Australian Broker magazine Issue 10.07

$4.95 POST APPROVED PP255003/06906

APRIL 2013 ISSUE 10.07

James Green: +INSIDE Cutting through the red tape + NEWS

A look at what’s been making headlines P4

+ ANALYSIS

NEWS LTD’S WAR ON BROKERS The news outlet appears to be taking aim at the industry P14

VOTE OF NO CONFIDENCE

Century 21’s James Green says the industry has erected too many barriers for brokers

J

ames Green knows a thing or two about building a broker business. He parlayed Oxygen Home Loans into a network serving nearly 50 branches of McGrath Real Estate, expanding into NSW, ACT and South East Queensland.

In his new role building the broker network of real estate giant Century 21, Green has said he’s facing some unique challenges. One of these challenges, he said, is a problem endemic to the entire industry.

FULL STORY PAGE 12

Homebuyers are feeling more wary in spite of good economic indicators P16

+ WORKSHOP GET THE BEST FROM YOUR TEAM How to manage underperforming workers P18

+ OPINION BUSTING CPD MYTHS

Peter White challenges training misconceptions P22

+ CAUGHT ON CAMERA Vow Financial takes to the links at its annual golf day P29

NEWS 2

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WHAT THEY SAID...

NUMBER CRUNCHING TIME AFTER TIME

PHIL NAYLOR

Source: RP Data

Average days on market for properties

HOUSES

UNITS

SYDNEY

42

32

MELBOURNE

50

48

BRISBANE

82

89

ADELAIDE

80

80

PERTH

59

57

HOBART

81

63

DARWIN

49

79

CANBERRA

46

44

Big four vs non-majors: March 2013

100 90 80

80.5%

60

74.2%

40 30 20

Source: AFG

19.5% Investors

Big four

42.7%

*The proportion of Australians who say they will sacrifice a holiday in order to manage their home loan more effectively Source: HomeLoanFinder.com.au

25.8%

22.2%

Refinancers

First homebuyers

“The aggregators offering the best service or who best meets the needs of their members are going to attract brokers”

BY THE NUMBERS: HOUSING SALES

Source: HIA

77.8%

50

10

STEPHEN DINTE

New home sales fell 5.3% in February, driven by a 4% drop in detached house sales and an 11% drop in unit sales

COMPETITION HEATING UP?

70

“We always thought most members are truly behind us and that about 90% would meet requirements” P6

P4

PETER WHITE

“Responsibility for lawfully adequate CPD cannot be ‘outsourced’ or ‘devolved’ to a supplier of CPD material” P22

Non-major

MARIO REHAYEM

“Some [brokers] are very good at marketing themselves but they don’t know how to market their brand” P27

NEWS 4

brokernews.com.au brokernews.com.au EDITOR Adam Smith

Aggregators questioned on trail

Mixed response: ACCC approval of CBA/Aussie deal

■ An industry forum is

bringing together heads of major aggregators to challenge them on the transfer of trails.

IFBF head, Stephen Dinte, said the group will hold a panel discussion on 26 April including Mark Haron of Connective, Stephen Moore from Choice, Finsure’s John STEPHEN DINTE Kolenda, Simon Dehne from LoanKit and Ballast’s Frank Paratore.

Dinte says the panel will give brokers the opportunity to ask aggregators about making trail books easily transportable, an issue he said is “vitally important”.

“Personally, I’m getting trail from a couple of different aggregators and if I were able to transfer all my old stuff to my current aggregator it would save me $1,000 a month.

Dinte argued that there was no reason trails shouldn’t be transferable between aggregators.

“Given that it is something that can be done in the financial planning world, we feel there’s no reason it couldn’t happen. In a perfect world of competition, the aggregators offering the best service or who best meets the needs of their members are the ones who are going to attract brokers.”

■ The ACCC’s

DID YOU KNOW?

17.21% is now the average credit card interest rate – which is nearly six times the official cash rate (Source: RateCity)

announcement that it would not oppose CBA’s proposed acquisition of Aussie Home Loans had one lender’s CEO claiming this showed a lack of transparency.

While Aussie franchisee brokers will still wish to offer home loans from a range of lenders, CBA is likely to have the ability to increase the volume of, for instance, white label home loan products supplied through the Aussie network – and this doesn’t sit well with Heritage Bank CEO, John Minz.

“This strategy is creating a false impression among customers that there is a high

THIS STRATEGY CREATES A FALSE IMPRESSION AMONG CUSTOMERS THAT THERE IS A HIGH LEVEL OF COMPETITION

PARTY PROPOSES ‘GOUGING TAX’ ON BANKS ■ A new political party has proposed a “gouging tax” to

take on bank profits.

The Bank Reform Party has announced details of what it said will be its centrepiece policy – a “gouging tax” which would hit banks if they fail to pass on rate cuts in line with easing funding costs.

“The big four and their subsidiaries hoovered $3.7bn out of Australian’s pockets last year on mortgages alone by gouging on the RBA cash rate while citing funding costs as justification,” BRP leader and NSW Senate candidate Adrian Bradley said.

level of competition in the marketplace, but in reality a number of these so-called competitors are actually part of the big banks themselves.”

However, the ACCC concluded that this would not give rise to a ‘substantial’ lessening of competition, arguing that Aussie brokers make up just 6% of Australia’s mortgage brokers.

PUBLISHER Simon Kerslake COPY & FEATURES JOURNALIST Mackenzie McCarty PRODUCTION EDITORS Carolin Wun, Moira Daniels ART & PRODUCTION SENIOR DESIGNER Rebecca Downing DESIGNER Ginni Leonard SALES & MARKETING SALES MANAGER Simon Kerslake ACCOUNT MANAGER Rajan Khatak MARKETING EXECUTIVE Anna Farah TRAFFIC MANAGER Abby Cayanan CORPORATE CHIEF EXECUTIVE OFFICER Mike Shipley MANAGING DIRECTOR Claire Preen CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR – BUSINESS MEDIA Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil Editorial enquiries Adam Smith tel: +61 2 8437 4792 adam.smith@keymedia.com.au Advertising sales Simon Kerslake tel: +61 2 8437 4786 simon.kerslake@keymedia.com.au Rajan Khatak tel: +61 2 8437 4772 rajan.khatak@keymedia.com.au Subscriptions tel: +61 2 8437 4731 fax: +61 2 9439 4599 subscriptions@keymedia.com.au Key Media keymedia.com.au Key Media Pty Ltd, Regional head office, Level 10, 1 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Singapore, Toronto, New Zealand brokernews.com.au Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Australian Broker magazine can accept no responsibility for loss.

Australian Broker is the most-often read industry publication, according to independent research carried out by the EhrenbergBass Institute for Marketing Science at the University of South Australia in December 2008.

The research also found that brokers rate Australian Broker as the best for both news content and feature articles, followed by sister publication MPA. Overall, on all categories, Australian Broker ranks top followed by MPA. The results were based on a sample of 405 respondents who were the subject of telephone interviews.

NEWS brokernews.com.au

6

MFAA terminates one in 12 broker memberships

THE STRANGER SIDE OF NEWS

■ The MFAA terminated

AUSSIE ROBIN HOOD

■ An Australian man is currently awaiting

trial in the US for a rather bizarre bank robbery. The 39-year-old Melbourne native stole US$140,000 from a bank in Jackson Hole, Wyoming, after presenting the teller with a note that threatened to blow the building up with “four military-grade explosives”. When the man was apprehended, he had already given $124,000 of the haul to homeless people and charities across the American West.

Perhaps appropriately, the man is a former self-help author.

