Australian Broker 17.21

NOVEMBER 2020 ISSUE 17.21

MELISSA CHRISTY AND GEORGE SRBINOVSKI The arrival of 86 400 last year signalled a new, purely digital approach to banking. The AMA Fintech Lender of the Year winner has big plans for the future /14 ALSO IN THIS ISSUE… Big deal Broker George Massouridis had to think outside the square to help his clients /16 Broker on broker Zippy Financial’s Louisa Sanghera says brokers have survived by adapting /26 Specialist firm banks on experience Boasting 150 years of “property heritage”, a new lender is keen to back valuable projects /04

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Honouring the best of the best It was a virtual awards night like no other. Check out the 2020 Australian Mortgage Awards major winners /18

Rising above the pack Non-Bank of the Year winner Resimac celebrates the company’s most successful year yet /24

In the hot seat PLAN CEO Anja Pannek on her love of fi nance and the value of brokers /30

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NEWS

IN THIS SECTION

Lenders New non-bank promises ‘agile investment’ strategy /04

Associations Deferred loans drop by half, says ABA /06

Market Building scheme boosts home sales despite COVID eff ect /10

Aggregators PLAN increases product offerings to broker network /12

Technology App points to growth in second-hand market /08

www.brokernews.com.au NOVEMBER 2O20 EDITORIAL

SALES & MARKETING

Editor Antony Field

Publisher/Sales Manager Simon Kerslake

News Editor Madison Utley

GLOBAL WATCH How is the COVID-19 pandemic affecting the property markets overseas? Here’s your snapshot of the news that matters most to the mortgage industry in North America

MORATORIA LEAD TO RECORD-LOW FORECLOSURE FILINGS IN U.S. foreclosure activity hit record lows in the third quarter as COVID-19-related moratoria stalled findings, according to new data. ATTOM Data Solutions’ 2020 U.S. Foreclosure Market Report revealed that there were 27,016 US properties with foreclosure filings, such as default notices or bank repossessions, in the third quarter.

This was down 12% from Q2 and down 81% year-over-year. Foreclosure filings in the third quarter were at their lowest level since ATTOM began tracking the data in 2008. Rick Sharga, executive vice president of ATTOM Data company RealtyTrac, said foreclosure activity had ground to a halt due to moratoria programs put in place by all levels of government and the CARES Act. Sharga said there would be a “significant burst of foreclosure activity” once the programs expired.

US

Production Editor Roslyn Meredith

ART & PRODUCTION

Global Head of Media Marketing Lisa Narroway

CORPORATE

Designer Jommel Ramos

Chief Executive Officer Mike Shipley

Production Manager Alicia Chin

Chief Operating Officer George Walmsley

Traffic Coordinator Kristine Jamir

Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

EDITORIAL ENQUIRIES

Madison Utley +61 2 8437 4700 madison.utley@keymedia.com

SUBSCRIPTION ENQUIRIES

NEW YEAR TO PROVIDE NO RELIEF FOR CANADIAN PROPERTY PRICES home prices will fall by 7% in early 2021 before steadily recovering through the rest of the year, according to a new forecast by Moody’s Analytics.

Single-family home prices will likely drop 6.7%, while apartment values might see a 6.5% decline. This will be largely driven by the economic contraction brought about by the COVID-19 pandemic, especially the resulting higher unemployment and lower incomes.

“Growth will regain momentum in the second half of 2021 as positive vaccine developments boost confidence and lockdown restrictions ease,” the report said. “Overall, Moody’s Analytics expects that housing prices will start meaningfully recovering in early 2022.” However, the impact won’t be evenly distributed, with Montreal and Ottawa showing steady appreciation, while Calgary and Edmonton will continue to fall.

CANADIAN

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MORTGAGE INTEREST RATES IN U.S. FALL TO ALL-TIME LOW rates have dropped to another all-time low in the US, according to Freddie INTEREST Mac’s Primary Mortgage Market Survey. The average 30-year fixed rate mortgage hit its lowest level in the nearly 50-year history of Freddie Mac’s market survey, down to 2.81% from 2.87% in the previous week. “Low mortgage rates have become a regular occurrence in the current environment,” said Freddie Mac chief economist Sam Khater. “As we hit yet another record low, the 10th record this year, many people are benefiting as refinance activity remains strong. However, not all people are able to take advantage of low rates given the effects of the pandemic.” The 15-year fixed rate mortgage also fell to 2.35%, while this time last year it averaged 3.15%.

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This magazine is printed on paper produced from 1OO% sustainable forestry, grown and managed specifically for the paper pulp industry 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 Ehrenberg-Bass 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.

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NEWS

LENDERS BANK MOVES TO CUT SERVICEABILITY RATE

CORSAIR INVESTMENT MANAGEMENT AT A GLANCE

has lowered its serviceability floor rate by 0.30%. Westpac’s new 5.05% rate is below ANZ’s 5.25%, CBA’s 5.40% and NAB’s 5.50%. The bank said it would undo some temporary COVID-19 assessment measures, including reinstating the LMI waiver for certain professions, depending on their LVRs, and removing LVR ratio limits for self-employed applicants and those from certain tourist postcodes. The changes also apply to Westpac subsidiaries St. George, Bank of Melbourne, BankSA and RAMS. WESTPAC

More than 100 years of real estate expertise

Single transactions up to $200m

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BIGGEST MONTHLY RISE IN HOME LENDING data has revealed that new home lending rose in August, despite the economic impact of COVID-19. The 12.6% increase in the value of new home lending in August is the largest monthly increase since records began in 2002. It followed an 8.8% rise in July, seasonally adjusted. “Australia’s property market is showing amazing resilience, with new housing loan commitments up in August in spite of Melbourne’s lockdown,” said Canstar group executive of financial services Steve Mickenbecker.

ABS

“Our aim is to provide unparalleled levels of industry knowledge and guidance to property investors and developers” Stephen Buxton Director, Corsair Investment Management

Commercial Loans

NEW NON-BANK PROMISES ‘AGILE INVESTMENT’ STRATEGY A newly established lender wants to provide alternative lending options for borrowers and investors in a changed financial landscape affected by COVID

The Corsair group plans to use its substantial funds under management and large capital base to provide property loans and equity for projects of all sizes, from “inner-city townhouses to largescale commercial, residential and industrial schemes”.

Fowler will chair the new group, with former Westpac executives Robert Altson and Chris Moyle named chief operating officer and chief investment officer respectively.

Fowler said COVID-19 had created a “unique opportunity” to capitalise on value in Australia’s lending market, adding that APRA guidelines had accelerated the recognition of non-banks as viable market leaders, with COVID placing further constraints on traditional lenders.

“Even in this volatile market, CIM partners with like-minded developers and investors to back valuable projects across Australia. We hope to instil a sense of confidence in our borrowers and investors, placing them in a leading position to further build upon their local portfolio.”

wealthy Melbourne family with generations of real estate and development experience is entering the property loan space to provide residential, commercial and industrial offerings.

The Buxton family has joined forces with Michael Fowler, co-founder of commercial real estate debt and investment group MaxCap, to create Corsair Investment Management (CIM), a specialist real estate funds and investment manager for Australia’s commercial, residential and industrial property markets.

Stephen Buxton, who takes the helm as the company’s director, said his family’s “deep property heritage” spanning

150 years, paired with experienced finance leadership, would provide structured solutions supported by an “agile investment approach”.

“In a complex and conservative lending market, our team’s ability to identify and back strong projects is founded on deep sector experience and a track record of generating shared returns for investors,” Buxton said.

“Our aim is to provide unparalleled levels of industry knowledge and guidance to property investors and developers.

“We have a diverse team of experienced leaders from both the property and finance sectors to support borrowers seeking alternative lending options and investors looking to manage risk in a volatile market.”

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28/10/2020 12:48:40 PM

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22/10/2020 3:59:17 PM 28/10/2020 12:49:30 PM

NEWS

A S S O C I AT I O N S

BROKER-FACILITATED MORTGAGES IN DECLINE data for the six months from 1 October 2019 to 31 March 2020 shows mixed results. Mortgage brokers facilitated 52.1% of all new home loans in the March quarter, down from 55.3% in the December 2019 quarter. MFAA CEO Mike Felton said the result was “inconsistent with multiple indicators pointing to an exceptional broker performance”.

He said the broker channel had settled $98.71bn in residential home loans over the six-month period, the highest value recorded since MFAA reporting began in 2015.

