Australian Broker 17.15

AUGUST 2020 ISSUE 17.15

Fall in investment lending ‘fortunate’ CoreLogic explains how the prolonged decline in investment lending has been fortunate for the rental market /10

September’s fiscal cliff With JobKeeper and JobSeeker due to evolve in September, are we approaching fi nancial doom? /18

ANJA PANNEK After a volatile start to 2020, capping off a tumultuous couple of years in mortgages, PLAN’s CEO shares the big opportunities ahead for brokers /14

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Specialist lenders Specialist lending can offer a source of stability for many Australian borrowers /20

ALSO IN THIS ISSUE… Agriculture lending This growth sector needs trusted advisers who understand its complexities /23 Broker on broker Canberra’s Deanna Ezzy on her six-month survival plan to conquer COVID-19 /25 In the hot seat Why Rebecca Walker wants her borrowers to pay off their homes within 10 years /30

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NEWS

IN THIS SECTION

Lenders Another lender dazzles with sub-2.0% rate /04

Industry groups Lender blasted over treatment of SME customer /06

Market Decline in investment lending ‘fortunate’ for rental market /10

Aggregators 86 400 and Australian Finance Group join forces /12

Technology Big four bank introduces digital signatures /08

www.brokernews.com.au AUGUST 2O20 EDITORIAL

SALES & MARKETING

Editor Sarah Megginson

Publisher/Sales Manager Simon Kerslake

News Editor Madison Utley

GLOBAL WATCH How is the mortgage and broking world responding to the COVID-19 pandemic overseas?

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

HOME CONSTRUCTION PICKS UP SPEED IN THE US in the US reported increased demand for housing in June, driven by strong single-family home construction. Total housing starts soared 17.3% to a seasonally adjusted annual rate of 1.19 million units, according to the US Housing and Urban Development and Commerce Department. If this pace continues, builders will begin constructing 1.19 million units in the next 12 months. “Fuelled in part by record-low mortgage rates, builders are seeing solid demand for housing despite the challenges of the virus and elevated unemployment,” said Chuck Fowke, chairman of the National Association of Home Builders (NAHB). “Demand is growing in lower-density markets, including exurbs and small metros.” NAHB chief economist Robert Dietz added that single-family home construction is “expanding off April lows, due to lean inventories of new and existing homes”.

BUILDERS

Production Editor Roslyn Meredith

ART & PRODUCTION

Global Head of Communications Adrijana Monevska

CORPORATE

Designer Jommel Ramos

Chief Executive Officer Mike Shipley

Production Manager Alicia Chin

Chief Operating Officer George Walmsley

Traffic Coordinator Kristine Jamir

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

EDITORIAL ENQUIRIES

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

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EXEC STANDS DOWN AFTER COMMENTS ON COMPETITOR’S WIFE is stepping back from leadership of the US Association of Independent Mortgage Experts (AIME) after being widely condemned for lewd remarks he made about a competitor’s wife. Casa is being sued for defamation for making crude, sexually explicit remarks about Theresa Niemiec, the wife of Quicken Loans executive vice president Austin Niemiec. As of mid-July, Flagstar Bank and Caliber Home Loans, both sponsors of AIME, had withdrawn their support. Other lenders, including Paramount Residential Mortgage Group and United Wholesale Mortgage, have continued to stand by AIME but have condemned Casa’s remarks. Casa said, “I’ve found myself faced with many tough conversations that I deserve to have to face … I understand I’ve crushed the trust that you’ve all had in me. I’m truly sorry. There is no defending or excusing what I did.”

ANTHONY CASA

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HOMEBUYERS: WHICH GENERATION IS STRUGGLING THE MOST? to findings of an upcoming report from COGNITION SmartData, the ACCORDING generation having the most difficulty purchasing homes in America is not everyone’s favourite punching bags – the millennials – but their predecessors, Generation X. According to Sara Gutterman, CEO of Green Builder Media, Gen X’s inability to purchase homes is the fault of the 2007 financial crisis. “In the 2008 recession, it was really the Gen Xers that got hit the hardest,” Gutterman said. Entering what should have been for many their prime homebuying years over a decade ago, Gen Xers were lured into the housing market at exactly the wrong time. When it tanked and millions of recently purchased homes plummeted in value, Gen X’s credit took a vicious beatdown. “It really wrecked their credit and had a big impact financially,” says Gutterman. “They just haven’t been able to recover.”

This magazine is printed on paper produced from 1OO% sustainable forestry, grown and managed specifically for the paper pulp industry Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Australian Broker magazine can accept no responsibility for loss. Australian Broker is the most-often read industry publication, according to independent research carried out by the Ehrenberg-Bass Institute for Marketing Science at the University of South Australia in December 2008. The research also found that brokers rate Australian Broker as the best for both news content and feature articles, followed by sister publication MPA. Overall, on all categories, Australian Broker ranks top followed by MPA. The results were based on a sample of 405 respondents who were the subject of telephone interviews.

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NEWS

LENDERS MAXIMUM LOAN THROUGH SME SCHEME QUADRUPLED federal government has announced both the extension of the Coronavirus SME Guarantee Scheme and a series of “key changes” to the initiative. The initial phase of the scheme remains available for new loans issued by eligible lenders until 30 September 2020, while the second will run from 1 October 2020 to 30 June 2021. Loans will not be limited to the sole purpose of working capital, and their maximum size will increase from $250,000 to $1m, with loan terms rising from three to five years.

BIG OFFERS IN BANKING

THE

BANK OFFERS $1 LMI FOR FIRST HOME BUYERS has gone live with a remarkable offering of $1 lenders mortgage insurance for eligible first home buyers.

The special offer aims to help aspiring homeowners overcome “one of the biggest hurdles” of homeownership: saving a deposit. Eligible first home buyers with an LVR of up to 85% will have their LMI reduced to just $1. The deal applies only to owner-occupiers with principal and interest repayments and a maximum loan size of $850,000.

ST. GEORGE BANK

“A low rate is fantastic, but … once you add in package fees, account-keeping fees and other charges, the loan [might cost] you more in the long run” Sarah Megginson Managing editor, Australian Broker

Record-low interest rates The industry hasn’t seen mortgage rates this low, well, ever

Cash-back incentives Cash refunds of up to $4,000 are currently available

Rewards

No or low LMI

Loans can be packaged with credit cards that deliver big incentives

Some banks are willing to waive lenders mortgage insurance

ANOTHER LENDER DAZZLES WITH SUB-2.0% HOME LOAN RATE A non-bank lender has unrolled a record-low variable rate of just 1.99% for new customers applying for an owner-occupier home loan lender Loans.com.au has announced a new low rate of 1.99% for home loans, which now stands as the lowest variable rate in Australia.

However, while the offer is undoubtably notable, the loan reverts to an ongoing variable rate of 2.57% (2.55% comparison rate) after the first year.

The lender is also offering a two-year discounted variable rate of 2.09%, which reverts to 2.79% ongoing.

Both rates are only available to new customers applying for an owner-occupier loan, paying principal and interest and putting NON-BANK

down a deposit of 20% or more.

According to Sarah Megginson, managing editor of Australian Broker, Your Investment Property Your Mortgage, it was “only a matter of time” before the market saw more offerings beginning with a one.

“First cab off the rank was Bank of us, but the catch there was it was only available to Tasmanians,” she said. “Here we have a more broadly available product, and that’s really exciting for borrowers, as it shows there is a lot of competition for their business, which means shopping around could help them save thousands of dollars.”

While such a low figure can

be tempting, Megginson has urged borrowers to look beyond the headline rate – or cash-back incentives, offers to waive LMI and the like – to make sure the deal truly works in their favour.

“A low rate is fantastic, but what if the lender’s turnaround times have blown out to three months?

Or it might be the case that once you add in package fees, accountkeeping fees and other charges, the loan costs you more in the long run than a mortgage starting with a two,” she explained.

“A comparison rate is a good place to start, but as they’re generally pegged to an unrealistically low $150k loan amount, even they are not a clear indication of what the loan will cost a borrower, based on their specific situation. Right now, working with a broker is the key to ending up with a product and rate that suits your needs,” Megginson concluded.

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We’ll help prepare your team for ongoing regulatory and industry changes with our award-winning training and development program.

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3/08/2020 4:21:16 PM

NEWS

INDUSTRY GROUPS MFAA GOES VIRTUAL WITH 2020 CONFERENCE MFAA has revealed details of its Virtual Conference 2020, which will be centred around the timely theme of ‘Succeeding in the new era’ and aims to give attendees practical knowledge and skills to help them achieve this. The sessions, which are free for MFAA members, will kick off on Thursday 27 August and continue for four consecutive Thursdays. The line-up of speakers includes world-renowned optimist and visionary TED Talk speaker Simon Sinek, who will be interviewed on behalf of the MFAA by television journalist Ross Greenwood.

THE

FBAA OFFERS FREE ONLINE COMMERCIAL MASTERCLASS

LENDER BLASTED OVER TREATMENT OF SME CUSTOMER Ombudsman Kate Carnell says she’s disappointed in the lender’s unwillingness to resolve a customer dispute in a fair way lender that took direct action against its small business client after refusing mediation has been called out by the Australian Small Business and Family Enterprise Ombudsman.

ASBFEO Ombudsman Kate Carnell is now attempting to fashion the unfortunate episode into a learning opportunity for small business owners looking to take out a loan in the future.

