Australian Broker 17.16

AUGUST 2020 ISSUE 17.16

Lending data delivers hope New home loan commitments saw a small recovery in June, prompting hope that activity will rebound quickly /10

Financial comfort report Are Australians more financially comfortable now than we were before the pandemic? /18

DANIEL CARDE Specialist lending helps everyday Australians survive short-term setbacks and get back on the path to success, says Resimac’s Daniel Carde /14

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Women in fi nance blazing a trail Female brokers and finance professionals are continuing to break new ground /20

ALSO IN THIS ISSUE… Banking on a secure data influx Launch of open banking creates both opportunities and threats /23 Broker on broker Otto Dargan on how brokers can avoid being ‘trapped’ in their businesses /25 In the hot seat John Kennedy has clocked up almost two decades as a mortgage broker /30

17/08/2020 12:54:08 PM

NEWS

IN THIS SECTION

Lenders Two majors unveil signifi cant operational changes /04

Industry groups Satisfaction with customerowned banks on the rise /06

Market New June lending data delivers hope /10

Aggregators Smaller players losing SME market share /12

Regulators Nearly 10% of Australia’s loan payments deferred /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 SALES INCREASE FOR SECOND STRAIGHT MONTH sales in the US rose for the second straight month in June, according to the National Association of Realtors (NAR). Each of the four major US regions posted month-over-month growth, and the Northeast was the only region not to record increases in year-over-year pending home sales. NAR’s pending Home Sales Index rose 16.6% to 116.1 in June, while contract signings rose 6.3% year-over-year. “It is quite surprising and remarkable that, in the midst of a global pandemic, contract activity for home purchases is higher compared to one year ago,” said NAR chief economist Lawrence Yun. “Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum-liquidity monetary policy.” NAR forecasts that in 2020 existing-home sales will only decline by 3%, while new home sales will rise by 3%.

HOME

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COMMERCIAL OFFICE LANDSCAPE SHIFTS POST-CORONAVIRUS US commercial office market is yet to be affected by the economic turmoil caused by the coronavirus crisis, according to the newly released Yardi Matrix commercial office data. The report showed that the average full-service equivalent listing rates were US$38.39 in June, up 14 cents from May, but down 10 basis points from a year ago. However, due to soaring unemployment levels and the resurgence of COVID-19, Yardi predicted that shifting office employment levels and workplace safety concerns would definitely impact the market for the rest of the year and possibly beyond. Office-using employment rose by 347,000 jobs in June, but total employment in office-using sectors was still below its February peak of 2.4 million. The sales volume slowed, but prices were yet to fall.

THE

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U.S. MORTGAGES PROPPED UP BY HOME LOAN DEFERRALS programs permitting temporary suspension of Americans’ monthly FORBEARANCE mortgage payments have been a godsend to the more than four million borrowers who have used them in the time of COVID-19. But the end of this much-needed grace period is looming large. Once the government programs run their course, Carol Faber, partner and co-chair of the Distressed Property Practice at Akerman Law, says she expects to see more foreclosures and sales of distressed properties. “I find myself repeating constantly that we are still in the early innings of this … I think the hope was that we’d be further along in the pandemic, that we’d be opening up [the economy] … but people and institutions and companies are still in need of these programs, and the government will continue to fund them.”

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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17/08/2020 1:03:57 PM

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17/08/2020 1:04:41 PM

NEWS

LENDERS FUTURE OF BROKING SEEN IN OVERSEAS TRENDS mortgage lender says trends being shaped by COVID-19 overseas provide valuable insight into the future of Australian broking. According to Better Choice Home Loans executive director Allan Savins, examining international developments can help Aussies unpack the dramatic changes occurring in the domestic market and more accurately predict the pandemic’s impact on broking practices in years to come. Savins cited the wide adoption of digital verification of identity as an example one of the new developments.

JOB SHIFTS AT BIG BANKS

A

1,000 jobs

450 bankers

Westpac is bringing 1,000 jobs back to Australia from Manila in an effort to alleviate pressure caused by the surge in demand for customer assistance

NAB is redeploying hundreds of staff from in-branch roles to digital banking support, with staff splitting their day between the branch and online customers

114 branches A large number of NAB branches will be impacted by the role changes, which will see NAB banks close at 12.30pm so staff can provide online support to customers

SIMPLICITY PASSES $1BN IN LOAN SETTLEMENTS boutique brokerage and property advisory business has just surpassed $1bn in settlements, a feat it has largely attributed to the Marketplace Finance platform it launched a year ago to help brokers dive into commercial lending.

Simplicity Loans & Advisory was co-founded in 2017 by MDs Jean-Pierre Gortan and Matthew Johnson. “We have experienced 90% year-on year growth, settling 50% ($500m) in the last 12 months,” said Gortan.

A

“It is clear the face of banking is changing, especially in the way customers want to interact with us” Rachel Slade Group executive of personal banking, NAB

4

TWO MAJORS UNVEIL SIGNIFICANT OPERATIONAL CHANGES The banks have unveiled major changes to their models of operation intended to both improve customer experiences and positively contribute to the job market has announced it will be transitioning around 1,000 jobs from overseas back to Australia, a decision partially driven by the stress the surge in demand for customer assistance at the start of COVID-19 put on home lending processing.

Westpac CEO Peter King acknowledged that “at times [the bank’s] response rates have been too slow”.

“This announcement is a further step in transforming our business and mortgage operations, helping to support local employment, reducing the risk of offshore WESTPAC

disruption, and accelerating our ability to simplify processes through digitisation,” he said.

“We will also be returning all dedicated voice roles to Australia to enhance the capacity of our existing call centres. This will mean when a customer calls us, it will be answered by someone in Australia.”

The bank expects implementation to take around a year as it works through existing obligations with its overseas partners.

The 1,000 new roles will be filled with new and existing employees, with the jobs distributed across regional and metro areas.

Following the news out of Westpac, NAB has announced it is also adopting a new model that will “see hundreds of jobs maintained and a more consistent banking experience for customers” as the group shifts slightly away from the traditional branch model.

As of 17 August 2020, NAB has adjusted its opening hours across 114 of its regional branches to 9.30am to 12.30pm. Bankers are supplementing their in-store service with digital banking support, a shift the group has attributed to more customers moving online.

According to Rachel Slade, NAB group executive of personal banking, bankers will also be using some of their newly freed-up time to assist with application processing.

More than 450 bankers have already been trained in new skills to support customers since the start of COVID. “It is clear the face of banking is changing,” said Slade.

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17/08/2020 1:05:29 PM

Our homes are more important now than ever.

If your clients are worried about theirs, we’re here to help.

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17/08/2020 1:06:03 PM

NEWS

INDUSTRY GROUPS FBAA URGES LENDERS TO IMPROVE TURNAROUND turnaround times that have blown out by up to six months have been flagged by FBAA managing director Peter White as being in desperate need of improvement. Appearing in a webinar hosted by the Australian Finance Group, White pointed out that lagging processing times, which were a problem at several lenders, including three of the four big banks, were causing borrowers to “suffer”. “We had a case [where a broker] submitted a loan application in January and it only got approved in July,” he said.

LENDERS’

MFAA REVEALS 2020 NATIONAL AWARD WINNERS MFAA honoured the best in the industry at its first-ever virtual MFAA National Excellence Awards on 6 August. The 22 awards, audited by Hall Chadwick, were judged by industry professionals based on a range of criteria rather than revenue alone, to ensure brokers in all locations had a fair chance. MFAA CEO Mike Felton said the awards were a celebration of brokers and an industry that had “come together showing compassion and excellence to continue to support communities and clients – helping many through periods of exceptional hardship”.

THE

SATISFACTION WITH CUSTOMER-OWNED BANKS ON THE RISE The latest Roy Morgan report shows that satisfaction with customer-owned banking institutions has climbed steadily, even during the COVID-19 pandemic banks have been increasing in popularity, according to new research. The most recent figures reveal that customer satisfaction with the mutual sector has climbed to 89.2%, up 0.7% on this time 12 months ago.

Bank Australia leads the pack, followed by Bank First, Beyond Bank Australia and Teachers Mutual Bank. Heritage Bank, Greater Bank and RACQ Bank are not far behind.

The Roy Morgan Customer Satisfaction report is based on over 50,000 face-to-face interviews with consumers in their homes. The most recent report covers several CUSTOMER-OWNED

Commercial Loans

months of the pandemic, as it accounts for the six months leading up to the end of May 2020.

According to Customer Owned Banking Association CEO Michael Lawrence, the results show the sector’s commitment to prioritising the security of customers even through a health crisis.

“From the outset of COVID-19, our members have been on the front foot of customer care,” he said.

“They have proactively contacted customers at risk of vulnerability, responded to requests for assistance with respect and sensitivity, and have pivoted operations to remote work arrangements and digital capability where required, ensuring

customers are never on their own.”

Other banks that received notable mention for their high level of customer satisfaction include Newcastle Permanent Building Society, People’s Choice Credit Union and Credit Union Australia.

The report from Roy Morgan is further corroborated by the latest edition of the Banking Brand and Trust Index published by digital research house Glow.

