Australian Broker 17.22

NOVEMBER 2020 ISSUE 17.22

JAMES SYMOND Aussie is enjoying great success despite COVID-19, boldly pursuing a multimillion-dollar growth strategy that includes recruiting hundreds more brokers /14 ALSO IN THIS ISSUE… In the news Banks are shunning Victorian SMEs’ requests for loans /10 A big deal How Shail Wadhwa solved a complex refinancing problem /20 Savvy investors look to the regions A national survey shows that investors are focusing on the growth potential offered by regional Australia /18

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Fintechs shake up the lending world Fintechs explain how their tailored approach to lending is helping small businesses /22

Brokers urged to consider outsourcing The best interests duty and easing of lending regulations ‘won’t reduce’ brokers’ heavy workload /25

In the hot seat Darin Hindmarsh helps borrowers achieve their property dreams /30

9/11/2020 12:03:08 PM

NEWS

IN THIS SECTION

Lenders ING’s retail boss to take over as new CEO /04

Industry bodies Heritage Bank joins alliance to promote regions /06

Market Victorian SMEs desperate to access fi nance /10

Aggregators Move to digital future leads to new partnership /12

Technology CoreLogic’s new partnership to help prop up tech start-ups /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 mortgage and broking world responding to the COVID-19 pandemic overseas?

Here’s your snapshot of the news that matters most in North America

INVESTOR TO BE JAILED FOR MULTIMILLION-DOLLAR SCAM a 10-year investigation, a real estate investor in the US state of Pennsylvania is headed to prison for masterminding a multi-year mortgage scam a prosecutor called “simply stunning” in its scope and duration. Dean Rossi, 55, was sentenced to five years in federal prison and four years of supervised release, and was ordered to pay US$2.85m in restitution and US$1.38m in forfeiture for devising a scam that cheated three banks, Nova Bank, First Cornerstone Bank and Leesport Bank (later VIST Financial Bank), of more than US$4.15m. Rossi was convicted on charges of conspiracy to commit mail fraud affecting a financial institution, bank fraud and loan fraud. According to the Department of Justice, Rossi and his co-conspirators ran the scam from 2006 to 2012.

AFTER

Production Editor Roslyn Meredith

ART & PRODUCTION

Global Head of Media Marketing Lisa Narroway

CORPORATE

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Production Manager Alicia Chin

Chief Operating Officer George Walmsley

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

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

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U.S. MORTGAGE FORBEARANCES TOP THREE MILLION AGAIN number of US mortgages in active forbearance (mortgage holiday) has ticked back up above three million, rising by 31,000 in the last week of October, according to new data from Black Knight. The increase was driven by limited extension and removal activity and a jump in forbearance starts. There were 50,000 forbearance removals at the end of October – the fewest of any week since the recovery began, according to Black Knight. The 89,000 extensions were the fewest in nine weeks. Some 33,000 new forbearance plans started.

“Forbearance plan starts are up 15% in October compared to the month prior, with the rise driven by borrowers reactivating previously expired plans,” Black Knight said. “New forbearance activations are down 7% from September, while reactivations are up 50%.”

THE

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CANADIANS STILL CONFIDENT ABOUT PROPERTY DURING COVID-19 consumers have maintained positive attitudes to homeownership since CANADIAN COVID-19 cases began spiking, according to a new report. Mortgage Professionals Canada’s (MPC’s) Rapidly Evolving Expectations in the Housing Industry October report, written by chief economist Will Dunning, was based on a survey of 1,000 Canadians – 701 of which were homeowners – from 25 September to 8 October. It found that 90% of homeowners are happy with their decision to purchase a home. Of the remaining 10%, only 2% reported regretting their purchase entirely, while 8% wished they had bought a different property. The percentage of people who expect to “never own a home” fell by half compared to 2019. MPC CEO Paul Taylor said there had been a lot of press about an expected fall in house prices.

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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 MONEYTECH JOINS SME GUARANTEE SCHEME

ING AUSTRALIA: THE NUMBERS

lender Moneytech has been given the green light to roll out the federal government’s SME Guarantee Scheme, enabling the group to now provide support for SMEs affected

by COVID-19. Moneytech joins the panel of lenders available for Phase 2 of the scheme, meaning it can offer small businesses loans of up to $1m until 30 June 2021.

Under the scheme, the government will guarantee 50% of new loans issued by participating lenders such as Moneytech.

NON-BANK

2.7 million

$47bn

THINKTANK CLOSES LARGEST CMBS SO FAR has successfully closed its sixth and largest commercial mortgage-backed securitisation (CMBS) transaction of $600m, bringing the total bonds issued by the non-bank to $2bn.

This follows the group’s $350m CMBS transaction in November 2019, furthering the company’s reputation as a prominent capital markets issuer in the commercial property asset class. The rated notes were placed across a total of 16 institutional investors, including both onshore (77%) and offshore (23%) accounts.

$52bn

customers

in retail mortgages

6%

in retail savings

total share of Australian MFI

85%

of mortgages distributed through brokers

THINKTANK

“As ING’s new CEO in Australia, my focus will be to drive the bank’s growth and diversification agenda”

Melanie Evans CEO, ING Australia

Commercial Loans

ING’S RETAIL BANK BOSS TO TAKE THE HELM AS NEW CEO Moving up through the ranks, the newly appointed CEO at Australia’s fifth-largest financial institution has promised to drive the bank’s growth and diversification has announced that its current head of retail bank has been promoted and will assume leadership of its Australian operations this week.

Melanie Evans will become CEO of ING Australia on 16 November. On the same date, current CEO Uday Sareen will transition into his new role as head of wholesale banking for ING Europe, Middle East and Africa.

According to ING Australia chair John Laker, Evans has made a clear impact on the group since joining it in ING

2017. Under her leadership, the organisation has become Australia’s fifth-largest financial institution, with a 6% customer market share.

“Melanie is a very experienced banker with a proven track record who will continue to drive ING’s growth and diversification agenda. Her appointment is testament to all that Melanie has achieved for the retail bank and its customers,” Laker said.

Evans began her career in financial services with a St. George Bank cadetship in 1995. From there, she joined Westpac before spending a decade at BT Financial Group in product, brand, marketing,

superannuation, platforms and investments leadership roles.

Evans returned to Westpac as a chief of staff, leading business units across mortgages, transformation and business banking.

“As ING’s new CEO in Australia, my focus will be to drive the bank’s growth and diversification agenda.

I will continue to prioritise our customers and team members,” Evans said.

“Our history as Australia’s first fintech, most recommended bank, a trusted brand and for doing things differently will remain front and centre. We’re proud of what makes us a modern bank. We exist for our customers – so they can focus on the things that matter to them.”

Laker also congratulated Sareen on what he was able to accomplish at ING Australia over the past four years.

“Uday was always ambitious in his agenda for Australia, and he delivered the results,” Laker said.

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9/11/2020 12:07:10 PM

NEWS

INDUSTRY BODIES

MORTGAGE BROKER BANNED FOR FIVE YEARS has banned a NSW mortgage broker from engaging in credit activities for five years and cancelled her company’s credit licence.

Bonnyrigg Heights-based broker Nee Tanner was the sole director and responsible manager of NT Financial Services Pty Ltd (NTFS). ASIC found Tanner was reckless in providing documents in support of home loan applications that were materially misleading; several documents she submitted to lenders to demonstrate employment or income were found to be false. Tanner and NTFS can appeal.

ASIC

MAJOR BANK TO HELP STOP HOMELESSNESS has deepened its contribution to establishing affordable housing by joining the Constellation Project as an alliance member.

NAB will support the Constellation Project’s efforts to help eradicate homelessness in Australia. Founded in 2018, the Constellation Project aims to produce “co-designed, tested and refined solutions” that help build new homes for Australians with low to moderate incomes. “Our shared vision is very simple: to end homelessness within a generation,” said David Gall, executive for corporate and institutional banking at NAB. NAB

BANK BACKS BIG PUSH TO BOOST REGIONAL MARKETS A new alliance set up to promote the benefits of living, working and investing in regional Australia has gained the support of a major financial institution largest customerowned bank, Heritage Bank, has pledged to support and promote regional markets by becoming a founding member of the Regional Activators Alliance (RAA). It joins the 36 representative organisations across the country that comprise local councils, Regional Development Australia regions, economic development groups and industry representatives.

The Regional Australia Institute (RAI) launched the RAA with the aim of advancing the opportunities to live, work and invest in regional Australia.

The federal government backs the alliance and allocated funding for AUSTRALIA’S

6

the project in the 2020 Budget.

Heritage CEO Peter Lock said the bank’s foothold in regional markets would allow it to make a significant contribution to the RAA. “One of the positives to emerge from COVID has been a surge of interest in living outside our capital cities, recognising that regional lifestyles have a lot to offer,” Lock said.

“We’re delighted to be part of this new group and to support the push to attract more people to take up the fantastic opportunities available in regional Australia.”

The RAA is a crucial step to driving activity in regional

markets, according to RAI CEO Liz Ritchie.

“Regions need people to fill jobs, grow businesses and invest in their communities. We know the COVID-19 experience has changed the notion of how we work, and this presents an incredible opportunity for us,” Ritchie said.

“We are seeing that many areas are reporting significant drops in regional rental vacancies figures, with some going below 1%. Interest in regional Australia is certainly significant at the moment.”

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said now is the right time to focus on the opportunities in regional Australia.

