Australian Broker 18.16

AUGUST 2021 ISSUE 18.16

Better Choice transforms to non-bank After a $500m investment, Better Choice pivots to non-bank lending /08

AMA excellence awardees revealed Finalists for the 2021 Australian Mortgage Awards announced /12

v

Meet the 5-Star Franchise Brokerages Australian Broker unveils its 5-Star Award winners in the franchise category /17

ALSO IN THIS ISSUE…

BRENDAN O’DONNELL Brokers are joining Liberty Network Services in greater numbers, attracted by its strong support structure, diverse products and innovative technology /14

00_AB1816_Cover_SUBBED.indd 1

Big deal AAA Group’s Ollie Lum helps client break up bullet loan with 22 securities /23 Sector appointments The latest finance professionals moving to new positions across the industry /24 Hot seat Award-winning real estate agent Sunil Kumar set up his own brokerage /30

16/08/2021 12:10:27 pm

NEWS

IN THIS SECTION

Lenders Rate Money celebrates reaching $1bn loan settlements milestone /04

Aggregators Mitchell, Boer move to new positions at REA Group /06

Market Better Choice pivots from mortgage management to non-bank lending /08

Industry groups MFAA supports brokers on open banking, turnaround times /10

www.brokernews.com.au AUGUST 2021

GLOBAL WATCH What’s happening in the mortgage, broking and banking world in the United States and Canada? Here’s your snapshot of the news that matters most in North America

EDITORIAL

SALES & MARKETING

Editor Antony Field

Publisher/Sales Manager Simon Kerslake

News Editor Mike Wood

CORPORATE

Production Editor Roslyn Meredith

Chief Executive Officer Mike Shipley

ART & PRODUCTION

Chief Operating Officer George Walmsley

Designer Cess Rodriguez Production Manager Alicia Chin

U.S. PROPERTY APPRAISERS HAMPERED BY HEAVY WORKLOAD have hit back at accusations that appraisals are costly and taking too long, Mortgage Professional America reports. Brokers have expressed concerns over the cost and time involved in getting property appraisals, complaining that it’s taking three weeks for the simplest transactions and up to two months for more complex operations. They claim appraisal costs have rocketed from US$750 to more than $2,000, and that appraisal management companies (AMCs) are adding costly red tape.

Appraisers say they are struggling to cope due to a heavy workload. Appraiser Mike Lay, from Appraisal House USA, said, “This isn’t an AMC problem, it’s a supply and demand problem. We’ve had massive loan volume over the past 18 months, but roughly the same [number] of appraisers to handle it.”

APPRAISERS

Traffic Coordinator Kristine Jamir

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

EDITORIAL ENQUIRIES

Mike Wood +61 2 8437 4792 mike.wood@keymedia.com

SUBSCRIPTION ENQUIRIES

tel: +61 2 8311 5831; fax: +61 2 9439 4599 subscriptions@keymedia.com.au

ADVERTISING ENQUIRIES

Simon Kerslake +61 2 8437 4786 simon.kerslake@keymedia.com.au

HOMEBUYERS SUFFER AS U.S. CONSTRUCTION PRICES SURGE the ever-increasing challenges caused by soaring material costs and low supply, US housing affordability is now at its lowest level in nearly a decade. During the second quarter of 2021, 56.6% of new and existing homes sold were affordable for families earning a median income of US$79,900. This is down from 63.1% of homes sold in the previous quarter and is the lowest affordability level since 2012, says the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index. “Runaway construction cost growth, such as ongoing elevated prices for oriented strand board that has skyrocketed by nearly 500% since January 2020, continues to put upward pressure on home prices,” said NAHB chairman Chuck Fowke. The national median has skyrocketed to a record $350,000 – the largest quarterly price hike recorded by the index.

GIVEN

Australian Broker is part of an international family of B2B publications and websites for the mortgage industry MORTGAGE PROFESSIONAL AUSTRALIA claire.tan@keymedia.com +61 2 8437 4772

NZ ADVISER

alex.rumble@keymedia.com T +61 2 8437 4708

CANADIAN MORTGAGE PROFESSIONAL john.mackenzie@keymedia.com T +1 416 644 8740

STEADY PRICE GROWTH WEIGHS ON YOUNGER CANADIANS

MORTGAGEBROKERNEWS.CA

housing having shaped up to be a top investment choice for millennials, an WITH estimated 35% of Canadians aged 30–39 hold a mortgage, according to a new survey by Borrowell. “Rising house prices continue to be a hot-button topic in Canada, especially for millennials (25- to 40-year-olds) who are aspiring to buy homes,” Borrowell said in its latest report, noting that the average sales value is about C$734,500.

Calgary and Edmonton are the markets with the highest rate of homeownership, with approximately 39% of older millennials holding mortgages. Current average home prices are at $458,300 and $398,229, respectively. On the other end of the spectrum, the inflamed markets of Vancouver and Toronto have the lowest mortgage-holding rate, at 24% of older millennials.

corey.bahadur@keymedia.com T +1 416 644 8740

MORTGAGE PROFESSIONAL AMERICA katie.wolpa@keymedia.com T +1 720 316 7423

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 well known within the industry as “The broker’s magazine of choice”.

FLEXIBLE & LOW RATE COMMERCIAL FINANCE $100k to $5M loan amount

All property type & location accepted

7 products to suit all scenarios

No upfront fees

No income/financials proof required

Commission up to 5%

Terms and Conditions apply

Contact our friendly Lending Managers

2

General Enquiries

E: Tim@MaxironCapital.com.au

E: Leo@MaxironCapital.com.au

M: Loans@Maxironcapital.com.au

M: 0451 377 441

M: 0450 407 923

W: www.MaxironCapital.com.au

www.brokernews.com.au

02-12_AB1816_News_SUBBED.indd 2

16/08/2021 9:34:34 am

You’ll love our low-doc loans Searching for a loan you’ll love?

Look no further with Liberty’s free-thinking low-doc home loan solutions.

To learn how our low-doc options could be the perfect match for your next deal, let your Liberty BDM play matchmaker.

Set a date to find home loan love today.

13 11 33

liberty.com.au/broker

Approved applicants only. Lending criteria apply. Fees and charges are payable. Liberty Financial Pty Ltd ACN 077 248 983 and Secure Funding Pty Ltd ABN 25 081 982 872 Australian Credit Licence 388133, together trading as Liberty Financial.

02-12_AB1816_News_SUBBED.indd 3

16/08/2021 9:34:53 am

NEWS

LENDERS NAB MOULA LAUNCHES JOINS PANEL ISLAMIC AT FINANCE AGGREGATOR PRODUCT FASTFOR SMES has announced an Australian market first in the form of a bespoke Islamic finance product for its SME customers. The bank worked with Amanie Advisors, which specialises in helping companies be Sharia compliant, to create the offering for Australian Muslims. It is a unique form of finance that avoids charging interest, which is forbidden for observant Muslims. “We’re really proud to be able to offer such a valuable service,” said Imran Lum, NAB’s director of Islamic finance.

NAB

GREATER BANK, NEWCASTLE PERMANENT TO MERGE and Greater Bank have signed a memorandum of understanding to merge and form what they describe as a “regional powerhouse”. The two banks will remain as standalone brands, with joint assets of $20bn and over 600,000 customers. “This proposed merger ... will create a large, forwardthinking financial institution that sustains the core principles of customer-owned banking,” said Jeff Eather, chair of Newcastle Permanent.

NEWCASTLE PERMANENT

“Brokers are an incredibly important part of our business. They see the uniqueness of our products and buy in to the energy, knowledge and attitude of our people” Ryan Gair CEO, Rate Money

Ryan Gair, CEO, Rate Money

RATE MONEY CELEBRATES REACHING $1BN IN LOAN SETTLEMENTS Focusing on the self-employed market, specialist lender Rate Money has experienced rapid loan growth since it began operations 18 months ago – largely thanks to brokers has passed the symbolic $1bn mark for settled loans. The specialist lender, which deals predominantly in lending to self-employed Australians, was delighted to announce the milestone after just 18 months of operation.

“Achievement in my eyes is an understatement,” said CEO Ryan Gair. “It’s more than an achievement, it’s record-breaking.

I don’t know too many mortgage managers from a stand-up start that can say they have settled $1bn in loans, let alone a book value of over a billion dollars RATE MONEY

within their first 18 months.

“This shows how instrumental our branch network is, in understanding not just our customer and our referral network but how well-oiled the organisation is that we can run so smoothly as a unit, to follow one goal and one dream, and that is to become the best self-employed lender in Australia.”

The broker channel has been vital to the success of Rate Money.

“Brokers are an incredibly important part of our business,” said Gair. “They see the uniqueness of our products and buy in to the

energy, knowledge and attitude of our people.

“We are self-employed, like they are, and are focused on achieving positive outcomes and delivering the best results possible for our introducers and their customers.

“Mortgage management was seen to be old, boring; nothing was innovative about it. It’s been the same old brands, badging the same old products and the same wholesale funders, nothing new.

“We took a collaborative approach with our funders and helped tweak existing products, building new ones to meet gaps and growing needs and challenges faced by self-employed customers.

“We are always trying new and different things to give a cutting edge and uniqueness to our product offering – not just with products [but] our marketing and our view on how to grow businesses.”

Greg O’Neill President and CEO, La Trobe Financial

4

www.brokernews.com.au

02-12_AB1816_News_SUBBED.indd 4

16/08/2021 9:35:08 am

02-12_AB1816_News_SUBBED.indd 5

16/08/2021 9:35:15 am

NEWS

A G G R E G AT O R S NEW PLATFORM HELPS MONEYQUEST KEEP CLIENTS has unveiled its new broker platform for customer retention, which uses technology and analytics to manage customer relations over the life of a loan. MoneyQuest managing director Michael Russell said a project team was set up in 2017 to find a way to provide customers with personalised communications regarding their customer journeys. “For our brokers, it’s all about being able to trust that MoneyQuest is taking care of client communications on their behalf in an efficient and effective way.”

MONEYQUEST

AFG OFFERS BROKERS MENTAL HEALTH PROGRAM has launched its Broker Assistance Program (BAP) to support the mental health of brokers.

For years the aggregator has provided staff with free access to a national network of professional mental health specialists. Now BAP will offer the same service to all AFG brokers across Australia in collaboration with Mind&Matter Australia. AFG has also created a confidential 1800 number for AFG brokers to access the service.

“I’m very pleased that we can offer this kind of assistance to our brokers, ” CEO David Bailey said.

AFG

“My focus is to integrate both Mortgage Choice and Smartline by bringing together the best aspects of both businesses”

Susan Mitchell CEO broker, REA Group

Commercial Loans

Sam Boer, general manager partnerships and product development – financial services, REA Group

Susan Mitchell, CEO broker, REA Group

MITCHELL, BOER MOVE TO NEW POSITIONS AT REA GROUP REA Group has appointed Susan Mitchell and Sam Boer to new roles following the acquisition of broker aggregator and franchise network Mortgage Choice real estate giant REA Group has made a key call following its acquisition of Mortgage Choice and Smartline Personal Mortgage Advisers, announcing that Susan Mitchell, who was CEO at Mortgage Choice, will become REA Group CEO broker.

