Australian Broker 18.12

JUNE 2021 ISSUE 18.12

BROKERS BUILD ON SUCCESSFUL LEGACY New broker franchisees Katie Dowton, Ryan Pappas, Chantelle Rangel and Ben Courage explain how Mortgage Choice helps them reach their goals in a highly competitive industry /14 ALSO IN THIS ISSUE… Opinion Tonia Berglund of Envestnet | Yodlee on the development of open banking /20 Big deal Origin Finance’s Graeme Salt helps returning expats buy property /24 MFAA kicks off awards season Peak body announces winners of State Excellence Awards /12

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Teaching children about money Perth brokers get involved in Global Money Week /18

Broker on broker Asset finance broker Samantha Hopper talks diversification, technology /21

In the hot seat Chris Hall talks about the challenges of running his own brokerage /30

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NEWS

IN THIS SECTION

Lenders OnDeck launches lightning-fast loan product /04

Aggregators Mortgage Choice shareholders back REA Group acquisition /06

Market Jobs needed to sustain boom times, says economist /10

Industry bodies MFAA announces State Excellence Award winners /12

Technology Lend adds small business lender Limba to its platform /08

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

HOUSING BODIES, BANKS WANT END TO EVICTION MORATORIUM year since the federal moratorium on evictions was pushed back, the Mortgage Bankers Association and a coalition of real estate organisations have had enough, calling for an end to the moratorium on 30 June. In a joint letter, the group praised the steps that US President Joe Biden had taken to bring the pandemic under control and provide the relief necessary to stabilise the housing sector. But the coalition also pointed out that it was time the administration put an end to the eviction moratorium, which it described as a “nationwide one-size-fits-all, federal eviction policy” that would trap renters with insurmountable debt and impede the housing recovery. Instead, the group suggested focusing on targeted housing support for renters and housing providers in need.

A

REGULATOR TO REVIEW SALARIES AT U.S. MORTGAGE GIANTS a series of high-level exits from Fannie Mae and Freddie Mac, the US Federal Housing Finance Agency (FHFA) will review executive salaries at the two firms and the Federal Home Loan Banks. The regulator has issued a request for input (RFI) to assess if the current compensation policies of these government-sponsored enterprises are “reasonable” or “comparable.” The last time it examined the mortgage giants’ compensation rates was in 2012. Fannie and Freddie management have recently lost chief executives due to salary constraints, putting the companies at a recruitment and retention disadvantage. The FHFA’s RFI includes 25 questions designed to “enhance its ability to fulfill its statutory responsibilities to ensure that the regulated entities operate in a safe and sound manner and fulfill their statutory missions”.

FOLLOWING

www.brokernews.com.au JUNE 2021 EDITORIAL

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Editor Antony Field

Publisher/Sales Manager Simon Kerslake

News Editor Mike Wood

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CANADIAN MORTGAGE PROFESSIONAL

CANADIAN PROPERTY VALUES SOAR BUT EXPERT ISSUES WARNING has reported that the net worth of Canadian households rose sharply in the first quarter of 2021 due to accelerated growth in the value of residential real estate. In the March quarter of this year, households added approximately CAD$2trn to the Canadian financial system, StatsCan said. The 7.7% increase took the total national net worth of property as of the end of the first quarter to $14.97trn. Residential property values surged for the third straight quarter, posting a 9.4% increase. Overall real estate values grew by $750bn during the pandemic year. But Fidelity Investments’ David Wolf warned that “housing is becoming a dominant player in GDP in a way that is dangerous”. Similar conditions were apparent in Greece, Ireland and Spain just before the GFC. STATISTICS CANADA

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21/06/2021 1:52:13 pm

NEWS

LENDERS RECORD MOULA JOINS LOAN PANEL SETTLEMENTS AT BY AGGREGATOR LENDI, AUSSIE FAST has announced record results in its first month of operation since the group’s merger with Aussie Home Loans in May. The recently amalgamated mortgage group hit new heights in terms of loans settled, volume of loans, and unconditional approvals.

Lendi was up 14% on settlements compared to the previous month and 29% up on the same period in 2020, making May the best month on record.

Aussie also posted new records, with May 2021 its most successful month ever, reporting $1.9bn in settlements.

LENDI

ANZ DROPS TWO-YEAR INTEREST RATE TO UNDER 2% has launched its next move in Australia’s interest rate price war, hiking its rates across all long-term home loans but dipping its two-year rate below the symbolic 2% barrier for the first time. The hikes are substantial: 45 points have been added to the five-year rate, taking it from 2.24% to 2.69%. The four-year rate is now 2.49%, a jump of 25 points, but at the same time ANZ has slashed 10 points off its two-year rate, taking it to 1.94%.

ANZ

“Sixty-five per cent of businesses that are requesting loans for less than $100,000 are able to do the Lightning Loans process and get very quick decisions” Cameron Poolman CEO, OnDeck Australia

Greg O’Neill President and CEO, La Trobe Financial

Cameron Poolman, CEO, OnDeck Australia

ONDECK RELEASES LIGHTNING-FAST LOAN PRODUCT TO MARKET Loans for small to medium-sized businesses approved in as little as two hours – that’s what OnDeck is now offering SMEs with the launch of Lightning Loans lender OnDeck has launched a new product that could see SME customers get their loans approved within two hours.

Lightning Loans has already been trialled and will now be rolled out to commercial brokers.

The product will be capped at a maximum of $100,000 and will require just six months’ worth of bank statements to support a loan application.

It aims to take the weight off brokers by clearing up the two thirds of SME loans that can be approved with ease, allowing them to focus on more complex deals, NON-BANK

as well as drastically reducing turnaround times.

OnDeck recently announced its new KOALA Score (formally known as the Key Online Australian Lending Algorithm).

It is a risk management model that uses data and analytics to assess borrowers and give the non-bank direction regarding who it should lend to.

“That enables us to make a more predictive decision on the ability of a business to borrow money and how much we should lend them,” said OnDeck Australia CEO Cameron Poolman.

“We’re able to access more data

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and get a more predictive score.

“What Lightning Loans is about is utilising that score but building a process around it that allows us to come back with decisions for small businesses within 90 minutes.

Sixty-five per cent of businesses that are requesting loans for less than $100,000 are able to do the Lightning Loans process and get very quick decisions.

“What’s great for brokers and for customers is that they’re able to get that decision really quickly and then decide themselves whether it’s something for them. They can decide whether they want to do the project in their business: whether they want to do a marketing plan, hire new staff, or buy some plant equipment and use the asset write-off.

“We’ve had a great response from our brokers so far; they’re absolutely loving that they can get that sort of speed.”

Melbourne (03) 9225 5189 Sydney (02) 9239 3144 Adelaide (08) 8408 0800

E A S T WO O D S E C U R I T I E S . C O M . AU Australian Credit Licence N o .385467

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NEWS

A G G R E G AT O R S AFG BUYS 7.6% STAKE IN NEOBANK VOLT has formed a strategic alliance with Volt. It includes a $15m investment in the neobank, providing AFG with a 7.6% shareholding. A white label AFG Home Loans Volt-funded digital mortgage product will be offered to AFG’s network of almost 3,000 brokers, who will have access to Volt’s digital banking services and technology platform. “This alliance allows AFG Securities to harness Volt’s nimble banking solutions to deliver market-leading innovation and faster decisioning to our brokers and customers,” said AFG CEO David Bailey.

AFG

ASSET FINANCE BROKERS TO GATHER IN GOLD COAST COG Financial Services will hold its fourth annual Asset Finance Brokers Conference at the Sheraton Grand Mirage Resort on the Gold Coast on 16 and 17 September. Billed as Australia’s largest asset finance broker forum, it will bring together brokers from the CFG, Centrepoint and Platform groups. Speakers will include former governor-general and chief of the Australian Defence Force Sir Peter Cosgrove, author and journalist Peter FitzSimons, and national and foreign affairs commentator Keith Suter.

AGGREGATOR

“Having Mortgage Choice join the REA network will enable us to provide our audience with an even greater number of expert brokers to meet their financing needs” Owen Wilson CEO, REA Group

Commercial Loans

Owen Wilson, CEO, REA Group

MORTGAGE CHOICE GIVES REA GROUP ACQUISITION GREEN LIGHT Shareholders have backed a plan by Mortgage Choice to become part of global digital real estate giant REA Group, which includes brokerage Smartline at Mortgage Choice have voted overwhelmingly in favour of REA Group’s proposal to acquire the broker franchise network and aggregator.

The vote was held on 10 June, with 99.06% of ballots cast in favour of global real estate digital business REA Group’s plan to acquire 100% of shares in Mortgage Choice for $1.95 per share in a scheme of arrangement, with an enterprise value of $244m.

The resolution was confirmed at a court hearing on 17 June and the scheme became effective and binding on Mortgage Choice shareholders on 18 June.

REA Group, a subsidiary of News Corp Australia, owns SHAREHOLDERS

leading Australian residential and commercial property websites realestate.com.au and realcommercial.com.au. It also owns franchise brokerage Smartline and property websites in Asia.

Its acquisition of Mortgage Choice aims to create a leading mortgage broking business with scale, supported by REA Group’s digital expertise, property data insights and high-intent property-seeker audience.

“The proposed acquisition of Mortgage Choice is an exciting development that will bring together our well-established Smartline business and franchisee network with the complementary Mortgage Choice organisation and its significant broker footprint,” said REA Group CEO Owen Wilson

when the acquisition was first announced in March.

“Each month 12 million Australians turn to realestate.com.au to search, find and finance their next property. Together with our Smartline business, having Mortgage Choice join the REA network will enable us to provide our audience with an even greater number of expert brokers to meet their financing needs.”

Mortgage Choice CEO Susan Mitchell said the businesses were highly complementary and the acquisition would fast-track growth, boost digital pathways to bringing in new customers, and provide a stronger offering to franchisees.

Smartline CEO Sam Boer said that, like Smartline, Mortgage Choice was grounded in strong values, a commitment to innovation, value-added client services and a talented and passionate team.

“We are looking forward to working with a like-minded organisation and welcoming Mortgage Choice into the REA family,” Boer said.