“I have always said regional Australia is big enough in which to get a good cup of coffee but small enough to care – and now is the time to make the move,” he said.

“We are seeing that many areas are reporting significant drops in regional rental vacancies figures, with some going below 1%.

Interest in regional Australia is certainly significant” Liz Ritchie CEO, Regional Australia Institute

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9/11/2020 12:07:39 PM

INDUSTRY UPDATE

OPENING DOORS TOGETHER a valued partner to mortgage brokers over the past 30 years, we know there’s always more we can do to make it easier for you and your customers to do business with us. The broker proposition isn’t just about products: like in many industries, service is a key driver of the lenders you recommend to your customers. Broker and customer experience is paramount, and we’ve been making more improvements based on your feedback.

Westpac is making some changes to become simpler and faster and provide better support to you and your customers. Soon you’ll hear about our new Broker Hub from your BDM. It’s been designed to make it even easier to partner with all the brands in the Westpac Group: Westpac, BankSA, Bank of Melbourne and St.George. You’ll get a snapshot of which stage each of your deals is at and be able to escalate issues and provide real-time updates to your customers faster. It’s a step towards a more dynamic way to keep track of your pipeline, and I look forward to your feedback on how we can make the tool even more helpful for you. We recently announced that we’re also bringing more overseas roles back to Australia, including broker call centre support.

Since the third-party market evolved in the mid-1990s, mortgage brokers have become increasingly critical to helping Australians buy their own homes. More than half of Australia’s households have seen their income decline in 2020, and four out of 10 mortgage holders have accessed support from their lender, highlighting the importance of professional, customer-centric brokers to facilitate the right lending solutions for Australians.

The broking industry has faced its fair share of challenges in 2020, quickly adapting to a digital environment with remote e-documents, e-sign and ID verification. Westpac is committed to supporting the industry and its 30,000 employees by providing leadership to address continuity planning, growth, managing cash flow and running a successful business. I encourage you to visit the Davidson Institute website (www.davidsoninstitute. education) to access tools and AS

Warren Shaw, Head of Broker Distribution, Westpac

webinars that are designed to help manage and grow your business, as well as support brokers and their customers.

As a proud Victorian, I’d like to acknowledge the local brokers who’ve rapidly changed their business operations to stay connected to customers. While it’s

maintained as their customers’ circumstances have changed with the evolving impacts of the restrictions on businesses and families. The outstanding service provided by our BDMs was recently acknowledged with three accolades at the 2020 AMA Awards – congratulations

“Our new Broker Hub is a step towards a more dynamic way to keep track of your pipeline” been a particularly challenging year for Melburnians, it’s pleasing to see that almost half of the customers who sought support from their lender have returned to making repayments on their loans. It’s a testament to the strong relationships brokers have

to Sam Tang, Dylan Cole and Omar Moussa on their well-deserved recognition.

There’s no doubt that this has been a year unlike any other.

While the full economic impact of COVID-19 is yet to unfold in Australia and globally, it’s worth

starting to reflect on the customer groups impacted so far. A recent Equifax report showed that COVID-19 is having a particularly negative effect on the employment of young people. More positively, we’re further assisting first home buyers to enter the market sooner as a result of our low interest rates and two LMI offers across the Westpac Group.

The challenge for all of us in the industry is to think about how we can continue to support those who need us most – the young person looking to buy their first home, the property investor looking to grow their investment portfolio, the parent who’s spent the last few months homeschooling. We all have a duty to create products, policies and services that help Australians achieve their financial goals and objectives, and we look forward to working with you to make it happen.

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9/11/2020 12:08:01 PM

NEWS

TECHNOLOGY

FINTECHS THRIVING DURING THE PANDEMIC fintechs have proven resilient during COVID-19, sustaining their revenue base, attracting more customers and planning for future expansion, according to the fifth annual EY FinTech Australia Census 2020.

EY Australia fintech adviser Meredith Angwin said fintechs had responded quickly to the crisis, with many able to capitalise on new opportunities.

“We have seen a significant increase in consumers’ use of digital payments and transactions,” she said. “The buy now pay later sector has expanded at pace.”

AUSTRALIAN

THIRST FOR KNOWLEDGE OFF THE CHARTS the volatility and uncertainty of Australia’s current lending environment, demand from mortgage and asset brokers for up-to-date information and education from lenders has “exploded”, according to Connective. This has been exhibited by attendance at the group’s digital learning and development program increasing to four times as much as last year, including for the recent Lender Splendour event. Connective executive director Mark Haron said that in his 24 years in the industry he had never seen such strong broker appetite for education.

GIVEN

“The world’s moving fast from a tech and innovation perspective, but it’s a flight to quality, and start-ups have really taken a hit through COVID” Tim Jenner Executive and head of product, CoreLogic

8

CORELOGIC INVESTS IN PROPERTY TECH START-UPS As start-ups suffer from a lack of investment during the pandemic, one major property data player has decided to get behind the sector data and analytics company CoreLogic has announced a new partnership that “hits a sweet spot” for the business at just the right time, according to CoreLogic executive and head of product Tim Jenner.

Through Taronga Ventures’ RealTechX program, CoreLogic will be backing emerging technology businesses in real estate.

Jenner provided some context around CoreLogic’s motivation to get involved.

“The world’s moving fast from a tech and innovation perspective, but it’s a flight to quality, and start-ups have really taken a hit through COVID as investments are reined in,” Jenner said.

PROPERTY

“We have an ambitious acceleration strategy and have taken the view that we need to work not only with the best companies in the world to accelerate our growth, but also support the next generation of innovators and game changers for this sector. RealTechX enables us to do both.”

CoreLogic’s partnership with RealTechX enables the group to support and actively engage in helping property tech start-ups succeed.

“CoreLogic is undoubtedly a market leader in real estate data, which we see as an essential element for the development and operation of superior assets into the future,” said Taronga Ventures

managing partner Avi Naidu.

“Our vision for this platform is to bring together market leaders across the real estate sector to advance the state of technology and innovation across Asia.”

CoreLogic will be joining real estate corporates such as Dexus, CBRE, Lendlease, ISPT Super Property and PGIM Real Estate in the RealTechX partner network. Other organisations that are part of the network include federal government departments and several universities, such as UTS and UNSW. “Our RealTechX companies are set to benefit significantly from this CoreLogic partnership due to the unique data and insights generated by their innovative technologies,” RealTechX program director Julian Kezelman said.

“We are confident that CoreLogic and our participants will identify novel opportunities for bringing together their individual capabilities and data assets for the betterment of the sector.”

www.brokernews.com.au

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9/11/2020 12:09:12 PM

NEWS

MARKET FINANCIAL SENTIMENT INCREASINGLY GLOOMY concerns about their finances and global economic conditions have “grown markedly”, according to the third annual Financial Consciousness Index. This year, 11.8 million respondents said they were concerned about macroeconomic conditions – 5.7 million more than in 2019; 60% expressed “extreme concern” about global conditions, compared to just 31% last year. Commissioned by comparethemarket.com.au and developed by Deloitte Access Economics, the index showed that 57% of Aussies believe their finances will not have improved by May 2021.

AUSTRALIANS’

BROKERS WANT MORE GOVERNMENT SUPPORT half of all mortgage brokers think the federal government could do more to support the mortgage and lending industry, according to the latest study by HashChing. While the majority of mortgage brokers seem optimistic about the government’s moves to support the economy and the housing market with the 2020 Budget, 55% said it had not done enough to support the broking and lending industry amid COVID-19.

Meanwhile, 85% think relaxed lending criteria would be good for the long-term housing market.

ABOUT

CREDIT CRISIS LEAVES VICTORIAN SMALL BUSINESSES DESPERATE SMEs in Victoria are struggling to bounce back now that lockdown restrictions have been lifted, because they can’t access the finance they need to reopen Melbourne-based lender that specialises in short-term business finance has experienced a 200% surge in loan applications as small businesses, hit by lengthy lockdowns and rejection by major lenders, struggle to stay afloat.

According to HomeSec Business Finance CEO Paul Stone, Victoria has reached a “crisis point” in terms of its businesses’ inability to borrow money.

While Australia celebrates the reopening of the state, the reality is that many businesses are not in a position to capitalise on the repealed restrictions.

“We are receiving hundreds of calls a day from business owners A

who are desperately wondering how they will get funds to restart and reopen,” Stone said.

“Business owners are telling us that while it’s great they are finally allowed to reopen, they have burnt through their savings just trying to stay afloat, and now they can’t access the funds they need from traditional sources.

“As so many industries, particularly in the hospitality and tourism sectors, have been closed for so long, they are simply unable to show recent cash flow records because there has been little or no cash flow for months.

“As a result, most business lenders won’t touch them. This has

created a credit crisis at a time when business owners need access to urgent funding more than ever.”

Businesses with cash flow problems have also reported difficulty with the federal government’s business loans. They have either been unsuccessful in obtaining a loan or the loan amount has been insufficient, Stone said.

With the short-term business finance provided by HomeSec ranging from $20,000 to $2m for “any type of legitimate business”, he said the group was well positioned to help meet the needs of businesses being shunned by the banks.

“Funding is available within 24 hours from the time of the initial application. As all loans need to be secured against real estate, this enables clients to be able to freeze repayments for up to 10 months if necessary,” Stone said.

