuking of old trading relationships.

However, the credit squeeze locally has been the real biggie.

“There’s a confidence creeping back into the housing sector and AMP Capital’s Shane Oliver thinks a bottoming process is starting to form with house prices.”

At the time of the election, house prices were under pressure. If our PM’s name had been Shorten, with his negative gearing start date of January 1, we would have been looking at a housing crisis that could have created a house price Armageddon of Professor Steve Keen proportions! Steve has been predicting a 40% slump in house prices nationally. Click here to see my interview with him.

ScoMo’s surprise victory has resulted in a lift to stock market confidence. I suspect both consumer and business confidence will follow. Adding to the optimism, economists now expect the RBA to cut rates twice this year and Westpac’s Bill Evans sees a third on Cup Day. All this comes as APRA has told banks to back off the 2% buffer for

working out if borrowers could handle higher interest rates down the track.

There’s a confidence creeping back into the housing sector and AMP Capital’s Shane Oliver thinks a bottoming process is starting to form with house prices.

In a recent interview I did with former Labor Senator Graham Richardson, Richo said he thought Labor had “Buckley’s chance” of getting the negative gearing policies through the Senate, along with the franking credits policy, which he described as “dumb!”

He didn’t think his mate Bill would lose the election but the world of politics has become increasingly hard to read, as Newspoll has discovered!

So, what does the economy ahead look like?

I’ll add up the good and bad news and speculate on what’s likely to happen post-election and see if that gives us a guide to our future.

Here goes: 1. Economic growth came in at a worrying 1.3% recently but I think it will lift to 2.7% (i.e. it’s bad now but likely to improve).

2. Employment rose for the eighth straight month and the election result will help. (This is good!)

3. The unemployment rate rose from 4.9% to 5% but rate cuts, tax cuts and a lower dollar should put a lid on the jobless rate. (Another good one.)

4. The participation rate rose from 65.6% to 65.7%. In trend terms, the rate is at record highs. (Good!)

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PETER SWITZER

5. The annual rate of headline inflation eased from 1.8% to 1.3% but I reckon the postelection optimism will help inflation kick. (Another one that’s bad now but getting better.)

6. Home prices fell by 0.49% in April — the smallest decline since September — to be down 7.2% over the year.

(A good one.)

7. Annual credit growth fell to a five-year low of 3.9% in March.

The annual personal credit growth rate fell to a nineyear low of 2.8% but I see this improving in the second half of 2019. (This is bad.)

8. Bank lending to households by credit card fell by 4.8% in the year to March – the second biggest annual decline since June 2002. (Another bad.)

9. Job advertisements fell for the sixth straight month, down by 0.1% in April. Ads were down by 5.6% over the year to 166,464. (Bad but coming off record highs!)

10. In April, 75,550 new vehicles were sold — the weakest monthly sales since April 2011 — down by 8.9% over the year.

In the 12 months to April, sales were down 6.5% on a year ago and the biggest annual decline in over nine years. (Mmm, this is bad.)

11. Council approvals to build homes fell by 15.5% in March, to be down by 27.3% over the year. (Another bad.)

12. Retail trade rose by 0.3% in March after a 0.9% increase in February. (Ah, this is good.)

13. Economy-wide spending is continuing to lift with the Commonwealth Bank Business Sales Indicator rising by 0.7% in March after a similar lift in February.

Spending growth remains above the 0.4% long-term average monthly growth pace.

(Yes, good.)

14. The AiG Performance of Services Index (PSI) rose by 1.7 points to 46.5 points in April, but contracted for a fourth successive month.

A reading below 50 indicates a contraction of services sector activity. (Sorry, this is bad.)

15. The terms of trade rose by around 5.1% in the March quarter — the strongest lift in two years. (Good!)

16. The Federal Budget is in surplus for the first time in a decade. (Very good.)

17. The trade surplus fell from an upwardly-revised record high of $5.14 billion in February (previously $4.80 billion) to $4.95 billion in March. (This gets a good.)

18. The annual trade surplus with China hit record highs as did annual exports and imports with the country. (Another good.)

19. Growth of domestic air travel is “soft”, which reflects a slower economy. This always happens before an election but international travel is “positive”. (This gets a bad.)