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Australians love their brokers. And so does ANZ. That’s why we go the extra mile when it comes to giving you support. Our customer-facing ads highlight the importance of brokers by reminding Australians they can speak directly to you, for their home loan needs. And to ensure you get the support you need when you need it, our team of dedicated ANZ BDMs are ready to work with you.

ANZ is the bank that sees Brokers as partners.

And that all adds up to better support for your customers.

ANZ Financial Wellbeing MFAA Quarterly Survey of Brokers (September 2020), page 10, brokers’ market share of all new residential loan settlements during September 2020 quarter grew to highest share on record at 60.1% © Australia and New Zealand Banking Group Limited (ANZ) 2021 ABN 11 005 357 522. Australian credit licence number 234527.

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21/06/2021 1:53:13 pm

NEWS

TECHNOLOGY SYMPLE LOANS TO OFFER FREQUENT FLYER POINTS Symple Loans will partner with Qantas to allow eligible borrowers to receive frequent flyer points. Personal loan customers can get one Qantas point per $1 borrowed from Symple – thought to be the first such partnership in Australia. “We’re thrilled to be working with the Qantas team to further reward consumers for choosing us,” said Symple co-founder and CEO Bob Belan. “Many customers of Symple would already be Qantas Frequent Flyer members, and so this partnership really felt quite natural to us.”

FINTECH

AUSSIES KEEN TO INVEST IN CRYPTO — REPORT of Australians believe that investing in cryptocurrency is an easier way to save for a mortgage deposit than with a bank account or traditional savings, according to new research from cryptocurrency exchange platform Kraken, published on Australian FinTech. In fact, 23% of those surveyed said their interest in crypto followed a concern that the value of money in traditional savings, or cash, is decreasing. Kraken managing director for Australia Jonathon Miller said there was clearly a big market in Australia for crypto as an investment opportunity.

ONE FIFTH

“We’re delighted to welcome Limba Loans to our panel, particularly when many businesses will benefit from additional capital leading into the end of the financial year” Donelle Brooks Head of third party, Lend

Donelle Brooks, head of third party, Lend

FINTECH LEND ADDS LIMBA LOANS TO LENDER PANEL Small business lender Limba Loans has joined Lend’s finance platform, giving brokers a broader range of finance options to offer their SME clients finance fintech Lend has forged a partnership with business lender Limba Loans to help provide a wider range of financing options for SMEs. With the partnership, Lend will be able to list Limba Loans’ offerings on its platform, giving brokers the opportunity to provide alternative financing options to their clients.

Lend’s finance platform is known for its artificial intelligence technology for product–lender matching, which instantaneously provides borrowers with an overview of products that directly align with their profile and requirements. Its business loan platform features 37 lenders, COMMERCIAL

including Moula, Prospa, OnDeck and now Limba Loans.

Olly Guilleaume, general manager at Limba, said brokers who were diversifying into the small business lending space needed lenders that were responsive. He said the Lend platform would allow brokers to connect with loan specialists at Limba.

“What we like most about Lend is that they are as much about providing alternative finance options to brokers as we are,” Guillieaume said.

“Following an online Lend enquiry, brokers can deal with a real person at Limba who will take the time to understand their particular situation and walk

them through what’s required.

Coming at it from an educational and informative perspective is a cornerstone to the Lend-broker proposition as well.”

Donelle Brooks, head of third party at Lend, said the partnership would help bridge the funding gap in small to medium-sized business lending, which is estimated to be more than $90bn.

“We strongly believe in enabling businesses greater access to aligned funding solutions that alleviate working capital challenges or facilitate growth,” she said.

Brooks said many SMEs were being rejected by the major banks, making it a struggle for many to secure financing from traditional sources.

“We’re delighted to welcome Limba Loans to our lender panel, particularly at a time when many businesses will benefit from additional capital leading into the end of the financial year,” Brooks said.

AUSTRALIAN CONSUMER INTEREST IN CRYPTOCURRENCY GROWING Source: Kraken; australianfintech.com.au

22%

of Australians say investing in cryptocurrency is an easier way to save for a home deposit than with a bank account or traditional savings

8

23%

say their interest in cryptocurrency follows a concern that the value of money in savings or cash is decreasing

39%

of millennials say crypto is a good alternative to buying an investment property; 31% of Gen Zs and 24% of Gen Xs think the same

1 in 5

Australians either currently or have previously owned cryptocurrency (19%), while 14% currently have a crypto portfolio

47%

of baby boomers say they haven’t invested yet in cryptocurrency because the asset is too volatile

39%

of 18- to 35-year-olds haven’t invested yet because they don’t have the funds, while 29% say they don’t know how to go about it

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21/06/2021 1:53:22 pm

TECHNOLOGY UPDATE

RESIMAC’S RAPID GROWTH LINKED TO DIGITAL MAKEOVER

Chris Paterson, Head of Product and Commercial Operations, Resimac

has experienced massive volume growth over the past 12 months.

“We’ve had a surge in home loan applications, which is testament to our competitive offering across both prime and specialist loans,” says the leading non-bank lender’s Head of Product and Commercial Operations, Chris Paterson.

Paterson notes that simultaneously he attributes the growth to an equally significant factor, a dramatic digital transformation.

“We recognise that if we want to be a dominant alternative lender to the major banks, we need to be on point with our digital functionality,” he says.

A key element in Resimac’s growth trajectory is the dramatic increase in the volume of loans it processes through NextGen.Net’s ApplyOnline platform.

“The ApplyOnline solution has enabled us to better manage our growth by improving our application form at the point of submission as well as expediting the capture of better data,” says Paterson. He adds that “the ApplyOnline ‘Supporting Documents’ service, which we went live with in May, helps to ensure that brokers can achieve accuracy at point of sale”.

Resimac’s aim is to progress an application from submission to credit decision as quickly as RESIMAC

possible to enable brokers to focus on their next customers.

“The Supporting Documents service clearly notates the requirements needed for assessment, and implementing this service has aligned us with others in the market. The submission process will continue to evolve throughout the next 12 months,” says Paterson.

Resimac, an early adopter of ApplyOnline in 2010, offers true prime and specialist home loans.

Its diverse funding sources give the lender the flexibility to provide solutions for a broad range of customer situations.

“Their diverse global wholesale funding program ensured they were still able to deliver during COVID,” says NextGen.Net Customer Account Manager Steven Hudson.

“Where other non-bank lenders’ volumes decreased during COVID, Resimac maintained their presence.

They continued to stay in the market to deliver opportunities to their broker groups, writing significant volumes, whereas most others dropped off.”

Resimac is investing heavily into ensuring that brokers have the right products and services to serve their customers and run their businesses effectively.

“We wouldn’t have the growth we have today if it wasn’t for brokers and aggregators.

Steven Hudson, Customer Account Manager, NextGen.Net

“NextGen.Net’s relationship with aggregators and brokers complements and supports this by helping to deliver a quality experience,” says Paterson.

NextGen.Net has helped support Resimac’s growth in many ways. Importantly, says Paterson, it has facilitated the consolidation of internal processes, resulting in cost reductions, and it has assisted in generating and sustaining a good broker and customer experience throughout the whole submission process.

“The interfacing with aggregator CRMs and the validation requirements at the point of submission has also allowed the scale. This is a continual work in progress, and NextGen.Net’s support has helped greatly with this,” Paterson continues.

Resimac’s uptake of ‘Supporting Docs’ has enabled the lender to scale internally and deliver better service levels because the documentation is verified, validated, uploaded and attached to the application when it comes through.

Hudson points to the complimentary metrics comparison report NextGen.Net provides to its clients as one of the strategically significant services Resimac avails itself of.

“We provide them with a metrics assessment report on a

monthly basis that looks at six defined APRA scenarios,” he says.

“We provide insights into maximum loan amounts, assessment rates and living expenses across the market.

This month’s report revealed that Resimac was highly competitive with investment loans. That’s a potentially critical piece of data.

“Knowing how their product is ranked and rated helps them to determine policy and pricing.”

Resimac’s strong commitment to the broker channel is demonstrated by its uptake of enhanced tools such as the Supporting Documents service.

“The third party channel continues to be a major part of Resimac’s growth,” says Paterson.

“We are committed to providing brokers with the best available tools to submit applications to lenders, and ApplyOnline is one of those tools.

“NextGen.Net’s relationship with aggregators and brokers provides them with the insight necessary to continue improving and enhancing ApplyOnline, and we have seen the benefits of those insights already.

“As we continue rolling out our digital transformation, additional automation, digitisation and AI will be introduced to streamline the overall process further and expand our digital capabilities.”

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NEWS

MARKET SME CREDIT ENQUIRIES RISING, REPORT SHOWS monthly Business Risk Review by CreditorWatch has shown a 24% rise in insolvencies and a 9% increase in credit defaults among small and medium-sized businesses in the last three months.

But while the top-level stats are poor, the underlying trend is, in general, positive. “The key thing is that the broad results of the Business Risk Review for May were pretty solid and in some instances quite strong,” said CreditorWatch chief economist Harley Dale. “We’ve got a profile where defaults are falling and enquiries are rising.”

THE

DWELLING PRICE GROWTH HIGHEST IN DECADE — REIA

BOOMING BUSINESSES WILL DEPEND ON JOBS, SAYS ECONOMIST Judo Bank national economic adviser Warren Hogan has provided a mostly glowing report on Australia’s economy at a Sydney networking event for lenders and SMEs chief economist at ANZ Warren Hogan told the Business on the Beach event in Manly last month that the economy was booming.

“In this Olympic year, low inflation gives the government the green light to go for gold on unemployment,” said Hogan, who is also managing director of EQ Economics.

“For me the recovery from COVID was great; we did really well on the health front … we’re powering actually through it in terms of the recovery.”

Hogan referred to the business confidence results reported in the NAB Business Survey and the Melbourne Institute/Westpac FORMER

dwelling price growth across Australia’s capital cities has reached the highest in a decade, according to the latest Real Estate Market Facts report by the Real Estate Institute of Australia (REIA). On an annual basis, the average median house price increased by 11.1% to $874,911.

All cities except Canberra registered gains in house prices. Sydney recorded the highest median house price among all capital cities at $1.31m, which was 49.8% above than the national average. The lowest median house price of $500,000 was reported in Perth.

AVERAGE

Warren Hogan, national economic adviser, Judo Bank

survey, which showed high consumer confidence levels.