Sam Boer, who was CEO at Smartline, takes up a new position as REA Group’s general manager partnerships and product development – financial services.

Mitchell and Boer will report directly to REA Group’s chief financial officer and CEO financial services, Janelle Hopkins.

GLOBAL

“Leveraging REA’s strong digital foundations and our extensive Mortgage Choice and Smartline broker footprint, we have an excellent opportunity to outpace the competition and create the leading broking business and financial services marketplace,” said Hopkins.

“The leadership appointments will support the continued delivery of market-leading solutions and services that provide superior value to our franchisee network, brokers, clients and business partners.

“REA is delighted to have both Susan and Sam in key broker roles, working closely with our broader financial services leadership team.

We look forward to sharing key milestones, such as the brand for our

combined broking business, in the months ahead.”

Mitchell had been at the helm of Mortgage Choice for more than three years and held the position of chief financial officer at the broker franchise network for nine years before that.

“I’m excited to be leading the combined broking business at REA Group and acknowledge the role Sam has played in leading the Smartline network to where it is today,” said Mitchell.

“My focus is to integrate both Mortgage Choice and Smartline by bringing together the best aspects of both businesses, and to carry forward their great momentum.”

Boer was CEO at Smartline for three years.

“I’m thrilled to be taking on the challenge of this new role and to assist Susan in the transition to the combined business,” said Boer.

“My focus will be driving value for franchisees through new partnerships as we build stronger, bigger broker businesses.”

1st mortgage, 2nd mortgage and caveat loans

All states and territories, including regional & rural areas

$10,000 – $2,000,000

Real estate security required

1 month – 60 month Terms

Broker commissions paid at settlement

Very Competitive Rates

Accessible Staff

Rapid Approval

1300 554 616

6

|

admin@kingsleyfinance.com.au

|

www.kingsleyfinance.com.au

www.brokernews.com.au

02-12_AB1816_News_SUBBED.indd 6

16/08/2021 9:35:40 am

ANZ & BROKERS

WORKING BETTER TOGETHER FOR YOUR PROFESSIONAL CUSTOMERS

Our LMI premium is currently waived, with no minimum income requirements, for eligible professional customers. For example, a medical practitioner who has an LVR of up to 95%* could save up to $36,000 based on an $800,000 home loan.

Eligible Customers Include: Medical Practitioners, Specialists, Dental Practitioners, Optometrists, Chiropractors, Physiotherapists, Veterinarians, Lawyers, Accountants. The amount your customer could actually save depends on their circumstances, such as their profession, their loan amount and where their property is located.

ANZ Brokers * This LVR is for medical practitioners, specialists and dental practitioners who are existing ANZ lending customers (that have held an ANZ lending product for at least 6 months) with an owner occupier loan making principal and interest repayments. For other eligible customers, the LVR is up to 90%. Different LVRs may apply to other lending options, such as investment lending. Terms, conditions, fees, charges, and credit approvals and eligibility criteria apply to ANZ home loans. Please visit anz.com.au/promo/broker for the offer terms and conditions, including how to verify customers’ qualification/registration. © Australia and New Zealand Banking Group Limited (ANZ) 2020. ABN 11 005 357 522. Australian credit licence number 234527. Item No. 97528C 08.2021 WX248035

02-12_AB1816_News_SUBBED.indd 7

16/08/2021 9:35:50 am

NEWS

MARKET CONSUMER CREDIT GROWTH BOUNCES BACK STRONGLY the first time in three years, consumer credit demand has moved out of negative territory.

Equifax’s Quarterly Consumer Credit Demand Index shows demand recovered sharply in the June quarter (+29.1%), with applications for credit cards, buy now pay later, personal loans, auto loans and mortgages (new loans and refinancing) all showing double-digit growth. “The demand for home loans now far exceeds what it was in the same period pre-pandemic,” said Equifax general manager advisory and solutions Kevin James.

FOR

AUSSIES WANT BANKS TO TRACK FINANCIAL HEALTH of Australians think it’s up to banks to monitor their clients’ financial health, according to new research from Experian. Its report shows how Aussies feel about responsible lending, with 50% saying that banks should monitor their clients, but 80% did not know whether their bank provided such as service. “Where brokers come in is at the point of application,” said Experian’s Mat Demetriou.

“Once they get that loan, we want to assess that customers are meeting obligations over time.”

HALF

“We’ve got a good shopfront for our brokers, and we’re holding the pen. We’re able to decision those loans and control our outcomes”

Allan Savins Executive director, Better Choice Home Loans

Allan Savins, executive director, Better Choice

$500M INVESTMENT TRANSFORMS BETTER CHOICE INTO NON-BANK A half-billion-dollar injection of funds from Goldman Sachs is helping mortgage manager Better Choice to radically change its business model and give brokers more options is to pivot its business from mortgage management to non-bank lending on the back of a huge $500m investment by global finance giant Goldman Sachs.

The residential mortgage facility will mean brokers are given access to unprecedented volumes at Better Choice and the chance to access a much wider range of products than were previously available.

It is the second major increase in funding that Better Choice has received in recent months. Back in May, it announced a $250m warehousing deal with BETTER CHOICE

Bendigo and Adelaide Bank.

“It’s the step change that we’ve been looking for,” said Better Choice executive director Allan Savins.

“It continues the trajectory that we’ve been working on.

“We’ve been talking to the market for some time now and wanting to change our business model from a mortgage management model to a non-bank lending model and control our destiny and outcomes.

This is just one of those strategies coming to play.

“Off the back of the $250m warehouse program that was provided by Bendigo and Adelaide Bank in May, this continues that trajectory. It gives us a really wide shopfront of solutions: prime

right through to near prime and specialist borrowers.

“We’ve got a good shopfront for our brokers, and importantly, we’re holding the pen. We’re able to decision those loans and control our outcomes.

“That’s really exciting for us, and in what we’ve managed to construct in terms of product design and range, the Goldman Sachs program, we’ve got something compelling that will gravitate with brokers.”

The potential for huge growth in volume from the broker channel is now in place.

“For solutions is the key. Let the broker maximise their own leads.

Rather than potentially turning a client away because they can’t find a solution, this gives them that wider shopfront where they can find that solution.

“Incrementally, it gives them the opportunity to grow their own revenues, while writing more customers and building customers for life,” said Savins.

SHARP GROWTH IN BUSINESS CREDIT DEMAND — YEAR TO JUNE 2021 Source: Equifax Quarterly Business Credit Demand Index, June 2021

14.4%

growth in overall business credit applications

8

15.4%

increase in business loan applications

19.4%

growth in trade credit applications

9.8%

increase in asset finance applications

www.brokernews.com.au

02-12_AB1816_News_SUBBED.indd 8

16/08/2021 12:36:54 pm

02-12_AB1816_News_SUBBED.indd 9

16/08/2021 12:37:04 pm

NEWS

INDUSTRY BODIES LOAN DEFERRALS ON OFFER DURING LATEST LOCKDOWNS released by the Australian Banking Association shows that more than 20,000 bank customers have received hardship assistance during recent lockdowns, including just over 15,000 repayment deferrals on home and business loans since 8 July. “Lockdowns continue to bite across several states, and banks are again stepping up to help,” ABA CEO Anna Bligh said. “Support is available to all small businesses and home loan customers significantly impacted by current lockdowns or recovering from recent lockdowns, irrespective of geography or industry.”

DATA

TECH INVESTMENT LEADS TO GROWTH — CPA REPORT technology used by businesses is a major determinant of their success, according to peak accounting body CPA Australia. Its Business Technology Report 2021 surveyed 725 professionals in Australia, mainland China, Hong Kong, Macau, Malaysia and Singapore. “High-growth businesses spend more time and resources on technology ... Our survey results suggest other businesses may improve their growth prospects by investing in the technologies used by high-growth businesses,” said CPA Australia senior manager business policy Gavan Ord. THE

“Until now, all the [CDR] rules did not suit our industry and had significant data security requirements that would be too onerous to meet” Mike Felton CEO, MFAA

Mike Felton, CEO, MFAA

MFAA LOBBIES FOR BROKERS ON OPEN BANKING, TURNAROUND TIMES The MFAA says it’s making progress in its battle on behalf of brokers by actively pushing for greater rights under the CDR and improved turnaround times from the banks CEO Mike Felton has released a video explaining how the association is going in to bat for brokers on open banking and the Consumer Data Right.

In the video, Felton detailed the MFAA’s lobbying of government on behalf of brokers.

“Open banking is the first implementation of CDR, and it’s all about customers using their data to access and benefit from it,” said Felton. “It formalises the data that you have been getting to date, and it’s really important that our industry is included so that we don’t have a competitive disadvantage going forward.

“Until now, all the rules that MFAA

had been put out did not suit our industry and had significant data security requirements that would be too onerous to meet. This is an area in which the MFAA has been exceptionally active for over three years, and we’ve put in more than 10 submissions to various parties, including ACCC and Treasury.”

Brokers are likely to now be classified as a specialist group who can work with clients under the new regulations.

“On 30 April, Treasury made their intent clear to change the rules to accommodate consumers’ trusted advisers, particularly mortgage brokers, and on 1 July, they published the latest rules that

go some way to implementing that.

We don’t think it’s perfect yet, but we look forward to working with Treasury to get it right.”

Felton said turnaround times had been the most challenging issue for brokers this year, and that the MFAA had been working actively on this, meeting with brokers, aggregators, lenders, regulators and the government.

After “elevating the dialogue” and showing the standing committee on economics evidence that major banks’ median turnaround times for brokers were 23 days, rather than 12 days as stated by the banks, Felton said progress was being made.

“I really am pleased to say that we’re starting to see green shoots and improvement, and in fact some lenders have been improving consistently over a number of weeks and others are now joining in that … we are on the right track.”

HARDSHIP AND DEFERRED LOANS APPROVED BY AUSSIE BANKS, 8 JULY—1 AUGUST Loan deferrals, hardship assistance approved by the majors and Bendigo and Adelaide Bank

Hardship approvals Australian Capital Territory New South Wales Northern Territory

Deferred business loans

Deferred home loans

121

3

51

14,993

483

10,452

99

0

30

360

3

157

Queensland

1,728

22

501

South Australia

1,005

16

620

OTH

Tasmania Victoria Western Australia Total

10

Sources: ANZ, CBA, Westpac, NAB, Bendigo and Adelaide Bank

175

6

47

4,479

76

2,580

852

6

245

23,812

615

14,683

www.brokernews.com.au

02-12_AB1816_News_SUBBED.indd 10

16/08/2021 12:37:49 pm

Our highly advanced broker support system Brain feature Works with you to problem solve issues with loan applications.

Eye feature Actually looks over every single application. No auto-declines.

Mouth feature Provides true value with knowledge to strengthen business.

Heart feature Understands when you need something, you need it fast.

Stomach feature Enjoys a drink at the end of the day.

Would you like one?

Left thumb feature Answers your phone calls

Right index finger feature Points you to our online Broker Portal to save you time.