According to the group’s tracking study conducted over the month of June, COBA members represented six of the 10 most trusted banking institutions in the country, with Heritage Bank, Greater Bank, RACQ Bank, Credit Union Australia and Beyond Bank Australia also featuring on their list.

“Rather than pay out shareholders, customer-owned banking institutions reinvest profits back into benefits for customers through lower interest rates, lower fees and innovative technology,” said Lawrence.

“Rather than pay out shareholders, customer-owned banking institutions reinvest profits back into benefits for customers”

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End-to-end digital process     

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17/08/2020 1:08:40 PM

NEWS

R E G U L AT O R S

ASIC TO RECONSIDER LENDING GUIDANCE has announced that it will not pursue further action in the Westpac responsible lending case, following the full Federal Court’s 2–1 decision to reject its earlier appeal. On 13 August 2019, the Federal Court found that Westpac had not breached the responsible lending provisions of the Credit Act, and earlier this year ASIC lost its appeal. Now, ASIC plans to review its updated regulatory guide for responsible lending (RG 209) and consider what the implications of the court decision are for the document.

ASIC

ASIC PERMANENTLY BANS FINANCE BROKER has permanently banned a Brisbane-based finance broker from engaging in future credit activity following his fraudulent behaviour regarding a mortgage customer. Following a notification of dishonest conduct by the Australian Financial Complaints Authority, ASIC found that Jeffry Leonard Gordon had knowingly or recklessly provided a false letter to a client stating that they had been formally approved for a home loan with St. George when, at the time, no such application had even been lodged with the bank on the client’s behalf.

ASIC

“The next phase of bank support will avoid a ‘cliff’ for customers in September and give them the breathing space they need to work with their bank and get back on their feet financially” Anna Bligh CEO, Australian Banking Association

8

NEARLY 10% OF AUSTRALIA’S LOAN PAYMENTS DEFERRED APRA has released the most recent data revealing where Australia stands in terms of temporary loan repayment deferrals due to COVID-19 the close of June, $274bn worth of loans in Australia had been granted temporary repayment deferrals – close to 10% of total loans outstanding, according to APRA data.

The majority of loans granted repayment deferrals were housing loans; nearly 500,000 were deferred, representing 9% of all home loans in Australia and amounting to $195bn in value.

On a more positive note, the APRA data also showed that $18bn worth of home loans came off loan repayment deferral plans over the month, up from just $2bn in May. “It’s good news and bad news AT

from APRA’s release of loan repayment pause data,” said Canstar group executive of financial services Steve Mickenbecker.

“The bad news is that 9% of home loans are temporarily deferred, which is a large group in financial stress. The good news is that the overwhelming majority, or 91% of home loans, have not needed their banks’ forbearance at this stage.”

He added that the “even better news” is that $18bn of home loans came off pause in June.

“This is a surprisingly early return to normality. Let’s hope that Victoria’s July slide back into COVID hasn’t reversed this.”

According to the APRA data, 17% of small business loans had been deferred as of 30 June.

“With 17% of loans temporarily deferred, small business is doing it tougher than households, and the necessity of the further JobKeeper breathing space is confirmed,” said Mickenbecker.

“Canstar’s recent survey reveals that 46% of home loan borrowers have had their income cut or employment status changed due to the COVID-19 pandemic, but the majority have not at this stage requested a formal loan deferral. Those borrowers covering the shortfall with redraw or offset balances will be hoping for early economic recovery.”

APRA’s housing risk profile revealed that loans granted repayment deferrals were more likely to be extended to owneroccupier borrowers paying principal and interest, and those with higher loan-to-value ratios.

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17/08/2020 1:09:29 PM

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17/08/2020 1:09:59 PM

NEWS

MARKET AUSSIE HOUSING PRICES CONTINUE TO FALL housing values have continued their slow descent, with CoreLogic data revealing the third month of decline as prices dipped 0.6% in July following the 0.7% decline in June. Notably, values in regional markets have shown more resilience, while Canberra and Adelaide were the only capital cities to resist the downward movement, posting growth of +0.6% and +0.1% respectively. The largest month-on-month price falls in July were reported in Melbourne (-1.2%) and Sydney (-0.9%).

AUSTRALIAN

BORROWERS JUMPING SHIP TO REFINANCE has confirmed the trend that a large number of borrowers are now looking for a product better suited to their needs, reporting that more than 80% of mortgage holders who refinanced through the group in the last year have switched lenders.

According to Aussie, just 18% opted to refinance with their existing lender.

“The historic low mortgage interest rates and strong competition amongst lenders are inspiring mortgage holders to review the state of their home loan to secure a good deal,” said Aussie CEO James Symond.

AUSSIE HOME LOANS

NEW JUNE LENDING DATA DELIVERS HOPE FOR RECOVERY ABS data has revealed a small recovery in new home loan commitments, raising hope that market activity will rebound quickly as Aussies regain confidence in the economy value of new loan commitments for housing was up 6.2% over the month of June, seasonally adjusted, according to the ABS. The rise reflects the easing in May of COVID-19 restrictions on auctions, open houses and mobility in general, according to ABS chief economist Bruce Hockman.

For owner-occupier housing, the value of new loan commitments rose 5.5% in June; for investors, it was up 8.1% and for owneroccupier first home buyers, commitments rose 3.3%.

Hockman highlighted that the rebound in lending activity followed large falls in April and May, meaning the value of new THE

commitments in June was still down more than 10% compared to March. However, it was notable that new loan commitments in June were up 4.5% from the same month in 2019.

According to Canstar group executive of financial services Steve Mickenbecker, the data suggests Australians were feeling comfortable enough to transact again in June. While the second wave of the pandemic may threaten the continuation of this trend, he remains hopeful of its longer-term implications.

“The June recovery shows borrowers were back to buying, but this may be short-lived with the larger states grappling with the

pandemic’s second wave,” he said. “[However], it indicates borrower intent for a time when the virus is under control.”

For Raj Ladher, home loan specialist at Your Mortgage Broker, an unpredictable housing and mortgage market has become the expectation. His team is therefore focused on discerning borrowers’ needs amid the tumult.

“The stats coming out are very promising under the circumstances.

With all the government grants and concessions available, along with rock-bottom interest rates, we have seen a notable increase in enquiries, which is great,” he said.

“At Your Mortgage Broker, we’re busy trying to distinguish between a client who is ready to transact now versus one who is enquiring for later as early in the process as possible; it’s crucial to ensuring we’re ready and able to navigate each lender’s unique COVID policy and turnaround times.”

“The June recovery shows borrowers were back to buying, but this may be short-lived with the larger states grappling with the pandemic’s second wave” Steve Mickenbecker Group executive of financial services, Canstar

INCREASE IN NEW HOUSING LOAN COMMITMENTS, JUNE 2020 Source: ABS; June 2020, seasonally adjusted

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6.2%

5.5%

8.1%

3.3%

Annual increase in new housing loan commitments

Increase in owner-occupier housing loan commitments

Increase in investor housing loan commitments

Increase in first home buyer housing loan commitments

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17/08/2020 1:10:29 PM

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17/08/2020 1:11:05 PM

NEWS

A G G R E G AT O R S DECLIINE IN MARKET SHARE OF NON-BANKS, SMALLER LENDERS Source: FAST Business Lending Index, June 2020

Lenders’ market share, by lender type Three months to 30 June

Banks

Non-banks

6%

FINALISTS FOR THIS YEAR’S AMAS ANNOUNCED

Market share June quarter 2018

19th annual Australian THE Mortgage Awards will celebrate excellence in broking, aggregation and lending at a time when the industry has shifted dramatically. The finalists for Aggregator of the Year (Over 500 Brokers) are AFG, Aussie, Connective, FAST, Finsure, Loan Market, Mortgage Choice, outsource financial and PLAN Australia. The finalists for Aggregator of the Year (Up to 500 Brokers) are Liberty Network Services, nMB and Purple Circle. Winners will be announced in October.

7%

12%

Market share June quarter 2019

94%

Market share June quarter 2020

88%

93%

Lenders’ market share, by lender size Three months to 30 June

Large lenders

26%

Small lenders

34%

Market share June quarter 2018

74%

27%

Market share June quarter 2019

66%

Market share June quarter 2020

73%

FINSURE HITS NEW LOAN SETTLEMENTS RECORD mortgage aggregator reported a record $4.5bn in settlements over the June quarter, despite the challenges of COVID-19. According to Finsure Group, this was a 37% rise on the previous corresponding period.

“Despite COVID-19, Finsure’s growth continues to be a standout, with record settlement volumes and strong broker recruitment anticipated,” said MD John Kolenda. “Finsure’s settlement volumes and loan book grew 23% and 19% year-on-year respectively despite difficult market conditions.”

A

“Accessing finance remains critical for SMEs over the coming months, and brokers continue to help their business clients secure working capital” Brendan Wright

CEO, FAST 12

SMALLER PLAYERS LOSING SME MARKET SHARE Small businesses are turning to major banks rather than the smaller lenders for financial support during the pandemic, according to new data from FAST lenders large and small recorded a decline in business lending volumes over the June quarter, the latter group’s drop was more than four times greater than that of the majors.

