Mortgage Professional Australia 20.01

MPAMAGAZINE.COM.AU ISSUE 20.01

The industry’s new recruits taking on tough challenges and succeeding

NEAR PRIME LENDING The need for the offering has never been greater

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GIVING BACK Industry professionals and charitable giving

BRENDAN WRIGHT A big interview with the CEO of FAST

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JANUARY 2020

CONNECT WITH US

CONTENTS

Got a story or suggestion, or just want to find out some more information? twitter.com/MPA_Australia facebook.com/Mortgage ProfessionalAU

UPFRONT 02 Editorial

New beginnings in 2020

04 Statistics

The Australian dream is still alive

16

30

06 Head to head

FEATURES

10 Opinion

NEAR PRIME LENDING

How three lenders are catering for a growing market segment

Brokers discuss their goals for the year

08 News analysis

The best interests duty is coming How to win at open banking

FEATURES 40 The future of learning

SPECIAL REPORT

Shared learning can provide many benefits

Meet the new generation of brokers entering the industry and seeing great success

42 Productivity

YOUNG GUNS

BIG INTERVIEW

BRENDAN WRIGHT

The head of FAST on what 2020 has in store for the broker industry

12

How to avoid being distracted and really focus

36

FEATURES

GIVING BACK

44 Mental health

It's important to stay healthy when running a business

PEOPLE 48 Other life

Love at first sight for this dirt-bike racer

Supporting charities is a key focus for many groups in the broking industry

46 FEATURES

BROKERAGE INSIGHT

Mortgage Choice Dee Why takes a look at how things are changing with the times

MPAMAGAZINE.COM.AU NOW ONLINE: Our daily newsletter. Keep on top of property market trends, business strategy, and what industry leaders have to say.

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UPFRONT

EDITOR’S LETTER www.mpamagazine.com.au JANUARY 2020

On to a new start in 2020

W

hat a difference a year makes. This time last year the industry was heading into 2019 with a sense of apprehension as we awaited the final report of the royal commission. Brokers were avoiding recruitment, banks were holding back on lending, and industry groups were ramping up for a fight.

Fast-forward to today. The fight took place and brokers came out on top: the threat of commissions being scrapped blew over and market share has continued to rise. Lending might still be tighter than it was a few years ago, but brokers are starting to grow again, and there is a renewed sense of optimism.

2020 may not be without its challenges, but it certainly looks to be a year of opportunities for brokers. Out of the darkness of the royal commission will come things like the best interests duty, which we will see in play from July this year.

There are mixed feelings about the duty as it currently stands – particularly as most brokers say they already act in the best interests of the customer – and industry bodies are yet again working to ensure it reflects how the industry actually operates.

The duty might mean a little more record-taking, but aggregators are already

Brokers are starting to grow again, and there is a renewed sense of optimism looking at ways they can make sure brokers are protected as they continue to work in the way they have always done.

Making a clear declaration that brokers must act in customers’ best interests can only help the industry grow, according to one aggregator head who predicts that broker market share will be up to 70% in no time at all.

You can read more about the various industry views on the legislation and what is expected to happen next in this month’s News Analysis. Then keep an eye on MPA as we follow aggregators and industry bodies that are lobbying the government on brokers’ behalf, and highlight any subsequent amendments that are made. We will be keeping you up to date on how best to prepare your businesses for when the duty is introduced.

In this month’s issue, we also present a fantastic list of Young Guns. These brokers should be applauded for the hard work they have put into starting out in the industry during such a tumultuous time.

Enjoy the magazine – and have a great year ahead!

Rebecca Pike, editor, MPA

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EDITORIAL

SALES & MARKETING

Editor Rebecca Pike

National Sales Manager Claire Tan

Journalists Tom Goodwin, Abel Riototar Contributors Jen Jackson, Anastasia Massouras, Molly Moseley, Aytekin Tank, Vincent Turner Production Editor Roslyn Meredith

ART & PRODUCTION Designer Cess Rodriguez Traffic Coordinator Kristine Jamir

Global Head of Communications Lisa Narroway

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

EDITORIAL ENQUIRIES

tel: +612 8437 4784 rebecca.pike@keymedia.com

SUBSCRIPTION ENQUIRIES

tel: +61 2 8311 5831 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au

ADVERTISING ENQUIRIES claire.tan@keymedia.com

Key Media Regional head office Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, London, Toronto, Manila, Singapore, Seoul

Mortgage Professional Australia is part of an international family of B2B publications and websites for the mortgage industry CANADIAN MORTGAGE PROFESSIONAL neil.sharma@kmimedia.ca T +1 416 644 8740

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 the magazine can accept no responsibility for loss.

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UPFRONT

STATISTICS

Feeling the property pinch

WINNING THE AFFORDABILITY BATTLE

Housing affordability may have deteriorated in recent times, but the Australian dream remains alive THE CORELOGIC Perceptions of Housing Affordability 2019 report is not just about numbers; it reveals what Australians feel and think about property.

The study, which surveyed 2,200 Australians across the country, found that affordability had improved in the previous year due largely to falling house prices, particularly in Sydney and Melbourne, as well as record-low interest rates that have benefited buyers and owners.

But this is no reason to be complacent, CoreLogic International CEO Lisa Claes said

4 in 5

in the report. With interest rates so low, prices have started to recover, and the country could be entering a new period of rate increases.

Australians also struggle with the “unholy trinity” of obstacles to buying a home, she said: raising a deposit, gaining approval for a loan and funding stamp duty costs.

“Affordability continues to have a significant impact on society and generations. The ‘cubby house’ syndrome where young people decide to stay at home with mum and dad ... is alive and well,” Claes said.

63%

46%

Australians believe homeownership is still important

of respondents who live with their parents cannot afford to move out

of Australians would buy a property that did not meet all their criteria

The majority of respondents, with baby boomers leading the charge, believed the best strategy to improve housing affordability was to remove or reduce stamp duty.

Millennials, on the other hand, think government grants and concessions for first-time buyers are the best tactic.

40%

of renters think the ideal rental agreement lasts for 6–12 months

Source: CoreLogic Perceptions of Housing Affordability 2019 report

DIM HOPES FOR BUYING A HOME

Over 40% of non-property owners have a high level of concern about being able to afford a home, and 90% of millennials feel they won’t be able to afford one.

Level of concern about being able to buy a first home or next property Very concerned

Quite concerned

Slightly concerned

STRUGGLE TO SAVE A DEPOSIT

Raising a deposit remains the biggest obstacle to affording a home as most Aussies face significant challenges in saving and lenders require a 20% deposit.

Biggest impediments to housing affordability Having the deposit

Not at all concerned

Getting a loan approval

60%

Stamp duty

50%

Certainty of employment

40%

Foreign buyers in the market

43% 42% 38%

Meeting repayments

20%

Paying lenders mortgage insurance

10%

Investors in the market National

NSW

VIC

QLD

SA

WA

TAS

ACT

NT

Source: CoreLogic Perceptions of Housing Affordability 2019 report

4

45% 44%

Interest rates

30%

0%

47%

Negative gearing benefits to investors

0

37% 35% 34% 30%

50 Source: CoreLogic Perceptions of Housing Affordability 2019 report

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83%

84%

VIC

88%

QLD

80%

SA

75%

WA

82%

TAS

77%

ACT

83%

NT

77%

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BEST STRATEGIES FOR IMPROVING HOUSING AFFORDABILITY Millennials

Gen X

Baby boomer

100%

80%

60%

40%

20%

0%

Reduce or remove stamp duty

Government grants/ concessions for first home buyers

Reduce or remove stamp duty for first home buyers

More jobs in areas with low housing prices

Improved transport options and commuting times

Increase restrictions on foreign purchases

Release more vacant land

Less investment via changes to taxation policies or regulation

Reduce the costs paid by developers to build new housing

Build more apartments close to job nodes and along transport corridors

Reduce the number of overseas migrants arriving in Australia

Source: CoreLogic Perceptions of Housing Affordability 2019 report

PRICE IS KING

Aussies see the price of a house as the most important factor when deciding where to buy, followed by access to public transport and proximity to work, school, family or city.

Which factors are important when selecting where to buy?

Price Proximity to work

Worse

Better

The same

Don’t know

46%

50%

44% 39%

Distance to city Local work and jobs

34%

Proximity to family

34%

Prospects for capital growth

0%

How has affordability of housing changed in the past year?

60%

58%

Infrastructure, eg hospitals

Proximity to school

While NSW and WA saw the greatest improvement in sentiment towards affordability, at least 25% of residents in every state believe it has worsened in the past year.

76%

Good public transport

Larger blocks of land

HOUSING SEEN AS LESS AFFORDABLE

40% 30%

31%

20%

30%

10%

27%

80% Source: CoreLogic Perceptions of Housing Affordability 2019 report

0% National

NSW

VIC

QLD

SA

WA

TAS

ACT

NT

Source: CoreLogic Perceptions of Housing Affordability 2019 report

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UPFRONT

HEAD TO HEAD

What are your goals for the year ahead?

For three brokers, the next 12 months will be about improving processes and educating future clients

Brice Booker

Finance broker Mortgage Choice, Brisbane “I’m aiming to increase the number of my applications moving through one-touch approvals. Being able to submit a client’s application and have it approved by the bank/lender within a short turnaround period, on first touch without anything outstanding being requested, makes the complete process extremely smooth and as simple as possible for my clients. We have been focusing on what documents we hold prior to meeting a client in order to be able to complete the research completely. This means we can discuss what packages and options are available and keep everything moving forward as cleanly as possible.”

Grace Gardner Broker Aussie Burnie

“My goals for 2020 are focused on the continued growth of my broking business as I head into my second year of operation.

I will be looking to grow my team so I can service more customers and improve the processes I have in place from lodgment to settlement to ensure an exceptional customer experience from start to finish.

With the improvement of my business processes I can use my time to work on further business development initiatives, such as first home buyer seminars and coffee activations. My personal goals for 2020 are to become a strong leader within the industry and my local community by attending key local events and professional development days.”

Deslie Taylor

Owner Mortgage Choice Ormeau “I’m working with three local high schools and developing an education program for Year 10, 11 and 12 students in the areas of budgeting, savings, lending, understanding positive credit reporting and the consequences of borrowing money they can’t pay back, resulting in defaults or bankruptcy, as well as the consequences of phone plans and other contracts that could also end in a poor credit outcome. I find most students are not taught these vital financial tools before the age of 18, so they enter adulthood with limited knowledge, resulting in poor financial decisions. These tools are more important than ever to ensuring they’re ready to enter the lending world with all the changes it’s experiencing.”

ARMED AND READY While artificial intelligence, robotics and digital disruption play a growing role in the future of loan processing, brokers will still have a place in it, according to ANZ general manager of retail broker distribution Simone Tilley. “We all love the need for speed, and so do our customers,” she said at the 2019 MPA Major Banks Roundtable. “But I think for complex transactions and big decisions people are still going to want to deal with people. And this business has been based on an incredible strong relationship model being successful over time.”

Adam Croucher, general manager of third party banking at Commonwealth Bank, added that with the rising number of broker-originated loans the bank had been receiving, he expected a period of growth and consolidation for the broking channel. “I think we’ve got nearly 11,000 brokers accredited with us, and I see that there will be over the next period a level of consolidation and some growth in businesses as they really arm themselves for the challenges ahead.”