JOKE’S ON YOU

■ The rising cost of living is putting the pinch

on a lot of people. Utility bills, childcare, housing and petrol are all squeezing working families. But perhaps most disturbingly, the cost of a cheap laugh is skyrocketing. According to research conducted by The Huffington Post, cheap novelty gag items are rising in price.

For instance, the cost of whoopee cushions has risen over the last year from $4.50 to $5 per dozen. Rubber chickens have seen a similar hike, with the facsimile fowl going from $78 to $84 per dozen. Comfortingly, the iconic Groucho Marx nose glasses actually dropped in price from $9 to $8 per dozen. The overall rises prove one thing, though: Laughter may be the best medicine, but you probably need private health cover to afford it.

FAST FACT Women represent 35–45% of new entrants in the mortgage broking industry (Source: MFAA)

the memberships of 1,100 broker members late last month, after they failed to meet the educational standards necessary to become MFAA credit advisers.

In 2009, the MFAA board decided that by 31 January, 2013 all loan writing members must have successfully completed the Diploma in Financial Services (Finance/ Mortgage Broking Management) or equivalent to continue their memberships with MFAA. The MFAA said all members were reminded of the requirements ‘many times’ over the last 12 months, following the national board’s decision to actively demonstrate that members have high standards of professionalism and qualifications with consumers and regulators.

MFAA CEO, Phil Naylor, said the organisation is both pleased and ‘not surprised’ that more than 88% of its members are now qualified, with expectations that many of those whose membership has been

terminated will seek to have it reinstated within the next two months by providing evidence of the required education qualifications.

“It’s about what we were expecting. We always thought most members are well and truly behind us and we thought about 90% of members would meet requirements.

“A lot of those who didn’t meet the deadline will come back,” said Naylor.

PEPPER ANNOUNCES $250 MILLION DEAL ■ Pepper Home Loans has announced the acquisition of a $250m-small

balance commercial mortgage portfolio from Citigroup Pty Limited (Citibank), which the non-bank lender said is part of its strategic growth plans to extend its specialised lending services beyond residential home loan products.

The deal represents Pepper’s first domestic acquisition of 2013, but comes on the back of an 18-month period that has seen the company acquire several whole loan portfolios and financial services businesses in Australia and Europe, facilitating its expansion into new asset classes and markets.

The small balance commercial loan portfolio acquired by Pepper includes loans to approximately 730 customer relationships with an average balance of circa $345,000. The vast bulk of the loan book is secured by residential and commercial properties located in NSW and Victoria, with some exposure in Queensland, Western Australia, South Australia and Tasmania.

NEWS brokernews.com.au

8

Industry head joins AFA women’s initiative

WORLD NEWS CANADA

■ Responding to the Association

of Financial Advisers’ (AFA) announcement that it plans to launch an initiative aimed at providing a support network for women across the ‘full spectrum’ of the financial services industry, the MFAA has said it’s keen to join in.

Brad Fox, AFA CEO, said the move targets women in all facets of financial services, not just financial planners, and MFAA CEO Phil Naylor said the association has suggested to AFA that there might be ‘mutual networking benefits’ in the two associations running certain events together.

MFAA head of marketing and communications, Kriti Colless, said the MFAA’s Women in Mortgage Broking Network (WIMBN) has received feedback showing female brokers would appreciate networking opportunities within the wider financial services community.

She said the events to be held in conjunction with the AFA will offer increased networking opportunities, exchange of ideas and experiences to both memberships within the financial services sector.

FRAUDSTERS GETTING SAVVIER

Borrowers haunted by debt ■ Broker clients continue to

be haunted by poor credit card decisions, despite evidence that credit debt is slowing down nationally, according to Melbourne-based broker, Marios Rokka.

Rokka says he’s seen ‘many’ home loan applications adversely affected by clients who have accepted a seemingly innocent credit card limit increase.

“Automatic credit card increases are common these days, but these increases can have a big impact on your borrowing power, especially when you don’t use the limit you have been granted,” he said.

Interestingly, Rokka’s observations follow reports that the value of national credit card debt has fallen from more than $50bn last year to $48.7bn, while the average balance is shrinking.

BIG FOUR HAVE MORE ROOM TO MOVE ■ The big four have more room to move on home loan rates than their

non-major rivals, according to the RBA. Benn Robertson and Anthony Rush of the RBA’s domestic markets department, said a tougher funding environment exists for non-major banks compared with the big four, despite the fact overall funding costs have dropped across the sector along with falling interest rates.

“For the regional banks, the evidence suggests that the overall increase in funding costs since the onset of the GFC has been larger than the increase in funding costs experienced by the major banks.”

“A large portion of this increase has been driven by the substantial shift in the composition of regional banks’ funding liabilities away from securitisation and towards relatively more expensive deposit funding, as well as an increase in the cost of their deposits and wholesale debt funding,” they said.

BIG SAVINGS MEAN BIG SWITCHES

$3,000 annual savings

51%

An online poll by Loan Market found 51% of respondents said that $3,000 in annual savings was the number which would entice them to switch home loans, while 49% pegged a figure between $500 and $2,999

An industry expert has cautioned Canadian brokers on smarter, better organised mortgage fraudsters, more professional than the familiar mom-and-pop operations that once challenged the industry.

“There are really clever people out there, and they will get by the smartest person,” said Jeremy Nicholls, the manager of fraud and investigations with Servus Credit Union in Alberta, arguing the best defence is good vetting and, even, better bookkeeping.

“Your due diligence processes and documentation is key,” he said. “If you come under investigation as a broker for a mortgage fraud, you can show that you vetted that person with the same scrutiny that you vetted all of your clients. You can show it is standard practice.”

UK MINOR GROWTH A MAJOR MILESTONE The Australian housing market may seem rather flat to many here, but spare a thought for those in the UK. They’re currently rejoicing over house prices moving into positive territory for the first time in more than a year.

Figures from Nationwide show that prices grew a paltry 0.8% in March on an annualised basis. The meagre uptick was cause for celebration, though prices flatlined from February to March. The average house in the UK is now valued at £164,630.

OPINION 10

A helping hand, not a handout Microfinance is enabling women in developing countries to lift themselves out of poverty, and one organisation is calling on brokers for help

I

n a recent visit to Australia, where she enlisted the help of AusAID in increasing the level of financial independence for women in developing nations, Women’s World Banking (WWB) CEO, Mary Ellen Iskenderian, spoke to Australian Broker about the organisation’s method – and why she needs your advice.

The WWB, a network of financial institutions and banks spanning 28 countries, is aimed at giving lowincome women access to financial tools and resources, including microfinance loans, insurance and savings accounts.

While their success rate has been tremendous – Iskenderian tells us microfinance has now

MARY ELLEN ISKENDERIAN

reached around 200 million people world-wide – there’s one area that continues to pose a problem: housing finance.

“I think one of the areas where we’ve been least successful is in housing – not that there is any lack of demand for housing products, but it’s been very difficult for financial institutions to understand.”

Research conducted by the WWB and other organisations shows a positive correlation between women owning property and numerous positive social trends. A recent study of 600 households in Bangladesh demonstrates this: “There was clear evidence that households where women had access to financial services and education, you saw women running for village council, you saw them voting more often and you saw their daughters voting more often.”

Other studies have also shown that an increase in female property ownership corresponds with a decrease in reported domestic violence.

However, microfinance, at its core, requires a stable and sustainable financial backing and Iskenderian says this has been a ‘huge issue’ for the client base when it comes to home loans – and her organisation is not alone.