The Ombudsman’s office received a request for assistance from a small business that was in dispute about its loan with Prudent Capital.

The request outlined a number of alleged wrongdoings. However, the lender reportedly refused to engage in mediation and proceeded to take direct action against its small business client.

A

Commercial Loans

“I am extremely disappointed by the refusal of Prudent Capital to engage in mediation and seek to resolve the dispute in a fair way,” said Carnell. “I continue to encourage Prudent Capital to reconsider its refusal.”

The small business involved in the loan dispute alleged that Prudent Capital had applied substantial interest and penalties to its loan, as a result of the loan term blowing out due to the lender’s own delays.

“It was also alleged Prudent Capital acted in ways that obstructed the small business from refinancing,” Carnell added.

According to the Ombudsman, small businesses should heed the “timely and critical reminder” to check that the lender they are considering taking out a loan with

is a member of the Australian Financial Complaints Authority before initiating the transaction.

“Small business borrowers can only access a free and independent dispute resolution process for their financial complaints if their lender is an AFCA member,” she explained.

“Not all lenders are AFCA members – in fact, many are not – and small businesses need to be aware of the risks. Access to funding continues to be a major issue for small businesses.

It’s crucial they make the right choices when it comes to managing their finances.”

With a number of finance options available to SMEs at present, including governmentbacked loans that don’t require repayments for the first six months, Carnell urged borrowers to be careful before committing to loans that could impact their cash flow.

“I would encourage small businesses to go to their trusted accredited financial adviser before making any big decisions,” she said.

FBAA has announced that its third annual industry commercial masterclass week will look a little different this year as it goes digital to comply with COVID-19 restrictions. The webinars are set to run from 20 to 24 July and will be free to the industry, even non-FBAA members. The seminars will cover a wide range of topics and aim to provide unique insights into the post-COVID market, commercial loan submissions, leases, cash flow, new technology, customer focus, industry challenges, lender support and more.

THE

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3/08/2020 4:23:49 PM

NEWS

TECHNOLOGY

HIA CAUTIONS AGAINST ‘OVERINTERPRETING’ DATA Housing Industry Association has welcomed the 77.6% rise in new home sales over the month of June but warned against relaxing into premature relief over the state of the housing market. HIA chief economist Tim Reardon emphasised that the substantial rise followed a “record-low result in May”. “The rebound in new home sales in June does not fully offset the dismal results of the preceding three months, and we are cautious of overinterpreting data from a single month,” he said.

THE

NEW PRODUCT LAUNCHED TO AID BROKER COMMS marketing firm specialising in the financial services industry has launched a new product specifically designed to help brokers more easily build and strengthen client relationships in the turbulent current environment. The offering from Advant Plus can aggregate a wide range of content, including newsletter articles, topical updates, videos, infographics and social posts.

There are free trials for businesses interested in testing how the new platform may be able to assist their team and clients in the weeks and months ahead.

A

“These [digital] changes … keep the cost lower and reduce the hassle of transactions which rely on ‘in person’ signatures and paper documents”

Anna Bligh CEO, Australian Banking Association

8

BIG FOUR BANK INTRODUCES DIGITAL SIGNATURES ANZ expects its newly launched digital signature and document execution process for home loan applications to save time and ‘reams of paper’ is undisputed that the COVID-19 pandemic and associated social distancing measures have expedited the digitisation of the financial services sector, with smaller and more agile players having already broadly moved to providing digital verification of identity and e-signature capabilities.

Now, around four months after the pandemic set in, the major banks are getting in on the action.

ANZ is the latest of the majors to adopt the technology that enables customers to add e-signatures to their documents. eSign will allow a range of application forms to be signed digitally using both the Loanapp IT

tool and ApplyOnline, “saving significant time, as well as reams of paper”, the bank said.

The new e-signature capability will be available to both current and existing home loan customers of the bank who request either a new home loan application or even a Streamlined Credit Critical Renewal or Non Credit Critical Renewal.

The full range of documentation that can be signed digitally includes a home loan Application Form, Statement of Position, Breakfree Form, Email Consent Form, Applicant Guarantor Declaration and Guarantor Self Declaration.

If a customer is unable to, or would prefer not to sign their

documents digitally, they can still physically sign their home loan documentation.

All home loan documents not listed above will continue to be signed in accordance with standard procedure, including post-approval documents.

The ANZ operations teams will use existing delivery methods for sending loan documents such as the Letter of Offer to the customer, which will need to be executed with physical signatures.

Brokers have been encouraged to inform their customers of ANZ’s new digital signature capabilities. Before using the ANZ eSign functionality, however, they must obtain the consent of the customer to receive documents electronically.

ANZ has hosted a webinar to walk brokers through the eSign process. For more information on how this process works, brokers are urged to contact their business development manager.

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NEWS

MARKET COVID ACCELERATES MOVE AWAY FROM CASH the onset of the COVID-19 pandemic, more than two thirds (68%) of Australians have reported using less cash in favour of contactless technology and other digital payment methods, according to research conducted by MyState Bank.

Of that group, 67% expect to continue using digital payment methods going forward. “The rise of online shopping, digital wallets and the whole convenience of digital payment methods has pushed many consumers to reduce or even eliminate cash from their lives,” said MyState Bank MD and CEO Melos Sulicich.

SINCE

RISE IN SME LENDING LINKED TO ECONOMIC RECOVERY head of the Australian Banking Association has attributed new figures that show rising economic confidence to the steady increase in small business lending over recent months.

According to ABA CEO Anna Bligh, this continued lending to small businesses between May and June demonstrates the “key role” the country’s banks have played and will continue to play in the recovery of the national economy. Last month alone, lending to small, medium and family businesses increased by more than $2.2bn.

THE

PROLONGED DECLINE IN INVESTMENT LENDING ‘FORTUNATE’ FOR RENTALS A new housing affordability report suggests that the Australian real estate market is uniquely positioned to weather the COVID-19 storm – but for how long? the impact COVID-19 has had on consumer confidence in the housing market has been well documented, with caution stalling activity and transactions on the decline, the pandemic has also “uniquely impacted” demand for rental accommodation, says the ANZ CoreLogic Housing Affordability Report.

However, according to the report, the trajectory of Australia’s overall housing market in recent years may have helped position the rental market to weather the pandemic better than could have otherwise been expected.

Demand for rentals has fallen in recent months due to the WHILE

disproportionate loss of income in industry sectors where workers were more likely to be renting, as well as to the closure of Australia’s borders to international travellers and migrants. Rental prices and listings have both since decreased.

“One of the most impacted sectors of the housing market amid COVID-19 has been the rental market,” said CoreLogic’s head of research Australia, Eliza Owen.

“Due to a mixture of negative demand and supply shocks, rental market conditions weakened over April to June. This came off the back of an already ‘weak’ rental environment, where annualised growth in rents has been subdued at 0.9% across the capital city

markets for the past five years.”

However, also over the last several years, investors have been withdrawing from the housing market due to tightened lending conditions designed to limit potentially risky housing lending.

The report says it is “fortunate” that, in the lead-up to COVID-19, investment participation in the property market was correcting from very high levels. With more property purchased by owneroccupiers, the risk in the market was reduced as they are typically less likely to offload property assets amid economic uncertainty.

“Before the onset of the pandemic in Australia, investor participation in the housing market was at its lowest since 2001.

Investor finance fell sharply over April and May due to high levels of uncertainty. If sustained, this suggests that the decline in demand for rentals could be partially offset by a decline in the supply of rental property,” Owen said.

“Before the onset of the pandemic in Australia, investor participation in the housing market was at its lowest since 2001” Eliza Owen Head of research Australia, CoreLogic

DROP IN MONTHLY VALUE OF INVESTOR HOUSING FINANCE COMMITMENTS Source: ABS

($m) $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 May 2004

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$4,101m May 2006

May 2008

May 2010

May 2012

May 2014

May 2016

May 2018

May 2020

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NEWS

A G G R E G AT O R S

AGGREGATOR HONOURS MELBOURNE BROKERAGE just nine months, the comprehensive customer offering at diversified brokerage Entourage has propelled the company into the top 1% of businesses in the Loan Market network. The Melbourne-based brokerage joined Loan Market under the aggregator’s Bring Your Own Brand model in late 2019. Loan Market executive chairman Sam White welcomed Entourage into the ‘Chairman’s Club’, which recognises the “very best” in the aggregator’s network.

IN

CHOICE WELCOMES SPECIALIST LENDER non-bank lender has been welcomed onto the panel of its first major Australian aggregator.

Announcing its partnership with self-employed specialist lender RedZed, Choice Aggregation CEO Stephen Moore said providing brokers and their customers with a wide range of options was a “key priority” for the group. “The market for specialist lending continues to grow, and we believe RedZed’s products and fantastic service ethic will be appealing to members looking to service self-employed clients.”

A

“Brokers and customers want an application experience that’s easy to use and a process that gets them a decision quickly” Robert Bell

CEO, 86 400

12

86 400 AND AUSTRALIAN FINANCE GROUP JOIN FORCES The partnership is expected to dramatically expand the neobank’s distribution network, making its digital mortgage offering widely available to brokers 86 400 has announced its new partnership with the Australian Finance Group.

86 400 initially launched with a “small, controlled” group; soon, one in three mortgage brokers within Australia will have access to its home loans.