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W I NNER

AUSTRALIAN BROKING AWARDS MARKETING CAMPAIGN OF THE YEAR

2019 W I NNER

AUSTRALIAN BROKING AWARDS MAJOR BROKERAGE OF THE YEAR – FRANCHISE

2019

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UPFRONT

NEWS ANALYSIS

Work on new duty goes on After the royal commission recommendation that brokers should be required to work in their customers’ best interests, the duty is set to come into play this year – but concerns remain over the current legislation LEGISLATION FOR the best interests duty

What concerns were resolved ?

was introduced into Parliament towards the end of 2019, but industry groups will continue to work through the remaining concerns with the government.

The legislation follows Commissioner Kenneth Hayne’s recommendation in the royal commission’s final report that such a duty be implemented. The Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers (2019 Measures)) Bill 2019 says the mortgage broker must act in the best interests of the consumer in relation to credit assistance.

As it stands, it outlines that if the broker is aware of, or “reasonably ought to know of ”, a conflict between the interests of the consumer and the interests of the broker or their associate or representative, the broker must give priority to the consumer.

The legislation will apply to any credit assistance given on or after 1 July 2020.

Treasurer Josh Frydenberg said that in line with Hayne’s recommendations the duty would apply to the provision of consumer credit assistance and not to business lending.

According to MFAA CEO Mike Felton, the association supports the introduction of the duty, but while the government has addressed a number of the concerns the MFAA raised during the consultation period, there are still areas the association believes do not align with optimal customer outcomes.

In a communication to brokers, Felton said issues such as the commission calculation period for the use of offset funds had been amended; originally the draft legislation had it at 90 days, but this has been extended to 365 days.

However, he said mortgage brokers should be defined by their activities, rather than the business they carried out or what they called themselves. He pointed out that the duty currently applies specifically to mortgage brokers, so a finance broker could offer a mortgage without being restricted by the

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sional package with the home loan,” Haron said.

“Then, to have to also get all the attributes of the credit cards that are part of those packages and compare them and make sure you’re applying the best interests duty, brokers will say it’s too hard, I’m not getting paid for that, so I’m not going to do it.”

“The shift for brokers will centre around having access to the right technology that supports a broker’s process” Sam White, Loan Market duty. Also, the duty applies to mortgage brokers no matter what they offered. Therefore, it would extend beyond mortgages and would restrict mortgage brokers from assisting their customers with other forms of credit, such as personal loans and credit cards.

Connective director Mark Haron said this last point was a particular concern, especially as many home loans were offered in a bundle with a credit card.

“There’s enough work to be done when you’re comparing products in and around the profes-

While he did say there were “some wins”, he explained that the legislation in its entirety was not exactly what he had hoped for. Despite that, he said the industry now needed to embrace the duty and work with government and regulators in terms of how it would be implemented, because it gave brokers “the capacity to provide consumers with a much better outcome”.

“We have had some good, careful consideration and overall acknowledgement that the mortgage broking industry is a crucial component to competition in the home loan lending

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ISSUES STILL TO BE ADDRESSED

In the MFAA’s response to the best interests legislation being tabled, CEO Mike Felton raised the following points, among others: Point in time – The best interests duty should apply to the point in time when credit assistance is provided, rather than for the life of the loan. The draft legislation and supporting materials were silent on this.

Clawback – Due to a conflict between the best interests duty and clawback, clawback should be limited to a period of one year.

Construction loans, reverse mortgages and lines of credit – These products should be separately catered for as the draft legislation and supporting materials do not specifically address them. space, so they’ve made some substantive changes to ensure that mortgage brokers are still able to operate effectively,” Haron added.

Next steps towards a workable duty Other industry players remain confident that the duty will spur the next wave of broker

each and every time,” he added.

The aggregator has its own platform, MyCRM, which White said was ready to help brokers navigate the duty. “Loan Market is well underway in building a process for our brokers to keep them safe during this time of change, and we look forward to sharing the prototype

“The majority of brokers, in the way they conduct themselves, put customers’ interests ahead of their own” Mark Haron, Connective growth. Loan Market executive chairman Sam White believes broker market share will grow to 70% as customers seek out brokers who act in their best interests, rather than branch managers who work in the interests of the banks. He said the large majority of mortgage brokers were already acting in customers’ best interests.

“However, we see that the shift for brokers will centre around having access to the right technology that supports a broker’s process and how a broker can prove they’ve met their best interests duty for each and every client,

and gaining valuable feedback from our brokers before we go live on July 1,” he said.

“Loan Market will continue to work with ASIC, the MFAA and other industry leaders in understanding how the legislation will be interpreted and a framework developed.”

Following Parliament’s break over the summer, the bill is expected to go to the Senate, when any proposed amendments will be tabled.

Haron said he and other industry bodies would be busy making sure changes for the customers’ best interests were considered and

Materiality/reasonable broker test – As has often been pointed out, refinancing is not a costless exercise for all parties involved, and a broker should not be obliged to assist the consumer to switch lenders when there is only a nominal benefit to the consumer.

The MFAA has suggested that a materiality threshold and “reasonable broker test” would be of assistance in this regard. hopefully amended. ASIC is also expected to provide guidance on the duty. With the duty scheduled to come into force on 1 July 2020, the industry would be asking for a non-enforceable 12-month period to ensure it could make the necessary adjustments without penalties.

“That being said, I don’t believe that is such a big issue or a big effort for brokers, because I genuinely do believe that the majority of brokers, in the way they conduct themselves, put customers’ interests ahead of their own.

And that is largely why the broking industry exists and why it has grown,” he said.

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UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email rebecca.pike@keymedia.com

How to win at open banking As the industry settles into the open banking regime, uno Home Loans founder Vincent Turner looks at the lessons to be learnt from other countries, and the opportunities that lie ahead

WHILE OPEN BANKING was implemented in Australia last July, the regime has got off to a slow start in terms of consumer awareness and new products and services being offered.

However, as consumers become more cognisant of what open banking is and what it means for them, the way they interact with the financial services industry will inevitably change. For savvy players, now is the time to map out longer-term strategies that make the most of open banking.

For example, at uno, we’re already developing industry-leading technology that takes the onus off the customer, while ensuring their best interests remain at the heart of every transaction we make.

Once in full swing, open banking will have the potential to benefit consumers and lenders alike. For consumers, open banking could mean faster mortgage application processes and more personalised rates. For mortgage professionals, it will offer a fully informed view of an applicant, again facilitating faster applications and reducing the risk of lending to highcredit-risk consumers.

The new system will also enable greater competition, levelling the playing field and creating incredible opportunities for smaller players in the market, provided they’re ready to take advantage of the changes.

Lessons from the UK When it comes to open banking, there is one market that consistently drives the discussion – the UK. A world leader in open

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banking, the UK implemented the regime in January 2018. Despite being ahead of the curve on implementation, however, open banking had a slow start. This was partially to do with consumer awareness: it’s hard to revolutionise an industry when users aren’t aware of the changes occurring.

But another factor that contributed to

What are the opportunities?

The potential opportunities for those of us in the home loan industry are huge. Open banking will allow consumers to share their financial data directly, removing the need for a timeconsuming verification process. However, this advantage will be available to any financial institution, so how do smaller players, like nonmajor lenders or brokers, remain relevant in an open banking environment?

The answer is customer-centricity. Open banking alone won’t make a difference for customers. Data also requires a trusted adviser to provide context and offer a course of action.

Open banking data becomes a powerful asset only when combined with personal relationships and a deep understanding of customers. This paves the way for a more efficient and personalised mortgage experience than most consumers have ever had, not just when they enter the market as first home buyers but for the life of their loans.

This is the foundation of uno’s Active Home Loan Management (AHLM) service.

Open banking data becomes a powerful asset only when combined with personal relationships the UK’s open banking slow burn was that implementation didn’t mean innovation.

Once banks and lenders complied with open banking, there wasn’t a rush to change how they interacted with customers, or the services they offered.

Fintech start-ups, however, were swift to embrace the opportunities and advantages of open banking. Consumers could compare and contrast services provided by fintechs with those of established providers much more easily under open banking, increasing the potential customer base for smaller players.

The mortgage industry is shaping up to be a battleground between new and established players. When it comes to home loans, banks have begun using open banking to reduce onboarding time and ease customer pain points in the mortgage application process, while fintechs are again leading the way in creating products that service customers for the life of their loan.

AHLM couples smart technology – which monitors the health of customers’ home loans and alerts them to the benefit of refinancing when better loans are available – with access to dedicated brokers who can help customers navigate the home loan process to achieve their desired outcome.

Given the slow-moving results of open banking in the UK, this might sound like an industry pipe dream that won’t be accessible to consumers for some years. While the slow burn might seem like a disadvantage for smaller players in finance, it gives them time to ready themselves, ideate and push the boundaries of our current system so that once open banking is in full swing they’re able to move quickly to take advantage of the new regime.

Vincent Turner is the founder and chief information officer at uno Home Loans.

Having always been in fintech, he spent five years in Silicon Valley as founder of fintech Planwise.

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PEOPLE

BIG INTERVIEW

BRENDAN WRIGHT: ALWAYS LEARNING The CEO of FAST sees a strong broker industry ahead as digital disruption and business lending bring new opportunities to light

IT’S NO secret that most brokers will be glad to see the back of 2019, a year that brought unexpected recommendations from the royal commission that completely disrupted the industry, a battle over who would win the election, and further reviews and scrutiny into what the broker does for their customer.

Looking forward as we begin 2020, these complexities now provide opportunities for brokers as they begin to understand “the rules of the game” and get more clarity around the royal commission outcomes and the best interests duty, says CEO of FAST Brendan Wright.

As a commercial and asset finance aggregator, FAST is on hand to help brokers see the opportunities that go beyond just offering home loans. A self-confessed “business-school junkie”, Wright believes constant learning and growth is important.

The father of three has just completed a 15-month global executive MBA at Monash Business School, and a few years ago he did an advanced management program at Harvard Business School. He sees learning

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as a crucial way to stay relevant, not only in his own role but in a global context.

“I believe there’s value in being curious and in lifelong learning,” says Wright. “I enjoy being in business and running a business and backing businesses, and to do that you need to continue to learn and understand what’s different and what’s coming.”

Wright points out that in just the last five years the industry has seen an ASIC broker remuneration review as well as a royal

theme of being inquisitive, this theme of being curious and of lifelong learning helps you stay aware of what’s going on within our market here, but more specifically globally,” he adds.

Encouraging learning and growing To support continuous learning and encourage brokers to stay relevant, FAST hosts professional development days that not only include content from a regulatory perspective but

“I enjoy being in business and running a business and backing businesses, and to do that you need to continue to learn” commission into financial services, the introduction of open banking, disruptive models, and the rise of smaller lenders, neobanks and fintechs, which are creating competition.

“All the players in the game are responding, including bigger lenders as well, so this

also take brokers through how the aggregator developed its strategy and provide them with opportunities they can use in their own businesses. But of course FAST focuses on enabling brokers to help their small business clients as well.

