Mortgage Professional Australia magazine Issue 11.10

CELEBRATING 10 YEARS

www.brokernews.com.au ISSUE 11.10

MAPPING THE The 10 advisers helping lay the nation's blueprint TOP COMMERCIAL BROKERS 2011 P24

HOW TO HIRE GROWING YOUR TEAM

PERFECT POLICY? KEEPING YOUR PI UP TO DATE

AMA FINALISTS THE CATEGORY SHORTLISTS IN FULL

CONTENTS / ISSUE 11.10

20 Plus one Expanding your team can be a tricky process.

We tell you how to hire

38

Potential PI pitfalls Is your professional indemnity insurance policy keeping up with you?

WEEKLY INVESTIGATIONS NOW ONLINE: COVER STORY

Broker optimism

24 | MPA Top Commercial Brokers We herald Australia’s top advisers in the non-residential space

Fixed-rate boom Non-bank outlook » brokernews.com.au

CONTENTS / ISSUE 11.10

34

NEWS & VIEWS

STATS

08 | Round-up The latest market intelligence from the worlds of property, economics and mortgages

62 | This month’s statistics round-up looks at the suburbs in each state that property investors should be looking at

12 | Product news A round-up of the latest rate changes and product launches to keep you up to date

66 | Your Mortgage index The latest data from our sister website shows that Queensland and WA are on the up

17 | Viewpoint What visitors to our website are saying about second-tier lenders joining forces

SMART BUSINESS 44 | The importance of truth How to make sure your clients are being frank about their circumstances

PROFILES 34 | Yellow Brick Road CEO Matt Lawler on his return to the mortgage market and why the group is on the recruitment warpath

46

AUSTRALIAN MORTGAGE AWARDS We reveal the nominations for the nation’s most prestigious home loan industry awards

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42 | Canberra-based broker Gerard Tiffen on the secrets to his success

LIFESTYLE 68 | A day in the life of... Meg Bonighton, ANZ 70 | My favourite things... Steve Sampson, Provident Capital Financial 72 | Words of wisdom…

Sales guru Jack Daly

NEWS / ROUND-UP

BROKERNEWS.COM.AU | 5

CONTENTS / EDITOR’S LETTER

UNCERTAIN TIMES Australia’s economy – and its mortgage market – emerged from the global financial crisis relatively unscathed when you consider how hard the US and the UK were hit by the meltdown. Strong fundamentals, a second mining boom, steady immigration levels and a close relationship with the thriving Asian market all helped insulate Australia against the worse the credit crunch had to offer. But having survived what appeared to be the worst of it, worry is now creeping back in.

Julia Gillard urged ministers to get out and talk up the economy after she met World Bank president Bob Zoellick to discuss the impact of current uncertainties on developed and developing countries; and a recent poll found that 47% of people believe another global financial crisis is very or fairly likely.

There is no reason for panic and the Australian mortgage market has shared the general economy’s resilience, but it is always worth having contingency plans in place should things take a turn for the worse. Licensing has given mortgage brokers a real chance to reinvent themselves as professional advisers catering for a range of their clients’ financial needs, and diversification is an opportunity for brokers to spread their risk and not place all their eggs in one basket. This month’s cover feature, in which we salute the country’s top-performing commercial finance brokers, is proof that you can successfully expand your offering from simply writing home loans.

This issue is jam-packed with content that will help you and your business, from what to look for in a professional indemnity policy, to how to hire staff, interview ideas and sales tips. We also give you an array of statistics to keep you on the ball with your clients, from the best suburbs in each state for property investors to the latest product news and borrower behaviour.

Enjoy the magazine and all the best for a busy month.

Barney McCarthy, Editor

COPY & FEATURES EDITOR Barney McCarthy CONTRIBUTORS Andrea Cornish PRODUCTION EDITORS Sushil Suresh, Moira Daniels

ART & PRODUCTION DESIGN PRODUCTION MANAGER Angie Gillies SENIOR DESIGNERS Paul Mansfield, Rebecca Downing

SALES & MARKETING COMMUNICATIONS EXECUTIVE Lisa Narroway MARKETING EXECUTIVE Kerry Buckley MARKETING COORDINATOR Anna Keane TRAFFIC MANAGER Abby Cayanan

CORPORATE DIRECTORS Claire Preen, Mike Shipley CHIEF OPERATING OFFICER George Walmsley PUBLISHING DIRECTOR Justin Kennedy ASSOCIATE PUBLISHER Rajan Khatak CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil Editorial enquiries Barney McCarthy tel: +61 2 8437 4790 barney.mccarthy@keymedia.com.au Advertising enquiries Sales Manager Rajan Khatak tel: +61 2 8437 4772 rajan.khatak@keymedia.com.au Account Manager Simon Kerslake tel: +61 2 8437 4786 simon.kerslake@keymedia.com.au Subscriptions tel: +61 2 8437 4731 • fax: +61 2 9439 4599 subscriptions@keymedia.com.au Key Media www.keymedia.com.au Key Media Pty Ltd, Regional head office, Level 10, 1 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Singapore, Hong Kong, Toronto www.brokernews.com.au Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as MPA magazine can accept no responsibility for loss

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CONNECT

Contact the editor: barney.mccarthy@keymedia.com.au

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NEWS / ROUND-UP

BROKERNEWS.COM.AU | 7

NEWS / ROUND-UP PROPERTY

INTERNATIONAL

Gen Ys prioritise investment

Australia outshining US The Australian housing market is a “boomtown” compared to the United States, RP Data has claimed.

The company’s latest Property Pulse has pointed to continued declines in US home values, where nearly one-quarter of loans are in negative equity. However, both Australia and the United States are experiencing lagging demand, with transaction volumes in the US 33% below five-year averages and Australian transaction volumes 16% below five-year averages.

RP Data research director Tim Lawless said the US housing market may see a boost from the recent Federal Reserve announcement that rates will remain on hold for at least the next two years. Lawless commented that the Australian market has no such guarantee of stability.

“The certainty around US interest rates is in direct contrast to the Australian mortgage market where the direction of interest rates over the short to medium term still seems to be up in the air,” Lawless remarked.

Australian mortgage holders are also more sensitive to interest rate movements, Lawless said.

“The vast majority of Australian mortgages are on a variable rate. This means that any change in the interest rate environment has an immediate impact on most mortgage holders and consumer behaviours,” he commented.

Though there are significant differences between the two markets, Lawless said the Australian housing market would be well served to learn from the US market.

More evidence has emerged that Generation Y buyers are increasingly turning to investment properties for their first purchases.

Loan Market has claimed a 15% rise in the number of first homebuyers looking to purchase investment property. The company’s COO, Dean Rushton, said Gen Ys represent a large proportion of first-time buyer enquiries.

“Generation Y is still chasing the great Australian dream of home ownership but many are approaching their entry to the market from a different angle,” he said. “An investment property also gives them the option to buy property where they can join forces with a family member or friend to purchase.”

A recent Mortgage Choice survey also provided evidence of the trend, with 43% of Gen Y respondents saying they planned to become investors before owner-occupiers.

PRODUCTS

NAB SCOOPS BANK OF THE YEAR AWARD NAB has beaten off stiff competition to be named the Bank of the Year by Your Mortgage magazine.

The lender also landed gold medal recognition for its two- and three-year

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fixed rate loans, a silver award for its standard variable rate and a bronze in the line of credit category.

Lisa Gray, group executive of personal banking for NAB, said: “At NAB, we are determined to do the right thing by our customers. We believe that what is good for

customers is good for business. For the past two years we have continued to offer the lowest standard variable home loan rate of any of the major banks. We are determined to continue to offer our customers a fair exchange of value for the financial services we provide.”

STATS: Turn to page 62 to see which suburbs property investors should be considering in each state.

NEWS / ROUND-UP INTEREST RATES

Panic could bring major rate cuts

COMMUNICATIONS

ST.GEORGE GETS SOCIAL WITH NEW MEDIA St.George has made a concerted effort to connect with brokers via social media, with the launch of a series of social media accounts.

Following eight weeks of building content on Facebook, Twitter and its St.George Broker Blog, the bank has sent out communications to accredited brokers asking them to follow the bank online.

The communication promised that the Facebook page would provide regular updates on the bank’s team, product, policy, campaigns, roadshows, professional development days and industry events.

Meanwhile, its Twitter account will provide short St.George updates, and its Broker Blog will allow logged in mortgage brokers to join a conversation with their peers.

Darren Little, head of intermediary services, said the bank was dipping its toe in the water of social media.

“Obviously there are a lot of brokers getting online themselves, and we see this as another avenue of distribution for our message,” he said.

EQUITY RELEASE

REVERSE MORTGAGE PROVIDERS GO AWOL Rates are likely to stay stable for the rest of the year, but panic could bring about major cuts, an AMP economist has suggested.

With lenders increasingly slashing fixed rates and economic unease growing following the US debt downgrade, AMP chief economist Shane Oliver said continued market panic could see some significant moves by the RBA. “The most likely scenario is rates on hold for the time being, but probably a rate cut or rate cuts starting next year in response to slowing inflation,” he predicted. “If, alternatively, the economy goes into complete meltdown such as during the GFC, then I think a rate cut would be brought forward. We could be looking at 100bps of cuts if we’re looking at complete panic in the market.”

Money markets have already priced in rate cuts, a move which has been reflected in the 90-day swap rates falling around 50bps below the official cash rate. While Oliver said this could be a leading indicator for rate cuts, be argued that it is not a perfect predictor.

“I think it’s a good indicator, but you’ve got to be a bit careful,” he added.

“There’s a few occasions where the money markets have factored in rate cuts.

In the middle of last year, in fact, they factored in rate cuts. Every time there’s a global upset the market has to factor in cuts. It’s not a perfect predictor, but the fact that we’re seeing a significant increase in downside risks regarding global growth is pointing in one direction, and that’s toward eventual rate cuts.”

The list of reverse mortgage providers is shrinking as the number of people needing to utilise equity release programs is growing, an industry body has stated.

SEQUAL chairman and managing director of Australian Seniors Finance John Thomas has stated that the reverse mortgage market has seen an exodus of participants.

He commented that a difficult funding environment had seen many lenders withdraw.

“A lot of providers are suffering from a lack of funding,” he said. “We have about

nine members in SEQUAL. If you go back three, four, five years ago we probably had something like 25 members. Some have withdrawn, and some have closed their books to new business.

Funding at the moment probably prohibits a lot of people from entering the market.”

While the lenders may have exited the market, Thomas stated that demand for the products remains strong. As Australia’s population ages, Thomas indicated, equity release programs could become increasingly important.

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NEWS / ROUND-UP CREDIT PROPERTY

PRE-GFC GROWTH NOT RETURNING: KELLY Slow credit growth is likely to continue for some time, with credit demand unlikely to recover to pre-GFC levels, Westpac CEO Gail Kelly has said.

Kelly commented that consumer wariness had seen increased deleveraging by both households and businesses. She added that she expected market volatility and weak demand for credit to continue in the near future.

“The June quarter 2011 saw the operating environment become more subdued with consumers increasingly

AUSSIES EXPECT HOUSE PRICE DECLINES

cautious and larger businesses continuing to deleverage,” she said. “This was reflected in slowing system credit growth in the quarter and weaker markets.”

The bank said it saw a slight rise in 90-day arrears, while 30-day arrears fell. Kelly said the decline reflected “an easing in the disruption some customers experienced with natural disasters earlier in the year”. She predicted that 90-day arrears will continue to rise in the year ahead, but would remain relatively low.

A growing number of Australians expect property prices to fall over the next year, a survey by Metropole has found.

43% expect property values to decline over the coming year.

This has grown from 27% six months ago.

Among those who didn’t foresee declines, optimism was still scarce. 20% of respondents indicated property values would see little growth, while 34% said they expected values to remain flat.

In spite of the outlook for property prices, 59% of respondents still indicated they planned to buy an investment property in the year ahead.

BANKING

SWAN BACKS ‘TICK AND FLICK’ SWITCHING

STATS: Australia’s property transaction volumes are 16% below five-year averages

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Federal Treasurer Wayne Swan has said the government will give consumers the ability to switch deposit accounts "with the stroke of a pen", in announcing a plan to ease account movements.

The measure, which the Treasurer said will remove the burden of having to change the details of automatic debit and credit transactions – thereby making it easier for consumers to swap banks – is to be finalised after

industry consultation by 1 July 2012.

Swan said: "Customers will sign just one form that authorises their new institution to do all the heavy lifting for them.

The new institution will arrange the transfer of all automatic transactions linked to the customer's account and inform associated creditors and debtors about the new details."

The statement came with the release of a report authored by Reserve Bank governor Bernie Fraser, which investigated options available for increasing account transferability between banks.

NEWS / ROUND-UP PROPERTY

Unrealistic vendors wasting time Vendors trying to sell properties at prices above the current weak market demand are “wasting everyone’s time”, a property analyst has stated.

With housing demand and credit growth sluggish, SQM Research managing director Louis Christopher has urged vendors to have more realistic expectations.

He said the Melbourne market in particular currently has an oversupply of housing, and that

many vendors have yet to adjust their expectations to this.

“A lot of stock on market is not selling,” he said. “It’s just piling up.

Lots of vendors are still trying to sell at an inflated asking price. That means less sales have been achieved.”

Christopher stated that, as of the end of July, the Melbourne market had 43,000 listings. He said this was a greater overhang of stock than the previous record set during the GFC in 2008.

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NEWS / PRODUCTS ROUND-UP

PRODUCT NEWS

A bite-size guide to the industry’s newest products and rate changes Who: LJ Hooker Finance What: Classic Home Loan range The spec: LJ Hooker Finance’s ‘Special Spring Rates’ offer new customers with an LVR of 75% or lower a 20bps life-ofloan discount on the Standard Classic Home Loan and Pro Pack Classic Home Loan. The offer is also available on LJ Hooker Finance’s low-doc version of these products. New borrowers with a minimum 25% equity wishing to purchase or refinance can access interest rates of 6.79% per annum through the Standard Classic Home Loan and 6.69% per annum through the Pro Pack Classic Home Loan.

What they say: “To attract new customers in an increasingly competitive market, the big banks have loosened LVRs to a point where borrowers need only a 5% deposit. It seems that some lenders have already forgotten about the causes and the ongoing impact of the global financial crisis. At LJ Hooker Finance we have taken our Canstar Cannex five-star rated product, which has been well accepted by our brokers and customers

12 | BROKERNEWS.COM.AU

alike, and provided an even more attractive proposition to customers with equity by applying a rate discount, without detracting from broker commissions.”

– Peter Bromley, general manager

Who: ING DIRECT What: Fixed rate loans The spec: ING DIRECT has reduced its fixed interest rates to further encourage borrowers who are looking for repayment stability. The rate on ING DIRECT’s fixed rate loans will be 6.59% for one year through to 6.69% for three years and 6.99% for five year loans.

What they say: “There is an air of uncertainty among borrowers and we’ve seen an increased appetite for discounted fixed rates in the past few months as borrowers capitalise on the ability to effectively take an immediate rate cut. The benefit of a fixed rate is the certainty of a good, low rate for the medium term and the option to move to

another competitive loan once that term expires.”

– Mark Woolnough, head of broker sales

Who: Commonwealth Bank What: Fixed rate loans The spec: CBA has slashed up to 0.60% off its fixed-rate home loan products.

Fixed rates for one- to five-year products will range from 6.59% to 6.99%.

What they say: “Many customers want certainty with their home loan repayments and we are pleased to take a lead and offer customers that peace of mind.”

– Ross McEwan, group executive – retail banking services

LAUNCHING A NEW PRODUCT?

If you are launching or updating a product and want it to be considered for inclusion on this page, send the details to barney.mccarthy@keymedia.com.au

Brokers achieve greater rewards with NAB Broker

NAB Broker introduced its unique ramped trail structure in 2007.

Now in its fifth year, brokers are realising the full benefit of the scheme, receiving a market-leading 35 bps in trail commissions.

NAB Broker understands how important building good customer relationships is and believes brokers’ businesses should benefit as a result.