According to the most recent FAST Business Lending Index, this difference in pacing is partially attributable to the rise in wholesale funding costs driven by the COVID-19 pandemic.

The major banks recorded a 7.5% drop in volumes, while the small lenders saw a drop of 32.3% on the same quarter last year.

“The three months to 30 June have been some of the most difficult in the history of the Australian economy,” said FAST WHILE

CEO Brendan Wright.

“We are dealing with a global health pandemic that has challenged financial markets and had a significant impact on Australian businesses.”

Over the three months to 30 June, total commercial and business lending was down 15.9% from the same period last year.

Australia’s non-bank business lending over the period was down 47.8% year-on-year. After managing to double market share from 6% in 2018 to 12% in 2019, non-banks accounted for just 7% of all commercial and business lending in the June quarter of 2020.

“Wholesale funding markets have been impacted globally,

and the cost of funds has risen,” Wright explained.

“Non-banks and fintech lenders that rely on wholesale funding and investment equity have had to manage their front books over the quarter as the rising cost of funds has placed upward pressure on margin.

“What we have seen over the June quarter is a shift back to the mainstream lenders as more loans are placed with the banks, particularly the big four.”

Notably, the index also revealed that while large commercial transactions and residential property development loans have fallen significantly, demand for small business loans remains steady.

“Accessing finance remains critical for SMEs over the coming months, and brokers continue to help their business clients secure working capital so that they can continue operating through this challenging period,” said Wright.

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17/08/2020 1:11:54 PM

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17/08/2020 1:12:37 PM

FE AT URES

SPECIAL REPORT

SPECIALIST LENDING: COMMON MISCONCEPTIONS

Gone are the days when non-conforming applicants were all high-risk, low-credit prospects with an uncertain future. Now, specialist lending is all about helping everyday Australians survive short-term setbacks and get back on the path to success, and this presents a lucrative opportunity for brokers, says Resimac’s Daniel Carde

THE RESIMAC HOME LOAN EXPERIENCE Resimac recently surveyed its broker community for one month to get an understanding of how seamless or challenging its application process is

95%

of brokers reported that they were ‘satisfied’ or ‘extremely satisfied’ with their business development relationship manager

93%

said they were ‘satisfied’ or ‘extremely satisfied’ with the turnaround time from submission to initial credit decision

91%

of respondents were ‘satisfied’ or ‘extremely satisfied’ with the credit assessment process – and 91% reported the same about the Resimac settlements team

90%

reported being ‘satisfied’ or ‘extremely satisfied’ with the overall experience of working with Resimac to fund a loan for their client

95%

agreed that they were ‘likely’ or ‘very likely’ to submit another application to Resimac in the future Source: Resimac (survey conducted in June based on settlements in May, highlighting Resimac’s performance in the middle of the pandemic while working 100% from home)

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are a few trends that have emerged out of the coronavirus pandemic which, at first glance, may seem a little surprising. Take Google search trends, for instance. There is some anecdotal evidence to suggest that, after this period of lockdowns and quarantines, the number of search queries for terms like ‘divorce’, ‘sell my property’, ‘how to split assets’ and ‘how to start over’ could surge.

“The unfortunate reality is that there will be many Australians who suffer as a result of the pandemic, whether due to loss of job, small business failure, relationship breakdown or divorce.

These types of stressors can mean some bills go unpaid, which can impact their credit rating. But that doesn’t automatically make them a high-risk or non-conforming borrower – it just means they’ve gone through a tough time,” says Daniel Carde, general manager distribution at Resimac.

This is one of the many misconceptions of specialist lending that Carde is keen to stamp out.

In the past, it may have been the case that the only borrowers who sought out specialist lenders were those who were high-risk, with dodgy credit profiles, a poor history of managing money, some financial firestorms in their past and little documentary evidence to back up their application stories.

Today, that’s far from the truth for the average non-conforming loan applicant, Carde says.

“Specialist lending today is very THERE

different to what is was pre-GFC. We’re a lot smarter about it these days, and there’s a lot more science behind it. We all know someone who has lost their job or who has been divorced. We may know someone who has had a small business that hasn’t taken off.

They’re not necessarily poor money managers; they’ve just been caught in poor money circumstances,” he explains.

“Specialist lending is really no different to traditional lending; it’s about getting down to what actually happened, and most importantly,

to redraw facilities via our online platform and through our Visa loan access card. Our focus is on providing the Australian consumer with flexibility and choice, and this includes both prime and specialist borrowers, and whether they are owner-occupiers or investors,” Carde says.

Specialist lending, Carde adds, is “countercyclical”, and as we continue to experience a downturn in the economy, “the opportunities within this type of lending increase”.

“When you have a major life

“Specialist lending today is very different to what it was pre-GFC. We’re a lot smarter about it these days, and there’s a lot more science behind it” whether the borrower is now in a better situation. We don’t want to shift borrowers from one lender to another and transfer the pain of the situation over – we actually want to help put customers on the pathway back to recovery.”

Specialist loans also don’t differ from more traditional loans in terms of features.

“Our specialist loans are fully featured, with 100% offset, choice of repayment frequency and repayment type, and free access

event – divorce, illness, small business failure, loss of job – that’s when we can help. As long as the borrower is over that situation and on the road to recovery, then we will try to assist – we may be able help people get out of that situation too,” Carde says.

“If brokers aren’t familiar with our specialist lending products, now is a good time to reach out to Resimac BDMs and have a chat about how you could incorporate these offerings into your business.”

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17/08/2020 12:25:53 PM

In partnership with

“Often it’s a case of, they’re good borrowers that have potentially come across a not-so-good situation”

Daniel Carde, general manager distribution, Resimac

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17/08/2020 12:26:23 PM

FE AT URES

Carde, who looks after all of Resimac’s distribution, wholesale and broker direct channels, explains that “everything has evolved with COVID-19”.

Resimac reviews every single loan application on its individual merits, and it’s this bespoke, personalised approach that gives it the flexibility

of the same quality as those eligible for traditional loans. The reality is that the lending principles are the same, irrespective of the type of loan. Whether it’s full-doc, alt-doc, impaired credit or not, it all boils down to serviceability, security and suitability,” Carde adds.

“The only difference with specialty

“The only difference with specialty lending is that there is often a back story. As long as you can provide those details, it’s not that different to a traditional loan” and agility to approve loans that some of the more traditional lenders may pass on.

“There’s a misconception that specialist loans are harder for the broker, or that the borrowers are not 16

lending is that there is often a back story. As long as you can provide those details, it’s not that different to a traditional loan. It’s a risk-based approach, and the only way we can make those lending decisions is if we

have the full picture.”

Getting that background story and as much information as possible so the lender can clearly assess the risk is crucial to the process, which is why Resimac places so much emphasis on the value added by the broker community, who play an important role in communicating the borrower’s situation and requirements.

“Every loan is assessed on its individual merits by a specialist underwriter, and the more information we get, the better we’re able to process the application. We rely on the broker to articulate the borrower’s information and make sure the story carries over to us, and we place a lot of value in the conversations that our BDMs and brokers have; you can’t really beat a one-on-one conversation,” Carde says.

“Once you’ve lodged a loan, the digital process takes over. We have

the tools to allow for non-face-toface interviews, and we also do digital IDs and digital signatures, but it always starts with a personal conversation.”

For Resimac, which transitioned to a full working-from-home model when the pandemic first hit, ensuring that it is able to communicate with brokers and customers in the most timely and convenient manner is a key priority, whether that’s via phone, video call or, where socially distanced and appropriate, face-to-face meetings.

Right now, staff in Resimac’s Melbourne office are still working remotely, while team members in Sydney and Perth have transitioned back to working in the office on a rotational roster.

“We brought forward a technology rollout that was scheduled for later in the year to enable us to work remotely, and the process has been quite seamless for us. Importantly, our customers haven’t been impacted. Our SLAs are currently at one day across the board. We’ve been improving our back end to further improve our efficiencies to give us the scale we’re looking for and to maintain those SLAs, which in general have remained fairly consistent over the lockdown period,” Carde says.

For brokers who are considering introducing these types of loans in their businesses, this may be the ideal time to take advantage of opportunities in the market, he adds.

“If a borrower starts a conversation with you by saying, ‘I’ve been to my bank and I’ve been knocked back’, don’t switch off because they don’t conform to the traditional loan. Rather, ask a few questions around their situation.

What are they looking to do and why wasn’t their bank able to help them? You can then look at what solutions are available, which might include Resimac,” Carde says.

“Often it’s a case of, they’re good borrowers that have potentially come across a not-so-good situation. You can package the loan up like you would any other loan, then add in the notes about the unique factors of their specific situation, and that’s it. There will be many borrowers looking for that road to recovery in the not-too-distant future – who want to get back into the property market, or tidy up their finances – and the opportunities for brokers to assist will abound.” AB

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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 When a couple approached Alex Sperling to refinance a loan he’d arranged for them many years prior so they could rebuild their home, it seemed like a straightforward deal – but the devil is always in the details THE FACTS

Client A married couple with three children

Loan size and term A knock-down and rebuild loan for a house they already owned

Goal To refinance an existing loan for equity release and obtain finance for rebuild

Lender MyState Bank

Aggregator Connective

then heard back – they said they wouldn’t look at it. When I got a hold of the credit officer for more information, he said the empty payslips every four weeks were a big concern.