STUDIES HAVE SHOWN THAT AN INCREASE IN FEMALE PROPERTY OWNERSHIP CORRESPONDS WITH A DECREASE IN REPORTED DOMESTIC VIOLENCE

“This has been a really tough nut to crack. Housing for Humanity has a great product, for instance, but they just have a terrible time coming up with a financial package.

Given [Australian Broker readers’] expertise in the mortgage area, if anybody has any thoughts, please contact us through our website.

If there is any idea that people have seen work elsewhere that would make housing finance sustainable for finance institutions and affordable for the individual household, please, please let us know.”

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11

NEWS

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12

CONTINUED FROM PAGE 1

I HAVEN’T SEEN ANY OTHER INDUSTRY OR ANY OTHER AREA THAT MAKES IT SO HARD FOR A PERSON TO LEAVE ONE AREA AND MOVE TO THE NEXT – J AMES GREEN

James Green: Cutting through the red tape

“A

big challenge that’s really the fault of the industry, is that aggregators and lenders have made the induction process and the recruitment process of brokers overly complex and overly long,” Green said.

As Century 21 looks to expand its broker footprint, Green said the company is meeting roadblocks in trying to move brokers from one aggregator to another.

“It can take up to three to four months to bring a broker on, to get the necessary documentations and transfers in place to change from one aggregator to the next.”

It’s an increasingly common complaint in the industry.

Recently, Independent Finance Brokers Forum head Stephen Dinte announced the group would hold a panel discussion with aggregation heads to ask why the transfer of trail books

proved such a hindrance to brokers looking to change aggregators. But Green suggested it’s not just trail transfer that’s the problem.

The entire process, he said, is needlessly complex. He called it “a huge deterrent in the industry today that needs to be improved”.

“I haven’t seen any other industry or any other area that makes it so hard for a person to leave one area and move to the next to do the exact same thing with the exact same lenders,” Green said.

PAPER TRAIL

The complexity comes, Green explained, with the vast paperwork requirements that aggregators place on exiting or incoming brokers.

“The process is being held up because aggregators want to get release letters to say that brokers haven’t got any outstanding

FAST FACT Folowing his departure from Oxygen, James Green was replaced by former St.George NSW state manager Alan Hemmings

issues, and a new aggregator won’t even talk to the broker until they’ve got a release letter from their exiting aggregator,” he said.

Getting this release letter isn’t always an easy task, Green said.

Oftentimes, brokers are made to jump through hoops to satisfy their old aggregator’s desire to ensure there are no loose ends.

“You have to actually go and say, ‘aggregator, can you get us a letter to leave you?’ This can take a long time, and sometimes the new licence holders want to do exit orders, and for them to go over every file and ask them to go back over their old files and fix things up.”

This all may seem understandable. After all, few brokers would argue that it’s fair to leave their old aggregator holding the bag for poor documentation. But Green suggested that there are some aggregators who are being

NEWS 13

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needlessly pedantic in their requirements. “In some instances, it might not be a major breach. It might only be a minor breach and something that doesn’t necessarily need to create the delays of going back over all of that,” Green said.

This is putting undue pressure on small business people, Green argued, and making it unfairly difficult to transfer from one company to another.

“Why do we need to put them through this whole exhausting process of checks and balances, references, and numerous other documents in order to satisfy that this person is eligible to provide mortgage broking services? That’s the problem.

There are too many steps, processes and documents required to take someone from ‘A’ aggregator to ‘B’ aggregator.”

SOLVING THE PROBLEM

Green is certain that this is one of the major problems and

WHY DO WE NEED TO PUT THEM THROUGH THIS WHOLE EXHAUSTING PROCESS OF CHECKS AND BALANCES? – J AMES GREEN

barriers to business facing the industry. What he’s not certain about is who can fix it.

“I’d love to meet the person if there was one. I don’t think there’s anyone who can give us a silver bullet, unfortunately. It’s an industry-wide problem that has grown and become a barrier to entry and a barrier to doing business,” he said.

While there may be no silver bullet, Green said it was time

for some pressure to be applied to aggregators and lenders to sort out the problem. This pressure, he said, should come from industry peak bodies.

“I think we really need to use the right forums, like our associations the MFAA and FBAA, to engage our lender partners and aggregators and say, ‘guys, this has to be cleaned up’,” Green said.

Should some of the barriers to movement between aggregators be removed, Green said brokers could get on with business.

As the situation stands, however, he said the roadblocks to switching aggregators are hurting the brokers who can afford it the least.

“It doesn’t help anyone. It just disadvantages smaller brokers and makes it harder for them to do business.”

SCOUTING FOR TALENT

Another challenge Green said he’s facing is finding quality brokers to grow Century 21’s network.

“It’s [difficult] finding someone who wants to take on additional business and grow their business.

It’s really quite challenging to find those people, and that’s why we’ve been looking at a lot of younger, new entrants into the marketplace, because they’re hungry.”

ANALYSIS 14

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Bad press News Ltd seems intent on taking aim at the mortgage broking industry

I

t’s beginning to appear that News Ltd has a problem with mortgage brokers.

Late last year, News Ltd economics editor Jessica Irvine infuriated brokers with a piece comparing them to “washing machine salespeople”.

Irvine argued that commissions mean brokers’ advice needs to be taken with a grain of salt, and implied that brokers were inherently untrustworthy due to the way they’re remunerated.

“Mortgage brokers are paid entirely on commission – they don’t get paid unless they sign you up for a loan and those upfront commissions can vary from $2,000 and $4,000 depending on the lender. We’d like to believe most people are honest brokers, but when a broker can double their money by putting you on one loan over another, that creates a conflict of interest,” Irvine wrote.

In February, Irvine struck again. Once again, she hammered on broker commissions, this time taking aim at NAB’s ownership of the Advantedge group and CBA’s stake in Aussie Home Loans.

“These independent advisers are now in the uncomfortable

WHEN A BROKER CAN DOUBLE THEIR MONEY BY PUTTING YOU ON ONE LOAN OVER ANOTHER, THAT CREATES A CONFLICT OF INTEREST

– JESSICA IRVINE

position of giving advice to borrowers on the product of their own employer, alongside other lenders of course, and taking different levels of sales commission along the way. Did somebody say conflict of interest?” Irvine reported.

The pieces seem to add up to a clear bias against brokers. But said bias may not be the sole domain of Irvine. Another News Ltd piece took aim at brokers in March, this time over the MFAA’s decision to cancel the memberships of 1,100 of its brokers who failed to complete the Diploma course by the association’s deadline.

The original piece was posted on a number of News Ltd publication websites with headlines ranging from ‘Mortgage brokers axed for study failure’ to ‘Mortgage mugs handle your home loans’ and was written in response to the MFAA’s broker membership cancellation announcement on Monday.

The piece claims that the MFAA’s broker membership cancellation, “has shone the spotlight on just how little training is required for mortgage brokers, who regularly handle tens of millions of dollars a year in loans. Before the introduction of the National Consumer Credit Protection laws in 2009, sparked in part due to concerns about lax and predatory lending practices, mortgage brokers required no qualifications at all.”

The MFAA was quick to respond, with CEO Phil Naylor saying the piece had missed the point of the association’s announcement.

“It is a shame that an industry that successfully raises the bar in its professional standards should be the subject of ill-informed and biased attacks by a journalist who demonstrates little understanding of how mortgage brokers operate and are trained,” Naylor said.

Interestingly, the piece – run on News.com.au – contains a link to a home loan comparison tool hosted on the site, powered

by InfoChoice. Requests

PHIL NAYLOR

IT IS A SHAME THAT AN INDUSTRY THAT SUCCESSFULLY RAISES THE BAR IN ITS PROFESSIONAL STANDARDS SHOULD BE THE SUBJECT OF ILLINFORMED AND BIASED ATTACKS

BY A JOURNALIST

– PHIL NAYLOR

by Australian Broker for comment from News Ltd on any commercial relationship between the company and InfoChoice went unanswered.