To obtain insights into client relationship management and how the ramped trail structure supports brokers, we asked you some questions.

Q

What client retention programs do you have in place?

Sean Richardson, Freshwater Finance: “We talk to our clients within the first 30 days from settlement. We talk to our clients at 90 days to make sure that all processes have been completed for the set-up of the loan. The next contact point is nine months, then 18 months and then three years.”

Murray Kent, Pacific Home Loans: “We basically invite our clients at least once a year to come in to our office and discuss their position. That keeps us in front of them and also top of their mind.”

Sam Ayliffe, FYI Group: “We call our clients at milestones, so whether that’s at a fixed rate expiring, or whether that be just their simple birthday. I spend most of my time in the car on the phone during business hours, because I’d rather speak to my clients than listen to the rubbish on the radio.”

Q

How does Homeside’s stepped trail structure benefit you and your business?

Murray Kent, Pacific Home Loans: “Ramped or stepped trail was announced back in 2007 and that was one of the greatest things I ever heard, to be honest, because we’ve focused so much over the years on client retention and it was kind of like a reward, almost I suppose, to acknowledge the fact that we’re trying to keep clients loyal.”

Scott Beattie, Cube Central: “We have fairly strong client retention, so as our clients have longevity with us our pay days have actually increased, which in the current market is great because not too many things are going up other than petrol.”

Chris Vitale, Mortgage Choice: “The Homeside stepped trail is very unique in the marketplace in that year five Homeside pay us 35 bps trail. Now that’s based around the life of the client, not the life of the loan. So for example if we have a client that comes to us in year six that wants to look at a refinance or a top up, obviously it encourages us to keep our client a client of Homeside’s. When you have a book the size of ours and you look at a 10 bps increase on the trail compared to its nearest rival – that can mean a lot of money to us.”

Anthony D’Alessandro, Required Financial Services: “Because our business is customer focused, the program put in place by Homeside

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Advertorial

Q

Does the Homeside commission structure differ from other lenders?

complements it. Rewarding brokers for loan longevity is very valuable.”

Phil Edwards, Australian Mortgage Brokers: “My income continues to rise year in and year out.”

Sally Richards, Smartline: “When I look at my monthly commission statements I’m starting to notice that things are ticking up. That’s because we’ve reached the fifth year of some of my loans that I would have written back in 2007 and now I’m getting .35 on the trail.”

Sam Ayliffe, FYI Group: “In our business I have seen a spike in our commissions at each milestone of it going from the 15 to the 20 to the 25, 30 and 35. So the ramped trail structure is rewarding for us.”

Ashley Keonig, Mortgage Choice: “It’s comforting to know that the likes of NAB Broker reward that for the life of the client.”

Brokers’ trail commissions increase instep with the length of customer relationships – not the life of the loan. Once your customers have a loan with Homeside, any new lending, top up or variation will still earn you the same commissions. There’s no going back to zero for loan variations.

Homeside’s proposition is a much higher percentage – it’s about 40% higher than any other bank in the marketplace. We have a big mandate in our office that we support lenders that support the broking channel and Homeside is number one in that offer.”

Murray Kent, Pacific Home Loans: “Ramped trail is the ultimate reward for loyalty, both for clients by keeping them loyal to us and then we’re loyal to Homeside in return.”

Scott Beattie, Cube Central: “When we touch a client who has an existing relationship with Homeside, whether we had that relationship or not, it doesn’t matter the client did, and we get paid for that.”

Chris Vitale, Mortgage Choice: “There are a couple of lenders that are similar to Homeside with their ramped trail offering, but the majority of the lenders in the marketplace pay a flat trail – whether that’s zero year one – and then it increases, or .15% rate for the life of the loan. So obviously

Once you hit the top rate of 35 basis points with a client, you will immediately start on that rate with any new loan the client takes out. This gives brokers the opportunity to greater serve their clients’ evolving needs, while still focusing on client retention.

Homeside’s ramped trail commission structure Customer Start Date

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Pre 1 July 2007

0.25%

0.25%

0.25%

0.25%

0.25%

0.25%

1 July 2007-31 July 2008

0.25%

0.25%

0.25%

0.30%

0.35%

0.35%

Post 1 August 2008

0.00%

0.15%

0.20%

0.25%

0.30%

0.35%

Vist homesiderampedtrail.com.au for more information or call 1300 622 276 to speak to a NAB Broker representative.

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NEWS / COMMENT

VIEWPOINT Each issue we select a story from Australian Broker News that has got intermediaries talking and publish the best responses.

This month: second tier lenders teaming up to challenge the majors

THE STORY: SECOND TIERS SHOULD BAND TOGETHER: FOLEY Second tier banks should provide a united front to deliver consumers a compelling alternative to the four major banks, according to National Mortgage Brokers managing director Gerald Foley. In light of the continued dominance of the Big Four and their subsidiary brands, Foley has called on second tiers to find ways to work together to make the broker experience a better and easier one. “Brokers already understand the need to support the second tier banks, but when the majors are offering very sharp rates and lower establishment costs it is not the responsibility of the broker or their customer to make a statement against market domination to their own immediate, financial detriment,” Foley said.

THE ONLINE REACTION: melbbroker on 27 Jul 2011 11:31 AM Spot on.

Cuz on 27 Jul 2011 12:42 PM Exactly. Having dealt with many secondtier lenders, it is only human nature to cringe when you make a recommendation that you just know will be fraught with so many reasons for the deal to fall over when you know it will fit exactly with a major such as postcodes, valuation policy, stability in employment, mortgage insurance and credit score. Sometimes there is not even much of a reason at all to decline a deal when you have bent over backwards to outline why it should be approved. You then submit it to a major and it is approved without question. We would love to have real alternatives, but how many times do you have to get knocked back and look like an idiot to your client before you just take the smartest and easiest option that will save you all the grief? I fully appreciate this is only a short-term solution and would love to support competition, moving forward, when they get it right.

Linda M on 27 Jul 2011 12:58 PM Second tiers should have been doing this years ago.

SteveMc on 27 Jul 2011 2:03 PM Excellent. He’s looking for ways to win the consumer’s trust in a broker, not just the broker’s trust in a lender. Foley makes very good sense rather than arguing that brokers should support the non-majors, simply to save the second tier. Maybe he has the insight to realise that non-banks have burned brokers – maybe even more than the banks – with their ‘hit and run’ or ‘sell-out’ style in the past. May confidence be restored.

Daniel Son on 27 Jul 2011 3:12 PM The second-tier lenders need to be able to provide finance for applicants other than long-term salaried employees who wish to borrow 80% or less. If you like getting frustrated for six weeks send them your next self-employed application.

DRyder on 27 Jul 2011 7:32 PM This is the most sensible, constructive and consumer-focused comment I have heard on this important subject. It’s a fantastic idea that proposes a win-win-win solution to the problem of the rapid evaporation of competition within our industry. It’s a win for the lender, a win for the broker and most importantly, a win for the consumer.

Please get this idea off the ground.

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NEWS ANALYSIS / MULTIMEDIA

THE BIG STORY

Every week, Australian Broker News rounds up influential figures to discuss the major issues in the mortgage industry. You can watch these bite-size videos online in the multimedia section of our website, but here we bring you the latest highlights

The subject Brokers optimistic in tougher times

The lowdown A recent poll shows that brokers are surprisingly optimistic in spite of tough economic conditions.

How has the industry shake-up brought about by licensing affected the brokers still in the market? What kind of volumes are brokers reporting? How much can a new entrant to the industry hope to earn?

Fiona Mackenzie, Macquarie Practice Consulting: “It has been a tough

environment, but on average returns have increased by 13% across the brokers surveyed. What we’re seeing is they are being confident in their business and looking to drive efficiencies. They also seem confident about adapting to change and overall they seem to be an optimistic bunch.”

Justin Doobov, Intelligent Finance:

“The results are positive because most of the poorer performing brokers have left the market because of regulation. If you do a statistical analysis you’re left with higher performing brokers, therefore you’ll have higher results.”

Andrew Hawking, Mortgage Choice:

“I think there are two main reasons why brokers are experiencing growth.

Firstly, because a lot of people are moving out

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of the mortgage-broking industry, there has been time to acquire businesses and grow income from new loan books or because they are diversifying into other income streams.

FM: “The results are saying that the

smaller one-man operations are grossing around $142,000 per broker, while for the larger firms it’s more like $175,000 per broker. The main reason for this is the diversification of revenue – they have other income streams supplementing their mortgage revenue.”

JD: “When you actually read the survey,

it says the larger businesses have more formal arrangements whereas the smaller businesses have informal arrangements, so while the larger businesses may have more income or gross revenue per broker, I’d actually argue the net revenue or profit each broker takes home in a smaller brokerage is bigger.”

AH: “Some smaller franchises have a

very large income stream and some larger franchises have a small-to-medium income so it depends where you are, what you do and how you try and generate income.”

FM: “The smaller firms have a book size

of about $51m per broker and the larger firms about $40m per broker, which is an interesting result. The main driver for that is the larger firms are more diversified so they are earning revenue from other products in addition to mortgages. Larger firms also often have junior, less experienced brokers coming through who are still building their book.”

AH: “If you have an older, established

franchise that had surplus staff, they are no longer there. Because they’ve grown their loan book over time it’s going to be high in value, but the number of people operating it is smaller than what it was previously.”

JD: “Any broker should be able to manage

a $100m–$200m portfolio. The $50m they are talking about [in the Macquarie Practice Consulting survey] is low, regardless of the size of the business. If the gross income per broker is $146,000, once you take into account rent and the fees and service costs of running a business, you’re probably left with $70-80,000. If you’re an average broker, you probably need to look at your business and see if that is viable for the hours you are working. At top broking firms, it can be double or triple that and it makes it worth your while.”

The subject Fixing gains followers The lowdown As global economic conditions have deteriorated, short-term fixed rate opportunities have become more attractive to clients. How are mortgage clients treating this window of fixed-rate opportunity? What is the outlook for fixed rates, when balancing global and local economic fortunes?

Belen Lopez Denis, Citibank: “You can

actually see that a lot of three-year fixed rates are now less than 7% with the majority of lenders. I wouldn’t be surprised to see further drops after the most recent economic news we’re hearing from Europe and the US and the RBA holding rates.”

Mardee Crane, 1st Street Home Loans:

“Variable and fixed rates are a lot more on par than say a year ago when the threeyear fixed rates were about 1% different.”

Ian Jordan, The Selector Group: “A few

years ago there was a period where we were able to fix in rates below 5% for extended periods, so I think now we’re hitting another one of those milestones where we’re able to get fixed rates around 7% and people who think rates are going to increase are locking in over the next few months.”

split the loan. I definitely see advantages in fixed rates, specifically regarding an upward economy. I think everyone agrees at some stage the economy is going to grow and as a direct result, the RBA is suggesting rates are going to increase. An extra 50 or 100 points is when people are going to feel a pinch. Are they better off saving for a rainy day, putting that money away now or putting a fixed rate in place?”

BLD: “We’ll most likely find that the yield curves are going to keep dropping for the swaps which is actually the main funding source for fixed rates, so we might see further drops on three and five-year fixed rates.”

This month’s guests...

Fiona Mackenzie Macquarie Practice Consulting

Justin Doobov Intelligent Finance

Andrew Hawking Mortgage Choice

MC: “People who are asking about fixed

rates are probably more in a set kind of wage and not people who have different incomes each month. At least then they know there is not going to be any variance in what’s going to happen going forward.

Self-employed people might prefer variable rates where they can have access to redraw facilities.”

IJ: “There’s certainly more conversation

around fixed rates. When we’re talking to clients, really what we’re looking at is a three- to five-year time-frame – what are people looking to achieve for their property and with their loan?

Understanding what they are able to do over that period enables us to help them

Belen Lopez Denis Citibank

Mardee Crane 1st Street Home Loans

Ian Jordan The Selector Group

BROKERNEWS.COM.AU | 19

FEATURE / RECRUITMENT

PLUS

ONE Hiring your first employee can be a daunting task for the solo mortgage broker. Andrea Cornish explains the process and how to avoid some common mistakes

20 | BROKERNEWS.COM.AU

any brokers maintain that hiring their first employee marked a major turning point in their career. Choice Capital’s Nick Caple says when he took the plunge it felt like a massive decision, but turned out to be a great thing for him and his business.

He initially only wrote commercial and construction finance and it was his PA who suggested they write home loans. “I said I didn’t want to bother and so she asked if she could and that’s how we started writing home loans – it was sort of an accident,” he recounts. “It was a funny way for it to happen, but now we’re writing $150m a year in residential loans.”

According to Advice Centre Consulting’s David Fox, one of the major benefits of hiring someone is not only the ability to distribute the workload, but it’s the opportunity to bring a new perspective to your business.

“As a sole business proprietor you think you’re the only one with all these problems,” he says, “but when you’ve got someone else, you’ve got someone to talk to about these issues, they can help you, they can provide a different perspective. Good, talented people that can help you grow the business and share your enthusiasm and vision are a fantastic asset.”

While having financial assurances in place makes sense, Fox suggests that mortgage brokers don’t always need to wait until they can afford an employee. “My view is that very often you will never be able to afford an employee if you take that approach,” he warns.

“Once you’ve made that decision that you want to move towards having a business that is bigger than just yourself, that is the time to employ someone and then to arrange whatever funding is necessary.”

Regardless of which approach you take, the next big question is: what next?

FEAR FACTOR

the job description and are clear about what you want your employee to do, it’s important to research appropriate remuneration levels. Just as important is developing an incentive structure for your employee, Fox says. This will help retention and keep your employee motivated.

If you’re questioning your ability to make the leap from solo broker to “plus-one”, you’re not alone. Toowoomba Home Loans’s Paul Taylor hired his first employee in 1998 and described it as “a real terror”. “I was plagued by a number of concerns,” he says. “Can I afford them?

Will I pick the right person? What if I train them and they start up in opposition?”

While a daunting decision, Taylor says he came to the realisation that he couldn’t do it all by himself, and if his business was to grow then he would have to learn to rely on others. “You must take risks in order to grow and learn,” he says.

But you can mitigate some of the risk by getting your financials to a level where taking on an employee won’t bankrupt you. Daniel O’Brien of PFS Financial Services says he expanded his monthly trail to a point that could pay for his mortgage, his office and cover the wages.

“Once I hit this goal it did alleviate a lot of the stress and worry in making that big step of growing the business,” he says. “Getting my trail to pay for core expenses was the best thing I could have done. It meant working my butt off for a few extra months, but at least the business was at a level that warranted a second person.”

STEP-BY-STEP: Step 1: Plan the role According to Fox, mortgage brokers need to sit down and think about the role they want their employee to fill. “The most important thing and something that is really not done well is to get clarity around what this role is,” he states. “It’s not only the tasks involved in the role, but also what the role needs to achieve and what the criteria of success are.

Typically, brokers are not very good people managers and therefore they would employ someone to do 10 different tasks, but if that person has some talent they will not stay around for very long. They need to employ someone for a future role as well. So that person will be able to develop into that.”

Step 2: Deciding remuneration Once you’ve outlined

Step 3: Finding someone There are a variety of ways to find an employee – the most obvious being through advertising, networking, recruitment agencies or via referral. But the most important aspect of this part of the process is to not choose the first person who walks through your door. According to Fox, you should take the time to find someone who is not only capable, but is a good cultural fit. He also advises brokers to look for someone they can mentor and coach into a more senior position.

“A lot of brokers will be employing someone for that support role and that’s the end of the story,” he says.

“But if you want to grow your business, then you need to employ someone who is capable of moving into a more senior position. Getting a younger person who is enthusiastic and willing to learn over time is usually the best choice.”

BROKERNEWS.COM.AU | 21

FEATURE / RECRUITMENT

Step 4: The interview Questions in the interview RESOURCE INFORMATION For a complete guide to federal and state and territory laws, industrial awards and agreements, tribunal decisions and contracts of employment visit www.business. gov.au

should reflect the job description you developed in step one. Ask candidates how they meet these criteria and for examples from their previous roles that demonstrate they would be capable of fulfilling the job role. Most importantly, familiarise yourself with discrimination legislation. Questions relating to age, marital status, race and religion are just a few areas you’ll want to avoid.