As of 10 August, the more than 3,000 brokers in the AFG network will be able to provide 86 400’s fully featured ‘Own Home Loan’ products to their customers – the first and only digital mortgage offering for brokers in Australia, enabling digital verification of identity, digital collection of expense and income information and all electronic signatures.

NEOBANK

“Brokers and customers want an application experience that’s easy to use and a process that gets them a decision quickly, giving both the broker and customer certainty and peace of mind, and that’s what we’re delivering through our digital solution,” said Robert Bell, CEO of 86 400.

“Partnering with AFG allows us to continue to help more Australians and more brokers realise the benefits of the 86 400 home loan.”

The neobank has sought to directly address some of the biggest pain points for brokers, such as digital accreditation and innovating a more equitable clawback provision with a

step-down process. The group has also stressed that it can provide brokers with a yes or no decision in just a few hours, in contrast to the lengthening turnaround times being experienced elsewhere.

86 400’s Own Home Loan one-year fixed rate for an owneroccupier principal and interest loan currently sits at an all-time low of 2.24% per annum (two-year fixed comparison rate 3.02% per annum).

AFG head of sales and distribution Chris Slater has welcomed 86 400 to the group’s lender panel.

“One of our core values over the last 26 years has been supporting our brokers to bring competition to the market, and the team at 86 400 are very passionate about competing, so they’ll fit in very well at AFG,” he said.

“We will continue working closely with our brokers and funders like 86 400 to give them the best possible chance to compete for business.”

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FE AT URES

BUSINESS VIE W

ADAPTING TO THE NEW NORMAL

After a volatile start to 2020, which capped off an already tumultuous couple of years in the mortgage world, we sat down with PLAN Australia CEO Anja Pannek to find out: what is the ‘new normal’ in broking and lending, and where do the biggest opportunities for brokers lie?

PLAN AUSTRALIA: KEY HIGHLIGHTS OF 2019



High levels of member satisfaction (NPS of +40 in 2019)



Market-leading training and education program focused on the changing regulatory environment



17 PD events in a year, delivering digitally and face-to-face, with a total of 3,030 attendees



Launch of new event series PLAN Your Next Move for residential brokers wishing to move into commercial and asset finance



Launch of Listen In, a series of meetings between PLAN CEO Anja Pannek and small groups of members to hear feedback that will shape the aggregator’s business strategy and broker offering



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Extensive Podium training program to support the rollout of new features that make the system more efficient and customer-centric

you roll back to the start of the year or even to 2019, one thing was already clear about the broking industry, argues PLAN CEO Anja Pannek: it is nothing if not ceaselessly resilient.

“When you consider the challenges of the last year, from the scrutiny of the royal commission to the biggest regulatory change in a decade, that was really unsettling for a lot of people. Then you factor in the bushfires and a global pandemic, and these truly are unprecedented times,” Pannek says.

“I think this is something all of us will learn and grow from and that will become absolutely core to the broker and their business in the future: this resilience and the ability to continue to be adaptable and change with the times.”

It’s always been the case that the most effective and successful brokers are those who don’t just react to current conditions but proactively plan ahead to prepare for a range of different outcomes.

Of course, no one could ever have predicted a pandemic would be thrust upon us, but that element of the unknown is part and parcel of running a business, Pannek says.

“In the economy, there will be things that we would never expect to happen thrown at the industry, and your business has got to be adaptable,” she says.

“When you’re running a broker business, now more than ever, it’s critically important that you spend time thinking about different scenarios and how your business could evolve and how you’re engaging with and supporting your customers. What is your business IF

plan and succession plan? How are you diversifying? Amidst all of this change and certainty, what can you be doing to improve your operations? Are you regularly communicating with all your customers? What more can you do in the current environment to support them? I am one to say ‘never lose sight of a good opportunity’, and depending on the mindset you’ve got, right now there are many opportunities to diversify and grow your business.”

This is not to downplay the very real and challenging situations many brokers have

rather than getting too lost in the bigger picture.

“You have to focus on your controllables. There’s so much uncertainty, and it’s difficult to plan in that type of environment; it’s very easy to get overwhelmed.

But there are some fundamentals in broking that hold true, and we keep coming back to those with our professional development programs, which we do with our members,” she says.

“It starts at the very foundational level of: do you have a business plan? Do you actually understand the key drivers in your business,

“Brokers play such a critical role in helping customers understand policy and structure their finances, so it’s key to your success and growth to stay connected to your customers” found themselves in over the past six months. Since the onset of the pandemic in March, brokers have been under pressure from all angles – internally, in managing their own staff and keeping their own business afloat, while also assisting their clients who are financially stressed.

How can those brokers who are really struggling with these challenges pivot their businesses to adapt in a post-COVID-19 world?

Pannek advises that this is the time to focus on only those elements that you can control,

and are you clear about your customer value proposition?

Where are your biggest costs coming from and what can you do differently? What type of work are you doing around referral partners?

These are all areas of your business that are in your control, and you can effect really significant change by focusing here.”

It all comes back to the concept of working in your business rather than on your business, Pannek says.

When you can step back and look at the business from a broader, more holistic point of view, you

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In partnership with

Anja Pannek, CEO, PLAN Australia

“At the heart of it, there’s quite a bit of friction involved in getting a consumer to be assessed by a lender, and a broker plays a big role in managing that friction” can then become clear on where you are right now and where you aim to be.

“The changes you implement at that point could be dramatic.

If you’re on your own, you could

decide to go and work with another group or start a new partnership.

Or you might reinvigorate your referral partners. It could be as simple as reviewing your CRM so you’re really clear on who your

customers are and what are their needs,” Pannek says.

“Brokers play such a critical role in helping customers understand policy and structure their finances, so it’s key to your success and

growth to stay connected to your customers and keep them informed so you become that trusted voice amidst a lot of mixed messages about the broader economy.”

Whatever way you slice it, there’s no denying that COVID-19 has had a massive impact on the way brokers do business. As Pannek points out, however, it’s not necessarily all bad; in fact, there are certain clunky aspects of the mortgage and finance industry that may be left behind for good www.brokernews.com.au

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following the pandemic.

“Brokers already had a competitive advantage because many of them worked with customers right across the country.

But now, with greater flexibility in terms of how people can work and how they are now prepared to interact with important advisers to make financial decisions, many of those geographical barriers won’t be considered barriers any longer,” Pannek says.

“Because many brokers are already accustomed to delivering a flexible service, many of our members stepped immediately and seamlessly into digital means of communication. I really hope that we continue with that, because it gives brokers the ability to scale their businesses.

“There’s always a role for face-to-face discussions, but everyone should be challenging themselves in terms of how they can be really effective with some of these digital transformations that allow us to connect more freely.”

Advances in technology are creating opportunities in myriad ways, with respect to communicating with clients and marketing to customers. They also pave the way for more effective and meaningful analysis and use of CRMs – something that has been a strategic focus for PLAN. “We have invested significantly in Podium, using it to its full extent for every part of the customer journey, to help our brokers identify customer needs, to segment customers and allow a more meaningful level of service,” Pannek says.

“We’ve seen a continued shift towards putting the customer right at the core of everything we do. When broking first started it was a transactional sport, but now it’s very much about brokers developing relationships over the long term with their customers.

We have this opportunity to truly innovate, and with lenders addressing processes and open banking, and at the same time new regulation is being introduced, we’re absolutely seeing a pivot towards customer-centricity.”

In terms of looking forward, Pannek says the introduction of the Consumer Data Right (CDR) is set to influence how customers interact with brokers, along with 16

the services they expect brokers to provide.

Open banking is essentially about consumers sharing their data, including both transactional and lending data, and has the potential to reimagine the entire loan processing experience.

“At the heart of it, there’s quite a bit of friction involved in getting a consumer to be assessed by a lender, and a broker plays a big role in managing that friction.

It’s the role of the broker to help the customer through the stress and uncertainty of that. With

improvement in turnaround times.

“We’ve seen to some extent in Australia that data aggregation platforms will help consumers get more educated around what’s out there and what they should be going for. But one thing that’s really important with open banking, and will be legislated in due course, is that brokers will be able to work with aggregators to work it into their business processes,” she says.

“We’ve got some members who already use digital means, and they’re already starting to work

“Because many brokers are already accustomed to delivering a flexible serving, many of our members stepped immediately and seamlessly into digital means of communication” open banking and the ability to quite freely share data, it’s going to enable brokers to help their customers make the best possible decisions based on a full set of data,” Pannek explains.

“It’s not about verifying bank statements; it’s about working with your customer to ensure they’re in a great product that meets their needs now and in the future.”

With advances in technology and these regulatory changes, Pannek expects processes around ID verification to get easier, and this should lead to an

with their customers and almost make them CDR-ready. It’s all about building trust from the customer’s perspective and getting them to the point where they say, ‘I trust you; I trust you to share my information. You’ve proven that I can count on you’.”

With so many different changes to keep up with now – compliance and regulation, the best interests duty, open banking, conflicted remuneration, and the expectations of regulators – how can brokers stay on top of everything going into 2021?

Pannek says her key piece of advice to brokers is to “stay absolutely connected to your aggregator and partnership manager, because all of us in the industry have been working very closely” on preparing the industry for these changing times.

“It’s important to stay connected to your industry bodies as well,” she adds.

“Post royal commission, it’s about shaping the regulation so that it’s landing in a way that helps to build a really resilient, stable industry.”