Speak to a MyState Broker Relationship Manager today

u e.com.a t a t s y m . brokers

02-12_AB1816_News_SUBBED.indd 11

My

ank L State B

(MySta

imited

te B ank

9 0 67 ) AB N 8

729 19 5

The h

ay to uman w

40 8 9 6 AFS L 2

.

bank

16/08/2021 12:38:09 pm

AUSTR ALIAN MORTG AGE AWARDS

John Kolenda – Finsure, finalist, Aggregator of the Year (> 500 brokers)

REVEALING THE AMA EXCELLENCE AWARDEES

Celebrating its 20th anniversary, the Australian Mortgage Awards 2021 will reveal the mortgage finance industry’s best of the best in October. But first we announce this year’s finalists, or excellence awardees, in the running for the awards excited are you for the Australian Mortgage Awards 2021? After the year we’ve all had, we need something to look forward to – and the biggest night on the Australian mortgage industry’s calendar, brought to you in association with event sponsor Westpac, seems like the perfect way to unwind and leave those troubles behind.

HOW

Melissa Christy – 86 400, finalist, Bank of the Year

Karen Bashford, South Coast Business and Financial Solutions – finalist, Broker of the Year – Regional

Cory Bannister – La Trobe Financial, finalist, Non-Bank of the Year

Louisa Sanghera – Zippy Financial, finalist, Broker of the Year – Independent

12

BROKER AWARDS LA TROBE FINANCIAL BROKER OF THE YEAR — COMMERCIAL • Adrian Lee, Catalyst Debt Capital • Barry Thatcher, Thatcher Finance • Daniel Green, Green Finance Group • Ian Robinson, Robinson Sewell Partners • John Encina, Experity Capital • Josh Egan, Astute Melbourne City South and Gippsland • Kevin Wheatley, Bayside Commercial Mortgages • Melissa Ashcroft, AAA Mortgages FBAA BROKER OF THE YEAR — INDEPENDENT • Abdulrasool (Russell) Munfaredi, Mortgage Pros • Anthony O’Flynn, IFA Mortgages and Finance • Chris Hill, Smartmove Professional Mortgage Advisors • Damien Roylance, Entourage • Jordan Beh, Insight Finance • Karen Bashford, South Coast Business and Financial Solutions • Kris Menon, KM Finance • Louisa Sanghera, Zippy Financial • Mark Davis, The Australian Lending & Investment Centre • Stephen McClatchie, Loans Australia Pty Ltd PEPPER MONEY BROKER OF THE YEAR — SPECIALIST LENDING • Ditte Westbury, Viking Mortgages Pty Ltd • Jodie Wolfenden, Loan Market Gold Coast • Mark Davis, The Australian Lending & Investment Centre

Now, in anticipation of the event, scheduled for The Star Sydney on 15 October, Australian Broker and Mortgage Professional Australia are proud to present the excellence awardees (finalists) in the line-up for this year’s Australian Mortgage Awards.

For more information on the AMAs, go to: australianmortgageawards.com.au.

• Marwan Rahme, Kanebridge Capital • Matthew Punter, The Savings Centre • Mhairi MacLeod, Astute Ability Group • Thomas Morison, Smartmove Professional Mortgage Advisors • Will Hamer, Loan Market South Yarra EQUITY-ONE BROKER OF THE YEAR — PRODUCTIVITY • Ben Walker, BW Finance Solutions • Daniel O’Brien, PFS • Daniel Pym, Loan Market Double Bay • Jacob Decru, Loan Market – One Network Broking • James Chee, Ding Financial • Jenish Manandhar, Home Loan Experts • Josh Bartlett, Mortgage Advice Bureau • Michael (Xin) Jin, Mxj Finance Pty Ltd • Prakash Rai, Home Loan Experts • Xijing (Vivian) Wu, Ayers Financial Group BROKER OF THE YEAR — REGIONAL • Fiona Erquiaga, Smooth Sailing Finance Consulting Pty Ltd • George Mihalopoulos, Connected Finance • Heath Williams, Loan Market Newcastle • Jason Cuerel, Mortgage Innovations • John Contarino, Mobile Finance Broker • Karen Bashford, South Coast Business and Financial Solutions

• Mhairi McLeod, Astute Ability Group • Paddy O’Sullivan, Mortgage Choice Nowra MFAA YOUNG GUN OF THE YEAR (FRANCHISE) • Alyssa Russo, Loan Market Mermaid Beach Qld • Luke Whitbread, Mortgage Choice Erina NSW • Ryan Pappas, Mortgage Choice Sydney NSW ADELAIDE BANK YOUNG GUN OF THE YEAR — INDEPENDENT • Andrew Hadjidemetri, Australian Financial & Mortgage Solutions • Elodie Blamey, Clover Financial Solutions • Lalit Parmar, Smart Loans & Conveyancing • Luke Oxenham, Empower Wealth Mortgage Advisory • Manish Devnani, Deals Mortgage • Matt Spears, Evoke Capital • Pallavi Laroia, Excel Mortgages • Steven Korner, Glass Financial Group BROKERAGE AWARDS RESIMAC BROKERAGE OF THE YEAR — DIVERSIFICATION • Ayers Financial Group • Bayside Commercial Mortgages • Birdie Wealth • Empower Wealth • Experity Capital • Loans Australia • Momentum Wealth • Money Merchants • Successful Ways

www.brokernews.com.au

12-13_AB1816__AMA Finalists_SUBBED.indd 12

16/08/2021 2:46:06 pm

EVENT PARTNER

AWARD SPONSORS BROKERAGE OF THE YEAR (1—5 STAFF) • Exceller8 Financial • IFA Mortgages and Finance • Loan Market Double Bay • Mortgage Choice Elsternwick • Numero Uno Finance • PFS Financial Services • Stoneturn Pty Ltd • Thatcher Finance • Zippy Financial BROKERAGE OF THE YEAR (6—20 STAFF) • 1st Street Financial • Ayers Financial Group • Hejaz Financial Services • Mortgage Advice Bureau Melbourne • Mortgage Choice – Northern Beaches and Hornsby • Mortgage Choice Melbourne • Mortgage Pros • XIN Mortgage Pty Ltd CBA BROKERAGE OF THE YEAR (>20 STAFF) • Astute Melbourne City South and Gippsland • Empower Wealth • Home Loan Experts • Loan Market – One Network Broking • Redrock Group • Shore Financial • Simplicity Loans and Advisory • Smartmove Professional Mortgage Advisors • The Australian Lending & Investment Centre BROKERAGE OF THE YEAR — REGIONAL • Astute Gippsland • Aussie Launceston • Carol King, Loan Market Buderim • Loan Market Geelong • Punters Savings Centre Group • South Coast Business and Financial Solutions • Sphere Finance • Wealthfolio Financial Services NEXTGEN.NET NEW BROKERAGE OF THE YEAR • Crew Financial • Ding Financial • Everlend • Excel Mortgages • FirstPath Financial Group • MoneyQuest Burwood • Ortus Financial Pty Ltd BOQ BROKER BEST CUSTOMER SERVICE FROM AN INDIVIDUAL OFFICE • Entourage • Loans Australia • MoneyQuest Penrith and Blue Mountains • Mortgage Choice Ormeau • No Fuss Home Loans • Premier Financial Advocates • Shore Financial • Smartmove Professional Mortgage Advisors • XIN Mortgage Pty Ltd • Zippy Financial MOST EFFECTIVE DIGITAL STRATEGY — BROKERAGE • Birdie Wealth • Carol King, Loan Market Buderim • Ding Financial • Entourage

• Link Advance • Mortgage Choice Ormeau • Shore Financial • Zippy Financial INDUSTRY AWARDS BEST INDUSTRY MARKETING CAMPAIGN • 86 400 • AFG • Bankwest • La Trobe Financial • Liberty Financial • Mortgage Choice • Pepper Money • Suncorp BEST INDUSTRY SERVICE • Affordable Staff • Broker Essentials • iLOAD Loans • NextGen.Net • Nodifi • Sherlok • Social Broker • Wikibroker AGGREGATOR AWARDS PRIME CAPITAL AGGREGATOR OF THE YEAR (UP TO 500 BROKERS) • Centrepoint Alliance Lending • Liberty Network Services • MoneyQuest • Purple Circle Financial Services ONDECK AGGREGATOR OF THE YEAR (OVER 500 BROKERS) • Astute Financial Management • Aussie Home Loans • Finsure • Loan Market • Mortgage Choice • outsource Financial • Specialist Finance Group BDM AWARDS BANKWEST BEST AGGREGATOR BDM • Angela D’Angelo, Choice Aggregation • Greg Cooke, PLAN Australia • Hannah Carter, SFG • Heather Gallagher, outsource Financial • Kavish Kamal, Connective • Mark Lewis, FAST – Finance & Systems Technology • Noushig Megerditchian, Finsure • Patrick Clarkson, FAST • Patrick Moore, Loan Market • Tracey Najjar, Centrepoint Alliance Lending

• Nicholas Ganis, Macquarie Bank • Omar Moussa, St. George • Rick Cavanagh, Suncorp • Tes Anderson, Bankwest MORTGAGE CHOICE BEST NON-BANK BDM • Belinda Gray, Bluestone • Christopher Rayner, Firstmac • Glen Gillespie, Better Mortgage Management • Joel Harrison, Thinktank • Linette Laverdure, Moula • Lydia Li, Prime Capital • Matthew Hall, Liberty • Michelle Rose, La Trobe Financial • Samantha Kyriakidis, Pepper Money • Stacey Madejewski, La Trobe Financial

BROKER

LENDER AWARDS MSA NATIONAL BANK OF THE YEAR 86 400 Bankwest ING Bank Macquarie MyState Bank St. George Banking Group Westpac NON-BANK OF THE YEAR • Better Choice Home Loans • Firstmac Limited • Heartland Reverse Mortgages • La Trobe Financial • Liberty • Pepper Money • Prime Capital • Resimac LOAN SERVICES TEAM OF THE YEAR • 86 400 • Bankwest • Better Choice Home Loans • Resimac MOST EFFECTIVE DIGITAL STRATEGY — LENDER • Bankwest • Firstmac Limited • Heartland Reverse Mortgages • Moula • Resimac • St. George Banking Group • Westpac FINTECH LENDER OF THE YEAR • 86 400 • Butn Ltd • MoneyPlace • Moula • Wisr

BEST MAJOR BANK BDM • Blake Hauber, Westpac • Derani Gaustella, NAB • Heidi Hayward, Commonwealth Bank • Kevin Skafte, ANZ • Lesley Klaege, ANZ • Sam Tang, Westpac • Tracy Smith, Westpac

NATIONAL AWARDS WESTPAC AUSTRALIAN BROKER OF THE YEAR • The finalists in this category are the winners of the individual broker awards, and the Broker of the Year will be announced at the AMAs on 15 October

BEST NON-MAJOR BANK BDM • Adam Livas, MyState Bank • Ava Aso, Adelaide Bank • Aysun Portoglou, 86 400 • Grant Roden, Bankwest • Jess Stevens, Adelaide Bank • Milenko Novakovic, ING

LIBERTY AUSTRALIAN BROKERAGE OF THE YEAR • The finalists in this category are the winners of the brokerage awards, and the Brokerage of the Year will be announced at the AMAs on 15 October www.brokernews.com.au

12-13_AB1816__AMA Finalists_SUBBED.indd 13

13

16/08/2021 2:57:25 pm

FE AT URES

COVER STORY

NETWORK GIVES BROKERS LIBERTY TO GROW The backing of a supportive, knowledgeable and technologically superior broker network can help brokers develop their own successful businesses in a highly competitive finance services market

LIBERTY NETWORK SERVICES: FAST FACTS LNS achieved 46% year-on-year settlement growth for FY2020/21 Average adviser productivity has increased by 15% 17% of adviser settlements are due to targeted marketing support initiatives 91% of advisers have diversified their businesses beyond mortgages 87% of advisers recognise LNS as a genuine partner to their business LNS has hosted 46 Zoom and MS Teams virtual training and education sessions LNS has a national adviser TrustPilot score of 4.97

14

not just workers and small business owners who are doing it tough as pandemic lockdowns continue to put a big strain on the economy; some brokers are under pressure too.