The “bad” assessments came in at nine, while there are 10 “good” ones. That’s a fair assessment of the economy. It’s better than a 50:50 count to the good side but the number of “bads” and the worries around bank lending have set us up for a bout of stimulus from rate cuts, tax cuts, a lower dollar and less restrictive bank lending.

I’m sorry if you’re a Labor supporter but the voting decisions of our fellow Australians have helped turn around confidence — and the economy is bound to follow. I’m not tipping a boom but better times for mortgage brokers seems likely!

If you need more convincing, both Sydney and Melbourne auction clearance rates rebounded to be over 60% in the first week after we ‘killed’ Bill and returned ScoMo!

Reach over 20,000

FBAA Members and Finance Industry Professionals Advertise in the Oct 19 issue of Broker Contact Krystal 0402 064 040 or editor@fbaa.com.au

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45

HOW TO GENERATE MORE REPEAT AND REFERRAL BUSINESS I

sn’t it frustrating when you have a fantastic product, you give great service, and you still have to keep advertising to get new business?

Sadly, it happens all the time!

If you would like to increase your repeat and referral business – at no extra cost to you – look at what you do after the sale.

by Martin Grunstein Martin Grunstein’s outstanding results with over 500 Australian companies across over 100 industries has made him this country’s most in-demand speaker on customer service.

He is contactable on 0414 933 249 or through his website martingrunstein.com.au

I was running a customer service seminar and one of the participants told me the following story. Mrs K was test driving a Lexus and the salesperson was asking a lot of questions – as a good salesperson should. One of the questions was, “What type of music do you like?” This didn’t seem particularly relevant until Mrs K took delivery of her new car and sitting on the front seat was a package of $200 worth of CDs in her favourite music. Thoughtful, eh? Actually, it’s more than thoughtful; it’s good business.

Here’s why.

I asked Mrs K how many people she’d told about the CDs. She said she’d told about 100. I then asked her how many people she’d told about the car and her reply was particularly revealing. She said, “None initially. But when I told them about the CDs, they all wanted to know what car it was

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and then I told them how happy I am with my Lexus”.

There’s a lot to be learned from that story. I believe that referral business comes from what I get that I don’t pay for, not what I get that I do pay for. No matter what we sell, if we want to increase our level of referral business, we’ve got to get some “CDs in with our Lexus”.

I know that CDs are technologically obsolete but the power is in the metaphor.

One of the hardest things to come to terms with in business is that nobody cares about your business except you. As a customer, even a satisfied one, I’m not going to spend my time talking about your products or services unless you make it easy for me to do so. I’m only interested in what’s in it for me.

Understanding this, our challenge is to offer the “CDs with our Lexus” package that is appropriate to our business. A broker might decide to send a house plant to the new home of the couple who used her service to get finance.

An optometrist client of mine in Launceston has a friend who owns a book shop. Every time he sells a pair of reading glasses for the

“…referral business comes from what I get that I don’t pay for, not what I get that I do pay for.”

Sometimes the “CD with the Lexus” can be a simple phone call.

so he couldn’t play golf for a while. He hosted a barbecue on a Sunday afternoon 10 days after the operation. During the barbecue, he received a phone call from the orthopaedic surgeon just to see how he was recovering from the operation. That surgeon picked up two knees and a hip from the people gathered there because everyone wanted a surgeon who cared enough to call to see they were OK after the operation.

One of the guys I play golf with had a knee replacement operation

A call from a broker to see how the client is enjoying life in their

first time he gives the customer a gift and a thank you card which says “Thanks for buying your specs from us. We appreciate your business. Here’s a book so you can enjoy reading for the first time with your new glasses”.

He reckons he gets more referral business from stories about the book than anything else he does in his business.

new home without trying to sell them anything is a caring thing to do but also could be the stimulus for one of your clients to tell other people about you.

What are the “CDs with your Lexus”?

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man on a

MISSION To say the last 18 months have been ‘busy’ for FBAA Managing Director Peter White would be an understatement. With the Productivity Commission, Royal Commission, Senate Inquiries, hundreds of media interviews, meetings and Professional Development Days covering the country multiple times over, as well as high-level engagement with both the Government and Opposition, airports and hotel rooms have become his second home.