“Business owners ... have burnt through their savings just trying to stay afloat, and now they can’t access the funds they need from traditional sources” Paul Stone CEO, HomeSec Business Finance

AUSTRALIANS’ FINANCIAL FEARS ON THE RISE IN 2020 Source: Financial Consciousness Index (comparedthemarket.com.au, Deloitte Access Economics)

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11.8 million

60%

57%

are worried about the economy – up by 5.7 million since 2019

are extremely concerned about the global economy – up from 31% in 2019

believe their finances will not have improved by May 2021

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9/11/2020 12:09:47 PM

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22/10/2020 3:59:17 PM 9/11/2020 12:10:16 PM

NEWS

A G G R E G AT O R S

AFG WELCOMES NON-BANK TO LENDER PANEL has added to its panel a specialist lender that caters to currently “fast-growing” market segments. Non-bank Better Mortgage Management provides alt-doc loans for self-employed applicants and first home buyers, enabling AFG brokers to benefit not only from additional products but also the group’s “extensive expertise” in writing such loans, the aggregator said. The Brisbane-based lender offers over 50 different loan products to brokers across eight different funding platforms.

AFG

BUDGET INCENTIVES AN OPPORTUNITY FOR BROKERS of Connective Asset Finance HEAD Brent Starrenburg has said “smart brokers” who capitalise on new opportunities offered by the federal budget and help their clients drive investment will be set for years.

The budget’s most significant incentive is the ability to write off the full value of new assets purchased, he said.

But brokers need to be across their databases. “If you really understand the tax concessions, you can see we’re looking at incentives that will play all the way out to FY22,” Starrenberg said.

“Mortgage Choice brokers will now be able to offer a completely digital home loan solution to their customers” Emma Dupont-Brown GM product and corporate communications, Mortgage Choice

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STREAMLINED DIGITAL LOAN PROCESS LEADS TO PARTNERSHIP Looking ahead to an increasingly digital future, an aggregator has added smartbank 86 400 to its panel of lenders has acted to further future-proof its lender panel with its newest partnership bringing neobank 86 400 on board.

Emma Dupont-Brown, general manager of product and corporate communications at Mortgage Choice, said the aggregator was sure to benefit from 86 400’s “compelling proposition”. “[86 400] being the first of the newly licensed digital banks with home loan and banking solutions means Mortgage Choice brokers will now be able to offer a completely digital home loan solution to their customers,” Dupont-Brown said.

“The world of banking and MORTGAGE CHOICE

home loans has changed, and fintechs like 86 400 are making a seamless home loan process more accessible. Australian consumers are savvy and expect to be able to do more online.”

Speaking to Australian Broker, Dupont-Brown said the “primary reason” Mortgage Choice had decided to partner with 86 400 was to help position its customer proposition for this increasingly digital future.

“We see this as a long-term solution to serve a wider range of customers, specifically those who are seeking a digital banking experience, such as millennials and digital natives,” she said.

“The bank has designed a highly streamlined home loan process

featuring fast turnaround times, with unconditional approval within as little as two hours.

The digital home loan process offered by 86 400 eliminates the significant amount of paperwork required to lodge a deal, which has long been a broker pain point.

“Our brokers are thrilled with this latest addition to our panel.”

86 400 home loans are available to purchasers, refinancers, owner-occupiers and investors, with fixed and variable rate options – both with redraw facilities. George Srbinovski, 86 400 national manager of broker distribution, was excited about teaming up with the “iconic Australian brand”.

“This new partnership allows us to help even more Australians take control of their money,” Srbinovski said.

“We’ve turned the traditional home loan application on its head, and we look forward to continuing to challenge the status quo.”

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FE AT URES

SPECIAL REPORT

AUSSIE ACCELERATES GROWTH PLANS While others put the brakes on spending during COVID-19, Aussie is boldly forging ahead with an aggressive multimillion-dollar growth strategy. It wants to recruit hundreds more brokers after celebrating its most successful period yet

INVESTING IN BROKERS

>140 applications from new brokers

>70 new brokers hired

>160 brokers completed Aussie induction program between April and November

60% of brokers have been at Aussie for more than 5 years

31% of brokers have been at Aussie for over 10 years

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of pulling back during COVID, Aussie CEO James Symond can proudly say the national brokerage is growing and thriving despite the pandemic.

The energetic and passionate 48-year-old caught up with Australian Broker to discuss Aussie’s exciting plans and his renewed focus on the business after being diagnosed with cancer three years ago.

Symond has spent 28 years working at the iconic Australian business since it was founded by his uncle and former Aussie chairman, John Symond, in 1992, almost 30 years ago. He says the mortgage industry has suffered some significant knocks from events of the last few years, from the royal commission to bushfires and COVID-19.

“The one thing that happens during these times that we have found is there’s always a flight to quality brands and businesses,” he says.

“Aussie always goes from third or fourth gear straight into sixth. The turbochargers are set alight and we go for it.”

Symond says that while other firms have made people redundant during the pandemic, Aussie decided to add more than 200 brokers to its network. At present, Aussie has more than 970 brokers and over 208 stores across Australia.

“Between now and Christmas we have 15 new stores opening.

We’re driving for 1,200 brokers and 300 stores nationally by 2022. A big word for us this year is ‘growth’. ” INSTEAD

The leading brokerage has invested more than $16m in marketing its brand in FY20, with half of this spend activated during COVID. Its promotions have included TV ads, bespoke commercials and digital campaigns.

“We said to our brokers we would go harder on their behalf, and the results show,” says Symond.

Aussie also launched a recruitment campaign, ‘Aussie Bloom’, about six months ago to help franchisees recruit brokers.

It offers a start-up incentive of $6,000, targeting talented staff

Aussie franchisees Vaughan Fowler (Cronulla) and Kim Horan (St Mar

Aussie has been able to recruit some high-calibre people from outside the finance industry – including from hospitality, retail and airlines – “who had been let go

“We’re driving for 1,200 brokers and 300 stores nationally by 2022. A big word for us this year is ‘growth’ ” from various skilled backgrounds and helping new brokers transition into the business.

“For the first six months we make sure there are financial training wheels on these brokers so they can feed themselves,” says Symond.

Since the campaign’s launch, Aussie has already attracted more than 140 new applications from brokers, with over 70 new recruits already on board.

“We will double that number over the next six months – that’s how well it’s going. It’s easing people into the industry with the best training and support possible.”

and just needed a nudge”.

New brokers are given options: the lower-entry-cost mobile broker model with high support; working as a broker at one of Aussie’s more than 208 retail stores; or becoming a franchisee running a scale business with a number of brokers.

“Either way, everyone benefits from our world-class training and accredited mentoring program, Signature by Aussie,” says Symond.

“We have even pivoted during COVID-19 to run these virtually, and the feedback and results have been amazing, not to mention

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In partnership with

d Kim Horan (St Marys and Wetherill Park)

incredibly convenient, particularly for our regional brokers.”

At the conclusion of the free six-month induction program, brokers are qualified for a Certificate IV in Mortgage Broking; they can they study for a full diploma over 12 months. Between April and November more than 160 brokers had been enrolled in the induction program.

So, what’s giving Aussie so much confidence about the home loan market and pushing its growth strategy? For starters, it’s the brokerage’s incredible success recently.

“October 2020 was Aussie’s best October settlement and lodgement month on record. We are on fire,” says Symond.

September also signalled Aussie’s largest-volume month on record.

“In FY21, our lead volumes were up almost 10% year-on-year in September, and we’re making an impact on our customers with our Net Promoter Score results thriving at almost 80%.”

An MFAA study showed that mortgage brokers recorded their

highest market share in over a year by facilitating 57% of all new residential homes in the April–June 2020 quarter.

Symond says there are other reasons for Aussie’s fantastic results.

“You’re taking a group of amazing people, combined with an incredibly trusted brand, combined with a strategy that is extremely robust, combined with a

not collapse due to the pandemic and the situation would not be as bad as some bankers feared.

“The average mum and dad are more driven than ever to buy their home. They don’t want to rent.

“Interest rates have never been so low. The property market is still seen, in comparison to other assets, as a safe bet. If you go and put your money in the bank, you don’t get

“October 2020 was Aussie’s best October settlement and lodgement month on record. We are on fire” business that has no debt and a very financially capable parent [CBA] who has the will. You’ve got a very fiery combination there that is very successful.

“My job is to safely and securely grow our distribution channels as hard as we can, in particular over the next couple of years.”

Six months ago, Symond predicted the property market would

any interest. If you go and put your money in the stock market, it’s like playing roulette these days.”

There has been a big adjustment to how Aussie brokers work during COVID, but Symond says the brokerage has been in a great position to meet the changing needs of consumers.

“Consumers have never had better service; everyone’s plugged

into more technology, and we’ve applied more customer tools.”

In terms of Aussie’s white label home loans, Symond is amazed at the financial resilience of customers during the pandemic.

“They had so much in reserve from a redraw point of view. A lot of those customers that chose to go off [paying their mortgages] for hardship reasons for six months – so many have started to come back earlier.”

While Aussie’s brokers have quickly adapted to the new virtual world during COVID, the firm’s commitment to its retail stores and personal contact with customers continues.

“I think doing loans online has become more significant, but I believe most loans are still done the old-fashioned face-to-face bricks and mortar way,” Symond says.

“We’re still talking about the most complicated process in an average mum and dad’s financial life – a mortgage – and that needs explanation, someone that spends time with the consumer.” www.brokernews.com.au

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Symond doesn’t see this changing in the next five to 10 years, as Aussie’s investment in its retail network is enabling brokers to build scalable businesses.