Also unanswered were questions regarding the news outlet’s seeming pattern of taking aim at the mortgage broking industry.

Whether or not News Ltd’s broker-slanging is intentional, and whether or not it represents an editorial decision by the company to pit itself against the industry, one thing is sure: Brokers will now have to work even harder to earn their clients’ trust.

ANALYSIS brokernews.com.au

15

ANALYSIS 16

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The confidence conundrum

BY THE NUMBERS

In spite of a low cash rate, intense lender competition and stable employment, homebuyers are still nervous

H

ouse prices are on the mend, interest rates are low and banks are tripping over themselves to offer borrowers a good deal. You wouldn’t know all this, though, by looking at Genworth’s latest

28%

THE PROPORTION OF RESPONDENTS WHO SAY THEY SPEND OVER 50% OF THEIR INCOME SERVICING DEBT

Homebuyer Confidence Index.

The index has seen a 5.1% decrease since September 2012, with a 42% increase in the proportion of borrowers who anticipate mortgage stress over the next 12 months. Here is a look at the numbers:

COMFORT COLLAPSING The proportion of respondents who say they’re comfortable with their level of debt:

SINKING FEELING: HOMEBUYER CONFIDENCE FAILS

September 2012 – 32% May 2013 – 28% FEELING THE PINCH The proportion of respondents who say they’ve experienced mortgage stress:

Confidence:

September 2012 – 18% May 2013 – 23%

98.4

%

NO TIME LIKE THE PRESENT

The proportion of respondents who believe now is a good time to buy a home:

September 2012

September 2012 – 49% May 2013 – 47%

93.4

%

STRESS ON THE HORIZON The proportion of

May 2013

respondents who expect to experience mortgage stress in the year ahead:

$

September 2012 – 19% May 2013 – 27% THROUGH THE YEARS A look at the Genworth Homebuyer Confidence Index from 2007 to now

100%

91.1%

98.1%

97.8%

2007

2008

2009

2010

96.3%

MARCH 2011

94.4%

SEPTEMBER 2011

96.3%

MARCH 2012

98.4%

SEPTEMBER 2012

93.4%

MARCH 2013

ANALYSIS brokernews.com.au

17

WORKSHOP 18

WHY ARE YOUR STAFF UNDERPERFORMING?

brokernews.com.au

and we don’t keep up with that with more development or the changing profile we need for the job,” Dentesano says.

Garry Adams, talent business leader at Mercer, added that required skills and capabilities change, so sometimes people may initially have what’s required to succeed, however over time if their skill development does not keep pace with the change their performance may suffer. This is particularly true when changing market demands and competitive pressures mean business success is dependent on enhanced or new capabilities. “While some employees will readily adapt to the new requirements others may struggle and potentially those who were once considered good or solid performers may over time move into the underperformer category,” Adams says.

In other situations, poor performance may have little to do with the skills and expertise required to do the job, but instead be more related to the attitude and mindset possessed by the employee.

Employee disengagement can strongly contribute to a slide into poor performance, where at best employees may set aside discretionary efforts and additional contributions and at worst passively or even actively undermine an organisation’s efforts and initiatives. “While the attitude and mindset of most employees can be improved there is typically a small percentage of employees where fundamentally very little if anything can be done,” Adams noted.

Finally, Adams suggested some organisations can be ‘blind’ to true poor performance, in part, because the organisation’s goal and target setting processes have broken down or because the organisation accepts the objective measures of performance on face value alone or because the manager has hired people who are more like themselves.

– GARRY ADAMS, MERCER “This last issue often masks less obvious contributors to poor performance such as the clashing of egos and styles or a lack of diversity of thought and opinion,” he says.

However, the leaders of the business – including direct managers – can play a key role. A leader has several key accountabilities, Dentesano noted, all of which can enhance performance. They need to tell employees what the job is so that person can be clear on the role and accountabilities; they need to tell the employee how they are tracking – i.e. feedback on performance; and they need to help the employee understand the organisation’s future and assist in the employee understanding their own future and how they can grow and develop.

If you have staff who aren’t living up to their potential, it may be through no fault of their own

D

etermining the root cause of underperformance in the workplace requires investigation on multiple fronts, leading workplace experts have suggested.

Rosemarie Dentesano, practice leader for Right Management in Aus/NZ, said a primary cause is due to a person’s skill capability and motivational interests not matching the requirements of the role – essentially resulting in a job/person mismatch.

“Through the person being in the wrong job they struggle to deliver on the accountabilities of the role,” she says.

The other cause is that often leaders don’t articulate clearly what their expectations are of a role and what they need from it. Therefore they place someone in it, but change may occur and the person doesn’t perform as expected. Essentially the requirements of the role may have changed, yet “the job has not been realigned to match with the person on the job – it’s almost about structural/job fit and job design”, Dentesano says.

Another important consideration is that often leaders fail to provide ongoing feedback and development. “You end up with people who are poorly aligned but possibly not due to any fault of their own,” Dentesano says.

Right Management’s outplacement program research indicates around 47% of people change job type or function after a redeployment activity, giving an indication of mismatch about skills, interests, motivators and/or real job fit. “People change, jobs change, things outside of work change

WHILE SOME EMPLOYEES WILL READILY ADAPT TO THE NEW REQUIREMENTS OTHERS MAY STRUGGLE

WORKSHOP brokernews.com.au

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MARKET TALK 20

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City snapshot: Canberra Dunlop (Units)

(Houses)

$421,000

$557,500

Median price

0%

Median price

38.08%

Quarterly growth

1.73%

Quarterly growth

29.65%

Yearly growth

Canberra is one of the country’s forgotten housing markets, neither dazzling nor disappointing

BEST BUYS: Canberra’s top performing suburbs

Harrison

Yearly growth

Reid (Units)

Cook (Houses)

$530,000

$650,000

Median price

Median price

-2.75%

12.07%

Quarterly growth

19.27%

Yearly growth

Quarterly growth

21.84%

Yearly growth

Wanniassa (Units)

$387,500 14.31%

Quarterly growth

16.72%

Yearly growth

by comparison, each fell by around 5%.

2012 was a similar story for Canberra. The best performer among capital cities was Darwin houses (8.1%), but apart from that the only other capital cities that saw growth (Sydney and Perth) recorded figures less than 1%. Canberra growth was at 0%. Meanwhile, Australia’s four remaining capital cities all shrank back in median property values.

“Canberra is a very dense housing market,” says APM senior economist Andrew Wilson.

“It doesn’t have a real top or bottom end and doesn’t have the same fluctuations that you see in other cities.”

Wilson says that what keeps the Canberra property market ticking is higher-than-average incomes and an ongoing shortage of land. “It does have a shortage of accommodation and there are constraints to the release of new land because of the cost of infrastructure development, among other things,” he says.

Wilson adds that the release of land is further slowed by mechanisms such as ballots, which contribute to the ongoing land shortage. Demand from first homebuyers tends to be good too, keeping the market active. It’s

Stuck in the middle

Canberra has neither outperformed nor underperformed, with prices not falling far or rising much

Source: Your Investment Property

the age-old equation of supply and demand and this is what has kept the Canberra market resilient.

Unemployment and population figures also bode well for the ACT. Estimates by the ABS have the city unemployment rate at 3.9%, among the lowest in the country, while population growth has been above the Australian average at 1.9%.