“Business confidence has gone from armageddon to the highest on record – that is, ever – in a year.

Australia’s massive deficit would shrink, he said. In the last six months the budget had improved by the equivalent of $100bn over four years.

Hogan said interest rates in the wholesale market were at zero.

“The central bank is buying these bonds, giving the money to the government, and they’re putting the money in the economy.

This is going to be as much stimulus as this country has ever seen outside of a war. The next two to three years is going to be a

massive economic boom.”

Hogan said the government’s strategy had a few “curveballs”, including closed borders and record-high job vacancies.

“Half of all the people who get employed in jobs every year in this country have basically been migrants – backpackers, students, permanent migrants. So where are they going to get the workers from?”

The government is trying to grow domestic pools of labour, but immigration is critical to economic growth, Hogan said. The next question mark would be over wages.

“The message is look after your staff and be prepared to pay up.

You’ve got to work out how to pass it on – those businesses that are going to have the toughest environment for the next couple of years are going to be those who struggle to get price rises through.”

Hogan said for SMEs revenue would not be an issue; it was about adjusting prices and managing costs.

“This is going to be as much stimulus as this country has ever seen outside of a war” Warren Hogan National economic adviser, Judo Bank

BUSINESS CONFIDENCE RISING Index

40 30 20 10 0 -10 -20 -30 -40 -50 -60 -70

10

Source: NAB and EQ Economics

Business confidence (25 years)

Mar 1997

Mar 2002

Mar 2007

Mar 2012

Mar 2017

Mar 2022

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NEWS

INDUSTRY BODIES BANKS CAN HELP PLAGUED CUSTOMERS, SAYS ABA Australian Banking Association is encouraging customers affected by the mouse plague to contact their bank for assistance, which can include deferring principal payments on business loans; credit card and personal relief; and waiving costs for withdrawing term deposits early.

ABA CEO Anna Bligh said that as the plague continues to worsen, banks are ready to assist communities and have been helping customers in need.

“Whether it be a drought, flood, COVID-19 or a mouse plague, Australian banks are committed to assisting customers in need.” Bligh said.

THE

CPA URGES GIG WORKERS TO DECLARE INCOME the leading peak body for accountants, CPA Australia, has called on the growing number of taxpayers who earn income from the gig economy to include it in their tax returns. CPA Australia’s senior manager tax policy, Elinor Kasapidis, said many people had turned to the gig economy to make ends meet during COVID-19. “The ATO is aware of these ‘side hustles’ and matches data from platforms like Uber, Airbnb and AirTasker against individuals’ tax returns.” Gig workers can claim deductions for many costs incurred in earning income.

THE

“The events of this year meant that high levels of resilience and flexibility were also necessary to achieve success” Mike Felton CEO, MFAA

Deb Purvis, winner of the MFAA SA/NT Commercial Finance Broker Award

MFAA CELEBRATES FIRST WINNERS OF STATE EXCELLENCE AWARDS The MFAA has kicked off its 2021 awards season with presentations of State Excellence Awards to winners in NSW, the ACT, South Australia and the Northern Territory MFAA has announced the winners of the 2021 State Excellence Awards for SA and the NT, as well as NSW and the ACT. The awards were presented online, with the SA/NT winners announced on 8 June and the NSW/ACT winners on 10 June.

The winners in these states, plus those in WA, Victoria/Tasmania and Queensland, to be presented later in June, will advance to the national awards, to be celebrated at a gala event in Sydney at the Fullerton Hotel on 22 July.

Sponsors include ANZ, Westpac, CBA, La Trobe Financial, Genworth, NextGen.Net, Pepper Money, Prospa, QBE, Suncorp, Teachers Mutual Bank, THE

2021 MFAA STATE EXCELLENCE AWARDS – SA/NT • BDM Award, Lender/Support Service Provider: Elizabeth James, HomeStart Finance • Equipment Finance Broker Award: Matthew Ford, Finestream Capital • Young Professional Award: Andrew Mudie, Yellow Brick Road Brighton and Matthew Ford, Finestream Capital • Newcomer Award: James Galpin, Your Friends in Finance (HT Financial Services) • BDM Award, Aggregator: Ben Livera, Mortgage Choice • Residential Finance Broker Award: Cathy Anderson, Smartline • Commercial Finance Broker Award: Deb Purvis, Robinson Sewell Partners • Customer Service Award, Individual: Pallavi Laroia, Excel Mortgages

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Paddy O’Sullivan, winner of the NSW/ACT Regional Finance Broker Award

• Community Champion Award: KD Singh, Money Merchants Financial Services • Regional Finance Broker: Aaron Vogt, Preferred Finance • Loan Administrator Award: Stephanie Miller, Aussie Prospect • Finance Broker Business Award: Rise High Financial Solutions • Customer Service Award, Business: Keylend • Diversified Business Award: Money Merchants Financial Services • Non-Major Lender Award: ING • Major Lender Award: Commonwealth Bank • Mutual/Specialty Lender Award: Resimac • Fintech Lender Award: Prospa

Australian Broker and Mortgage Professional Australia.

“In addition to the usual outstanding qualities required of our award recipients of professionalism, innovation, ethics and customer service, the events of this year meant that high levels of resilience and flexibility were also necessary to achieve success,” said MFAA CEO Mike Felton.

“These qualities have been key to our industry’s ability to adapt to COVID-related process changes, the first recession in 29 years, extended periods of lockdown and uncertainty, increased volume and extended processing times, and the commencement

of the single biggest legislative change our industry has faced in more than 10 years in the best interests duty.

“Not only has our industry adapted to an ever-changing environment and the personal challenges that the past 12 months have posed, but it also remained true to the customer-first ethos that sets our industry apart by continuing to support customers when they really needed us,” Felton said.

“While I am always proud of the hard work and professionalism of everyone in our industry, the way brokers overcame their own vulnerabilities this year, maintained focus on their customers’ needs while achieving consistently high market share results, has been nothing short of inspirational.”

See the list of SA/NT and NSW/ACT Excellence Awards winners in the table below.

2021 MFAA STATE EXCELLENCE AWARDS – NSW/ACT • Loan Administrator Award: Jenny Lam, Stoneturn • Fintech Lender Award: Prospa • Mutual/Specialty Lender Award: Pepper Money • Non-Major Lender Award: Bankwest • Major Lender Award: Macquarie Bank • BDM Award, Lender and Support Service Provider: Jess Stevens, Adelaide Bank • BDM Award, Aggregator: Greg Cooke, PLAN Australia • Equipment Finance Broker Award: Mhairi MacLeod, Astute Ability Group • Commercial Finance Broker Award: George Karam, BF Money • Diversified Business Award: Birdie Wealth

• Community Champion Award: Mhairi MacLeod, Astute Ability Group • Customer Service Award, Business: Peasy • Customer Service Award, Individual: Priscilla Tan, SF Capital Newcomer Award: Steven Korner, Glass Financial Group • Young Professional Award: Joel Wyld, Peasy • Regional Finance Broker Award: Paddy O’Sullivan, Mortgage Choice Nowra, and Loren Johnson, Aussie • Finance Broker Business Award: Loan Market Double Bay • Residential Finance Broker Award: Louisa Sanghera, Zippy Financial

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At the MFAA we provide a wide range of services, tools and resources to help our members build their business.

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To find out more about MFAA member benefits or to become a member call us on 1300 554 817 or visit mfaa.com.au J000561_MFAA Member Campaign_Ad_FA.indd 1 02-12_AB1812_News_SUBBED.indd 13

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COVER STORY

BACKING BROKERS BUILDS SUCCESS

Katie Dowton, franchise owner partner, Mortgage Choice Erina

Four new Mortgage Choice franchise owners describe their transitions to becoming brokers and explain how the support of the marketleading network has set them up for success can be a daunting experience for any young mortgage broker to enter the competitive world of lending, but even more so when they are in charge of their own brokerage.

That’s why it’s so important to have the backing of a leading broker franchise network such as Mortgage Choice to ensure brokers have the best chance of success.

Australian Broker caught up with four new Mortgage Choice franchise owners to find out IT

job in Singapore, so I took a career break and was on maternity leave,” Rangel says. “I was supporting my dad’s franchise from a marketing, loan processing, admin and customer service standpoint and basically learning the business with the intention of eventually taking over.”

Rangel, 39, completed her broking diploma and Cert IV in Singapore and spent five years learning the business and working with existing clients. She also holds a Bachelor of

“Our systems are well integrated and built in-house; they are userfriendly and constantly changing and adapting to our broker feedback” Chantelle Rangel, franchise owner, Mortgage Choice Marrickville about their journeys to becoming successful brokers. All have had the benefit of great mentors, and three of them have taken over franchises from their parents.

Chantelle Rangel Mortgage Choice Marrickville Prior to joining her father Bob’s Mortgage Choice franchise in Chatswood about 10 years ago, Chantelle Rangel worked in sales in Australia and Canada.

“When my eldest daughter was born, my husband was offered a 14

Commerce and Economics.

She learnt a lot from her father’s core values and the way he ran the business, which enticed her to take over the franchise last year and move it to Marrickville, closer to her home.

“He’s recognised as a confidante to his clients; he works hard, yet he’s always made family a priority too,” says Rangel. “He’s often referred to as ‘the kindest man’ people have met. My father has always set an impeccable moral standard for me; he treats his clients the way he would want to be treated – always with their best interest in mind.

Ben Courage, franchise owner, Mortgage Choice Tweed Heads

His mantra has always been: if you want run a successful business, you need to understand what success means for your client and help them achieve that.”

Working at Mortgage Choice for five years before taking over the franchise allowed Rangel to learn all facets of the business.

“Understanding your strengths, limitations and ROI in each area helps prioritise and plan where you should invest your time and recognise when you need to outsource.”

Rangel says Mortgage Choice supports new franchise owners through its franchise business

managers (FBMs), communications, and product and compliance teams.

“Our FBMs assist with developing business plans and strategies to grow our business, sharing similar experiences and initiatives that have worked with other franchise owners.”

The lending services team keeps brokers informed of industry changes, and the product team ensures brokers can offer clients the best products and services, while the compliance team ensures that ever-changing legal and compliance requirements are being met.