MFAA

CAFBA SETS UP NEW EDUCATION COUNCIL Commercial & Asset Finance Brokers Association of Australia has launched the CAFBA Education Council to oversee the structure, content and delivery of education in the commercial finance sector. The aim is to further professionalise the industry and attract a new generation of talent. CAFBA CEO David Gill said the need for standardised education and designated credentials was crucial to maintaining the high standard of the industry and staving off external regulation, particularly in the aftermath of the royal commission.

THE

DEFERRED LOAN REPAYMENTS DROP

BY HALF, SAYS ABA New figures show that the hundreds of thousands of residential and commercial borrowers who pressed pause on their loans are increasingly resuming repayments half of all loans deferred due to COVID-19 hardship have resumed repayments, according to the latest figures from the Australian Banking Association.

The total loans deferred by Australian homeowners and businesses peaked in late June, with around 500,000 mortgages and more than 200,000 small business loans having paused repayments.

Up until mid-October, the number of deferred mortgages had dropped to 270,000, with repayments having been resumed on at least 224,000 loans, based on data provided by seven of Australia’s largest banks.

NEARLY

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That means almost half (45%) of deferred home loans are back to making regular loan repayments, while closer to two in five (41%) small and medium business loans which had been deferred have also resumed payments.

According to ABA CEO Anna Bligh, the figures are a “good sign for the economy”.

In the past month alone, over 130,000 mortgage and 50,000 SME loan customers have resumed their regular payment plans as they came to the end of their six-month deferrals and were up for review.

Now, according to the data from Australia’s seven largest banks, the total number of

deferred loans has dropped to 439,000.

The Real Estate Institute of Australia has welcomed the news that repayments have resumed on such a large portion of the country’s deferred loans.

REIA president Adrian Kelly said the data was not only a promising sign for the economy as a whole but boded well for the property market in particular.

“The resumption of repayments in about half the cases is an encouraging sign that mortgagees will not be facing a cliff that some anticipated a few months ago,” Kelly said.

“The banks’ commitment to working with customers is welcomed and suggests fire sales will be an absolute last resort as the recovery commences.”

However, Kelly conceded that there were a range of factors that could still affect the Australian property market and which have yet to play out.

“The resumption of repayments in about half the cases is an encouraging sign that mortgagees will not be facing a cliff that some anticipated a few months ago” Adrian Kelly President, Real Estate Institute of Australia

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NEWS

TECHNOLOGY

AUTOMATION BUILDING BROKER RELATIONSHIPS mortgage aggregators PLAN Australia, Choice and FAST have partnered with marketing automation platform ActivePipe to further equip their brokers to build relationships with clients. ActivePipe gives brokers access to automated and personalised email and text message communications to manage customer interactions more effectively, and integrates with the Podium CRM platform used by all three aggregation groups. The service also generates comprehensive analytic data for brokers on their clients.

NAB-OWNED

LENDI LAUDED FOR ITS APPROVAL INDICATOR loan platform Lendi has been included in the 2020 AFR BOSS Most Innovative Companies List. Groups on the list have been selected by an external organisation and an expert judging panel, which looks at top innovation over the past two years.

Lendi CEO David Hyman said the group was thrilled to be recognised for its Approval Confidence technology which addressed the “lack of transparency” in the home loan market by providing a real-time indication of the likelihood of loan approval.

HOME

“The combination of restricted new car supply, frugality and increasing prices in the used car market means financing for second-hand vehicles will increase” Peter Hewett CEO, Verimoto

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APP SHOWS GROWTH IN SECOND-HAND ASSET FINANCE MARKET As COVID-19 forces people to become more savvy with their finances, Verimoto has noticed an interesting trend in consumer spending tech group popular among brokers has aggregated data from the past several months to model the trajectory of business spending for the rest of the year and beyond.

As a second-hand asset finance verifier, the volume of requests received by Verimoto helps illuminate the current appetite for spending within the market. The requests are received through the group’s smartphone app as buyers seek to verify an asset, its location and the identity of the vendor in order to request financing for the asset from a lender.

September marked the fourth consecutive month of growth in A

demand for second-hand assets, up 22% from the month before.

Looking at this alongside the government’s significant business concessions outlined in the 2020 Federal Budget, Verimoto is confident business spending will continue its upward trajectory.

The second-hand market appears primed for growth as businesses remain financially savvy in the face of pandemic-induced economic stress, according to Verimoto CEO Peter Hewett.

“The combination of restricted new car supply, frugality and increasing prices in the used car market means financing for secondhand vehicles will increase over the coming months,” said Hewett.

“This will require brokers to be able to service this increased demand for second-hand asset financing to benefit from the growth in the market.”

Vehicles were the main contributors to second-hand asset growth seen in September.

Supply chain issues created by COVID-19 have affected the new car market, resulting in prices in the used vehicle market increasing, according to figures from data analytics firm Datium Insights.

The Verimoto data also revealed another trend to watch: the rise of the caravan. Verification requests for the asset class grew by 18% over the month.

“Brokers can expect to see caravan sales continue to increase over the coming months as Australians look for alternative, affordable ways to holiday,” said Hewett.

“With caravans being a large purchase, it is likely many will opt to be frugal and purchase second-hand on finance.”

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TECHNOLOGY UPDATE

LA TROBE FINANCIAL SLASHES DEAL TIME WITH TOP TECH TOOLS

Chris Meaker, Head of Origination Channels, La Trobe Financial

is focused on accelerating its digital transformation with the launch of a number of key ApplyOnline enhancements to help speed up the ‘time to yes’ for its brokers.

La Trobe Financial’s Head of Origination Channels, Chris Meaker, said, “We’re pleased to offer the ApplyOnline lodgement centre, which enables brokers to submit supporting documents directly within ApplyOnline. This helps streamline the process for the broker and enables us to become more efficient at processing each file.

“Using a checklist within ApplyOnline is an easy process.

This is helpful because we have such a broad product suite, with products ranging from residential to commercial loans, to self-managed super fund loans; plus we offer loans to customers who are self-employed. So, when a document checklist is created within ApplyOnline based on the product and the customer’s unique circumstances, we can then request the documents LA TROBE FINANCIAL

related to the particular product that the broker is applying for.”

NextGen.Net Chief Customer Officer, Tony Carn, explains: “ApplyOnline has a very sophisticated rules engine for document requirements.

It creates a document checklist based on the dynamic information that’s entered.

“In essence, the system

Tony Carn, Chief Customer Officer, NextGen.Net

In late 2019, La Trobe Financial significantly enhanced its broker lending experience by reducing its application form to an electronic three-page ‘easy-lodge application form’ via ApplyOnline. This was the first phase of the leading non-bank lender’s digital transformation journey.

In June 2020, La Trobe

“NextGen.Net has always been on the front foot and keen to understand our business needs and pain points” not only validates the quality of data; it also leverages that data to establish a ‘dynamic checklist’, thereby providing immediate visibility of requirements for the broker and ensuring the lender gets what they need to approve the deal.

“Bottom line, it assists all parties in the lending value chain and helps to provide better customer outcomes,” Carn says.

Financial launched its new ‘dynamic checklist’ within the ApplyOnline ‘Supporting Docs’ tool. This solution streamlines and seamlessly integrates with La Trobe Financial’s back-office credit assessment processes, significantly reducing the turnaround times of credit decisions for brokers and their customers.

“In terms of our back-end processing, the biggest

improvement has been the turnaround time for our brokers. By implementing these enhancements, we have reduced the data entry and manual element of the process, ensuring that our assessment team starts working on the file as soon as possible,” says Meaker.

Meaker is pleased with the results achieved to date from La Trobe Financial’s two-year partnership with NextGen.Net. “NextGen.Net has always been on the front foot and keen to understand our business needs and pain points,” he says.

“They have worked very closely with us to help digitise our processes and improve our customers’ journey and overall experience.”

Carn adds, “At NextGen.Net our goal is to practise the art of active listening. I adhere to the words attributed to the Greek philosopher, Epictetus: ‘We have two ears and one mouth so that we can listen twice as much as we speak’.

“We become experts in our customers’ ongoing requirements and that ensures we deliver the optimal solution.”

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NEWS

MARKET BIG REALITY CHECK FOR AUSSIE BUSINESSES latest data from digital credit reporting bureau CreditorWatch reveals ongoing challenges in Australian business.