Despite the microscope having been held

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PROFILE Name: Brendan Wright Company: FAST Title: CEO Years in the industry: 7 in third party Career highlight: “It has been the last seven years at FAST. Being given the opportunity to run a business and design a strategy that’s been clearly differentiated, and then at the same time as that has played out, a growing industry with regulatory challenges and opportunities.”

Career challenge: “It’s been over the last few years in the financial services piece more broadly. Things like the ASIC reviews and Sedgwick, but then ultimately the royal commission. It’s quite confronting when most people in the financial services system are looking to do the right thing.”

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PEOPLE

BIG INTERVIEW

SETTLEMENTS GROWTH

BY LENDER SIZE The FY19 financial year saw a number of large lenders lose market share in business lending as a result of policy/process complexity, the challenging commercial landscape and higher funding costs.

FY18

FY19

$6bn

$5bn $1.25bn

$1.77bn

+42.4% year-on-year growth

$4bn

$3bn $4.07bn

$3.56bn

-12.4% year-on-year growth

$2bn

$1bn

Large lenders

Small lenders Source: FAST Business Lending Report

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up to the broker industry in such a public way over the past two years, the market share of home loans written through brokers has continued to grow. Wright says his biggest takeaway from 2019 is that this is following through to the small to mediumsized business market.

FAST recently released insights from its Business Lending Index, which showed growth in the value of business lending and signs that SMEs were going to brokers.

“Consumers going to intermediaries and brokers to get their mortgage needs met is also playing out in SME,” he says. “They’re going to brokers to get their needs met because access to finance, particularly for businesses, is critical.”

The index also showed that business

mortgage brokers in their existing customer bases, says Wright, as most broker customers would probably expect their broker to be able to help with a wide range of products.

“Most broking businesses will be 35% self-employed business owners, so it’s obvious that you should connect with those customers for more than just their home loan needs,” he says.

“It’s not just SME; all consumers are more and more busy and time-poor, so if you’ve had the opportunity to be in front of that client, they’re expecting you to ask them, ‘What else do you need?’”

An exciting future ahead Moving into 2020, Wright welcomes the introduction of open banking. While the first

“If you’ve had the opportunity to be in front of that client, they’re expecting you to ask them, ‘What else do you need?’ ” customers were shifting to smaller lenders, and while the bigger players were still committed to delivering to SMEs, the complexities of their legacy systems were creating challenges. The value of loans written by smaller lenders increased by more than 42% from FY18 to FY19, whereas the value of those from larger lenders dropped by more than 12%.

As FAST represents 35% of the commercial broker market in Australia, Wright says it is the aggregator’s responsibility to share the data to demonstrate to brokers the opportunities diversifying creates.

“It helps them understand there’s an opportunity in this space,” he says.

“Lending to business can be more complex than home lending, so that will require investment in capability. This helps identify, where am I going to go?”

There is an opportunity waiting for

stages came into play last year for the four major banks, this year will see the availability of mortgage data from the big four in February and the rest of the banks sharing account data in July.

Wright says, “It’s coming, and it’s exciting.”

He warns that brokers need to prepare themselves by ensuring their platforms are ready for open banking – which FAST’s is – and that they know what their business strategy is.

“Open banking will go way beyond just consumer data; it’ll be business data as well.

So that’s the real opportunity for brokers around what role will the data play in my business and how can I make the most of open banking?” Wright says.

“If you think about the concept of open banking, it’s coming in to create competition. The obvious place for consumers and business owners to go will even more so be

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to the broker. But brokers need to be ready to keep that data safe and to use that data in a safe way with whatever lender they decide to recommend for the client.”

These themes of leveraging data, understanding the customer, and process improvement from the likes of fintechs and neobanks present an optimistic future for brokers, according to Wright.

“It’s just about dialling up where the opportunity is for brokers, in so far as consumers and business owners want choice, and the way they get choice is through the broker market,” he says.

MARKET SHARE BY LENDER SIZE

23%

33%

Market share 2018

Large lenders

Market share 2019 77%

Small lenders 67%

Source: FAST Business Lending Report

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14/01/2020 7:39:55 AM

SPECIAL REPORT

YOUNG GUNS 2020

Meet 25 up-and-coming brokers who have joined the industry and are already making names for themselves

16

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SPONSORED BY

STARTING OUT in any new industry can have its challenges, but joining one that’s under such scrutiny and has experienced such uncertainty as the broking industry comes with additional hurdles. Despite that, the brokers featured on the following pages have not only made it through but have done so with tremendous success.

Each of the 25 brokers who made it into this year’s Young Guns list began their journeys in 2018, when the royal commission hearings were in full swing and there was a significant threat to how brokers got paid. This has not stopped these new-to-industry brokers from achieving impressive volumes, building their client base and achieving a spot among the Young Guns for 2020.

Thanks to a number of factors, however, their settlement volumes are not as high as we saw last year. In 2018, the average total annual settlements figure of the Young Guns was $40,299,945, although there were more brokers in last year’s list.

According to MFAA data, the number of mortgage brokers declined slightly in the six months to March 2019 – a possible sign of brokers exiting the industry due to the royal commission. But these new Young Guns will ensure the industry continues to grow and thrive. Coming in at a time of change means they should be better at adapting and will be well prepared for any industry shifts.

The 2020 Young Guns are, on average, younger than those in last year’s list; they range in age from the youngest at 22 to the oldest at 34. The list is also more diverse than it was last year, with the number of female brokers rising to 10 from just two in 2019. MFAA Industry Intelligence Service figures show that the number of women recruited into the industry was fairly stable at around 27%.

When it comes to choosing the Young Guns, MPA sets very strict criteria. Firstly, they must be aged 35 or under; have written more than $15m in loans over the previous 12 months; have worked as an accredited broker for no more than two years; and have never previously been named as an MPA Young Gun. We look at recommendations from their peers, alongside the brokers’ own submissions, to decide who makes the list. We do not rank our Young Guns, so there is no ‘winner’; we choose instead to celebrate all these outstanding new entrants equally.

Thank you to all the brokers who sent us submissions, and to the aggregators and franchises who supported them. We’d also like to thank our sponsor ING for supporting this list for another year.

A MESSAGE FROM OUR SPONSOR We are honoured to once again sponsor MPA’s Young Guns report. A steady stream of ‘young guns’ is essential to an industry as dynamic as the mortgage broker channel. At ING, as much as 85% of our home loans are originated via brokers, so an investment in emerging brokers is vital for ING. A successful broker is characterised as being customer focused, determined, dedicated, resilient, a good listener and one who demonstrates genuine care. The Young Guns in this report all possess these traits.

It’s encouraging to see such young talent, and ING will continue to support the development of these brokers.

2020 will likely bring challenges for the broker industry, and I’m confident the industry will take these challenges in its stride. The broker channel will show its resilience and will go from strength to strength. This cohort of Young Guns will contribute a fresh perspective, a vital ingredient in an evolving market.

It gives me great pleasure to celebrate and recognise the achievements of the nominees for the MPA Young Guns 2020 and to recognise their hard work and dedication.

Congratulations to all the nominees.

Glenn Gibson Head of third party distribution and direct mortgages, ING

$26,594,704 Average total annual settlements of MPA’s Young Guns

28 Average age of the Young Guns in 2020

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14/01/2020 8:20:26 AM

SPECIAL REPORT

SPONSORED BY

YOUNG GUNS 2020

JOSH BAILEY, 29 Aussie Corrimal Corrimal, NSW / Aussie $15,180,000

“It has been a great pleasure seeing Josh grow over the past two years. Not only did he settle over $15m in his second year but he also does most of my loan packaging. Initially it was a tough road for Josh in trying to come to terms with the product knowledge he required, and at the 12-month mark when he was almost prepared to give it away, after a long and soul-searching conversation he decided to persevere. Settlements are growing month to month, and his knowledge of products and procedures is now excellent.

He is a very competent mortgage broker with a bright future.”

– Neil Shaw, franchisee, Mortgage Choice

LACHLAN MIRAMS, 25

WENJIA WANG, 28

Intuitive Finance Sandringham, Vic / Connective

AUSUN Finance Camberwell, Vic / FAST Group

$15,869,887

$16,000,000

“As both Lachlan’s employer and father, I have been very impressed with his application to his new broking role in the past 18 months.

He has a positive attitude to the times, and his clients, lenders and referrer partners all speak highly of him. I am certain this recognition will be a great stepping stone towards his overall journey and success, and what is not written in the results is that he had a five-week overseas holiday which severely dented his momentum in writings. I believe he would easily have settled $20m plus if not for this, but this is also great recognition of being able to reward yourself along the journey.”

– Andrew Mirams, MD, Intuitive Finance

“Lisa works hard to achieve the best outcome for her customers. She is smart and passionate about her work. After just one year of getting her licence, she is heavily involved in commercial loans, equipment finance and residential loans.

I think she will have a very bright future in mortgage broking.”

– Junhao Sun, director, AUSUN Finance

WHO ARE OUR YOUNG GUNS?

QLD 6 Male 15

Female 10

WA 2

ACT 1

18

NSW 10 VIC 5

Tas 1

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14/01/2020 8:20:35 AM

SPONSORED BY

LAUREN HALL, 32 Loan Market Edge Southport, Qld / Loan Market $16,085,965

“Our most recommended broker, with a no-nonsense approach – that’s Lauren Hall.

Unlike many, Lauren understands the value she can bring to every party in the homebuying journey – she just gets it!

“A broker’s role is about much more than rescuing a buyer at the last moment. Lauren

appreciates the motives of a vendor to maximise their sale price – and empathises with and educates a buyer whose wish list is above their borrowing limit. She examines each transaction and the parties involved; both sides and her clients know clearly where they are at any time. Her communication is exemplary!

Lauren has a disciplined approach to the detail, coupled with a personal and genuine manner.

It’s easy to understand why she is a standout and already an award winner. We are very fortunate to have her in our team!” – Peter Camphin, director strategic partnerships, Ray White and Loan Market Groups

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14/01/2020 8:20:40 AM

SPECIAL REPORT

SPONSORED BY

YOUNG GUNS 2020

REBECCA MANSFIELD, 29 Loan Market Sydney, NSW / Loan Market

WING KEI HO, 27

NICOLA TUCKER, 32

JKK Solutions Pty Ltd Blackburn, Vic / AFG

Surf Coast Finance - Loan Market Torquay, Vic / Loan Market

$43,572,000

$22,790,035

$17,500,000

“Strategic Accounting is a small accounting firm based in St Leonards. Our client base is predominantly small to medium businesses mainly operating out of trusts, and many who own their own commercial property through super. We have used a number of different mortgage brokers over our 10-year history and have struggled to find the perfect fit for an alliance with our firm. This was never more apparent than after the increased regulations were imposed by APRA around two years ago.

“I met Rebecca in July last year through my financial planning affiliate. I was attracted to her primarily because of her background in accounting and the need in the current lending environment to understand how structuring works and be able to explain the breakdown of financial statements to banks and institutions alike. In the short time I have known her, she has assisted me with a vast array of different lending options, including refinancing goodwill business loans, complex asset purchases, short-term business cash flow lending, bare trust borrowing through superannuation, and residential lending for clients with complex structures.

“Rebecca’s accounting knowledge is complemented by her service skills, with only the highest praise received from my clients about their dealings with her.”