Step 5: Checking up You can avoid some nasty surprises by thoroughly checking the applicant’s referrals. In addition to providing verification of the applicant’s identity and proof of former employment, the referral source should be able to indicate whether the candidate has demonstrated skills in previous roles that are transferable to the role you are offering.

Step 6: Put it in writing Once you’ve made an offer to your new employee and they’ve accepted the role, make sure you put it in writing. Have your solicitor look over your employee contract. It should include a start

The five biggest hiring mistakes

#1: Rushing your selection According to Advice Centre Consulting’s David Fox, taking too little time to select the most appropriate person for the role is a major mistake. “Don’t employ the first person that’s available,” he says.

Remember, you will be spending up to eight hours a day with this person so take the time to find someone who is capable and you will like being with. #2: Getting a carbon copy One of the mistakes Paul

22 | BROKERNEWS.COM.AU

Taylor of Toowoomba Home Loans made early on was to employ someone who had similar strengths (and weaknesses) to his own.

“It’s important not to have people around that are like you,” he says. “You need to have people around you that will make up for the things you don’t have and do the things you don’t do well.” #3: Employing friends/ family While this strategy can work, Fox advises brokers

date, salary, benefits, details of the job and working conditions.

Step 7: First day Be prepared for your employee’s first day. They will need an appropriate workspace and equipment, as well as somewhere to keep their lunch and personal belongings. Make sure you spend enough time training your employee so they are comfortable completing the tasks you’ve set out for them. Make sure your new employee takes their lunch break or, better still, take them out to lunch.

Step 8: Numbers Get your employee’s paperwork sorted. If you are making superannuation payments they will need to fill in the appropriate form. They will also need to complete a tax file number declaration, you can obtain these forms from the ATO website. Also have your employee fill in a record form with their address, telephone numbers, emergency contact information and banking details. this should not be the sole reason for hiring someone.

And if things don’t work out you are opening yourself up to the possibility there will be hard feelings down the road.

And two, they are walking into a high-pressure situation. Placing high expectations on someone who has not had appropriate training is essentially setting them up to fail.

#4: Waiting until you’re desperate Waiting until you can no longer take the stress or pressure is a bad strategy.

For one, you risk taking on an employee who is not a good fit for the business because you are desperate to fill the role.

#5: Failing to expand the role You need to give your employee room to grow and advance, otherwise they will look for bigger and better opportunities at a new place of employment.

High employee turnover will waste your precious time.

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SPECIAL REPORT / TOP COMMERCIAL BROKERS TOP COMMERCIAL BROKERS 2011

MAPPING It’s that time of year when MPA honours the cream of the commercial finance crop. Barney McCarthy profiles Australia’s top 10 brokers in the nonresidential space

24 | BROKERNEWS.COM.AU

THE The number of entries received for this year’s MPA Top Commercial Brokers rundown would suggest that the sector has improved since 12 months ago, but the top advisers in this space have been quick to point out that they are still feeling the pinch. Stricter criteria imposed by lenders and economic uncertainty are just two factors making the market difficult, although others acknowledge that the tough conditions also present an opportunity to add value to clients by helping them refinance or improve their financial circumstances.

Despite the harsh climate, anecdotal evidence suggests that more and more residential mortgage brokers are trying their hand at commercial finance in order to diversify their businesses and those with experience in the commercial sphere are adept at identifying new opportunities. MPA would like to thank all the commercial brokers who put themselves forward for inclusion in our list and congratulate those hardy figures that made the top 10. Before we profile the top 10 in reverse order, a short word from our sponsors, Global Capital Commercial.

Global view Global Capital Commercial was established more than 10 years ago and was formed to assist home loan brokers to package and place commercial mortgage transactions and – perhaps more importantly – development finance transactions.

We now have over 6,500 brokers and at times over the past few years have averaged up to $350m in submissions per month with loans ranging from $1m to $150m. When the global financial crisis hit, the expectation was that we would experience a dip in turnover commensurate with the industry at the time.

Instead we were pleasantly surprised to find our settlements increased. We quickly assessed why.

Over the past 10 years we have built up a robust and diversified panel of over 200 lenders and we have access to funds, and the experience necessary, to package the funding in a manner that provides all parties with the best opportunity for success. We all acknowledge the ebbs, flows and uncertainties in our industry. At Global Capital we strive to go beyond the vagaries of the everyday, believing that there are many ways to reach the mutual objective of that single word “settled”.

We offer a broad range of commercial mortgage solutions to the wider Australian broker network. The commercial mortgage market tends not to provide “off-the-shelf solutions” that are available in the home loan market, with most proposals we see requiring a certain amount of “outside the box” analysis and packaging to get the deal across the line. Issues such as type of property, location, credit history, size of loan and availability or non-availability of financials all need careful consideration and assessment, and of course the appropriate lender and product to suit the borrowers needs to be carefully chosen.

We are essentially a back office for our broker clients offering diversified funding sources and an enhanced credit functionality. We are based on a partnership model with our brokers in that the broker sources the deal and retains ownership of the borrower, we perform the back office credit function and whatever fees are generated are shared 50:50 with our introducer.

So there’s a bit about us. It is my hope that it is of interest to you and your business and I look forward personally to demonstrating the Global Capital Commercial opportunity to you in the near future.

For now on behalf of Global Capital Commercial, we would like to salute all the brokers who participated in this year’s Top Commercial Brokers program and congratulate the winners.

Bill Salouris Global Capital Commercial

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SPECIAL REPORT / TOP COMMERCIAL BROKERS

10

Q: How much commercial business do you write compared to residential mortgage business?

A: It’s about a 50/50 split. We’ve

through has increased. From a compliance perspective, there is a duty of care when providing an application for credit.

been working on a different marketing strategy to diversify the lead generation streams. Contrary to what most people have done, we started off in commercial and have diversified into residential.

Q: What have been the main challenges for commercial brokers in the past year?

A: Economic uncertainty has been

Q: Are more brokers starting to diversify now?

A: You need to in order to maintain your competitive edge.

(Last year: 7) Name: Sam La Company: Brandi Financial Services Location: Richmond, Vic Settled (2010/11 financial year): $16,606,600

Q: Has the number of lenders in the commercial space stayed the same or have some exited the market due to the tough conditions?

A: If anything there has been something of a resurgence. The large lenders are still there although their appetite for deals is more constricted than what it was and the number of hoops we need to jump

the biggest issue. A lot of clients have either experienced a downturn in their profitability, which makes it harder to source funding, or they are sitting and waiting out the peaks and troughs before they make a decision on where they’ll take their business.

Q: What types of clients do you mainly deal with?

A: Mainly small and medium-sized enterprises, deals from anywhere around $100,000 up to $10m-odd.

It’s a mixed bag, but we do a fair amount of asset or equipment finance, commercial property as well as cash flow and invoice finance.

“The large lenders are still there although their appetite for deals is constricted and the number of hoops we jump through has increased” 26 | BROKERNEWS.COM.AU

9 (NEW ENTRY) Name: Graham Lee Company: ARM Finance Location: Keilor Park, VIC Settled: $27,949,507

global financial crisis has changed the way banks look at deals. There is a lot more paperwork and information that has to be provided these days.

A: We predominantly deal with

Q: What is your split of business between commercial and residential?

A: Probably 60/40 in favour of

Q: Are more residential brokers looking to diversify into areas such as commercial as commissions dwindle?

A: With the introduction of NCCP, a

commercial, but it’s becoming more even. I have always focused on commercial deals and passed residential cases on to my colleagues. I mainly deal with leasing, property development and private loans, that sort of thing.

Q: What’s the outlook for the commercial sector in the coming 12 months?

A: There are still good returns being

Q: How have you found the last 12 months in the commercial sector?

A: We thought we had a reasonable

achieved in the property market. In residential there is a shortage and the banks are making it harder and there is not as much land, but there are still good commercial properties around that people are looking at.

year, but it wasn’t as good as previous years. In other years we’ve written more business and it’s been easier to deal with the banks. The

Q: Have lenders remained committed to the commercial market during difficult times?

ANZ, CBA and Westpac, so they have stayed true. We also use second-tier lenders like Banksia and Suncorp too.

lot of residential lenders out there are dropping out. Some small one or two-man operations are being swallowed up by bigger companies.

Q: What has been the main challenge to your business in the past 12 months?

A: There is a lot of sensitivity in terms of interest rates, which is a challenge for clients. Banks have increased their risk margins to 2.5%+ whereas it used to be 1% or 1.5%.

Q: What advice would you give to brokers looking to break into commercial finance?

A: Know your product, know your client and know the risk associated with the type of loans you’re trying to put together.

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SPECIAL REPORT / TOP COMMERCIAL BROKERS

Q: Your improved settlement figures from last year suggest an improved market. Has that been the case?

A: Yes – we’ve had a very consistent year. The same sort of challenges exist in terms of getting approvals on client’s applications, but there is no shortage of opportunities out there.

8 (Last year: 8) Name: Tony Rossi Company: WHK Lending & Finance Location: Launceston, Tas Settled: $28,164,365

Q: Has it been tougher dealing with the lenders?

A: They have certainly become more stringent and I can only see that continuing to be the case.

It means that operators such as ourselves have to be more professional in the way we approach things and make sure we reveal all the positives about an application when we’re doing it.

Q: Have lenders remained committed to the market?

A: There hasn’t been any wavering in the Tasmanian market. There’s certainly an opportunity for some of the smaller lenders to expand their portfolio lists as clients from the major banks look to refinance.

Q: What specific type of commercial business do you handle?

A: Of the $26m of settlements I handled, I would say $22m of that was pure commercial, with the other $6m being accounted for by

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equipment finance. To break down the commercial even further, it’s a mixture of commercial property and traditional working capital finance such as invoice financing.

Q: Are more residential mortgage brokers diversifying into areas such as commercial finance to boost their bottom lines?

A: Yes, industry reports are confirming that. It’s not just commercial finance, but forming alliances with risk insurance writers and financial planners as well.

Q: How do you see the commercial market faring in the months ahead?

A: I’d say we can expect a similar operating environment to the past 12 months, particularly for the Tasmanian market. I don’t see it dropping off at all and as the GFC hits further we may find more and more enquiries from those clients who need to refinance to review their banking arrangements.

Q: What would your tip be for brokers looking to enter the commercial market?

A: Commercial broking is something you can’t be half into.

You’ve either got to be all in it or not in it at all. If you’re not in it, form an alliance with someone who is good at it, which can be just as good as doing it yourself.

Q: Has the commercial market been tougher than usual of late?

A: It’s certainly been challenging.

Credit appetite is harder, but it opens up further opportunities for consulting from the third party channel. People are becoming more open to intermediaries because of the value add and the connection to avenues of finance.

7 (NEW ENTRY) Name: Tom Waltham Company: Capital United Location: Adelaide, SA Settled: $30,051,000

Q: Are lenders becoming tougher?

A: They certainly are. We’re finding the due diligence lead time on a commercial deal has probably doubled or tripled. Since prudent lending policy came in last year it has been more about cash flow and security combined.

Q: Do you deal with residential mortgages in addition to your commercial business?

A: My background is accounting, then I did a bit of private equity and venture capital business at NAB, then I spotted an opportunity as a commercial intermediary as I was getting referrals from legal and accounting firms and no-one was really servicing small and medium enterprises in the commercial space

in my area. I probably handle 80% commercial business.

Q: Are more residential brokers starting to venture into the commercial sector?

A: That’s where a lot of them should be going, but it’s a case of whether they can get there. Banks are making it harder for them – they’re not accrediting them and the barriers to entry to get into commercial are challenging. Most are adopting an 80/20 rule where they only look after the top 20% where they mostly get business from.

Q: What would be your advice for brokers looking to try commercial for the first time?

A: It’s important to upskill, attend professional development days and speak to commercial bankers to learn what you can.

Q: What type of commercial cases do you handle?

A: It’s a mix of straight consulting and direct dealings with banks. It’s anything from cash flow funding to commercial property finance to private lending.

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SPECIAL REPORT / TOP COMMERCIAL BROKERS

6 (NEW ENTRY) Name: Ismail Ozsoy Company: Touch of Finance Location: Campbellfield, Vic Settled: $32,790,000 Q: How have you found the commercial market over the past 12 months?

A: It’s been good to me. If you had asked me last year it would have been a different answer though.

Q: Do you write residential loans in addition to your commercial business?

A: I do both, but the focus has been on commercial in the last 12 months.

As a company we’ve always offered commercial, but my ex-partner wasn’t very comfortable with those types of loans so I used to handle them. I went to see business people and got referred on to other clients.

Once you do one deal with someone, they refer you on to big clients. Last year I would say 60% of my business was residential and 40% was commercial.

Q: How did you first branch into commercial lending?

A: I was an ex-bank manager lending residential loans, before I became a broker. It was clients’ needs that made me move into

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5 commercial, I wanted to service their requirements. I didn’t want to tell them I couldn’t help them or send them somewhere else, so I made sure I sat down with former colleagues from the bank who were commercial lenders and they showed me the ropes.

(Last year: 4) Name: Veki Brdjanin Company: UniQ Finance Australia Location: Port Melbourne, Vic Settled: $39,536,850

Q: Are more residential brokers starting to diversify into commercial finance?

A: Diversifying is vital – you can’t

the uncertainty in the market. We spent a lot of time focusing on our residential book this year to bring back that diversity into our books.

just wear one hat, you’ve got to have a few on.

Q: What are the biggest challenges facing the commercial market?

A: Response times from the banks have worsened – they seem to be taking a lot longer than usual to get back to us. I’m lucky I have direct accreditations with a couple of the banks.

Q: What’s the outlook for the commercial market?

A: At the moment, it’s struggling.

There are indications that rates are going to be held or cut, which would bring some excitement back.

Q: What type of commercial finance do you usually handle?

A: Development and commercial purchases.

Q: How have you found the past 12 months in commercial finance?

A: It has been tricky because of

Q: Did you start off as a residential broker and then move into commercial at a later date?

A: Yes. I diversified into commercial finance after I had been handling residential cases for a few years. It was a conscious decision to diversify my knowledge base, diversify my income flow. You get residential clients who end up buying a commercial property and if you can’t fund that transaction you might lose the home loan business too.

Q: Are more residential brokers looking at diversification and commercial finance in particular?

A: I don’t think they are doing it, a lot of people are sticking to what they know what with the uncertainty in the market. Brokers who have recently joined the industry are

already deciding to leave the industry. Those of us that have been around for six or seven years are looking at all forms of income diversification. A lot of guys now have financial planning arms to their business or are getting their own financial planning licences.

Q: Does the care of duty required under licensing necessitate this diversification?

A: Selling insurance and aligning yourself with insurance providers comes under that as well. You’ve got to do that to be able to survive.

To be profitable you would rather be in a situation where you can sell some insurance to the client, get a financial plan for them in place or do some real estate residential. You go from earning $1,000 a client to $3,000 or $4,000, all by providing a service they actually need.

Q: How have lenders in the commercial space been?

A: They are being tougher with criteria. This line of policy they’ve been taking is probably one we always should have had. It’s what I was accustomed to seven or eight years ago and some lenders became loose on their policies since then.

They are now issuing finance to parties who can actually afford it. If you can’t stand up to bank scrutiny, the chances are you shouldn’t be taking on the loan.

Q: What’s your outlook for the commercial space going forward?

A: The Australian economy has proved its resilience. We have a lot of good fundamentals including the mining boom. We are dependent on China. There’s still some good commercial buying out there at the minute, vacancy rates our down and occupancy rates are up. On top of that, the more fluctuations we have with rates, the more it opens up opportunities for finance.

those affected directly or indirectly by businesses that may be suffering financially. A lot of my clients are outside Cairns as well, so I’ve got a wide network.