Stat check: Canberra’s vital statistics

0.4% Change in dwelling values (monthly)

3.8%

3.4%

Change in dwelling values (quarterly)

Change in dwelling values (yearly)

FAST FACT

360,000 Canberra’s population is only 360,000

8.4% Total gross returns

$505,000 Median dwelling price

Source: RP Data

C

anberra’s property stability is proving a major strength but most investors are unlikely to take notice – and that’s the city’s tragedy.

Much to the chagrin of people who live there, Canberra has developed something of a reputation as a place where, apart from politics, nothing much good or bad happens.

True or not, it is a sentiment that has found its way into the property market. Prices show that Canberra is the wallflower of Australia’s capital city markets: property values neither plummet nor skyrocket, they simply coast along. In good times and bad, Canberra property never makes the headlines.

This is the city’s major tragedy.

A quick look at ACT property stats tells us why. Australia’s capital is home to just 360,000 people and is a smaller market than a lot of the major suburbs in bigger cities. The Gold Coast’s Surfers Paradise alone had more unit sales than the whole of the Australian Capital Territory in 2012.

Despite its size, the market is robust. Over 2011, Canberra showed the highest value growth among all capital cities. The official figure was only roughly 0.5% growth, according to Residex, but this was as every other capital city sank backwards. Brisbane, Adelaide and Perth house and unit prices,

Median price

MARKET TALK 21

brokernews.com.au

Five suburbs rising from the ashes Nothing lasts forever. Just ask the England cricket team who, after years of losing the Ashes, eventually and regrettably beat an opponent that had eclipsed them in skill for decades.

It’s the same for many property markets too, which, after witnessing major price falls, have steered toward a path of recovery – and ultimately sustained price increases.

Of course, property prices ultimately move in cycles across every market. As the rule of price decreases is not forever, neither is price increases.

Some markets currently on a path of seemingly perpetual increase will do the opposite: one day fall.

Astonishingly though, for some areas, the cyclical return to growth has been, for lack of a better word, phenomenal. These include five suburbs where,

The 5 suburbs

after experiencing massive declines in 2010 and 2011, property prices climbed way past what could be considered ‘recovery’ over 2012.

These include two suburbs of Mackay, Qld (Andergrove and Grasstree Beach) where a strengthening in the coal industry has helped the local property market find new legs in the aftermath of Queensland floods that dealt much of the state economy a heavy blow.

Darwin suburb Herbert has also had its property fortunes resurrected as cashed up miners move into the city in search of accommodation. The considerable activity from the natural gas industry is clearly having an effect and the suburb’s median house price has grown by more than $200,000 in the last two years.

Median price in 2011

2011 growth

Current median price

2012 growth

Andergrove, QLD (Units)

$160,000

-43%

$296,250

14%

Port Kembla, NSW (Units)

$226,750

-41%

$390,000

13%

Herbert, NT (Houses)

$317,500

-35%

$530,000

13%

Collinsville, QLD (Houses)

$185,000

-29%

$250,000

43%

Grasstree Beach, QLD (Houses)

$332,500

-27%

$477,000

22% Source: RP Data

BARRIERS TO GROWTH REMAIN The Australian housing market has been looking positive from the perspective of price growth, but nagging problems persist, according to Residex founder John Edwards.

Edwards pointed out that housing markets are growing Australia-wide and the trend is moving in an upward direction, but said, despite this, sales volumes remain low – an issue with potentially deep ramifications.

“Sales in January to February 2013 were the lowest seen on an Australiawide basis since 1999… [and] it is volumes that drive wealth generation and the economy,” he said.

Without strong sales volumes, Edwards added, property professionals such as mortgage brokers, real estate agents, lenders, and even goods and services industries supporting home improvements suffer.

Such conditions do little to improve consumer sentiment – one of the vital ingredients needed for housing markets to experience sustained growth.

Edwards said, housing needs to become more affordable for growth in capital values to become ‘significant’.

OPINION brokernews.com.au

22

BEWARE CPD MYTHS FBAA president Peter White warns brokers not to buy into the hype that only certain CPD is ‘authorised’ CPD

C

ontinuing Professional Development (CPD) is particularly critical in professions where a lack of skill and judgment or the lack of exercise of a sufficient duty of care can have potentially serious implications for those reliant on the professionalism of the practitioners.

‘True’ CPD has a number of defining characteristics. It is continuing: ie, professional development is ongoing and undertaken at regular intervals.

It is professional: ie, the development enhances the professional capabilities of a practitioner in providing services and it actually constitutes development – it is not lip service or tokenism designed to adhere to the form, and is not the substance of a regulatory or legislative requirement.

The above may appear simplistic and platitudinous; however, with CPD being a fundamental requirement of most professions, there has been an emergence of myriad of self-serving suppliers of ‘CPD’ determined to portray their particular version or method of providing CPD as the most ‘correct’ or nearest the ‘authorised’ requirement for CPD. Some of the above core elements are sadly lacking in some suppliers’ CPD offering.

It is a myth that all finance brokers require an industry body or a Registered Training Organisation or an aggregator, or a lender to endorse, define or sign off on what a broker can or cannot employ in order to fulfil their statutory obligations as regards to CPD. The law states, and guidance is provided, as to the law in RG206, that it is the responsibility of the individual practitioner to maintain sufficient competencies as to constitute lawful CPD. The importance of this fact cannot be over-emphasised. The responsibility for CPD for finance broking practitioners lies with

the practitioner. Responsibility for lawfully adequate CPD cannot be ‘outsourced’ or ‘devolved’ to a supplier of CPD material and training; notwithstanding the blandishments and marketing material of some suppliers.

Furthermore, the accountability for and responsibility of undertaking and maintaining appropriate records for CPD hours lies with the person undergoing the training. It is without issue that the training must be appropriate to the professional activities engaged in by you in your day-to-day business.

The regulatory guide sets parameters for lawful CPD. CPD must be undertaken for not less than a total of 20 hours per annum and that the following activities may be counted towards CPD: • Attending relevant professional seminars and conferences

PETER WHITE

I CANNOT STRESS ENOUGH THAT THERE ARE MANY WAYS YOU CAN MEET YOUR CPD OBLIGATIONS –P ETER WHITE • Preparation time for presenting at seminars and conferences • Publication of journal articles relevant to the credit industry • Viewing DVDs or other visual material of professional conferences or seminars that are not more than one year old.

Webinars are similarly included within this category.

A maximum of 10 CPD hours per annum may be sourced from this category • Completion of online tutorials and/or quizzes (produced within the prior year) concerning regulatory, technical or professional developments within the finance industry

The requirement for CPD is law and you must be able to provide verifiable records when called upon evidencing the same has been completed.

Last year, the FBAA partnered with MPID (MyProfessionalID) to manage the need to record CPD points achieved. MPID manages this requirement in a fashion unlike anyone has experienced before in our industry. This service is free to our members; with the recorded CPD points staying with you no matter which aggregator or lender you are with as it is a record of your CPD points achieved personally and independently!

I cannot stress enough, however, that there are many ways that you can meet your statutory CPD obligations – and that no person or entity (besides ASIC) is able to instruct you on how to meet your obligations nor endorse any particular method of meeting your obligations.

So please don’t be concerned if a lender or aggregator or other entity is having a PD day and the promotional material doesn’t state that attendance attracts CPD hours.

So long as attendance or other method of professional development meets the content requirements as set down in the law, you may still count your activity as part of your legal record in meeting your CPD requirements under the NCCP.

brokernews.com.au

THE COALFACE 23

Perspective shift A major accident drove home to Andrew Kelly the importance of offering clients insurance

S

ydney-based Fast broker Andrew Kelly has worked in and around the finance industry for 32 years – and he’s been a broker for 10 – but it took an unexpected event two years ago to clarify for him a major gap in the mortgage broking market.