No brokers should feel like they’re in this alone, Pannek says, as there are many resources and programs available that can help them engage with these changes and adopt them into their business models.

“At PLAN, we’re reshaping Podium to help brokers and guide them through the experience of BID so our members feel confident that they’re meeting the obligations of the law.

“We are also rolling out national webinars, e-learning and peer-to-peer learning platforms, as some of the best learning comes out of learning from your peers, and we’ve long recognised that,” Pannek says.

“We’ve got some exciting stuff we’re launching later in the year around business diagnostics and comparing your business against others in the market across the PLAN membership. We’re really excited about launching this and providing this value to our members.” AB

PARTNER IN PROGRESS



As a Partner in Progress, PLAN Australia is committed to supporting members in adapting their businesses to grow in a post-COVID-19 world.



“For a number of years, we’ve run professional growth programs, and in 2020 we’re working with a number of businesses over a two- to three-month period to really get to the foundation of their business,” says PLAN CEO Anja Pannek.



Key areas of focus include: What are the economics of your business? What’s the mindset you need to adapt in an uncertain environment? How can you survive and thrive amid ongoing change?



“It’s really about dealing with the broker as a business owner,” Pannek says, “and engaging in a business conversation in a really positive way.”

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PEOPLE

Have an interesting deal?

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

sarah.megginson@keymedia.com

BIG DEAL For Jason Pateow, assisting clients in obtaining finance is about far more than finding the lowest interest rate. Rather, it’s about executing a financial strategy to suit the client’s needs – and explaining that a higher rate may be worthwhile in the long run THE FACTS

Client: Married couple with two kids

Loan size $1.3m

Goal To purchase multiple investment properties and optimise cash flow

Location Melbourne

Aggregator Vow Financial

didn’t fully understand how the property’s cash flow would impact future purchases.

Not happy that they were required to contribute additional funds due to the low valuation, they sought a second opinion.

THE SCENARIO

My team was approached by a couple who were first-time mum-and-dad investors looking to set themselves up for a comfortable future. They had previously tried to obtain finance through their own bank, but it hadn’t worked out, which is when we got involved.

They had solid financials with few debts, but they also had two dependants and a large mortgage. Their home had some equity in it, but they were cash poor, having put their children through private school. They had already paid a deposit on an investment property in Melbourne and wanted to buy another investment property in Brisbane.

The couple were keen to grow their portfolio and set themselves up financially for the future by buying a few investment properties to hold for the long term.

However, their cash flow was already very tight, and they didn’t want to add any additional strain to it.

Their primary goal was to pay off their own home as soon as possible, and they planned to fast-track this by investing in property and using the growth in value to ultimately pay down their own loan.

They had advised their previous broker that they wanted to stay with their current lender. Their broker ordered a valuation on their home and the Melbourne property.

Both came in lower than expected, and serviceability and funds to complete came up short for the second purchase.

The clients were disappointed that they couldn’t build a portfolio like they’d hoped.

They were concerned about the negative cash flow and the impact it would have on their finances if they proceeded with the deals based on the low valuations, and they

Lenders NAB and CBA

THE SOLUTION

The clients reached out to us, and our team looked into their situation. We created a property profile report to support a higher valuation, and arranged for two more valuations with two separate lenders to be done on the couple’s home. Fortunately, this resulted in higher valuations and enabled them to release more equity.

indicated to the clients which bank would be best suited to their situation.

The two investment purchases were structured as standalone debts using the equity release to cover costs but also to provide a buffer. This approach enabled the clients to purchase two investment properties. It also meant they had enough surplus equity to cover any holding costs for the properties so they could avoid having to use their personal savings.

Valuations can vary greatly between lenders, and borrowers aren’t always aware of this. We were pleased to achieve this result on behalf of our clients and give them peace of mind. The cash flow positive purchase also balanced out their portfolio, resulting in a neutral cash flow portfolio, eliminating some of their cash flow worries.

THE TAKEAWAYS

As the clients’ primary objective was to build a property portfolio to set them up for a more secure financial future, it was important to first educate them about the different aspects of finance and how it could impact their ability to grow their portfolio in the future.

We explained how banks lend money, how they analyse loans based on their servicing considerations, as well as the big advantage of prioritising strategy over loyalty to a particular lender or interest rate.

Many novice investors will approach

While the clients were keen to set themselves up financially for the future, their cash flow was already very tight, and they didn’t want any additional strain

Jason Pateow Mortgage broker and managing director, AllianceCorp

We presented the new package to the clients, including the valuations and fees.

We explained the benefits of refinancing to a new bank – and the fact that the lender had a $2,000 cashback offer that would cover all the refinancing costs and more definitely helped.

Through the process of working with us, the clients gained a stronger understanding of the way a property’s cash flow impacts future borrowing capacity. They targeted a cash flow positive property with a delayed settlement to assist with servicing. Multiple valuations were ordered in advance for the two investment properties, ensuring we had valuations on the dollar. Then we

finance with a homebuyer’s mindset; that is, they want to get the lowest interest rates, and they prefer to work with lenders they know. But investors are generally better off focusing on how they can structure their finance to support multiple purchases.

This includes getting the best valuations, placement and structure of deals and understanding how property selection and thus cash flow impacts servicing.

Having cash readily available is important to most people. Simple strategies to release as much equity as possible, with sufficient buffers in place, go a long way in protecting clients as they grow profitable portfolios. AB www.brokernews.com.au

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NE WS ANALYSIS

WILL SEPTEMBER DELIVER A ‘FISCAL CLIFF’?

With JobKeeper and JobSeeker due to end in their current format in September, many have warned of the ‘fiscal cliff’ on the horizon. Are we genuinely approaching financial doom? Moreover, for those who have weathered the storm financially thus far, is this an opportunity to actually build wealth?

THE FISCAL CLIFF

240,000 Number of businesses in tourism and professional services that are at high risk of failing during the September ‘fiscal cliff’, when wage subsidies are set to end, according to economists at Deloitte

220,000 Number of business loans – worth over $60bn – that Australian banks currently have on loan repayment holidays.

As the clock ticks down to September, analysts say the risk of foreclosures will rise

40% Just over one third of businesses across hospitality, professional services and transport say they have cash to last them for less than three months of operations, Deloitte reports

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has been much talk and speculation about the fact that many of the government stimulus packages and loan schemes are due to run out in September, prompting the term “fiscal cliff ” to gain momentum.

But is it really likely that the Australian economy will grind to a halt in September, precisely six months after the pandemic began to wreak havoc across the country?

Or is it more likely to be, as economist Shane Oliver argues, a “fiscal slope”?

“The thought of various government support measures expiring in the months ahead, causing some sort of fiscal cliff over which economies and share markets will plunge, has caused much consternation,” says Shane Oliver, chief economist at AMP Capital.

“But as with the original fiscal cliff of December 31, 2012, in the US, it’s likely to be tapered into a fiscal slope, particularly with so-called ‘second waves’ of coronavirus reaping havoc with the economic outlook. Of course, this will add to the public sector’s debt burden associated with the coronavirus shock, in turn adding to concern about some sort of fiscal day of reckoning down the track.”

While it made sense for many of the expensive coronavirus government support measures to expire at the end of September as initially planned, it is “increasingly clear” that support will be needed for a more extended period, Oliver explains.

This will be largely driven by the ongoing escalation of a second wave of COVID-19 cases THERE

David Hancock, director and senior financial planner, Montara Wealth

“For good-quality investments such as blue-chip shares or property, a market that is affected by panic can be a great opportunity for the savvy investor to take advantage of ” David Hancock, director and senior financial planner, Montara Wealth throughout Victoria, which has seen the state government return Melbourne to a ‘stay-at-home’ six-week lockdown.

This will inevitably slow the economic recovery. AMP Capital forecasts an estimated direct impact on the Australian economy at around the $5bn mark, a figure

substantial enough to knock around 1% off GDP this quarter.

“There is a high risk that this will impact confidence in other states as people self-isolate, and that other states may also return to a lockdown if cases spread, with NSW most at risk,” he says.

“With social distancing

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Shane Oliver, chief economist, AMP Capital

requirements and travel restrictions in place, it will also take much longer for some industries – travel, events, culture, accommodation, restaurants and housing construction – to get back to normal than others.”

With private sector spending hit

by COVID-19, it makes sense for the government to continue to help fill the gap and support the economy, which it has confirmed by way of an ongoing yet adapted JobKeeper program and an increase in the value of loans offered through the government-backed SME guarantee scheme – with loans now available for up to $1m each.

With an Australian recession most likely set to become a reality, many are understandably proceeding with caution. However, David Hancock, director and senior financial planner at Montara Wealth, argues that now is an optimal time to focus on building wealth in the short to medium term.

“In the past, many investors have not only weathered the uncertainty of recessions, but they have also actually made money during recessions,” he says.

“Generally, a good strategy is to buy and hold for the long term.

For good-quality investments such as blue-chip shares or property, a market that is affected by panic can be a great opportunity for the savvy investor to take advantage of and pick up quality investments at a reduced cost.”

This could be an opportunity for brokers who count a fair chunk of investors in their database to review

Simon Pressley, head of research, Propertyology

these clients’ financial situation and get an overview of the options available to them, should they decide to pursue a property investment opportunity in this market.

Of course stability of employment here is key.