According to the monthly CreditorWatch Business Risk Review, the number of businesses entering administration rose for the first time since June, up 11% in September.

Business defaults went up by 23% – the first increase since May 2020.

CreditWatch CEO Patrick Coghlan said the figures showed that some businesses reliant on government support had accepted reality and were taking steps to settle with their creditors.

THE

SYDNEY RENTAL MARKET SLOWING DOWN AGAIN rental market reversed its slight turnaround in August after it reported an increase in vacancy rates in September, according to the latest report from the Real Estate Institute of New South Wales (REINSW).

Over the month, vacancies in Sydney jumped from 3.5% to 4.1%, with the inner- and middle-ring regions both reporting higher vacancy rates of 5.5%. REINSW CEO Tim McKibbin said the rise in the level of vacancies reflected another slowdown in the city’s rental market.

SYDNEY’S

BUILDING SCHEME BOOSTS HOME SALES DESPITE COVID EFFECT The latest data from the Housing Industry Association on new home sales reveals buoyancy in the market, thanks to the HomeBuilder program home sales remain elevated despite the continued challenges of 2020, with sales now 11.8% higher in the seven months since restrictions came in than at the same time last year, according to the latest HIA New Home Sales report.

Housing Industry Association chief economist Tim Reardon believes the HomeBuilder initiative has played a huge part in these results.

“HomeBuilder has been successful in providing consumer confidence for those customers that had delayed a major investment decision earlier in the year,” Reardon said.

NEW

“The program has also brought buyers into the market that would otherwise have not been able to purchase their first home for a number of years. This increase in sales will support the construction of detached homes in the wake of the COVID recession and pull the rest of the economy forward into 2021.”

The positive impact of HomeBuilder has varied across the states. Over the seven months to September, sales have increased in WA by 95.7% compared to the same time last year. Queensland (+7.1%) and NSW (+3.3%) have also increased. SA has remained steady (+0.5%), while in Victoria

sales are down by 10.8%.

“Despite a fall in sales in Western Australia in the month of September, new home sales in the seven months since March are almost 100% higher than at the same time in 2019. This should see an increase in new home building to levels last experienced a few years ago but not back to the boom levels of 2014,” said Reardon.

Significant new investment was coming into SA, with a very strong start predicted for 2021. Sales in NSW continued a slow and steady rise, with a 9.7% increase in the September quarter compared to the June quarter. NSW sales were consistent with 2019.

Reardon said new home sales in Victoria were surprisingly strong considering the Stage 4 lockdown restrictions.

“This likely reflects contract negotiations that commenced before restrictions came into effect.”

“HomeBuilder has been successful in providing consumer confidence for those customers that had delayed a major investment decision earlier in the year” Tim Reardon Chief economist, Housing Industry Association

PRIVATE NEW HOME SALES ACROSS AUSTRALIA (SEASONALLY ADJUSTED) HIA new home sales

HIA new home sales: 3 months rolling average

Source: ABS and HIA

7,000 3.8%

6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Sep 17 Nov 17 Jan 18 Mar 18 May 18 Jul 18

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Sep 18

Nov 18 Jan 19

Mar 19 May 19 Jul 19

Sep 19 Nov 19 Jan 20

Mar 20 May 20 Jul 20

Sep 20

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28/10/2020 12:59:14 PM

NEWS

A G G R E G AT O R S

VIRGIN MONEY ADDED TO AGGREGATOR PANEL has been welcomed onto the lender panel of another aggregator. Vow Financial’s network of 1,250 accredited brokers will now be able to access the group’s Reward Me Home Loans.

“We’re delighted to be partnering with Vow to offer their customers greater choice and a rewarding borrowing experience,” said Greg Boyle, CEO of Virgin Money. “We remain committed to doing our part to maintain a competitive and sustainable mortgage broking industry.”

VIRGIN MONEY

BUSINESS MANAGER TAKES ON FRANCHISEE ROLE Mortgage Choice has announced that one of its franchise managers will change roles to become a franchisee.

After having directed the bulk of the firm’s growth efforts at its franchise network in the last five years, NSW franchise business manager John Chappelow will step down to operate a Mortgage Choice franchise in Sydney CBD. The firm appointed a new head of franchise recruitment, Jerome Smith, in August.

AGGREGATOR

“We very much look forward to working with the PLAN team and their members to help create new opportunities ... and grow broker businesses” Jonathan Street

CEO, Thinktank

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PLAN INCREASES PRODUCT RANGE OFFERED TO BROKERS In an effort to provide its brokers with more product options, PLAN Australia is relying on a new partnership with Thinktank PLAN Australia has announced the expansion of its white label offering with two product brands provided through a partnership with Thinktank.

PLAN CEO Anja Pannek said the move would further empower the group’s members to find the right solutions for its customers.

She said the PLANEDGE commercial and PLANEXCEL residential white label products would give the aggregator’s network direct access to more options, helping them deliver stronger outcomes.

“PLAN Australia’s strategic AGGREGATOR

partnerships allow us to work closely with our lender partners and target diverse market segments,” said Pannek.

“We are thrilled to be able to partner with Thinktank to offer more options for our members and their customers.

“As the lending environment continues to change and evolve, PLAN Australia continue to look for new ways to partner with businesses that provide opportunities for their members.”

Thinktank CEO Jonathan Street was also enthusiastic about the partnership between the two groups.

“Thinktank has a proud track record of 100% commitment to the broker channel, and we couldn’t be more pleased to now be partnering with the PLAN team to make available a full range of commercial, residential and self-managed super fund mortgage product options to their member network,” Street said.

“Our central objective is to provide brokers and their clients with financial solutions that meet individual needs and back up every transaction through highly skilled and experienced hands-on support from our national team of partnership and relationship managers.

“We very much look forward to working with the PLAN team and their members to help create new opportunities, support quality client relationships and grow broker businesses.”

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FE AT URES

SPECIAL REPORT

BANKING ON A SMART FUTURE IN LENDING It’s been a thrilling year for smartbank 86 400, culminating in the digital newcomer being named Fintech Lender of the Year at the 2020 Australian Mortgage Awards

86 400 AT A GLANCE

86 400 seconds in a day

2019 launch of 86 400

13 aggregator partners

>2,000 accredited brokers

<2 hrs fastest approval time

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team at 86 400 revelled in their momentous achievement at the AMAs last month, but far from resting on their laurels they have their sights set on the future, with plans to add to their broker network and launch new home loan products.

Australian Broker caught up with the bank’s lending product lead, Melissa Christy, and national manager broker distribution, George Srbinovski, to discuss the impact of the AMAs honour and how 86 400 aims to build upon its success after setting up a year ago.

“Everyone at 86 400 was thrilled to be named Fintech Lender of the Year,” Christy says. “It’s been a big year for us. I think our win can be attributed to us giving brokers and customers a better experience.”

She also points to 86 400 being the first and only neobank, or smartbank, which operates purely online, to launch mortgages and deposits in its first year of operation.

“I also think that having a different offering to all the other lenders has helped us stand out in the market,” Christy says.

“We don’t deal with paperwork and therefore don’t ask for supporting docs from applicants. We use data right throughout the lending process.

We are the first lender in the broker channel to do this.”

86 400 doesn’t have physical branches. Customers bank online via a mobile app, which features spending data, prediction of upcoming bills, an Energy Switch THE

service on power bills, and offset savings accounts. The bank has 110 staff, all based in Australia.

Christy says she doesn’t believe traditional banks will transition to smartbanks because they have a broad, complex offering and a significant legacy to overcome.

“I think we’ll see larger banks become more digitised over time and improve their offerings to compete.”

86 400 has faced significant challenges this year due to COVID-19, but Christy says that by

keep writing business through the pandemic.”

Srbinovski says 86 400’s digital process is different to what brokers are used to, so it can be harder to win the first deal.

“After they do complete their first deal, we see the second and third come through much quicker, and they’re really happy with the experience,” he says.

Achievements over the last 12 months include partnering with a wide range of aggregators

“Having access to multiple funding sources in your first year helps ensure that you can keep writing business through the pandemic” Melissa Christy, lending product lead, 86 400 providing a “truly digital experience”, including applications, verification and document signing, no changes in process were required.

“This pandemic has been disruptive, particularly for purchases in Victoria,” she says. “It has proven our ability to constantly shift the way we do things, such as working from home, video meetings with brokers and vendors, and affirming our digital process is contact-free.