The other concern was the fact that the application relied on the client’s income from overtime, which was a condition of employment. As his income had increased by over $60,000 since his previous job, the credit officer said he could see that the client would earn the money, but as he was still on probation the lender was not willing to consider the application at that time.

This happened even though we had checked this beforehand with the BDM.

THE SCENARIO

I had previously helped this couple finance the purchase of their property many years earlier. They already owned the property and had a mortgage against it, which we had originally assisted with.

When they contacted me again, the husband had recently changed jobs and his income had increased by $60,000.

They were hoping to obtain a knock-down, rebuild, refinance and construction loan.

At the time of the application, he was still on probation in his new job – and that was the first of many hurdles to overcome.

The client lives in Bargo in NSW but works in Queensland in a fly-in, fly-out role as a technician in the energy industry.

He flies up for three weeks, stays on site and works, then comes home and has the week off. During that week off, his income is zero. This was the second part to the complexity of this deal.

Every fourth week, the client’s payslip was empty. To get around this, we created a spreadsheet covering three months’ worth of income to get an average weekly figure.

Before submitting the loan application, I did some research on land values, because once you knock a house down you’re basing the property’s value on the land value only. The value came in a little lower than expected, but it was still good enough to avoid LMI, based on the clients’ financials.

The client asked: ‘Can we knock the house down?’ I came back with a resounding ‘No! Not until we have an approval!’

THE SOLUTION

We sent off a number of emails about these borrowers to various BDMs for consideration.

One particular lender said it would consider the deal. We prepared all the paperwork, sent off the application, and

Location Bargo, NSW

There was pressure from all ends, with the builder threatening to put the price up and the clients having already booked in the demolition of the property. The client asked me: “Can we knock the house down?” I came back with a resounding “No! Not until we have an approval!”

I then approached a third lender. This time, when I sent in the details, it was like writing War and Peace my email was so long – but I needed to ensure every aspect of the deal was explained. We submitted the application, and it was approved! We got it in at 79% LVR, just narrowly avoiding LMI. It had been a bit of a journey, and the client was very stressed along the way, particularly when he was in Brisbane and his wife was in NSW. But with the deal approved, their existing house was demolished, they moved into a rental, and the new construction got underway. And that’s when we ran into a bit of trouble again: at the third drawdown, the lender wouldn’t approve the release of funds, citing a shortfall in funds. At this stage the loan was sitting at just under 80%, but the lender’s policy was that at this particular drawdown stage, the client couldn’t exceed a certain LVR. Fortunately, the borrowers had cash reserves and were able to contribute the funds, knowing they would get the money back at the end when the last part of the loan was drawn down. Finally, the loan settled on time.

Alex Sperling MFAA-accredited finance broker, Our Mortgage Options

We withdrew the application and went to another lender. When I approached this second lender, the BDM said it all looked good and they were happy to consider the loan. And as far as I knew they had confirmed this with their credit team.

But the same thing happened again!

At this point, timing was becoming crucial. The borrowers had negotiated a very competitive contract with their builder, but the agreement was that if they didn’t get started by a certain date, the price would go up $30,000.

We were running out of options. The deal we had prepared was based on an LVR of just under 80%; however, it was looking like we might have to go to over 80% just to get the deal done.

THE TAKEAWAY

My approach to every loan and client is that it’s all about reverse engineering. I first consider what the client wants, then we can then work backwards to help them achieve that goal. If this is where you want to be and this is where you are right now, and these are all the moving parts, then what do we need to do to make it happen?

I always tell my clients: “I’m pretty sure this is going to work, but if it doesn’t, here is Plan B and C. In every deal, I’m always thinking of where else I can go and what I can do next. The last thing I ever want to say is, “It can’t happen”. Hopefully it works on the first attempt, but that’s not always the case. AB www.brokernews.com.au

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NE WS ANALYSIS

ARE AUSTRALIANS BETTER OFF FINANCIALLY NOW?

When the federal government began delivering hundreds of billions of dollars worth of stimulus packages and grants in March, some Australians wound up better off financially than they were before the pandemic hit. But where are we headed from here?

AUSTRALIANS’ FINANCIAL COMFORT: THE FACTS

32% of Australian households say they could maintain their lifestyle for more than three months if they lost their income

21% of households have less than $1,000 in savings (on average, about $300 – significantly lower than the current JobSeeker fortnightly payment)

97% of that 21% reported that they could not maintain their current lifestyle for more than six months if they lost their incomes

39% of households are part-time or casual workers seeking more hours, compared to 27% six months ago Source: ME’s 18th Household Financial Comfort Report

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have never been more financially comfortable – at least according to the data released in a new report from ME Bank.

The key findings of ME’s 18th Household Financial Comfort Report, a bi-annual survey that quantifies how comfortable Australian households feel about their financial situation, showed that household financial comfort increased 3% to 5.76 out of 10 in the six months to June 2020 − just shy of the historical high of 5.78 recorded in December 2014.

The surprising report revealed that the flood of government stimulus, combined with the prudent financial actions of households in response to the COVID-19 pandemic, has pushed the nation’s household financial comfort to a near-record high.

Financial comfort has jumped the greatest among those who typically struggle the most, such as casual workers, the unemployed, low-income households and single-parent households, though their comfort levels remain much lower than those of the average household and higher-income Australians.

ME’s consulting economist, Jeff Oughton, says almost all 11 measures that make up the Household Financial Comfort Index showed improvement, most notably ‘comfort with the ability to cope with a financial emergency’ (up 9% to 5.25 out of 10, the best level on record) and ‘cash savings’ (up 8% to 5.48 out of 10).

AUSTRALIANS

“Fear of COVID-19 and a very weak labour market triggered many households to increase precautionary savings, reduce spending, draw on long-term savings, such as superannuation, and delay bills or loan repayments,” he says.

“In June, 57% of households ‘spent less than they earned each month’ – up 8 percentage points

disastrous consequences on the financial comfort of households,” he says.

“Financial comfort levels are up for now, but many households are on the cliff ’s edge. They’ve lost income, their jobs and entire livelihoods, their wafer-thin savings buffer is dwindling, and government support is the main action stopping them from

“In June, 57% of households ‘spent less than they earned each month’ – up 8 percentage points to the highest level of households saving since the survey began nine years ago” Jeff Oughton, consulting economist, ME to the highest level of households saving since the survey began nine years ago. However, paradoxically, this cautious behaviour and a lack of spending may cause a negative knock-on effect to the economy and a deeper recession.”

While government stimulus packages such as JobKeeper and JobSeeker have bought some time and helped boost the financial resilience of Australian households for now, Oughton is concerned about what will come next as government support tapers.

“Unless the economy gains momentum, tapering government support too soon could have

falling over. This survey shows that the financial consequences for households of this pandemic remain critical. Many eyes will be on what governments do in the final months of 2020 and into next year.”

Chris Rands, portfolio manager, fixed income, at Nikko Asset Management, agrees that there is cause to be concerned, with unemployment now at a 20-year high, immigration non-existent, and interest rates having hit their lower bound.

“Typically when discussing Australian housing, the narrative goes along these lines: ‘Yes, our

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Jeff Oughton, consulting economist, ME

house prices are some of the most expensive in the world, but we have strong migration, good affordability and constricted supply compared to other countries, which justifies the high prices’,” says Rands.

“Under ‘normal’ conditions, this argument holds water. But in the current climate, it becomes extremely questionable. As such, we look to the bigger-picture indicators – unemployment, immigration, fiscal support and interest rates – to glean the potential direction of the housing market.”

He says the largest risk to the property market right now comes in the form of unemployment, as Australia faces an unprecedented level of job losses. While the official unemployment statistics are evolving and not always a true representation of the market due to how job losses and employment levels are classified, some trends are immediately clear around the percentage of working-age Australians who are out of work.

“Around 3.5% of the working-age population lost their jobs since March, which does not include those who are currently on the JobKeeper program – around three million people. This is a decline of close to 700,000 jobs and is

Patrick Coghlan, CEO, CreditorWatch

two times larger than that seen in the early 1990s recession and four times larger than the 2008 recession,” Rands says.

This huge level of unemployment has brought with it economic hardship that has required relief

Chris Rands, portfolio manager, fixed income, Nikko Asset Management

will need to be reviewed by the banks come September.

APRA announced in July that they would extend the deferral process [but] additionally stated that ‘in some cases, banks will need to recognise that loans are

“Support packages like JobKeeper have provided businesses with an essential lifeline since March, but the reality is, they aren’t long-term solutions” Patrick Coghlan, CEO, CreditorWatch through the banking system.

According to Australian Banking Association figures, almost 500,000 borrowers have been granted loan deferrals, and APRA has reported that about 10% of all home loans have been deferred.