– Andrew Dunstan, partner, Strategic Accounting Advisers

20

“My dealings with Keith started in January 2019, when we arranged to meet after Keith was very keen to catch up. We spent a substantial amount of time discussing all things lending, touching on our previous lending/finance experiences as well as jumping on a few scenarios he had on the go, fresh off the back of my policy training.

“From the get-go, he was different. Good different. Always laid out all the information when running a scenario. Turned to me for guidance with regard to structuring deals and was always very professional not only in our dealings but with my internal admin and credit teams also.

“They, too, appreciate the quality of his work and application lodgements. Keith’s stats so far: 13 deals were submitted since February; seven settled, three at settlement stage, and one new submission still being assessed, so conversions are amazing.

Thirteen deals totalling $9.95m.

“I strongly believe that hard work, knowledge and dedication are key to this industry for a broker to strive, and that Keith has these qualities which help seal him as Young Gun of the year, in my opinion.”

– Marcell Midolo, BDM, Resimac

“Nicola is one of our most outstanding new brokers and won the Loan Market new broker of the year award in 2019.

Joining from ME Bank, it was clear Nicola had a unique ability with customers and was going to take a highly professional approach to establishing her own business in Torquay. She quickly set up her own premises and set about building her team and her network to ensure her clients and referral partners would receive the best service.

“Nicola is quick to adopt time-saving technology that makes it easier for her clients to work with her, championing tools like the Online Fact Find and eSign. This also helps her focus on seeing more clients and offering more services, such as wealth and debt protection. Nicola runs a highly structured, efficient and compliant process that is easy for her team to follow.

“I admire Nicola for achieving so much in such a short time, and it is clear she is balanced and thoughtful in her approach to growth and ongoing success – she is also famous for her treadmill desk!”

– Andrea McNaughton, executive director, network growth

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14/01/2020 10:35:45 AM

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14/01/2020 8:20:54 AM

SPECIAL REPORT

YOUNG GUNS 2020

DYLAN BEER, 34

BRIAN LOWE, 31

MATTHEW IRWIN, 30

The Wealth Connection Austinmer, NSW / Connective

Aussie Taigum Taigum, Qld / Aussie

Crunch Finance Bangalow, NSW / Connective

$21,000,000

$22,528,447

$21,749,541

“Dylan has hit the ground running as a broker and I believe he is a rising star in our industry. He has a natural ability to build trust and rapport with the large cross section of clients he services. This is evidenced from the raving reviews of his service provision, which are a testament to his dedication, knowledge, communication skills and personalised service. Dylan has the right ingredients for continued success. His volumes have increased month-on-month, with 90% of referrals coming from happy clients. Dylan deserves recognition for a terrific start to his career as a finance and mortgage broker.”

– James Brett, sales manager, Connective

“Matt’s one of our top-performing guys on the Gold Coast. He’s been in the industry for a little while, coming out of a bank. He uses a lot of technology, and he’s just someone that’s going to go places for sure. We always catch up once a quarter, just to see how things are going. He mentors one of the other brokers in the team. He’s always willing to help and is very good with stuff that’s outside of the box. He’s worked with CUA and BOQ, so he’s been working in the box, but now that he’s broking he can fulfill more of those out-of-the-box solutions.”

– Chris Feltham, BDM, Connective

“Brian is very efficient and his customer service is fantastic, which is evidenced by his customer survey results. It is also worth mentioning the quality of his applications when submitting to lenders, which have great attention to detail, and his approach of not submitting until he has all of the evidence required. This has resulted in a smooth and transparent experience not only for Brian but also for the customer. Brian also has a respectful relationship with lender partners, which has been instrumental to his education and best practice principles that he prides himself on.” – Zoe Uyen, retail business consultant, Qld, Aussie

DRAMATIC FALLS ACROSS THE BOARD The latest MFAA Industry Intelligence Service report highlights a difficult year in the run-up to March 2019.

Tasmania was the only state to see an increase in the value of home loans settled, and broker numbers also struggled.

Change in number of brokers Change in value of home loans settled

Change in number of brokers versus change in value of home loans settled by state, year-on-year, Mar 2018–Mar 2019 10 8.3%

5 0

1.9%

0.2%

0.0%

0.1%

0.4%

3.1% -3.1%

-1.2%

-5 -9.6%

-10

-9.7%

-7.9%

-10.4%

-10.3%

-12.4%

-15 -18.9%

-20

NSW & ACT

VIC

QLD

WA

SA

TAS

NT

National average

Source: MFAA Industry Intelligence Service report, 1 October 2018 to 31 March 2019

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14/01/2020 8:21:04 AM

SPONSORED BY

YOUEIL SHOL, 23 Time Home Loans East Brisbane, Qld / AFG $26,974,028

“I have been working with Youeil in our business for a couple of years now.

Youeil came to us after pestering Ruan Burger for some work experience. His persistence finally led to us giving him an admin role within our business.

Youeil has grown from the ground up over the past two years, and his passion and dedication to his role are evident in everything he does. He has a maturity that exceeds his age, and it is this that helps him to grow his referral base and has assisted him in writing the volume he has with little outside assistance.

Youeil always approaches everything with his client front of mind. He’s ethical and hardworking, being available for his clients and referral partners 24/7.

He is an asset to our business.”

– Lisa Venn, office and compliance manager, Time Home Loans

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14/01/2020 8:21:12 AM

SPECIAL REPORT

YOUNG GUNS 2020

JESSICA MCLEAN, 27

JARED CONNORS, 30

KATIE DOWTON, 22

Smartmove Home Loans Neutral Bay, NSW / AFG

Mortgage Choice Toronto Toronto, NSW / Mortgage Choice

Mortgage Choice Erina Erina, NSW / Mortgage Choice

$24,255,955

“Since Jess McLean started working with clients I have had numerous calls and texts from customers commending her on her service, advice and patience. In fact, I cannot remember receiving as much positive feedback from customers for a newcomer to Smartmove in my 15 years in the industry. This is reinforced by the number of positive Google reviews on our Google My Business page and by the large number of existing customer referrals Jess is receiving so early in her broking career. Her attention to detail, empathy for the customer and work ethic are combining in a way that customers are absolutely loving! I believe Jess McLean is a future star of the industry.”

– Them Lam, national manager, strategic partners and recruitment, AFG

$23,724,678

“Jared has the knowledge, personality and professionalism that make him stand out. We consistently get positive feedback in regard to his abilities and results, from both clients and lenders. It is a rare combination to find someone who has the ability, work ethic and personality to put clients at ease and form lasting relationships. Jared is as passionate as we are in doing his job; he shows a true desire to work as part of a business rather than just a paid employee. This shows in his care for all our clients, and the networks and referral clients he is growing. For MPA Young Gun status, it always comes down to the customer experience. This is Jared’s absolute strength, and a source of pride for our team.” – Glen Hine, principal, Mortgage Choice Newcastle, Toronto

$23,746,050

“Katie Dowton approached us for a role as a mortgage broker at the age of 19 in 2017. While I felt she was too young to interview clients at that stage, I was extremely impressed with her maturity and initiative.

Katie demonstrated qualities that were going to help her succeed in any role. Since that time, she has had comprehensive training in the industry, most of her own volition. In February 2018, Katie became a full-time loans consultant. Her initial numbers were impressive, with a 100% conversion rate from her first six or seven interviews. The fact that she was still only 20 had no effect on the professionalism she was displaying to her clients.”

– David Ewens, state manager, NSW/ACT, Mortgage Choice

GRACE GARDNER, 24 Aussie Burnie Cooee, Tas / Aussie $17,929,020

“Grace has done an exceptional job and built an extremely loyal customer base in a very short period. Not only is Grace’s volume impressive but her quality submissions, dedication to her clients and ability to engage with people from all demographics and age groups is second to none. She is also extremely proactive with her marketing activities and support of the local area of Burnie.

“Grace continues to invest in her self-development and education to ensure she is fully equipped to service her customers’ ongoing needs and lender requirements in the ever-changing regulatory environment. I have no doubt that Grace will continue to thrive as a broker, and we are proud to have her as part of the Aussie brand.”

– Jimmy Shepherd, Tasmania regional manager, Aussie

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14/01/2020 10:37:12 AM

SPONSORED BY

GABRIEL APRAHAMIAN, 31 Yellow Brick Road Randwick Randwick, NSW / Vow Financial $31,993,865

“Gabriel Aprahamian is our newest broker recruit. Ever since he joined Yellow Brick Road Randwick, he has only brought joy to this business. The branch finished 2019 as the Branch of the Year. Gabriel’s numbers helped contribute to this feat.

Gabriel also brought with him a zest for life which has had a positive impact on the business culture. He is the perfect candidate for this year’s Young Guns award.” – Hung Chuy, branch principal, YBR Randwick and Macquarie Park

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14/01/2020 10:35:29 AM

SPECIAL REPORT

SPONSORED BY

YOUNG GUNS 2020

JOSHUA TREVITT, 32

CHRIS BRAYNE, 27

DAVID WANG, 29

JT Home Loans Carrum, Vic / Choice

Nu-Age Lending Solutions Stirling, WA / PLAN

Mortgage Choice Brisbane City Brisbane, Qld / Mortgage Choice

$30,999,072

$25,000,000

“Josh has grown his business with great gusto. He takes a strategic approach to planning and sets goals for himself, which he often exceeds. He continually strives for improvement and regularly checks in with his mentors and successful peers to ensure he is on track. Josh’s hallmarks are to achieve success and business growth with quality submissions, a strong focus on compliance and, most importantly, with customers’ needs at the forefront of everything he does, which is evidenced by the overwhelming number of referrals he receives. Exceptional customer service and a clear understanding of lenders’ and legislative requirements have brought him great success.” – Wendi Kent, partnership manager, Choice Aggregation Services

$32,615,339

“Chris started with Nu-Age Lending in a loans assistant-type role and over the last year or so has become a full-time finance broker. He has become a finance broker of first choice; our referral partners often ask if they can partner up with him. Chris is currently servicing some of Perth’s most successful sales reps and has not missed a beat. He is hardworking, personable, reliable, efficient and honest. His customer service standards are high, and I receive nothing but positive feedback. Chris is a great team player. On a personal level he is my go-to man when an issue arises with a referral partner. He is a great support to me and helps maintain the great relationship Nu-Age has with its referral partners and does all of this with no fuss.” – Carl Matera, director, Nu-Age Lending Solutions

“As a Mandarin-speaking broker, David has been a huge part of our business. Starting with us in the role of broker assistant, David was exposed to many different deal and customer types. He quickly made it known that he would like to become a broker, and after working closely with the manager of our Mandarin-speaking broking business David transitioned to full-time broker. It is not uncommon for David to receive multiple testimonials and reviews complimenting the broking service he provides, which is a direct representation of why he is considered one of Australia’s top young brokers. David has grown quickly within the industry, and as of November 2019 he has become a Mortgage Choice franchise owner.” – Matt Cunliffe, MD, Mortgage Choice Brisbane

NUMBER OF BROKERS RECRUITED PER PERIOD, BY GENDER 1,168 972

931

947

938

892

854

Men

625 475

454

439

Women

Apr 15–Sep 15

Oct 15–Mar 16

Apr 16–Sep 16

523 406

360

Oct 16–Mar 17

Apr 17–Sep 17

Oct 17–Mar 18

371

Apr 18–Sep 18

313

Oct 18–Mar 19

Source: MFAA Industry Intelligence Service report, 8th edition

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14/01/2020 9:25:06 AM

17th ANNUAL

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For more information, visit www.mpamagazine.com.au 16-29_Young Guns_SUBBED_Fix map.indd 27