“I was in a sporting accident two years ago and that was a life-changing event. I lost the use of my left arm from my shoulder through to my fingers and it really brought home part of what we – as brokers – should be helped to do by the banks, which is sell insurance.”

Kelly says many brokers don’t realise the necessity of insurance until something bad happens to them personally, which is a mind-set reflected by the vast majority of Australians.

“In Australia, the banks have had to be dragged to the counter kicking and screaming to make insurance easier to get. It’s just too difficult at the moment and we just don’t get it. There’s no one really pushing the insurance line through the broker channel and they really should start looking at it seriously. But at this point it’s not quite there yet.”

Kelly specialises in commercial, residential and equipment finance, but says he offers insurance now as well.

“Selling insurance allows for diversification for the broker.

It’s something that the banks are very keen to see us do and they will help us do it, but brokers have really got to take it onboard. They’ve got to learn to love this product – and it really is a great product.”

Back to the time when he first entered the finance industry, Kelly says insurance was a one-page addendum.

“It was, ‘do you want fries with that’? and it was very, very easy.

It was a nil advice product and it was almost sold as part of a package. That stopped, and I don’t know why and I don’t know when. The banks should have – on their application forms – one page that says ‘income protection, life insurance – but they don’t do it.”

ANDREW KELLY

THERE’S NO ONE PUSHING THE INSURANCE LINE THROUGH THE BROKER CHANNEL. THEY SHOULD LOOK AT IT SERIOUSLY –A NDREW KELLY In the meantime, Kelly is focusing on learning how to type with two hands again.

“The challenge that I’ve had over the past 18 months is sorting files with one hand and using my chin and my mouth.

I was on morphine and in 24-hour pain.”

It slowed him down, he says, but didn’t stop him. In the two years since his accident, Kelly has taken a grand total of two days off work – both for surgery.

“I can do that because it’s my business and I have to keep working and clients continue to need me. I get out of bed in the morning because I’m needed. I’ve been told I’m likely to get 50% of my arm usage back.”

For a while, he gritted through the pain until late afternoon, when he could take his morphine.

“It makes you see pink elephants,” he laughs. “It’s also made it so when I play golf I’ve got a massive hook because I lean heavily to the left!”

FINANCIAL SERVICES 24

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More Australians seeking planner advice

I

n February the Financial Planning Association received more than 26,000 visits from Australians to its online Find a Planner directory, showing that demand is high for financial advice. At the same time last year the number was 18,487, and in January this year it received 14,862 visitors.

FPA CEO Mark Rantall says there is still a huge untapped market, as only one in five Australians are currently receiving financial advice. The Find a Planner tool is a way of “providing Australians with a safe environment to take the first step towards seeking advice,” says Rantall.

The Find a Planner directory provides consumers with free access to more than 7,500 FPA practitioner members based around the country. Australians enter their postcode and the directory provides a list of qualified financial planners in

the area to choose from.

“The increasing number of those seeking advice is a sign that consumers are looking for the opportunity to find trusted and qualified financial advice from someone in their local area,” says Rantall.

The FPA also launched Ask an Expert, a platform for consumers to ask questions of qualified financial planners via the website or twitter using #AskanExpert.

“Ask an Expert is a great success story originally set up as an opportunity for those who have never received financial advice to dip their toe in the water and experience the benefits of receiving financial advice without the cost. The popularity of Ask an Expert increases every year. Ask an Expert week this year (21-27 January) saw over 2,000 views to the site and the entire campaign had a reach of nearly 19,000.”

THE 12 RISKIEST PLACES TO DO BUSINESS Uzbekistan Moldova

Turkmenistan

Algeria Chad

Mali Panama

Cameroon

Namibia Paraguay

Ethiopia

Madagascar

INSURERS PUSH TO PAY COMMISSIONS ON TIME Insurance companies are increasingly investing in improving their systems to ensure insurance brokers are paid commissions in a timely manner.

This is according to insurance technology company Sungard, which states there is growing demand from insurers for risk solutions that ensure they can keep brokers on side.

“There is definitely a trend towards this.

Distribution channels are only satisfied if commission payments are made in a timely manner. Insurers are investing in channel management solutions for sales and compensation of commissions to distribution channels,” said Peter Haslebacher, chief operating officer for Sungard’s Asia Pacific insurance solutions.

Twelve countries have been declared riskier places to do business than they were last year. The ratings come as Aon Risk Solutions releases its Political Risk Map, which reflects findings on political risks, political violence and terrorism in 163 countries and territories.

The twelve countries that have been ‘downgraded’ are: »» Algeria »» Cameroon »» Chad »» Ethiopia »» Madagascar »» Mali »» Moldova »» Namibia »» Panama »» Paraguay »» Turkmenistan »» Uzbekistan Although this is bad news for these countries, the map shows that, worldwide, things are improving. The number of downgrades has decreased from twenty-one in 2012, while the number of upgrades has increased from 3 to 13.

These improvements suggest that the world is achieving stability once again after the 2008 financial crisis and the 2010 Arab Spring.

Companies should not ignore the risks associated with doing

business in under-developed markets, however. “Despite the upgrades this year, businesses operating in emerging markets still face significant political risks,” said Matthew Shires, head of Aon Risk Solutions’ political risk team.

These risks include: »» exchange transfer risks »» legal and regulatory risks »» the risk of political interference »» risks associated with political violence »» the risk of sovereign nonpayment »» the risk of supply chain disruption The findings that are reflected in the map suggest certain trends. West Africa – which has seen three of its countries being downgraded, along with neighbouring Algeria – has become a much riskier place for business. Recent developments suggest that these risks will continue to increase as West African countries feel the effects of regime changes in North Africa.

A more positive trend is the apparent stabilisation in the Middle East. Bahrain, Oman and UAE have all been upgraded. It is, however, difficult to determine whether or not this trend toward stabilisation will continue.

ANALYSIS brokernews.com.au

25

FORUM 26

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Let my trail book go, brokers demand An industry forum will challenge aggregators over the transfer of trail books

NEWS LTD’S WAR ON BROKERS CONTINUES News Ltd recently took aim at brokers over the MFAA’s announcement that it had expelled 1,100 members for failing to meet the association’s Diploma deadline. The news organisation derided brokers for “just how little training is required”. Peter Fast lamented that the reputation of qualified brokers had been sullied.

Each issue, Australian Broker will publish the best online comment from the previous fortnight – along with your other feedback.

So get online, and get participating!

BROKERNEWS. COM.AU

“For a moment let’s consider what is said here is only half true. The only finger pointing should be at those who have the power to enable an inexperienced person to become a broker, and that is not other individual brokers.

So where does this journalist get his ‘information’? It’s sad that brokers have to defend their own profession when entry to the industry is not under their control.”

Peter Fast on 27/03/13 at 3:52PM

T

he Independent Finance Brokers Forum recently announced it will hold a panel discussion with aggregation heads to discuss the topic of trail agreements. IFBF head Stephen Dinte said brokers were “drawing a line in the sand” in their call for transferable trails.

Broker Friendly argued that the transfer of trail was not merely a matter for aggregators.

“You need lenders in the discussion. Some lender systems couldn’t handle a change in aggregator without a change to the effective date of the trail payment a few years ago. That may have changed but unless lenders both authorise the transfer and honour the effective trail date the aggregator conversation is a waste of time.”