“With our reduced franchise fee and contribution to new store fit-outs, we have 17 new franchisees approved in 2020 so far, with another 18 in the pipeline – 50% of these have been internal candidates and the other 50% high-calibre external candidates.”

Existing franchisees who have renewed their franchise agreements are being rewarded through Encore, a program that provides incentives to refresh or refit their retail stores – 43 have taken part so far.

Network development managers are also being added along the eastern seaboard, targeting growth in that region.

Kim Horan is an Aussie franchisee at St. Marys and Wetherill Park. She started in 2008 as a new-to-industry broker.

She has had roles in the sales leadership team and worked with other brokers to help them build successful businesses.

“One of the reasons I love being with Aussie is the strong sense of family and their ongoing commitment to excellence, growth and being industry leaders,” Horan says.

“They have a passion for their customers and brokers that goes above and beyond, and it is always exciting to see what new and innovative concepts they will come up with next to enhance the customer experience and the broker experience.

“Aussie is a winning team and they have been a good choice to partner with as I have built my first Aussie store and then my second.”

Vaughan Fowler, who along with his wife opened the Aussie Cronulla franchise in late 2017, started with Aussie in 2006 as NSW/ACT state manager.

“The Aussie brand brings with it an enormous amount of credibility and goodwill,” Fowler says. “Matching that with a great customer experience and a strong local and community presence has enabled our business to grow quickly and successfully.

He says the transition from general manager to broker was 16

made significantly easier by having a huge network of mentors – other Aussie franchisees and brokers that he could call on for guidance and advice.

Providing training for brokers is vitally important at Aussie.

“There would not be another mortgage broker in this industry that spends the amount of money, time and effort on ongoing training, learning and development within our brokers than Aussie,” Symond says.

This commitment is reflected in

its customers; Aussie has facilitated loans for generations of families, Symond says.

“That’s the beauty of dealing with a mortgage broker and a family-style business like Aussie rather than just going to a lender or a bank.”

Aussie is boosting technology too, after Symond told his team 14 months ago that it needed significant investment.

“We decided to pour money into new systems and processes for the team members, customers and brokers,” he says.

“I think doing loans online has become more significant, but I believe most loans are still done the old-fashioned face-to-face bricks and mortar way” Aussie’s staff retention rates.

“In fact, 60% of our brokers have been with Aussie for more than five years and 31% for more than 10 years,” Symond says.

“I’ve got people who’ve been with us for 25 years. You don’t retain those sort of people, and they don’t get those sorts of results and earn a high-quality living without creating a successful, caring environment like we’ve done.”

This loyalty to Aussie as a “familystyle business” is also reflected in

This includes providing new sales tools, which are being rolled out in partnership with the world-class digital Salesforce CRM and replaces Aussie’s own proprietary system Tool Box. Other features such as compliance by design systems, comprehensive changeover checklists and digital tools like eDocs and Microsoft Teams have helped brokers adapt to the new virtual world.

“We’re spending more money on technology today than we’ve ever

spent, because we need to. I want to make sure my brokers are armed with the best tools on the planet to build a high-quality business,” Symond says.

Aussie is also prepared for the introduction of the best interests duty in January. Symond is welcoming the change and says it should be extended to lenders and banks.

“Anything that can make the process safer for the consumer, we’re behind. BID is something we are all ready for, are already doing and are very comfortable with.”

You could be forgiven for thinking Symond might have slowed down after discovering in 2017 he had multiple myeloma, a type of bone marrow cancer, but that’s not the case.

He says it was scary and tough – he had a bone marrow transfusion in June 2019, which involved being in a sealed room at St Vincent’s Hospital with no visitors for three weeks.

Symond lost his hair, dropped 50 kilos in weight and does dialysis three times a week.

“You just incorporate it into your life. I’m as focused as ever; I’m as aggressive as ever. I hopefully apply the necessary amount of strength and leadership this business still needs to ensure that I am worthy of the role that I have.

“I think the results on the board are showing exactly that. I have never been more excited about the future of this industry and what a group of great people can accomplish within it.” AB

AUSSIE: BY THE NUMBERS

September 2020 was Aussie’s largest-volume month in three years and its biggest September on record The brokerage’s lead volumes were up 9.8% year-on-year in September and its Net Promoter Score was 78.3 $16m was invested in the Aussie brand in FY20 October 2020 was Aussie’s best October settlement and lodgement month on record Settlements are up 10% year-on-year. Aussie has had positive year-on-year results in all states, with SA/NT up 26.4%

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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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NE WS ANALYSIS

INVESTORS LURED TO THE REGIONS

The COVID-19 pandemic has slowed down the property market in the capital cities, but a new survey shows that investors are increasingly shifting their focus to a land of golden opportunities: regional Australia

national obsession with real estate prices and investment properties has long been defined by the state of the markets in our two biggest cities – Sydney and Melbourne. These are the powerhouses behind a long-term property boom that has only slightly come off the boil.

But that duopoly is being challenged. Property Investment Professionals of Australia’s 2020 Annual Investor Sentiment Survey found that investors are turning to the regions as places to both invest and live in, partly driven by the game changer that is the coronavirus.

The national survey, conducted online in August and reflecting the views of about 1,100 property investors, shows that investors are still confident about the future, with 67% believing now is a good time to invest in residential property, though this has dropped from 82% in 2019.

“While there is no doubt that 2020 has been one of the toughest in living memory for everyone around the globe, property investors have remained resilient in the face of the unprecedented uncertainty we are all experiencing,” says PIPA chairman Peter Koulizos. “The property market has continued to show its resilience, with prices materially stable in most parts of the nation.”

The survey reveals that 77% of investors say concerns about potential falling house prices won’t make them put their investment plans on hold, and 44% are looking to buy a property in the next six to 12 months.

Just where investors want to purchase properties could prove a welcome and transformational change for regional Australia. The survey shows that more than 40% OUR

18

of investors intend to buy property in a different state or territory to the one they live in. The regions are set to reap the benefits of an influx of new residents, with investors saying they want migrate to regional NSW (21%), regional Queensland (18%), Brisbane

improved lifestyle (78%), working from home (46%) and housing affordability (40%). The appeal of metropolitan markets has fallen from 73% last year to 61% this year.

Koulizos says interstate investments have been growing

“We can identify 12 regional locations across Australia that are booming right now” Simon Pressley, head of research, Propertyology (16%) and regional Victoria (14%).

Queensland offers the best investment prospects, favoured by 36% of investors, followed by Victoria (27%) and NSW (21%).

The survey reveals the main reasons for moving to the regions are

in popularity in recent years as investors have become more strategically astute.

“Investors are recognising the value of working with property investment professionals to help them score the best opportunities

across the nation,” he says.

Ben Plohl is a member of PIPA and the principal buyer’s agent at Sydney-based BFP Property Buyers. He advises homebuyers and investors who are buying property all over Australia.

He says interest in the regional property markets was growing even before the COVID-19 pandemic hit.

“Sydney and Melbourne have always dominated the media headlines from a property perspective. Even pre-COVID the regions definitely gained momentum in terms of people wanting to escape the city and relocate from a homebuying perspective,” Plohl says.

“But also from an investor’s perspective, I’ve always been bullish on the regional markets. I think since COVID, that’s been more prevalent.

“Obviously we are very select about where we buy in regional Australia,

MOST POPULAR AREAS FOR INVESTORS LOOKING TO RELOCATE Source: Property Investment Professionals of Australia’s 2020 Annual Investor Sentiment Survey

18% Regional Queensland

AUSTRALIA 16% Brisbane

14% Regional Victoria

21% Regional NSW

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From left: Simon Pressley, head of research, Propertyology; Simon Kersten, managing director, Colliers International Wollongong; Ben Plohl, principal buyer’s agent, BFP Property Buyers; Peter Koulizos, chairman, Property Investment Professionals of Australia

but there are some gems out there.”

Plohl says regional Victoria and NSW are definitely standout areas for his clients. He highlights Bendigo, Mildura, Albury-Wodonga, Orange and the Central Coast.

Greater affordability and better yields and lifestyle are major attractions of regional cities, as well as job opportunities, population growth and robust economies.

Plohl say there’s also the principle of supply and demand: “The regions I am looking at have land-locked areas or locations that have very little developable land, and there’s a real desirability with these places which is driving up demand.”

Working from home is also playing a big part in the regional trend.

“People are looking at themselves and saying, ‘Do I need to live in the centre of Sydney? I don’t need to commute to the office any more’.

I’ve got clients wanting to go to the Central Coast – a much cheaper alternative with lifestyle amenities, beaches, fresh air.”

Plohl gives an example: following a client’s purchase of a Central Coast property, it was put up for lease and within 12 hours there were 12 clients wanting to lease it sight unseen.

“I’ve studied property cycles and economics for many years … what we’re going through and what was announced in the federal budget is just another tick in the box for what happens when property markets are about to enter a significant uptrend,” Plohl says.

Queensland-based buyer’s agent and property analyst Simon Pressley, head of research at Propertyology, says that for the first time in 20 years Australia is experiencing a truly national property boom.

Pressley has identified 12 booming regional areas: Orange, Launceston, Burnie, Coffs Harbour, Noosa (“the hottest market in Australia right now”), Mildura, Bendigo, Karratha, Moranbah, Emerald, Whyalla and Mount Gambier.