14/01/2020 9:25:13 AM

SPECIAL REPORT

YOUNG GUNS 2020

ROBERT BORGIA, 27

JONATHAN DE SENSI, 29

Mortgage Choice North Brisbane Brisbane, Qld / Mortgage Choice

The Australian Lending & Investment Centre Melbourne, Vic / Connective

$35,255,857

HOPE BATCHELOR, 27 Trilogy Funding Deakin, ACT / Choice $37,037,917

$36,894,574

“Rob began with our business in the role of loan processor and has learned the job of mortgage broking from the ground up. Fresh out of uni with a commerce degree, he was a great candidate for our business and fit well within our team from day one. Rob went from stride to stride in the role of processor, quickly ‘graduating’ to become direct assistant to the owner, and began to learn the finer details of becoming a top broker. Rob excelled in all aspects, from credit to client-facing tasks, and it was not long before he was broking full-time. We receive rave reviews from clients and referrers alike. He is a massive asset to our team.” – Matt Cunliffe, MD, Mortgage Choice Brisbane

“Jonathan will be one of the best brokers in the country over the next few years and will make the top 50 after transitioning from the bank system and spending 14 months training alongside myself, setting up a foundation that is second to none. He displays real energy and passion for what he does and delivers some amazing outcomes for clients from a structure and strategy perspective, all while delivering an exceptional customer experience. Given that our business focuses on high-net-worth strategic-type clientele, Jonathan has worked extremely hard to develop his own network of clients who put all their trust in him to deliver.”

– Mark Davis, principal, ALIC

“Hope Batchelor is showing all the signs of being one of Australia’s leading mortgage brokers. The best brokers are diligent workers who focus on good client outcomes. Hope is showing these two key qualities at a very early stage in her career and a very young age. While most brokers have been caught up in the negativity of lending changes over the last two years, Hope has remained focused on improving her knowledge of credit requirements and lenders’ product offerings so she can offer the best possible advice to clients and the best outcomes. Her volumes over the past 18 months are a testament to her commitment to her job and her clients.”

– David Thomas, MD, Trilogy Funding

TOP 100 BROKERS: WHAT’S NEXT FOR MPA’S YOUNG GUNS? The MPA Top 100 Brokers for 2019 included these 23 brokers who were aged 35 or under at the time the list was compiled. This is a higher number of younger brokers than in the previous year’s list. Many were featured in the Young Guns report last year or even won an Australian Mortgage Award.

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RANK 1 5 10 12 27 28 32 33 43 44 50 59

NAME

COMPANY

STATE

TOTAL VALUE OF RESIDENTIAL LOANS

Darren Liu Jordan Beh Jarred Spurr Russell Munfaredi Jordan Chantry Natasha Choi Jinkai Ryan Zhang Sam Carrello Zain Peart Matthew Pongrass Matt Cunliffe Balpreet Bal

My Home Loan Insight Property Finance Sphere Finance Mortgage Pros Trinity Finance Group The Australian Lending & Investment Centre Option Finance Australia Napoleon Finance ZEP Finance Certe Finance Pty Ltd Mortgage Choice Brisbane City Loan Market

NSW NSW NSW NSW VIC VIC NSW WA NSW NSW QLD WA

$194,026,090 $104,636,367 $111,041,594 $143,318,150 $80,468,064 $83,229,464 $75,709,422 $79,829,610 $73,982,073 $72,565,004 $86,491,176 $76,521,647

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SPONSORED BY

LOUI DAOUD, 27

JOA MARTINEZ, 26

Dot Financial Pty Ltd Sydney, NSW / Connective

Pacific Finance West Perth, WA / Connective

$40,000,000

$17,697,291

LAUREN SHUTTLEWORTH, 33 Zillow Pty Ltd Robina, Qld / Outsource Financial $48,468,090

“Loui Daoud is one of our most promising brokers to emerge out of Connective. Since taking over as his broker support manager earlier this year I have got to know him and his business in great detail. Since coming out of CBA as one of their top performers and opening his own broking business he has cemented himself as a top performer. He achieves phenomenal results for his clients based on his astute knowledge of lending and structuring deals, use of technology in streamlining his processes and workflow, and 100% commitment to clients, which is demonstrated in customer testimonials, all of which give glowing feedback. – Kavish Kamal, broker support manager, Connective

RANK 60 63 65 68 70 74 79 84 85 92 99

“Joa is an exceptional young broker. Her enthusiasm and energy are outstanding. She is solutions-driven, hardworking, innovative and always keen to learn and grow her skills.

Joa handles a wide range of clients, from first home buyers to high-net-worth experienced property investors and everything in between.

We receive regular compliments from clients on Joa’s customer service skills, positivity, knowledge, and the efforts she puts in for clients. Joa is fluent in Spanish, Portuguese and English, which gives her a strong point of difference in these communities and ensures her diverse client base continues to grow.”

– Jamie Ontal, broker support manager, Connective Broker Services

NAME

COMPANY

STATE

TOTAL VALUE OF RESIDENTIAL LOANS

Luke Camilleri Fane Levy Jacob Decru Hoa W Hong Daniel Gold Charlie Loveridge Nicholas Jones Joshua Carleton Josh Gilbert Faris Dedic Joshua Durrant

Smartline Shore Financial One Network Broking Pty Ltd Mortgage Pros Long Property Shore Financial Aussie Belmont SMS Finance Loan Market Red Door Financial Group Choice Capital

NSW NSW VIC NSW VIC NSW NSW QLD VIC VIC VIC

$73,885,000 $76,249,309 $73,200,215 $68,000,000 $69,910,650 $72,319,854 $68,517,480 $66,579,442 $70,360,914 $63,941,812 $64,691,136

“I have had the pleasure of working with Lauren for the past 18 months as both her mentor and state manager, and her approach to lending is thorough and professional. Lauren works tirelessly to ensure her customers have a successful and positive outcome each and every time. I have had many compliments from lenders about her loan submissions. In a short space of time she has built some really strong lender relationships, and for this reason I would have no hesitation in recommending Lauren for this award; she is in our eyes a Top Gun.” – Paul Marshall, regional executive manager Qld and WA, Outsource Financial

2019 was the first year that MPA ranked brokers not only on the value of residential loans written but also on other factors such as volume growth and conversion rate. This was because we wanted to celebrate the hard work of brokers who didn’t necessarily have the customer base to rack up huge numbers every year but had proved their worth by working hard and continuing to grow and improve.

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22/01/2020 1:34:17 PM

FEATURES

NEAR PRIME LENDING

Broking better mortgage opportunities With lending criteria shifting in the wake of the royal commission and as a result of the wider hardening market, near prime loans are gaining traction among borrowers and brokers alike. MPA talks to some of the experts in the field

AS 2020 gets underway, it’s evident that brokers are facing a harder market. Many Australians who might have previously been able to access a loan, either for their own home or for an investment property, are finding themselves being declined by traditional lenders. It’s an issue that’s particularly prevalent among those borrowers who don’t fit the usual mould, and it’s unlikely to shift soon.

The scrutiny of lenders by the royal commission and its subsequent report has understandably resulted in tightened regulations. Protecting the vulnerable from predatory loaning practices is undoubtedly

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positive, but it has also meant that others are missing out on the opportunity to buy property. The shift in bank acceptance criteria has caused considerable confusion and uncertainty for many consumer segments, driving more business to brokers.

Accordingly, the need for a near prime solution in the market today has never been greater, says Aaron Milburn, general manager, mortgages and commercial lending, at Pepper Money. Mainstream lenders tend to gravitate towards clean-credit vanilla customers that sit within a predefined box. But that’s not always reality, he explains.

“Unfortunately, more Australians who

can afford to get a loan will find themselves needing to look for other options as credit policies tighten and comprehensive credit reporting is fully rolled out,” says Milburn.

“That’s why we’ve seen more non-bank lenders move to offer a solution in this space.

Near prime products help bridge the gap caused by traditional lenders tightening their lending criteria in all aspects of prime lending.”

It’s a situation that’s been particularly exacerbated by the growing number of selfemployed people over the last 20 years, notes Cory Bannister, chief lending officer at La Trobe Financial. They don’t necessarily

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have a straightforward credit standing; this, combined with the credit tightening and product simplification strategies of major banks, means a large number of borrowers have moved outside the banks’ acceptance criteria, making them ‘near prime’ by definition.

“As a consequence of these macro changes, the near prime market has grown substantially,” says Bannister.

Aiding near prime borrowers Assisting near prime borrowers should be a significant priority for both brokers and lenders, but many are daunted or unsure about how to best approach the topic.

However, by liaising with lenders, brokers can do more to educate themselves – and in turn their clients – about the prospective benefits.

Near prime also represents an opportunity for brokers to diversify their offerings and branch out into new territory. Given the overall hardening market at the moment, having a broader portfolio is one possible way to insulate against tougher times.

Near prime borrowers are a market Milburn describes as “underserved” by the major banks, and as a consequence many people are unsure about how they can best leverage loans to improve their financial position.

“Generally, we find that customers who fit

a near prime profile are looking to do one of three things,” says Milburn. “They’re looking to refinance or consolidate debts, access cash-out for business expansion, or increase their investment portfolio.”

But it’s a common misconception that near prime borrowers have some level of impaired credit, notes Bannister, and this is not always the case.

“Factors now resulting in a borrower being graded near prime include unforeseen changes in employment, variability of income, or simply seeking a product that is no longer being offered by the major banks, such as SMSF loans,” says Bannister.

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FEATURES

NEAR PRIME LENDING

LENDER’S TAKE: AARON MILBURN Looking to the future, Aaron Milburn, GM of mortgages and commercial lending at Pepper Money, believes that near prime will always have a role in the Australian lending landscape; it is just the size of the sector that will change and the kind of customer who needs this type of lending.

“It helps to think of near prime lending as an elastic band,” says Milburn. “It expands and contracts depending on internal and external factors.

With a customer remaining in the middle of this, what near prime does very well is provide brokers with certainty and a high level of comfort that solutions exist when a customer sits outside of the box.”

“So, typically, near prime loans require a higher level of manual credit assessment to appropriately assess and ultimately approve the application under applicable legislation.”

When it comes to educating borrowers about their options, brokers have a key role to play in the process, notes John Mohnacheff, national sales manager at Liberty. Brokers can aid borrowers in understanding the sort of criteria lenders assess when they look at risk and determine whether a customer is prime or near prime. But there are other factors that support a successful loan application.

“If a borrower is considered near prime, the most important question brokers should ask is: ‘Have I got all of the information to help explain the borrower’s story?’” says Mohnacheff. “If brokers take the time to work with the customer and really understand the finer details of their situation, they’ll be best placed to get the deal across the line.”

The challenge for brokers, explains Milburn, often comes from recommending a near prime product to the client when they may have never needed to consider an alternative lender in the past.

“At Pepper, we have a 5 Step Process,” he says. “Brokers can use this as a guide to how to successfully offer an alternative lending solution, as well as get some tips for navigating the emotional aspect of the

phenomenon that’s very much filtered down to individuals.