4 (NEW ENTRY) Name: Scott Smith Company: Cairns Finance Location: Cairns, Qld Settled: $51,404,621 Q: Are you solely a commercial broker or do you handle residential mortgage business too?

A: Commercial finance probably accounts for 90% of my business.

My background was as a senior commercial lender with NAB and I spent 21 years there, so commercial is my main bag. I do residential, but I don’t market myself that way. I’ve done quite a few home loans this year, but it’s more of an incidental thing than my main focus.

Q: What types of commercial finance do you focus on?

A: Property development, subdivision and construction have always been areas I’ve worked in, both in my time at the bank and since then. Since the GFC, property construction lending hasn’t been anywhere near what it was.

Q: How has the local market been up in Cairns in the past 12 months?

A: Very soft – it’s been quite subdued. It has created challenges, but it’s also created opportunities to review the financial position of

Q: Are more residential mortgage brokers attempting to diversify into commercial finance?

A: I’m not getting the same level of referrals from existing residential brokers as before. That used to be a big part of my business when I started five years ago – residential brokers would ask me if I wanted to take over the equipment finance for a particular client or their business commitments on a referral basis.

That hasn’t occurred to any substantial level in the last few years, so it’s my understanding those brokers are trying to tackle commercial themselves. With some of them, they are probably better off earning a portion of the commission I might share with them as opposed to getting 100% of nothing when the deal gets declined.

Q: Have lenders become tougher to deal with?

A: I don’t think so. What frustrates me though is a lack of consistency. I feel sorry for a lot of the bankers I deal with as they don’t always understand what it is head office is looking to achieve. The way policies are amended or varied isn’t always communicated to those in decisionmaking or client-facing roles.

Q: What’s your outlook for the commercial sector?

A: As every year rolls round we look forward to getting the last one out of the way. It’s probably going to be another fairly subdued year.

Hopefully discussions about interest rate rises at a wholesale level will start to dissipate a little more. The crystal ball is a little fuzzy, but we’ve probably hit a point where it’s not going to get worse.

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SPECIAL REPORT / TOP COMMERCIAL BROKERS

3

2

(Last year: 2) Name: Danny Masri Company: Mortgage One Australia Location: Parramatta, NSW Settled: $142,632,153

(Last year: 3) Name: Daniel Zadnik Company: Hawthorn Finance Location: Hawthorn, Vic Settled: $53,000,000 Q: Was 2010/11 a tough year?

A: During the global financial crisis banks weren’t as focused on their clients, but as the market improved they have started to look at growing their books and protecting their client base again. I’m grateful for the support provided by my colleague Jarrod Hodges, my aggregator AFG and the panel of commercial lenders.

Q: Are banks tougher now?

A: They are looking for quality now.

Q: Do you do residential business as well or do you concentrate solely on commercial?

A: Yes we do and it’s something we concentrated on in the last financial year – diversifying our book between commercial where we write big volumes and residential where our numbers were up.

Q: Did you begin as a residential broker and then diversify into commercial or was it the other way?

A: We’ve always had a reputation for being strong in commercial, but as we’ve established that reputation,

32 | BROKERNEWS.COM.AU

directors of companies have asked us to look after their personal needs and that of their employees and it’s an area we intend to grow.

Q: Are more residential brokers looking to take advantage of the opportunities commercial finance affords?

A: The commercial market requires a stronger skillset as commercial debt is a lot more volatile. You might do a $5m deal in commercial and in two years’ time it may be paid down or the asset sold and the debt goes, but if you do a residential loan for 30 years the debt sits there longer.

Q: How did this year compare to the previous 12 months?

A: The beginning of this year was tough, but the back end of last year was good. Things are slower now.

Q: How have lenders been?

A: Pricing has come back and is a lot cheaper now. It’s a new playing field post-GFC.

Q: Are more residential brokers trying their hand at commercial?

A: There’s nothing too complex

senior debt lending for working capital purposes or property.

about funding a $500,000 shop for someone, but when you get into the more technical stuff such as large sub-divisions or commercial developments you need to know what you’re talking about. On top of that, we do specialist stuff like pharmacy lending and you have to know the dynamics of the trade.

Q: How do you see the commercial market faring in the year ahead?

A: Our early numbers are solid, but

Q: What’s your outlook for the commercial market?

A: Retail is tight and some of our

volatility in the equities market has caused uncertainty. The residential investment market softened in the last few months.

clients are struggling. Pre-sales are a lot harder to get at this point of time and the market is pretty shallow unless you’re close to the CBD.

Q: What type of commercial finance do you specialise in?

A: We specialise in traditional

very much. It all boils down to what makes credit and what doesn’t and those factors are the same. Clients seem better informed on what will be a successful transaction, which makes the job easier.

Q: How much do you focus on commercial finance as opposed to residential business?

A: Mainly commercial. The only residential business we now do is spin-off that results from commercial transactions we handle. We had a mortgage management arm for residential, which we’ve now closed, largely due to legislation. It was hard to comply with the variety of legislation being introduced and justify the expense of running the two businesses. With commercial, we’ve had a very good success rate, so it seemed an obvious decision to focus on commercial finance.

1 (Last year: 1) Name: Ranjit Thambyrajah Company: Acuity Funding Location: Pennant Hills, NSW Settled: $209,350,000

Q: How do you feel to be number one again this year?

A: I feel honoured to be the top commercial broker two years in a row. It’s been a hard year, but we’ve worked hard to try and stay on top.

Q: How tough has the commercial market been in the past year compared to the previous year?

A: I believe it has settled down. The rules that apply to getting a deal successfully placed haven’t changed

Q: Are more residential brokers starting to diversify into commercial finance?

A: I think more people are starting to move into it, but I think a lot of brokers have difficulty knowing how to do it successfully. The only way to do it is to team up with someone who is experienced.

Commercial finance is very unlike residential business – you need a

good understanding of a great variety of business types and if you haven’t had a lot of experience, it is impossible. We’ve been doing this for more than 25 years now, so over that time we’ve gained the knowledge and kept up to speed with the changes, and that’s why we’re successful.

Someone who was a commercial expert 10 years ago may not necessarily be a commercial expert today.

Q: Are there any particular areas of commercial finance you specialise in?

A: We’re able to do most things that come through the door, but looking at our statistics it becomes obvious that we do the large ticket items quite well and they are usually development finance and specialised securities. Specialised securities are things like pubs, clubs, nursing homes, hospitals and the like.

Q: How does the process for specialised securities unfold?

A: There are a lot of licensing issues to be aware of in terms of schools and hospitals. We also get involved in people wanting to refinance to a better structure, so an existing business that wants to improve its viability or financial commitments.

Q: What’s your outlook for the next 12 months in commercial finance?

A: I don’t see the market easing up. Our attitude in this office is to work very hard to get things done and there’s a lot of effort that goes into placing transactions. We don’t expect that to change in the near future, especially in light of developments in America and Europe – I don’t believe Australia can be immune to it, we must be affected by what has happened overseas.

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CEO & A

After the best part of a year away from the mortgage industry, Matt Lawler is back as the newly appointed chief executive of Yellow Brick Road. Barney McCarthy caught up with him to discuss diversification, fee for service and the group’s recruitment plans Q: How did you first get involved in financial services?

A: I’ve been in the financial services industry

for more than 20 years. I started in corporate superannuation, looking after large super funds for a company called Capita Financial Group, which was later purchased by Lend Lease, and [then I] worked for the Lend Lease group for a few years. Lend Lease also owned MLC and I commenced working in distribution and financial planning for MLC in the early 1990s.

I ran the MLC advice businesses for several years and when NAB purchased MLC, I ended up working on NAB’s executive team. I was asked to run the mortgage broking arm of NAB in 2007, which I did until I left in 2010.

Q: So quite a few moves while technically not leaving your employer then?

A: I have been extremely fortunate to be given a 34 | BROKERNEWS.COM.AU

HEAD TO HEAD / MATT LAWLER

Out of office Our three kids are real adventurers, so we plan trips whenever we can. On our most recent trip we went to America for nine weeks, travelling from west to east partly along Route 66, finishing up in Memphis, before heading up to New York. We then spent a further six weeks in Europe, taking in all the major cities.

Next on the agenda is a trip through Africa, so we’re planning that at the moment.

On a personal note, I’m just getting back into fitness after a long time in the corporate world where I travelled too much and went to many lunches and dinners. I’m an avid sports lover and love big sporting events.

Despite being born and bred in Sydney, I played AFL and am a big AFL fan.

wide range of opportunities for different sectors of the financial services industry while still with the same organisation. There are not too many aspects of the industry that I have not been involved with from products to distribution, advice, mergers and acquisitions, which has all given me a strong base of experience. After such a long period of moving from one exciting challenge to the next I found the intensity, energy and travel that was required had not given me much chance to have an extended break. I planned a career-break with my wife and kids, which was to be our version of a “world tour”, and after 12 months planning we took off for the US and Europe last year.

Q: Had you always planned a career in financial services?

A: I had an economics background and my father was a financial planner, so it was in the blood.

My father was a big influence on how to deal with clients and people in general. Trust and loyalty were his driving principles and he always did things in the best interests of clients even when commercially it was detrimental to him. When I asked him why he did that he simply said trust and loyalty pays you back many times over in the long run even if it costs you in the short term. I try to follow these principles when I do business.

Q: Why did you leave NAB? A: After the career break, NAB and I discussed where to next and whilst there were a few opportunities I think I had already concluded that it was time for me to do something different, outside NAB. NAB was terrific and gave me plenty of time and flexibility to consider my options. I had a list of things I was looking for in my next “adventure”, which included a smaller organisation, preferably listed on the ASX, at CEO level and one that could

use my experience in financial services. Yellow Brick Road ticked all the boxes here.

Q: Having worked with the broker channel in your last role, will it make the move to Yellow Brick Road easier?

A: My last two roles will help. Prior to the NAB role, I ran the financial planning businesses for MLC, so that will benefit me too. I spent some time in banking, but I’m by no means a career banker. The Yellow Brick Road model is ideal, because it’s about advice on home loans, insurance, investments and tax, so my background comes in useful there. I have strong experience in running licensed financial planning businesses as well as product design and distribution, so this is where I expect much of my value will be for Yellow Brick Road.

Q: Does your appointment mean Mark Bouris is moving upstairs or will you work alongside each other?

A: The combination of Mark and myself will be quite important. He’s great at building businesses and brands and has a terrific reputation in the marketplace. With the Channel 9 deal taking place Mark will be busy maximising its success. There’s going to be quite a bit of work that needs to be done on building the advice model, the licensing structure and the infrastructure to allow the branches to do what they need to do with clients and that’s more my background and what I’ll be concentrating on.

The roles are complementary, but Mark still owns the business, is the founder and will continue to do what he does well.

Q: It must be quite an exciting time to join the business what with the Channel Nine partnership?

[Yellow Brick Road recently announced a strategic alliance with Nine Entertainment]

“The Yellow Brick Road model is ideal, because it’s about advice on home loans, insurance, investments and tax, so my background comes in useful there” BROKERNEWS.COM.AU | 35

A: The space that Yellow Brick Road can really fill in the marketplace is a trusted, branded advice advocate for clients. There really isn’t a trusted advice brand out there – they are either very small or so large they are owned by a bank or a financial institution. The Channel Nine deal allows us to really carve out that space – to establish in the minds of Australians that we are an independent financial advice brand working for the consumer. The partnership will be about education, information and advertising.

Q: Do you see brokers becoming more like financial planners, as they evolve, in terms of meeting more of the client’s financial needs?

A: The way the industry is currently divided, you’re either a financial planner or a mortgage broker. We see it more through the client’s eyes, and they don’t come to you as a financial planner or mortgage broker – they come to you to solve their problems, they come to you with a range of issues they are trying to deal with, and depending where they are in their life cycle, those issues are normally going to require a range of solutions, some of which come from the financial planning part of the industry such as insurance, investments, superannuation, and some from mortgage broking such as home loans.

The industry gets caught up in its own internal structures. You could also say tax is a completely separate industry too, but through the client’s eyes, they need help getting organised. We want to have the infrastructure and resources to deal with the client’s needs as and when they arise.

Q: Under licensing and ensuring they select a suitable

36 | BROKERNEWS.COM.AU

mortgage product, should brokers be aware of clients’ full financial game plan anyway?

A: It’s part of the journey from being product salespeople to trusted advisers. What we very clearly see ourselves as is advisers to clients. Yes mortgages will be part of it, but it’s not the only product our people will talk about. The delivery of that is important, because it doesn’t mean that one person has to deliver the complexity of the advice. Yellow Brick Road, the brand, will be offering a broad range of services, but there might be a team of people sitting behind a branch that will work as a team in delivering that. If you’re organised and your team is all on the same side, what a client has is a team of specialists giving them a better result.

Q: What about the way brokers are paid? Do you see more of them adopting a fee-for-service model?

A: It’s difficult to comment on what other brokers will do, but I think from our point of view, we will see a mixture of tailoring it to the client’s needs – some won’t have the money to pay fees and other clients will demand it. We will also charge fees for advice that doesn’t involve a product, because sometimes when you sit down with a client the advice is still valuable even without a product. It’s like with accounting – there is no product called accounting, you deliver a service and charge a fee for that. We’re not averse to charging fees for the advice we give.

Q: Models such as commission refunds safeguard brokers against tyre kickers, I guess?

A: I spoke about that a year ago when the mortgage

HEAD TO HEAD / MATT LAWLER

broking industry was debating it and I explained how the financial planning industry evolved. Work goes into producing a statement of advice, and if a client is shopping around they might pay a cost recovery fee for that, but if they continue right down the track, the amount is refunded. There is no reason a model like that couldn’t work in mortgage broking, but evolution takes years not months. As I mentioned before often the advice is valuable even when there is no product.

Q: If fees had always existed, clients would be fine, but I guess it’s hard to explain to them why they are being introduced now when they aren’t aware of things like reduced commissions. Is it a case of perception and education?

A: Market forces will dictate different models being introduced and different pay structures will suit some clients and not others. Innovation is healthy and drives competition as long as what is being introduced puts clients in a better position.

Q: What other plans do you have once you have your feet under the desk?

A: Getting your feet under the desk sounds relaxing, but it’s not quite like that in reality. We have a lot of work to do. We have very aggressive plans to grow the branch network and we’re on the look-out for good, competent people whether they are existing mortgage brokers or financial planners, or even people sitting inside a bank job looking for an opportunity to become self-employed and drive their own destiny. We’re looking for high quality people. We have a good support model, a brand people know and trust and we are now

looking to grow our network with quality people who are aligned to what we believe in.

Q: A lot of successful brokers have come from a banking environment, which enables them to see both sides of the picture I guess?

A: You’ve got to be the right type of person. I’ve seen great people come from a non-banking environment and be very successful because they are great with clients and have a capacity to learn, and I’ve also seen a lot of brokers from a banking background become successful because they made the leap from employee to business owner.

Q: Do you actively recruit, or just welcome enquiries?

A: Yes we are actively recruiting, so if any of your readers align to what we are talking about and consider themselves to be quality in what they do then they should contact us. It was interesting that after my appointment was announced, I was contacted by a lot of people who think it sounds interesting and want to catch up. This shows there is interest out there for an alternative.

Q: Will licensing affect the number of enquiries? Will independent brokers want more support in the future?

A: People will join for a package of things, not just licensing. It will be a combination of good licensing and infrastructure support combined with a brand that is well known by the community and a culture that is small and inclusive. The most important thing is we are not just talking about diversification of product that in itself has become a talkfest but we are about an advice model. We are getting on and doing it – it’s the future.

BROKERNEWS.COM.AU | 37

FEATURE / PROFESSIONAL INDEMNITY

POTENTIAL

38 | BROKERNEWS.COM.AU

FEATURE / PROFESSIONAL INDEMNITY

The National Consumer Credit Protection Act introduced new regulations last year regarding compensation for consumers in the event of a dispute.

The primary way in which mortgage brokers meet these obligations is to have professional indemnity (PI) insurance. As mortgage brokers rushed to become licensed and meet the new rules, there was a flurry of activity in the PI insurance market in 2010.