“Having access to multiple funding sources in your first year helps ensure that you can

and broker groups (86 400 is now working with six out of 10 brokers nationally), introducing tiered LVR variable rate pricing and building a great BDM team.

“Turnaround times to unconditional approval have been achieved in under two hours, which is helpful when an applicant purchasing has been let down by their current provider without an answer before going to auction,” Srbinovski says.

“We have had an amazing response from brokers wanting us

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In partnership with

Melissa Christy, lending product lead, and George Srbinovski, national manager broker distribution, 86 400

on their aggregator panel, which helped us get AFG and Connective on board.”

The bank now has 13 aggregator partnerships for distribution, including AFG, Connective, Vow Financial, Specialist Financial Group, Purple Circle and, most recently, Mortgage Choice.

The federal government’s planned changes to the Credit Act, due to come into effect next March if they pass Parliament, will alter responsible lending obligations by

shifting the burden of responsibility from lenders onto borrowers to provide accurate financial information about their ability to repay a loan.

But Christy says the changes won’t affect 86 400’s model or approach. “Understanding a customer’s financial position is critical to help them make the right decision about how much and when they borrow,” she says.

“However, it will give us the opportunity to further simplify our

offering and deliver even faster turnaround times.”

The COVID pandemic and ensuing financial hardship has also led to more people seeking out specialist loans, but 86 400 has no plans to enter that space.

“We will look to expand eligibility in the near future, given today we only cater for up to 80% LVR and PAYG borrowers,” says Christy.

Major changes to the 86 400 mortgage process will be launched this month that will provide

“even better” customer and broker experiences and speed up decision-making, she says. Other improvements being worked on include changes to the customer app that will help people save and pay off their home loans faster.

A new home loan product will be revealed this month, and the bank is adding another 500-plus brokers to its accredited broker list.

“We’re also in conversations with several others – so watch this space,” says Srbinovski. AB www.brokernews.com.au

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PEOPLE

Have an interesting deal?

Have a particularly difficult or interesting deal? Why not share it with us? Email:

antony.field@keymedia.com

BIG DEAL Broker George Massouridis, winner of the Local Business Awards Canterbury Bankstown Most Outstanding Professional Services award, had to think outside the box to help his clients whose lender had rejected their request for a loan for an investment property

They were now ecstatic that we had followed their application up so promptly and we had an option which successfully met their needs. This was a fantastic outcome for our clients and gave them confidence that they were in great hands with us.

THE FACTS THE TAKEAWAYS

Client Three borrowers – a self-employed applicant and two construction industry employees

Loan size and term $1,376,000 over 30 years

Goal To secure a loan for purchasing a house as an investment property

The borrowers were new clients who were introduced to us by a long-time loyal client of Mortgage Navigators.

They came to us looking for finance options to help secure an investment property purchase.

We were working with a short time frame, as the borrowers had already committed to purchasing the property.

The challenge they faced was that their existing lender – one of the major lenders – had declined their proposal due to the self-employed applicant not having his financials up to date. The clients were disappointed because they had the capacity and had been with this lender for many years but were declined for the loan simply because of their employment status. This meant we had to think outside the box and find a lender that would accept their proposal quickly, as the cooling-off period was expiring shortly.

Our number one goal is to really understand our clients’ needs and apply our experience to help them achieve their goals. Ensuring we also have a follow-up system in place helps us overcome some of the difficulties clients can face in securing a loan

THE SOLUTION

16

Lender Aggregator Pepper Money FAST

would be most suitable for the client.

It does this by factoring in the client’s credit file, proposed loan amount and LVR, and then it provides a product recommendation, an indicative interest rate and the repayment amount.

This helped us save time by comparing Pepper Money’s offerings with those of other lenders. In addition, the support of Drew Clegg, our business development

THE SCENARIO

The search began to find to a lender that would suit them. We had multiple lenders on our panel that could cater to these types of applicants, but not all of them could assist with a quick turnaround.

Due to our experience and great understanding of all types of loans at Mortgage Navigators, we were able to workshop the deal and get a commitment from Pepper Money that the application would be assessed within 24 hours.

Utilising the Pepper Product Selector tool assisted us with this. The tool enabled us to establish which product

Location Sydney

At Mortgage Navigators we understand that things can sometimes be complex and we need to think outside the box.

With this in mind, our number one goal is to really understand our clients’ needs and apply our experience to help them achieve their goals. Keeping our clients’ goals in mind and ensuring we also have a follow-up system in place helps us overcome some of the difficulties clients can face in securing a loan.

Not all clients’ circumstances neatly fit the strict lending criteria that financial institutions rely on when considering loans, and that’s where we come in.

We understand that every client is different and that we have to look at the whole picture. It’s important that we are constantly checking in with our clients to see where we can assist them. When

George Massouridis CEO and principal, Mortgage Navigators

manager at Pepper, proved invaluable.

He took the loan application under his wing to get things moving along. We were able to tell our clients that Pepper Money’s near prime product, which required an accountant and applicant declaration to validate their position, was an option.

The clients were strong applicants with a great equity position with their current lender. Once confirmed with Pepper Money, we were then able to go back to our clients to give them the good news that we had found a suitable lender.

The client had originally lost all hope about being able to secure this investment purchase due to their circumstances and the short time frame.

clients are declined for a loan by a mainstream lender, this doesn’t necessarily mean that there are no options available out there to suit their needs.

Constant communication with our lenders and business development managers, such as Drew Clegg at Pepper Money, ensures that we have the support to get things done promptly.

We go above and beyond for our clients by forensically examining all their circumstances and investigating which lender options are available.

Persistence and knowledge pay off – these are the keys to success in this highly competitive industry. AB

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CONGRATULATIONS TO THE 2020 WINNERS AND EXCELLENCE AWARDEES Despite an unprecedented year for the industry, mortgage professionals have continued to raise the bar in terms of service, innovation, professionalism and leadership.

And nowhere is this more evident than in the 2020 Australian Mortgage Awards winners and excellence awardees.

Australian Broker, MPA and publisher Key Media extend warm congratulations to them all.

The winners and excellence awardees will be profiled in MPA Issue 20.12, out in November, which will take an in-depth look at their achievements.

For the full list of finalists or more information, visit australianmortgageawards.com.au

Event Partner

Award Sponsors

BROKER

Official Media

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Organiser

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AUSTR ALIAN MORTG AGE AWARDS

BEST OF THE BEST BOQ BROKER BEST CUSTOMER SERVICE FROM AN INDIVIDUAL OFFICE

Presented by Kathy Cummings BOQ Broker

Winner Ruan Burger Time Home Loans

ONDECK AGGREGATOR OF THE YEAR (>500 BROKERS)

Presented by Cameron Poolman OnDeck

Winner Loan Market Group Sam White

MFAA YOUNG GUN OF THE YEAR — FRANCHISE

Presented by Stephen Hale MFAA

Winner Katie Dowton Mortgage Choice

was an awards ceremony like no other, but brokers, lenders and aggregators still found ways to come together, dress up and honour the best in the business at the Australian Mortgage Awards 2020.

Unable to hold the usual glamorous black-tie event due to COVID-19 restrictions, Key Media streamed a virtual awards evening on 16 October, with the support of IT

thousands of Australians who have paused their mortgage payments will need professional support from us as they resume, extend or rearrange their obligations.

“The certainty that Westpac will continue to embrace the contribution you make to help open doors for more Australians is a given.

“We can be certain that the people and groups recognised tonight will continue to strive to be

“Australians trust and value the independent service and advice that brokers provide” Warren Shaw, head of broker distribution, Westpac event partner Westpac and the award sponsors.

Many of the finalists gathered at offices or colleagues’ homes, food and drinks on hand, to discover the winners. There were also panel discussions featuring finalists.

With comedian Lawrence Mooney hosting the event, 30 awards were presented, including the two major national honours: Westpac Australian Broker of the Year, won by Mhairi MacLeod of Astute Ability Group, and Australian Brokerage of the Year, which went to Smartmove Professional Mortgage Advisors.

Westpac’s head of broker distribution, Warren Shaw, said it was the 11th year Westpac had proudly partnered with the AMAs. In his presentation on the night, Shaw talked about how much had changed since he spoke on stage at the 2018 awards, but he remains positive about a strong future, in spite of the current uncertainty.