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C

ommitted to industry, Peter White has spent the past 16 years advocating and lobbying for mortgage and finance brokers in Australia as a representative of the FBAA. He has exceeded the expectations of his role, and this month his significant contributions to the finance industry and community were acknowledged with his appointment as a Member (AM) of the Order of Australia.

Each Australia Day and Queen’s Birthday, the Order of Australia recognises outstanding Australians within our community.

As far as national honours go, the Order of Australia is the highest recognition within our country.

On June 10, 2019, the FBAA’s own Peter White was given the citation of Member (AM) of the Order of Australia; a prestigious honour for his significant service to the finance sector and to community.

For those who know Peter, this may not come as much of a surprise as it was to him. Peter has always been a playmaker and a game changer, someone who pushes to improve the industry that has given him so much success, someone who will put in endless days and long weeks to make sure he edges closer to succeeding in his mission, whatever that is. Whether it is ensuring the integrity of the finance and mortgage broking

industry is upheld, or establishing a global network of brokers to ensure our industry’s survival, or establishing a charity with his wife Janet, which aims to support parents of children with special needs – because he and Janet know that struggle firsthand. He’s a man on a mission.

Peter cut his teeth mainstream retail banking in the 1970s. Not finding everyday banking fulfilling – too much of a “pen pusher” role to satisfy him long-term – and with a desire to “do more” he shifted lanes in the 1980s to set up his first brokerage. After a few years he sold that to a colleague, and moved into the non-bank sector in 1993 to establish RAMs Home Loans first sales office at Hurstville, Sydney, which had failed to thrive until Peter stepped in. A few years later, still seeking to “do more” he moved to investment banking with AIDC Limited, moved across into private banking, then a few other nonbank brokerage firms, and ended up consulting to the industry from around 2002.

“In 2003, I was thinking I still wanted to do more,” recalls Peter, who by that stage had worked in the finance industry for 25 years.

“I realised I’d spent my whole career thinking I wanted to ‘do more’ for my career, but that led me to just really wanting to do more for the industry. I could see things needed to be done and I was driven to actually see that things got done.”

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COVER STORY

That year, Peter joined the FBAA as volunteer NSW State President.

He progressed to National President and Chairman of the Board in 2008. After almost eight years as a volunteer to the FBAA, Peter accepted a full-time position as CEO in 2010. His position today as Managing Director has expanded and deepened since 2010, with a primary focus of government relations, strategy and as a media spokesperson for the industry.

example is the International Mortgage Brokers Federation (IMBF), which he initiated in 2016 in conjunction with Canada and formally launched in October 2018. The Federation currently includes representation from Australia, Canada, USA and UK, and meets on a monthly basis.

This increased focus on government, media and strategy

by Peter, who is a registered lobbyist in his own right, “is to ensure that we keep that our members and our businesses heading down a strategic path.”

That strategic path has helped strengthen the FBAA and amplify the voice of its members. In 2003, the association had a couple of hundred members, which grew to around 1200 members when Peter took post as CEO. Today. The FBAA has around 8500 members and constantly growing. “It’s been a fantastic journey that we’ve had with the FBAA, showing the association’s strengths and its values to the marketplace and being the leaders in professionalism and commitment in the industry.”

“What is so rewarding about being acknowledged in the Queen’s Birthday Honours List is that it’s not planned, it’s not scripted, it’s not done with anything in mind except to help...”

Since 2008, Peter has run the political front for the association, working with senior ministers Mathias Cormann, Josh Frydenberg, Kelly O’Dwyer and past Assistant Treasurer Stuart Robert to name just a few. This ensures FBAA members and our industry are heard. “In the twoyear period after the 2013 Federal election, we had four ministers in just two years, so I was constantly re-setting conversations about industry needs.”

For Peter, he has always pushed the boundaries of his ‘job descriptions’ to go above and beyond the call of duty. One 50

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“I saw a need to put a federation together on a global scale, so that we as an association and an industry can be talking to

our global colleagues and keep in front of the game with the regulators who are also talking internationally,” says Peter, who is Chairman of the Global Board of Governors of the Federation.

“The Federation is about sharing knowledge and experiences.