While the majority of mortgage brokers will have now met these obligations, you could be making a costly mistake by assuming you’ve got the best possible PI policy available for your situation.

Fortunately, PI insurance is not something you can forget about easily as it’s not a renewable contract.

By and large brokers will have to revisit their PI insurance annually, complete a form and re-declare to their insurer what they’re doing, what their income is and whether or not they’ve made any changes with regard to business.

This built-in annual review is good for brokers as it forces them to consider whether their policy is good value and still meeting their needs. Darren Loades, corporate authorised representative of Insurance Advisernet, reckons PI insurance is something you can shop around for. “It’s fair to say that it’s as competitive now as it ever has been,” he reasons. “There are more insurers in the PI market than I’ve ever known and that’s in 20-odd years. We’ve certainly had a lot more

PI insurers come into the market in the last five to 10 years, which has had a very competitive influence on the premium rates that brokers are paying. So in real terms, brokers have never bought PI insurance cheaper.”

But Loades warns brokers there is a danger in focusing too much on price. “Take your time and do your homework, because like everything, you get what you pay for,” he explains. “Don’t just think that the cheapest option is the best option. Make sure you’re aware of what you’re getting for your money and whether it is the best value you can get.”

In addition to examining the price, brokers should be looking at the nitty gritty of the policy to see if it reflects their business activity.

OFF-PANEL LENDERS Several new issues have cropped up that could affect your cover. Loades recently noted an emerging problem with off-panel deals, after it came to light that AFG recently authorised one of its credit representatives to write business through Iden Group.

According to Loades, it’s not safe for credit reps to assume that they can just write any deal funded by any lender and the PI insurer will automatically respond in the event of a claim. “I don’t think there’s going to be too much of an issue for brokers to use wholesale lenders or fringe lenders – the main issues that I think they should double check are the offshore lenders, who aren’t subject

As the role of mortgage professionals continues to evolve, brokers should be asking whether their professional indemnity insurance policy is adequately keeping pace

PITFALLS

BROKERNEWS.COM.AU | 39

FEATURE / PROFESSIONAL INDEMNITY

to Australian regulation and/or private lenders,” he cautions. “In the past, it’s probably fair to say that most brokers would have used a private lender here and there. If they are private lenders providing consumer credit then they should be holding a licence. Are you checking to ensure that that is the case, and have you checked to confirm if your PI insurer is comfortable with you writing loans with private lenders?”

Should a dispute arise, Loades says it would be interesting to see where the onus lies. “Is the onus on the broker to make all reasonable enquiries to check on the bona fides of the lender? My interpretation of the new legislation is that it is. I don’t think it would be a fair defence for the broker to say ‘I’ve been using them for years and they said they had their licence and I just took their word for it.’ I wouldn’t be comfortable with that. Most of the PI policies will have an exclusion with regards to any claims arising from the financial viability of the lender.”

The seven biggest PI policy blunders

1

Failing to renew on time

According to authorised representative Martyn Simmons of insurer Scott & Broad/Clark Pacific, the biggest mistake mortgage brokers make is failing to renew before the policy expires. “It’s a claims-made policy, so once it expires there is no cover for anything until you renew and a new policy is set up,” he says. “I don’t think a lot of people understand the danger in not renewing the policy on time. A lot of people will say I haven’t done much in the last few weeks so it’s not a problem, but the problem is all the stuff they’ve done before that has no cover. If there isn’t a valid policy in place, then there is nowhere to make a claim.”

2

Inadequate run-off cover

ASIC mandates that mortgage brokers hold PI policies with at least 12 months run-off cover after the broker retires or sells the business. However, Simmons argues it’s simply not sufficient, as the statute of limitations on making a claim is seven years.

“A lot of the run-off policies that are out there at the moment are not sufficient for their means,” he warns. “We’ve got an unlimited run-off, which is the best in the market. It needs to be triggered by the broker when they leave the industry or retire.

40 | BROKERNEWS.COM.AU

CONTRACT PRINTING Another potential problem area could be with contract printing. ANZ and St.George added contract printing capabilities to their broker offering earlier this year, following CBA’s move to extend this service to a select number of brokers.

However, Martyn Simmons, authorised representative of insurance company Scott & Broad/ Clark Pacific, indicated that it could be a problem for some insurers.

“The more they ask the broker to do the more exposure there is,” he says. “There isn’t an exclusion in our policy for this, but it is possible that down the track when we know more about what CBA are doing, that it may fall under what we can administer, which means mortgage brokers doing a little more than the standard, but the policy wouldn’t exclude it, it just may be rated slightly differently.”

They do have to request it. But once they request it they’ve got unlimited run-off cover and it doesn’t cost anything. Now I do know that a lot of the other policies are less than that and the sting in the tail is they charge for it too.”

3

Failure to disclose services

Insurance Advisernet’s Darren Loades suggests that many brokers fail to make their insurer aware of all of their business activities – leaving them exposed in the event of a claim. “You might have a broker that assists in budgeting, cash flow, insurance and referring life insurance brokers to clients, all of which presents a higher inherent risk to their insurer, so if they don’t tell the insurer that they’re doing this and a dispute arises, then the insurer could and probably would refuse to pay the claim on the basis of non-disclosure,” he says. “So make sure you are very detailed in your description of your profession and all the services that you provide.”

4

Assuming licensee covers you

Credit reps are particularly vulnerable if they assume they are covered under a licensee’s policy, according to Loades.

“If you are a credit rep of a licensee, make sure that you’ve seen written evidence that you are covered. Unless you are specifically named on the policy, it will mean that the licensee’s policy will cover them as a result of a credit rep’s actions but it doesn’t necessarily mean that it will cover the rep as well.”

5

“HAVE YOU checked to confirm if your PI insurer is comfortable with you writing loans with private lenders?”

Too little coverage

Loades warns that credit reps could be in danger of assuming their group’s policy is going to provide enough coverage for everyone in the business. “Under a group licence policy there could be another 10, 20, 30 credit reps ... what if a claim arises for $5m and the limit is $2m? It’s not going to divvy out too well. The only good argument for being under a group policy is it saves you money. From a protection point of view, having a policy in your own name is better.”

6

Too high an excess

This is another area in which credit representatives are vulnerable.

Excess is generally calculated as a percentage of your income, so the bigger the group, the higher the excess. According to Loades, credit representatives might find that the licensee has negotiated a high excess as a way to keep the premium down.

But should a claim be made against the credit rep they will have to cover the excess to fund their defence.

7

Prejudicing the insurer’s position

Brokers are advised to communicate with their insurer as soon as a problem develops. For example, if a broker sits on a potential problem and six months later is served with a writ for $1m, then the insurer could argue that earlier disclosure could have allowed them to settle the issue for $500,000; in failing to alert the insurer, the broker has prejudiced their position.

BROKERNEWS.COM.AU | 41

THINGS I’VE LEARNED

Gerard Tiffen is a familiar face on MPA’s Top 100 list – having consistently outperformed other mortgage professionals for a spot among the highest ranking brokers in the country. What’s his secret?

Q: What do you attribute your success to?

A: Having created a detailed customer service model centred on my clients has taken a lot of time and effort, but it works.

Q: What keeps you motivated?

A: Setting goals is the only way I can stay focused.

Having great peers and a mentor program that allows me to bounce ideas off others also keeps me accountable.

Q: What has been the biggest turning point of your career?

A: Looking back I think paying top money for good support staff was one of the best decisions I ever made.

At the time I thought it was crazy, but what I was paying

42 | BROKERNEWS.COM.AU

and getting before then was not working. Also, having a great mentor that could keep me accountable to them and myself has definitely helped.

Q: When did you take on your first employee?

A: In 1995 I employed my first employee – a receptionist that at the time we struggled to afford. However, it gave me a big sense of responsibility. It made me think, “hang on, it’s not just me now – I have her to pay, plus she has a family. I’d better pull my finger out and write some business.”

Q: Have you faced any professional hurdles, and how did you overcome them?

A: I think you face hurdles every day in this business

BROKER PROFILE GERARD TIFFEN

“Peer to peer, business to business. Creating relationships is the best and only way to go unless you have a budget like Coke or McDonalds, I think.”

Fact file Gerard Tiffen

++ Fact file: Gerard Tiffen ++ Company: Tiffen & Co/ The Mortgage Detective ++ Location: Kingston, ACT ++ Years as broker: 16 ++ Settled (2009/10): $93,605,473 ++ Awards: MPA Top 100 broker 2009 and 2010

and the only piece of advice I can give around that is to concentrate on the solution to the problem, not the problem itself, and convey your desired outcome to all parties. Focus on how you can fix it.

Q: What kind of advice would you give a new broker?

A: Create a peer group, have mentors and friends you can trust and who can keep you honest in your journey.

Aim to write one loan, then two loans and build slowly from there.

Q: What are you doing differently from other mortgage professionals?

A: It’s a tough question as I don’t watch what others are doing. I’m just concentrating on doing the right thing by my clients every time.

Q: Are there any areas of your business you’re looking to improve?

A: We’re always looking at improving and growing – especially our customer service model.

Q: What do you do to reduce clawbacks?

A: A lot of marketing both direct and through

I’d rather hold a boardroom lunch and invite 10 accountants, solicitors, financial planners and hire a speaker, than throw $10,000 at a radio advertisement.

Q: Given that hindsight is 20/20, is there anything you’d do differently in your career?

A: As Sinatra said: “Regrets I’ve had a few, but then again too few to mention”.

Q: Do you feel fee for service is the way forward in the industry?

A: No. Q: What is the most challenging issue facing the industry at the moment?

A: We have a fantastic industry with great partners and support. The only issue I can see in the immediate future is where the next wave of professional brokers are coming from. I’d like the MFAA and FBAA to concentrate on getting into schools, TAFE courses, even universities, to attract young enthusiastic kids into our industry. It’s a great service we provide, but the average age in the industry seems to be ever increasing.

multimedia, as well as following our customers up on milestones such as one-year anniversaries.

Q: Do you diversify and if so, in what areas?

A: I don’t as I haven’t been convinced the holistic approach is right for us. We are great at what we do – providing the best possible mortgage for our clients with the least hassle. I just think my focus would be different if I did diversify.

Q: What form of marketing works best for your business?

A: Peer to peer, business to business. Creating relationships is the best and only way to go unless you have a budget like Coke or McDonalds, I think.

Joining forces Tiffen & Co managing director Gerard Tiffen solidified his business’s dominance in the ACT by merging with The Mortgage Detective in 2008. Tiffen and The Mortgage Detective’s Alison Whittle have almost 40 years broking experience between them. The team also includes broking superstar David Friend, who ranked 20th on this year’s Top 100 list. Tiffen believes the company’s point of difference is the way they inspire their customers. “I try to be a little bit inspiring to our customers – it’s important to them that we are passionate about what we do.”

BROKERNEWS.COM.AU | 43

COLUMN / INTERVIEWS The mortgage market is very much a people industry, whether you are a mortgage broker or work for a lender, provider or aggregator. You interact with dozens of people a day and make decisions based on the information you glean from these conversations. But how can you tell if you are being told the truth?

According to Steven Van Aperen, a man dubbed “the human lie detector”, most people deceive around 30 people a week and are lied to up to 200 times a day. This means we are lied to in roughly a third of our conversations.

Such facts are no reason to doubt every word your colleague utters or to suspect every client is trying to execute mortgage fraud, but it certainly gives some food for thought.

Whether helping a first homebuyer or interviewing a job candidate, it’s vital to establish the truth. Barney McCarthy talks to a renowned investigator about getting to the bottom of deceit

TRUTH TIPS Here are Steve Van Aperen’s top tips on how to establish whether someone is telling the truth: • Is the person answering your question or sidestepping the issue?

• Is the person answering the question with another question or deflecting?

• Is the person omitting details, defensive, dismissive or evasive (behaviours that are often associated with avoidance).

• Is there conflict or contradiction between what a person is saying and what their body language is doing (such as nodding their head in the affirmative while denying something)?

• Is the person using concealment, blocking or masking gestures such as a hand covering the mouth or face while talking?

• Are verbal statements accompanied by contradictory non-verbal cues of doubt such as the shrugging of shoulders?

• Is the person slow to respond to a straightforward question? They may be buying time in order to configure a response. Are they changing their tone, or uhmming and ahhing?

• Is the person editing or excluding themself from the story, for example, saying “then went to the store” instead of “I went to the store”?

• Is the person creating distance, disassociation or separation in their story such as failing to use pronouns denoting ownership?

• Is the person exhibiting microexpressions or distress signals such as anger, happiness, sadness, disgust, contempt or surprise that are out of context or incongruent with what they are saying?

• Do your interview questions induce a change in the person’s behaviour?

• Is the person blaming their poor memory by making statements such as “I don’t remember”, “I’m not sure” or “I can’t recall”?

• Is the person making succinct and clear denials or making objections?

When asked “did you steal that money?” a natural response would be “no I didn’t” as opposed to “why would I do that?” or “it’s wrong to steal”. The latter is an opinion but not a denial.

WHITE LIES Not all fibs are trying to topple governments or swindle money.

Some small lies are issued to save face or spare the recipient’s feelings.

Here are the five most common lies, according to Van Aperen: “It was nice to see you” “Sorry I missed your call” “The cheque is in the mail” “I’ll give up tomorrow” “We have to catch up” Steven Van Aperen has received extensive training from the world’s leading international investigative authorities in how and why people deceive. He was the first Victorian Police Officer to graduate from Western Oregon University as a certified polygraph examiner. Steve trained with and examined polygraph testing and behavioural interview techniques utilised by agencies including the Los Angeles Police Department (LAPD), US Secret Service and the FBI. For more information visit svatraining.com.au

THE IMPORTANCE OF

TRUTH

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COLUMN / INTERVIEWS

BROKERNEWS.COM.AU | 45

AUSTRALIAN

Finalists

AUSTRALIAN MORTGAGE AWARDS 2011 / FINALISTS

T

Official event partner

This year not only marks the 10th birthday of MPA, but also sees our prestigious awards ceremony notching up a decade. The Australian Mortgage Awards is the home loan industry’s Oscars, and winning one is the pinnacle of achievement for brokers, lenders and business leaders. More than 700 of the industry’s finest will converge on Sydney’s glamorous Town Hall for the glitzy presentation ceremony on 14 October hosted by NRL legend Peter Sterling.

The awards night itself is the culmination of months of meticulous research, nominations, submissions and planning. Nominations have been received from the general public and industry experts, internally vetted and put through an extensive interview and research process. The winners will be chosen by an illustrious panel of judges on the night, but in the following pages we are proud to unveil the finalists in each category.

MPA and publisher Key Media would like to thank the record numbers who took the time to vote, acknowledge the support of our sponsors and congratulate those who have been shortlisted. See you on 14 October!

Event partner

Westpac is Australia’s first bank and first company. We have 194 years of experience helping customers to achieve their financial goals, through good times and bad.

With a strategic focus on Australia, New Zealand and the near Pacific, the Westpac Group provides a broad range of banking and financial services, including retail, business and institutional banking.

Westpac is passionate about, and extremely proud of, its deep heritage. However, today

Westpac strives to offer its mortgage broker distribution partners first-class service and a broad range of award-winning home loan products, with focus firmly on the future and delighting the 10 million customers we put at the centre of everything we do.

Huw Bough, general manager, Westpac third party mortgage broker distribution

BROKERNEWS.COM.AU | 47

Sponsored by BDO

Most Effective Internet Presence

Best Industry Service

ANZ

AAMC TRAINING GROUP

“We are very pleased with the nomination for Most Effective Internet Presence. ANZ was one of the first major banks to embrace mortgage brokers and we greatly value the relationships we have developed over the past 12 years.”

BANKWEST “At Bankwest we recognise that in today’s environment, ease of technology is critical to assisting our third-party distribution channels. We are excited to be nominated for Most Effective Internet Presence as a means of supporting the industry that is vital to our ongoing success.”