“The problem that this unemployment situation creates is twofold,” Rands explains. “Firstly, since the capital treatment for loan deferrals was originally given for only six months, each application

permanently impaired’.”

It’s not just households and residential borrowers who may struggle to recover. The business community is also in a lot of pain, particularly those industries that have been hardest hit by lockdowns, such as travel and tourism.

Patrick Coghlan, CEO of digital credit agency CreditorWatch, says that while many Australian businesses are showing resilience

and strength in the face of economic challenges, others will take longer to recover – and some won’t recover at all.

“Support packages like JobKeeper have provided businesses with an essential lifeline since March, but the reality is, they aren’t long-term solutions.

Our survey data shows that 44% of businesses think they could be back up at pre-COVID cash flow levels within five months, which means … businesses [will soon need to] stand – or fall – on their own two feet,” Coghlan says.

“In recent months there has been a significant drop in the number of businesses entering into administration. The number is down 36% year-on-year – equal to 1,200 businesses that in normal times would have entered into administration. The reality is that many are synthetically propped up, so at some point insolvencies will rise.

“Australian businesses have shown incredible resilience to date.

While the reality is that not all will survive, my advice is for business leaders to arm themselves with the support and advice they need now, to successfully navigate their way out in the coming months.” AB www.brokernews.com.au

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WOMEN IN FOCUS

WOMEN IN FINANCE BLAZE A TRAIL Female brokers and finance professionals are continuing to climb the corporate ladder – and they’re building successful careers along the way.

We chat to a number of women in the running for top AMA awards about their experiences in the finance industry today

there is still some way

THOUGH to go in boosting the

participation of women in the mortgage industry – only around 25% of its workforce is comprised of females (according to MFAA figures) – there’s no denying that a growing number of high-profile women in finance are blazing their own paths forward.

At Australian Broker, we’re always keen to celebrate those in the industry who are kicking goals in their careers and helping others get ahead along the way.

In fact, for this year’s Australian Mortgage Awards in October, dozens of women have been nominated across categories such as Young Gun of the Year, Broker of the Year and Brokerage of the Year, to name a few.

More than mere multitaskers with a knack for numbers, females in finance bring their own unique qualities to an industry that can be known for being ‘black and white’.

Empathetic, generous and creative, with a predisposition to problemsolving and strategic thinking, women can bring that personal element to the broking process.

One such woman taking great strides in the industry is Melissa Ashcroft, general manager of the ‘AAA’ Financial Group, which has finance broking, planning and wholesale fund management arms. AAA Mortgages has been in business for 35 years and offers both residential and commercial lending; as a mortgage manager it has over 1,100 accredited brokers.

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“As well as being general manager of AAA, I work on commercial development finance, so I mainly do commercial brokerage. I love my job because it’s intellectually challenging while being fulfilling. I get to work with so many different people, from small business owners to big developers – and ultimately my job is to help make their dreams come true,” says Ashcroft, who is a finalist for the AMA’s Broker of the Year – Commercial award.

“There’s nothing better than

how far we’ve come in the last few years, with undoubtedly more women in mortgage broking than ever before, but there still remain broader societal obstacles that dissuade some women from entering the finance industry,” she says.

“As a woman in the industry today, I feel incredibly supported and that I have the tools to succeed, but I am very privileged to feel this way. Improvement will come from making sure every woman, no matter her cultural or social background, feels the same

“I see my role as a broker as one that financially empowers people and gives them the tools to change their circumstances” Melissa Ashcroft, general manager, ‘AAA’ Financial Group knowing you’ve helped someone finance a project that has been in the works for years, or you’ve helped a small business owner get their first loan. I see my role as a broker as one that financially empowers people and gives them the tools to change their circumstances in any way they want.”

While Ashcroft believes there are “some great initiatives to support and encourage women in our industry”, she says there is “always room for improvement”.

“It’s important to acknowledge

way. I hope we can further diversify the broking industry, which will serve only to strengthen the ideas, voices and industry standards we have today.”

Ashcroft adds that females in finance are at a unique advantage in that they “have a natural ability and desire to offer help and solve problems – and that puts us in the ideal position to be a highly respected adviser to our clients”.

“If you have a passion for this industry, then just be yourself and strive to provide the best service

you can. What you give to the industry and your clients will be paid back to you by way of a strong sense of respect, ability and job satisfaction,” she says.

Kathy Dundas, mortgage broker at No Fuss Home Loans, agrees.

When she started out in mortgage broking a little over 16 years ago, with two young sons to balance with her career, she stepped into the broking world to see if it would allow her the freedom to build her career and spend as much time with her children as possible.

Since then, she’s seen plenty of change in the broking industry but says she can’t imagine another career or sector that offers the same benefits as the finance world.

“Given my background in finance and conveyancing, I thought mortgage broking would be a good fit for me as I have always loved dealing directly with clients.

Back then, I had the luxury of my husband working in a goodpaying role, so I was able to slowly build up my business without the pressure of having a strong income from day one. But my business has grown over the years into a very profitable and strong position, with an excellent trail income and a strong customer base – and with a reasonable amount of freedom that comes with being your own boss,” Dundas explains.

“What I love about being a mortgage broker is the ability to assist clients to achieve their dreams, from the thrill of their first home purchase to building

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Melissa Ashcroft, general manager, ‘AAA’ Financial Group

investment portfolios that set them up for a comfortable retirement.

To me, there is nothing more satisfying than that call to my client once a loan is approved and they know that they are now able to fulfil their dream.”

It’s clear that Dundas, who is an AMA finalist in the category of Best Customer Service from an Individual Office, is passionate about customer service.

“The excitement and happiness of the client gives me such pleasure and makes the drama of some loan applications worth every minute of frustration. I have made so many strong friendships in this industry, both clients and colleagues.

I cannot think of any other career I could pursue that would give me these benefits,” she says.

“There is also such a strong camaradarie in the broking industry – you would think that there would be very strong competition between brokers, but I find that generally

we are very happy to offer advice and assistance to each other. The fallout from the royal commission into banking had a huge impact on our industry, and we could have just crawled under a rock and

Kathy Dundas, mortgage broker, No Fuss Home Loans

assistance more than ever.”

Even though Dundas has always worked in male-dominated industries, she says she has never looked at her gender as being a barrier or a reason not to succeed.

“I have made so many strong friendships in this industry, both clients and colleagues. I cannot think of any other career I could pursue that would give me these benefits” Kathy Dundas, mortgage broker, No Fuss Home Loans disappeared, but with the strong backing of our industry bodies we have overcome the hurdles and, amazingly, increased our value offering to a point where I believe that consumers now seek our

“I have a belief that anyone can achieve the level of success they strive for – you just have to want it and work hard for it. Personally, I have never experienced any thoughts of not being respected in

this industry,” Dundas says.

“When I started out 16 years ago, female brokers were definitely a minority group, and I sometimes did feel like I was the ‘token female’, but now at industry gatherings the number of females, especially in higher management positions, has grown to a level that I feel we are well represented.

I have the opinion that it is important to have the right person for the job, be it male or female, and to me this seems to be evident in the finance industry.”

Of course, broking isn’t the only path you can take to make an impact in this industry, as Rebecca Wadley, director and compliance manager at Numero Uno Finance, can attest.

Wadley is not an accredited broker, though her business partner is licensed to write credit; rather, her background is in compliance and financial crime, such as anti-money www.brokernews.com.au

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laundering, counterterrorism financing and fraud.

“I am very focused on managing the compliance side of our business.

Numero Uno Finance is a boutique mortgage broking business based on building lifelong relationships with our clients, and I love being the trusted point of contact to guide and support our clients through the homebuying and finance journey,” Wadley says.

It’s a strategy that is paying off: Numero Uno Finance has been nominated this year as a finalist for the AMA’s New Brokerage of the Year award.

For Wadley, it has been the support of other women that has truly helped her move the business forward.

“It’s important to surround yourself with people who know your worth and are your cheer squad. Particularly as women, sometimes we are hard on ourselves and second-guess our decision-making. Having someone in your corner to remind you of your skills and expertise can make all the difference,” she says.

“The finance industry has come a long way in terms of being more supportive of women within the industry. It’s great to see women excelling as mortgage brokers,

BDMs and relationship managers and being celebrated and supported in their careers.”

Meanwhile, Penny Huyan, director of Goldenwater in Eight Mile Plains in Southeast Queensland, has also developed a career in finance that traverses many sectors and industries.

As a business lending specialist, she primarily strategises tailored finance solutions for business customers, but Goldenwater also

robust business and financial structures that will empower their enterprise to blossom and grow. I love to go to work every day in this industry with people I respect and whose expertise helps my clients and me to flourish,” she explains.

As a female in finance, Huyan says she feels supported and equipped to succeed by those she works alongside, from aggregators and bank BDMs to

“There is always room for improvement. I think we can do more as an industry around supporting women who return … after maternity leave” Penny Huyan, director, Goldenwater has expertise in management letting rights lending and commercial lending.

“We regularly help business owners identify and secure the right opportunities, and I take on a truly collaborative role with my clients, helping them to establish

media contacts, associations and her peers.