Paradoxically, the property market remains immune to COVID, and brokers continue to enjoy strong loan growth from refinances and first home buyers.

But those brokers who run their own businesses can find it difficult to keep pace with this customer demand for loans, especially in the face of increasing competition, regulation and long turnaround times from some lenders.

This is where being part of a wellorganised, efficient, tech-savvy and supportive broker network such as Liberty Network Services can make a world of difference to brokers wanting to attract loyal customers and grow a successful business.

More than just an aggregator, the wholly owned subsidiary of Liberty Financial boasts a strong network and a diverse range of loan products.

Australian Broker caught up with Liberty Network Services managing director Brendan O’Donnell and adviser Lisa Deans to find out more.

“Liberty Network Services is an innovative, high-touch alternative to traditional distribution models,” O’Donnell says. “With the support of a national retail brand, LNS offers a competitive range of benefits, solutions and opportunities for brokers to help more customers get financial and grow their businesses.”

LNS was established in 2012 to fill a gap in the broking industry and provide a competitive option for brokers looking for greater support.

“Rather than a one-size-fits-all approach, we sought to create a network where brokers [advisers] IT’S

could expect to receive personalised support tailored to their individual needs and goals.

“We welcome advisers at every stage of their broking career – from those who are new-to-industry to seasoned experts with decades of experience.”

O’Donnell says that as the business has evolved, the network has worked closely with its advisers to provide the best possible support, and

are capped at 25 advisers to ensure they have capacity to offer the level of personalised support required.

“This support includes creating tailored business plans for each adviser, providing the information, guidance and support they need to succeed, plus weekly engagements to ensure their business remains on track,” he says.

“In our annual adviser survey, 94% believed their NSM added value

“We’re heavily invested in developing bespoke tech solutions targeting adviser needs, and we’re continually updating to adapt to industry changes” Brendan O’Donnell, managing director, Liberty Network Services continues to exceed expectations.

“We see our advisers as true business partners, and to us, their success is our success.”

O’Donnell says LNS will soon reach 200 advisers across all states except the NT. “We have a robust national presence, and our reach continues to grow. In the last 12 months we have welcomed many established brokers who sought greater support to face the many challenges of running a business during a pandemic.

“We’re proud to have supported advisers from across Australia to not only weather the storm but thrive during such difficult circumstances.”

LNS network sales managers (NSMs) are “the first port of call” to provide advisers with hands-on support and answer any questions.

O’Donnell says NSMs are matched with advisers within their area and

to their business, and 87% recognised LNS as a genuine partner.”

Technology is a crucial part of LNS’s value proposition to its advisers, O’Donnell says.

“We’re heavily invested in developing bespoke tech solutions targeting adviser needs, and we’re continually updating to adapt to industry changes.”

The best example is the network’s seamless, easy-to-navigate Spark business platform, which has helped advisers increase productivity by up to 28%.

“Spark offers fast, streamlined functionality and is a valuable tool in helping advisers maintain their business while on the road.

“We pride ourselves on our amazing product manager lender panel data platform that provides 98% accuracy.”

In early 2020, LNS introduced

www.brokernews.com.au

14-16_AB1816_Cover Story_SUBBED.indd 14

16/08/2021 1:20:26 pm

In partnership with

a web-based customer self-serve feature called Know Your Customer (KYC), and O’Donnell says this has received excellent feedback from advisers.

Used by 87% of the network, KYC ensures greater ease, flexibility and convenience for customer information input.

“Already, it has proven to be a useful tool for advisers to further engage with customers and save time for customers and advisers alike, resulting in enhanced quality and professionalism.”

O’Donnell says new digital platforms have been a terrific win for the broking industry – many offer valuable solutions and improved speed and efficiency, allowing brokers to serve more customers.

In addition to the Spark and KYC platforms, many LNS advisers use organisational platforms such as Microsoft Office 365 and Microsoft Planner to effectively track their pipelines, as well as video conferencing software through Microsoft Teams.

“These tools have been very useful in supporting advisers to manage their everyday operations, particularly if they work as part of a team,” O’Donnell says.

“We are also seeing exciting new developments in terms of artificial intelligence, which is becoming more prevalent and which will redefine how brokers engage with their customers in the future.

“Our data science team, using AI, will help to lessen some of the administrative heavy-lifting and provide useful insights, allowing brokers more time to spend working directly with customers.”

O’Donnell says LNS has a broad lending panel of up to 22 bank and non-bank lenders who have been carefully selected to ensure advisers can offer a comprehensive service with a range of flexible solutions for customers.

“With loan solutions for home, car, personal, business and commercial finance, our panel caters to an extensive pool of diverse customers.

“Each lender brings something different to the table, and our lending solutions can be tailored to suit all kinds of customer needs.”

This includes helping those clients who don’t fit under the vanilla loan label, providing flexible solutions for those with complex lending needs.

“For self-employed and SME customers, our advisers have made exceptional progress in supporting their customers with Liberty’s all-inclusive range of business lending solutions.”

Brendan O’Donnell, managing director, Liberty Network Services

Understanding the benefits that diversification can bring to a broker’s business, all LNS advisers are encouraged to offer a full suite of services, O’Donnell says.

Despite the ongoing COVID challenges, the property market has continued to boom, and the need for specialist lending support remains high.

“It begs the question: if a global pandemic can’t quash Australia’s property market growth, what can?”

O’Donnell says even though migration rates have slowed across the country, LNS has experienced 46% year-on-year settlement growth, with no sign of the upward trend slowing any time soon.

“In the coming years, I believe

we can expect the property market to remain as strong as ever, with more buyers looking to tap into regional markets and get ahead of the competition.”

So, how can brokers make the most of this growth, and why should they join LNS? O’Donnell says local area marketing is one of the most www.brokernews.com.au

14-16_AB1816_Cover Story_SUBBED.indd 15

15

16/08/2021 1:20:34 pm

FE AT URES

effective ways to take advantage of increased mortgage finance demand, and having a strong local presence is a highly valuable asset.

“All LNS advisers are supported to create their own personalised business and sales marketing plan with the guidance of their NSM.” The plan is specifically tailored to target markets and takes into account various factors unique to each area.

“With the expert support of our in-house marketing team, LNS makes it easy for brokers to attract new leads while nurturing customers within their existing databases,” O’Donnell says.

Over the next 12 months, he says LNS will focus on supporting its advisers to grow their businesses, and there will be exciting developments to “supercharge” the Spark platform.

“The previous year has highlighted how essential a strong support system is in building a successful broking business. And we’re committed to upholding the camaraderie and sense of community within our network.”

Lisa Deans is an LNS adviser based in Peregian Springs on Queensland’s Sunshine Coast. She joined the network in late 2018 and her client base stretches north all the way to Gympie and beyond.

“My service is spread among different types of loans, varying from first home buyers to investors, including SMSF loans, refinancing, car and caravan purchases, business loans and personal loans,” says Deans.

“While there are many wonderful things about working with LNS, to me the best aspect is the unparalleled support. The LNS team truly wants to see you succeed and will help you in any way to make that happen.”

Deans says she is always in close contact with her NSM, Jane Silvestro, and “she is always looking for new ways that LNS can support me in my business”.

“I feel so uplifted after a one-onone chat with Jane, and that really helps me to focus on achieving greater goals in my business.

“The marketing team is amazing to deal with and very talented.

Whatever your goals, they are always available to share their expertise and put in the work to make it happen.”

Deans began her broking career working with another aggregator.

“It can be a lonely road when you’re just starting out, and I found I wasn’t getting the support 16

Lisa Deans, adviser, Liberty Network Services

“The LNS team truly wants to see brokers succeed and will help you in any way to make that happen” Lisa Deans, adviser, Liberty Network Services I needed to achieve my goals.

“So, when I learned about Liberty Network Services and what they had to offer, I didn’t hesitate in moving across. I firmly believe that the ongoing training and level of support I have received from LNS is the reason I’m still working in this industry today.”

In the last 12 months, Deans has enjoyed huge growth in her business and says looking at how many people she’s helped gives her the drive to help more clients make their dreams come true.

“Setting annual targets is very important to me, and achieving these goals gives me the confidence to set them higher each year to further grow my business.”

Deans praises LNS’s technology, CRM and other features.

“The Spark broker platform is an incredibly user-friendly system that streamlines the process from adding a client through to submitting a deal. It not only captures my database and makes loan processing a breeze, but it also offers a wealth of information on training, compliance, updates and more.”

Deans says LNS is unique in terms of CRM support as “they have an exceptional team of marketing advisers who package up and execute whatever I seek to do through a simple marketing brief ”.

“This is supported by Spark, the Liberty Store and the automated Customer Appreciation Program,

which really help me look professionally sharp with my customers. This then helps me generate customer referrals, which have grown a lot in the past year.”

Deans says another great aspect of LNS is the terrific support she gets from fellow advisers, who champion each other’s success.

“Throughout my career with LNS, I have developed many wonderful relationships with different advisers, and there is always someone to turn to for guidance.”

The LNS Facebook Group is also a good place to seek advice, ask questions of other advisers and celebrate milestones.

Deans says LNS can help advisers in every aspect of their business, including marketing, knowledge, training, or “just a friendly chat with like-minded and caring people”.

“Being a broker can be a lonely journey if you’re going it alone, but when you join LNS, you are welcomed into a supportive and empowering team of both new and experienced advisers.” AB

www.brokernews.com.au

14-16_AB1816_Cover Story_SUBBED.indd 16

16/08/2021 2:52:11 pm

SPECIAL REPORT

2021

FRANCHISE BROKERAGES Australian Broker honours brokers’ top franchise brokerages based on criteria such as lending panel, responsiveness, compliance, IT, accuracy and speed of commission payments, and CRM

CONTENTS

PAGE

Feature article .......................................................... 18 Methodology ............................................................ 19 5-Star Award winners .............................................. 21

www.brokernews.com.au

ABW_5 Star Franchise Brokerage_SUBBED_Fixes done.indd 17

17

16/08/2021 7:31:51 am

SPECIAL REPORT

5-STAR AWARDS 2021: FRANCHISE BROKERAGES

FRANCHISES GIVING BROKERS THE TOOLS TO FLOURISH the property marketing booming and half the country affected by the COVID-19 lockdown, brokers need all the support they can get when it comes to helping clients.