“At Liberty, we understand that everyone’s circumstances are different and that they change over time,” says Mohnacheff. “Because

“Near prime products help bridge the gap caused by traditional lenders tightening their lending criteria in all aspects of prime lending” Aaron Milburn, Pepper Money Aaron Milburn

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customer’s lending experience.”

Near prime loans can also be useful for helping people re-establish themselves after difficult periods, notes Mohnacheff. The banks haven’t been the only ones affected by the credit crunch; it’s a wider societal

of this, we help customers get a fresh start even when their past circumstances have held them back. Similarly, we can review the circumstances of existing borrowers on a case-by-case basis.”

From a broker perspective, it’s also

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LENDER’S TAKE: CORY BANNISTER

simply good business, says Bannister.

“Our experience tells us that people never forget those that help them, or stand by them in a time of need, and near prime borrowers fit that mould,” he says.

Managing successful applications Of course, having the right tools in place is essential to entering the near prime marketplace. Familiarising your brokerage with the relevant assets and having detailed

Borrowers who were once classified as prime and have now fallen into the near prime space are often able to restructure their loans as they rebuild their credit history and their circumstances stabilise, notes La Trobe Financial’s chief lending officer, Cory Bannister.

“For many near prime borrowers, it is simply a pointin-time assessment,” he says.

For the present moment, though, it appears the major banks will not unwind many, if any, of their simplification strategies to recapture this borrower segment in the short term.

“Non-banks’ purpose is to ensure creditworthy borrowers who are overlooked have access to credit,” says Bannister. “So we see this as an opportunity once again to step in and assist, recognising the importance that non-banks have and will continue to play in a competitive financial system.”

“Our experience tells us that people never forget those that help them, or stand by them in a time of need, and near prime borrowers fit that mould” Cory Bannister, La Trobe Financial “ The key is to understand the borrower’s situation in detail and be able to communicate it clearly to us as the lender.

The more information we have upfront, the quicker and easier we can provide a solution.”

conversations with lenders and borrowers alike around the requirements for a successful application is crucial.

There’s no point in recommending a client for a near prime product if the groundwork hasn’t been done successfully

Cory Bannister

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FEATURES

NEAR PRIME LENDING

LENDER’S TAKE: JOHN MOHNACHEFF Liberty’s national sales manager, John Mohnacheff, notes that there’s often confusion around what near prime lending is and the role it plays in the loan marketplace.

“Near prime lending describes borrowers who might be on the cusp of qualifying for a prime loan,” Mohnacheff explains. “Typically, they have a minor blemish on their credit history or fall short on criteria such as employment duration.”

He points out that custom borrowers of this sort have always been a valuable market segment for any broker business, regardless of whether they are near prime or require a more tailored solution.

“Liberty has operated for more than 22 years in this space and it’s an area of lending that is growing, so savvy brokers will take note,” says Mohnacheff.

“If brokers take the time to work with the customer and really understand the finer details of their situation, they’ll be best placed to get the deal across the line” John Mohnacheff, Liberty

– it’ll just mean they’re turned away from another form of finance and will lead to further consumer confusion.

“Successful near prime applications require a conversation and manual underwriting, which is precisely why non-banks are a perfect fit,” says Bannister. “We take the time to listen and understand the individual’s situation in order to assess the challenge they face.”

Future financing

John Mohnacheff

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Looking to the rest of 2020 and beyond, it seems clear that near prime loans are likely to become a staple part of the mortgage landscape. Alternative lenders and non-banks are expected to continue to grow in popularity, both out of necessity and as a result of brokers making borrowers more aware of their services.

Of course, for some lenders this will essentially mean business as usual – there have always been borrowers who don’t quite fit the traditional mould, and they will always need the services of brokers and alternative lenders.

“Helping near prime borrowers is a great way for the non-bank sector to help restore loyalty and trust in the finance industry, as well as being our core mission,” says Bannister.

Maintaining these skill sets and client relationships throughout the ups and downs of the market means your brokerage will be more effectively equipped to take customers on a ‘come as you are’ basis, while also generating additional income.

“Being able to approve deals that banks can’t isn’t new to us,” says Mohnacheff. “For over two decades we’ve operated to help as many customers as we can and have always looked at an applicant’s full story when assessing their eligibility for a loan.”

And of course, there’s the distinct possibility that many current borrowers in the near prime category won’t remain that way forever.

Building business with them now will enable positive relationships further down the track.

Brokers should remember that borrowers are priced for risk upfront, and risk can decrease over time as the borrower demonstrates their ability to pay the loan back.

“We’ve always said that prime is a moment in time,” says Milburn. “The same can be said for near prime. Borrowers who find themselves in need of a near prime product may well have a different set of circumstances months or years down the track. If the customer’s situation improves over time, brokers should be able to work with them to find an alternative solution to meet their needs.”

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2020

ARE YOU AUSTRALIA’S TOP COMMERCIAL BROKER? Calling all commercial brokers working at the top of their game: Be recognised for your success as Australia’s Best.

Entries open 10 February 2020.

For more information, visit www.mpamagazine.com.au

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FEATURES

GIVING BACK

Doing more for Aussies in need In an industry in which money is the name of the game, some organisations are committed to giving back and supporting those in need, whether due to homelessness, mental or physical health problems, or domestic violence

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AS WE have seen in recent times, lenders, broker groups and other industry organisations have rallied together to support Australian communities affected by bushfires, and the firefighters risking their lives.

This generosity is not strictly limited to recent events, however, as the industry has been ‘giving back’ to various causes for some time.

ANZ, for instance, is one major bank that has been working closely with a charity that helps homeless people in Australia.

The bank partnered with LADDER in 2018 after a discussion about its “core purpose”.

It recognised that as a large corporate it could genuinely help young people become job ready.

LADDER aims to lift young people out of homelessness by helping them build key life skills such as self-efficacy and independence, and gain education, employment and training.

In September, ANZ and LADDER hosted an AFL Grand Final dinner with more than 420 members of the broker industry in attendance, raising $57,800 from brokers

ABOUT LADDER Developed by three AFL players who recognised a need while they were volunteering at soup vans in Melbourne, LADDER is the primary beneficiary of the AFL Players Association. It is supported by senior players who contribute $25 from each match fee, which amounts to more than $217,000 every year.

LADDER’s programs help young people improve in key domains, including self-efficacy, community connection, health and wellbeing, developing independent living skills, and education, employment and training.

position; I’ve got a good job and I’ve got a young family who have first-world problems, and I think when you go and you meet these young people who genuinely need help and are genuinely willing to listen and take your advice, it just reminds you of the position you’re in.

“Everyone in my business who has gone through this process [of mentoring people in need] has been extremely humbled by it” Trent Jollow, ANZ and aggregators through donations, table sponsorships and a live auction.

But it’s not just monetary contributions ANZ gives; volunteers from the bank donate time to the charity by offering mentoring services and other forms of assistance.

Trent Jollow, ANZ commercial state manager for Victoria and Tasmania, says it’s a “humbling process”.

“They’re genuine people that are looking for help,” he says. “I know I’m in a privileged

“I think everyone in my business who has gone through this process has been extremely humbled by it. We go in there because we think we can do something to give back to the community, but the benefit that it’s had for my broader team has been far greater than I ever expected.”

The major bank has also formally joined LADDER’s six-week Step Up program, which aims to help young people aged between 16 and 25 become more job ready. Participants

visit the ANZ offices, where they learn new skills such as interview preparation and receive career advice.

An obligation as human beings While many organisations may choose to dip in and out of charitable giving, or pick different charities each year, ANZ intended its partnership with LADDER to be ongoing.

Jollow says the bank really felt there was an obligation to “do something more”.

“Leveraging the opportunity and the skills that we have to provide value to the people who need it is the minimum that we could be doing,” he adds.

“It’s mutually beneficial, and the more you can do the better. For me it’s not around giving up time; it’s something you have to do, and it’s good for everybody. From my perspective, in terms of running the business, my team appreciate it so much that they give back tenfold; it’s our obligation as human beings.”

This is not something ANZ is simply doing internally either. The major bank invited mortgage brokers, commercial brokers, aggregators and others in the industry to join in at the AFL Grand Final dinner – even other banks were invited.

Jollow says that if any brokers out there want to take part and help with either donations or mentoring, they simply need to get in touch.

“This was not about ANZ; this was branded LADDER. We’re the premium partner, and yes, we do all the logistics and organisation, but people aren’t attending an ANZ event; they’re attending a LADDER event,” he points out.

“I think that was a big learn for us. When we first went out there, it was an ANZ and LADDER initiative, and we very quickly realised it shouldn’t have anything to do with ANZ; it should all be about LADDER and the young people.”

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FEATURES

GIVING BACK

Organisations fighting health issues Understanding the severe impact that health problems can have on Australians, insurance provider ALI Group has supported several major health campaigns. In 2019, these included heart health, breast cancer, and men’s health through Movember.

The group has also backed broker-led charities such as the Cooper Trewin SUDC Foundation, Brokers Ride to Conquer Cancer, and Live in the Now Foundation.

pressure of running their own businesses.

“In an industry that is service-led, brokers are often commended for putting client needs first,” says Choice CEO Stephen Moore.

“However, it is also important for brokers to take care of their own needs in order to stay mentally healthy. A key part of this is putting time in the diary to spend with friends and family, carving out personal time such as time to exercise, and maintaining a positive mindset.”

“When I handed over the cheque to Doris Women’s Refuge, I was reminded about why I was doing it. It was well worth it” Deanna Ezzy, More Than Mortgages Through the nature of its business, ALI has a close-up view of how health problems affect Australians, regardless of age, gender or race. Heart disease, heart attacks and other heart-related illnesses make up a big portion of its claims. As of April 2019, ALI had paid more than $9m in claims for heart attacks and over $1.3m in claims related to coronary bypass operations since 2003.

“Giving back, working with purpose and protecting Australian home and property buyers is truly at the core of what we do,” says ALI Group CEO Huy Truong.

It is not only physical health problems that impact Australians: mental health is an increasing concern, and the broking industry has rallied behind initiatives to raise awareness of this.

Choice Aggregation Services is just one of the organisations that support mental health charity R U OK?, which holds an R U OK? Day each September.

It’s also been highlighted that brokers themselves are at risk of mental health problems, because they often work alone, travel long journeys and deal with the

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Supporting brokers Providing mental health assistance for brokers has been a focus of Choice in recent years, and it offers support services such as a Broker Hotline and discussion groups.

Moore says partnering with R U OK? was a “natural fit”. “We want brokers to feel optimistic and excited about the future, and this can only be made possible by maintaining a positive mindset, highlighting the importance of peer-to-peer support in the workplace, and encouraging everyone to better support those around them,” he adds.

Brokers themselves are taking giving back into their own hands. MPA Top 100 Broker and director of More Than Mortgages Deanna Ezzy organised an event called Domestic Abuse Needs Community Evolution (DANCE) in March 2019.

The idea of raising funds for an outreach charity like Doris Women’s Refuge resonated strongly with Ezzy, who was personally affected by domestic violence as a child in New Zealand and also had experience as a dance instructor before becoming a broker.