“It’s incredible to see how many resources are available in this industry, with so many platforms and formats you can choose and engage with. For example, there are regular Woman

in Finance events, Australian Broker magazine, aggregator BDM knowledge-sharing seminars and more,” she says.

However, like Ashcroft, she says there is room for improvement.

“I think we can do more as an industry around supporting women who return to work or to their own businesses after maternity leave. I also think we can find ways to promote and support women, financially and from a mental health view, to join and start their own business in this industry.”

Huyan, who is a finalist for AMA Broker of the Year – Specialist Lending, adds that she hopes more women see the value and benefits of a career in finance, and take the plunge by engaging in this industry.

“As per the Australian Bureau of Statistics, more than 60% of small businesses close within the first three years of their start-up journey. My advice to those considering moving into broking would be to find a passion and vision in your niche area and make efforts to stick to it. And don’t be afraid of new challenges; we all need to continue to learn and grow to keep up with this fast-changing industry.” AB

AS A FEMALE IN FINANCE, WHAT SURPRISES YOU THE MOST ABOUT THIS INDUSTRY? “That relationships are more important than interest rate, product and anything to do with finance. Even though the industry is becoming increasingly automated, if you have great relationships with the clients and funders, that will persevere over anything else” Melissa Ashcroft, general manager, ‘AAA’ Financial Group

“Our resilience and ability to adapt to change. To be successful in this industry you have to be resilient. Look at all the challenges that are thrown our way! Over the last 10 years there have been continual reforms and ever-changing compliance requirements, not to mention the daily lender policy changes. Perhaps being a female in this industry is a bonus, as we are generally very resilient!

Kathy Dundas, mortgage broker, No Fuss Home Loans

“No two days are ever the same and you are always learning!”

Rebecca Wadley, director and compliance manager, Numero Uno Finance

“How fast the industry is changing. This industry is changing more rapidly ever than before. Lenders and banks are changing their policies more frequently to adapt to the evolving market. Customers’ behaviours are changing, too.

The products, services and technologies we could offer are more diversified than what’s been available in the past” Penny Huyan, director, Goldenwater

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OPINION

BANKING ON A SECURE (OPEN) DATA INFLUX July marked the start of open banking in Australia, giving consumers greater control of their data with a view to helping them better manage their finances. This creates plenty of opportunities – but also a number of potential threats

advent of open banking means that financial organisations now have the opportunity to cross-sell and tailor financial products by accessing consumer data through different authorised third-party providers and vendors.

While open banking presents new business opportunities, this more connected ecosystem further expands the cyber-attack surface and creates potential pathways for attacks.

Security teams now also face added pressure to maintain the confidentiality and integrity of data required by other global regulations – such as the GDPR (General Data Protection Regulation) and the PSD2 (Payment Services Directive 2) – when processing personal data relating to citizens of the European Union.

With banks opening their systems to authorised third-party financial service providers, security needs to form the foundation of this initiative. Therefore, it’s critical for financial leaders to focus on effective risk management in this unique, new and complex digital environment.

Following are five key considerations for successfully managing potential security risks in relation to open banking.

The first is the limitations of legacy systems. Traditional IT systems in financial organisations tend to consist of data silos and outdated operational processes that are not integrated with new market technologies and requirements.

These systems now mixed with cloudbased open banking technology make scanning for vulnerabilities in the digital environment more complex. This is because traditional vulnerability management solutions weren’t designed to handle an attack surface of this size and complexity. Therefore, organisations can completely miss critical vulnerabilities across their dynamic environments.

The second is access to critical systems and internal data. Open banking requires an effective verification and access management strategy so authorised

users can gain access to the network.

Implementing strong privileged access management protocols for sensitive data helps protect critical systems and limits access to confidential data.

The third potential security risk is the fact that Australia’s financial sector has always been an attractive target for cybercriminals, hence staying vigilant and focusing on key risks is imperative.

A report from Tenable Research has shown that 73% of vulnerabilities still exist within 30 days of the first assessment. Beyond that, 32% of those flaws still lurk after a year, and the vast majority of those over a year old are never dealt with.

The same research also found that only

THE

managing risk across third-party providers.

Every decision and technology investment made within a business has long-term implications, and this is particularly true in an open banking environment.

One solution for managing compliance and policies is to use a cloud access security broker (CASB). In an open banking environment, it’s essential that businesses secure connected SaaS applications through a security gatekeeper like a CASB to ensure security as well as prevent data loss. Integrating all applications into a central identity and access management solution can also protect data and provide a centralised platform for monitoring.

The fifth and final consideration is the

It’s critical that financial leaders focus on effective risk management in this unique, new and complex digital environment

Adam Palmer Chief cybersecurity strategist, Tenable

5.5% of organisations were able to remediate more vulnerabilities than they discovered in their systems, meaning that 94.5% of organisations are falling behind and building a deficit of vulnerabilities.

This shines a spotlight on the fact that attaining 100% remediation is unsustainable for most organisations.

With so many threat vectors and vulnerabilities emerging in the financial environment, it’s challenging for security professionals to know which ones to focus on first without the right resources and insight. This exposes organisations to excessive and unnecessary cyber risk.

By taking a risk-based approach to vulnerability management, financial organisations can focus on the vulnerabilities and assets that matter most to the business instead of wasting valuable time on vulnerabilities that have a low likelihood of being exploited.

The fourth potential issue is around

ability to measure security by risk reduction. To understand the level of risk, security leaders need to know the business and the compliance requirements, and benchmark the security program both internally and externally. By doing this, they can pinpoint their level of risk without blindly applying generic maturity levels.

The security team can focus on identifying and reducing critical vulnerabilities that are most likely to be exploited.

While open banking is kick-starting a financial revolution in Australia, it’s also providing access to a large amount of consumer data – an open target for cybercriminals. Retaining customer loyalty depends on an organisation’s ability to secure all assets and make customers feel safe. Effective cybersecurity management should be considered a cornerstone of trust to ensure both financial organisations and consumers can safely benefit from the opportunities of open banking. AB www.brokernews.com.au

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AUSSIES SWITCHING LENDERS AT RECORD RATE

BIG FOUR BANKS INTRODUCE DIGITAL SIGNATURES

Interestingly, the pandemic may have wreaked havoc on employment and finances across the country, but it hasn’t stopped homeowners from seeking out a better deal on their mortgages. Data recently made available by the ABS revealed that the total number and value of refinanced home loans peaked in May 2020. Refinancing activity recorded its largest month-on-month increase in nearly 20 years and rocketed by more than 90% year-on-year.

The total value of refinanced home loans exceeded $15.1bn in May, up 26% from the previous high of $12bn in April.

Notably, the month saw record-high numbers of both external refinance loans – those involving people switching lenders – and internal refinance loans, where customers opt to secure a better rate from their current lender. Over the month of May, the number of external refinances reached 21,473 and internal sat at 12,239. Of all refinanced loans, 64% involved Australians switching lenders – up from 58% in March this year and 56% this time last year.

It 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 provide digital verification of identity and e-signature capabilities. In July, the major banks began joining in on the action. ANZ announced its new digital signature and document execution process, which launched on 27 July. ANZ eSign enables a range of application forms to be signed digitally in both LoanApp and ApplyOnline – “saving significant time, as well as reams of paper”.

The full breadth 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. Earlier in July, NAB announced that eligible customers across the country would be able to digitally sign their home lending documentation with the eSign feature powered by DocuSign. The capability was rolled out first in Victoria from 29 June, followed by NSW from 6 July.

So it appears that brokers are still working tirelessly to find their clients better deals, and we are doing so without the need for this totally unnecessary BID dribble. I highly doubt these better outcomes would have been achieved under Hayne’s user pays model...

Broker

24

In this day and age, how is a ‘real’ signature better protection against fraud? The amount of kilometres I’ve racked up over the years to ‘get a signature’ is unreal. This seems like such a no-brainer. How has it taken a pandemic to actually bring this to reality?

Refinancing is easily 70% of my business right now. Which is bloody lucky because the banks’ turnaround times are absolutely killing us. Some of our deals have blown out not just by weeks and weeks but months and months! I have a deal from April that just got across the line this week. It’s a straightforward refinance, and the only excuse the bank could give me was, “We are just completely backed up and bogged down”. It’s never been harder in my opinion.

Brainless Broker

Bogged Down

Regional Broker

In Victoria where the actual mortgage document must have a wet signature, having the availability of digital signatures for other loan documents seems to be confusing to say the least.

In states where all documents can be digitally signed, yes, have it available. But it seems that solicitors are pushing digital signatures in states which are not fully ready for it.

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17/08/2020 12:34:14 PM

PEOPLE

Do you have a question for our broker mentors?

Email your question to:

sarahmegginson@keymedia.com

BROKER ON BROKER

Most brokers are their business, so even if they are successful, they may feel trapped in it. Otto Dargan, managing director of Home Loan Experts, shares his strategies for making sure you don’t become a slave to your enterprise

As a broker, you’re the boss, the decision-maker and the engine that drives your business. With all that responsibility, how can you avoid being ‘trapped’ in your business?

To be free of their businesses A brokers need to work on their businesses rather than in them.