Rangel says the most invaluable support Mortgage Choice provides

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I’ve not experienced this in my 22 years of working with other companies, and it’s game changing.”

Rangel says the advantages of Mortgage Choice include its strong brand, intuitive technology systems, familial broker community, and head office support.

“It’s the fluidity that I love.

Professionally, I’m able to run a profitable business closely tied to my core values while also achieving my personal goals.”

Ben Courage Mortgage Choice Tweed Heads

Ryan Pappas, franchise owner, Mortgage Choice Sydney

Now 24 years old, Ben Courage started helping his mother, Dawn, at her Mortgage Choice franchise when he was in Year 11 at high school, and by just 18 he had become a broker.

and the best advice she has given to me is that business ownership and mortgage broking in particular is a marathon, not a sprint, and you've got to be willing to put the work in.

“If I could share my knowledge with young prospective brokers, it would be that you’re not going to be the best broker on day one, you’re going to make mistakes, but it’s actually all right. I’m still learning every day. Mum’s still in my business as a mentor, and I still bounce ideas off her.”

Courage bought the franchise last month, and the team includes his mother, another broker and two part-time admin staff.

He says Mortgage Choice’s help has been great – its Level One support means the first six loan submissions have to go through an

“See what the best in the business are doing – what’s working for them and what hasn’t. The beauty of the network is you can ask anyone anything” Ben Courage, franchise owner, Mortgage Choice Tweed Heads

Chantelle Rangel, franchise owner, Mortgage Choice Marrickville

is “our broker family”.

“You can sometimes feel isolated being a single business operator.

However, there’s such a sense of community with other MC brokers; it’s in their nature to help fellow colleagues succeed and grow.

We have internal support forums on shared lending experiences, social media forums offering mental health tips and lending advice.”

Mortgage Choice also runs Aspire, a quarterly event for female brokers that features a panel of female franchise owners talking about their challenges and successes.

“It’s not just about work; it’s about

managing your personal life as well, which I think is really key with women … I think Mortgage Choice really tries to focus on that.”

It also helps having a female CEO (Susan Mitchell) and senior female executives who make sure women are supported and connected, says Rangel.

Mortgage Choice invests heavily in technology to streamline processes, manage its clients’ financial life cycles, and run franchises efficiently.

“Our systems are well integrated and built in-house; they are userfriendly and constantly changing and adapting to our broker feedback.

“She bought [the franchise] when our family came here in 2006 from the UK,” he says. “She was working for Barclays and a few other major banks. Her idea was that we would have a more relaxed lifestyle here, and the way she saw that happening was by having her own business.”

Courage says in the early days he would attend client appointments with his mother.

“In 2013, I was thinking, what do I want to do with my career?

An opportunity popped up for me to do the Cert III in finance through school – and the school allowed me to work in the business one day a week with Mum.” Courage decided to become a mortgage broker in 2015, and in September that year he completed a Certificate IV and Diploma in Finance and Mortgage Broking. He then completed his Mortgage Choice induction in October, and by the end of the month was a fully qualified mortgage broker.

He still had lot to learn, which involved a further two years of training in each area of broking – the initial lead, interviews, submitting loans and processing applications, learning about lenders and postsettlement – all under the close guidance of mum Dawn.

“Mum is a very determined person.

She has incredible perseverance,

extra level of compliance.

“They will check that what you are putting up [to a lender] is correct.

That’s great at the start. You get feedback then and there.”

Mortgage Choice’s lending support centre also assists with more complex deals.

“You can run any scenario by them; they have a wealth of knowledge,” Courage says.

He adds that the best PD sessions it offers new brokers are the Q&A panel discussions involving existing franchisees. “See what the best in the business are doing – what’s working for them and what hasn’t. The beauty of the network is you can ask anyone anything.”

Being near the Queensland border, Courage is part of a group of Gold Coast franchisees that market collaboratively, sharing the costs.

“We have fantastic market share because of that … we have great FBM support. Debbie Chambers is our state manager; I know I can call her any time. ” Mortgage Choice’s technology is market-leading, says Courage.

“Certainly on their Broker Platform and File Manager, and that’s the day-to-day running of the business.”

Courage urges new brokers to give themselves plenty of lead-in time and to acquire the necessary skills before taking on a franchise. www.brokernews.com.au

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Katie Dowton Mortgage Choice Erina Award-winning broker Katie Dowton, who is both an MPA and MFAA Young Gun, joined Mortgage Choice as a broker assistant in 2017 at the age of just 19, then became a fully fledged broker in 2018 and a franchise owner partner in July 2019.

Dowton’s franchise partners are Anthony Knight, who has owned the business for more than 20 years,

made the transition so much easier.

“Anthony Knight was my mentor, and without him I don’t think I would have been able to learn everything that I have in such a short amount of time.”

The best piece of advice Knight shared was “always have in your mind that you’re going to write the business” when meeting a client.

“There’s a lot of support within the network and through the conferences, and you do develop

“Brand recognition is a massive benefit of Mortgage Choice. They are constantly researching the market and finding out what people want” Katie Dowton, franchise owner partner, Mortgage Choice Erina and Luke Whitbread.

Dowton, now 23, joined ANZ straight out of school, but says she decided it wasn’t for her.

“I started having conversations with other brokers who were coming into the branch,” says Dowton. “An opportunity came up at Mortgage Choice in Erina, a lot closer to home.”

Dowton says she had to learn how to deal with clients from all walks of life, from tradies to doctors.

“The biggest thing for me was being a young female and working out how to be taken seriously and build trust with my clients regardless of my inexperience in the beginning.”

Mortgage Choice’s Aspire program for women is great, says Dowton.

“Some of the most successful franchises in the country are femaleowned, and hearing their stories, being able to talk with them and getting their advice is very beneficial.”

Dowton says starting from the bottom and gradually learning all the steps in the broking process has

those friendly relationships with people,” Dowton says. “It’s really helpful to be able to bounce ideas off different people.

“Brand recognition is a massive benefit of Mortgage Choice. They are constantly researching the market and finding out what people want and how we can deliver on that.”

Dowton says when she has a tricky deal Mortgage Choice has a team that can assist with loan structuring.

“Mortgage Choice also provides a massive amount of support in relation to marketing; there’s so many resources online for us to access. They will create the content and sometimes even schedule it.”

Broker Platform and File Manager have streamlined processes and improved efficiency, Dowton says, and Mortgage Choice’s lending centre toolkit is also very helpful.

“That’s probably the best tool we have access to because everything’s summarised in that one place – it tells you lender service levels, who will go second mortgage, how much overtime you can use, or if they’ll

take bonus or commission payments.

“The support you receive from Mortgage Choice and the wealth of knowledge we have access to throughout the whole network is invaluable. It certainly makes success a lot easier to achieve.”

Ryan Pappas Mortgage Choice Sydney Ryan Pappas finished school in 2013 after Year 12 and started in mortgage broking in 2014 at the Mortgage Choice franchise owned by his father, Paul, on Pitt Street.

“I first started doing administration, paperwork, following up lenders, etc., then over the years worked my way up to relationship manager and then mortgage broker,” says Pappas.

“Starting in administration assisted me to understand the ropes and how lenders work, which has benefited me substantially as a mortgage broker.”

The 25-year-old became a qualified broker in 2015 but says it wasn’t until 2016 that he was dealing with clients.

“You want a network like Mortgage Choice because of the support it provides on how to structure a deal, talk to banks, look at a scenario” Ryan Pappas, franchise owner, Mortgage Choice Sydney “It’s important to understand policies, scenarios, everything before you start giving advice. My biggest concern at the start was that I was 18, 19 years of age giving advice to people on million-dollar loans, so that’s why I wanted to understand the ropes before I deep-dived into it.”

Pappas took over his dad’s franchise in January 2020 but says COVID-19 had little effect due to the business having all the

MORTGAGE CHOICE AT A GLANCE Broker numbers

524

loan writers (as at 31 May)

$54.1bn

loan book (as at Dec 2020)

16

362

franchise owners (as at 31 May)

22%

growth in settlements in six months to Dec 2020

technology in place already.

“Productivity skyrocketed with digitisation – not having to go out to see every lead. At the end of 2019 we were settling $50m [in loans]; last year we settled $70m, and this year I am trying to hit $80m to $100m.”

Pappas says part of the reason the business is in such good shape is due to his father, who has been in banking and broking for more than 25 years.

“If I was starting 2020 as a greenfield, with no loan book, no clientele, it would have been very difficult,” he says.

“My father taught me one main rule: keep it simple. Put yourself in the client’s shoes and always act in their best interest. Focus on the customer and set expectations and the rest will come.

Pappas says he was fortunate that he had the support of his father and understood broking when he took over the franchise, and Mortgage Choice has a substantial learning and development team that can train new brokers.

“You want a network like

Lending panel

33

3

residential lenders

commercial lenders

2

white label products – Mortgage Choice Home Loans Ignite (with Pepper Money) and Mortgage Choice Home Loans Propel (with Australian Mortgage Marketplace)

Mortgage Choice because of the support it provides on how to structure a deal, enter into a system, talk to banks, look at a scenario.

“The support network that Mortgage Choice has is the best in the industry by far. I can confidentially ring up any broker in the network, and they will assist me with a scenario or even use their office to meet a client.”

Pappa says he selected Mortgage Choice because people buy brands.

“People won’t buy Ryan Pappas home loans, but they’ll buy Mortgage Choice home loans. The other reason is all the stuff that comes with it – marketing, IT, loan payments, I don’t have to worry about that. This means I can focus on servicing the customers.”

He says Mortgage Choice’s Broker Platform is also market-leading and simple.

“The lending centre is easy to navigate as well. Simplicity is a huge factor in the overall system, which is amazing.” AB

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Australia's most flexible non-bank lender

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NE WS ANALYSIS

TEACHING CHILDREN FINANCIAL LITERACY

Who better to teach children about managing money than the people who help their clients reach their financial goals every day – brokers. Australian Broker spoke to two Perth brokers about their involvement in Global Money Week

there’s one thing COVID-19 has taught us, it’s the importance of taking control of our finances.

Families had to tighten their belts during the height of the pandemic last year, with many people forced to rely on JobKeeper and JobSeeker to survive. Even those whose jobs weren’t affected have had more time to focus on the family budget, especially paying down debt and saving money.