Although her team raised over $7,000,

LADDER IN NUMBERS In a survey of program participants:

91% identified and progressed their education and training goals

100% felt more connected to their community

93% improved their physical health

97% agreed that participating in the program helped them achieve or get closer to achieving their goals

Ezzy considers time as her biggest contribution to the event. She dove into the project while running a business that requires over 60 hours of her time per week.

“This was such a time-consuming and stressful thing to organise as it involved daily action and follow-up, and of course anxiety around wondering if anyone would turn up,” she says. “Again, this was a huge success, and when I handed over the cheque to Doris Women’s Refuge, I was reminded about why I was doing it. It was well worth it.”

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Our personal approach to assessment means we can be more open to your customers’ needs.

Send us a file today. Call 13 80 10 or visit latrobefinancial.com

La Trobe Financial Services Pty Ltd ACN 006 479 527 Australian Credit Licence 392385. La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence 222213 Australian Credit Licence 222213. Terms, conditions, fees, charges and La Trobe Financial lending criteria apply.

To view our ratings and awards please visit our Awards and Ratings page on our website. This publication is for accredited broker use only and is not for distribution to consumers. Copyright 2019 La Trobe Financial Services Pty Ltd ACN 006 479 527. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial.

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FEATURES

LEARNING AND TRAINING

The future of learning is peer-to-peer There are many benefits to peer learning beyond just education, as the shared experience fosters inclusion, trust and collaboration, writes Jen Jackson

AS THE business landscape shifts and change becomes the new constant, the traditional model of a three- to five-year higher education spent learning technical skills, followed by a 40-year career spent applying them, is no longer serving us.

Technology, artificial intelligence and automation; volatile, fast-paced business environments; and up to two decades longer in the workforce are driving the need for continuous lifelong learning.

Career changes are increasingly commonplace, many requiring considerable reskilling and re-education. Existing professions are also evolving as specific roles and tasks are automated and value is delivered in other areas. And entirely new professions are emerging, many of which have no formal curriculum.

Forward-thinking higher-education institutions are now offering courses that equip graduates with the skills for a future that might involve multiple career paths, rather than a single career in a specific discipline.

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Increasingly, though, the responsibility for learning and development is moving beyond institutions and falling on individuals and organisations.

With more change and less time, we need

According to Glassdoor, the average business in the United States spends roughly US$4,000 per hire and takes up to 52 days to fill a position – a cost far better invested in learning and development.

A constant cycle of learning and teaching fosters an environment in which curiosity, learning and feedback are encouraged to rethink how learning and development experiences are delivered, and how they integrate into the overall employee experience. And one of the best methods is peerto-peer learning.

Long-term sustainability Learning and development is growing rapidly in importance as a business function, though in the future its value will go beyond delivering knowledge to empowering employees with the skills needed to teach each other.

It makes sense to hold on to good people, transitioning them out of redundant roles and reskilling them to fit new positions, rather than adopting a cycle of firing and hiring. People are being valued based on cultural fit and human skills, more than the ability to perform a specific technical role.

As the demand for learning escalates, employing external consultants to roll out training is becoming unsustainable. The sheep-dipping approach of running everyone through the same content as quickly as

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possible has never been regarded with particular fondness. But with increased demand for bespoke learning experiences, it’s no longer a viable investment.

Bringing learning and development in-house tantalises employers with substantial savings in time, productivity and dollars. In 2010, British Telecom reported savings of US$12m annually when it adopted opensource learning solutions and peer learning.

These savings are better invested into building capability in leaders: the psychology of learning; human-centred communication; fostering psychological safety; and facilitation techniques. These are areas leaders aren’t traditionally trained in, and possessing

and teaching fosters an environment in which curiosity, learning and feedback are encouraged.

A social experience LinkedIn’s 2019 Workplace Learning Report discovered a high demand for social learning experiences at work, with over half of each generation valuing the ability to collaborate with instructors and/or peers while learning.

Peer learning delivers on this demand, translating to improved learning outcomes.

Research by Michigan State University found that students performed better when the context for learning was provided by peers. While students who received a peer

The responsibility for learning and development is moving beyond institutions and falling on individuals and organisations technical knowledge doesn’t equate to being able to pass them on to others. However, once these additional skills have been learned, they can be applied over an entire career.

Teaching promotes learning It’s well established that teaching is an effective way to learn and embed existing knowledge.

A recent study led by psychologist Aloysius Wei Lun Koh suggests that peer learning is effective because it forces the teacher to retrieve content they’ve previously learned.

This repetition strengthens neural connections, a premise studying is based on.

Articulating knowledge also requires a thorough understanding of the subject matter. It’s possible to have deep expertise, but explaining it concisely to others quickly identifies any gaps in the teacher’s knowledge. It also requires a greater understanding of context – the reason why we do it.

Additionally, a constant cycle of learning

rationale wrote better essays and received the highest final grades, students who received a scripted rationale from an instructor performed worse than if they had received no rationale at all.

Study co-author Cary Roseth suggests these results show that while instructors are good at communicating facts, peers tap into an identification process. They give the material additional meaning and purpose – a relatable narrative – beyond mere memorisation.

The benefits of peer learning aren’t only educational though; they’re social as well.

A shared learning experience fosters inclusion, trust and collaboration.

A study led by Cynthia Rohrbeck found that peer learning in school systems helped minority groups integrate better and increased the likelihood of continued positive interactions.

We also tend to trust our peers and leaders more than external consultants or trainers.

These are the people we’ve built a rapport with, who understand our work and its challenges.

LinkedIn found that people primarily discover the skills they need to improve or progress as a result of the direction or guidance of their managers. Seventy-five per cent would take a course assigned by their manager, while 46% cited their manager or leadership as a source of learning opportunities.

Good leaders know their people better than anyone and are in a unique position to personalise learning opportunities based on individual strengths and skills gaps.

Higher expectations Our expectations of content sharing have grown. We can sign up to incredible learning experiences online – often for free. Meanwhile, many workplaces are still hampered by outdated learning management systems (LMSs) and technical content cobbled together and distributed as uninspiring documents.

Fortunately, LMSs are gradually being replaced by learning experience platforms (LXPs). Where LMSs have typically focused on rules, compliance and management, LXPs are more flexible and engaging, mirroring technologies we use daily, like social platforms and streaming video.

Content can be sorted into channels or playlists based on a topic, skill or learning objective. It can be shared, rated, recommended or commented on.

This new technology gives people a familiar way to develop and share workrelated content with their peers.

Jen Jackson is the founder and CEO of the award-winning employee experience company Everyday Massive, as well as a speaker and author of How to Speak Human.

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FEATURES

PRODUCTIVITY

Why can’t we focus any more?

Aytekin Tank explores the truth behind our modern culture of distraction and what we can do to combat it

WE DON’T always have what it takes to shut off the noise in the background. It’s easy to think that being distracted is just the inability to focus, when in fact it’s more complicated than that.

As Seth Godin, the content god himself, said in one of his essays: “If you’re not paying, you and your attention are the products.” We let ourselves getting sucked into an endless cycle of distraction while the gatekeepers are busy selling our attention to advertisers.

One of the problems with distraction is that we are being handed what we believe is available out there. We never second-guess whether there’s anything else we should know, as we’re being fed with information we think we need.

Tristan Harris, a former Google design ethicist, has learned first-hand about what technology does to our vulnerable minds.

Harris put it best when he compared how technology works with how a magician works, in giving us the illusion of choice.

“The more choices technology gives us in nearly every domain of our lives – information, events, places to go, friends, dating, jobs – the more we assume that our phone is always the most empowering and useful menu to pick from.”

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We fail to see what other options are out there because we simply think that what we have in our hand is the only set of options we can choose from.

A close look at how we get through an hour in a day can tell us so much about how we decide to direct our attention. As the founder and CEO of Basecamp, a project management hub that champions efficiency,

Jason Fried might be the voice we want to listen to: “Time is the most precious thing there is,” he says, “yet we split it up and give it away like there’s an endless supply. And whatever time you do have, you have even less attention.”

Where do we lose all the time we have?

In waves of interruption: chat, notifications, presence and always-on expectations. The

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effect, as you might guess, is the more fragmented hours we clock in to finish what could have been done in an hour or two if we were to consciously choose to silence all the unnecessary noises.

Detaching ourselves from the overwhelming noise around us requires some determination, though. Detaching means taking active steps towards a space where absolutely nothing can get in the way of our full attention. That means putting away the smartphone or even not having internet access for a day – or a week, if you dare.

What multitasking does to our brains Not switching between tasks is a realistic approach to take in our effort to refocus.

Single-tasking, as Manoush Zomorodi, the author of Bored & Brilliant, calls it, is a way out that we’ve come to believe is less efficient than its sophisticated, overrated cousin: multitasking.

“Humans’ neural resources are not infinite, and switching between tasks, especially for those who work online, can happen upward of 400 times a day,” Zomorodi says. No wonder we’re all zombies with missed deadlines.

This reinforces another issue introduced

by Daniel Levitin, professor of behavioural neuroscience at McGill University, which is that the mind should be allowed to wander between finishing one task at a time. Only then is attention to single-tasking not fragmented, and, as a result, we become more productive and successful in completing challenging tasks.

The idea that spacing out is necessary might be contradictory to what we’re wired to believe, which is to never let one’s mind wander aimlessly. Being bored is so heavily

associated with negative connotations that we don’t even bother to consider that only out of boredom comes the stimulationseeking part of our mind, explains Sandi Mann, a psychologist and author of The Upside of Downtime: Why Boredom is Good.

Neuroscientist Marcus Raichle also pointed out that when our minds wander, it activates the default mode network in our mind, allowing us to think back and forth.

It allows us to access our subconscious

smartphone, face down on the desk in front of us, undercuts our ability to perform basic cognitive tasks.

There’s no way of getting rid of technology once it’s adopted, Brown notes.

Instead, Boundless Mind is trying to use these persuasive technologies to promote a healthy and democratic society. Essentially, the organisation is trying to change the way our minds are controlled by campaigning for upfront transparency for the companies

“The more choices technology gives us in nearly every domain of our lives, the more we assume that our phone is always the most empowering and useful menu to pick from” minds and not focus on goal-oriented tasks.

Different connections in our brain circuits then fall into place, creativity takes over, and self-awareness gives us more of a chance to refocus ourselves.

How to reclaim our attention Tristan Harris at Google, has created the Time Well Spent movement, which aims to educate people on how not to be abused by online products that profit from our endless attention.

And neuroscientists Ramsay Brown and T. Dalton Combs co-founded Boundless Mind with a mission to disrupt America’s addiction to technology.

The American Psychological Association revealed in 2018 that 65% of survey respondents believed that periodically unplugging would improve their mental health.

Another study by the University of Texas in 2017 found that the mere presence of our

it’s representing. It’s helping people’s engineered minds be what they want to be and not just robots with more eyeball time.

The conversation needs to start – the ability to control our own minds must belong to us. Despite all of these companies advocating for us, we can always start with ourselves. As Derek Powazek, the author of Design for Community: The Art of Connecting Real People in Virtual Places, puts it: “We are not the product if we educate ourselves enough.”

Aytekin Tank is the founder and CEO of JotForm, an online form creation software with four million users worldwide and more than 100 employees. A developer by trade but writer by heart, Tank shares stories about how he exponentially grew his company without receiving any outside funding. For more information, visit jotform.com.