As ASIC are talking to the UK, and formulating regulation for Australia, we need to understand their regulatory journey so we can then interact with ASIC on an internationally-informed level to bring about the best outcomes for our market,” says Peter, “and to then table intelligent arguments to be able to counter

what they’re proposing. We need to be informed with the right set of knowledge, which from my point of view comes from the horse’s mouth. In the instance of the UK, there’s no way you’re going to be ahead of the game if you’re not actually talking with the right people in the UK,” he says.

“We hope that by the end of the year we’ll bring New Zealand, Ireland and The Netherlands into the Federation,” says Peter. “By the end of 2020 I hope to have upwards of 10 countries involved; we’re looking at various countries within the E.U. and maybe one country out of Asia. But we’re still on the road in that.”

Another area in which Peter’s contribution has been significant, is in recognising the need for awareness, education and support around mental health issues in the finance industry. Peter and the FBAA will continue this focus through 2019, and expand beyond awareness to establish a pathway of three components for those requiring support. First, there’s the awareness element, which has been the key focus up to this point. Second, wellness programs are being designed for later this year (targeting RUOK Day in September) which will focus on assisting people in the finance industry to look after themselves better. “The healthier and happier you are, the less likely you are to fall into challenges with mental health,” says Peter. The third component, is increasing FBAA’s connection with Beyond Blue, who will be available to brokers experiencing crisis mode.

Outside of the countless hours – far beyond a standard 8.305 – Peter spends working as ‘the face and voice’ of FBAA members and industry, he is a family man, and one who is familiar with the obstacles parents of special needs children face. With his drive to

“As ASIC are talking to the UK, and formulating regulation for Australia, we need to understand their regulatory journey so we can then interact with ASIC on an internationally-informed level to bring about the best outcomes for our market…”

always do more, Peter and Janet last year established a charity, The Sanity Space Foundation, which supports, specifically, parents and carers of special needs children.

For his appointment as Member of the Order of Australia, Peter will be presented with the insignia of the award (a gold medal on a royal blue ribbon) at an investiture ceremony later this year.

“The Sanity Space Foundation came about as part of a mental health journey, but also the things that we could see that weren’t working right within the special needs system. I had the contacts to do something about it so I did.”

“What is so rewarding about being acknowledged in the Queen’s Birthday Honours List is that it’s not planned, it’s not scripted, it’s not done with anything in mind except to help,

and to help our industry be better at what we’re doing.

“What I do in the FBAA and our industry has never been about a job or a career, it’s far more personal than that; it’s what I’ve lived for my entire life, my journey.”

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THE NEXT 3 YEARS what brokers should do to ensure the survival of our industry

Peter says the next three years are critical to mortgage brokers, and there are three actions we all need to be taking.

1. Grow your business and your network “Brokers need to be focusing on growing their businesses over the next three years,” Peter says.

“If you’re looking at expanding and taking on more employees, or more brokers in your network, it’s time to take heart and to have confidence of where we’re planted in the industry, to turn around and build your businesses, to invest in your businesses, and move forward.

“We have reports of upwards of 50% of new industry entrants who didn’t go forward because they were concerned over the future of the income in this industry,” says Peter. “Now that we have the assurance of a threeyear review and no immediate changes, there’s no reason why those new entrants shouldn’t regather and come into the industry and grow it.

“I’ve been out in the marketplace saying we need to be setting our sights on the next step, and the next step is mortgage brokers handling 70% of home loans.

That’s where the UK is at, and there’s no reason why we can’t achieve that and more.”

2. Expand your offering beyond home loans The second point Peter makes is that brokers need to look at expanding service offerings.

“For too long, home loan brokers have just done home loans.

You need to also be looking at motor vehicle finance, looking at business lending, whether it’s secured or unsecured, commercial

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lending… the goal is to be able to do more for the customers you have built relationships with.

“As an example, you may have a customer who is self-employed who’s getting a home loan, and you need to be proactively looking at what else you can do to help them in their business with different finance arrangements.

How can you go above and beyond to find a better option for them?

“If your customer is a mum and dad home loan, keep in touch with them to see if they might be looking to buy a car.

“That will grow and diversify your business, and will grow brokers’ market shares too.”