But financial literacy should not just be a priority for adults; it needs to be taught to children as well.

Since 2012, Global Money Week has been raising awareness of the importance of ensuring children and young people are financially aware and are acquiring the skills they need to make sound financial decisions.

Organised by the OECD International Network on Financial Education, Global Money Week has reached more than 40 million children in 175 countries.

In Australia, it has been supported by ASIC and the MFAA, with the peak body encouraging its broker members to teach students about financial literacy.

Two Perth brokers who have done just that are Gerhard Sifkovits of Elite Finance Australia and Nicole Harvey of Smartline Personal Mortgage Advisers.

Sifkovits has been a broker since 2018 and won the 2020 MFAA Newcomer of the Year award for WA after working as a chef all over the world for 23 years. He studied accounting but says he wasn’t exactly inspired by it, so he completed a Diploma in Mortgage and Finance Broking and joined the MFAA. IF

18

“I emphasise the difference between debit and credit cards in the hope that our kids will adopt a save-before-you-spend habit” Gerhard Sifkovits, finance and mortgage broker, Elite Finance Australia “I love the monthly catch-ups the MFAA offers,” he says. “Those meetings always have industry experts as guest speakers; that’s just one of the ways the MFAA ensures we keep up to date with the ever-changing landscape.”

Sifkovits says he came to realise there was a lack of understanding of basic finance, “with lots of people failing to adhere to those basic principles and not understanding the consequences of their financial behaviour”.

“As a broker we can make a massive difference in people’s lives in helping them to tidy up their financials and training them to be more financially savvy. So when

they get themselves into the biggest commitment they make in their life we know that they are ready.

“The Global Money Week initiative is a great way to get the attention of the younger age group and teach them about good savings and spending patterns up to high-school age where it starts to get a bit more sophisticated.

“This is a fantastic resource that is provided by the Global Money Week initiative and made available through the MFAA.” Sifkovits has three children, and his two younger ones attend Maida Vale Primary School, where he presented Global Money Week lessons for two years running.

“Unfortunately, COVID has prevented a third year happening [in 2021], but I’m looking forward to presenting again in the future.”

The aim of the lessons is to get children to form a healthy relationship with their finances and understand that financial wealth is created over time and requires discipline.

“At school I’m talking about a saving/spending pattern and how to always put some of your pocket money aside to save for the longer term.

“I am also the school banking coordinator, which works hand in hand with the Global Money Week initiative as we can prove the creating-wealth-over-time component. I also emphasise the difference between debit and credit cards in the hope that our kids will adopt a save-before-you-spend habit rather than our current ‘spend now, pay later’ behaviour.”

Sifkovits says it’s very important to teach young people about the value of money and savings, and he encouraged brokers to get

GLOBAL MONEY WEEK’S WORLDWIDE REACH SINCE INITIATIVE BEGAN IN 2012 Source: globalmoneyweek.org

175

countries and overseas territories

40,200,000 children and youth

465,000 activities and events

63,000 organisations

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Gerhard Sifkovits, finance and mortgage broker, Elite Finance Australia

involved in Global Money Week.

“We are living in a spending society with products ready at your fingertips even if we don’t have the money for it, for example Afterpay, Zip Pay, storecards.

“Looking back at my life, I never had any other loan except a home loan, and once tried a credit card with a $1,000 limit just to find out that it costs too much money and doesn’t add value. So I cut it up and closed the account. I suppose this behaviour was adopted from my parents who taught me how to manage my finances.”

Sifkovits says these days most children see “parents swiping a card or getting a delivery made to the door without the exchange of physical money”.

“We need to start to teach kids from an early age to ensure that they have the fundamentals and a sound understanding [of finance] when they become adults.

Global Money Week Initiative is the right pathway to introduce those fundamentals.”

Sifkovits says the school curriculum should include financial literacy.

“I would love to imagine a world where everyone has at least 10% savings when applying for a loan, and no or low levels of debt. Imagine

what difference that would make for us brokers not needing to worry if our clients actually understood what we spoke about in the meeting as they already had sufficient enough knowledge.”

Nicole Harvey has two sons, Tyson, aged 12, and Marcus, 11. She has been a broker at Smartline for five years.

“I joined Smartline in 2016,” says Harvey. “I approached Smartline

Nicole Harvey, mortgage adviser, Smartline Personal Mortgage Advisers

despite the fact we were so busy, ‘Do it – you’ve been banging on about it’. So I managed to get it together for the next day.

“A key point I took on was that schools were encouraging saving – they have opportunities for banking every week. However, to me that isn’t enough. So what I presented to the Year 9 and 10 students was an extension of that.”

Harvey says she started the lesson

“I believe that financial literacy is one of the best gifts we can give to our kids” Nicole Harvey, mortgage adviser, Smartline Personal Mortgage Advisers because I was looking for a familyfriendly company where I could do what I love and still be there for the boys. I was so fortunate that they found me a place in one of the franchises – Victoria Park – and I became an MFAA member.”

Harvey says she has had the privilege of taking part in Global Money Week, delivering financial literacy sessions to students at Perth high school Shenton College.

“It was very much last-minute notice; however, as my boss said,

with a focus on ‘needs versus wants’.

“It sounds simple, but when kids are bamboozled by the media via devices and TV, it’s about explaining that they have a choice and they have the resources at their fingertips to make a better-informed decision.”

Harvey also talked to the students about securing their first part-time job – “starting with choosing a bank for their pay to go into, the choices they can look into, getting a tax file number, and talking about superannuation when that

comes into play. Letting them know that if they aren’t being paid correctly, or are bullied in the workplace, they have a voice with support”.

Harvey also explained to the students what a credit report is, how it can affect you in the future, and ways to eliminate the chances of having a poor credit report.

“I believe that financial literacy is one of the best gifts we can give to our kids. It needs to encompass so many things, the main one being that if you can give kids the tools to make their financial journey with clear boundaries, we can set them up for a healthy financial journey where they will be better equipped when it comes to getting their first job and less likely to experience financial burden in the future.”

Harvey says financial literacy should be a core subject from primary school age, and if schools aren’t able to facilitate that it should be brokers who volunteer to provide this education.

WA School Curriculum and Standards Authority executive Allan Blagaich says Western Australia’s mandated maths, humanities and social sciences curriculum includes consumer and financial literacy learning for students from pre-primary to Year 10. AB www.brokernews.com.au

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OPINION

FROM SCREEN SCRAPING TO OPEN BANKING Former Westpac head of SME lending Tonia Berglund is the director of product at data aggregation and analytics platform Envestnet | Yodlee. She discusses the development of open banking and its advantages over screen scraping share account and transaction data. These significant advancements are unlocking the potential for more types of financial service providers to benefit from open banking, and are allowing Australia to take major strides towards an open data economy.

Envestnet | Yodlee became just the eighth company and one of the first international intermediaries to receive CDR accreditation, joining the likes of Commonwealth Bank, Regional Australia Bank and Intuit. This is a testament to the commitment to enabling innovation in Australian financial services.

CDR-compliant service providers, like Envestnet | Yodlee, can enable their

more than 20 years, screen scraping has been the technical means of accessing consumer-permissioned financial data for financial service providers worldwide.

This process allows companies to gather their customers’ financial transaction data from a number of providers to form a comprehensive picture of a consumer’s financial position, to inform lending decisions or provide advice. Upon being granted access by the end consumer, these third-party companies log in to the providers’ consumer-facing interfaces on behalf of a financial institution’s customers and gather the required data from that website or source.

In recent years, the concept of open banking has been rapidly developing in Australia and around the world, driven by increased demand for consumer control, protection and transparency. Open banking involves organisations sharing their banking data with accredited third parties to help with broad-use cases such as improving lending decisions, tracking spending behaviours and comparing products and services. It relies on APIs (application programming interfaces), rather than screen scraping, which allow an application to interact seamlessly with systems designed for this purpose. This provides uniformly consistent and resilient access to data with reduced security and operational risks for all parties.

FOR

Regulatory landscape In August 2019, Australia passed the Consumer Data Right legislation, which gives consumers control of their data and enables them to freely grant and revoke access to accredited third parties.

This was initially only available to customers of Australia’s big four banks to share data relating to credit cards, debit cards and deposit accounts. The process of expanding this to home loans, personal loans and joint accounts began late last year and, as of July 2021, all non-major accredited deposit-taking institutions will be required to allow customers to 20

outcomes, and receive smart nudges and suggestions. As the open banking market continues to develop, more companies will be able to seamlessly integrate data from a number of sources, ultimately empowering consumers to take control of their lifestyle and finances.

Still a place for screen scraping This open banking future is, however, still in its initial phases. There are a number of data sources, including some business, superannuation and investment accounts, that cannot be accessed as they are out of the scope of open banking. For any company that utilises these types of data,

Open banking is far quicker than screen scraping as it establishes a direct connection rather than having to navigate a website customers to more easily achieve and maintain their accreditation under CDR by passing along solutions such as quality data and developer experience.

Tonia Berglund Director of product, Envestnet | Yodlee

Advantages of open banking Open banking promises a number of advantages over unregulated screen scraping. Perhaps most importantly, it is more secure and transparent in the way that consumers are able to grant and revoke access to their data without third parties needing to access their login details. Furthermore, it is far quicker than screen scraping as it establishes a direct connection rather than having to navigate a website.

While open banking is still in its infancy, companies like 86 400, a leading Australian neobank, are already using data aggregation capabilities to give their customers the ability to see all their accounts from over 100 financial institutions in one place. As a result, customers are able to see a full picture of their financial standing, use tools and services that deliver better lifestyle

this drawback will delay a full switch to open banking and make a hybrid model seem far more appealing for the foreseeable future – until open finance makes its full debut.

While open banking promises a number of important benefits, the barriers to entry remain steep. Becoming CDR-accredited is currently a time-consuming and costly process – smaller firms and start-ups that want to put data at the core of their operations are expected to continue relying on secure and responsible forms of screen scraping until these barriers can be overcome.

With this in mind, the next one to two years are expected to see the open banking market mature significantly as financial institutions apply to become accredited data recipients and more legislation is passed to cover a wider range of data sources. Screen scraping will continue to be a relevant and useful technology for a broad range of complementary use cases; however, open banking is set to take centre stage as Australia continues its march towards an open data economy. AB

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PEOPLE

Do you have a question for our broker mentors?