It’s a tough gig being a broker, looking after customers who may be experiencing financial stress, navigating an ever-changing myriad of regulatory requirements, determining what’s the best loan product from a huge range of lenders, and dealing with slow turnaround times.

The challenges are even more

“We believe that having a supportive culture is the key to a long-term, healthy and sustainable franchisee and franchisor relationship”

WITH

Sam Boer, general manager partnerships and product development – financial services, REA Group difficult for brokers who are starting their own businesses and trying to build a customer base from

the ground up. And this is where franchise brokerages or networks offer brokers a huge advantage,

WHAT’S MOST IMPORTANT TO BROKERS WHEN IT COMES FRANCHISE BROKERAGES CRM

Responsiveness

Compliance

IT

Lending panel

Accuracy and speed of commission payments

How important is this feature to brokers?

94.9%

94.2%

93.2%

92.2%

91.5%

89.4%

% of brokers who thought this feature was most important or important

78.6%

18

77%

70.4%

69.9%

64.3%

59.2%

by providing the backing of large, well-oiled machines that have the support staff, infrastructure and expertise to ensure brokers have the best chance of success.

To discover the best franchise brokerages in Australia in 2021, focusing on those that offer the best support for their brokers, Australian Broker sought feedback from franchise brokerages as well as brokers across the nation.

We asked the franchise brokerages to describe how they supported revenue generation for their brokers through areas such as lead generation, marketing, CRMs, referral partnerships and business development.

We also asked them about their back-office support for brokers, such as HR, compliance, lending support and IT. Australian Broker then surveyed hundreds of brokers across the country to gauge their views on franchise brokerages for the 5-Star Awards. Brokers were asked to determine what features of a franchise were most important to them.

Brokers then rated the franchises across 12 criteria: lending panel, lead generation, accuracy and speed of commission payments, CRM, compliance, responsiveness, IT, training, value for money, marketing support, brand recognition, and referral network support.

Finally, brokers picked seven franchise brokerages as the best

www.brokernews.com.au

ABW_5 Star Franchise Brokerage_SUBBED_Fixes done.indd 18

16/08/2021 7:32:03 am

in the industry. These brokerages achieved more than 80% ratings across all criteria.

The seven franchises receiving 5-Star Franchise Awards are Aussie Home Loans, Smartline, MoneyQuest, Redrock Group, Resolve Finance, Nectar Mortgages and Loan Market.

Sam Boer, general manager partnerships and product development – financial services at REA Group, which owns Smartline Personal Mortgage Advisers, says Smartline is incredibly proud to receive the 5-Star Franchise Brokerage Award.

“It’s testament to the strong and supportive culture we’ve built and nurtured over many years,” says Boer.

“Joining the REA Group family strengthened our culture even further, with people at the heart of the organisation. Looking ahead, we’re excited for what’s to come with the Mortgage Choice integration with a view of even more opportunity to better support our brokers.”

Boer says supporting its brokers is core to Smartline’s strategy.

“We believe that having a supportive culture is the key to a long-term, healthy and sustainable franchisee and franchisor relationship. As a team we have shared values and are equally passionate about delivering exceptional service for our clients, and success for our franchisees.

Our employees and brokers work together – more like a family than a typical aggregator–broker business relationship.”

Boer says being a broker and running a business, focusing on growth, being compliant and hiring and managing employees, is hard.

“Being part of a business model that supports you in all these aspects means you can spend more time focused on clients and their needs. In addition, Smartline is

METHODOLOGY Australian Broker carried out extensive research to determine this year’s best franchise brokerages in Australia. Researchers contacted franchise brokerages and asked them a series of questions, including: What is your value proposition to brokers? What revenue generation support do you provide your brokers?

Franchises were asked to show examples relating to lead generation, market, referral networks, CRM and business development.

They were also requested to detail their non-revenue-related support of brokers, including lending support, compliance, HR, mentoring and IT. Australian Broker then surveyed more than 400 brokers, who were asked what features of a franchise brokerage were most important to them. They were then asked to rate franchise brokerages across 12 criteria: lending panel, lead generation, accuracy and speed of commission payments, CRM, compliance, responsiveness, IT, training, value for money, marketing support, brand recognition and referral network support.

Ten franchises were shortlisted and 5-Star Franchise Brokerage Awards were presented to the franchises that achieved more than 80% ratings across all criteria.

67%

of all franchise brokerages were rated by brokers as excellent for value for money

backed by REA Group, owner of Australia’s leading property site, realestate.com.au.”

Boer says Smartline has experienced record loan growth in the past 12 months, as well as record growth in recruitment.

“Over the coming year we will come together as one business with another great franchise business in Mortgage Choice, and in doing so we expect to see these trends continue as we unlock the superpowers of all three businesses – REA Group, Mortgage Choice and Smartline.”

Aussie’s CEO of distribution, Brad Cramb, says the company is thrilled to have been voted by the industry and brokers as one of the country’s top franchisee brokerages.

“This 5-Star Franchise Brokerage Award is a true testament to the

79%

of franchise brokerages were rated as excellent for training

80%

of franchise brokerages were rated as excellent for marketing support

“When you are part of Aussie, you gain access to a range of pathways that empower brokers with industry-leading training and development” Brad Cramb, CEO of distribution, Aussie strength of our franchisee and broker network who consistently work hard to deliver choice and great outcomes for our customers,” Cramb says. “I’d like to congratulate the entire Aussie network on this fantastic recognition.

“We maintain a very strong

focus on our family-style business culture and support for our stores and brokers, with deep levels of engagement, transparency, and strong partnerships.

“When you are part of Aussie, you gain access to a range of pathways through a multichannel distribution

www.brokernews.com.au

ABW_5 Star Franchise Brokerage_SUBBED_Fixes done.indd 19

19

16/08/2021 7:32:16 am

SPECIAL REPORT

5-STAR AWARDS 2021: FRANCHISE BROKERAGES

SIZE OF MORTGAGE BROKER MARKET IN AUSTRALIA, 2011—2021 $3,000m

“We provide ongoing support and guidance throughout our broker partners’ business journey.

Our relationships are built on reliability and honesty”

$2,500m

$2,000m

$1,500m

$1,000m

$500m

$0m 2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Source: IBISWorld market research report, June 2021

BROKER MARKET GROWTH IN AUSTRALIA

$2.7bn Total size of mortgage broker market as of June 2021

9.4% Growth in size of mortgage broker market in year to June 2021

0.9% Annualised growth in mortgage broker market 2016–2021 Source: IBISWorld market research report, June 2021

20

model that empowers brokers with industry-leading training and development that continues well beyond accreditation.”

Cramb says that, with Aussie being part of Lendi Group, its brokers and franchisees form the largest retail mortgage brokerage in Australia and the fifth-largest distributor of mortgages behind the big four.

“This powerful combination between the number one retail brand with the number one online platform business allows our franchisees and brokers to grow their business their way.”

MoneyQuest managing director Michael Russell says the 5-Star Award is a great endorsement of the amazing team MoneyQuest has assembled in its first five years.

“It validates how hard our team works to support our brokers,

Andrew Cowan, managing director, Redrock Group

and our unwavering commitment to equipping them with the skills and tools they need to run thriving mortgage broking businesses,” Russell says.

“Our head office team members are specialists in their fields. They have earned the respect of our brokers through the exceptional work that they do and the personalised service and support they provide to our franchise network.

“All of our staff – including the executive team – are broker-facing.

Everyone arrives at work with a broker-service mindset.”

Russell says MoneyQuest provides its brokers with almost everything they need to operate and grow successful businesses.

This includes in-depth induction programs, regular PD sessions, an in-house compliance team that educates brokers, a marketing

www.brokernews.com.au

ABW_5 Star Franchise Brokerage_SUBBED_Fixes done.indd 20

16/08/2021 7:32:20 am

team that creates bespoke material for franchisees and manages their websites and social media, and an in-house systems trainer that helps brokers navigate software platforms.

“We are also a boutique franchise group, which allows us to provide personalised, high-quality service and hands-on support to our brokers and cater to their individual business needs.”

He says MoneyQuest’s settled loan volumes rose by 45.6% in FY21, with monthly lodgement now in excess of $400m. It also added 20 franchise owners.

“The resources, tools, education, training and mentorship provided to brokers within franchise groups is invaluable. However, what is little known is that, upon exit, franchise businesses generally sell for a much higher multiple of net

the industry’s most flexible and rewarding business models.”

Cowan says Redrock Group maintains a strong relationship with brokers, hosting PD days and monthly webinar programs.

“We have a dedicated support team who make themselves available each day to support our broker partners and their individual needs.

“We provide ongoing support and guidance throughout our broker partners’ business journey.

Our relationships are built on reliability and honesty.

“We coach our network brokers with accurate and practical advice and assistance that always aims to put our brokers in the right direction from the outset.”

Cowan says Redrock Group is experiencing record loan settlement volumes month-on-month.

“We are seeing upwards of a

“All of our staff – including the executive team – are broker-facing. Everyone arrives at work with a broker-service mindset” Michael Russell, managing director, MoneyQuest trail than businesses within the aggregation environment.”

Andrew Cowan, managing director of Redrock Group, says the 5-Star Award is a huge honour and “we’re really quite humbled in being recognised as a 5-Star franchise”.

“We’ve worked very hard to bring to the market a unique franchise broking model that really packs a lot of value,” says Cowan. “We’re really proud to be recognised by brokers as offering a really attractive broking business proposition.

We truly believe we’ve got one of

25% increase in annual settlement volumes from FY20. It’s an incredible achievement by our brokers given the times, and it just shows the growth in our national network and the strength in the broker proposition for Australian borrowers.”

There has also been unprecedented growth in new Redrock Group recruits, with 60 new brokers joining in the last year.

“It’s a real testament to our systems, value proposition and standing in the marketplace.”

2021

FRANCHISE BROKERAGES

Aussie Home Loans

Loan Market

MoneyQuest

Nectar Mortgages

Redrock Group

Resolve Finance

Smartline

www.brokernews.com.au

ABW_5 Star Franchise Brokerage_SUBBED_Fixes done.indd 21

21

16/08/2021 7:32:36 am

FE AT URES

OPINION

COPING WITH STRESS IN THE WORKPLACE Ally Kelly is CEO of Mind Blank, a charity she formed in 2011 to reduce the risk of suicide by running mental health workshops in schools, workplaces and communities.

Kelly shares her thoughts on stress in the finance industry is an undisputed fact that the financial sector is an occupational area at risk of work-related stress and psychosocial disorders among employees. Although Australia’s financial institutions are generally well placed to deal with the economic shocks from the COVID pandemic, a large number of workers in the community have not been so fortunate.

A rise in work-related stress within the sector, particularly among employees who deal with financially traumatised customers as part of their everyday workload, has become apparent. Stress may come from servicing customers who are expecting unrealistic levels of support or leniency, or prospective borrowers who have inflated expectations of their ability to take advantage of low interest rates to enter an aggressive housing market.