“If you’re interested in investing during a downturn, you need to be in the best possible financial position to do so. This is about asking questions like: Do you have sufficient cash flow and buffer? Is your income likely to be disrupted

advantage of opportunities during a recession are generally in a better savings and cash flow position than others. Again, the key is to understand the risks and what level of risk you’re comfortable with, and invest accordingly.”

One of the major uncertainties that could dissuade investors from taking the plunge on a property asset purchase right now is the risk of the tenant not paying their rent due to COVID-19-related financial pressure.

“As the nation progressively opens up and household incomes improve with it, large parts of Australia will have intense pressure on rents in the near term” Simon Pressley, head of research, Propertyology during a recession, or are you in a stable position with savings in the bank to take advantage of investment opportunities?”

Hancock says.

“The goal when investing during a recession is to find discounted or bargain investments with long-term potential, such as blue-chip property. It’s all about striking the balance between picking up an investment cheaply without taking on too much risk. Of course everyone’s situation is different, so those who are able to take

However, Simon Pressley, head of research at Propertyology, says many cities and suburbs across the country continue to see demand from quality renters.

He adds that it’s a matter of looking at markets outside of Sydney and Melbourne to find investment opportunities that show promise, and that have tight rental markets to match.

Generally, it’s considered that a vacancy rate below 2% suggests a tight rental market in which median rents are rising. A market

with a vacancy rate below 1% is ridiculously tight.

Contrary to the current situation in the inner-city rental markets of Sydney and Melbourne, where markets are in a technical ‘oversupply’ situation, with Sydney at 3.8% vacancies and Melbourne at a 3%, the rest of Australia currently has the tightest housing supply conditions in more than a decade, Pressley says.

“As the nation progressively opens up and household incomes improve with it, large parts of Australia will have intense pressure on rents in the near term,” he says.

“Right now, 39 out of 52 Australian towns – or 75% of the country – currently have an undersupply situation. Nine locations have a balanced market, and the remaining four are oversupplied: Sydney, Melbourne, Gold Coast at 4%, and Geelong at 3.5%. Large parts of Australia have seen several consecutive years of low volumes of properties purchased by investors, and as local demand continues to rise, the pressure continues to push rents and yields higher.”

According to Pressley, areas from Wollongong to Coffs Harbour to Orange and several other locations in NSW have very tight rental markets. All areas in Queensland, from Toowoomba to Townsville, are under intense rental pressure, and “almost every Victorian location outside of Melbourne, the entire state of Tasmania, and the rental market of every location in Western Australia is currently under pressure”. AB www.brokernews.com.au

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BUSINESS VIE W

TODAY’S BIGGEST TRENDS IN SPECIALIST LENDING

While the COVID-19 pandemic has had a powerful impact on the banking and finance sector, specialist lending has been a source of stability for many Australian borrowers. We explore the biggest trends driving this market, now and over the next 12 months

PERFORMANCE OF AUSTRALIAN MORTGAGE MARKET

81.2% Major banks’ market share of residential mortgages

3.4% Drop in majors’ total market share since 2013 (from 84.6% to 81.2%)

1.8% Combined growth in major banks’ mortgage books in FY2019

3.1% Total system loan book growth, including non-bank lenders and mutual banks

Source: KPMG Full Year 2019 Results Analysis

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we prepare for the possibility

AS that the coronavirus

pandemic may continue for longer than first anticipated, it’s become essential for brokers to find flexible ways to support customers’ lending requirements.

With many banks and lenders adjusting their application assessment methods, borrowers may be finding it difficult to source the right finance, even if their circumstances remain unchanged.

As a result, we are seeing an uptick in the number of customers opting for specialist loans for all kinds of purposes.

“Customers are becoming increasingly aware of the benefits of specialist lending, and there is a greater understanding of how a specialist loan can support their varied needs. Those who have been affected [by the pandemic] may be looking for more flexible ways to manage their finances, or for better ways to tackle their existing debt. For brokers, these kinds of scenarios provide a real opportunity to help people in very meaningful ways,” explains John Mohnacheff, Liberty’s group sales manager.

“With increased uncertainty, it is more important than ever for borrowers to have the guidance and support of a trusted broker.

This enables brokers to help customers through challenging times and build strong professional relationships, as many borrowers may now need the help of a specialist solution, which creates opportunities for brokers to

support their lending needs.”

As borrowers adapt to what has been described by many as the ‘new normal’, it’s likely that appetite for credit will remain strong. The mortgage market is already demonstrating an increase in applications – a trend that is likely to continue as more of Australia gets back to business.

Daniel Carde, general manager distribution at Resimac, says this increase is just one of several major trends in specialist lending at the moment.

“There has been an uptick in

which are not relevant to their current circumstances.”

Carde says Resimac hasn’t changed its pricing or credit policy and hasn’t targeted any specific industries, but the lender has found that not all borrowers in affected industries have been impacted in the same way. Therefore, case-by-case assessments have remained the best approach.

“Many impacted employers have retained employees and redeployed some of their workforce into new roles that have become necessary due to a change in their business

“With increased uncertainty, it is more important than ever for borrowers to have the guidance and support of a trusted broker” John Mohnacheff, group sales manager, Liberty debt consolidation and growth in self-employed applications in certain sectors as borrowers take the opportunity to review their lending requirements in the current environment,” he says.

“In addition, the majority of borrowers for specialist products are consistently meeting our definition of ‘clear’ credit. Many of these borrowers either have no impairment or have historical impairments that are either quite dated or are for small amounts,

model. For example, some retailers have shifted their businesses to an online model and redeployed their shop-floor staff into order fulfilment roles,” he says.

The agility and flexibility that specialist lenders hold in being able to approach each deal on a caseby-case basis is one of their core strengths and has allowed them to offer greater support to borrowers and brokers during the pandemic.

In fact, Cory Bannister, chief lending officer at La Trobe

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John Mohnacheff, group sales manager, Liberty

Financial, says the last couple of years have given both specialist lenders and brokers alike the opportunity to introduce consumers to a viable option that doesn’t involve the big banks.

“The biggest single trend in specialist lending, which has been unfolding for two years, has been the persistent tightening of bank acceptance criteria, which has caused much consternation, confusion and uncertainty for many brokers and approval delays for consumers. This in turn is driving more business to brokers and validating the broker to non-bank value proposition,” Bannister says.

“As a result, today’s specialist borrowers were likely to have been the bank prime borrowers of the past decade, a time in which banks moved up the loan risk curve into what had been traditional non-bank or specialist market segments.”

Currently, the major banks appear to have a lower risk appetite and are pursuing a much narrower and borrower-specific segment of the market: the ‘prime vanilla’ home

loan – a segment that “can be scaled en masse”, Bannister explains, due largely because highly automated credit processes require very little human intervention or oversight.

“This leaves a large segment of the $360bn annual demand

Cory Bannister, chief lending officer, La Trobe Financial

“The coronavirus has become one of history’s most economically disruptive events, and although governments and regulators across the world have acted quickly, and in force, to minimise its economic effects, the residual impacts

“Today’s specialist borrowers were likely to have been bank prime borrowers of the past decade, a time in which banks moved up the loan risk curve” Cory Bannister, chief lending officer, La Trobe Financial turnover of the residential mortgage market overlooked – and this overlooked sector is a natural market [for specialist lenders].

We’re well positioned and ready to assist this market, as we have for more than seven decades,” Bannister says.

on individuals, businesses and economies are still evolving and are highly uncertain. What we do know is that the appropriate provision of credit to the broader economy will be a key and critical lifeblood throughout the rebound and recovery phases. Specialist lenders

are best suited to providing credit throughout this period, thanks to the custom nature of our credit assessment methods.”

While the leading attitude at the moment is one of positivity and optimism, and Carde says Resimac is “typically seeing the same type of specialist applications that we saw before the pandemic arrived”, he adds that we haven’t yet seen the full impacts of the pandemic, due to economic stimulus introduced by the government, as well as lenders’ assistance packages.

“Specialist lending is countercyclical, so when the economy slows, borrowing in the product class picks up. Given this, we expect to see an uptick in specialist lending as the ongoing economic implications of the pandemic begin to take hold,” Carde says.

“For lenders willing to invest in technology the pandemic has provided an opportunity for innovation. For Resimac, COVID-19 motivated us to fast-track solutions that we’d been www.brokernews.com.au

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OPPORTUNITY FOR BROKERS

60%

Mortgage brokers have a 60% share of the residential lending market

5% Mortgage brokers have just a 5% share of the commercial lending market

The opportunity for brokers to diversify is enormous Source: MFAA

Daniel Carde, general manager distribution, Resimac

working on for some time, such as our digital document delivery system and remote ID verification, which has enabled us to provide a full end-to-end digital solution for brokers. It’s also demonstrated the strength of our processes.

Throughout the pandemic we’ve been able to maintain turnaround times, while volumes have remained strong.”

This is also the ideal time for brokers who haven’t yet dipped a toe into the specialist lending pool to consider adding this to their product suite, says Mohnacheff.

“If a broker has not yet delved into specialist lending, now is the perfect time. With an increased need for more tailored solutions, having these custom offerings is going to help you build your business and help more customers.

Liberty has the largest BDM team of all non-banks, eager to assist any broker through their first – or even just a particularly tricky – loan scenario. Brokers also have direct access to our team of underwriters, 22

so they can have the confidence that any scenario will be responded to swiftly,” he says.