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14/01/2020 10:31:13 AM

FEATURES

MENTAL HEALTH

Why your health helps your business With one in five Australians reporting that they have experienced mental illness, Anastasia Massouras says small business owners need to focus on their health for better performance and profit

REMEMBER WHEN you decided to start your own business? You were fuelled by promises of freedom, flexibility and financial security – the excitement of choosing the hours you worked and taking holidays when you wanted, for as long as you wanted.

Now compare this to the reality: spiralling overheads and payroll costs, working up to 80 hours per week, struggling with cash flow

It is a journey of bitter-sweet moments. But there is hope; there is a way to bring happiness back to your work or the need for financial expertise, dealing with mental health and wellbeing issues, and managing staff and their concerns. These are the most common challenges facing small business owners today.

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TOP 5 TIPS FOR MANAGING YOUR MENTAL HEALTH

financial stress. It is a journey of bitter-sweet moments. But there is hope; there is a way to bring happiness back to your work.

Bring happy back 1. Practise gratitude: Spend five minutes at the start of the day acknowledging all the good things in your life. It is proven to improve your psychological and emotional health.

2. Be present: Be mindful of your thoughts, feelings and experiences. You have the power to interrupt negative patterns and influence positive ones.

3. Acknowledge small wins: Stop, recognise and reward achievements and progress with your team, as well as your family. Bring everyone together – social events or time together work well.

4. Connect: Surround yourself with positive people who fill your bucket rather than draining your energy. You cannot be successful on your own, but you can be unsuccessful with the wrong support.

5. Time in nature: Get outside in the fresh air, even for 20 minutes, which has been proven to improve vitality and emotional strength, as well as decrease the risk of depression and anxiety.

Statistics from the Australian Small Business and Family Enterprise Ombudsman show that 97% of Australia’s economy is made up of small businesses with no more than 20 employees. Yet more than 60% of these fail within their first three years, and the odds are stacked against those that continue.

In addition, in 2019, the Productivity Commission Inquiry into Mental Health conducted by the Mentally Healthy Workplace Alliance revealed that one in five working Australians reported experiencing mental illness, with evidence suggesting that psychological distress is most acute for sole traders.

Fleeting instances of excitement, achievement and growth are often buried among feelings of isolation, fatigue and ongoing

Just as you have achieved success in your business and life thus far, you can achieve further success with the right support, education, tools and strategies surrounding your health. Extending your hand for help is the first step towards gaining a sense of control over your environment. Knowing you can change yourself, your business and your life is crucial – not just to survive but also to progress. After all, silent suffering is the silent killer of your business.

Your mindset plays a huge role here.

go away. There will always be setbacks, failures and obstacles. What counts is how you deal with that pressure, with those setbacks and obstacles. It’s essential to move away from simply reacting to events towards responding to events.

It is also important to learn how to transition from your professional to your personal life. Learn to keep stress or adversity that you may be experiencing in one aspect of your life from negatively impacting on another.

Making conscious choices each day about what to eat, when to exercise, and how to switch off from work and on for home is the recipe for success and stamina in small business.

Knowing you can change yourself, your business and your life is crucial – not just to survive but also to progress. After all, silent suffering is the silent killer of your business Your perception of your reality powerfully influences the way you view your world and the decisions you make in business. It helps you move from talking about what you wish for to actually taking steps and doing the stuff that will transform your life. This kind of growth creates feelings of freedom, power, authority, motivation and encouragement.

This is a tipping point in your business.

You can breathe again and start to find joy in why you do what you do each day. You shift from feeling overwhelmed and helpless to hopeful and in control.

24/7 self-care Running your own small business is a 24/7 activity, which is why you need to be mentally healthy, fit and strong.

There will always be pressure; it will never

As Phil Knight, the CEO of Nike, said, “There is an immutable conflict at work in life and in business, a constant battle between peace and chaos. Neither can be mastered, but both can be influenced. How you go about that is the key to success.”

Maintaining your health and the health of your business requires time, consistent effort, commitment and caring for yourself and your people. But this is the only way you will ever perform and prosper in your business, wouldn’t you agree?

Anastasia Massouras is the CEO of Work Happy. She is a leader, facilitator and coach helping small business owners and teams to overcome barriers that prevent growth

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13/01/2020 12:10:56 PM

PEOPLE

BROKERAGE INSIGHT

Broking by the beach Mortgage Choice Dee Why has been serving the local community since 1999, helping clients navigate the mortgage landscape. MPA talks to franchise owner James Algar to learn more about the brokerage’s plans for 2020 and beyond

FOR OVER 20 years, Mortgage Choice Dee Why has been providing prospective homeowners in the Northern Beaches with the services they need to secure the home of their dreams. Originally founded by Brad Anderson, it was first operated out of his home office until the business expanded to the point of requiring its own premises.

James Algar is a more recent arrival, originally hailing from the UK, but since joining the brokerage in 2014 he’s firmly established himself as essential to its day-to-day operations. He’s no greenhorn either, having worked for around 14 years in the broking industry, in addition to his experience in the banking world.

“We primarily deal with owner-occupiers,” says Algar. “But as you might imagine, there’s considerable diversity in that sector.”

Algar himself has earned a reputation for working particularly closely with selfemployed business owners, helping them buy homes when the banks are unable or unwilling to assist.

“Originally my background was in banking in the UK,” he says. “Things run a bit

Shifting with the industry During his time in the field, Algar notes that technology has been drastically overhauled

“Now [the broker is] viewed more as a professional advice point, rather than simply as someone who can cut a customer a better deal” James Algar, Mortgage Choice Dee Why differently over there, but it’s still given me an understanding of the inner workings of the system. I also realised that if you were a good

THE BENEFITS OF NOT ADVERTISING The vast majority of Mortgage Choice Dee Why’s new clients come via referral, explains owner James Algar. At present, the brokerage doesn’t spend on advertising at all, choosing to reinvest into the business itself.

“We’d rather look at ways to spend that will better serve our existing clients,” says Algar.

He is quick to point out that this approach isn’t a universal fit, of course, and acknowledges that the business has numerous advantages in its favour.

“We’re part of a nationally recognised organisation, and we’re well known in the local community,” says Algar. “We’re also based in an area where demand still far outstrips supply, which gives us a bit of an edge.”

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loan writer, you were better off as a broker – it’s an easier way to help more people than you can within the normal bank system.”

for the better, enabling easier communication, faster approvals and better service.

“Mortgage Choice rolled out a new broker origination platform in 2018, which has been a game changer for our business,” says Algar.

“The broker platform has increased our productivity and improved the customer experience significantly, which will be even more important as we prepare for a best interests duty.”

Algar believes that, in conjunction with these changes, the general public’s perception of mortgage brokers has improved overall, in no small part due to people having a better understanding of the broker’s role in the mortgage process.

“It’s a good thing to see,” says Algar.

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13/01/2020 9:39:43 AM

From left: James Algar and Brad Anderson of Mortgage Choice Dee Why

FAST FACTS Company: Mortgage Choice Dee Why Founder: Brad Anderson Location: Dee Why, NSW Year founded: 1999 Services offered: Home loans, asset finance, financial planning and investment properties Number of employees: 4 Awards: National High Flyers awards for 2016, 2017 and 2018

“I think that now we’re viewed more as a professional advice point, rather than simply as someone who can cut a customer a better deal.”

The increased complexity introduced into the loan process by lenders has also contributed to this shifting perception, Algar notes. Product offerings are more multi­faceted

Emerging risks and future plans This is not to say there aren’t challenges ahead, of course. Algar sees two main risks as the industry moves into 2020: increased regulation and the broader economy.

“We always want to make sure we’re doing the right thing by the customer,” says Algar.

“But we don’t want to be in a nanny-state

“The more complicated lenders are making it, the easier it is for brokers to capitalise” James Algar, Mortgage Choice Dee Why – partially due to newer consumer protections as well as more tailored options – which makes navigating the landscape a more daunting process for the average Australian.

“The more complicated lenders are making it, the easier it is for brokers to capitalise,” Algar says. “In many ways, we’ve come to replace some of the functions that used to be handled by the retail arm of the banks.”

situation either. A lot of smaller brokers have concerns about whether they’ll be able to continue operating on their own if prohibitive legislation is introduced.”

The discussion around trail commission has heavily dominated much of the public conversation, particularly in the wake of the royal commission’s report last year. Yet for Algar it’s an issue that could be relatively easily

solved with better broker behaviour. Having an ongoing servicing and maintenance plan for clients is essential.

“Loans – especially home loans – aren’t usually one-and-done affairs,” says Algar.

“That’s why you have trail in place, because you can and should be servicing them in subsequent years. How often are you talking to those clients? You should be touching base to see if they’re happy, and you never know what other opportunities are going to come out of it either.”

The health of the broader economy also has a flow-on effect, but Algar remains optimistic about the future prospects of Mortgage Choice Dee Why. Plans are very much in place to continue to grow the brokerage’s market share, and to continue to innovate to attract new brokers.

“We’ve set ourselves a goal in terms of what we’d like to be settling, but with sustainability in mind,” says Algar. “We don’t want to lose touch with our existing clients, and we always want to make sure that we’re acting in their best interests.”

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13/01/2020 9:42:54 AM

PEOPLE

OTHER LIFE

TELL US WHAT YOU GET UP TO Email rebecca.pike@keymedia.com

“It’s about having some fun, spending time with friends and chasing that feeling I got as kid. I also ride with clients, and it’s not a bad place to do business”

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Age at which Stevenson got his first dirt bike

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Years the Finke Desert Race has been running

452km

Total distance riders take on at the race

HITTING DIRT Bell Partners Finance managing director Mark Stevenson gets away from it all on his dirt bike WHEN MARK STEVENSON got his first dirt bike, a 1984 Suzuki RM50, it was “love at first sight”, he says.

He and his family were at his uncle’s place in Sydney for Christmas and he would sit on the bike every day, daydreaming, until they went home after New Year.

“Back then as a kid, I loved the freedom and independence of being able to explore and go on adventures around our property,” Stevenson says. “Once I was on my bike, everything else left my head and I would totally be in the moment.”

Today, the Bell Partners MD rides his bike to explore Australia’s amazing bushlands, including the extremely remote and rugged areas many people are unable to access, and competes in the annual Finke Desert Race.

For the last three years, he has been one of the finishers of the challenging off-road race that runs from Alice Springs to the remote Aputula (Finke) community.

The Finke Desert Race happens over the long weekend in June and attracts more than 650 motorbikes and 150 cars and buggies.

With its track running loosely along the same route as the original Ghan railway line, the race presents its finishers with a replica of an iron nail or a spike.

“Once the red desert dust gets in your veins, it’s hard to stop. I may head back for round four next year,” Stevenson says.

Before getting back into dirt-bike riding about five years ago, Stevenson raced motorcycles at club level for around six years and managed to fill up a decent-sized cabinet with trophies.

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© We

13/01/2020 10:49:47 AM

Helping Brokers open doors.

Westpac is listening to what Brokers need and are making changes to help you open more doors. Visit us online to check out our initiatives for Brokers or talk to a BDM.

Westpac Brokers

Š Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.

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WBF19/WBG098

13/01/2020 10:50:00 AM

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14/01/2020 7:46:49 AM