“Never have we have had such a widespread boom since the Howard/Costello years from 2001 to 2003. We are at double-digit price growth pace right now,” he says.

Pressley believes the regional property boom would have happened without COVID-19.

“People wanting to work from home and get out of the big cities has been an extra driver.”

Pressley says that while COVID has “put the pause button” on the property market, the effect has been minimal given the all-time low interest rates and the fact that “85%

“We’ve definitely seen an increase in those looking to leave Sydney and head our way,” Kersten says.

“It appears the South Coast is having an even stronger influx.”

Due to COVID-19, many people don’t need to commute, and this has accelerated interest in buying property in Wollongong, he says.

“The population of Wollongong CBD has doubled in the last five years, and there’s enough apartments coming to see that trend continue.”

Fear of living in a big city during COVID is also a big factor, Kersten says.

Demographer Bernard Salt has coined a new name for the group of people driven by this fear, dubbing them VESPAS, or Virus Escapees Seeking Provincial Australia.

Salt says it’s no longer just

“We’ve definitely seen an increase in those looking to leave Sydney and head our way” Simon Kersten, managing director, Colliers International Wollongong of the population” have not been adversely affected by the pandemic.

He says the “doomsday scenario” of a plunging property market did not occur because property is an essential commodity and its scarcity has put upward pressure on prices.

Colliers International Wollongong managing director Simon Kersten, whose company focuses on project developments and apartments, says there is strong demand from owneroccupiers and first home buyers looking to relocate to the Illawarra.

retirees; it’s younger people too – drawn to the regions by their safety and security, housing affordability, access to the NBN, and even the drought-busting rain that’s bringing the parched countryside back to life.

To capitalise on the trend, Kersten says businesses need to offer flexible working arrangements, such as office space for their regional employees.

Wollongong City Council is currently lobbying state and federal government departments to relocate to Wollongong. AB

WHY ARE INVESTORS CONSIDERING REGIONAL LOCATIONS DURING COVID-19?

78% Improved lifestyle factors

46% Working from home in the future so I can live anywhere

40% Housing affordability

28% Don’t want to live in a crowded city any more

16% Money is not the most important thing to me any more

12% I want to live somewhere with fewer COVID cases

Source: Property Investment Professionals of Australia’s 2020 Annual Investor Sentiment Survey

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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 A casual conversation led to a challenging but high-value deal for Your Finance Adviser’s senior lending specialist, Shail Wadhwa.

He overcame many problems to successfully complete a complex refinance involving eight properties THE FACTS

Client Two brothers, aged 50 and 52

Loan size $4.5m

Goal To refinance at the best rate and with the lowest possible repayments

Location NSW and Queensland

20

Aggregator outsource financial

Brother A was a casual employee who had only started her job four months prior, and we needed her income to help service the loan.

Additionally, the wife of Brother B was self-employed, and her current income for financial year 2018/19 was a lot higher than it was in financial year 2017/18 as she had picked up some new contracts.

We wanted a lender that would accept her higher 2018/19 income rather than taking the average.

Both brothers had credit cards and car loans, which made servicing very tight.

THE SCENARIO

I called an old acquaintance to say hello, and out of this conversation came a mega deal with a refinancing opportunity involving $4.5m in loans. However, every opportunity comes with a challenge, and this one had more than a few.

The clients were two brothers who owned eight properties altogether.

Brother A owned 100% of the title of one owner-occupied property and two investment properties. Brother B owned 100% of the title of one investment property. The other four properties were jointly held by Brothers A and B with 50/50 title ownership.

Brother A wanted to refinance his owner-occupied property and two investment properties and take 100% ownership of one of the four jointly held properties and then refinance.

Brother B wanted to refinance his investment property and take 100% ownership of another of the four jointly held properties and then refinance.

Both brothers wanted to refinance the remaining two jointly held properties.

The overall objectives were to simplify the loan structure, achieve positive servicing, refinance at the best rates, minimise repayments and cashout.

The biggest challenge these clients were facing was to service their loans (held in their individual names or jointly) with their individual incomes.

For serviceability, we had to find a lender that would take the brothers’ share of the liability based on title ownership, as long as the other party to the loan was paying their share of the debt.

There were other issues. The wife of

Lender Commonwealth Bank

debt by providing six months of loan statements. The other party also had to sign a statutory declaration.

In terms of casual employees, we spoke to quite a few lenders that would accept income after just four months’ employment. CBA also has a policy of accepting casual income after four months. This made servicing for Brother A quite comfortable.

For the self-employed income of Brother B’s wife, we were looking for a lender that would accept current financial year returns so we could use her higher income from 2018/19.

Again, CBA and ANZ were both willing to accept this. However, we chose CBA as they ticked all the other boxes.

To make servicing work for the clients, we had to reduce their credit card limits, and Brother B had to pay off his car loan.

To resolve the LVR issue we had to cross-collateralise one of the properties with another that had higher equity, in order to bring the overall LVR to under 80%.

THE TAKEAWAYS

This was a very complex deal. After speaking to many banks, we realised that each had one or two issues. Not many banks do common debt reducers. We had to find a lender that would take the actual

Just by refinancing and restructuring their loans, the clients will save over $10,000 in interest every year LVR also posed some problems. One of the properties was worth $620,000 and had a mortgage of $550,000, meaning an LVR of 88.70%. Due to the high-risk rating/restriction, we had to make it an 80% LVR. THE SOLUTION

Shail Wadhwa Senior lending specialist, Your Finance Adviser

We spoke to a few lenders regarding common debts. We found that Commonwealth Bank and St. George had a common debt reducer policy, which meant it would take the actual share of debt as long as we could prove that the other party was paying their loan on time.

The CBA product, Alternate Servicing with Related Party, required that we prove the other party was paying their share of

debt shared between two applicants.

We mapped out all the problems and devised a list of all the lenders and ticked or crossed which problem each one solved.

We found that CBA ticked all the boxes and we were able to refinance all the clients’ loans with them, which aggregated to a total loan amount of over $4.5m.

Just by refinancing and restructuring their loans, the clients will save over $10,000 in interest every year.

We have very satisfied customers as they had previously struggled to find the right broker who understood the complex structure and could find an amicable solution. We have been referred to their friends and family and made them clients for life. AB

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BUSINESS VIE W

FINTECHS FREE UP FINANCE FOR SMES In the world of finance, knowledge is power. Fintech lenders such as OnDeck and Moula are leading the way in their use of data and digital tools to provide SMEs with faster access to capital

SMES: THE NUMBERS

1/4 of SMEs seeking finance have been rejected by a bank

90% of SMEs have been affected

by COVID-19

65% of SME customers pay invoices late

Almost 3x more brokers are writing commercial loans than in 2015

57% of SMEs say access to cash flow would support business recovery

50% of SMEs turn to a broker to access finance Source: OnDeck; Moula

22

to OnDeck surveys of SMEs that have applied for finance from any possible source, 24% have been rejected by a bank.

Small business owners often have an uneven cash flow and must deal with all the financial uncertainty and complexity that goes with running an SME. They need fast decisions and a more agile, digital approach.

So, what do they do if the traditional banks won’t help them?

This is where fintech lenders such as OnDeck and Moula come in.

They specialise in using technology to quickly assess each SME’s unique circumstances and then provide tailored financial solutions.

OnDeck CEO Cameron Poolman says that even for those SMEs that do get the green light for a business loan, the drawn-out process banks use means that a quarter will experience the negative impacts of a protracted funding process.

The company is entirely based in Australia, with BDMs serving SMEs and brokers nationwide, ensuring clients can speak to a real person.

Poolman says fintechs make intelligent use of data to assess the credit risk a business poses.

“By using real-time data from bank statements, credit bureaus and credit scores, fintechs take a forward-facing view of the business, rather than the rear-vision view that the banks rely on,” Poolman says.

“And that makes good sense as no business is likely to face exactly the same market conditions in the future as it has in the past.”

He says the traditional, paperworkheavy approach of mainstream banks is outdated in a digital world.

ACCORDING

“Not only can data provide valuable insights into an SME’s creditworthiness; it also allows for a vastly quicker and more efficient loan application and approval process.

We can have funds to a small business in as little as one working day.”

Moula head of sales Tas Tzimos says a few years ago waiting six to eight weeks for a loan outcome “was the norm across the board”.

“But by challenging mainstream lending and turning deals around

credit and seize opportunity.”

The Melbourne-based lender was founded in 2013 to give business owners across the country access to finance that they need to grow.

Moula also relies on digital tools to help it stand out from other lenders.

“We have a proprietary platform which we’ve developed in-house and tailored to the Australian SME market,” Tzimos says.

“Our decisioning engine uses artificial intelligence and is always improving, which means we can give our brokers fast outcomes and confidence in credit decisioning.

“The platform is at the core of Moula’s business model, and having our own tech means we can keep refining and improving the process to maintain our competitive edge.”

Poolman says OnDeck’s core goal has always been to deliver rapid funding to small businesses. This has been achieved by using both innovative technology and insights gained during the fintech’s 12-year lending history.

OnDeck’s loan application process features a one-page form and requires a maximum of six months of bank statements.

“From here, our proprietary

“By using real-time data from bank statements, credit bureaus and credit scores, fintechs take a forward-facing view of the business, rather than the rear-vision view the banks rely on” Cameron Poolman, CEO, OnDeck within hours or days, we’ve managed to shift customer and broker expectations,” he says.