“Australians trust and value the independent service and advice that you [brokers] provide,” he said.

“We can be confident that the

the best they can be and they will be spurred on by those who aspire to achieve the same goals.

“Thank you, everyone, for another big year and for all that you have achieved for your customers.”

Australian Broker caught up with some of the award winners to talk about their achievements: Mhairi MacLeod, Astute Ability Group What an incredible year it has been for Mhairi MacLeod, who not only won the prized Westpac Australian Broker of the Year award but also took out Pepper Money Broker of the Year – Specialist Lending and Broker of the Year – Regional.

The founder and principal of Central Coast-based Astute Ability Group says she is absolutely thrilled and honoured to have won Broker of the Year, describing it as the pinnacle of her career, although she missed being able to share the moment with her interstate colleagues at a glitzy dressed-up event.

“When they announced it and were going through the list of people

AWARD SPONSORS

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In partnership with

NEXTGEN.NET NEW BROKERAGE OF THE YEAR

before me, I had already won those other two awards and I didn’t even imagine I would have won Broker of the Year. It was a real shock.”

MacLeod, who focuses on commercial and asset lending, says she isn’t sure how long it has been since a woman last won the top honour, but it’s a privilege to receive the award in 2020.

“The feeling that it gave me was just ‘wow’ because you had the likes of Mark Davies before me, and huge credit to all those gentlemen in the past … they have paved the way for women who want to be successful.”

She says she has seen a big shift in the industry since she became a broker 22 years ago, with barriers to female participation gradually being eroded. Brokers both male and female are now more willing to share information.

“The lines of communication for men and women to share are far greater than they were 22 years ago.”

MacLeod says winning the regional broker of the year award is a fabulous reward.

“Just because you are a regional broker doesn’t mean you can’t be as good or as a big as those in the CBD. My base is regional, but I have now become national.”

Winning the specialist lending award was also satisfying, she says, as it acknowledged the creativity,

Presented by Amanda Ray NextGen.Net

called non-conforming or lending with high-end costs. Everyone is unique now; there is no such thing as a vanilla deal.”

Darren Little, Smartmove Professional Mortgage Advisors Smartmove has come a long way since the brokerage first started up on the Lower North Shore of Sydney in 2003 with one broker working out of his unit.

“We’ve grown; we now have 21 brokers in Australia and 25 staff in the company we own in the Philippines that does a lot of our support work and customer interactions,” says CEO Darren Little.

“Our real aim as a business is to help our customers have an amazing customer experience and turn that one customer into two customers.

“We’re a business that hasn’t advertised for 17 years. We rely on that

Winner Experity Capital

BENDIGO AND ADELAIDE BANK YOUNG GUN OF THE YEAR — INDEPENDENT

Presented by Raj Kapoor Bendigo and Adelaide Bank

Winner Thomas Morison Smartmove Professional Mortgage Advisors

PEPPER MONEY BROKER OF THE YEAR — SPECIALIST LENDING

“I was extremely delighted to win this prestigious award, given the high quality of the candidates” Greg Pierlot, principal, The 500 Group research and solutions found for clients who didn’t fit the “vanilla deal”.

“I’m glad the terminology is changing, because years ago it was

word-of-mouth referral approach.”

Little says winning four awards – Australian Brokerage of the Year, CBA Brokerage of the Year (>20 staff ), and Bendigo and

OFFICIAL PUBLICATIONS

Presented by Siobhan Williams Pepper Money

Winner Mhairi MacLeod Astute Ability Group

ORGANISED BY

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Adelaide Bank Young Gun of the Year – Independent, which went to Smartmove broker Thomas Morison – is great recognition of the team’s efforts. He attributes Smartmove’s success to its focus on team collaboration, productivity and process.

“Everyone has a part to play … we are very proud of the results in what has been a challenging year.”

Smartmove’s staff and business

BANKWEST BEST AGGREGATOR BDM

Presented by Ian Rakhit Bankwest

Winner Peter Bryant Vow Financial

use technology to stay connected.

Much of what we have learned will be retained as Victoria moves progressively towards some form of COVID normal,” Pierlot says.

He attributes his and the team’s success to continuous improvement, the brokerage’s purpose-built Loan and Bankability Assessment tool, and educating clients about finance through blog posts, e-books and videos.

“Aggregation is such a competitive market, so being announced as a finalist and eventually the winner was great” Gerald Foley, managing director, National Mortgage Brokers

LA TROBE FINANCIAL BROKER OF THE YEAR — COMMERCIAL

Presented by Suzanne Hemsworth La Trobe Financial

Winner Greg Pierlot The 500 Group

CBA BROKERAGE OF THE YEAR (>20 STAFF)

Presented by Matthew Poulter CBA

20

Winner Smartmove Professional Mortgage Advisors

partners gathered at the company’s Rhodes office to watch the AMAs. “It was a great reason to get the team together and celebrate – we have done a lot of Zooming over the last eight or nine months,” Little says.

Training is also important at Smartmove. Broker Thomas Morison’s 2020 Young Gun of the Year – Independent award is the brokerage’s fifth win in the category in 11 years.

“One of our brokers who won Young Gun 11 years ago is now training our new brokers,” Little says.

Greg Pierlot, The 500 Group Operating for months during the lockdown has not put the brakes on Greg Pierlot, principal broker at Melbourne’s The 500 Group, which provides specialised expertise and service in commercial, mortgage and equipment finance.

“I was extremely delighted to win this prestigious award, given the high quality of the candidates that were nominated,” Pierlot says.

“We watched the awards as a team via Zoom, and whilst unable to be together we were still able to celebrate as though we were at the awards night.”

Pierlot says winning the La Trobe Financial Broker of the Year – Commercial award was a team effort, as everyone at The 500 Group has worked extremely hard, bolstered by the support of aggregator FAST, during what has been a challenging year.

The lockdown has brought the team closer together, with greater collaboration and support.

“We now operate remotely but

“A lot of business owners and individuals will be struggling over the coming 12 months as we move out of COVID,” Pierlot says. “More than ever they will need the support of the broking industry, which will play a critical role in the recovery due to options and choice that we can provide to clients.”

Kris Menon, Origin Finance Winning the FBAA Broker of the Year – Independent award was something unexpected for Origin Finance broker Kris Menon, who has been in the industry since 2006.

The Holsworthy resident started out as a part-time broker and went full-time seven years ago.

Menon says he shouted so loudly at home on learning of the win that he scared his 23-year-old son in another room.

“I couldn’t believe what had happened, because the competition was huge. I did not give myself a chance … I was pleased to be in the top 10,” he says. “I went for a long walk because my heart was beating so fast.”

Menon says there are a few people who have contributed to his success, including Choice partnership manager Rob De Bari, who rang to congratulate him from his hospital bed.

Menon loves calling clients to say their loan has been approved, working according to plan and explaining loans clearly to customers, including fees and equity, over the space of 90 minutes.

“I like seeing the smile on their face when they have achieved their property and achieved their dream.”

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In partnership with

He has some simple rules he lives by: not every conversation needs to be a transaction; maximise time to create business opportunities; work hard for clients, and keep promises.

“If clients come and they don’t like what I propose and they go away, that’s fine with me, I’ll still invest time in them. I’ll stay in touch until the day they feel confident.”

COVID has been difficult but has also created opportunities for quicker, digital documentation, Menon says.

Aaron Christie-David, Atelier Wealth Success is the sum of small efforts repeated day in and day out – that’s the mantra that the broker team of Aaron and Bernadette Christie-David and analyst Damien Walker live by at Atelier Wealth.

“We’re thrilled, humbled and stoked to have been recognised as a winner,” says managing director Aaron on the company being named Brokerage of the Year (1–5 Staff ). We have so much respect for our colleagues who were finalists in our category, and they undoubtedly run incredible brokerages.

“Being recognised gives our clients the reassurance we’re doing the best possible job we can and certainly gives our team the lift to keep going.”

Atelier Wealth breaks its annual target down into quarterly, monthly, weekly and daily targets.

“We know what actions we need to do daily to achieve our yearly goal,” Aaron says.

BROKERAGE OF THE YEAR (1—5 STAFF)

Presented by Andrew Dallisson Westpac

buyers and refinancers.

Aaron says there was very little they could control about COVID-19, but “we could make a promise to each other that we could use this as an opportunity to grow, personally and professionally”.