At first that means more work; later it means less. The simplest things to do are usually the most effective.

When you’re training a new staff member you can ask them to write a manual as they go. That way you don’t have to keep showing them how to do the same thing, and they can hand over their role to someone else easily when they take on bigger challenges.

Q

How can brokers decide which ‘work’ to let go of in terms of effectively outsourcing so they can free up some of their time spent on fiddly tasks?

You need to focus on your A high-payoff activities. Doing the paperwork for a loan application just isn’t an effective use of a broker’s time. Good brokers should be on the phone and in meetings.

Figure out what you do that has the biggest impact, and then do more of that and less of everything else.

Then you will have more free time and can sell more.

Also, consider how much income is enough. Success is addictive, but at a certain point, spending more time on earning more money is

Q

counterproductive. If you can figure out when you should take your foot off the accelerator, then you can switch your focus and enjoy life more.

Brokers often struggle to grow past a few staff.

How would you suggest they overcome this and really kick their growth into gear?

Many brokers don’t know A enough about leadership, management and running a business – they’re very sales focused.

But if you are trying to grow and it’s not working, then there’s something stopping you. Until you learn that lesson, you’ll be stuck. I’d strongly recommend that most brokers go and do a management course – then scale their business. Management is as big an area as broking to learn – it takes about 10 years to become a great manager.

Q

How can brokers develop a strategy that plays to their strengths?

Brokers can identify their A strengths and in particular the market segments that they are exceptional at servicing. These could be first home buyers, refinancers, high-net-worth individuals, or a particular community group. The best way to identify them is by looking at your past customers and where they come from – then you can focus on those groups.

As strategy is mostly about focus, this means you have to decide to be terrible at some things, and

Q

Otto Dargan, managing director, Home Loan Experts

“Success is addictive, but at a certain point, spending more time on earning more money is counterproductive” that’s OK. Apple is terrible at making cheap phones. IKEA offers a terrible customer experience – you do everything yourself, including building the furniture!

Yet they are both very successful.

Great companies focus on what is strategically important, and they’re OK with being ‘terrible’ at the rest. AB

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

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17/08/2020 12:35:21 PM

DATA

QUEENSLAND

NT SPOTLIGHT

It seems Brisbane is being overshadowed by gains in other Queensland markets Property prices in Brisbane declined by 1.4% to $582,847 for houses and by 4.1% to $375,285 for units over the second quarter of 2020.

This is the first quarterly fall the city has recorded in the past year and the steepest decline in almost nine years.

Nicola Powell, senior research analyst at Domain, said a two-speed property market has developed across the Brisbane region.

The capital city, Moreton Bay, Redland, Scenic Rim, and Somerset reported declines in values, while prices went up in Ipswich and remained stable in Logan. Furthermore, the coastal regions are faring better than the state capital amid the impacts of the COVID-19 outbreak.

“Sunshine Coast and Gold Coast housing values outperformed Greater Brisbane over the June quarter,” Powell said. “Despite the devastating impact of the bushfires and the coronavirus pandemic, housing values are steady, illustrating the desirability of a coastal lifestyle.”

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 housing market outperformed its peers in terms of five-year price growth

DARWIN’S TALE OF TWO MARKETS While Darwin’s detached-dwellings market saw an increase in sales and a slight bump in prices, its unit market went in the opposite direction to the latest report from the Real Estate Institute of the Northern Territory (REINT), Darwin’s detached-dwellings market recorded a 10.9% rise in sales and a 1.6% gain in house prices to $477,500 in the three months to June 2020.

One of the biggest drivers of the increased sales is Darwin’s North Coastal region, comprising suburbs like Alawa, Coconut Grove, Milner, Nightcliff and Wanguri. The region posted a 25.9% jump in sales over the quarter.

Palmerston City also saw interest from buyers, hitting 11.3% growth in sales.

It was, however, a different story in the unit market. Sales of townhouses and attached dwellings in Greater Darwin declined by 11.6% over the June quarter, while the region’s median unit price retreated by 7.5% to $280,000.

ACCORDING

DARWIN’S RENTAL MARKET PERFORMANCE, JUNE 2020

Both house and unit prices in Hobart grew significantly over the past five years, rising by 57.3% and 70%, respectively. This is the strongest capital growth recorded by all the major state capitals over the five-year period.

“Hobart house prices pushed to new heights over the June quarter. Hobart was one of three cities to see houses rise in the three months to June. For the first time on record, it is now more expensive to purchase a house in Hobart than it is in Perth and Darwin,” said Nicola Powell, senior research analyst at Domain.

However, Hobart’s momentum has slowed due to COVID-19’s impacts on its economy, especially the tourism industry. While risks to its market remain, Powell said government stimulus would alleviate some of the downward pressure on prices.

“While there is no increase in urgent or distressed selling currently, risks are ahead, particularly given the extraordinary value growth and low average wage,” she said.

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

Opportunity for buyers Quentin Kilian, CEO of REINT, said the decline in unit prices presented an opportunity for investors and first home buyers, given the relative affordability of the city compared to other state capitals across Australia.

In fact, Darwin’s median unit value of $280,000 is lower than Adelaide’s $315,000, Brisbane’s $369,500, Perth’s $370,000, Hobart’s $385,000, Canberra’s $439,250, Melbourne’s $540,000 and Sydney’s $647,000.

“The median value of units in Darwin is 56% lower than Sydney’s. There is no doubt that, apart from being the best and safest place in Australia to live, Darwin offers the best value in property purchases,” Kilian said.

Source: CoreLogic June 2020 Quarterly Rental Review

$481

-1.9%

5.4%

Median rent for houses

Annual decline in rental rates for houses

Rental yield for houses

$381

0.4%

6.8%

Median rent for units

Annual gain in rental rates for units

Rental yield for units

SUBURB TO WATCH: MILNER Median price (houses) $425,000

Median price (units) $202,500

Quarterly growth

12m growth

3yr growth

Gross rental yield

10%

-9%

-15%

6%

Quarterly growth

12m growth

3yr growth

Gross rental yield

-19%

-29%

-41%

8%

www.brokernews.com.au

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17/08/2020 12:36:19 PM

AUSTRALIAN CAPITAL TERRITORY

Confidence has risen, but further stimulus is needed to boost property development Confidence in the state’s housing market improved over the last quarter but is still below pre-COVID-19 levels. Adina Cirson, executive director for the ACT at the Property Council, said this showed the continued impact of the pandemic.

“The last few months have been a challenge for all sectors across the property industry Managing this crisis has been tough ... so it is good to see that there has been an uplift in sentiment,” she said.

Cirson said the property industry would be crucial in the recovery phase. This meant the territory needed a solid pipeline of construction projects and further stimulus measures to incentivise development and increase purchaser enquiries.

“Survey participants reported having greater confidence in the ACT government’s ability to plan and manage growth than the last quarter, but cites the top critical issues for the government to stimulate growth are addressing property taxes and charges, planning and regulation, housing supply and affordability and development around transport corridors,” she said.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$710,000

1.1%

3.8%

$580

4.4%

Metro (U)

$442,025

1.1%

2.9%

$480

5.7%

WESTERN AUSTRALIA

WA’s property industry has one of the most optimistic outlooks of the state capitals

HIGHEST-YIELD SUBURBS IN THE NT Suburb

House

Gross

Median

Quarterly

12-month

Average

3-year

rental

price

growth

growth

annual

growth

growth

yield TENNANT CREEK

H

11%

$200,000

-13%

-5%

4.8%

-13%

PARAP

U

9%

$250,000

-2%

-19%

-2.7%

-39%

MILLNER

U

8%

$202,500

-19%

-29%

-3.1%

-41%

EAST SIDE

U

8%

$262,500

-11%

-28%

-1.5%

-18%

BAYVIEW

U

8%

$335,000

-5%

-12%

-3.6%

–

KATHERINE EAST

H

7%

$335,000

2%

2%

6.7%

4%

LARAPINTA

U

7%

$262,500

-4%

-5%

0.1%

While expectations of capital growth are negative for property sectors across the state, industry professionals have a positive outlook for WA’s residential construction activity.

According to a survey by ANZ and the Property Council, WA is the only state to record positive forward work expectations for the next 12 months.

Sandra Brewer, executive director for WA at the Property Council, said this optimism was likely due to the announcement of housing grants.

“I suspect the full benefit to be delivered by the state government’s $20,000 Building Bonus on top of the federal government’s $25,000 HomeBuilder [which] will underpin an improvement in December quarter sentiment,” she said.