“Our fastest loan processing time from start to finish is 14 minutes.

For the more complex, larger deals, we can sometimes take a few days, but it’s still much, much faster than the service levels offered by banks.”

Tzimos says traditional lenders are still taking a long time to catch up with fintechs.

“Through COVID we know those service levels have been dropping even lower. Awareness of lending solutions has changed, and now both brokers and SMEs know they have better options to access

credit-scoring methodology – OnDeck Score® – uses thousands of data points to identify the financial health of potential borrowers based on cash flow, credit history and various business attributes,” Poolman says.

“This allows us to quickly provide appropriate finance offers to customers that are within their repayment capacity.”

OnDeck also successfully pushed for the adoption of the SMART Box loan comparison tool in Australia, which uses plain English to explain pricing metrics for small business loans.

“The transparency offered by SMART Box is revolutionising

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Cameron Poolman, CEO, OnDeck

the ability of SMEs to determine the ROI on assets funded through finance and make informed decisions,” Poolman says.

Despite its tech-driven methods, he says OnDeck is “focused on people, our products and trust”.

“We may operate in the online space using the best of technology, but that’s backed by a highly skilled team of people who connect with our brokers and small business customers to deliver a personal touch.

“We’re about clear and fair finance with no surprises, so you won’t see any hidden fees or charges in our small print. Plus, we don’t offer cheaper rates to direct customers, so brokers can be confident that they’re offering the most competitive deal to their SME clients.”

Being upfront with clients is a key focus at Moula.

“What sets us apart is our transparency,” Tzimos says. “Our core offering for brokers is speed and ease, but for us it’s not just about getting fast outcomes. We’re a values-driven business, which means we’re very much committed to responsible lending and transparency.

“We don’t have any hidden fees.

We also back good business to enable growth, which means we have no penalty or scheduled interest if a borrower wants to repay early.”

After creating a world-class platform for unsecured business lending, Moula realised there was a need to help SMEs get paid faster when they sold to other businesses.

A survey of SMEs revealed that 65% of their customers paid invoices late.

Tas Tzimos, head of sales, Moula

In response, the fintech developed and launched Moula Pay, a finance solution for business-to-business transactions, a year ago.

When a business offers Moula Pay on their invoices, they get paid upfront. Their customers get 12 months to pay, with the first three months interest and repayment free.

“As the late payments problem has worsened in recent months, the product has grown far beyond expectation. As with our business loan product, we also offer a commission for brokers who refer their customers to become merchants,” Tzimos says.

Both Moula and OnDeck have

which won’t be there any more in six to eight weeks. We offer credit decisions within 24 hours, and usually it’s much faster than that,” he says.

“SMEs have been adapting their business models and pivoting quickly in a time of uncertainty, and we’ve been there to fund that opportunity in real time.”

OnDeck is supporting clients and brokers through its online COVID Recovery Hub, which keeps SMEs and brokers up to date with government support and provides case studies of SMEs and how they have adapted to the crisis. Poolman says its surveys confirm that close

“Our decisioning engine uses artificial intelligence and is always improving, which means we can give our brokers fast outcomes and confidence in credit decisioning” Tas Tzimos, head of sales, Moula adapted quickly to the challenges of COVID-19.

Tzimos says that with banks and traditional lenders experiencing a drop in service levels during the pandemic, speed has become an even more important factor in Moula’s offering.

“Many businesses are seeking finance to seize an opportunity

to 90% of Australia’s SMEs have been affected by COVID-19, though not always negatively.

“Importantly, many have used the pandemic as an opportunity to explore new markets, closely examine costs and perhaps make better use of technology in their business operations.”

OnDeck experienced a 50% jump

in loan applications between September and October, which translates to valuable opportunities for brokers.

Both companies are confident about the future of fintechs and the growth of the SME market.

Tzimos says commercial lending is a fast-growing opportunity for brokers and a way to diversify.

This is backed up by recent research showing that the number of mortgage brokers also writing commercial loans nearly tripled between 2015 and 2020.

During the six months to March 2020, the total value of commercial loans settled by mortgage brokers reached its highest level ever at nearly $9.7bn, up by close to 8% compared to the previous six months.

“SME growth is closely connected to the ability to access business finance, and we see brokers as playing a pivotal role in helping SMEs grow,” Tzimos says.

Poolman says research shows that 57% of SMEs believe access to cash flow would support business recovery, and this is underpinning growth in commercial finance.

OnDeck’s research also reveals that 50% of SMEs turn to a broker to access finance, and the lender is keen to help brokers capitalise on this valuable market.

“Right now, business owners cannot afford to take their eye off the ball, and handing over the finance process to a broker allows SME owners to focus on guiding their enterprise through the recovery process,” Poolman says. AB www.brokernews.com.au

22-23_AB1722_Fintech_Feature_SUBBED.indd 23

23

9/11/2020 12:20:49 PM

PEOPLE

Do you have a question for our broker mentors?

Email your question to:

antony.field@keymedia.com

BROKER ON BROKER

Experity Capital was named NextGen.Net New Brokerage of the Year at the 2020 Australian Mortgage Awards. Director Daniel Dusevic shares his thoughts on building strategic partnerships, embracing new technology and helping clients in financial distress during the pandemic

The latest MFAA data shows that brokers settled a record $98.71bn in residential home loans in the six months to March 2020, but the number of brokers was down for the third consecutive period. What are the keys to survival and success for brokers in the years ahead?

It’s important to focus on A building a model to support ongoing growth by providing clients with a broad range of financial solutions and adapting to evolving customer needs. Experity Capital did this by focusing on partnerships.

This involved the merger of three successful broking businesses to scale, collaborate and play to our strengths. We created our own commercial private fund and partnered with a national property advisory and management business.

We are also investing in a digitalfirst customer experience. This is all underpinned by continually refined processes and a strong team culture which allows us to deliver on the broad needs of our clients.

Q

The coronavirus pandemic has caused financial stress for many people.

How do you deal with clients in financial difficulty?

When loan deferrals were A announced we immediately took steps to reach out to all our clients. It’s through these personal interactions that we identified which clients were in financial difficulty or potentially at risk.

We helped educate those in need

Q

on the options available, guided them through the solution and continued to check in with them regularly. We leveraged off our network to help our business clients connect so they could explore opportunities to work together.

We introduced our trades clients to various property manager partners to access new sources of work.

COVID-19 has forced many firms to adopt technology and rethink communication.

What new tech should brokers embrace, and is it still worth meeting clients face-to-face?

Broking traditionally relied on A face-to-face contact. COVID-19 meant a quick shift to all things virtual, and clients’ expectations of a complete digital experience have been fast-tracked. Brokers need to not only be quick to embrace new tech but also to seek out new tech solutions which uniquely enhance their value proposition. I believe there is a role for face-to-face meetings with clients at the start of a relationship and where there is more complexity or a need to build or nurture a relationship.

Face-to-face meetings now need to have real purpose.

Q

Some in the finance industry think responsible lending law changes will have little impact. What are your views on the new laws?

A Responsible lending has been with us for some time, and before it was legislated over a

Q

Daniel Dusevic, director, Experity Capital

“We helped educate those in need on the options available, guided them through the solution and continued to check in with them regularly” decade ago it was implied.

The interpretation by regulators and implementation by lenders and brokers of responsible lending regulations have caused unnecessary challenges to the industry and

customers alike. The fallout from the royal commission and now COVID-19 may see governments, regulators and industry finally take a common-sense approach to responsible lending. 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.

24

www.brokernews.com.au

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9/11/2020 12:22:04 PM

FE AT URES

OPINION

A HELPING HAND FOR BROKERS Alan Hemmings, CEO of specialist online mortgage broking firm Home Loan Experts, says the introduction of BID and the relaxation of responsible lending laws won’t reduce work for brokers, so they need to seriously consider outsourcing

you go back to before the GFC, a broker would take a paper application form when they visited a customer, collect a couple of payslips and just fax it all to the bank – that was the amount of paperwork a typical broker did. A broker’s role was more about connecting with the customer, understanding what they wanted and finding them the right solution.

The home loan application process was effectively entirely managed by the banks.

What’s happened over time is that more and more work has been pushed onto the broker, so now we’re doing a full assessment before we submit to a bank.

The proposed relaxing of responsible lending obligations is not going to reduce work for brokers. They will still have to do a full serviceability assessment, check living expenses and document everything in between. The banks hopefully won’t have to go into such a deep dive when they get an application, but the broker certainly will.

With the increased compliance and documentation requirements necessitated by the best interests duty, the successful brokers will be those who focus on being brokers. They will make sure that most of their time is spent talking to prospective customers, while letting someone else manage the administration, marketing and compliance work.

You don’t want to be a broker sitting there with a black pen crossing off (redacting) tax file numbers!

At homeloanexperts.com.au that’s exactly what we’re trying to do with our brokers: let them go back to being brokers who are talking to customers, understanding their needs and recommending the right product. All the administrative work is completed in the background.

It’s worth pointing out that BID only applies to mortgage brokers and not

banks. We have 40-plus lenders on our panel, which allows us to go over what the customer wants to do and recommend a suitable product from hundreds of products, whereas the bank effectively has one policy and a couple of products that it can recommend.

This will differentiate us significantly more from the banks as customers will know that when they’re dealing with a broker, we’re acting in their best interest.

