Tightening lender appetites, the falling house prices and the changing regulation were not the most challenging aspects of the last 18 months. For many brokers, it was the emotional side of worrying about the future of their businesses.
“There was this thing called the royal commission. Emotionally, it was a bit of a scare,” says director of The Financiers Group, Chris Huynh.
But it did not stop the industry from doing its job and in Huynh’s case it made it gave him the opportunity to reassess the business. “It made us review and put a lot of things in perspective,” he says.
Launching in 2015, from day one the brokerage focused on putting down solid processes. Combined with a great team of brokers and admin staff, the group was prepared to withstand the obstacles the industry has faced.
Still focusing mostly on residential loans, The Financiers Group has not had to diversify too much into commercial, however it has broadened its customer base. While Huynh says the banks’ changing goalposts have been difficult, he and the team were prepared for challenges like tightening of credit.
“Way before it became a thing with living expenses we really drilled down on this,” he says. “Bank statements we have been grabbing for years now. In terms of documents and managing clients’ expectations we have always been prepared for tightening of credit.”
Total loan book: $338,500,000
Total settlements 1 March 2018 – 28 February 2019: $165,000,000
Number of loan writers: 6
Avg. annual volume per broker: $27,500,000
Conversion rate: 95%