3. Move past the transaction The third important action Peter says brokers need to do going forward, is to move past the transaction. “Anybody who is a transaction-based broker, as far as I’m concerned, is dead in the water,” says Peter. “Our industry is now based on the relationship you build with your client, and ensuring you deliver more than just giving them a home loan.

“It’s building the relationship; that’s what you need to do with your clients.”

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Debt is not a four-letter word.

By John Dickinson DebtX

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EDITORIAL

For many, the shame attached to not being able to keep up with their debts can be all-consuming.

I can understand this as we never want to feel like we’re failing or losing control, and while seeking help is the best thing to do, for many, doing so can be as hard as admitting an addiction.

The problem is, by not confronting our debt problems they just get worse and left unattended they can lead to significant stress, the loss of assets and businesses and even the breakdown of relationships.

While it’s easy to feel like you’re the only person with debt problems, the fact is you’re not. Many people go through difficult financial times in their lives; but the problem is most of us feel alone and embarrassed. Confronting your debt problem is the first step to recovery so here are a few ways to summon up the courage to start.

Stop feeling sorry for yourself Sorry for the tough start but I needed to get your attention. While it’s easy to feel like you’re the only person with debt problems, nothing could be further from the truth. Most people will have an issue with debt at some point in their lives. Chances are you’ll know a family member or friend that has struggled with debt, they most likely felt the same way you’re feeling now but they got through it and so will you.

Stop feeling like a victim and take charge.

Your debt problems don’t define you We often tend to measure who we are by what we have. It’s easy to look at someone driving a nice car and think “they must be happy and doing well”. For all you know the payments on that car are behind and the tow truck is on the way. You are not your debts and they don’t define you.

With a little help and determination, you can get through the problem and get back to being you, remember that person? The one that looked forward with optimism rather than backward with regret.

Stop Beating yourself up I’m giving you permission to forgive yourself.

You most likely didn’t end up with debt problems because you were running off to Paris every weekend or buying a house full of expensive shoes; well okay maybe a few pairs of shoes. My point is most people’s financial problems stem from an event such a failed business, a separation or illness, and it can happen to anyone. It doesn’t mean you’ve failed yourself or anyone else. Remember, everyone takes knocks in life, the difference between winning and losing is your ability to keep getting up and moving forward.

Seek help Ever heard the saying “knowledge is power”? This is absolutely the case when getting through debt problems. It’s time to seek good advice and I’m confident that when you take this step you will feel instantly empowered. You’ll no longer just be waiting around for something bad to happen, instead you’ll be taking positive action and you’ll be the author of your own recovery. See, you’re feeling better already, aren’t you?!

Now’s the time to sit down and make a list of the people you can talk with. Perhaps it’s your parents, I bet they’ve gone through some tough times in the past, or perhaps a brother or sister. You might even know a professional such as an Accountant or Solicitor that you can contact. The good thing about people like these is they will often have contacts they can refer you to for help.

Contrary to the press, the banks too can be very helpful when it comes to helping their clients that are suffering financial hardship. This can involve reducing or stopping payments for a period of time or even reducing account balances. If your debt issue is with a bank then the best thing you can do is call them straight away, I think you’ll be surprised with how understanding and helpful they can be.

Although it can feel insurmountable at the time, the truth is, most financial problems can be overcome.

However, you need to be the driver so get behind the wheel and take charge.

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STATE REPRESENTATIVES

FOR

2019

Queensland & Northern Territory - State President

New South Wales & ACT - State President

Liberty Network Services Mobile: 0434 338 584 Email: qld@fbaa.com.au

Founder & CEO of Property Loan Advisor Mobile: 0417 024 300 Email: nsw@fbaa.com.au

Trent CARTER

Victoria & Tasmania - State President

Western Australia - State President

General & Commercial Financial Services Pty Ltd Mobile: 0478 040 714 Email: vic@fbaa.com.au

Head of Finance & Advisory Provident Lending and Business Solutions Mobile: 0448 773 310 Email: wa@fbaa.com.au

South Australia - State President Director Finance Opportunities Mobile: 0419 820 149 Email: sa@fbaa.com.au

Broker Magazine

Felicity HEFFERNAN

Brendon KURTZ

Joff O’SHANNESSY

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Christine GREEN

Would you like more information on an FBAA event or PD Day thats happening in your local area? Maybe you have some feedback or an issue you would like to discuss?