The proposed reform to responsible lending rules, which aims to shift from a ‘lender beware’ back to a ‘borrower

IF

more efficient decisions on credit.

However, much of it will depend on how lenders implement any changes.

It is quite clear that brokers will need more support than ever going forward.

Trying to generate new leads, keeping on top of constantly changing lending policies, processing new loans and retaining existing customers while running an office is simply not feasible for most high-performing brokers.

It used to be that a sole broker could settle up to $15m a year all by themselves.

Now, I’m pulling back on that figure, and

You don’t want to be a broker sitting there with a black pen crossing off (redacting) tax file numbers!

Alan Hemmings CEO, Home Loan Experts

responsibility’ principle, will likely only have a minimal effect on how brokers assess loans. The level of information that the banks request from a customer may not be as in-depth or audit-like as before. Part of it is also about the customer acknowledging that some of the responsibility is theirs.

The biggest issue has always been that banks will look at a customer’s current discretionary spending and say they can’t afford the loan. But we know that when customers get a home loan, they change their lifestyle to reflect the level of debt they have.

With the proposed changes, the banks may get a bit more lenient with serviceability. Customers who were declined in the past may get approval for a loan, or for a larger loan amount, because the banks may be more flexible around what the customer is actually spending.

This change has the potential to cut down on red tape, allowing for faster and

I think these days they can probably only handle up to $10m a year by themselves.

If they’re looking to do between $10m and $20m, they could probably do it with a part-time assistant. Any more than $20m and they’ll probably need a full-time assistant.

My recommendation would be to use outsourcing services mainly because the right full-service outsourcing service will enable top brokers and companies to reach the next level both in terms of revenue and lifestyle.

Our outsourcing model of plug and play makes it really easy for brokers.

Basically, they don’t have to worry about HR issues, training or upskilling. They can go back to being brokers and talking to customers.

Admin work is never going to stop for a broker. Brokers need to consider at what point they’re going to bring in staff or support. Should they go down the outsourcing route? And if so, which outsourcing model? AB www.brokernews.com.au

25_AB1722_Opinion_SUBBED.indd 25

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9/11/2020 12:22:55 PM

DATA

QUEENSLAND

WA SPOTLIGHT

Brisbane is set to become an investment hotspot as demand for land swells Increased demand for land is evident across markets in Brisbane. This strong interest helps support land prices, particularly in the city’s growth corridors where properties sell in a matter of weeks, said David Notley, director at Herron Todd White.

“As to whether this state of affairs will continue into the medium and long term is entirely dependent on an extension to the builder’s grant, interest-rate fluctuations and also availability of stock,” he said. “If these variables remain sound, then demand will remain strong.”

Notley said a big contributor that continued to lift sentiment in Brisbane was the strong interstate migration to Queensland prior to COVID-19.

Low interest rates have also been a significant factor.

“People are being very cautious with their money in the shadow of COVID. Brisbane provides buyers with the chance to own a new home within easy reach of a major CBD at substantially less than it would cost in Sydney or Melbourne,” Notley said.

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%

TASMANIA

Tas has started to see housing market activity return to pre-COVID levels According to the Real Estate Institute of Tasmania (REIT), the state appears to be on track to hit its ninth consecutive record year of overall sales value, which is expected to top $4.1bn. Over the September quarter, both house and unit segments reported growth in sales, up by 32% and 39.1%, respectively. Land sales also posted a significant gain of 70.1%.

The state has seen a 48.4% boost in sales to first home buyers. However, one segment that weakened during the quarter was interstate buyers. They comprised less than 10% of all sales during this period, 70.7% below pre-COVID-19 activity levels in this segment. REIT CEO Mark Berry said mainland buyers typically comprised 20% to 23% of total sales. Instead, local buyers have driven local market activity in 2020, accounting for more than 90% of transactions.

“The lack of properties for sale has seen unprecedented pressure placed on prices, which continue to rise,” he added.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

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%

26

REGIONAL VALUES ON THE RISE Regional centres in WA have been reporting strong gains in property prices, while rental listings have dropped of WA’s nine regional centres posted an increase in the median property price during the three months to September, with Karratha reporting the biggest increase of 8.1% to $465,000, according to the Real Estate Institute of Western Australia (REIWA).

“Karratha also saw a 61% increase in sales activity. The significant increase we are seeing in some of the mining regional centres is partly due to the commitments mining companies have made to keep workers in Western Australia since COVID-19 restrictions were introduced,” said Damian Collins, president of REIWA. Geraldton followed Karratha in terms of quarterly growth in the median price, which increased 3.4% to $275,000.

Kalgoorlie-Boulder and Port Hedland also registered respective gains of 3.3% to $285,000 and 2.2% to $230,000.

EIGHT

Most regional centres were also able to clock higher sales activity during the quarter.

Broome recorded the highest gain of 63%, followed by Geraldton (50%), Esperance (39%), Busselton (13%) and Bunbury (2%).

The increase in median prices in these regional centres came alongside a drop in rental listings during the quarter. In fact, two regional centres – Busselton and Esperance – reported less than 15 rental properties by the end of the September quarter.

All nine regional centres recorded a reduction compared to the June 2020 quarter. Bunbury and Geraldton saw the highest decrease in rentals listed, reporting a 53% drop, according to REIWA. “With the changing WA economy and the population growth we are seeing, we will see continued upward pressure on sales and rental values in our regional centres in the coming months,” Collins said.

PERTH HOUSING MARKET INDICATORS — OCTOBER 2020 Source: CoreLogic

Houses

$475,199

-0.1%

4.3%

4.3%

Median value

Annual growth

Total return

Gross yield

Units

$355,971

-0.5%

4.4%

5.3%

Median value

Annual growth

Total return

Gross yield

SUBURB TO WATCH: BROOME Median price (houses) $430,000

Median price (units) $189,000

12-month growth 1%

12-month growth -25%

3-year growth Average annual growth 11%

Gross rental yield

1.8%

6%

Average annual growth Weekly advertised rent

Gross rental yield

-0.4%

$385

11%

www.brokernews.com.au

26-29_AB1722_Housing_Market_Data_SUBBED.indd 26

9/11/2020 12:40:52 PM

AUSTRALIAN CAPITAL TERRITORY

Despite a slump in property confidence, there is optimism about price growth According to the latest ANZ and Property Council survey, the ACT’s confidence level dropped to 81 points in the December quarter – significantly below last year’s 144 points. In fact, more than half of survey respondents are not expecting conditions to improve in the next three months.

Adina Cirson, Property Council executive director for the ACT, said the uncertainties arising from COVID-19 would continue to dampen overall property sentiment. He said it was concerning that the outlook for some factors, including the forward work schedule, construction pipeline and staffing levels, remained negative despite the ACT recording no new cases of COVID-19. Still, housing growth expectations turned positive after two consecutive quarters in negative territory.

“Expectations were buoyed by the positive impact that the sector is seeing through rollout of the HomeBuilder grant, with nearly 80% of developers operating in the residential sector believing that it is positively impacting their businesses,” Cirson said.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$718,750

1.8%

5.3%

$570

4.2%

Metro (U)

$445,000

1.1%

4.7%

$475

5.6%

VICTORIA

New listings in Melbourne have soared since onsite inspections recommenced

HIGHEST-YIELD SUBURBS IN WESTERN AUSTRALIA Suburb

House

Gross rental yield

Median price

Quarterly growth

12-month growth

Average annual growth

MERREDIN

H

17%

$90,250

0%

-33.0%

-6.0%

COOLGARDIE

H

17%

$87,500

N.A.

43.4%

12.0%

TOM PRICE

H

15%

$320,000

6.7%

17.4%

15.2%

RANGEWAY

H

15%

$65,500

-13.0%

-27.0%

-10.1%

PORT HEDLAND

U

14%

$160,000

-24.5%

-28.9%

-1.4%

CABLE BEACH

U

14%

$150,000

0%

-31%

-8.0%

KAMBALDA WEST

H

12%

$102,250

-1.2%

-14.1%

-3.6%

SOUTH BOULDER

H

12%

$135,000

17.0%

-18.0%

2.9%

NEWMAN

H

11%

$222,500

-1.1%

17.1%

-6.0%

MARGARET RIVER

H

10%

$467,750

6.0%

6.0%

1.0%

The number of new listings in Melbourne jumped by around 330% in the four weeks to 18 October, increasing to 6,974 from 1,606 properties listed in the previous four weeks.

“The result is likely due to months of pent-up decisions to sell from vendors and reflects how the real estate transaction process has remained tied to physical inspections,” said Eliza Owen, head of research at CoreLogic.

While the swell in numbers seems positive, suggesting a rise in confidence, Owen acknowledged that the significant uptick in new stock could be due to COVID-19’s impact. “Forced selling was a possibility from the pandemic, as significant job losses across Victoria may have limited the ability of some households to keep paying their mortgage,” she said.

Still, a large increase in stock could also be a sign of a market rebound as sellers catch up with the rising demand. “High buyer demand can also mitigate risk for distressed sales, because the added demand pushes up prices,” Owen said.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

5.4%

$420

3.0%

Metro (H)

$720,000

1.1%

Metro (U)

$580,000

1.0%

7.9%

$420

3.7%

Country (H)

$395,000

1.8%

6.0%

$350

4.7%

Country (U)

$308,500

1.3%

8.6%

$285

4.8%

www.brokernews.com.au

26-29_AB1722_Housing_Market_Data_SUBBED.indd 27

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9/11/2020 12:41:11 PM

DATA

NORTHERN TERRITORY

The NT remains one of the safest places in the country to invest during COVID-19 Demand in the four most popular property hotspots in the NT is driven by price points, with three sitting in Darwin and one in Alice Springs, according to Herron Todd White.