COMMONWEALTH BANK OF AUSTRALIA “The internet is not just a tool, it’s the way business operates in the 21st century. It is the key to increased transparency, access and efficiency in an online environment. We are proud of our achievements with CommBroker.”

HOMELOANS LTD “We have invested a great deal of time and effort into our internet presence as a resource for homebuyers and customers alike and as a means to effectively communicate our proposition to the market. It is very pleasing to be recognised with this nomination as it vindicates our approach and reinforces that we’re on the right path.”

LIBERTY FINANCIAL “The internet is a powerful means by which to reach our customers and business partners, and we utilise it as much as possible, so we are thrilled that our efforts have been recognised with this nomination.”

WESTPAC “To be nominated is a coup for Westpac and this recognises the ability of our team in the online space.

It is pleasing to see that our online marketing efforts are recognised by both the mortgage industry and our brokers. To receive a finalist nomination lays a good foundation for refining our online approach.”

Sponsored by As the fifth largest full service accounting and advisory network nationally and globally, BDO excel at creating strong relationships with brokers, lenders and banks who are seeking a combination of technical excellence with a specialised range of services and a desire for outstanding client relationships.

Our ability to create and maintain outstanding relationships is based on our understanding that each of our clients is distinctively different.

Nationally we have 155 partners and over 1,300 people providing Audit, Tax and Advisory services to clients throughout Australia.

Contact: Scott Tobutt, associate director – audit P: 02 9286 5555 E: scott.tobutt@bdo.com.au W: www.bdo.com.au

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“AAMC Training is delighted to have our efforts and understanding of the industry recognised with this nomination. We are passionate about working with the financial services industry, assisting members to be the best that they can be and raising the level of professionalism within the industry.”

FRONTRUNNER CONSULTING GROUP “We are very pleased to be nominated for the Best Industry Service Award and to make it as a finalist is fantastic. We look forward to another festive Australian Mortgage Industry Awards night.”

INTELLITRAIN “We are delighted to have been nominated for our third year in a row. Our team works tirelessly to support brokers in developing themselves and growing their business, and it’s nice to be recognised.”

LOANWORKS TECHNOLOGIES “We are proud to be a finalist for Best Industry Service.

Thanks again to our customers for your nominations and testimonials.”

STARGATE GROUP “At Stargate we are extremely proud to be nominated for Best Industry Service for a fourth consecutive year. We strive to build innovative technology solutions to reflect our ethos of empowering tomorrow’s brokers today, so we are very proud to have received this recognition from our industry peers.”

INSTITUTE OF STRATEGIC MANAGEMENT “We are delighted to be nominated for this award as we are passionate about delivering high quality education in the finance industry.”

AUSTRALIAN MORTGAGE AWARDS 2011 / FINALISTS Official event partner

Best Industry Advertising Campaign COMMONWEALTH BANK OF AUSTRALIA

MORTGAGE EZY

“Our advertising campaign is based on our CVP ‘your partner in success’ and I am very proud that our messages are being recognised as key planks in our support for brokers.”

“Being nominated as a finalist for the Australian Mortgage Awards is both satisfying and an achievement we’re exceptionally proud of. We’d like to thank everyone who recommended and supported our nomination for Best Industry Advertising Campaign.”

CITIBANK

VOW FINANCIAL

“It’s a great honour for Citibank Mortgages to be a finalist in the AMs, but the real accolade goes to the brokers we work with. Their ongoing support has been instrumental to Citibank’s success in the mortgage market.”

“After 18 months of operation we are extremely proud to be included in this category as a finalist. It’s great to see the recognition of our messages and themes in behind the brand launch of Vow in the market place.

Bring on the AMAs!”

NAB BROKER

WESTPAC

“The NAB Broker team are delighted to be nominated for this award and recognised for a campaign, which is all about our long-term commitment to brokers and their clients.”

“This nomination is great news given the highly competitive mortgage marketing environment for lenders in Australia. This is a highlight for Westpac’s third-party marketing team and demonstrates that we are delivering for our brokers by providing an ongoing solid benchmark for our future promotional campaigns.”

LIBERTY FINANCIAL “As a genuine lending alternative, we aim to make our advertising campaigns stand out from the crowd with a light-hearted, humorous tone, so to be recognised for our efforts makes us extremely proud.”

BROKERNEWS.COM.AU | 49

Sponsored by Westpac

Best Community Engagement 1st STREET “We regularly seek ways to give back to the community that has been so supportive of us over the years. We feel strongly about those who we support and this nomination is an unexpected bonus.”

CONNECTIVE “We are thrilled to be recognised as finalists for Best Community Engagement. Connective is proud to support charities here in Australia and is committed to promoting social responsibility.”

GEORGCO “It is an honor to again be nominated for an Australian Mortgage award. This particular category is a very exciting nomination for us as it acknowledges the image that we respect the most and have always wanted to reflect within our business.”

HOUSE + HOME LOANS “Community engagement on both physical and financial bases provides a fantastic way for our team to give back to the myriad communities in which they live.

This nomination is a tribute to the team, most of whom actively donate time and/or financial resources to community organisations and causes. A number have taken community leadership roles, reflecting the depth of talent within our team.”

OXYGEN HOME LOANS “Oxygen would like to thank MPA, Westpac and your readers for this prestigious nomination. Our team is proud to be recognised for our contribution to our community. We are humbled by this nomination.”

PINK FINANCE “We are truly honoured to be nominated in this category. Being recognised in this area of our business highlights the importance for business to engage with the community. It makes it so much more fulfilling and purposeful for all parties.”

Sponsored by Today, Westpac strives to offer its mortgage broker partners first class service and a broad range of award-winning home loan products, with the focus firmly on the future to delight them by placing brokers at the centre of everything they do.

Westpac continues to strengthen its relationship with brokers and aggregators, through its branch, operations and broker teams working together to provide: • the best BDMs • the consistency of service • transparent communication; and • opportunities to meet local bank managers to build strong local business partnerships Contact: Neville Anitelea, senior manager – communications & marketing, Westpac Mortgage Broker Distribution Westpac Retail & Business Banking P: 02 8254 8133 E: nanitelea@westpac.com.au W: www.westpacbrokerbase.com.au

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Best Customer Service from an Individual Office CENTURY 21 / HOME LOANS SOLUTIONS FUNDING – DURAL “It makes us feel very proud to be nominated for this prestigious award and delighted to be a finalist – particularly given the high calibre of professionals in the industry. It gives us much joy assisting people to achieve their dreams and goals.”

CHOICE HOME LOANS – BLUE MOUNTAINS “We are thrilled to be announced as finalists again in this category. We are looking forward to retaining our reputation as the best in our industry after winning this prestigious award last year.”

INTELLIGENT FINANCE – BONDI JUNCTION “The mortgage-broking industry is known for great customer service. It brings great joy to our team and our clients to again be recognised for such a prestigious award.”

OXYGEN HOME LOANS – COOGEE “We would like to take this opportunity of thanking the sponsors of this event, AFG my aggregator and the team at Oxygen and McGrath. Being nominated in two categories is extremely rewarding. To be recognised by our peers in the industry helps us keep striving to make a difference in a very competitive market.”

PLAN2DAY FINANCIAL STRATEGIES– BAULKHAM HILLS “It’s an honour and a privilege for the team at PLAN2day to be recognised by clients as well as industry peers. This nomination has come as a reward for our dedicated team – every member worked hard over the past months and as a team we have achieved remarkable customer satisfactions, resulting in great business results.”

SMARTMOVE – NEUTRAL BAY “We are proud to be nominated for this award. We love dealing with people and will always look to help them where possible.”

AUSTRALIAN MORTGAGE AWARDS 2011 / FINALISTS Official event partner

Sponsored by Bankwest

Best Aggregator BDM FIONA BROWN, CONNECTIVE “Now in my fourth year with Connective, it is wonderful to be a finalist for Best Aggregator BDM. I strive to add value to both my business and the businesses of the brokers that Connective represents.”

PETER BRYANT, VOW FINANCIAL “I feel extremely honoured that my work skills and ethics within the mortgage industry have been recognised by the broking community by being nominated for this prestigious award. This would not have been possible without the solid support team around me at Vow Financial.”

DARYL CROOKS, PLAN AUSTRALIA “I feel honoured, humbled and privileged to be nominated for this award. Knowing that I have been nominated by my broker partners makes this nomination even more of an honour.”

CRAIG HIGHMORE, PLAN AUSTRALIA “When your passion in life is helping brokers grow fabulous businesses, being recognised as an AMA finalist is a great honour and privilege.”

JEANETTE ROWLAND, CHOICE “I am proud to be nominated by my peers for this award. In an industry built on relationships, it is an honour to be chosen as a finalist.”

GEORGE SRBINOVSKI, AFG “It’s an honour to be nominated as a finalist for such a prestigious award. Working with my members to achieve their business goals is extremely rewarding.”

CHRIS STRAW, FAST “It is flattering to be nominated for this award and be recognised by my broker partners and peers for doing a job that I really enjoy and am passionate about.”

Sponsored by bankwest’s vision is to be the best value, most innovative and approachable bank in Australia with an absolute focus on customer satisfaction. At bankwest we truly believe in delivering innovative and competitive products that make us stand out from the competition.

We are proud to be one of the first lenders to support the broker channel. bankwest are as enthusiastic and passionate about this channel now as we were when we first entered this market over two decades ago. We are excited about the future opportunities that await us, and will carry on investing and working with our broker partners to further cement our position as a lender of choice in the Australian Market.

Contact: Tatiana Day, national media manager, Corporate Affairs P: 02 9276 8101 E: tatiana.day@bankwest.com.au W: www.bankwest.com.au

BROKERNEWS.COM.AU | 51

Best Non-Bank BDM

Best Bank BDM

DANIEL CARDE – RESIMAC

ROB DAY, WESTPAC

“It is extremely gratifying to be nominated and selected as a finalist in this year’s AMAs. I am encouraged that my customers value the contribution I make to their business.”

“In a highly competitive mortgage market, it is an honour to be a finalist in the 2011 AMAs. As a Westpac team representative, I am both privileged and honoured to be recognised alongside BDMs known for their focus and commitment to helping professional brokers meet their client needs.”

MATT CUZNER – ADVANTEDGE “It is a privilege and honour to be a finalist in what is such a highly competitive market. The refreshing and pro-active approach I am able to bring to the broker/BDM relationship is a testament to the fantastic team alongside me at Advantedge.”

PAUL MCCONVILLE – HOMELOANS LTD “It is very pleasing to be nominated for this prestigious award. Although my key motivation is to have satisfied customers, to be recognised in this fashion is very humbling.”

BRIAN MCMAHON – RESI HOME LOANS “I feel honoured to be nominated for the Non-Bank BDM of the Year Award. I get great support from the Resi team and enjoy working with brokers.”

LYNN SAWYER – BARNES HOME LOANS “I am thrilled to be a finalist. I work with so many brilliant and successful brokers, I feel like I have already won just knowing that they think I am good enough to be in the running for this award.”

ROMNEY FERGUSON, ST.GEORGE “I’m absolutely thrilled to be nominated for an AMA. I love what I do and it gives me a great sense of personal satisfaction and professional pride to know that my customers value and appreciate the work I do with them.”

ANDRES GUZMAN, BANKWEST “I am thrilled to be nominated for such a prestigious award. This nomination will further increase my motivation to do what I enjoy most – work closely with brokers to develop their business and ensure a high level of customer satisfaction.”

NATASHA KELSO, COMMONWEALTH BANK OF AUSTRALIA “No words can express how I felt when I was told I am a finalist for the second year running. Thank you for your continued support.”

DAMIEN MUIR, COMMONWEALTH BANK OF AUSTRALIA

ANTHONY WICKREMASINGHE – LIBERTY FINANCIAL

“I am honoured and extremely proud to be acknowledged by my brokers for doing a job I really enjoy – helping them grow their businesses and assist their customers achieve their financial goals and dreams.”

“There are many good BDMs in this industry, so it is a real honour and a great feeling to be nominated for best non-bank BDM.”

NICK MURRAY, NAB “Personally it’s an honour to be nominated. NAB Broker has significantly improved how brokers interact with our business, which has effectively improved the end customer experience.”

The winners of the Wealth Today Golden Morgie for Lifetime Achievment in the Mortgage Industry, NAB Australian Brokerage Of the Year, Australian BDM of the Year, Commonwealth Bank Australian Young Gun Of the Year, and Westpac Australian Broker Of the Year will be announced on the night.

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Sponsored by

wealthtoday

At Wealth Today we transform mortgage brokers into true finance professionals, because getting a client a mortgage is no longer enough!

It’s time for mortgage brokers to evolve, just as the industry is evolving around them. Join Wealth Today and seamlessly add financial planning and fee for advice to your existing mortgage broking business. We’ll take you from start up to success and beyond!

Contact: Michael Stephens, CEO P: 1300 364 699 E: info@wealthtoday.com.au W: www.wealthtoday.com.au

Sponsored by NAB Broker is the specialist distribution business within NAB Personal Banking. Our vision is to be the ‘partner of choice’ for the future leaders of our changing industry, enabling brokers to become trusted advisers to their clients, and grow sustainable and valuable businesses. Product solutions include our core lending platform Homeside, NAB mortgages via our Loan Writing Solutions service, NAB consumer banking and cash solutions, MLC insurance and Allianz general insurance.

Contact: NAB Broker P: 1300 622 276 E: brokerservices@nab.com.au W: www.nabbroker.com.au

Sponsored by Pepper Homeloans

Broker of the Year – Broker of the Year – Commercial Real Estate Non-Conforming SCOTT COLLESS – CENTURY 21 HOME LOANS “I am honoured to be nominated by my peers for this award. I am very passionate about the finance industry and despite the challenges we have encountered over the last few years, I believe the mortgage-broking industry has a bright future in Australia.”

MELANIE BURNS – RED ROCK MORTGAGES “It is quite humbling to have your work recognised by your industry peers. In particular, I am proud to be acknowledged as a leading nonconforming broker given that this is such a specialised area and serves such an important section of the community that is not serviced adequately by traditional lending institutions.”

PAUL MITCHELL – MORTGAGE HELPERS AUSTRALIA

KELVIN SMITH – SMITH FINANCE

“It is good to see the long days and late nights have paid off and I wish to thank my clients, lenders and great staff for their support.”

“I was delighted and honoured to be nominated in the Australian Mortgage Awards and couldn’t wait to tell and thank all my clients, associates and lenders for their belief in me and their support in what has been an outstanding year at Smith Finance Group.”

GRAHAM REIBELT – OASIS MORTGAGE GROUP

TOM WALTHAM – CAPITAL UNITED

“It’s an honour to be recognised for the work I do in an area I’ve specialised in for over 15 years.”

“It is always an honour to be recognised by your industry. I am delighted to have been nominated for this award.”

JULIE SMITH – YOUR MONEY MORTGAGES

MATTHEW WATTS – EZY CAPITAL MORTGAGE AUCTIONS “It’s great to be nominated as a finalist for this award and recognised for the contribution made, especially in the non-bank sector. I wish all my fellow finalists the best of luck on the night of the AMAs.”

GREG WELLS – WELLS PARTNERS/ MORTGAGE LINK GROUP “I regard the AMAs as one of the most prestigious industry acknowledgements as it is open to all brokers.

I am thrilled to have the opportunity to potentially receive the trophy for the third year running in this category.”

“I feel honoured to be nominated as a finalist in the AMAs. As brokers we can spend countless hours in trying to find the best solution for clients and enacting that with lenders. The best feeling is to know you have helped someone, and to have this nomination is a wonderful award in itself. I am looking forward to the awards night, and especially in meeting fellow brokers with the same passions as myself.”

MATTHEW WATTS – EZY CAPITAL MORTGAGE AUCTIONS “The non-conforming arena has been one of adaptation since inception of the new NCCP requirements. I’m honoured to be a finalist for this award in particular and recognised for the role I play in supporting the non-banks that supply funding in this niche market.”