“I’m so proud to say that we grew as a team, and our business has thrived as a result. We are empathetic to so many businesses who have been hit hard, so we know we are incredibly blessed to be busy in this environment.”

George Karam, BF Money BF Money director George Karam says winning the Brokerage of the Year (6–20 Staff ) was a great honour and he knows the formula for his Parramatta brokerage’s success: “I work with the best team of professionals that I know.”

“I couldn’t believe what had happened, because the competition was huge”

Winner Atelier Wealth

FBAA BROKER OF THE YEAR — INDEPENDENT

Presented by Peter White FBAA

Winner Kris Menon Origin Finance

MORTGAGE CHOICE FINTECH LENDER OF THE YEAR

Kris Menon, broker, Origin Finance He and Bernadette celebrated the awards night at home with their two-year-old child.

“The Key Media team did an incredible job, however, to make the AMAs special, and we’re so happy for the winners and finalists who were recognised,” Aaron says.

Atelier Wealth launched in July 2016, and its client base includes property investors, self-employed clients and SMSF investors as well as first home

BF Money boasts a mature team of nine “highly focused and capable people with an incredible work ethic”.

“They are all big believers in our value proposition, which is to deliver ‘tailored debt products, expertly delivered, that enrich lives and businesses’, ” Karam says.

When BF Money started up in 1999, Karam had two partners and focused on white label mortgage management.

“As the young guy in the office,

Presented by Susan Mitchell Mortgage Choice

Winner 86 400 Melissa Christy

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AUSTRALIAN BROKERAGE OF THE YEAR

Presented by Suzanne Wood Westpac

Winner Smartmove Professional Mortgage Advisors

I would write the commercial transactions that kept coming our way,” he says. “When I took over from the last partner in 2013 and became the sole director, I decided to put commercial broking front and centre of the business.”

Karam says COVID-19 has boosted business because BF Money is seen as a “solution provider”.

“When credit gets constrained, we usually get a sharp increase in leads and generally trade well though difficult environments.”

He says the challenge is to provide suitable quick solutions and, due to COVID, the brokerage has increased its investment in systems, processes and professional development.

BANK OF THE YEAR

Presented by Stephen Hale MFAA

Winner ING Glenn Gibson

BROKERAGE OF THE YEAR — DIVERSIFICATION

Presented by Suzanne Hemsworth La Trobe Financial

22

Winner Belinda Gibson TM Finance Group

Belinda Gibson, TM Finance Group Melbourne brokerage TM Finance Group is not selective when it comes to assisting clients. Its loan book includes everything from an organic dairy farm to a petrol station, as well as SMSFs and specialised commercial and residential properties.

Belinda Gibson set up TM Finance Group in March 2016 as a sole broker focusing on property, cash flow and specialist lending. She is supported by a team of four.

“We are extremely proud and grateful to receive this award and to have the support of our aggregator FAST, banks, BDMs, industry bodies, colleagues, clients and Key Media – who helped to make it all happen,” Gibson says after winning Brokerage of the Year – Diversification.

While being in Stage 4 lockdown in Melbourne was “not quite as exciting” as flying to Sydney for a gala night and weekend away, Gibson says she and her daughter “leapt from their chairs screaming” on learning of the award.

She credits customer service for the brokerage’s success.

“We aim to make each client feel like they are our only client. We focus on creating a connection, building a valued relationship … we want to remain memorable to them.”

Referred business is also crucial. Sixty-four per cent of all of TM Finance Group’s business is generated by referrals, while the remainder comes from word-of-mouth and repeat clients.

Gibson says many clients have put their plans on hold due to COVID, so the brokerage has had to focus on marketing for new leads and building relationships with new referral sources.

“You can quickly overcome some challenges with technology, which has been great, and you have the advantage of learning new skills and improving productivity,” she says.

“Back in March we committed to calling every client to check on their wellbeing and how COVID-19 was impacting them personally and professionally. We offered them support where we could.”

For the full list of AMA 2020 winners, see the upcoming issue of MPA magazine or go to australianmortgageawards.com.au. AB

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In partnership with

NON-BANK OF THE YEAR

AGGREGATOR OF THE YEAR (<500 BROKERS)

Presented by Ian Rakhit Bankwest

Winner National Mortgage Brokers Gerald Foley

Presented by Leah Renwick FBAA

Winner Resimac Scott McWilliam

WESTPAC AUSTRALIAN BROKER OF THE YEAR

PINPOINT FOCUS ON BROKERS’ NEEDS PAYS OFF brokers at the centre of everything National Mortgage Brokers does has led to the Melbourne company winning this year’s Aggregator of the Year (<500 Brokers) award, says managing director Gerald Foley.

“Over the years we have launched a number of initiatives to assist our brokers better understand and grow their businesses.

Their success is our success. We also have a great team that is very focused on delivering for our brokers all the time,” he says.

“Aggregation is such a competitive market, so being announced as a finalist and then eventually the winner was great.”

Foley says the aggregator shared the news online and celebrated at a catch-up the following week.

Its focus has always been on providing a superior support model to brokers who are looking to grow their businesses.

“Our mantra is ‘Broker to Broker Business’. By that we mean we are focused on providing insights, tools and support to help brokers transition from being a broker to building a broker business.”

Foley says that in a year like no other nMB quickly pivoted to provide information and guidance to its broker partners.

“There was a lot of confusion and change. Brokers across the whole industry proved their worth to customers and, importantly, lenders,” he says.

Foley believes that mortgage broking is in for change like it hasn’t seen before.

“Borrowers are now prepared to meet virtually, whereas pre-COVID-19 many felt face-to-face actually meant in person,” he says. “2020 has been a year of many challenges; however, many lessons and changes to ‘business as usual’ will stick.”

PLACING

Presented by Bridget Wallington Westpac

Winner Mhairi MacLeod Astute Ability Group

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BUSINESS PROFILE

BOOMING IN THE MIDST OF A PANDEMIC Resilience, agility and digital innovation have been the hallmarks of Resimac’s success, culminating in its Non-Bank of the Year win at the 2020 Australian Mortgage Awards

RESIMAC: FY20 HIGHLIGHTS

$4.7bn home loan settlements 30%

$14.9bn total AUM 11%

$12.4bn home loan AUM 21%

$56m statutory net profit after tax 19%

$188.6m net interest income 60%

1.8c final dividend 20%

24

CEO Scott McWilliam regards the lender’s prestigious Non-Bank of the Year win as an endorsement of its performance over the last few years.

He says Resimac’s delivery has resonated well with its business partners and customers.

“We have made a considerable investment into our products, our people and our processes and will continue to do so to ensure we remain the lender of choice for the Australian mortgage market.”

The non-bank has been around for 35 years. It has offices in Sydney and Perth, with 250 staff operating across Australia, New Zealand and the Philippines, serving more than 50,000 customers.

Resimac pioneered residential mortgage-backed securities in Australia and was one of the first non-bank lenders to offer specialist lending products.

It bought stakes in Adelaide-based asset finance provider Positive Group in 2019, and the partnership resulted in Resimac becoming the only non-bank lender in Australia with an end-to-end digital loan origination process. Earlier this year it bought a controlling stake in financial services company IA Group.

During calendar year 2020, Resimac issued $1.8bn in mortgagebacked bonds, and a further sizeable issue is underway. The lender also renewed and extended almost $2bn in funding facilities with support from onshore and offshore partners.

Despite the difficulties posed by RESIMAC

the coronavirus pandemic, including economic uncertainty, McWilliam says Resimac has achieved record origination volumes and strong portfolio growth well above system; in fact, this has been the firm’s most successful year yet.

“It’s a testament to our focus on consistent and timely credit decisioning and a service offering that resonates with brokers and consumers alike.”

“The speed at which our business transitioned to a working-from-home

the early commitment to continue paying trail on loans that are on a payment moratorium.”

Digital transformation meant Resimac was well placed to adapt when COVID-19 hit.

McWilliam says several innovations were introduced this year to make it quicker and easier to apply for and settle a home loan.

These included a complete end-to-end digital loan origination process allowing brokers to work from any location, lodge their

“Using automation, digitisation and AI, the simple and easy-to-use technology-based solutions will provide a richer experience for customers and brokers” model and our swift implementation of support structures for brokers and borrowers showed remarkable resilience and agility.”

McWilliam says the lender’s various measures to support borrowers have taken the pressure off brokers, who are typically the first point of contact when a borrower experiences financial hardship.