Angry, argumentative or traumatised customers express strong emotions, and these can trigger strong physical reactions in frontline workers. Whether these emotions are expressed in person, over the telephone or in an email, the effect is the same. When such incidents are experienced regularly and repeatedly over time, they have a detrimental effect on the body and can eventually lead to serious physical and mental health issues.

Knowing the signs of acute stress in ourselves, in our co-workers and in our employees is a good first step to helping stop a trajectory into burnout.

Symptoms of stress are well documented and include being easily agitated, experiencing constant headaches, feeling overwhelmed, experiencing low self-esteem, constant worrying, an upset stomach, including diarrhea and nausea, increased use of alcohol, drugs or cigarettes – the list goes on.

Ongoing training such as mindfulness classes, mental health first aid or courses on emotional intelligence can provide individuals with tools and strategies for self-care when dealing with difficult situations. Your workplace may even offer

such activities during office hours.

It is an essential first step to becoming equipped with wellbeing skills. It is, however, certainly not the end of the story given that we live in a competitive world where there are never-ending deadlines and an ongoing vested interest in the pursuit of profits.

So, what are some simple costeffective care strategies individuals can employ? One of the most proven and effective ways of maintaining good emotional health is to connect with

IT

22

mental health issues may develop. If left untreated, such issues could lead to long-term consequences.

As individuals, one of the best things we can do to minimise the mental health impacts of a stressful job is to schedule time for family, friends and social activities outside of the workplace.

The demands and rewards that go hand in hand with working in the financial sector can be extreme, and workers typically struggle with this work-life balance. Employees who are the happiest

One of the most proven and effective ways of maintaining good emotional health is to connect with others and talk it out

Ally Kelly Founder and CEO, Mind Blank

others and talk it out. It’s so simple that it can be overlooked; however, if you share your concerns and stressors with someone it can release stress instantly.

Keep an eye out for a good listener, as it’s important to reach out to the right people who you trust and who can actually support you. At work, it could be an impromptu debriefing with respected peers after difficult client meetings.

At home, it could be a simple phone call with a friend. It’s an easy and immediate first step towards combating the accumulation of stress and has relatively little to no cost involved.

Regrettably, workers in the financial sector report feeling their career prospects may be damaged if they discuss their anxiety or mental health with co-workers and/or supervisors.

The resulting culture of silence can severely impact the mental health and productivity of an organisation.

This sort of stigma will not be overcome overnight and will require a strategic plan and leadership buy-in to prepare for a culture of wellness. Without mitigation of the stressor, additional

and most productive are those who set boundaries for themselves. Not responding to work texts and emails at home are one of the obvious but effective rules we can implement to help us maintain our work-life perspective.

The use of structure and rituals to mark the beginning and end of the work day is not uncommon but becomes vitally important during the work-from-home exodus during COVID lockdowns.

Rituals are unique and personal. For some they lie in the commute, for others it’s simply a change of clothes or a walk or run before or after work.

It may seem simplistic; however, sharing your own coping strategies and ideas with peers and colleagues serves to not only pass on potentially life-saving ideas and strategies for avoiding burnout; raising a conversation about mental health also goes a long way towards dismantling stigmas and building a culture of open discussion about mental health in the workplace. Hosting a conversation about support early on can assist you in finding a much quicker pathway to recovery. AB

www.brokernews.com.au

22_AB1816_Opinion_SUBBED.indd 22

13/08/2021 6:35:15 am

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 Ollie Lum is residential loan manager at AAA Financial Group.

Trained by commercial broker John Macalyk, Lum approaches residential loan scenarios as if they were a commercial loan transaction. He recently helped a client obtain an interest-only loan involving 22 securities THE FACTS

Client Male, 75, female, 74, son, 36

Loan size $12.3m over 22 securities

Goal To break up bullet loan and obtain interest-only

Location Crows Nest, Sydney, NSW

Lender Westpac

THE SCENARIO

A Google enquiry I received turned into a home visit within two hours of receipt to go through the client’s scenario. After an initial conversation it became apparent that the client could use a total review and restructure of his portfolio, not just an improvement in rate on two of the securities, which he had reached out for. The client had 29 securities, all with ANZ. Two of the securities were combined with those of his adult son.

The client had tried Commonwealth Bank previously to move the $11.5m bullet loan and obtain a small equity release. However, he had not found any traction or the correct fit for him on a banker level.

The bulk of the client’s income was from SMSF and rental payments only and was not enough to service the debt on the face of things.

“Refinance 22 securities and print and loan docs – can we do it? Nancy can, at Westpac Private!”

THE TAKEAWAYS

THE SOLUTION

Quickly it was realised that we needed to involve a private banker.

Enter Nancy Ma from Westpac Private – hi Nancy. She was able to understand the complexities of the bullet loan and servicing piece to separate the loans to stand alone per security. This meant that the clients could sell down the portfolio if required and also assist in the estate planning for their adult children’s future inheritance.

We worked out a split to include one $7m bullet loan secured by 12 securities, with the remaining 10 securities on residential term loans

to 60% of the individual security value. All loans were interest-only terms for five to 10 years.

The cash-out component was slightly reduced, and the security list was examined thoroughly to plan for what to put in and leave out of the bullet loan. The adult children’s input increased at this point to ensure that the sell-down strategy worked for all parties.

Ollie Lum, residential loan manager, AAA Financial Group, with Nancy Ma, private banker, Westpac Private Bank

This was a complex loan deal, and the initial credit manager was not supportive. We had to do some internal dancing within the bank process to have the file reassigned and to gain support from an alternative credit manager.

We also obtained support from the NSW head of department at Westpac Private Bank. This of course took time and some ‘passing of the baton’ backward and forward. Plenty of momentum and energy between the broker, banker and the client was essential to get this complex deal over the line.

The difficulties that the 22 securities and servicing shortfall created on both a logistical and processing front meant that many visits to the client’s home, accompanied by the banker and broker, were also essential. The entire team at Westpac Private was also needed, and we think it was a record in relation to the amount of securities done in one transaction.

In the end, it was people and relationships first that ensured we managed to get the deal over the line – it took six months from start to finish.

We are now all heading out to dinner when lockdown is done to have the celebration bubbles. Thank you, Nancy, and your team at Westpac Private NSW. AB www.brokernews.com.au

23_AB1816_Big Deal_SUBBED.indd 23

23

13/08/2021 6:36:01 am

FE AT URES

SECTOR APPOINTMENT S

NEW ROLES FOR FINANCIAL SERVICES PROFESSIONALS Check out the latest high-profile moves in the financial services sector as seven industry professionals take up new positions across banks, non-bank lenders and fintechs

Audette Exel Non-executive director, Westpac board

“Data and automation are critical to delivering an improved experience to all participants in the financial services industry”

Shelley Cotter Director, LIXI board

Shelley Cotter, director, LIXI board

Well-known philanthropist Audette Exel will join the board of Westpac Bank as an independent non-executive board director on 1 September, and will also have roles on the Board Risk Committee and the Board Technology Committee.

Exel was a non-executive director of Suncorp for eight years until September 2020. She has more than 35 years’ experience in the financial services sector and is also the founder and chair of Adara Group, a social enterprise and international NGO that helps communities living in extreme poverty.

“We are delighted to welcome Audette to the board,” says Westpac chairman John McFarlane.

“Audette’s extensive business leadership experience, entrepreneurship and deep contribution to philanthropy will bring new insights to the board and complement Westpac’s 24

purpose of helping Australians and New Zealanders succeed.”

Exel says she is honoured to be joining the board of Australia’s oldest company.

“Westpac is hugely important to the lives of so many Australians and New Zealanders and has played an important role in the economic and social fabric of those countries,” Exel says.

Mathew Patterson Head of broker and insurance, Great Southern Bank

With 20 years’ experience in the banking industry under his belt,

Mathew Patterson has joined Great Southern Bank as its new head of broker and insurance.

He previously held roles as regional manager for New South Wales, Victoria and Tasmania and general manager of broker sales at ME Bank.

Patterson also spent time at ING, AMP and Citibank.

“It’s very exciting,” Patterson says of his move to Great Southern Bank. “The bank is very well positioned for growth, and I’ve been really impressed.

Great Southern Bank is a very values-driven organisation and a very customer-centric organisation. I’m really pleased to be a part of it.”

Patterson prides himself on offering a consistent service that brokers can depend on.

“Brokers want lenders to do the basics well, and I think if you can get the basics right a lot of the time and create a consistent experience so that brokers know what they’re in for when they lodge a deal with the bank, that’s something important.”

Great Southern Bank has recently undergone a major rebrand after being known as Credit Union Australia for 75 years.

ANZ’s head of retail business execution and retail distribution has been appointed to the role of LIXI director.

Cotter takes the place of ANZ general manager retail broker Simone Tilley, who was on LIXI’s board for five years.

Cotter joins a board of directors representing a range of companies, including CBA, Westpac, Lendi, Choice and Connective.

LIXI is a member-based not-for-profit company that develops data message transaction standards for the Australian mortgage processing industry.

Cotter has more than 25 years of experience in strategic change and solution delivery in financial services, including roles at ANZ, AXA/AMP, PwC and EY. “LIXI is important to our industry and for our customer experience, and I am excited to work with the LIXI board and team,” Cotter says.

www.brokernews.com.au

24-25_AB1816_Sector Appointments_SUBBED.indd 24

16/08/2021 1:19:42 pm

“Data and automation are critical to delivering an improved experience to all participants in the financial services industry.

However, standardisation and simplification are critical as we innovate, and it is only via a collaborative approach that this can be achieved.”

LIXI chair Shane Rigby says he is pleased to have Cotter joining the company’s dedicated group of directors, all of whom are committed to driving efficiencies in the lending industry.

the frustrations that brokers go through. I’m picking up all those experiences and bringing them to MyState.”

Albones’ appointment follows that of Huw Bough, who recently joined MyState Bank as general manager banking.

Jenna Deutscher Business development manager, Prime Capital

require financial help.”

Prime Capital chief commercial officer Steve Sampson says he is delighted that Deutscher is joining the company’s fast-growing, experienced sales team.

“I have always admired Jenna’s work ethic, her commitment to exceptional customer experience.

I know she will be very successful in her new role,” Sampson says.

“I look forward to working alongside Mario and the whole Pepper team to further grow Pepper and leverage its unique customer offerings.”

Tony MacRae Chief commercial officer, SocietyOne

Barry Saoud General manager mortgages and commercial lending, Pepper Money

Blake Albones Head of home lending distribution, MyState Bank

SME non-bank lender Prime Capital has added Jenna Deutscher to its expanding business development team.

Deutscher has more than six years of experience as a BDM, most recently at the Bank of Sydney.

Boasting more than 22 years’ experience in retail banking, mortgage broking, product development and distribution, Blake Albones has joined MyState Bank as its head of home lending distribution.

The industry veteran was the CEO of RateOne Financial Services and prior to that was NAB’s head of broker for Victoria and Tasmania.