Sponsored by Pepper is a flexible, service-driven home loan specialist. Our residential mortgage products are designed for self-employed borrowers and the growing number of prime-quality customers who want a mortgage but are excluded by the big lenders because they fail LMI criteria or an automated credit scoring decision.

Contact: Liz Rochaix, head of product and marketing P: 1800 737 737 E: lrochiax@pepperhomeloans.com.au W: www.pepperonline.com.au

BROKERNEWS.COM.AU | 53

Sponsored by AlI Group

Sponsored by Commonwealth Bank

Broker of the Year – Insurance (Loan Protection & Life)

Quality Young Gun of the Year – Franchise

ANGELO DE PASQUALE – WATERSTONE FINANCIAL SERVICES “I’m proud to be nominated as a finalist in the insurance section as I feel that I do what everyone should be doing in protecting my clients against the biggest personal debt in their lives. Thank you for recognising my efforts.”

DAN FOX – FOX FINANCE GROUP “Insurance is a great way to protect your customers and a great way to diversify a broker business.”

MICHELLE GOODY – EASY LOANS “I am excited to have made it to the finalist stage and thank you for the nomination.”

MICHAEL HUGHES – MERLOT FINANCE AUSTRALIA “I feel privileged and excited to be nominated for this award. It has come about through hard work and perseverance. Insurance is simply my duty of care to all of my clients.”

NANDINI VARMA – MORTGAGE CHOICE “It is gratifying to be recognised for my passion to help my clients and their loved ones with their insurance requirements for their continued well-being in times of need.”

ANDREW CROWTHER – LJ HOOKER “I feel both honoured and privileged to be nominated for such a prestigious award so early in my career.

My success can be attributed both to my dedication and passion to the finance industry, and also due to the support of my wonderful network here at LJ Hooker Sunnybank Hills.”

CHRIS LEE – MORTGAGE CHOICE “My focus on excellence and a ‘client for life’ approach is enhanced by the support the industry shows me. I’m proud of the Mortgage Choice vision and this nomination has made me feel extremely honoured.”

ANDREW MOREL – CLUB FINANCIAL SERVICES “I was thrilled to receive a phone call telling me I was nominated for an AMA. We don’t work for awards, but when some recognition comes your way it’s pleasant to know your hard work is being acknowledged.”

ERNIE REIBELT – OASIS HOME LOANS “I am very honoured to be nominated for my first industry award. These are exciting times for our industry and it’s a privilege to be a part of it.”

DAVID VEIGLI – CLUB FINANCIAL SERVICES “It’s great to be recognised in this category and be a finalist for this award. The future of the industry is bright for those willing to work hard and reinvent their business.”

PAUL WRIGHT – IPS HOME LOANS “I am honoured to be nominated as a finalist in the Australian Mortgage Awards and thank all my clients who have allowed me and my business to assist them with their financial needs.”

Sponsored by Sponsored by ALI Group is a specialist risk insurance business committed to ensuring loan consultants can offer their clients convenient and timely access to affordable loan protection. ALI products are easy to understand and obtain and the claims process is straightforward. We are the leader in this space, having provided over $25 billion in cover to over 100,000 Australians.

Alexandra Yaniv, marketing manager P: 1800 006 776 E: alexandrayaniv@aligroup.com.au W: www.aligroup.com.au

54 | BROKERNEWS.COM.AU

With a vision to be Australia’s finest financial services organisation through excelling in customer service, Commonwealth Bank is market leader in the third party broker market and the Australian home loan market.

Commonwealth Bank offer strength in uncertain times and are determined to be different through their partnership approach to doing quality and mutually profitable business with mortgage brokers.

Contact: Emoke Palos, general manager marketing communications and events Third Party and Mobile Banking P: 02 9118 1842 E: emoke.palos@cba.com.au W: www.commbroker.com.au

AUSTRALIAN MORTGAGE AWARDS 2011 / FINALISTS Official event partner

Sponsored by Commonwealth Bank

Quality Young Gun of the Year – Independent LEAH BUSBY – BLACKFISH FINANCE

KYLIE RAVENS – STAKKS FINANCE

“I really enjoy our exciting and fast-paced industry and helping people achieve their goals, so to be nominated for such a prestigious award among my peers is a great honour.”

“It’s an amazing feeling to be a finalist in something as prestigious as the Australian Mortgage Awards. Being side by side with my peers will be a very proud moment.”

MARK LYONS – SMARTMOVE

ANDREW STEVENSON – TH!NK LENDING SERVICES

“This nomination inspires me to become better at what I do and I am excited to continue helping my clients to achieve their financial goals.”

ALEX NOCHAR – OXYGEN HOME LOANS “I would like to thank MPA, CBA and your readers for this prestigious nomination. I am proud to be recognised as one of the best new industry entrants and would like to thank Oxygen, AFG and McGrath for their excellent support.”

BRAD QUILTY – ELDERS HOME LOANS “I am very excited to be nominated for an AMA. It is an unexpected recognition of the hard work we do for our clients and I am really looking forward to the awards night.”

“I am extremely humbled to be recognised and nominated by my peers. This honour has completely validated my choice to join an exciting industry where I can help people achieve their dreams.”

Sponsored by With a vision to be Australia’s finest financial services organisation through excelling in customer service, Commonwealth Bank is market leader in the third party broker market and the Australian home loan market.

Commonwealth Bank offers strength in uncertain times and is determined to be different through its partnership approach to doing quality and mutually profitable business with mortgage brokers.

Contact: Emoke Palos, general manager marketing communications and events Third Party and Mobile Banking P: 02 9118 1842 E: emoke.palos@cba.com.au W: www.commbroker.com.au

BROKERNEWS.COM.AU | 55

Sponsored by St.George

Sponsored by Australian Financial

Broker of the Year – Franchise

Broker of the Year – Independent

BRAD ANDERSON – MORTGAGE CHOICE

RAEL BRICKER – HOUSE + HOME LOANS

“It fills me with pride to be nominated for this award. I have been in the industry for 12 years and have built my business on an ethos of constant communication with my customers. This approach has allowed me to build a very successful business and it is wonderful to be recognised by my franchisor and peers.”

“This nomination allows me to reflect on my 10 years in the industry and how enjoyable it has been to be able to grow a business that helped over 4,000 people over that period.”

CATHY ANDERSON – SMARTLINE

MARK DAVIS – THE AUSTRALIAN LENDING & INVESTMENT CENTRE

“It’s gratifying to be recognised for the strong and continued growth of my business, as well as our efforts to continue to deliver exceptional client service.”

“It is an absolute thrill to be nominated for this award and something I’ve aimed and worked for since I became a broker 20 months ago. The AMAs are of high prestige in our industry.”

KERRY CLEANTHOUS – CLUB FINANCIAL SERVICES “This nomination is sincerely humbling. Being nominated as a finalist is truly an honour and acknowledges that keeping the client’s needs central is paramount in building a long-term, sustainable and successful business.”

PEITA DAVIES – CHOICE HOME LOANS “Being nominated as a finalist in this prestigious award is humbling. I strive to be the best broker I know how to be, and by setting a standard for other brokers to follow.”

BEN EICK – LJ HOOKER “I’m honoured and jubilant to receive this nomination.”

GEOFFREY SLATER – CENTURY 21 / FINANCE 24/7 “I feel humbled and honoured to be nominated for this prestigious award. It is a delightful surprise given the high calibre of mortgage professionals nationally. I take great satisfaction assisting in making a difference to peoples’ lives.”

Sponsored by St.George Bank is one of Australia’s leading Retail and Business Banking brands.

At the bank’s core is a close relationship with its customers. This remains the cornerstone of future strategies and an important tradition that differentiates St.George from other Australian banks. Our goal is to be the best mortgage lender for our broker partners, providing award winning products and service and more satisfied customers.

Contact: Steph Kay, communications manager, intermediary distribution P: 02 9236 2952 E: kays@stgeorge.com.au W: www.stgeorge.com.au

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JUSTIN DOOBOV – INTELLIGENT FINANCE “It’s a great honour to be a finalist in this category. Thank you to our clients for the business and my team for the great support.”

PETER ELLIS – OXYGEN HOME LOANS “I would like to take this opportunity to thank the sponsors of this event, AFG my aggregator and my team at Oxygen and McGrath. Being nominated in two categories is extremely rewarding. “

JEREMY FISHER – 1ST STREET “It’s an honour to be considered among the best in the industry. I always go above and beyond to ensure that my client’s goals are achieved and ensure 100% satisfaction each and every time.”

LEONIE JACKSON – GREAT AUSSIE DREAM “I am passionate about what I do and I am excited and proud to be named a finalist. They say life begins at 40 and what better way to continue celebrating?”

SIMON ORBELL – SMARTMOVE “I am overwhelmed by the nomination and it’s exciting to be involved in the awards. It motivates me to improve further and deliver more for my clients. Thank you.”

ISMAIL OZSOY – TOUCH OF FINANCE “Unlike the words of The Rolling Stones’ hit ‘Satisfaction’, I do get satisfaction in becoming a finalist. If I win, as a gift I will be belting out the song.”

Sponsored by

Established over 16 years ago, Australian Financial is a leading mortgage manager offering competitive prime and non-conforming products.

We have recently introduced our self-managed super fund loan at a competitive standard variable rate. A 48-hour indicative approval commitment, panel appointments from some of Australia’s leading aggregators and products from some of Australia’s leading lenders are topped off with our high level of services and competitive commission structure. No wonder Australian Financial has been a top mortgage originator for the past three years.

Contact: Alicia Carter, marketing manager P: 03 9222 5600 E: acarter@ australianfinancial.com W: www.australianfinancial.com

Sponsored by Australian First Mortgage

New Brokerage of the Year THE AUSTRALIAN LENDING & INVESTMENT CENTRE “This nomination is fantastic recognition for all the hard work the directors and staff have put into building the business since commencing some 20 months ago. We knew we had the right ideas, goals and skills, so to be nominated in our first full year is extremely rewarding.”

CLUB FINANCIAL SERVICES – NORTH MELBOURNE “Setting up a new office involves lots of time and effort, but surrounding myself with great people has made the effort so much easier. To pick up this nomination is great reward for myself and all involved in getting this office up and running successfully.”

LENDING4U – DEVONPORT “This nomination is a fantastic honour and is the culmination of a lot of hard work over the past 12 months. As a finalist it truly reflects our vision to be the number one holistic financial services provider in Tasmania.”

LOAN MARKET – SPRINGFIELD, BRISBANE WEST & IPSWICH “It is a great honour to have our office nominated for such an award. We continually strive to deliver the best possible service to all our new and existing clients and this award is a reflection of their faith in our service offering.”

LOAN STUDIO – MELBOURNE “The team at Loan Studio is thrilled to be nominated for this award in our first year of operation. We look forward to meeting all the other finalists and celebrating this achievement in Sydney.”

PROLINK FINANCE – SYDNEY “Being nominated has given me a great morale boost, but it has also given me a sense of delight and responsibility. We are delighted with the acknowledgment.”

STAKKS FINANCE – SYDNEY “Having only been in operation for such a short time, it is incredible to be nominated, let alone be a finalist.

This is a great achievement for my business.”

Sponsored by Australian First Mortgage (AFM) has offices in NSW, Vic, Qld, SA and WA. The founding directors are David White, Tanya White, and Iain Forbes.

AFM specialises in residential and commercial lending. Our products are competitively priced and our senior credit staff can approve loans up to $2m.

Contact: Iain Forbes, director sales & marketing P: 02 9643 4301 Tanya White, managing director P: 02 9643 4302 David White, director credit services P: 02 9643 4303 E: info@australianfm.com.au W: www.australianfm.com.au

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Brokerage of the Year – Diversification CEC FINANCE “To receive recognition at the highest level is extremely rewarding. Being a finalist will assist me in reinforcing to my clients the importance of being connected to a network of trusted professionals as part of a full service offering.”

CHOICE CAPITAL “It’s fantastic to be nominated for this prestigious award. As a company we strive for excellence every day and to be recognised for special achievement by our piers and MPA is very rewarding. Our staff do a superlative job and any success that comes our way is due in most part to the great team we have worked hard to build over many years.”

CUBE CENTRAL “It is a great honour to be nominated for this award, especially given the calibre of the finalists. I would like to thank the team from Cube Central along with our clients, our support network including our lenders and their staff and most importantly our families.”

HORIZON FINANCIAL “We are elated to have been nominated as a finalist in the 2011 AMAs. Horizon Financial has worked tirelessly over the last two years to ensure that its diversification strategy would be a success. Our transition from a successful finance brokerage to a fully integrated financial services company and now a finalist in the AMAs diversification Category is a testament to the hard work and commitment made by the team at Horizon.”

HOUSE + HOME LOANS “This nomination recognises that in order to provide a holistic approach to client finance and financial advice we needed to innovate and expand the group offering.

The three group companies bring together traditional mortgage and finance broking with technology driven broking services, financial planning and risk advising.”

PINNACLE FINANCE BROKERS / ASTUTE “We are honoured to be nominated as a finalist for this category. Pinnacle Finance has been concentrating over the last three years on offering a fully integrated financial services model to our clients to ensure they have access to all the required products to meet their needs in addition to their home loan.”

THE SELECTOR GROUP “The Selector Group is very proud to have been nominated for this level of recognition for what we know to be a very different and exciting finance business.”

Sponsored by National Finance Club

Franchise Brokerage of the Year CENTURY 21 HOMELOANS – MAYLAND “It’s an honour to be nominated for the AMAs. We are grateful to our team for their hard work, our customers for their loyalty and our peers for their support.”

CHOICE HOME LOANS – BLUE MOUNTAINS “What an honour to have our team of dedicated staff recognised with this nomination. It reinforces our commitment to the industry and we are appreciative that our efforts have been recognised.”

Brokerage of the Year (≤5 staff) – Independent 1ST STREET – SYDNEY “1st STREET has always been operated as a boutique style brokerage to provide a highly personalised service to clients. It is rewarding to receive confirmation that we are on the right track.”

CLIC MONEY “It is really nice to be recognised for all our hard work, but at end of the day we would not go to work every day if we did not like what we do.”

INTELLIGENT FINANCE CLUB FINANCIAL SERVICES – NORTH ADELAIDE “This is a wonderful acknowledgement in only our second year of business. It stands as testament to the fantastic client-focused approach of each and every member of our team.”

CLUB FINANCIAL SERVICES – NORWOOD “The whole Club Financial Services Norwood team is proud of our finalist nomination, as it is a great reflection of the dedication, unity and client focus demonstrated by the whole team.”

SMARTLINE – ADELAIDE “It’s gratifying to be recognised for the strong and continued growth of our business, as well as our efforts to continue to deliver exceptional client service.”

“My team and I have worked exceptionally hard over the last year to maintain our high level of service and increased diversification. Being recognised as a finalist makes the hard work worthwhile.”

RATE DETECTIVE HOME LOANS “It is with much pride that I recognise the enormous contribution my team has made in being nominated as a finalist in the AMAs again this year.”

SLATER & MUIR “This peer recognition reflects and reinforces our ongoing customer service focus that has driven our success over the past 11 years.

Our nomination as a 2011 finalist is much appreciated. Good luck to all other finalists this year.”

TOUCH OF FINANCE AUSTRALIAN MORTGAGE BROKERS – SYDNEY CBD & INNER NORTH WEST “We are delighted to celebrate what has been a fantastic year for our business with this wonderful accolade.”

“It is an honour to be recognised by our business partners and peers. It gives us great satisfaction to be nominated year after year as a finalist.”

Sponsored by

Established in 2002, National Finance Club (NFC) specialises in providing lending solutions to borrowers via its key distribution channel of industry-accredited brokers Australia-wide. Due to its close ties with a number of fund providers, NFC is able to provide brokers with competitive rates and flexible commission structures, which see it placed as one of the leading mortgage managers in the non-bank sector.