Scott Beattie offered up advice on making trail transferability a workable reality.

“It’s simple – if the aggregator is in favour of a clawback (i.e. a client changes lenders because they are not happy with the service, better offer, etc), then there is no reason why they shouldn’t be in favour of a broker switching aggregators and moving trail as it would usually be a similar reason (or better offer, service, etc.) To make it easy, lenders should only issue

YOU SIGNED AN AGREEMENT, YOU’RE STILL GETTING PAID. WHAT’S THE PROBLEM? – JOHN WHITTEN

one ID number which goes with you from aggregator to aggregator – where trail goes to is where the broker is currently aggregating through.”

Suspicious lauded the forum’s intentions, but expressed doubt it would achieve results.

“This is potentially one of the most significant issues for the industry and critical that it is pursued. Unfortunately, from past experiences, the banks and aggregators will show their fangs and we run back away to behave as we are told to.”

But John Whitten urged brokers to get on with business.

“If this is the biggest problem we have in the finance industry, then we are all going really well.

You signed an agreement, you are still getting paid. What’s the problem?”

What do you think? Leave your comments at brokernews.com.au

POLL: SHOULD THE NCCP BE EXPANDED TO CAR SALES AND RETAIL CREDIT?

YES 87% NO 10% UNSURE 3%

SPOTLIGHT 27

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ONE YEAR ON What a difference a year makes … or not. Australian Broker reflects on the punditry, news and influential trends that made headlines 12 months ago Australian Broker Issue 9.07

Boutiques big, just not big enough

Following Aussie Home Loans’ acquisition of National Mortgage Brokers last year, Aussie executive chairman John Symond predicted more and more aggregators would be seeking the benefit of scale by joining forces with larger organisations.

NMB broker Jeremy Fisher agreed, but expressed disappointment that “smaller aggregators are squeezed out by larger players”.

What’s happened since Fisher can take heart that smaller aggregators aren’t the only ones being swallowed up. Aussie famously saw CBA up its stake in the company to 80%, with an eventual option for a total buyout. The ACCC drew criticism from brokers for approving the deal. Meanwhile, NMB has continued to operate independently, but recently saw one of its founders, Sal Cinque, exit the business.

RBA moves influence homebuyers

Genworth’s Homebuyer Confidence Index last year found sentiment among homebuyers rising in line with the RBA cash rate dropping.

As the Reserve eased rates, homebuyers became more convinced that it was a good time to buy. In spite of lenders not passing on RBA cuts in full, buyer confidence was buoyed by the Bank’s easing policy.

What’s happened since The exuberance hasn’t lasted. In spite of a rapidly dropping cash rate and intense lender competition over the last year, Genworth’s newest Homebuyer Confidence Index has revealed a sharp decline. The proportion of borrowers anticipating mortgage stress is up, while the proportion who believe it’s a good time to buy is down.

Why your business brand needs a hand

A

non-major lender has developed a campaign to help brokers struggling to market their business, claiming many are simply too busy to spend time on branding.

Pepper Home Loans’ Mario Rehayem tells BrokerTV the group’s ‘Brand Hand’ campaign is the result of two years worth of research and discussion with brokers.

“We service a wide range of brokers. Every broker has a very similar trait: They concentrate on their business so much in the sense of just writing loans…that they tend to forget to market their brand. And this is where we’re coming in. We’re saying ‘you don’t need to be time-consumed. Just tell us what you would like and then let our marketing team take care of it from there’. I’ve been on the road non-stop for the last 24 months and constantly brokers keep on telling me that they just don’t have time to inject back into their business.”

Rehayem says brokers often do a better job of promoting the lender rather than their own brand

BROKERS OFTEN DO A BETTER JOB OF PROMOTING THE LENDER RATHER THAN THEIR OWN BRAND

– MARIO REHAYEM

– and that’s a mistake.

“Some [brokers] are very good at marketing themselves but they don’t know how to market their brand, so that when they see clients they tend to actually market the lender’s brand more than their own, which is an area that we’re concentrating on with this road show. It should be all about the broker’s brand and not the lender.”

However, Rehayem says lenders even struggle sometimes to get a good brand campaign out.

“How do you expect the broker to do that when their forte is writing loans and providing solutions to customers?”

The Brand Hand campaign isn’t necessarily aimed at attracting new brokers to Pepper.

Rehayem says it’s simply the value add.

“What we’re trying to do with the Brand Hand is actually give back to the brokers that are using us.”

PEOPLE

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28

LJ Hooker’s Georg Chmiel appears in German reality TV show ‘Dream Homes in Dream Cities’

Reality realty The CEO of an Australian realtor and broking group will star in a new reality series … with a twist

T

he CEO of Australia’s fifth largest non-bank broking group has followed in the unlikely footsteps of Mark Bouris, hosting a reality TV show being aimed at property investors. Only LJ Hooker’s Georg Chmiel has taken it one step further: He’s doing it in German.

Dream Homes in Dream Cities premiers late this month or early next, with Chmiel showing a German couple around various Sydney homes, discussing the differences between the central European

and Australian housing markets.

“The show is about finding a place for families to live in and it has been recorded in San Francisco, Singapore and Moscow,” Chmiel told Australian Broker as he prepared to board a flight to Indonesia.

“Sydney was chosen because it’s one of the exciting cities for European viewers. What it does is aim at people who are thinking about immigrating – or just for amusement. What is it like living in Sydney?”

Chmiel says he was chosen for the role as presenter after the

WESTPAC STUMPS UP FOR CHARITY

W

estpac has re-launched an initiative to encourage charity among its staff. The bank matches dollar-for-dollar any contribution by its staff to a registered charity. To date, the initiative has seen Westpac and its staff give $4.5m to more than 1,700 charities around Australia.

“We’re proud to support our employees’ generosity this way. By matching our employees’ donations we are not only making a valuable contribution to charities right across the country, but also bringing our people closer to their communities,” the bank’s head of community involvement, Samantha Brown, said. Thus far, the biggest recipients of the charity drive have been the St.George

Foundation and World Vision Australia, with St Vincent de Paul, the Salvation Army and Movember all ranking in the top 10 as well.

IT BRINGS OUR PEOPLE CLOSER TO THEIR COMMUNITIES

producers contacted LJ Hooker asking for a German-speaking Sydney real estate expert.

Having immigrated with his family 10 years ago from Bavaria, Chmiel was a natural choice and says his own personal experiences with finding and fitting out a home provided ample fodder for the camera.

“I’ve been through the process of finding a place and getting used to the customs of a new country. [For example] in Europe, you have to install all the lamps and kitchen fixings when you rent a house. In Australia, most of those things are already installed. We were caught out 10 years ago when we brought all our lamps out and all the fittings were different – and you’re not really supposed to fit them yourself.”

Chmiel says many of the questions asked by people emigrating from Europe focus on supplying a down payment for a house, noting that in some countries, like Germany, borrowers are often expected to produce a minimum of a third in equity before lenders will consider them.

“In Australia, it’s probably more like 20% on average.”

Dream Homes in Dream Cities will be aired in Germany, Switzerland, Austria and parts of North Africa, but Chmiel says LJ Hooker will be supplying a link on their website.

“It is in German and there won’t be subtitles,” he laughs, “so it might be of limited use – but for amusement purposes it will be very good.”

CAUGHT ON CAMERA 29

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IN FOCUS

V

ow Financial recently held its annual golf day, inviting brokers, lenders and staff to spend a day on the links at the Manly Golf Club, Sydney.

Australian Broker wants to feature your industry event photos. Contact the editor: adam.smith@keymedia.com.au

2.

1.

3.

4.