“We also recognised that brokers would experience significant financial hardship themselves if they were to miss out on trail commissions, so we reassured our brokers and made

applications efficiently and monitor their progress with real-time status updates – all without having to meet clients face-to-face.

Resimac borrowers can now receive and execute mortgage documents via email, avoiding the need to print and sign a bulky paper-based documentation pack.

“While these enhanced digital capabilities were already largely in place when COVID-19 hit, they quickly became crucial for ensuring our broker partners could continue their normal business

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In partnership with

Scott McWilliam, CEO, Resimac

activities despite the COVID-19 social distancing restrictions,” says McWilliam.

Resimac’s digital transformation project produced workflow improvements to maintain industry-leading service-level agreements of one to two days across its product range, even when the pandemic led to turnaround times blowing out across the country.

“We have partnered with some of the most respected and proven technology and service providers to create a platform for sustainable and scalable growth.”

Recent digital initiatives include application workflow improvements, a digital telephony

“We reassured our brokers and made the early commitment to continue paying trail on loans that are on a payment moratorium” integrated customer contact system and a partnership with artificial intelligence platforms.

“Using automation, digitisation and AI, the simple and easy-to-use technology-based solutions will provide a richer experience for customers and brokers.”

The digital transformation project is set for completion in FY22.

Looking ahead, McWilliam says the trend of consumers moving away from the big four banks will continue, and with so many options to choose from, brokers are well placed to help borrowers navigate the market and find the best lenders and most suitable products.

“With a history steeped in product innovation, non-banks are well poised

to support brokers as they deliver these solutions to their clients.”

Despite all of Resimac’s successes, there remains a sizeable opportunity for business growth.

“Our goal is to continue to expand our market share through our third party channel in a way that is scalable and sustainable, as well as build out a digital platform that provides a market-leading experience for both brokers and borrowers,” McWilliam says.

“Our business partners can be reassured that we will not be resting on our laurels as we maintain our focus on continual improvement in both our loan origination and customer service experience.” AB www.brokernews.com.au

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PEOPLE

Do you have a question for our broker mentors?

Email your question to:

antony.field@keymedia.com

BROKER ON BROKER

Adaptation and innovation are the keys to maintaining success during these unprecedented times featuring COVID-19 and looming new lending laws. Zippy Financial principal broker Louisa Sanghera shares her thoughts on how to meet the challenges of networking and meeting clients in a virtual world

The COVID pandemic has made it difficult for brokers to meet clients in person.

How should brokers operate when communicating with clients in a virtual world?

Many brokers, including me, A were already using a workfrom-home model, so the switch to meeting on Zoom or the phone wasn’t much of a change. But we’ve all had to adapt very quickly to changes, and most brokers would agree that the technology innovations that have come about since COVID have made life easier. The obvious one is client verification of identity.

Previously we had to be in the same room as the client to physically do an ID check. Now, many banks allow us to do a video call and take a screenshot of the person holding up their ID. This saves the broker and client a lot of time.

Q

Responsible lending laws will change in January, easing the rules on assessing borrowers’ expenses.

What effect will this have on brokers?

It’s going to have a huge A impact because it will take the onus off the lender and broker and put some responsibility back on the borrower to make a financial decision they can afford. This legislation puts enormous pressure on brokers and support staff.

We have to spend hours reading bank statements to make sure all of the Uber Eats, restaurant meals, shopping and gym memberships

Q

are accounted for in a person’s loan application. We are always here to educate and offer guidance, but now it’s going to be up to the borrower to take on more accountability and responsibility.

How important is networking to ensuring a successful career?

Networking is a huge part of A this industry, which is why I set up the Connect for Success group six years ago. We won a Best Community Engagement Program award for it. We have hundreds of businesses on the Northern Beaches and North Shore, and I have a full-time staff member to run and organise events. We don’t charge any fees; it’s sponsored by Zippy. I am so proud we’ve been able to help hundreds of businesses.

Pre-COVID, we’d get 30 to 40 businesses turning up for morning events and 100 people to our evening events. During COVID, we have had to adapt, and we’ve done online coffee mornings, Zoom lunch meetings and wine nights over video calls.

Q

Despite federal spending, it seems the economy will struggle in the medium term. What do you see as the bright lights on the horizon for brokers?

Brokers are very resilient and A we’ve survived different challenges, including the GFC, onerous regulatory reform and a royal commission. We’ve been able

Q

Louisa Sanghera, principal broker, Zippy Financial

“Brokers are very resilient and we’ve survived different challenges – the GFC, onerous regulatory reform and a royal commission” to adapt and ensure that we’re able to provide borrowers with real loan choices and options. Many Australians don’t realise that if their bank declines them for a loan, that doesn’t mean they will be

declined by all banks. During COVID we’ve demonstrated the value and service we provide to our clients. The broker share of the broader loan market is only going to grow as a result. AB

PITSTOP MENTORING Are you new to the industry, or simply keen to learn from experienced brokers who have words of wisdom to share? This is your opportunity for pitstop mentoring! If you have a question you’d like a senior broker to answer, contact us and look out for an expert answer in a future issue.

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DATA

QUEENSLAND

VIC SPOTLIGHT

If there’s one market investors should keep an eye on, it’s the Sunshine Coast The Sunshine Coast is emerging as Queensland’s strongest residential property market, outpacing Brisbane and Gold Coast. Over the year to June, its median house price increased by 3.8% to $622,500, while the median unit value jumped by 2.4% to $420,000.

Jarrod Fazer, senior managing director at CBRE, believes the Sunshine Coast is benefiting from the shift towards regional living amid the COVID-19 pandemic. “Places like the Sunshine Coast are reaping the benefits of a Zoom boom, with people realising that the world has probably changed forever in relation to their ability to stay connected via video conferencing,” he said.

Fazer said that during the first six months of the year, the Sunshine Coast reported strong sales activity as around 5,600 homes changed hands.

This reflected a 6.4% gain in sales on an annual basis.

It also registered strong population growth during the same period, with an increase of 2.7% per annum over the past three years.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

Metro (H)

$540,000

0.6%

1.5%

rent

yield

$410

3.9%

Metro (U)

$385,000

0.0%

0.8%

$380

5.1%

Country (H)

$441,000

0.0%

1.1%

$400

4.7%

Country (U)

$370,000

0.0%

0.5%

$350

4.9%

NEW SOUTH WALES

Rising vacancies in Sydney have reversed the slight market turnaround in August Vacancies in Sydney jumped from 3.5% to 4.1% in September, with the inner- and middle-ring regions both reporting a higher vacancy rate of 5.5%. The increase in vacancies indicates that the city’s rental market has slowed again, said Tim McKibbin, CEO of the Real Estate Institute of NSW. “Property managers are telling us that there are fewer properties coming onto the market and those that do are taking longer to rent. Older properties in need of upgrading are particularly problematic, as tenants become more picky about where they choose to live,” he said.

The Newcastle region followed Sydney’s uptick in vacancy rates, up from 1.2% to 1.5%.

Wollongong, on the other hand, reported a drop from 2.6% to 2.1%. Regional markets stood to gain from the exodus of renters from Sydney. McKibbin said vacancies in regional suburbs remained tight, with only a few recording an increase. Vacancies in Albury and Coffs Harbour increased slightly to 0.8% and 0.9%, respectively.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$915,000

2.2%

5.6%

$520

2.8%

Metro (U)

$708,900

1.1%

2.6%

$500

3.6%

Country (H)

$495,000

1.0%

5.4%

$400

4.2%

Country (U)

$427,800

1.7%

4.1%

$350

4.3%

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HOPE RESTS IN HOMEBUILDER Victorians need more time to take advantage of the federal government’s HomeBuilder scheme the government’s HomeBuilder scheme, those eligible for the grant must sign up with a builder by the end of December. The Housing Industry Association has proposed that the deadline be extended in Victoria to 31 March 2021.

“Stage four restrictions in Victoria have slowed home buying activity and with the 31 December deadline for signing an eligible home contract for HomeBuilder fast approaching, Victorians simply need more time,” said Fiona Nield, executive director at the HIA. While the state government lifted the restrictions on private inspections at the end of September, the lockdown has already affected the expected boost in housing activity from the HomeBuilder scheme.

In fact, the HIA recorded a 14.4% decline in sales activity for newly constructed dwellings in August.