Email your question to:

antony.field@keymedia.com

BROKER ON BROKER

Samantha Hopper is the director of Gold Coast brokerage FD Finance, specialising in asset and equipment lending. The yoga and Pilates teacher – she still teaches Pilates every day – set up the business after becoming a mum three years ago, when she was in need of a career change. Hopper discusses diversification, clients, technology and mentoring

As a residential mortgage broker, how can I diversify into equipment and asset finance?

If you are a residential A mortgage broker and you want to expand or transition into asset and equipment lending, I would firstly suggest studying. The process involves an entirely different skill set. The applications are different, as are the requirements and policies of each lender. You need to know the market, what you can offer, and what is going to be required from your customers to gain finance. A mentor could be a great first step. You could shadow/assist on some deals to gain an understanding of how asset and equipment finance works from submission stage through to settlement. Learn the new skills required and you will be able to diversify into that sector.

Q

What’s the best way for a broker to find new clients?

Existing customers are always A a great place to start. Contact your existing database – see what they have coming up in the future; ask how business is going; keep in touch with their business growth and development. Are they planning any future purchases soon? Make notes and get back in contact when they are in need of your finance support. I find suppliers to be a great way of finding new clients. If I settle a deal for a supplier that I haven’t come across before, I will always call and

Q

introduce myself. That supplier may have other customers needing finance.

Technology is on the rise.

What are the best tech tools for efficiency and speed?

Yes, technology is on the rise.

A Thank goodness. As a young professional only three years into the finance industry, I find many lenders’ procedures very old school; I still believe there is quite a way to go. However, if you have access to digitalising everything, this will make the life of the broker, customer and lender much more efficient. Access to a great simple calculator is also going to make your life much easier.

Q

How important is it to have a mentor when you are starting your career as a broker?

I consider myself very lucky to A have had a wonderful mentor when I started out as a broker.

A mentor will give you the focus and attention that is often required at the start of your career. It takes time to practise finance; it takes time to master any new skill.

A mentor can assist you with learning the lingo and working through complicated deals. I know I personally gained a lot of confidence knowing I could always call my mentor when I was unsure of anything. The more experience they have in the industry, the more knowledge they will be able to share with you. AB

Q

Samantha Hopper, finance broker and director, FD Finance

“I find suppliers to be a great way of finding new clients. If I settle a deal for a supplier I haven’t come across before, I call and introduce myself ”

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.

www.brokernews.com.au

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21/06/2021 1:02:21 pm

FE AT URES

INDUSTRY E VENT

BRINGING LENDERS AND BUSINESSES TOGETHER

Sydney commercial finance broker Rachel Hind knew she had to act when she talked to many small business owners who didn’t know where to turn to access loans following a COVID-19 lockdown a coronavirus outbreak forced residents of Sydney’s Northern Beaches into lockdown for three weeks over the Christmas and New Year period, Best Capital founder and CEO Rachel Hind wanted to help.

Hind has more than 25 years’ experience in the finance industry, having worked in senior roles at ANZ, Westpac, Lloyds Bank, Barclays Bank and Lehman Brothers. She is also an accountant and lawyer.

Her brokerage, Best Capital, specialises in commercial property, equipment and asset finance, as well as residential loans.

A Northern Beaches resident herself, Hind made it her mission to visit 28 businesses in 28 days in February, to find out how business owners were coping and offer advice on how they could bounce back.

Hind was surprised by what she discovered: half of the businesses did not know where to get a loan other than from their own bank. So she organised Business on the Beach, a networking event at St Matthews Manly last month, inviting local SME owners to connect with 11 lenders, including Westpac, BOQ and Judo Bank, as well as non-banks ScotPac, BizCap and Lumi, in order to learn about their finance options.

The event was also supported

by NSW MP for Manly James Griffin, Northern Beaches Mayor Michael Regan and Deputy Mayor Candy Bingham.

Warren Hogan, Judo Bank’s economic adviser and managing director of EQ Economics, provided an update on the booming Australian economy (see story on page 10).

Hind also spoke to the audience about the findings of a Lend national survey of small businesses.

“Over 40% of people did not know WHEN

Rachel Hind, founder and CEO, Best Capital

Karen Carter, head of commercial broker, BOQ

Abraham White, co-founder, BizCap

Yanir Yakutiel, founder and CEO, Lumi

Kamsen Rajah, BDM, ScotPac Business Finance

Angelina Bernal, national partnerships director, Judo Bank

22

where to go for funding outside of their existing bank,” she said, while her own feedback from the Northern Beaches showed it was 50%.

“Two out of three said they are looking to change their funding mix this year to grow – they need more funding to grow. COVID was pretty crappy for most businesses; 2021’s looking great – I want to grow, but where do I go?”

Hind said a quote from ScotPac’s SME Growth Index survey summed it up well: “Those small businesses who have in place a clear strategy and who have secured appropriate funding will put themselves in the strongest position for what 2021 will bring.

“That aligns with the stats, with the feedback I had and with market research,” said Hind. “Funding and cash flow is key.”

She highlighted how lenders could support SMEs. “Lenders can help you buy equipment, help you pay wages, pay debt, refinance existing debt; they can help you buy your trading premises, which is happening a lot right now. In a lot of instances, it’s actually cheaper to buy your trading premises than actually lease it.

“They can help you buy stock, pay suppliers and help with your working capital.”

Hind said a lot of businesses in the Northern Beaches told her, “Yeah, that’s great, but there’s quite often barriers to getting funding – all the policies, it’s just too strict and complex”.

Other barriers mentioned were the time it took to get a decision on funding, and concern about having to put up their own homes as personal security.

Hind said there were key moments when businesses needed finance,

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Rachel Hind and the lenders panel at Business on the Beach

for example when they were falling behind on payments, such as ATO or super; or had to turn away future orders due to an inability to cope with growth; or they were relying too much on personal funds such as overdrafts and the equity in their homes.

A panel of six bank and non-bank lenders explained how their loan products could assist small business owners with their finance needs. The panellists were BizCap co-founder Abraham White; ScotPac Business Finance BDM Kamsen Rajah; Lumi founder and CEO Yanir Yakutiel; Judo Bank national partnerships director Angelina Bernal; senior partnership manager, Westpac commercial introducer Richa Bhargava; and BOQ head of commercial broker Karen Carter.

Hind presented a case study to the panel – a large cafe with business-to-business and consumer customers in need of a cash injection.

In 2019, it had made a good profit, but in 2020 it experienced a net loss, while 2021 was looking good with 40% revenue growth.

“Monthly turnover’s going good; it’s got future orders, a good pipeline and good revenue growth,” Hind said.

The cafe’s unpaid invoices and supplier costs had risen, and it was looking for a quick cash flow injection, preferably via an unsecured loan.

There was also the potential to buy the business premises instead of leasing it.

Hind asked the lenders what products they could offer to help the cafe.

White said BizCap would recommend a cash flow loan based

on providing up to 90% of the business’s revenue.

“We do non-asset-backed loans from $5,000 to $750,000. The client may need it for the short term based on the fact that they have these huge invoices that aren’t being paid on time,” White said.

BizCap also offered early payment discounts for paying off loans in two to six weeks.

“Also, we can do add-ons, so four to

it was up to the business owner to realise the total assets they had and settle on the best funding solution.

Rajah said ScotPac could provide invoice finance to help with cash flow and turn unpaid customer invoices into a source of funding. It could offer a line of credit with no property security required for amounts ranging from $10,000 to $150m.

“By looking at your interims or your management accounts, it’s

“Lenders can help you buy equipment, help you pay wages, pay debt, refinance existing debt; they can help you buy your trading premises” Rachel Hind, founder and CEO, Best Capital six weeks after we fund them initially we’ll give them more money on top,” White said.

Yakutiel said Lumi was also a cash flow lender with a suite of products it could offer the customer.

He suggested a term loan to pay off initial outgoings such as invoices.

“We also have a line-of-credit product where you can be approved for a facility and you can draw in and out, which is like an overdraft.

The customer can use the funds they actually need at any point in time and only pay interest on the funds drawn.”

Lumi offers both secured and unsecured loans, and Yakutiel said

considering your current and future performance, including money owed to the business,” Rajah said. “ATO debt is not a problem; we can help fund that too.”

Bernal said Judo Bank’s lending book had tripled from $1bn at the start of 2020 to more than $3bn now, and it understood how businesses had been affected by COVID-19.

The cafe scenario was not a typical one for Judo, but it had a broad set of guidelines and could offer different options, including a line of credit for cash flow, a finance facility for kitchen equipment, and a business loan to buy the trading

premises. Loans ranged from $250,000 to $20m.

“Collateral is not key for us, so it’s more about understanding the client themselves, their experience in the industry, their capacity and their cash flow,” Bernal said.

Carter said BOQ had a passion for small business, with branches owned by individuals and business owners across Australia. “We are looking to expand our branch network, which is a key point of difference when you consider there are a lot of branches being shut down.”

BOQ could offer a funding line with a term of 25 years.

“We can go up to 80% [LVR], up to $3m for a commercial property, give five-by-five interest-only term to help with the cash flow. We would help with the equipment finance.”

Westpac works with business customers as their trusted adviser, Bhargava said. “We want to be their business partner, so your success is our success.”

Westpac could offer the cafe a range of solutions, she said. It has a debtor finance facility, leveraging up to 85% of the debtor book.

“A client can upload an invoice, and within four hours we can pay 85% of the invoice; they pay the supplier, the supplier is happy, and maybe they get better terms with the supplier and increase their profit margin.”

Westpac also has an overdraft secured by property and could help SMEs buy their premises, as well as purchase equipment unsecured. AB www.brokernews.com.au

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21/06/2021 1:03:04 pm

PEOPLE

Have an interesting deal?

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

antony.field@keymedia.com

BIG DEAL Graeme Salt is director of The Futurus Group, which includes Origin Finance, Chan & Naylor Finance and Walker and Miller Training.

Brokerage Origin Finance helped a couple who had moved their business from London back to Sydney and wanted to buy a property THE FACTS

Client Self-employed couple who had just returned to Australia

Loan size and term $1.7m

Goal To purchase a $2.8m property with a full-doc loan at sharp rates

Location Avalon Beach, NSW

Origin Finance recently arranged a full-doc loan for a $2.8m purchase by clients who had only just returned to Australia and set up their new business.