“We know that not all customers fit the same box, and there are many reasons why a customer

flexibility and greater choice.”

Looking ahead at the next six to 12 months, it’s impossible to predict how the mortgage market will evolve, and Cory Bannister admits that it will “present

“There has been an uptick in debt consolidation and growth in self-employed applications in certain sectors as borrowers take the opportunity to review their lending requirements” Daniel Carde, general manager distribution, Resimac might be better suited to a specialist loan. Whether they have been directly impacted by COVID-19 or perhaps had a change of circumstances, a specialist loan can provide them with

challenges for many, particularly in relation to their finances”.

“But we know that Australians are incredibly resilient and often just need someone to lend a hand through difficult periods. This

is where we anticipate a further increase in demand for specialist lenders,” he says.

“It is unlikely that major banks will reverse their long-term ‘simplification’ trend that has seen them focus on ‘vanilla’ home loan borrowers. For clients that have been directly or indirectly impacted by the COVID-19 pandemic, they will need to seek the support of a specialist lender who will take the time to fully understand their unique position and provide an appropriate tailored solution to meet their objectives and requirements.”

Carde adds, “The pandemic is ongoing for many Australians; however, lenders are still lending.

We’ve seen lenders take different approaches, and as government stimulus is amended and potentially withdrawn we will see credit policies continue to evolve.

We could see banks and non-banks extend hardship measures to customers if the impacts of COVID-19 continue for a longer period, putting individuals and small businesses under more pressure. Whatever lies ahead, our case-by-case common-sense approach will continue to allow us to quickly respond to any changes.” AB

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OPINION

DOING BUSINESS AROUND THE KITCHEN TABLE Agriculture continues to be a growth sector with a clear need for trusted advisers who understand the increasing complexities of farming and can navigate their clients through the good as well as the inevitably difficult times, says NAB’s Chris Thomas

many would argue that 2020 has been an annus horribilis for Australia’s agricultural sector – from the worst bushfire season on record to floods, the outbreak of the COVID-19 pandemic and ongoing trade tensions – the sector has remained one of the nation’s brightest lights.

Overall, the outlook in the agricultural sector is, and will continue to be, a very positive one. The impact of the current crisis is likely to be much lower than in most other parts of the economy. That being said, some areas of agriculture are likely to fare much better than others.

I recently spoke to Gus Pettitt, Victorian-based agri broker and partner at Nimbus Agri and Commercial Broking and Advisory, who said it had been business as usual for many of his clients.

He noted that significant widespread rainfall, strong commodity prices and increased consumer demand for staples like grain and red meat had been propping up optimism and they were likely to remain more resilient than premium produce. Meanwhile, areas like wool and cotton had been affected by the downturn in discretionary spending.

Seasonal fluctuations in the agricultural sector can have a devastating impact on the credit quality of clients, and therein lies a huge opportunity for brokers to work alongside their clients as trusted advisers. Furthermore, this is where working in partnership with a lender who truly understands the sector has its benefits. As Australia’s largest agricultural bank, NAB provides almost one third of lending to Australian farms.

Another challenge confronting agri brokers is putting down business foundations in rural Australia. Naturally, residential brokers who diversify into commercial require an enhanced skill set and business acumen. However, for brokers diversifying into agriculture, the barriers to entry are higher, requiring a background in both agriculture and agri finance.

To help brokers overcome these barriers, NAB facilitates regular seminars in its business banking centres, almost half of which are in rural and regional Australia; these unpack complex financing options such as trade and invoice financing.

Before opening his own business, Gus was an agri banker for more than a decade. He said the agricultural sector didn’t have a long history of broker support, and educating farmers on the value brokers bring to their business was essential. With such low penetration came good growth opportunities.

Farms are undergoing a ‘productivity revolution’ – a trend that is set to continue.

WHILE

finance to succession planning.

Word of mouth is important to residential and commercial brokers.

However, it takes on an elevated significance in the agricultural sector.

In fact, it is the most powerful marketing weapon to secure new business.

In this space, brokers have an even more intimate relationship with customers; they get to know not only the structure of their businesses but their families too. Gus says it is not an unfamiliar scenario for brokers to do business around the kitchen table.

Where reputation is everything, agri brokers and bankers must have their ears to the ground and truly understand how

Seasonal fluctuations in the agri sector can have a devastating impact on the credit quality of clients, and therein lies a huge opportunity for brokers as their advisers

Chris Thomas General manager, commercial, NAB

Technology is playing a big role in making farms more efficient and helping farmers navigate the challenging external environment. For brokers in the space, this is where some of the major funding opportunities lie as farmers increasingly look to invest in cutting-edge technology to protect their farming practices.

As farming businesses continue to grow and become more complex, farmers need to ensure their attention is squarely on their business. Therefore the value of a trusted adviser in this space cannot be overstated.

Indeed, broking businesses serving the agriculture sector are well advanced and switched on to local conditions and their communities. Gus describes himself as a “one-stop shop” for many of his clients, who come to him for various financial solutions, from asset

what happens on the farm can have a flow-on effect on the local community, which relies on the farm’s viability for produce and employment.

Diversifying into agriculture may not be for everyone, but there is significant reward and satisfaction for brokers who take the time to invest in the necessary skill set. After all, our rural and regional areas are not only an important part of Australia’s identity but are integral to our continued growth as a nation, contributing around 30% to GDP. Looking forward, we expect this sector to continue to thrive despite current tough conditions. Brokers will play an increasingly essential role in building a more dynamic rural and regional Australia, delivering tailored on-the-ground support and helping the sector remain viable for the long term by leveraging technological innovation. AB www.brokernews.com.au

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Get involved in the discussion Share your thoughts at

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FROM THE FORUM

Top comments from trending stories on brokernews.com.au

BANKS DROP THEIR INTEREST RATES, BUT AT WHAT COST?

ANONYMOUS BROKER TAKES CENTRE STAGE

A number of banks and lenders have been introducing record-breaking, historically low interest rates for mortgage products. Reduce Home Loans announced a market-leading variable rate product at 2.19%, down 0.20% from its previous resting point of 2.39%.

This special offer is for owner-occupier customers on variable rates with loans up to $850,000, and is available for loans approved by 31 July. Westpac’s Flexi First Option Home Loan offers a new low rate of 2.69% for loans with an LVR below 70% (down from 2.93%), and 2.79% for those above 70% LVR (down from 3.03%). Perhaps the most attention grabbing of all was Bank of us and its 1.99% home loan offer – the interest rate special is available for one-, two- or three-year terms and up to 90% property value, though this is only available to Tasmanian residents. Such attractive rates may drive interest in these loans from brokers, but as brokers on our forum argued, are they really the best deals for customers?

In a bid to facilitate more open dialogue within the industry, an aggregator has announced the launch of a new blog to be penned by an anonymous broker. The author of Choice Aggregation Services’ monthly ‘Insiders’ newsletter will be known simply as Broker X. According to Choice CEO Stephen Moore, the concept was designed to fuel honest and transparent conversations among the broader broker network, so any industry participant can subscribe, rather than the resource being made exclusively available to Choice brokers. Moore is the only person, even within the Choice organisation, who knows Broker X’s identity – anonymity that is “essential to Broker X’s purpose and appeal”.

“Broker X is a pretty bold character who is not afraid to tackle issues that are divisive or controversial,” Moore said.

“But they also know how to keep a secret when it matters!

It will certainly be interesting to see responses to this.”

Sure, this is one thing. But how about making it clear that the variable rates being offered by these lenders on these basic products are unsustainable bait-and-switch offers – and customers will find out later that their rate has been insidiously increased over time and is no longer market-leading?

24

This seems … bizarre. There’s nothing guerrilla about it, given it’s endorsed by the CEO! Why not leave the anonymous whinging to the comments section in the industry publications? Yes, irony is not lost on me...

Way to go

Is it Ken Hayne or Matt Comyn?

Peter

Scott

It’s all fine until you realise their turnaround times are crap and will get worse.

Great initiative and love the name. Well done – very refreshing approach.

Coast Broker

Stuart

I have one client doing a refi at a big four bank, and they’ve been stuck in the review pipeline for almost three months.

Straightforward vanilla loan – but they’re so understaffed and overwhelmed the turnaround times are nuts. Never seen anything like it. The client has actually asked me for a $2,500 compensation payment to make up for all the lost interest savings!

Well, at least the aggregator has realised it can’t get qualified feedback from its brokers, but releasing an anonymous blog is interesting. It’s monthly, yet the PR states it will reflect real-time issues ... being monthly, it can’t be real-time – not in our industry that changes daily. I do wish you all the very best with this.

Jo

Ed

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3/08/2020 4:36:40 PM

PEOPLE

Do you have a question for our broker mentors?

Email your question to:

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BROKER ON BROKER

Canberra-based mortgage broker Deanna Ezzy from More Than Mortgages jumped swiftly into action when the coronavirus pandemic hit, giving her staff a six-month survival plan to come out the other side of COVID-19 in tip-top shape

In March and April when lockdowns began and restrictions set in, it was a very uncertain time. What action did you take to reassure your staff and put a foundation under your business?

I immediately updated my A business plan over the following six months, and the very first point was this: “Don’t worry”.

I decided we would do whatever we were told to do – such as work from home if there was a lockdown, wash hands more often, use sanitiser, stay inside on the weekend, do less socialising, have video meetings, etc.