Albones’ goal will be to increase the Tasmania-headquartered bank’s presence in Victoria and NSW and strengthen MyState’s renowned broker service proposition, including market-leading loan approval turnaround times.

“It’s very, very exciting,” says Albones. “MyState has always been a trusted and respected brand, especially in the Tasmanian market. It’s a huge opportunity to grow that presence here on the mainland.

“I know brokers inside out and, in my last role as CEO at Rate One, it put me on the other side of the fence, so I can see and understand

After more than 11 years at Aussie Home Loans, where he was general counsel and head of Aussie products, Barry Saoud has moved

“Joining the passionate and talented broker team at SocietyOne is a great next step in my career” Tony MacRae, chief commercial officer, SocietyOne She gained her first experience in the third party space as a loan processor.

Deutscher’s wealth of knowledge across different types of lending means she can provide solutionbased options to her brokers.

“I look forward to being able to assist my brokers in an area that is specialised and is a real opportunity to help brokers and their SME clients,” says Deutscher.

“What I like about Prime Capital’s offering is their commitment to fast, simple loans. The SME and commercial market have such a gap, and in the economic environment that we are currently experiencing … more and more businesses will

to a new role at Pepper Money as general manager mortgages and commercial lending.

He joins at a crucial moment for Pepper, which launched on the ASX in May and has recently priced a huge RMBS deal on the back of rapid growth in the home loan sector.

“Barry is the right person to lead our mortgages and lending division and has extensive executive and senior management experience within the financial services industry,” says Pepper Money CEO Mario Rehayem.

Saoud says: “Pepper Money is a fantastic business with a rich history of helping underserved customers.

Fintech personal loans platform SocietyOne has appointed Tony MacRae as chief commercial officer. He will take charge of SocietyOne’s interactions with brokers, handling third party distribution for the non-bank lender.

MacRae has worked in a number of senior finance roles, including general manager banking at MyState Bank. He was at Westpac for almost a decade, as general manager third party distribution at Westpac and St. George and then as Westpac national general manager for retail home ownership distribution. He also held highprofile roles at RAMS and Virgin Money.

“Joining the passionate and talented broker team at SocietyOne is a great next step in my career, which spans 30 years across broking, sales and distribution leadership, and product and operations management,” says MacRae. “I look forward to helping SocietyOne grow its already substantial capacity in this area.”

SocietyOne has also hired Tommy Lee as head of broker distribution and Melissa Romeo as a business development manager for Victoria.

Mark Jones, CEO of SocietyOne, says the appointments demonstrate the company’s commitment to brokers and add a wealth of experience and capability to an already highly regarded broker team. AB www.brokernews.com.au

24-25_AB1816_Sector Appointments_SUBBED.indd 25

25

16/08/2021 2:08:36 pm

DATA

i

SOUTH AUSTRALIA

ACT SPOTLIGHT

Suburbs have reported robust price gains in the second quarter of the year South Australia’s property market achieved a strong result in terms of sales and price growth over the second quarter of 2021, according to the Real Estate Institute of Australia (REISA).

According to data from REISA’s valuer-general for the period, the median property price across the state was up by 4.4% from the previous quarter and 9.1% from the same quarter last year.

Goodwood, Noarlunga Downs and North Adelaide reported price gains of above 70% on an annual basis. Fullarton, Linden Park, and Glen Osmond also posted substantial gains in property prices.

Sales data showed that Mount Barker, Morphett Vale and Paralowie were the top choice among buyers. The markets of Happy Valley, Andrews Farm and Munno Para West were also busy during the second quarter.

“Suburbs that can demonstrate excellent infrastructure, development potential and locations that appeal to the budget-conscious purchaser will always appeal to buyers and investors alike,” said REISA CEO Barry Money.

Area

Metro (H)

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

6.9%

rent

yield

$400

4.1%

$530,000

3.0%

Metro (U)

$367,000

-0.5%

6.4%

$350

4.8%

Country (H)

$300,000

1.8%

3.6%

$280

5.0%

Country (U)

$235,000

6.9%

4.8%

$220

5.2%

TASMANIA

Interstate and expat buyers continue to see Hobart as a viable investment spot Unusual circumstances due to the pandemic seem to have worked in favour of the Hobart property market, as it remains one of the top options for interstate and expat buyers.

Herron Todd White local property valuer Mark Davies says Hobart has experienced record sale prices and short listing times. House prices have exceeded vendors’ expectations. CoreLogic figures show that Hobart had the highest monthly gain in median price in June, up by 3% to $607,960.

“There is evidence of interstate purchasers further entering the market in the fear of missing out, with the intent to purchase now, get relatively good rental returns and move to the Apple Isle at a later date,” Davies said. “On two occasions recently, whilst inspecting properties that have sold, the purchasers were expats from overseas wishing to move back.”

Cheaper suburbs in Hobart are performing well.

Homes 20 minutes from the CBD and worth under $600,000 are popular among interstate buyers.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$600,000

4.3%

13.0%

$470

4.3%

Metro (U)

$470,000

1.0%

6.0%

$400

4.9%

Country (H)

$400,000

4.2%

13.6%

$350

4.9%

Country (U)

$315,000

1.8%

5.5%

$290

5.2%

26

TENANTS’ RIGHTS IN THE SPOTLIGHT

The ACT government is proposing revisions to its existing tenancy laws to create a ‘fairer, safer’ system for renters ACT government has started consultation on the four proposed revisions to the Residential Tenancies Act 1997 that would provide tenants with more rights and protection.

ACT Attorney-General Shane Rattenbury has encouraged tenants, investors, property groups and other tenant holders to have their say on the proposed changes to tenancy laws.

“Almost a third of Canberrans rent, so we want to turn rental properties from a house into a real home,” Rattenbury said.

“We are exploring four reforms to help create a fairer, safer rental system for all Canberrans.”

Ceasing no-cause evictions stems from the tenant’s need for certainty. Under the current law, landlords are given the freedom to evict a tenant on a month-to-month lease with six months’ notice without cause.

“This proposal will give them greater confidence that they will be able to assert their rights under the agreement without fear that THE

this may lead to their eviction. This will create security of tenure for renters and stop retaliatory evictions,” Rattenbury said.

The government also plans to regulate rent bidding. The current law doesn’t prevent a landlord or agent from telling a prospective tenant that someone else has made a better offer. It also doesn’t prohibit them from asking tenants if they want to outbid other bidders.

“While there has not been obvious evidence of this practice occurring regularly in the ACT, we want to hear from Canberrans about why and if rent bidding needs to be regulated.”

The proposals also include revisiting the minimum standards for rental properties, such those relating to accessibility, amenities, security and sanitation. Minimum standards for energy efficiency are already being introduced.

The government is also looking at whether there is a need to add a legal provision allowing tenants to grow their own food and make compost in their rental properties.

CANBERRA HOUSING MARKET INDICATORS Property stats for the week ending 8 August 2021

New listings:

631

Total listings:

1,523

Houses

40

$922,500

33

Monthly sales volume

Median price

Median days on market

131

$465,000

Monthly sales volume

Median price

Units

37

Median days on market

SUBURB TO WATCH: DICKSON Median price (houses) $940,000

Median price (units) $436,500

12-month growth

3-year growth

Average annual growth

Gross rental yield

6%

7%

5.5%

4%

12-month growth

Average annual growth

Weekly advertised rent

Gross rental yield

-9%

1.5%

$520

6%

www.brokernews.com.au

26-29_AB1816_Housing_Market_Data_SUBBED.indd 26

16/08/2021 2:10:56 pm

VICTORIA

Office occupancy in Melbourne CBD plummets after ongoing COVID lockdowns Office occupancy has fallen to its lowest level in the Melbourne CBD since the end of last year’s 112-day lockdown, according to the Property Council of Australia. The council’s survey shows office occupancy at just 12% in July, down from 26% in June and at the lowest level since October 2020.

Apart from in Sydney, where office occupancy was 6% in July, Melbourne’s occupancy levels have remained behind the rest of Australia’s capital cities since the start of the COVID pandemic.

“After climbing back to 45% of pre-COVID levels in April this year, office occupancy in our CBD has continued to go backwards as Victoria has endured repeated lockdowns in recent months,” said Property Council of Australia Victorian executive director Danni Hunter.

She said the CBD needed a plan for revival that would “address how we attract people safely back into the CBD, support our iconic retail and hospitality sectors and attract new, long-term investment”.

Area

Median price

Quarterly

12-month

Weekly

Gross

growth

growth

median

rental

rent

yield

Metro (H)

$840,500

3.3%

7.5%

$430

2.8%

Metro (U)

$620,000

0.7%

3.4%

$400

3.5%

Country (H)

$475,000

4.7%

17.1%

$370

4.3%

Country (U)

$349,725

4.0%

12.7%

$300

4.6%

NEW SOUTH WALES

Sydney’s vacancy rates are currently some of the highest in the country

HIGHEST-YIELD SUBURBS IN AUSTRALIAN CAPITAL TERRITORY Suburb

House

Gross rental yield

Median price

Quarterly growth

12-month growth

Average annual growth

DENMAN PROSPECT

H

9%

$535,000

2%

-5%

6.7%

LYONS

U

7%

$296,000

3%

9%

0.4%

CURTIN

U

7%

$298,000

15%

12%

-7.4%

HAWKER

U

7%

$319,500

0%.

-9%

3.7%

CRACE

U

7%

$365,500

0%

3%

-5.8%

HARRISON

U

6%

$417,500

-1%

4%

-1.1%

FRANKLIN

U

6%

$400,000

1%

6%

2.3%

WANNIASSA

U

6%

$415,000

-3%

-6%

-1.6%

GREENWAY

U

6%

$400,000

0%

0%

0.6%

BRUCE

U

6%

$399,000

0%

7%

0.3%

Rental markets in smaller capital cities and regional areas are benefiting from the exodus of Sydney residents.

ABS figures show a substantial increase in movers from Sydney amid the pandemic. The migration of more than 31,600 residents of Sydney to other parts of the country is consistent with the trends over the past two decades.

“This shift in population is the main driver of the tight rental market that exists across the country, other than in Sydney and Melbourne,” said Housing Industry Association chief economist Tim Reardon. “Given that the population is moving interstate and building new homes, it is unlikely that they intend to return to Sydney or Melbourne.”

Sydney and Melbourne had the highest vacancy rates in June at 2.8% and 3.5%, respectively.

However, these vacancy levels were slightly lower than the previous month. A vacancy rate of 2% to 3% is considered to be ‘healthy’, while a rate of above 4% or below 1% poses risks.

Area

Metro (H)

Median price

$1,160,000

Quarterly

12-month

Weekly

Gross

growth

growth

median

rental

3.6%

rent

yield

8.6%

$560

2.9%

Metro (U)

$749,000

0.4%

2.5%

$490

3.5%

Country (H)

$568,000

3.9%

10.8%

$425

4.1%

Country (U)

$485,000

2.8%

8.8%

$365

4.1%

www.brokernews.com.au

26-29_AB1816_Housing_Market_Data_SUBBED.indd 27

27

16/08/2021 12:05:09 pm

DATA

WESTERN AUSTRALIA

State grants are helping first home buyers break into the WA housing market The WA government helped more than 3,000 first home buyers break into the market through the Home Buyers Assistance Account (HBAA) in the last financial year.