Contact: Lawrie Moore, head of operations P: 1300 327 600 E: lmoore@nationafinanceclub.com.au W: www.nationalfinanceclub.com.au

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Sponsored by Vow Financial

Brokerage of the Year (>6 staff) – Independent BUYER’S CHOICE HOME LOAN ADVISORY SERVICE “We were pleasantly surprised to be nominated and are ecstatic to be finalists. Since 1996 we have never put ourselves forward for any industry awards, so this nomination and selection as a finalist is indeed great recognition for all our team nationally.”

DARGAN FINANCIAL / THE HOME LOAN EXPERTS “We’re honoured to be recognised by the industry for the hard work we have put in and the results that we are now achieving.

Thank you all for your support.”

HOUSE + HOME LOANS “This nomination highlights the team approach that brings together the essential elements for success in this industry. Our team has a set of brokers whose professionalism and knowledge is second to none, and a set of support staff that are efficient and knowledgeable and this nomination is a tribute to them.”

MORTGAGE SOLUTIONS AUSTRALIA “Mortgage Solutions Australia is proud to be selected as a finalist.

We see this nomination as deserved recognition for our dedicated group of professional brokers’ commitment to servicing our clients and upholding and improving industry standards.”

OXYGEN HOME LOANS “Oxygen would like to thank MPA, Westpac and your readers for this prestigious nomination. Our team is proud to be recognised and we are humbled by this nomination.”

SMARTMOVE FINANCE “It’s overwhelming and an honour to be nominated and it really is a team effort. We focus by understanding, listening and delivering the best outcome for clients so they experience excellence during the mortgage process.”

TIFFEN & CO “We are thrilled to be listed as a finalist in this year’s awards. It is an honour to be recognised by our peers and reaffirms our commitment to our clients, staff and business partners.”

Sponsored by Drawn by a shared desire to build a more empowering business for brokers, National Brokers Group, The Mortgage Professionals and The Brokerage merged to create a new force in the industry. Vow is a company founded on a promise of empowerment, change and leadership. We are focused on ensuring that brokers’ needs remain at the heart of our business. Celebrating our first birthday in February 2011, Vow Financial is excited about the opportunities throughout 2011.

Contact: Matt Mitchener, marketing manager P: 1300 656 922 E: mattm@vow.com.au W: www.vow.com.au

Official event partner

THEDATA

This month’s round-up looks at the best suburbs for property investors

62 | BROKERNEWS.COM.AU

ACT

Oxley is the Australian Capital’s Territory’s best bet for property investors, with the suburb experiencing average price growth of 45% in the past year. The suburb lies 11 kilometres south-west of the centre of Canberra, not far from Lake Tuggeranong, and houses in the area command around $600,000. At the other end of the scale, it’s worth steering clear of Campbell. Units in the suburb have depreciated by almost one-quarter since 2010.

5

SUBURB

PROPERTY TYPE

MEDIAN PRICE ($)

12-MONTH GROWTH

OXLEY

House

632,500

45%

PEARCE

Unit

479,000

25%

CASEY

House

524,975

24%

LYONS

Unit

345,000

23%

WATSON

Unit

470,000

21%

CAMPBELL

Unit

best suburbs in ACT One to avoid

NSW

5

best suburbs in NSW One to avoid

400,000

-23%

St Peters in Sydney’s Inner West is the optimal choice for property investors in New South Wales looking to grow the value of their asset. Units in the suburb have a median value of $512,500, but this figure has soared by 44% in the past year. Alternatively, speculators with plenty of resources at their disposal may wish to snap up a unit in The Rocks in the shadow of Sydney’s famous Harbour Bridge which has enjoyed a similar growth spurt.

Mittagong west of Wollongong is worth avoiding – units in the suburb have devalued by 45% in the past year.

SUBURB

PROPERTY TYPE

MEDIAN PRICE ($)

12-MONTH GROWTH

ST PETERS

Unit

512,500

44%

THE ROCKS

Unit

980,000

44%

TRANGIE

House

115,000

44%

WAMBERAL

Unit

557,500

43%

JESMOND

Unit

325,000

43%

233,750

-45%

MITTAGONG

Unit

STATISTICS / PROPERTY INVESTORS

NT

Braitling in the outskirts of Alice Springs is the Northern Territory’s property investment hot spot. Units in the area have jumped in value by just over a third in the past 12 months and now go for about $400,000.

However, The Gardens in Darwin is a postcode prospectors looking for potential gems may wish to gloss over – units in the area experienced a 28% loss in value over the last 12 months.

5

best suburbs in NT One to avoid

SUBURB

PROPERTY TYPE

MEDIAN PRICE ($)

12-MONTH GROWTH

BRAITLING

Unit

400,000

34%

TENNANT CREEK

House

198,000

32%

GRAY

Unit

338,000

25%

DARWIN RIVER

House

460,000

23%

MARLOW LAGOON

House

714,500

21%

THE GARDENS

Unit

440,000

-28%

QLD

Queensland’s hottest suburb in terms of 12-month price growth is Ayr, 88km south of Townsville. The town takes its name from its Scottish counterpart and sits near the delta of the Burdekin River. Units in the area have soared in value by 47% since July 2010 to now command an average price of 330,000. Andergrove near Mackay, on the other hand, is best left alone – units there have halved in value to $156,000 in the past year.

5

best suburbs in QLD One to avoid

SUBURB

PROPERTY TYPE

MEDIAN PRICE ($)

12-MONTH GROWTH

AYR

Unit

330,000

47%

BLACKALL

House

165,000

46%

KEWARRA BEACH

Unit

450,000

43%

MORAYFIELD

Unit

320,000

40%

BAHRS SCRUB

House

577,500

38%

ANDERGROVE

Unit

156,000

-50%

BROKERNEWS.COM.AU | 63

STATISTICS / PROPERTY INVESTORS

SA

Woodville West, 8km north-west of the Adelaide CBD, is South Australia’s most enviable address for property profit hunters. Units in the area average around $470,000 under the hammer, up 46% from July 2010.

Merely 10km across town, the picture is very different, with units in Millswood decreasing in value by 33% over the same time period.

5

best suburbs in SA

One to avoid

SUBURB

PROPERTY TYPE

MEDIAN PRICE ($)

12-MONTH GROWTH

WOODVILLE WEST

Unit

470,000

46%

GOODWOOD

Unit

540,000

43%

EVERARD PARK

Unit

335,750

40%

KENT TOWN

Unit

590,000

39%

BRIGHTON

House

780,000

38%

370,000

-33%

MILLSWOOD

TAS

The last major township on the north-west coast of Tasmania is the island’s property growth star. Houses in Stanley – just over 200km from Launceston – are now worth $325,000, an improvement of 38% from July 2010. The tiny mining town of Zeehan won’t attract too many property investors and rightly so – already affordable house prices fell by more than a third in the last 12 months.

5

best suburbs in TAS

One to avoid 64 | BROKERNEWS.COM.AU

Unit

SUBURB

PROPERTY TYPE

MEDIAN PRICE ($)

12-MONTH GROWTH

STANLEY

House

325,000

38%

WEST LAUNCESTON

Unit

245,000

27%

BATTERY POINT

Unit

601,000

26%

ORFORD

House

328,000

21%

ST MARYS

House

185,000

21%

ZEEHAN

House

64,000

-39%

STATISTICS / PROPERTY INVESTORS

VIC

Rushworth 166km north of Melbourne is an old goldmining township and property investors can strike it rich in the area too, with house prices leaping by 49% in the 12 months to July 2011. It is not far from Shepparton and Bendigo and sits near the Waranga Basin. Birchip on the southern edge of the Mallee in north-west Victoria won’t garner too much property investment interest, recording a 30% decrease in property values since July 2010.

WA

North Coogee, just south of Fremantle, is Western Australia’s hot spot for property growth, with units in the region soaring in value by 47% in the 12 months to July 2011. Only the seriously wealthy need apply, however, with even units selling for the best part of $1.5m. North Yunderup on the Murray River hasn’t fared quite so well on the other hand, with houses in the area worth 29% less than 12 months ago.

SUBURB

PROPERTY TYPE

MEDIAN PRICE ($)

12-MONTH GROWTH

RUSHWORTH

House

219,500

49%

CAPE SCHANCK

House

555,000

48%

LANGWARRIN SOUTH

House

737,500

47%

JAMIESON

House

262,500

42%

SANDY POINT

House

400,000

37%

BIRCHIP

House

59,500

-30%

SUBURB

PROPERTY TYPE

MEDIAN PRICE ($)

12-MONTH GROWTH

NORTH COOGEE

Unit

1,450,000

47%

WEMBLEY DOWNS

Unit

610,000

45%

KUNUNURRA

House

550,000

39%

PORT HEDLAND

Unit

896,000

35%

ERSKINE

Unit

502,500

32%

NORTH YUNDERUP

House

300,000

-29%

Methodology – using RP Data’s comprehensive mine of information, we looked at the suburbs with the most impressive price increases in the past year

BROKERNEWS.COM.AU | 65

STATISTICS / YOUR MORTGAGE INDEX

Qld, WA buyer stats rising

Attracting 150,000 visits per month, yourmortgage.com.au is one of the most popular resources for homebuyers and property investors. MPA is taking advantage of its sister publication’s user activity statistics to gain a unique insight into the sentiment among Australian borrowers Buyer activity by state 40% 35% 30% 25%

July 10 July 11

20% 15% 10% 5% 0% ACT

NSW

NT

Qld

SA

Tas

Vic

WA

Purpose of loan 60% 50% 40%

July 10

30%

July 11

20% 10%

RETIREMENT EQUITY

RELEASE SPENDING MONEY

HOME RENOVATIONS

MOVE HOME

REFINANCING

INVESTMENT PROPERTY

0% FIRST HOME

T

The latest instalment of the Your Mortgage index indicates that buyer activity in Queensland and Western Australia is on the rise. The effects of the second mining boom are starting to make their mark on the property market in Perth, with an increase in activity of almost 2% year-on-year, while the sunshine state isn’t far behind with 1.75%. Things aren’t so positive in Victoria, where buyer activity has slumped by 3.3% over the past 12 months.

First homebuyers continue to flood the market, with 2.49% more enquiries to the website in July 2011 than July 2010 meaning that prospective owners now account for 52% of all requests for information.

Existing homeowners seem happy to stay put, with 1.82% less enquiries regarding moving house.

The average loan size requested continues to drop, with July’s average sitting at $341,584, a reduction of $2,643 from the same month last year.

NEWS / ROUND-UP

BROKERNEWS.COM.AU | 67

LIFESTYLE / A DAY IN THE LIFE OF

A day in the life of …

Meg Bonighton, head of broker distribution, ANZ from the financial media, ANZ Economics, APRA and our property data. Everyone knows the market has slowed since last year, but generally brokers agree that there’s still good opportunities out there.

11.15am Meet with our credit policy

team to talk about some changes we’re making to simplify, clarify, and reflect today’s market. We need to take a closer look at some of our processes and policies to make things easier for brokers to do business. We have a big agenda to ensure we keep backing brokers up.

12.15pm Get a sandwich with my An unspeakable hour There is no

need for alarm clocks with two beautiful daughters to wake me up in the wee hours of the morning. I put the coffee machine on first, then listen to some radio news so I can focus on getting people fed, washed, clothed and out the door.

7.30am Check in on the Blackberry

before arriving at a breakfast meeting with some of the brokers who do business with us. It’s another enlightening series of conversations about what they’re hearing from customers. They don’t hold back and I’m reminded why I love this job – brokers are right at the heart of the action and they’re experts on the finer details. We couldn’t hope for a better group to get feedback from.

10.30am Head to my desk for a

de-brief with the Victoria/Tasmania BDM team. We’re hearing great things about our products and that our service levels online and in the branch have improved.

11am Go through some emails and phone calls, check the latest news

68 | BROKERNEWS.COM.AU

head of communications to talk about how we can get ANZ’s message out to brokers. There’s lots of opportunity to speak directly to brokers about why they should “choose blue”.

1.30pm Pop my head into Glenn

Haslam’s office, our general manager of mortgages. A few years ago he was in my role, so he has a great understanding of the broker channel – which means we can cut to the chase quickly and get things moving.

It’s budgeting time, so we talk about what’s on our investment agenda.

2pm Catch up on emails and talk to

my colleague in mobile lending about training programs. Call the head of one of the key aggregator groups about ideas we have for supporting professional development in the broker industry. Call another group about their upcoming conference to make sure we’re good to go. Prepare for my next meeting.

3pm Conference call with our BDMs around Australia. This is a team that punches above its weight, no doubt about it. Their ‘blood runs blue’ as they say – they’re long-time ANZers

who understand credit and the broker business. The team in Queensland tells me about some of the work they’ve been doing with their local brokers to make the most of a challenging market, and the Perth team provides some feedback on the recent program they ran on policy and pricing initiatives, and get their thoughts on some plans for our national conference.

4.15pm Planning session with

internal stakeholders about next year’s agenda. In today’s session, we’re talking technology and what will make a difference. There will be no rest for the wicked next year, which for ANZ starts in October.

5.15pm My husband Gary is picking up the kids this afternoon so I have the luxury of an extra hour or so to head back to my desk, sit down, go through emails, return some phone calls, check tomorrow’s schedule...

6:30pm Arrive home for “two hours of power” getting the kids fed, bathed, changed, bottled, read to and lullaby-ed. Spend some quiet time with the girls before bedtime.

We then enter into the usual four-year-old procrastination before bed (toilet, glass of water, toilet again, apple?) with patience and good humour … ha! Well, maybe sometimes.

8:30pm Slump on the couch in front

of TV. Gary and I enjoy a quick dinner and maybe a glass of wine, and talk about how we really should get out more. Jump online and catch up on a few emails, lose myself in the internet for a while.

10pm Would like to think I’ll read a few pages of my book, but figure I might as well try and sleep.

NEWS / ROUND-UP

BROKERNEWS.COM.AU | 69

LIFESTYLE / FAVOURITES

❤

Favourite things...

Steve Sampson, head of lending distribution, Provident Capital Drink: Good red

Place to be: In a glassy five foot swell in the ocean. Or at dinner with good friends and family

or white wine, I’m partial to both

Vacation spot: Hobby: Surfing – it keeps me fit

Hawaii.

It truly is paradise

and sane

Music: Roots and blues music like Donovan Frankenreiter and Xavier Rudd

Celebrity: Elvis, need I say more?

Sport: I like to watch rugby union, rugby league and soccer.

It reminds me how good I was (not)

Movie: The Party starring Peter Sellers.

I reckon I’ve watched it a thousand times and it still cracks me up

Food: I love good oysters and almost anything that is cooked for me

70 | BROKERNEWS.COM.AU

LIFESTYLE / MOTIVATION

Sales management guru Jack Daly gives his top tips on how to increase sales and profits

With the new licensing regime now in place, brokers are now concentrating on the quality rather than the quantity of the loans they write. That said, it never hurts to increase the number of mortgages as well, as long as the correct procedures are adhered to. American Jack Daly is something of a mortgage sales expert, having grown one company to 750 employees in 22 offices producing US$350m per month in mortgages among other successes. Here is his advice on how to grow sales and, most importantly, your bottom line.

Daly has more than 20 years of sales experience, from a starting base with the CPA firm Arthur Andersen to the CEO level of several national companies. He has participated at the senior executive level on four de novo businesses, two of which he subsequently sold to the Wall Street Firms of Solomon Brothers and First Boston.

As the head of sales, Daly led sales forces numbering in the thousands, operating out of hundreds of offices across the US.

72 | BROKERNEWS.COM.AU

• Be unique – from reception to voice mail • Never make a call without a purpose • Ask questions and listen • Selling is the transfer of trust • Never quote price until you establish value • Goals not in writing are dreams • People like to buy, not be sold. Help them buy • Trust trumps price all day long • Things that get measured get done • The best sales people are prepared. Don’t wing it • Model the masters. Learn from the best • People are different – sell accordingly • We are what we think we are. Raise the bar • Successful cultures need to be intentionally managed • Hire slowly, fire quickly • Implement minimum standards of performance • Remember recruiting is a process, not an event • Start new hires with a celebration • Recognition systems are a must • Coach on the field, not in the locker room • Sales leaders grow salespeople. Salespeople grow sales