At the end of the day, everything that’s going on around the world is out of our control. I know that if I worry and get anxious about ‘what might happen’, all this will do is rub off on my staff, and also onto our clients. That, more than anything else, is what will impact our revenue.

Q

Did you recognise any opportunities within the chaos, or was it all about business survival?

I could see that people would A need cash flow now more than ever, and that’s where the opportunity to provide value really was. Getting our existing (and new) clients the lowest interest rates possible could really help people.

We had one client who we were able to help. By refinancing, we dropped her loans from interest-only at a variable rate of 4.14% to one-year interest-only fixed at CBA at 2.89%.

Q

Deanna Ezzy (centre) and her award-winning team at More Than Mortgages

“If I worry and get anxious about ‘what might happen’, all this will do is rub off on my staff, and also onto our clients” It’s going to save the client almost $25k every year.

Has refinancing made up the bulk of your business over the pandemic period?

We placed a huge focus on A existing clients and doing loan reviews. There continue to be a lot of refinance opportunities, given the

Q

super-low rates and high refinance rebates on offer. We also focused on helping those who were buying. I have been telling people it could be a great time to buy over the next six months as prices may come down for a period of time. It’s better to get yourself finance-ready now; then you can swoop in and snag yourself a bargain in a few months’ time.

How have you kept your staff motivated during such a difficult period of constant change?

I came up with a really A detailed plan outlining their roles as our business shifts. This is a time when we need to be creative and inventive. So I laid out a roadmap of what we could do if loan volumes dropped and we had time for other things, such as writing a blog about the trends we’re seeing with lenders, processing times and client questions; becoming more active on social media pages; doing more video content; updating our training manual; and other strategies to stay busy and productive. AB

Q

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

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3/08/2020 4:37:30 PM

DATA

QUEENSLAND

ACT SPOTLIGHT

Brisbane could defy the market downturn with growth projected for the year ahead Brett Warren, director of Metropole Property Strategists in Brisbane, has said that while there are “some serious headwinds” on the horizon, there are factors that are likely to support prices in the Queensland capital.

“From First Home Buyer Grants to construction incentives and even talks about abolishing stamp duty have been on the cards. Whatever may happen moving forward, all forms of government will make this a priority as they always have,” he said. The creation of more than 50,000 jobs with the transformation of Brisbane’s central business district is also expected to keep property prices afloat.

“In superior locations, more people are lucky enough to have not been affected as much by the current financial environment and will likely get through the next hurdle relatively unscathed.

They are predominantly homebuyers – driven by cheap interest rates and combined with solid employment grounding [they] are taking a longer-term approach,” he said.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$545,000

0.0%

0.9%

$420

4.0%

Metro (U)

$385,000

0.0%

0.8%

$390

5.2%

Country (H)

$433,250

-0.9%

0.7%

$400

4.7%

Country (U)

$373,000

0.7%

0.0%

$360

5.0%

TASMANIA

Hobart’s unit rents are among the most affordable after a steep decline The Domain Rental Report shows that in Q2 2020 Hobart’s unit rents slipped from their peak in the first three months of the year. Median rents fell by 4.3% to $450 for houses and by 8.4% to $380 for units. Senior research analyst Nicola Powell said these declines followed strong growth spanning over half a decade, with rents surging by 36% for houses and 41% for units in five years.

“Over a few years Hobart unit rents have transitioned from the most affordable in 2016 to the third most expensive by early 2020. The steep quarterly decline has now pushed rents back on par with Darwin and Brisbane, making them the second most affordable,” she said.

In an economy driven by tourism, many landlords had been lured by short-term holiday letting. However, Powell said, “The coronavirus pandemic has been detrimental for the tourism industry, and landlords were quick to seek longer-term tenants in order to retain cash flow during this time.”

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$512,500

1.0%

8.7%

$470

4.9%

Metro (U)

$490,000

3.8%

11.0%

$410

5.3%

Country (H)

$340,000

2.0%

8.2%

$330

5.2%

Country (U)

$295,000

2.6%

4.5%

$275

5.2%

26

AUSSIE CAPITAL SLATED TO BOOM Report forecasts continued strong demand in Canberra’s housing market that could trigger a property boom latest report from CoreLogic shows that Canberra managed to see a rise in the median dwelling price to $639,965 in June.

John Lindeman, property market analyst and author of Lindeman Reports, said massive economic incentive and business recovery programs would help boost the city’s property market.

“The reason why Canberra’s housing market thrives when others barely survive is because many of the city’s 30,000 businesses benefit directly from federal government procurement decisions and programs, which often increase during economic downturns,” he said.

Furthermore, Canberra is experiencing the country’s second-highest population growth rate of 2.2%. This is poised to increase further due to the collapse of overseas migrant, student and tourist arrival numbers in other capitals.

Lindeman said Canberra also had the highest rental yields of all capital city markets, attracting investors seeking positive cash flow.

THE

Temporary weakness A separate report from Domain shows that Canberra’s house and unit rents fell from the highs of the last quarter, down $5 and $10 a week, respectively.

Nicola Powell, senior research analyst at Domain, explained that rising vacancies and weakened demand had pushed asking rents down recently.

“This could be short-lived – vacancies look to be tightening again. Despite rental prices sliding over the quarter, rental conditions remain competitive as tenants compete in the third-tightest capital city rental market,” Powell said.

The decline in rents has affected yields since units fell from their record highs in the previous quarter.

However, Powell says, “For investors, unit gross rental yields remain attractive considering they offer the second highest of the cities, as rental conditions have begun to tighten again,” Powell said.

SPOTLIGHT STATS Source: John Lindeman, property market analyst and author of Lindeman Reports

Canberra has the second-highest population growth rate of all capital cities at 2.2% pa (behind only Melbourne)

Canberra’s population growth rate is expected to rise further while it falls in other capitals due to the collapse of overseas migrant, student and tourist arrivals

Canberra has the highest rental yields of all capitals, attracting investors who seek positive cash flow from day one

The ACT was the only state or territory with an increase in housing finance in May 2020

SUBURB TO WATCH: YARRALUMLA Median price (houses) $1,490,000

Median price (units) $930,000

12m growth

5yr growth

Average annual growth

Gross rental yield

-1%

24%

5%

3%

12m growth

5yr growth

Average annual growth

Gross rental yield

26%

52%

3.2%

4%

www.brokernews.com.au

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3/08/2020 4:38:19 PM

WESTERN AUSTRALIA

Perth is becoming a sellers’ market as demand rises while supply shrinks Figures from the Real Estate Institute of WA (REIWA) in June show that Perth clocked its most robust month for property sales since 2015. The city recorded 3,990 sales transactions, a 55% increase from May and a 45% increase from June last year.

Significantly, land sales increased by 289% to 1,471 total sales for the month. Home sales also increased by 15% to 2,519. The suburbs of Willetton, Thornlie, Girrawheen, Dudley Park and High Wycombe recorded the biggest increases in sales in June.

Damian Collins, president of REIWA, said the spike in property transactions could be due to buyers’ ‘fear of missing out’ on state and federal government housing grants.

“The large spike that we have seen in land transactions can be attributed to people fearing that they may miss out on these grants. There is a real possibility that we will run out of titled and completed blocks in the coming months,” he said.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

Metro (H)

$470,000

Metro (U) Country (H) Country (U)

rent

yield

$380

4.2%

-1.0%

-2.3%

$355,000

0.0%

-2.6%

$350

4.9%

$321,500

-0.9%

-1.5%

$360

5.8%

$188,750

-4.9%

-9.7%

$320

8.3%

NORTHERN TERRITORY

Darwin is the only capital where house and unit rents remained stable in Q2

HIGHEST-YIELD SUBURBS IN THE ACT Suburb

Property

Gross rental

Median

Quarterly

12-month

Average

type

yield

price

growth

growth

annual growth

LYONS

U

8%

$264,250

-5%

-39%

1.6%

CURTIN

U

7%

$265,000

0%

N.A.

-5.4%

CHIFLEY

U

7%

$297,500

-8%

-17%

2.7%

CRACE

U

7%

$365,000

9%

1%

-7.0%

HACKETT

U

6%

$291,500

15%

N.A.

3.0%

PHILLIP

U

6%

$351,000

0%

-11%

0.4%

FRANKLIN

U

6%

$372,500

1%

-2%

1.4%

GUNGAHLIN

U

6%

$385,000

3%

7%

2.7%

WATSON

U

6%

$362,000

2%

0%

0.3%

BRUCE

U

6%

$371,750

0%

-2%

0.3%

According to the Domain Rental Report, Darwin’s house and unit segments maintained median rents of $480 and $380, respectively, in Q2 2020. Unit rents in most other capitals fell in the June quarter, but Darwin held steady, along with Adelaide and Perth. House and unit rents in the NT capital remained well below the 2013 peak, at 31% and 33% lower, respectively.

Nicola Powell, senior research analyst at Domain, said these market conditions made it a great time for new residents to find a bargain rental in Darwin. “For investors, steady rents and affordable purchase prices have propelled gross yields to the highest of all the major capitals. Unit gross rental yields are the highest in more than 15 years,” she said.