Around $6m in HBAA grants were paid out in 2020/21, close to the record of $6.3m handed out in 2012/13.

The HBAA provides a $2,000 grant for eligible first home buyers who are targeting homes of under $400,000. The grant is available for the purchase of an established or partially built home through a licensed real estate agency.

Real Estate Institute of WA (REIWA) president Damian Collins said the success of the HBAA grants was a testament to the state being one of the places where the homeownership dream was “alive and well”.

“While in many parts of Australia, particularly the east coast, first home buyers are being priced out of the market, WA is the most affordable place in the country to buy your first home,” Collins said.

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$530,000

3.0%

7.4%

$400

4.1%

Metro (U)

$410,000

4.0%

4.0%

$370

4.9%

Country (H)

$390,000

4.1%

15.2%

$380

5.2%

Country (U)

$235,000

4.5%

15.0%

$330

7.5%

Quarterly

12-month

Weekly

Gross

growth

growth

median

rental

rent

yield

93

Cleared

46

Uncleared

13

Clearance rate

78%

PERTH Total auctions

22

Cleared

12

Uncleared

5

Clearance rate

70.6%

Houses

$100,000 $0

Sydney Melbourne Brisbane

Adelaide

Perth

Units

Darwin

$465,000

$427,500

$922,500

Hobart

$570,000

$509,000

$635,500

$416,000

$500,000

$200,000

$346,000

$300,000

$496,000

$500,000 $400,000

$412,000

$700,000 $600,000

$560,000

$800,000

$546,500

$900,000

Canberra

CAPITAL CITY HOME VALUE CHANGES Capital city

Weekly change

Monthly change

Year-to-date change

12-month change

Sydney

0.4%

1.6%

18.2%

19.0%

Melbourne

0.3%

1.2%

11.6%

11.0%

Brisbane

0.4%

1.7%

13.5%

16.4%

Adelaide

0.3%

1.4%

11.1%

16.0%

0.2%

0.4%

7.8%

11.2%

0.4%

1.4%

14.4%

15.5%

Metro (H)

$575,000

5.1%

10.6%

$500

5.0%

Metro (U)

$348,500

5.0%

5.0%

$373

6.1%

Perth

Country (H)

$448,500

2.4%

4.4%

$500

6.0%

Combined 5 capitals

Country (U)

$324,000

0.8%

6.3%

$380

6.2%

28

Total auctions

$1,000,000

$710,000

NSW homebuyers and investors stuck in lockdowns are increasingly thinking about relocating, and Darwin is their top choice, according to Raine & Horne. Since the start of the lockdowns in Greater Sydney on 26 June, enquiries from interested NSW buyers looking into properties in Darwin have surged by 20%.

Raine & Horne general manager Glenn Grantham said this was reminiscent of what happened during Victoria’s extended lockdown.

NSW investors are most interested in properties in Darwin and Palmerston. A value of $500,000 is the “sweet spot” for investors.

“Many NSW investors are also looking for vacant properties, rentals where the current tenants are about to vacate or have leases that are about to be renegotiated,” Grantham said.

“Previously, investors were ignoring vacant apartments or those nearing the end of a lease.

But with rents in Darwin and Palmerston going through the roof, they are now popular with savvy investors.”

Median price

ADELAIDE

MEDIAN HOUSE AND UNIT PRICES

Darwin is becoming a hotspot for investors looking to relocate from NSW

Area

Auction volumes and the combined capital city preliminary clearance rate fell week-on-week with 1,672 auctions held and a success rate of 76.4%. These results followed Melbourne’s announcement of a seven-day snap lockdown, meaning the three largest capital cities were in lockdown. In the previous week, a combined capital city preliminary auction clearance rate of 79.2% was recorded, later revising down to 77.2% at final figures. Final numbers indicate that 1,761 homes proceeded to auction, down -15% on the initial predicted numbers.

Melbourne was the busiest auction market, with 710 homes taken to auction; however, this was down 15% on the initial predicted count as the city announced a lockdown. Over the previous week, 656 auctions were held, and one year ago 294 took place. A preliminary auction clearance rate of 73.5% was considerably lower than the 77.1% preliminary result in the previous week. There were 576 Sydney auctions held in lockdown. A preliminary auction clearance rate of 80.4% was recorded, later revising down to 76.1% at final collection.

$699,000

NORTHERN TERRITORY

WEEK ENDING 8 AUGUST 2021

$935,000

Area

CAPITAL CITY AUCTION CLEARANCE RATES

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

www.brokernews.com.au

26-29_AB1816_Housing_Market_Data_SUBBED.indd 28

16/08/2021 12:05:39 pm

BRISBANE CANBERRA Total auctions

111

Cleared

78

Uncleared

12

Clearance rate

Total auctions

160

Cleared

93

Uncleared

45

Clearance rate

67.4%

86.7%

SYDNEY Total auctions

576

Cleared

403

Uncleared

98

Clearance rate

80.4%

TASMANIA

MELBOURNE Total auctions

710

Total auctions

0

Cleared

411

Cleared

0

Uncleared

148

Uncleared

0

Clearance rate

Clearance rate

73.5%

n.a.

Note: A minimum sample size of 10 results is required to report a clearance rate.

QUEENSLAND

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Median house price could top $1m on the back of the 2032 Olympics Brisbane’s successful bid to host the 2032 Olympics is expected to have a massive impact on the local property market, with one economist predicting the median house price will triple to $1.7m.

The city of Brisbane is no stranger to hosting some of the world’s biggest events, including the World Expo in 1988 and the G20 Summit in 2014. An analysis by PRD Research showed a surge in prices during the 11 years prior to and the year after these two major events. For instance, the median price in Brisbane increased by 278.8% during the period prior to the Expo 1988. House prices in South Bank and its surrounding suburbs more than tripled at the same time.

A similar trend unfolded when the city hosted the 2014 G20 Brisbane Summit. In the decade before the event, property prices surged by 112% in Brisbane and 116% in South Bank and nearby suburbs.

Metro (H)

$610,000

2.7%

6.5%

$430

3.9%

Metro (U)

$415,000

1.8%

3.8%

$390

5.0%

Country (H)

$482,000

2.2%

4.5%

$420

4.7%

Country (U)

$420,000

2.5%

7.3%

$360

4.7%

Source: Except where otherwise stated, all data sourced from CoreLogic, July 2021

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_AB1816_Housing_Market_Data_SUBBED.indd 29

29

16/08/2021 12:05:55 pm

PEOPLE

Aggregator AFG

IN THE HOT SEAT

Successful migrant Sunil Kumar is the award-winning founder and CEO of Reliance Real Estate, one of Australia’s fastest-growing real estate firms. The author of From the Ground Up: 7 Principles for Building a Business Fast, also owns brokerage Funding Force

You started Reliance Real Estate in 2011 and have built it up to be a large award-winning agency. What’s the secret to your success?

Time and discipline. If you’re disciplined and aim to serve your A team/client well, you will reach a pinnacle of success. I started Reliance with long-term success in mind, to find the right people willing to walk the path with me. This philosophy became the basis of everything I did. I strived to look after my team. It’s important that everyone feels valued, heard, and in an uplifting environment.

We provide an excellent experience to our team, with the best training, from onboarding to leadership training and opportunities to grow.

Q

What motivated you to start up a brokerage in 2014?

It was a natural progression and driven by demand from A our clients. We were referring our clients to finance services, and they were not getting a good experience. We also recognised a unique opportunity. We started Funding Force to provide a better platform to our agents and an excellent financial service to our clients. Innovative, savvy brokers with outstanding long-term client relationships means higher traffic and visibility for both brands.

Q

How well do the two businesses work together?

Funding Force is a major strength for Reliance; it understands A the entire buying process and provides an experienced, qualified service. It allows us to be with the client at every step, from presenting a property to providing finance approval. We wanted our clients to have access to a wide range of lenders and the highest possible buying power. There is an excellent level of bonding between our agents and brokers. All our brokers are qualified to conduct open-for-inspections, which highly benefits our vendors and buyers alike.

Q

How important is it to you to inspire other migrants who are striving to make a new life for themselves in Australia? is a place where, if you are willing to be dedicated, A Australia driven, passionate and inspired, you will find a greater level of success in any field. I believe immigrants should not look for

Q

30

Sunil Kumar, founder and CEO, Reliance Real Estate

shortcut methods but rather choose the right path to long-term success.

If the books I write or the work I do helps lead others to a brighter life, or if I can inspire migrants, then there is no higher purpose for me.

You have just released a book with tips for building a new business quickly. What’s one piece of advice you would give new brokers? stop working towards being the best of the best. You need to A Never always be learning, evolving, training, innovating, expanding and working with your teams and your community. There is enormous value in being the top specialist in your field. It’s a very rewarding position, so make sure you’re always training to be the best, whilst keeping your clients’ interest first above all. AB

Q

www.brokernews.com.au

30_AB1816_OBC_Hot_Seat_SUBBED.indd 30

16/08/2021 2:50:50 pm

AMA21

Celebrating 20 years 15 OCTOBER 2021 • THE STAR SYDNEY

CONGRATULATIONS TO THE 2021 EXCELLENCE AWARDEES Australian Broker and MPA, in partnership with Westpac, are pleased to announce the Excellence Awardees of the 20th annual Australian Mortgage Awards. The selection of individuals and organisations across 28 categories is a true representation of excellence in the mortgage profession. They are to be congratulated for their outstanding achievements, innovation and leadership over the past year.

The grand winners will be revealed at the awards gala on 15 October at The Star Sydney.

Reserve a table today to join the biggest night in the mortgage industry’s calendar and celebrate with your peers after an extraordinary year.

To view the list of excellence awardees and reserve a table, visit

australianmortgageawards.com.au

Event Partner

Award Sponsors

BROKER

Official Media

30_AB1815_OBC_Hot_Seat_SUBBED.indd AMA21 Congratulations EA Ad - AB.indd 311

Organiser

12/08/2021 11:34:47 am PM 11/08/2021 1:01:46

Better together.

Continually improving the experience to make our partnership stronger.

Our simpler Home Loan Pricing Tool An improved pricing tool, with more functionality - so you can get the best outcome for your customer, faster.

A better digital experience Our DigiDocs deliver an easier and more convenient customer experience, meaning faster settlements.

Solution-focused lending We consider the circumstances of individuals and provide alternative servicing arrangements for customers with non-standard income or liabilities.

Complimentary Home Loan Compassionate Care protection We’ll support eligible Owner Occupied home loan customers by paying their home loan repayments for around 12 months, if the customer, their spouse or dependant passes away or is medically certified with a terminal illness.*

commbroker.com.au Things you should know: *Loan and age eligibility requirements and other limitations and exclusions may apply.

Applications are subject to credit approval. Terms, conditions, fees and charges apply. Commonwealth Bank of Australia ABN 48 123 123 124 Australian credit licence 234945.

30_AB1815_OBC_Hot_Seat_SUBBED.indd 32

12/08/2021 11:34:15 am