UNDER

Still, despite the muted activity, median prices in the state have remained resilient.

Leah Calnan, president of the Real Estate Institute of Victoria, said the state’s housing market had managed to hold steady despite the challenges arising from the COVID-19 pandemic.

“Despite six months of COVID-19, lockdowns and moratoriums, the Victorian property market continues to prosper, with properties remaining more valuable than they were in 2019,” she said.

The standout performers in Victoria were regional properties. Houses in regional locations posted 5.1% quarterly growth in median prices and a 4.9% annual gain to $442,500.

Units in regional areas, however, reported a decline on a quarterly basis, with prices falling by 3.1%. But the median price of units was still 8% higher than a year ago.

MELBOURNE HOUSING INDICATORS — SEPTEMBER 2020 Source: CoreLogic and SQM Research

Houses

$780,836

3%

$515

2.9%

Median value

Annual growth

Weekly asking rent

Gross yield

Units

$558,952

3.4%

$390

3.9%

Median value

Annual growth

Weekly asking rent

Gross yield

SUBURB TO WATCH: WARRNAMBOOL Median price (houses) $385,000

Median price (units) $290,000

12-month growth 8%

12-month growth 14%

3-year growth Average annual growth 17%

Gross rental yield

2.1%

5%

Average annual growth Weekly advertised rent

Gross rental yield

2.1%

$290

5%

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WESTERN AUSTRALIA

WA is in need of more property investors as it faces the risk of a rental crisis

HIGHEST-YIELD SUBURBS IN VICTORIA Suburb

House

Gross rental yield

Median price

Quarterly growth

12-month growth

Average annual growth

NHILL

H

11%

$116,500

-3%

-25%

2.3%

MORTLAKE

H

9%

$167,500

0%

3%

1.9%

CARLTON

U

8%

$259,000

-24%

-32%

3.1%

ECHUCA

U

8%

$272,500

7%

2%

3.4%

TERANG

H

8%

$195,000

1%

-7%

2.4%

MORWELL

H

7%

$187,500

7%

8%

2.7%

Area

TASMANIA

Rental listings in Perth remained on a downtrend in September, dropping by 8% to 2,926 – the lowest level since 2012. Damian Collins, president of the Real Estate Institute of WA, said the state’s “reasonable rental shortage” during the early months of the year has turned into a “severe” one.

“We are now on the brink of a rental crisis,” he said. “With Perth’s vacancy rate sitting at 1.3%, it is no surprise that we are seeing listings for rent continue to lower. In addition, a number of our regional members are reporting vacancy rates close to zero, so the impact is being felt across the entire state.”

The number of days on market has also dropped significantly, down to 19 days – the lowest since June 2013. While median rents have remained stable at $360 per week, some suburbs are already experiencing increases. Collins said this made it crucial for the state government to encourage more investment in property. “There is the possibility we will run out of properties next year,” he said.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental yield

$370

4.1%

Metro (H)

$470,000

0.0%

-1.0%

Metro (U)

$360,000

-1.4%

-2.7%

$335

4.8%

Country (H)

$347,000

3.1%

2.8%

$350

5.4%

Country (U)

$180,000

-2.5%

-11.4%

$300

8.0%

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Housing grants are pushing up demand for residential land in Tasmania The increased demand for land in this state due to Tasmania’s First Home Builders Grant and the federal government’s HomeBuilder scheme is reducing supply and applying upward pressure on prices, according to Herron Todd White. For instance, the regional centre of New Norfolk reported a spike in land sales following the announcement of the housing grants. Prices of standard lots in the region increased from $75,000 in 2018 to $135,000 this year. Brighton Estate also registered strong gains, with prices climbing from around 10% to 15% since 2017.

Even newly released developments are reporting increased demand. White Stone Point Estate in Austins Ferry is one example. More than half of the available residential building lots on the site, most of which have good water views, have been sold on an off-the-plan basis, with prices ranging from $150,000 to $250,000. However, the increase in land demand has led to some local builders increasing their construction quotes.

rent

Metro (H)

$521,500

2.0%

8.5%

$450

4.6%

Metro (U)

$380,000

-0.9%

5.3%

$395

5.1%

Country (H)

$340,000

2.4%

9.8%

$320

4.9%

Country (U)

$275,000

1.5%

4.3%

$273

5.1%

Source: Except where otherwise stated, all data sourced from CoreLogic, September 2020

NICK YOUNG: TRAIL BOOK SALE EXPERT Smart succession planning starts early Maximise the sale of your trail book and business as a whole 03 8508 6666 | 0417 392 132 | nyoung@trailhomes.com.au | trailhomes.com.au www.brokernews.com.au

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PEOPLE

IN THE HOT SEAT

In the years since she was a student of banking and finance at university, Anja Pannek has built a thriving career. Now, as the CEO of PLAN Australia, she shares her passion for finance and highlights the value brokers bring to the industry

What was your first job before you entered the finance industry?

A My first job was as a graduate in the audit team at Ernst & Young in Brisbane. I had just completed a Bachelor of Business with a banking and finance major – finance was an industry that interested me from early on. Fresh out of uni, this role provided a great career foundation, allowing me to explore a number of different industries and understand some of the fundamentals of business in practice.

Q

How did you pivot from this into your finance roles?

A I eventually moved into EY’s financial services division, relocating from Brisbane to Sydney. My clients included large banks and non-ADIs, including companies specialising in securitisation – at that time a relatively new concept to the Australian market. From there I was recruited into Bankers Trust, which at the time was the largest investment bank in Australia.

It was a super-exciting high-growth and innovative organisation, which was exactly what I was after. The best thing about being part of Bankers Trust was its culture of encouraging employees to own issues and develop solutions; this was such a fantastic way to learn.

Q

Anja Pannek, CEO, PLAN Australia

What has surprised you most during your career in finance?

It never gets boring! I love a challenge, and dealing with complexity A and working in finance has given me the opportunity to learn so much as well as work with some terrific people.

Q

What is one thing you wish everyday borrowers knew about brokers?

That they should use one! Brokers can help clients navigate the A complexity of looking for finance. Using the services of a broker means you have someone alongside you, acting in your best interests and making things as simple and clear as possible. Fortunately, this message is really getting through, with more and more Australians turning to brokers to support them through the borrowing process. The best interests duty is a major value differentiator for brokers, and this is only going to further support the growth of our industry.

Q

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If you could change anything about the broking and finance industry, what would it be?

I love our industry and am proud to work with such vibrant, A resilient and determined business operators. If I had to change one thing, it would be the small number of individuals at the fringes of our industry who don’t play by the rules and bring disrepute to the thousands of people who work incredibly hard to deliver great customer outcomes.

Q

If you weren’t in your job today, what would your ideal career be?

I have to be honest – this is my ideal job! I love the industry we work A in and the people I get to work with. I’m incredibly proud of how we have grown as an industry and am excited about what prospects the future holds. AB

Q

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SWITCHING PAYS Refinance cashback

3000

$

Switch your client’s home loan to Westpac and they could get $3000

Max LVR 80%. Min loan $250k. Excludes Portfolio Loans, switches, owner occupier with interest only repayments and refinances of home loans within Westpac group. First refinance application only, apply by 31/01/2021. T&Cs, exclusions, fees apply.

westpac.com.au/brokers

Things you should know: Credit criteria, fees, charges apply. T&Cs available at Westpac. Offer current as at 18/09/2020. Only 1 $2,000 cashback per property refinance will be paid regardless of the number of loans involved. Only 1 $1,000 bonus cashback will be paid regardless of the numbers of customers, properties or applications involved. Offer may be varied or withdrawn at any time. Excludes Portfolio Loans, switches and refinances of home loans within the Westpac Group which include St.George, Westpac, Bank of Melbourne, BankSA and RAMS. Offer not available for Owner Occupier Interest Only loans or residential lending originated under family or company trusts. Premier Advantage Package: T&Cs and a $395 annual package fee apply and is payable from an eligible Westpac Choice transaction account. You must hold a Westpac Choice transaction account to qualify and receive the benefits of the Premier Advantage Package. Read the Westpac Choice transaction account T&Cs and consider if it’s right for you. See westpac.com. au. The cashback will be paid into a Westpac Choice transaction account within 60 days of settlement. The transaction account must be linked to the home loan at the time of settlement and kept open for 60 days after settlement. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters. © Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.

20147/0920

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