Separate figures from CoreLogic show that Darwin was one of the three capital cities in Australia that managed to record a slight gain in house prices in June; however, this doesn’t necessarily reflect a strengthening market.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$480,000

0.0%

-4.1%

$480

5.3%

Metro (U)

$281,250

-1.7%

-10.6%

$360

6.3%

Country (H)

$419,000

1.7%

-1.2%

$500

6.3%

Country (U)

$305,000

0.3%

-4.4%

$373

6.4%

www.brokernews.com.au

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3/08/2020 4:38:43 PM

DATA

NEW SOUTH WALES

Vacancies rates continue to soar in Sydney as tenants ditch the inner city According to the Real Estate Institute of NSW (REINSW), the COVID-19 outbreak has led to a four-month streak of rising vacancy rates in Sydney. Vacancies in the city now sit at 4.5%.

Sydney’s inner ring experienced the most significant jump of 0.8% to an all-time high vacancy rate of 5.8%.

Tim McKibbin, CEO of REINSW, said the impacts of the pandemic on the residential market remained significant, with little signs of abating.

Factors affecting affordability for many tenants could push them to leave the inner city for cheaper markets. “For Sydney’s Inner Ring, if this trend continues, as it’s likely to for the foreseeable future, we can expect to see downward pressure on rents.

While this is great news for tenants, it’s a recipe for disaster for many landlords,” McKibbin said.

Regional areas are faring better, with vacancies dropping in Hunter, Illawarra, Albury, the Central West, Coffs Harbour, the Mid-North Coast, Murrumbidgee, New England, Orana, Riverina and the South East.

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$980,000

2.0%

1.1%

$550

3.1%

Metro (U)

$740,000

1.4%

0.0%

$530

3.9%

Country (H)

$480,000

0.4%

3.0%

$400

4.3%

Country (U)

$420,000

0.6%

2.4%

$350

4.3%

Total auctions

28

Cleared

17

Uncleared

11 60.7%

Clearance rate

PERTH Total auctions

7

Cleared

2

Uncleared

5 28.6%

Clearance rate

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Houses

Capital city

$432,250

$715,000 12.3%

Melbourne

-0.2%

-1.0%

-0.4%

9.0%

Brisbane

-0.1%

-0.3%

1.2%

4.0%

Adelaide

0.0%

0.0%

1.2%

2.4%

-0.3%

-0.5%

-1.1%

-2.6%

-0.2%

-0.7%

1.0%

8.3%

3.9%

Perth Combined 5 capitals

5.0%

$495,000 2.3%

$435

4.8%

$525,000

-0.8%

7.5%

$285

$360,025

-0.2%

1.8%

$350

$447,000

Sydney

$590,000

5.6%

Canberra

12-month change

Metro (U)

9.3%

Darwin

Year-to-date change

3.1%

1.3%

Hobart

Monthly change

$430

0.0%

Perth

Weekly change

2.7%

$385,000

Adelaide

CAPITAL CITY HOME VALUE CHANGES

1.4%

$300,000

Sydney Melbourne Brisbane

$270,000

$0

$375,000

$100,000

$333,500

$200,000

$480,000

$300,000

$369,000

$500,000 $400,000

$500,000

$600,000

$530,000

$700,000

$750,000

Country (U)

Update from: CoreLogic Property Market Indicator Summary

$800,000

Metro (H)

Country (H)

Units

$900,000

$660,000

Tim Lawless, research director for CoreLogic Asia Pacific, has said that what happened during the first lockdown in Melbourne could happen again. Sales declined by almost 70% before gradually improving post-Easter, foreshadowing a sharp decline in new listings across Melbourne. In fact, new listings shrank by more than half during the period. “With advertised stock levels falling and a plunge in consumer sentiment, the lockdown period also saw sales activity drop to the lowest level since the early 1990s,” Lawless said.

However, as restrictions eased, new listings began rising again. Still, Melbourne started recording drops in values. Over the June quarter, the city saw a 2.3% fall in dwelling values, the largest decline across capital cities to date.

“Once the restrictions are lifted in six weeks’ time there is likely to be a level of pent-up demand which will see housing activity improve, as it did previously when social distancing measures were relaxed or lifted,” Lawless said.

28

ADELAIDE

MEDIAN HOUSE AND UNIT PRICES

The second lockdown in Melbourne could hamper growth in sales activity

Area

There were 1,344 capital city homes taken to auction this week, with preliminary collection showing a success rate of 59.2%. This week’s clearance rate was exactly the same as last week’s preliminary figure, which later revised down to 53.1% at final collection, although last week a lower number of auctions were held (1,176).

It’s likely that this week’s final clearance rate will come in within the same low-50% range seen last week as large numbers of Melbourne auctions continue to be withdrawn from the market.

Over the same week last year, a lower number of auctions were held (1,124), with a higher rate of success (68.6%). Comparing the results across Australia’s two largest auction markets highlights the impact of Melbourne’s lockdown. The preliminary numbers show that 41% of Melbourne auctions were withdrawn from the market this week, compared with only 16% in Sydney. Removing withdrawn auctions from the clearance rate calculation shows that the two markets are returning a similar ‘adjusted’ reading in the low-80% range, highlighting that those properties that aren’t withdrawn from the market are still finding buyers.

$631,250

VICTORIA

WEEK ENDING 27 JULY 2020

$790,000

Area

CAPITAL CITY AUCTION CLEARANCE RATES

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

www.brokernews.com.au

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3/08/2020 4:39:10 PM

BRISBANE CANBERRA Total auctions

41

Cleared

33

Uncleared

8

Total auctions

41

Cleared

18

Uncleared

23 43.9%

Clearance rate

80.5%

Clearance rate

SYDNEY Total auctions

476

Cleared

325

Uncleared

151 68.3%

Clearance rate

TASMANIA

MELBOURNE Total auctions

450

Total auctions

1

Cleared

224

Cleared

1

Uncleared

226

Uncleared

1

Clearance rate

Clearance rate

49.8%

SOUTH AUSTRALIA

Area

n.a.

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Adelaide is poised to be the go-to city for Aussies seeking affordable rents Median rents in Adelaide remained stable over the Q2 2020 quarter at $395 for houses and $320 for units, according to the Domain Rental Report. The SA capital remained the second-most affordable city in which to rent a house, while the relative affordability of units is declining, as unit rents have continuously increased since 2011.

Nicola Powell, senior research analyst at Domain, believes Adelaide offers greater value for money compared to other capitals. “As we resurface from the coronavirus lockdown, it could become a drawcard destination for those seeking affordability,” she said.

Still, Adelaide has one of the strongest rental markets of all major cities. In fact, it has the second-lowest vacancy rate, which has declined, and steady asking rents. “Investor activity has been subdued in recent years and multi-unit construction targeted at investors is constrained compared to other cities. This has helped to limit rental supply,” Powell said.

Metro (H)

$466, 000

0.5%

2.1%

$385

4.3%

Metro (U)

$337,750

-0.1%

-0.1%

$330

5.1%

Country (H)

$280,000

0.0%

1.9%

$270

5.1%

Country (U)

$205,000

0.1%

0.1%

$210

5.2%

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

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

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3/08/2020 4:39:30 PM

PEOPLE

IN THE HOT SEAT

With a passion for helping everyday Australians not just take out the right loans but set themselves up with optimal finances, Infinity Group broker Rebecca Walker believes that ‘structure always beats rate’.

Her goal? To help borrowers pay off their loans within 10 years – or sooner

What was your first job before entering the finance industry?

My first job was in the fitness industry, working as a personal trainer A and group fitness instructor. I really liked helping people check off goals and achieve their best! This led to me designing our ‘personal trainer for your finances’ business model for The Infinity Group: each client is assigned an ongoing accountability coach, who manages their finances. Our continued support and customer-centric approach has seen Infinity win multiple awards and reshape the finances of many Australian families.

Q

Financial education is a big part of what you do. Why are you so passionate about educating people on their finances?

A The lack of financial literacy from both the consumer’s and the industry’s perspective amazes me – many brokers and customers still think the best rate, including fi xed rates, is the best thing for the client. It’s so exciting for us to empower our customers, again and again, to repay their mortgage within just seven to 10 years, but it also baffles me that the industry doesn’t provide this support more widely.

Without earning an extra dollar, but by changing the way they manage their finances, we continue to see our customers pay down debts in years rather than decades.

Q

Rebecca Walker, co-founder and director, The Infinity Group If you could change anything about the broking industry, what would it be?

I’d like to see stronger efforts to educate consumers, not just to sell A them on the best rate. Having a low rate is meaningless if you take remind customers: “Stop buying your kids stuff you never had, and start 30 years to repay the loan. By giving our clients a better-suited product teaching them things you never learnt.” with features that allow them to repay the loan in seven to 10 or at the most 15 years, customers can keep unnecessary interest in their family accounts What’s one positive change coming out of the pandemic Q that you believe has improved the mortgage industry? instead of the banks’.

A I strongly believe that consumers will now, more than ever, take control of their finances. I’m also confident that the old face-to-face If you weren’t a broker, what would your ideal Q career be? meeting and assessment model has already changed drastically, and this space will continue to grow and innovate. That will include more virtual A I would like to be in the education space. I really believe that so much processes for document collection and signatures, recorded video real-world education is lacking in the school system, and some of what conferences and other areas that will genuinely allow brokers to reach a our children are being taught will never translate into their everyday lives, wider scope of consumers and ultimately give them better choices within so we’re currently working on a children’s financial literacy program that the industry. AB I believe will be a game changer. [My partner] Graeme and I constantly

Q

30

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