Property industry professionals are also optimistic about the performance of the federal and state governments. They cited some of the critical issues facing the state, which include property taxes and charges, planning and regulation reform, housing supply and affordability, development around transport nodes, and vibrant city centres.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

– Metro (H)

$470,000

-1.0%

-2.3%

rent

yield

$380

4.2%

COCONUT GROVE

U

7%

$228,250

-3%

-29%

-3.2%

-50%

Metro (U)

$355,000

0.0%

-2.6%

$350

4.9%

GILLEN

U

7%

$284,000

0%

-7%

1.4%

-18%

Country (H)

$321,500

-0.9%

-1.5%

$360

5.8%

THE GAP

U

7%

$284,000

-7%

0%

-0.2%

11%

Country (U)

$188,750

-4.9%

-9.7%

$320

8.3%

www.brokernews.com.au

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17/08/2020 12:36:46 PM

DATA

NEW SOUTH WALES

For the first time since last year, Sydney’s dwelling prices have declined According to a report from Domain, the recovery of house and unit prices in Sydney was abruptly halted in the second quarter of this year, when they fell by 2% and 1.9%, respectively. Nicola Powell, senior research analyst at Domain, said the June quarter was the first to show the impact of COVID-19 on dwelling prices.

“Sydney was in an upswing prior to this interruption, highlighted by the strong annual growth, up by 10.5% for houses and 7.3% for units,” she said.

The June quarterly median prices for Sydney sit at $1.14m for houses and $735,417 for units. Powell said the price falls had been minimal due to several factors that helped support home values, including government stimulus, mortgage repayment holidays, and low interest rates.

“These are assisting many homeowners through economically challenging times and has kept distressed and urgent selling low. The risk to prices becomes greater once the stimulus measures cease and we face the fiscal cliff,” she said.

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%

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Houses

Total auctions

28

Cleared

20

Uncleared

8 71.4%

Clearance rate

PERTH Total auctions

9

Cleared

2

Uncleared

7 22.2%

Clearance rate

Capital city

Melbourne

-0.2%

-0.9%

-0.9%

8.5%

Brisbane

-0.2%

-0.4%

0.9%

3.7%

Adelaide

0.0%

0.0%

1.4%

2.6%

-0.2%

-0.6%

-1.3%

-2.7%

-0.2%

-0.7%

0.7%

7.9%

3.9%

Perth Combined 5 capitals

5.0%

$452,500 11.9%

$435

4.8%

$676,500

2.0%

7.5%

$285

$507,500

-0.8%

1.8%

$350

$514,500

-0.2%

$590,000

5.6%

$380,000

Sydney

Metro (U)

9.3%

Canberra

12-month change

3.1%

1.3%

Darwin

Year-to-date change

$430

0.0%

Hobart

Monthly change

2.7%

$385,000

Perth

Weekly change

1.4%

$300,000

Adelaide

CAPITAL CITY HOME VALUE CHANGES

$750,000

Country (U)

Sydney Melbourne Brisbane

$280,000

$0

$347,000

$100,000

$445,000

$200,000

$345,500

$300,000

$475,000

$500,000 $400,000

$379,000

$600,000

$505,000

$700,000

$540,000

$800,000

Metro (H)

Country (H)

Update from: CoreLogic Property Market Indicator Summary

Units

$900,000

$653,000

Over the June quarter, house values in metropolitan Melbourne fell by 3.5% to $864,000, ending four consecutive quarters of continuous gains. Unit values declined by 2.5% to $621,000. Despite these declines, the median prices of homes and units are still higher than they were during the same period last year, up by 6.1% and 6.4%, respectively.

Regional markets performed better, with units setting a new quarterly record for gains, posting 13.6% growth in their median value to $339,000.

The median value of regional homes also held steady, recording a 0.1% increase.

Real Estate Institute of Victoria president Leah Calnan said prices had stayed firm despite the drop in sales volume, indicating “underlying strength”. Over the June quarter, sales activity was down by 29%.

“Prices haven’t tumbled. Any home up for sale in Victoria is swamped with interest from buyers. Prices have held despite transaction volumes being down, and these are historically unprecedented times,” she said.

28

ADELAIDE

MEDIAN HOUSE AND UNIT PRICES

In spite of the doom and gloom forecasts, housing prices fell only moderately

Area

A total of 1,160 homes were taken to auction across the combined capital cities this week, a similar number to the previous week when 1,154 auctions were held and slightly higher than this time last year (1,111). The combined capital city preliminary auction clearance rate was 65.9% across 882 auction results so far this week, a little up on last week’s preliminary result of 65.3%, which later revised down to 58.7%. This time last year the final clearance rate was 67.8%.

In Melbourne, 298 homes were scheduled for auction this week, down from 357 over the previous week and 500 this time last year.

The number of auctions held across Melbourne has reduced sharply during the lockdown period, but withdrawal rates have been much lower relative to the previous lockdown period in April and early May. Sydney was host to 642 auctions this week, up from 566 over the previous week and 367 this time last year. Of the 483 auction results collected so far, 65.8% were successful; this time last year, the success rate was 76.2%.

$630,000

VICTORIA

WEEK ENDING 9 AUGUST 2020

$793,875

Area

CAPITAL CITY AUCTION CLEARANCE RATES

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

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17/08/2020 12:37:09 PM

BRISBANE CANBERRA Total auctions

41

Cleared

33

Uncleared

8

Total auctions

77

Cleared

36

Uncleared

41 46.8%

Clearance rate

73.2%

Clearance rate

SYDNEY Total auctions

483

Cleared

318

Uncleared

165 65.8%

Clearance rate

TASMANIA

MELBOURNE Total auctions

244

Total auctions

1

Cleared

178

Cleared

1

Uncleared

66

Uncleared

1

Clearance rate

Clearance rate

73.0%

SOUTH AUSTRALIA

Area

n.a.

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Confidence in this property market is high, but some remain cautious A survey by ANZ and the Property Council showed that seven in 10 property market professionals in SA are optimistic about the future impacts of COVID-19 on the state.

They expect things to improve over the next three months.

However, Daniel Gannon, executive director for SA at the Property Council, said it was going to take time for confidence to return to pre-COVID levels. Thus, caution remains despite the optimism. “It is vital for all levels of government to continue to work with the sector to ensure that landlords and tenants alike survive this hibernation period – rather than picking favourites,” he said.

A CoreLogic report showed a slight decline of 0.2% in Adelaide house prices in June. But it remains the strongest rental market, alongside Perth, of all capital cities. “These cities have also generally seen lower levels of investor participation and less’ investment grade’ construction over recent years, which has kept rental supply reasonably tight,” it 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 Sell your book. Keep your clients.

Release working capital or start succession planning.

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

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17/08/2020 12:37:33 PM

PEOPLE

Aggregator: Mortgage Choice

IN THE HOT SEAT

Clocking up almost two decades in finance as a mortgage broker, John Kennedy, principal at Mortgage Choice Mudgeeraba on the Gold Coast, has seen the industry evolve almost beyond recognition

What was your first job before you became a mortgage broker?

I am a chartered accountant, so my first job was after uni when A I worked in an accounting firm in WA. From there I spent five or six years working in London and Sydney in various project-type roles at major banks, before I ended up living and working on the Gold Coast as a mortgage broker.

Q

How and why did you make the pivot from accounting to mortgage broking?

I was working as an accountant when I relocated to Queensland A in 2000, and one of my colleagues referred me to a Mortgage Choice broker when I was looking to buy an investment property.

I’d never heard of a mortgage broker before, and after going through the process I said to my wife, “That’s a business I want to be in...”

Q

If you weren’t a mortgage broker, what would your ideal career be?

It’s hard to say where I would be if I wasn’t a broker, given that A I’ve been a broker for almost 18 years. I’d probably be in some sort of corporate role, hopefully in some form of sports administration.

Q

John Kennedy, principal, Mortgage Choice Mudgeeraba

has surprised you most during your career Q What in finance?

The amount of change. When I think back to my first years in broking A – I started out in 2002/2003 – we were using dial-up internet and faxing our loan applications off. We were using an Excel spreadsheet for a CRM. Then I look at where we are now, with full paperless applications right through to ‘DocuSigned’ loan docs and mortgages. We’re not quite there in Queensland, but I did one for a NSW purchase recently. And let’s not even mention the regulatory changes in that time!

Do you think everyday borrowers are becoming more aware of brokers and the value they can add?

I think most people are quite well educated on how brokers work, but A there is less awareness of the impact that early loan closures can have on our businesses, with clawbacks going out as far as two years. It’s one of the reasons why we prefer the client to always come back to us first,

Q

30

to see if we can assist them in restructuring their current loan before they opt for a refinance.

What’s one positive change or innovation you believe will come out of the COVID-19 pandemic?

Hopefully lenders and regulators will be more open to a complete A digital and paperless process from start to finish, including the COVID-19 relaxations for client meetings via video conferencing, etc.

Q

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

A I’d like to see more accountability from lenders around their service levels and other behaviour that directly affects us and the service we provide to borrowers; also, a more equitable policy on clawbacks when the reason for the loan closure is no fault of the broker. AB

Q

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17/08/2020 12:58:13 PM

16 OCTOBER 2020

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anz.com

* This LVR is for medical practitioners, specialists and dental practitioners. For other eligible customers, the LVR is up to 90%.

Terms, conditions, fees, charges, and credit approvals and eligibility criteria apply to ANZ home loans. Please visit anz.com.au/promo/broker for the offer terms and conditions, including how to verify customers’ qualification/registration. © Australia and New Zealand Banking Group Limited (ANZ) 2020 ABN 11 005 357 522. Australian credit licence number 234527. Item No. 97528A 07.2020 WX246080

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