We wanted to ensure they got a good rate, rather than having to pay an expat rate.

This sounds like an impossible task, but a collaborative approach between Origin Finance and the clients, and an open-minded lender, made this a fairly straightforward deal.

The clients had noticed that in 2020 property prices were starting to take off.

They had previously contacted another broker, from whom they never heard back – presumably because the scenario was too complicated.

The clients were referred to us in November 2020. An initial consultation indicated that, to make this deal fly, we had to prove continuity of business income from their London to Sydney operations.

We workshopped the scenario with a few funders, and Mortgage Mart proved the most receptive. An initial briefing with a Mortgage Mart BDM also meant the funder would be receptive to the loan application.

Pre-approval was arranged in February 2021, and the clients moved into their new home in May. Mortgage Mart’s interest rates are good, maybe slightly higher than if the clients had gone with a bank lender. But that would have meant waiting for two years to get finance, and by then property would have been a few hundred thousand dollars more expensive.

The clients were ‘quids in’ with Mortgage Mart and happy in their home.

THE TAKEAWAYS

This was a deal that made sense, combined with strong servicing and a low LVR. Most mortgage managers have the

This deal proved stronger in a COVID world; we have all learnt to make our businesses run from home

THE SOLUTION

24

Aggregator Choice

Our clients are business coaches, and their clients are often executives from blue-chip organisations all over the world.

In 2020, they moved their business to Zoom and then realised they could still serve their clients from Sydney’s

THE SCENARIO

We spoke to the clients in November 2020, and they moved into their home in May 2021. In between, we had to demonstrate that, although they had just returned to Sydney, their business was essentially the same as it was in London.

Lender Mortgage Mart of Australia

80% and reflected UK tax law to add back NPAT • evidence that the clients’ recently closed NatWest mortgage in London had been well conducted • references from the clients’ clients • the clients’ UK credit files • references from their UK accountant • the clients’ CVs • evidence to show the Australian Pty Ltd, though new, was successful, notably: » one BAS statement » bank details » MYOB statements

Graeme Salt Director, The Futurus Group and Origin Finance

Northern Beaches rather than London’s grey. For Origin Finance, the trick was to demonstrate to a lender that the clients’ business was essentially the same, except that it was now a new Pty Ltd invoicing in Australian dollars, rather than a PLC invoicing in British pounds.

A meeting with the clients soon had us all on the same page. We needed to get UK financial statements and references from their clients confirming that they would still use the business’s services.

We even submitted as evidence an article the clients had written in a quality Fleet Street newspaper on why they were returning to Australia and how their business could still be successful.

It took us a while to assemble the application for Mortgage Mart. It helped that the LVR was low, but we had to demonstrate that these were top-drawer clients. We provided: • financial statements going back five years, which shaded the currency at

ability to look through standard policy to manage risk and approve sensible deals.

Mortgage Mart proved this in spades: whoever heard of a full-doc loan with one BAS? By working with the mortgage manager and the clients, we built up such a powerful application that the funder was keen for the business. This deal also proved stronger in a COVID world; we have all learnt to make our businesses run from home.

In our initial briefing to Mortgage Mart, we said of the clients: “They manage the same clients via Zoom, etc. In essence, nothing has changed except that they are now invoicing in dollars rather than pounds.” In a COVID world, our clients are offering the same service, whether in Sydney or London.

The other takeaway is to never stop talking to the universe. The clients were referred to me by an old swimming buddy who I now only interact with on Facebook.

The clients have since referred other people to Origin Finance. AB

www.brokernews.com.au

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21/06/2021 3:34:40 pm

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21/06/2021 3:34:48 pm

DATA

i

VICTORIA

SA SPOTLIGHT

Buyer demand on the rise in Greater Bendigo and the Macedon Ranges Favourable market conditions continue to boost demand for dwellings in the Greater Bendigo region and the Macedon Ranges, according to the latest Herron Todd White report.

“Housing supply within the Bendigo CBD has become very limited in recent months due to significant growth in demand for housing, and competing buyers,” said James Watson, a local valuer at HTW. Other areas like Elmore and Goornong, which have historically received less attention from non-local buyers due to their distance from major services and infrastructure in Bendigo, are growing in popularity. The housing market in the Macedon Ranges is also seeing a surge in demand, driven by expats and relocators from Melbourne.

“Macedon holds strong value for money for buyers compared with areas such as Lancefield, Romsey and Gisborne. Residential property in the Macedon Ranges generally has a higher end price point; however, there is value in the lower to medium end in these markets,” Watson said.

Area

Metro (H)

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

$805,000

2.7%

rent

yield

6.1%

$430

2.9%

Metro (U)

$609,750

1.7%

4.9%

$400

3.5%

Country (H)

$463,888

4.6%

12.9%

$360

4.4%

Country (U)

$360,000

5.1%

11.2%

$300

4.8%

TASMANIA

Interstate and local buyers are making the most of Hobart’s favourable conditions The Hobart housing market has remained active and has become a hotspot for sea and tree changers and investors from interstate.

“It is often reported that interstate purchasers are buying now with the intention of moving to Hobart in the foreseeable future with cash in their back pockets after selling their mainland dwellings for a hefty profit and working from home where allowable,” said Mark Davies, a property valuer at Herron Todd White.

CoreLogic figures show that, over the month of May, the median dwelling price in Hobart rose 3.2% to $574,543. On an annual basis, the median dwelling price grew by 16.5%. Davies said investors in the market for lower-priced deals are looking to the outer suburbs, where they’re still likely to pay at least 10% over the asking price.

“Conversations with leading rental managers indicate that rental values are starting to level out due to affordability issues, but the demand is still there with high levels of inspections taking place,” he added.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$600,000

3.8%

10.0%

$465

4.4%

Metro (U)

$440,000

2.4%

6.7%

$400

5.0%

Country (H)

$390,000

2.9%

10.8%

$345

5.0%

Country (U)

$305,000

2.3%

6.9%

$290

5.2%

26

BUYERS FLOCK IN FROM INTERSTATE The state has welcomed property buyers from some of the biggest housing markets across Australia has become a hotspot for interstate buyers, according to the ABS and the Real Estate Institute of South Australia. ABS figures indicate that SA has reported three consecutive quarters of positive net migration.

REISA CEO Barry Money said the growth in net migration to the state coincides with the rising number of sales to interstate buyers.

“The number of residents domiciled elsewhere in Australia buying residential properties here in South Australia increased by a whopping 313% in total,” he said.

SA registered its biggest gains in interstate buyers from NSW (579%) and Victoria (336%). There was also a considerable increase in interstate buyers from the ACT and NT. “We believe that a good number of these buyers are investors, attracted by the excellent returns that are available here,” Money said.

“We consider the majority of purchases are a result of the net positive migration, with SOUTH AUSTRALIA

professionals and returning South Australians attracted not only by the value but by the lifestyle, and confidence in the positive change of direction in the state’s economic thrust.”

This surge in demand from interstate buyers could be one of the contributors to the sustained growth in dwelling values in the state and its capital. In fact, the latest figures from CoreLogic show that the median dwelling value in Adelaide increased by 1.9% in May to $500,881.

A separate report from SQM Research found that the asking price for houses in Adelaide increased by 2.1% in May to $547,600. This came with the 7.1% decline in total property listings in the city.

“Property listings fell in May due to strong market conditions. We have also seen a big fall in old listings during the month, indicating that old stock is getting moved everywhere,” said Louis Christopher, managing director of SQM Research.

ADELAIDE HOUSING MARKET FUNDAMENTALS Source: CoreLogic

Property stats for the week ending 13 June 2021

Houses

788

$504,500

33

-3.4%

Monthly sales volume

Median price

Median days on market

Median vendor discount

237

$363,500

37

-2.5%

Median price

Median days on market

Median vendor discount

Units Monthly sales volume

SUBURB TO WATCH: WOODVILLE NORTH Median price (houses) $432,000

Median price (units) $347,500

12-month growth

3-year growth

Average annual growth

Gross rental yield

3%

13%

2.8%

5%

12-month growth

Average annual growth

Weekly advertised rent

Gross rental yield

12%

3.4%

$295

4%

www.brokernews.com.au

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21/06/2021 1:04:38 pm

AUSTRALIAN CAPITAL TERRITORY

The ACT is granting land tax exemptions for properties rented below market rate In a bid to address rental affordability across Canberra, the ACT government has introduced an indefinite extension to land tax exemptions for landlords who rent their properties at less than 75% of the market rate.

Chief Minister Andrew Barr said landlords were now being encouraged to sign up to the Affordable Community Housing Land Tax Exemption scheme to increase the number of affordable rentals in the territory while, at the same time, benefiting from a reduction to their rental property liabilities.

“Rental property owners in the ACT can reduce their land tax completely if they provide their rental property to Canberrans on low-to-moderate incomes through a registered community housing provider,” he said.

Legislation passed last month has increased the number of slots available under the scheme from 125 to 250 properties.

“Incentives such as these empower the community to make a real difference to people’s lives,” Barr said.

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$790,000

2.8%

9.1%

$600

4.2%

Metro (U)

$490,000

2.5%

6.7%

$480

5.4%

NEW SOUTH WALES

Has Sydney’s property market already reached the peak of growth?

HIGHEST-YIELD SUBURBS IN SOUTH AUSTRALIA Suburb

House

Gross rental yield

Median price

Quarterly growth

12-month growth

Average annual growth

SOLOMONTOWN

H

11%

$107,500

16%

13%

0.1%

PORT PIRIE WEST

H

10%

$110,000

-5%

7%

-2.4%

NORMANVILLE

H

9%

$385,000

8%

0%

1.3%

CRYSTAL BROOK

H

9%

$177,500

8%

4%

0.9%

PORT AUGUSTA

H

9%

$145,000

2%

3%

-2.7%

ELIZABETH NORTH

H

8%

$175,000

3%

11%

0.3%

ELIZABETH EAST

H

7%

$210,000

3%

4%

-0.1%

MITCHELL PARK

U

6%

$300,000

0%

9%

0.3%

SOUTH PLYMPTON

U

6%

$295,000

0%

-7%

-1.4%

BROMPTON

U

5%

$425,750

1%

2%

1.8%

Sydney has recorded the fastest growth in median dwelling values over the three months to May, according to CoreLogic.