Finance Brokers Association of Australia Street: Level 1, 116 Ipswich Road, Wooloongabba Qld 4120 Post: PO Box 234, Stones Corner Qld 4120 Phone: (07) 3847 8119 Email: info@fbaa.com.au Web: www.fbaa.com.au

The next

21

top events

(June – November 2019)

JUN

Canberra Summit Thursday 13th

SEP

R U OK Day Thursday 12th

JUN

Webinar Tuesday 18th

SEP

Albury Summit Tuesday 17th

JUL

Adelaide Summit Tuesday 23rd

SEP

Melbourne Summit Wednesday 21st

JUL Brisbane Summit

Wednesday 24th

SEP

Ballarat Summit Thursday 22nd

JUL

Cairns Summit Tuesday 30th

OCT

Adelaide Summit Tuesday 15th

JUL

Townsville Summit Wednesday 31st

OCT

Mt Barker Summit Wednesday 16th

AUG Newcastle Summit Tuesday 6th

OCT

Launceston Summit Wednesday 23rd

AUG

Sydney Summit Wednesday 7th

OCT

Sunshine Coast Summit Tuesday 29th

AUG Woollongong Summit Thursday 8th

NOV

National Industry Conference Friday 8th

AUG

Perth Summit Tuesday 27th

AUG

Bundbury Summit Wednesday 28th

NOV

Gala Dinner & Awards of Supremacy Friday 8th

* FBAA events from Jan 20 – Jun 20 will be published in the next edition of Broker Magazine.

For updates regarding FBAA events, and terms and conditions, please review the FBAA website.

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For FBAA event enquiries, contact: events@fbaa.com.au

BOARD OF DIRECTORS

Tony Carter

Peter White AM

Chris Szigeti

Cert IV FS (FMB), Graduate Management Qualification (GMQ) – UWA

Cert IV FS (FMB), MAICD

AFB, Cert IV FS (FMB), Dip (ML) Sec

Managing Director Special Responsibilities Government, Media and Strategy

Inst, LREA, MAICD

Peter has vast experience in Banking and Finance spanning over 40 years, which includes his most recent admission onto the advisory board of the Small Business Association of Australia. Peter is highly engaged with Government and Industry Regulators ensuring beneficial outcomes for current & future reviews that are, and will be undertaken. Peter has held FBAA roles of NSW President, National Vice President, National President, Chairman of the Board of Directors and Chief Executive Officer.

Chris has been involved in the finance industry since 1975, running his own Mortgage and Finance business, Chris Szigeti & Associates t/as CSA Finance and Mortgages Can Do since He started his finance career with IAC ( Citibank ), then 10 years with AGC, where he held senior managerial roles covering all aspects of Finance. Chris was a founding member of FBAQ in 1992 which evolved into the FBAA. He was Queensland State President (2004-2009), first elected to the Board in 2009 as National Treasurer (2009-11). Chris was admitted to the status of Life Member in 2014 in appreciation of services provided to the Association and Members.

Director Special Responsibilities Chairman of the Board of Directors

Tony has been involved with the motor and finance industry for over 40 years, the last 20 as Dealer Principal/Director of 3 motor dealerships. He has been engaged with finance since early career days at AGC and was a Licensed Finance Broker in WA from 2004 to 2013 ending as an ACL holder when he resigned from the motor dealership position.

Today Tony holds a Credit Rep role under his son’s company Echo Finance and runs his own Vehicle and Finance Brokerage in WA – Brokerage WA. Over the past 20 years Tony has been on three NFP boards – BIZLINK – Chairman, Asthma Foundation WA – Chairman and Asthma Australia – Director.