Zuccolli, which is east of Palmerston, is one of the go-to destinations for buyers. House and land packages in this location have price tags of $400,000 to $600,000. Northcrest in central Darwin and Muirhead are also popular with buyers.

The price point in these two regions ranges from $600,000 to $850,000. In Alice Springs, Kilgariff is the main destination for buyers. Located on the southern side of the city between the airport and town, Kilgariff has a price range of $500,000 to $700,000.

Will Johnson, director for the NT at HTW, said the territory government offers some of the most lucrative support packages for would-be buyers. “The positive activity in the existing market and government incentives on house and land packages will drive our market right up to Christmas,” he said.

Median

Quar-

12-month

Weekly

Gross

price

terly

growth

median

rental

rent

yield

growth Metro (H)

$468,750

0.0%

-4.1%

$450

5.0%

Metro (U)

$269,450

-3.8%

-9.1%

$350

6.4%

Country (H)

$400,000

-1.3%

-1.9%

$480

6.1%

Country (U)

$341,500

3.8%

2.0%

$370

6.2%

SOUTH AUSTRALIA

The combined capital city preliminary auction clearance rate in the last week of October was 77%, the highest since the week ending 1 March (77.1%). There were 1,757 homes taken to auction, up from 1,427 over the previous week. A preliminary clearance rate of 76.2% was recorded the previous week, revising down to 66.9% at final figures. This time last year, 68% of reported auctions were successful.

Melbourne hosted 604 auctions, increasing from 490 in the previous week and 255 last year. Of the 530 results collected, 75.8% were successful, above the previous week’s preliminary clearance rate of 72.6%. In Sydney, 864 homes went to auction, up from 700 in the previous week and 843 last year. The preliminary clearance rate held firm at 79.6%, while the previous week’s rate was 80.4%, revising down to 70.4% at final figures. During the same period in 2019, 74.6% of auctions were successful.

Total auctions

95

Cleared

44

Uncleared

13

Clearance rate

77.2%

PERTH Total auctions

15

Cleared

5

Uncleared

4

Clearance rate

35.5%

Houses

Units

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Sydney Melbourne Brisbane

Adelaide

Hobart

Darwin

$475,000

$728,500

$540,000

$421,000

$550,600

$371,500

$475,000

Perth

$315,000

$0

$360,000

$100,000

$476,888

$200,000

$390,000

$300,000

$504,000

$500,000 $400,000

$580,000

$700,000 $600,000

$680,000

$800,000

$647,750

$900,000

According to the latest ANZ and Property Council survey, South Australians are the most optimistic when it comes to the future impacts of the COVID-19 outbreak on property, with more than half of respondents expecting things to improve in the next quarter.

“It’s going to take some time to return to pre-COVID confidence levels, but the current trajectory gives reason for cautious optimism,” said Daniel Gannon, executive director for SA at the Property Council.

Gannon said the state government needed to do its part to ensure that the property market and business owners continue to thrive despite the impacts of the outbreak.

“Over the past quarter, we’ve learned a lot about business innovation and organisational nimbleness. Here in South Australia we are comparatively safe, healthy and resilient, we’re getting back to business and reopening our economy as confidence continues north,” he said.

Canberra

CAPITAL CITY HOME VALUE CHANGES Capital city

Weekly change

Monthly change

Year-to-date change

12-month change

Sydney

0.1%

0.2%

1.6%

6.0%

Melbourne

0.1%

-0.1%

-2.9%

0.7%

Brisbane

0.2%

0.5%

1.9%

3.4%

Adelaide

0.1%

1.1%

3.4%

4.4%

0.1%

0.6%

-0.3%

0.1%

0.1%

0.2%

0.3%

3.6%

Metro (H)

$473,000

0.8%

2.2%

$380

4.2%

Metro (U)

$335,000

-1.2%

-2.9%

$330

5.1%

Perth

Country (H)

$268,000

0.0%

1.9%

$270

5.1%

Combined 5 capitals

Country (U)

$219,000

0.7%

1.0%

$210

5.2%

28

ADELAIDE

MEDIAN HOUSE AND UNIT PRICES

South Australians’ property confidence levels are the highest in the country

Area

WEEK ENDING 1 NOVEMBER 2020

$821,500

Area

CAPITAL CITY AUCTION CLEARANCE RATES

*The monthly change is the change over the past 28 days

www.brokernews.com.au

26-29_AB1722_Housing_Market_Data_SUBBED.indd 28

9/11/2020 12:41:38 PM

BRISBANE CANBERRA Total auctions

85

Cleared

58

Uncleared

13

Clearance rate

Total auctions

93

Cleared

41

Uncleared

27

Clearance rate

60.3%

81.7%

SYDNEY Total auctions

864

Cleared

555

Uncleared

142

Clearance rate

79.6%

TASMANIA

MELBOURNE Total auctions

604

Total auctions

Cleared

402

Cleared

0

Uncleared

128

Uncleared

1

Clearance rate

n.a.

Clearance rate

69.0%

NEW SOUTH WALES

Area

n.a.

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

NSW investor activity has been in decline since its peak in late 2014 Eliza Owen, head of residential research at CoreLogic, said investor participation over the decade averaged 41.9% across NSW, achieving a peak in 2014 when investors comprised 55.6% of mortgage demand. However, investor activity has since been in decline. In fact, investors’ share of overall mortgage demand in August 2020 fell to 27.4%.

Owen said NSW housing market fundamentals could explain this drop. CoreLogic data shows that dwelling values in the state are 3.5% below the record high of July 2017. Gross rental yields were 3.23% in September, two basis points off the record low in October 2017.

“Across the state, returns to investors vary greatly by submarket,” she said.

Owen said the closure of international borders had created a significant shock to the Sydney rental market, much to the advantage of regional markets. “Ultimately, the biggest boost to investor returns, and an uptick in investor activity, will be dependent on international travel resuming to Australia,” she said.

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%

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

NICK YOUNG: TRAIL BOOK SALE EXPERT Sell your book. Keep your clients.

Release working capital or start succession planning.

03 8508 6666 | 0417 392 132 | nyoung@trailhomes.com.au | trailhomes.com.au www.brokernews.com.au

26-29_AB1722_Housing_Market_Data_SUBBED.indd 29

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9/11/2020 12:41:58 PM

PEOPLE

IN THE HOT SEAT

Intellichoice Finance founder and CEO Darin Hindmarsh specialises in ownerbuilder loans at his Brisbane brokerage.

With a background in construction, he has built his knowledge of property and finance to help people realise their dreams

What was your first job before the finance industry?

I was assisting with the management of a small family A construction business, and from that I learned about licensing, compliance and finance – all needed to help ensure cash flow. I learned how to better manage people and manage clients’ needs. That experience taught me how to go beyond just plain customer service to deliver what clients expect and exceed those expectations as often as possible – skills that are essential in my work in the brokering field.

Q

What was your first job in the finance industry?

I worked for Wizard Home Loans as I saw that equity and A property underpinned the creation of wealth for most people in Australia. It began when I got a recommendation from a well-respected guy in the real estate industry. I consulted him on which career I should pursue – property or finance. He recommended a career in finance and later financial planning, since I have a background in studies at the Melbourne Stock Exchange.

This has allowed me to spend more time with my family, as to be very successful in property would be a seven-days-a-week commitment.

Q

What has surprised you most during your career in finance?

What surprises me the most is how people, whether they have A the capabilities or not, utilise finance and home loans Darin Hindmarsh, founder and CEO, Intellichoice Finance correctly to create wealth by learning the property market and understanding their place in it, as opposed to just relying on their hunch or someone who just ‘got lucky’ in the property market. Some of much money as they can get, but once they’ve got it they realise that they those people who have applied proven methodologies have gone on to make haven’t factored in future life events and now they can’t afford their loan. a great deal of money. You don’t have to be a university degree holder and Some want to blame the bank/lender and broker for deception as super intelligent; you just have to do your homework and buy smart, then a means of avoiding their responsibilities for meeting borrowing you can end up after 10 to 20 years with a lot of money, equity and lifestyle. commitments. There are definitely cases where unforeseen events occur, such as the current pandemic or bushfires, but these are irregular occurrences. The responsibility for borrowing should rest equally with If you could change anything about the broking industry, what Q would it be? the borrower and the broker. It is our responsibility to give them money appropriately, but it is also their responsibility to understand the debt That buyers should take more responsibility for their decisions, instead A of putting them back onto their brokers. This is because people want as they are getting into and to think deeply about this commitment. AB

Q

30

www.brokernews.com.au

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9/11/2020 12:37:59 PM

Backing Australia’s small businesses There’s no question that 2020 has been a tough year for Australian small business.

As your clients restart operations, they’ll need their brokers’ support more than ever.

You can give them the boost they need when you partner with OnDeck.

Our short-term loans provide fast, hassle-free finance from $10,000 to $250,000 with no hidden surprises. We make it easy, so you and your clients can focus on what’s important - opening Australia back up again.

To come onboard: Visit ondeck.com.au/broker Email broker@ondeck.com.au Call 1800 831 294

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9/11/2020 12:39:00 PM

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9/11/2020 12:50:58 PM