5.

1

Ross Cacozza, Justin Dale (Vow Wealth Management), Peter Bryant (Vow Financial), Aaron Milburn

6.

2

Grant Marshall, Jason Meares, Dale van den Boogaard, Scott Wunderlich

3

Vow Golf 2013 Winners: Rob Brownlow, Jeff Wong, Aaron Milburn, Hector Garcia

4 5 6

David Richards, Rob Porter, Matt Clayton, Ross Cacozza

Alan Whitehead, Peter Choice, Chris Christofolis, Stanley Lee

7.

8.

Stephen Kemp, Andrew Parry, Matt Kid, Jason Dunlop (Vow Financial)

7

David Hodgkinson, Paul Munt, Greg Cave, Justin Dale (Vow Wealth Management)

8

Tim Brown (Vow Financial), Aaron Greaves, Dino Pesce, Milan Chetkovich

9

Tara Davoren (Vow Financial) and Sarah Purdy (Vow Financial)

10

9.

10.

Louise Pascoe, Adam Sime, Jeff Melrose, John Curry

View more photos from this event at brokernews.com.au/industry-events

INSIDER

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30

TOP 10 FOODS FOR BUSY BROKERS

ARE YOU BROKING IN THE WORLD’S HAPPIEST CITY?

Mortgage brokers are a varied bunch, but there are a few things just about all of them have in common: They’re busy, they’re time-conscious and they’re constantly on the move. We’ve compiled 10 of the best snack foods for brokers based on portability, taste (no wheatgrass on this list!) and health benefits to keep you in peak performance:

FOR STAMINA, TRY EATING...

6. AVOCADO

Cheap, convenient and packed with protein – cook a bunch, store them in the fridge and grab one when you need a quick snack. Eggs contain vitamin E and omega-3 fatty acids, but watch out as they also contain a bit of cholesterol and are best avoided by those on a low-cholesterol diet.

Avocados are often touted as one of the world’s healthiest fruits, containing 25 essential nutrients, vitamin E, folic acid, copper and iron – and their high fibre content is great for your digestive system. Best of all? They come packaged in their own serving dish. Halve and scoop out the green gold with some rice crackers for minimal fuss.

2. ROASTED SOY NUTS

7. PUMPKIN SEEDS

1. HARD-BOILED EGGS

Roasted soy nuts make a nice break from the usual peanuts and cashews.

They’re also high in protein, so are great for staving off hunger when you’re on the go.

3. MUESLI BARS

Muesli bars are convenient and can offer a great source of energy and protein, but look for bars that have fewer than 800 kilojoules and make sure you don’t eat too many of them, since they can be loaded with added sugars.

4. GREEK YOGURT

Greek yogurt has around the same amount of protein as cottage cheese, but with fewer calories and less sodium. Flavoured yogurt can contain loads of added sugar, so try buying the plain stuff and eating it with fresh fruit.

FOR MENTAL CLARITY, TRY EATING...

5. BLUEBERRIES

Animal studies have found that blueberries help protect the brain from oxidative stress and may reduce the effects of age-related conditions like dementia. Studies have also shown that diets rich in blueberries significantly improved both the learning capacity and motor skills of ageing rats, making them mentally equivalent to much younger rats.

Nutritionists recommend aiming for around a cup a day of fresh, frozen, or freeze-dried berries.

A single handful of pumpkin seeds a day provides you with your recommended daily amount of zinc, a mineral that’s essential for memory and thinking skills.

FOR AN ENERGY BOOST, TRY...

8. BANANAS

Bananas provide potassium, an electrolyte that helps maintain normal nerve and muscle function. The body doesn’t store potassium for long periods of time and your potassium levels can drop in times of stress.

9. CHOCOLATE

You didn’t expect to see this one, did you? Studies show that chocolate can elevate your energy levels thanks to bioactive compounds called tyramine and phenylethylamine. Studies have also claimed eating chocolate improves anaemia, awakens the appetite, aids in digestion and improves longevity.

TOP 10 HAPPIEST CITIES IN THE WORLD 1 Rio de Janeiro 2 Sydney 3 Barcelona 4 Amsterdam 5 Melbourne 6 Madrid 7 San Francisco 8 Rome 9 Paris 10 Buenos Aires

C

lose your eyes for a moment and imagine, if you will, the happiest city on Earth. You likely envision an urban paradise pasted yellow with sunshine, surf and fine dining – but do you think of Sydney?

Apparently, the rest of the world does. According to Forbes, Sydney stands as the second happiest city in the world (behind Rio de Janeiro) – and Melbourne crops up at number five.

The international survey says Sydney is known for its ‘balmy weather, friendly locals and iconic Opera House’ and has been helped along by its association with Australia’s popular overall brand.

However, policy adviser Simon Anholt and market researcher GfK Custom Research North America, who conducted the research, say the results are more likely demonstrating the ideas that those living outside of Australia have about our two largest cities.

“It’s where everybody would like to go,” says Anholt. “Everybody thinks they know Australia because they’ve seen Crocodile Dundee. There’s this image of this nation of people who basically sit around having barbecues.”

“This is a survey of perception,” he adds, “not a survey of reality.”

Anholt says his findings more or less support historical trends, with one notable exception.

“The cities on this list would probably be the same if I’d been running this survey in 1890, aside from Sydney and Melbourne,” he says. “Australia is kind of a branding miracle.”

10. WATER

You’ve probably heard that the body can sometimes confuse thirst with hunger, leading you to reach for snacks when really all you need is a trip to the water cooler. Water makes it possible for your system to digest, absorb and transport the nutrients from the food you eat, and when you’re dehydrated, your cells receive nutrients for energy less efficiently, which can lead to fatigue.

Rio de Janeiro

DIRECTORY brokernews.com.au

AGGREGATOR / WHOLESALE BROKER Choice Home Loans 1800 188 288 www.choicehomeloans.com.au Page 5

BANK

Commonwealth Bank 13 20 15 www.commbank.com.au Page 9

FINANCE

ARAP NSW & VIC 0415 210 434 QLD, WA & SA 0434 254 798 Page 8

LEGAL SERVICES BRANSGROVES Bransgroves Lawyers LAWYERS

(02) 9221 9522 info@bransgroves.com.au www.bransgroves.com.au Page 4

LENDER

AMP 1300 300 400 www.amp.com.au/distributor Page 17 ANZ 1800 812 785 www.anz-originator.com.au Page 7

31

ING DIRECT 1300 656 226 introducer.ingdirect.com.au Page 15

Mango Credit 02 9555 7073 www.mangocredit.com.au Page 1

Liberty Financial 13 11 33 www.liberty.com.au Page 3

Rapid Capital 07 5562 2485 www.rapidcapital.com.au Page 6

Macquarie 13 62 27 macquarie.com.au/mortgages Page 11

WHOLESALE

ME Bank (03) 9708 3994 mebank.com.au Page 19 Pepper Homeloans 1800 737 737 www.pepperonline.com.au Page 13

REAL ESTATE

Look Property Group Residential Project Sales & Marketing 03 9827 8288 www.lookpropertygroup.com.au Page 21

Resimac 1300 764 447 www.resimac.com.au Page 32

OTHER SERVICES RP Data 1300 734 318 Page 23

Trail Book Buyers 1300 742 306 or 0434 742 306 info@trailbookbuyers.com.au www.trailbookbuyers.com.au Page 10 Trailerhomes 0417 392 132 Page 27

SHORT TERM LENDER

Interim Finance 02 9982 2222 www.interimfinance.com.au Page 2

To advertise in Australian Broker call Simon Kerslake on 02 8437 4786