The median dwelling value in the NSW capital rose by 9.3% over the three-month period to $970,355. Sydney also reported the highest capital city quarterly growth in median housing values of 11% to $1.19m.

Grant Foley, director and buyer’s agent at Grant Foley Property, said buyers were already wondering when prices in Sydney would start to fall. However, he said it was crucial to look at how the city’s property market had performed over previous cycles in order to know how much growth was left.

“The previous peak of the Sydney market was about four years ago, in 2017, with dwelling prices only recently increasing above the level achieved back then,” Foley said.

“While many forecasters are suggesting at least another year of solid growth in Sydney, history may yet prove them wrong.”

Area

Metro (H)

Median price

Quarterly

12-month

Weekly

Gross

growth

growth

median

rental

7.4%

rent

yield

$550

2.9%

$1,000,000

2.1%

Metro (U)

$725,000

0.0%

2.8%

$495

3.6%

Country (H)

$540,000

3.0%

8.3%

$420

4.2%

Country (U)

$462,250

1.1%

5.9%

$360

4.2%

www.brokernews.com.au

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21/06/2021 1:04:48 pm

DATA

WESTERN AUSTRALIA

Perth clocks its 10th consecutive month of growth in housing values Perth continued its winning streak in May in terms of gains in dwelling values, according to the Real Estate Institute of WA and CoreLogic. The city’s median price rose by 1.1% to $510,000, with 81 suburbs reporting gains. Since the start of the year, Perth’s median values have increased by 7%.

Attadale was the best-performing suburb in the city, reporting 4.9% growth in its median value to $1.25m. Robust price gains were also reported in Scarborough (up 3.8% to $755,000), Melville (up 3.6% to $860,000), South Lake (up 3.6% to $400,000) and Hamilton Hill (up 3.5% to $490,000).

The median time it takes to sell a home in Perth has declined to 14 days. “Median selling times are still sitting close to 15-year lows, with buyers needing to act very quickly to secure a property,” said REIWA president Damian Collins.

It appears that more sellers want to take advantage of the surge in demand for homes in the city, with listings growing by 0.8%. At the end of May, there were 9,020 properties for sale in Perth.

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Metro (H)

$529,000

2.9%

4.2%

$395

4.1%

Metro (U)

$405,000

2.2%

0.7%

$360

4.9%

Country (H)

$386,000

2.8%

10.4%

$370

5.2%

Country (U)

$237,917

4.7%

8.0%

$325

7.5%

NORTHERN TERRITORY

Total auctions

88

Cleared

49

Uncleared

8

Clearance rate

86%

PERTH Total auctions

21

Cleared

7

Uncleared

3

Clearance rate

70%

Houses

Quarterly

12-month

Weekly

Gross

growth

growth

median

rental

rent

yield

Units

$500,000

$850,000 $420,000

$597,500

$465,500

$665,000

$430,000

$510,000

$363,500

$100,000

$504,500

$200,000

$394,000

$550,000

$300,000

$575,000

$500,000 $400,000

$716,785

$700,000 $600,000

$657,500

$800,000

$0 Sydney Melbourne Brisbane

Adelaide

Perth

Hobart

Darwin

Canberra

CAPITAL CITY HOME VALUE CHANGES Capital city

Weekly change

Monthly change

Year-to-date change

12-month change

Sydney

0.7%

2.5%

13.8%

12.6%

Melbourne

0.3%

1.4%

8.8%

6.0%

Brisbane

0.4%

1.8%

9.5%

11.3%

Adelaide

0.3%

1.5%

7.8%

12.2%

0.2%

0.7%

7.3%

9.3%

0.5%

1.9%

10.9%

10.2%

Metro (H)

$535,000

4.2%

6.4%

$475

4.9%

Metro (U)

$320,000

0.2%

0.0%

$370

6.4%

Perth

Country (H)

$425,000

0.0%

2.4%

$500

6.2%

Combined 5 capitals

Country (U)

$350,000

6.3%

7.3%

$380

6.1%

28

ADELAIDE

$900,000

The NT government has announced updates to its building guide that aim to boost the confidence of buyers and investors in the local building industry.

The Building and Renovating in the NT Consumer Guide has been developed to assist potential homebuyers, builders and investors with the processes involved in building or renovating detached dwellings. The updates include outlining the role of the certifier, builder, plumber and homeowner on any build project. The revised guide also lays out alternative pathways to occupancy certification.

“The updated Building and Renovating in the NT Consumer Guide makes sure territorians and their builders are on the same page when it comes to undertaking a project on your home. With checklists and plain English explanations, the consumer guide is a one-stop shop for all your renovating and building questions,” said Eva Lawler, Minister for Infrastructure, Planning and Logistics.

“The territory’s construction industry supports local jobs and creates homes for territorians.”

Median price

There were 1,426 homes taken to auction across the combined capital cities this week, compared to the 1,636 auctions predicted.

The downwards revision was largely seen in Melbourne, which came out of lockdown just prior to the weekend. The previous week saw 2,668 homes taken to auction, while this time last year 1,181 auctions were held. Of the results collected so far, 77.4% were successful, compared to 73.5% over the previous week, which revised down to a final clearance rate of 70.6%.

In Melbourne, 365 auctions were held, revising down from the 519 scheduled. Over the previous week, 1,081 auctions were held, while this time last year 471 homes went to auction. Of the results collected, 73% were successful, increasing from 67.3% the previous week. There were 749 homes auctioned in Sydney, compared to 1,164 the week before. The clearance rate was 78.5%.

Adelaide recorded a rate of 86%, followed

by Canberra with 82.5%, Brisbane 75.5% and Perth 70%.

MEDIAN HOUSE AND UNIT PRICES

The NT has updated its building guide to assist homebuyers and builders

Area

WEEK ENDING 13 JUNE 2021

$900,000

Area

CAPITAL CITY AUCTION CLEARANCE RATES

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

www.brokernews.com.au

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21/06/2021 1:04:59 pm

BRISBANE CANBERRA Total auctions

73

Cleared

52

Uncleared

11

Clearance rate

Total auctions

130

Cleared

74

Uncleared

24

Clearance rate

75.5%

82.5%

SYDNEY Total auctions

749

Cleared

498

Uncleared

136

Clearance rate

78.5%

TASMANIA

MELBOURNE Total auctions

365

Total auctions

0

Cleared

224

Cleared

0

Uncleared

83

Uncleared

0

Clearance rate

Clearance rate

73%

n.a.

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

QUEENSLAND

Area

Median

Quarterly

12-month

Weekly

Gross

price

growth

growth

median

rental

rent

yield

Rents in the regions shoot up as city workers move out of Brisbane Regional markets in Queensland have continued to post stellar increases in rents, with some even reporting double-digit growth, according to CoreLogic and the Real Estate Institute of Queensland. Rents across the regions rose by as much as 9.4% on average in the year to April, overtaking the 3.3% growth reported in Brisbane. Central Queensland saw 15.3% growth in rents, the Sunshine Coast 15% and the Gold Coast 10.9%.

These figures suggest an “extraordinary” tightening of rental markets in regional Queensland. One of the major factors contributing to this is thought to be the changing migration patterns of Australians in the state. While the number of people – particularly higher-income workers – migrating from the regions to the capital city has been declining, the number of those moving from Brisbane to regional areas is on the rise, putting putting upward pressure on rents in these markets.

Metro (H)

$580,500

2.0%

3.9%

$420

3.9%

Metro (U)

$410,000

2.0%

2.4%

$385

5.0%

Country (H)

$470,000

1.1%

1.3%

$415

4.7%

Country (U)

$410,000

1.8%

5.3%

$350

4.6%

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

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

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21/06/2021 1:05:20 pm

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Finance broker Chris Hall is the founder and managing director of Sydney brokerage Blue Crane Capital. The 2019 MPA Young Gun and 2018 MFAA NSW/ACT Newcomer of the Year talks about his move from banking to broking

B

I

W

Tell us about your previous roles in the finance industry, particularly in banking, and how they helped your transition to broking?

I went straight into commercial banking at National Australia A Bank and was there for close to five years. NAB was a great training ground to understand credit and learn from seasoned bankers. It was a successful business banker centre, and quite a few of my ex-NAB colleagues are now out broking themselves – and doing very well! I then took on a business development management role at Bankwest Commercial for a number of years, which saw me jump into the broker channel, looking after brokers and their clients’ transactions, ranging from development finance to self-employed home loans. The volume of different scenarios and transactions which came across my desk on a daily basis helped me create a ‘smell test’, which has definitely helped me since starting my own brokerage, Blue Crane Capital.

Q

What made you want to become a broker?

There were a couple of things that triggered the move A into broking. Firstly, I wanted to have true long-standing relationships and solutions for my clients. I felt hamstrung by the fact that I could only offer one lending solution, and if our credit team weren’t interested then I would lose the transaction and client. Secondly, I wanted to run my own business, not report up the chain, and create something that truly aligned to my values – and then have the ability to look back in 15 to 20 years’ time with my team and be proud of what we built.

Q

What’s it like running your own brokerage business, and what are some of the challenges?

I read something the other day: Elon Musk said, ‘Running a A business is like chewing glass, staring into the abyss’. It’s probably not that bad. There have definitely been some challenges, but it’s the ones that you can’t control, like the royal commission into banking, or the COVID-19 pandemic, which really test you as a business owner.

The industry is resilient, and the work we do is character-revealing.

I wouldn’t change a thing – but we are just getting started.

Q

30

Chris Hall, founder and managing director, Blue Crane Capital

What do you enjoy most about your role?

I love what I do – the fast-paced nature, the human–client A Everything. element, the problem-solving aspect of transactions, as well as helping clients achieve their financial goals. Probably my favourite is collaborating with my team and the hard work we all put in to then see the results and success. I’m lucky with the people I have around me.

Q

Q A

Where do you see yourself in five years?

Hopefully still doing what we’re doing, with staff feeling engaged and our business growing, along with continuing to deliver for our clients. AB

www.brokernews.com.au

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21/06/2021 8:47:07 am

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21/06/2021 8:26:29 am