Principal Broker Brokerage WA Phone: 0418 911 220 Email: tcarter@fbaa.com.au

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Broker Magazine

Phone: 07 3847 8119 Email: pwhite@fbaa.com.au

Director, FBAA Life Member Special Responsibilities - Vice Chairman and IDR Chairman

Managing Director Chris Szigeti & Associates Pty Ltd T/as CSA Finance & Mortgages Can Do Phone: (07) 5592 2635 Email: cszigeti@fbaa.com.au

John Mulcair

Kim Szigeti

BBus, CPA, GCM, DipFS, MAICD,

JP (Qual), AFB, Cert IV FS (FMB), Dip

Director, FBAA Life Member Special Responsibilities – Treasurer and CFO

FS (FMBM), MAICD

John Mulcair has vast experience in banking, finance and accounting spanning more than 50 years. John joined FBAA in 2002, was appointed ACT Representative in 2003, ACT State President in 2005, first appointed to the Board in 2006, National Treasurer 2006-08, Board Consultant 2009-11, then re-appointed to the Board as National Treasurer in 2011. John was admitted to the status of Life Member in 2009 in appreciation of services provided to the Association and members.

Kim Szigeti has vast experience in finance and mortgage broking spanning more than 20 years, and currently holds a Real Estate Licence. Prior to this Kim held various positions in retail and hospitality, as well as volunteer in previous and present positions with community organisations.

Kim joined FBAA in 2005, was Secretary of QLD Council 2007-2009, and elected to the Board in 2015.

Director Wilde Mulcair Pty Ltd Mobile: 0416 049 423 Email: jmulcair@fbaa.com.au

Mortgages Can Do Phone: (07) 5592 2635 Email: kszigeti@fbaa.com.au

Director Special Responsibilities Company Secretary, Director Policies, State Branches

Stephen Rasmussen AFB, Cert IV FS (FMB), B.Com (Prof Acct), MAICD

Director Special Responsibilities­­ Audit & Risk Committee, Chairman- Equity Release/ Reverse Mortgage Committee Stephen has been involved in the finance and banking industry for more than 40 years, starting with the CBA in a branch environment. Stephen started his own broking business in 1995, essentially as a one-man operation. Stephen was appointed as QLD/NT State President in 2009, and then elected to the Board in 2016

Managing Director Tailored Lending Concepts Mobile: 0412 295 875 Email: srasmussen@fbaa.com.au

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BOARD OF DIRECTORS

Rick Nieuwenhoven

Jan Kirstein

AFB, Cert IV FS (FMB), B.Com (Prof

Director, FBAA Life Member Special Responsibilities Board Liaison for State Presidents

Acct), MAICD

Director Special Responsibilities – Member Finance, Audit and Risk Committee

Dip Fin Serv (MBM), Cert IV, FSMP, Dip FP, Com Dec, AFB, MAICD

Gus Gilkeson Director Special Responsibilities – Governance Committee

Rick Nieuwenhoven has vast experience in accounting practice and education, finance, financial planning, property investment, and mortgage broking spanning more than 15 years, and currently is a registered agent of ASIC. Rick joined FBAA in 2012, was SA State President 2013-15, and elected to the Board in 2015.

Jan commenced his finance career in 1976 and has worked principally in senior lending and sales roles. Jan joined the broking industry in 1996 and formed his own broking company in 1998. Jan joined FBAA in 2002, was appointed North Queensland representative of the Association in 2002, and has been a Director since 2005. He has held several positions on the board such as National President, Chairman of various committees and has been Chairman of the Board for a number of years. Jan was admitted to the status of Life Member in 2013 in appreciation of services provided to the Association and members.

Gus has spent 19 years in financial business development, product development and origination – primarily responsible for loan origination and structuring. He has held successful roles building and running teams with domestic trading and investment banks, financial advisory firms, private lenders, mortgage and funds management, commercial finance broking.

Gus has reviewed thousands of individual business and property finance applications in most sectors and has completed billions of dollars worth of loan settlements. Gus holds tertiary qualifications in Information Technology, Financial Advisory, Mortgage and Finance Broking

Business Owner Nieuvision Phone: (08) 8263 4009 Email: rnieuwenhoven@fbaa.com.au

Principal Brokir Pty Ltd Phone: (07) 3847 8119 Email: jkirstein@fbaa.com.au

Managing Director Grow Capital Phone: 0423 001 002 Email: ggilkeson@fbaa.com.au

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Broker Magazine Broker Magazine

“We don't grow when things are easy, we grow when we face challenges.�

- Unknown

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