This article was originally published on Australian Broker on 21 June 2022. To read the full article, click here.

Uncertainty is aplenty amongst homeowners and prospective borrowers alike, as interest rates rose for the first time in over a decade at the beginning of May. With rising interest rates and an inflation rate sitting at 5.1% in the March 2022 quarter, household budgets across the country are feeling the pinch. This places mortgage brokers in a position they would have rarely faced in recent years: they’ll be supporting clients who have never experienced rate rises.

According to YBR Home Loans Chief Recruitment Officer, Boban Jurisic, mortgage brokers are poised to play a crucial role over the coming months, by guiding Australian households through the uncertainty of increased mortgage repayments, a higher annual cost of living, and a property market that will likely face some downward pressures.

Despite the stressors homeowners are likely to be handling, Mr Jurisic says that mortgage brokers are more than well equipped to meet the increased demand for brokers. In fact, he firmly believes that “there has never been a more exciting time to be a mortgage broker”, which is part of the reason YBR Group is currently recruiting brokers and franchise owners, faster than ever before.

He said, “We know that broker-originated settlements for residential home loans are at record highs. I’ve been in this industry for over 20 years, and to see the number of settlements originated through mortgage brokers continue to rise and rise is vindication for all of the fantastic work done to protect the status of mortgage brokers in recent years.”

“Australians all fundamentally want a fair go and that’s exactly what mortgage brokers do every day, they help everyday Australians apply for loans that are fair, transparent, and in the customer’s best interests.”

“With interest rates rising across the country, I know mortgage brokers are going to be critical to Australian households. Before we saw the cash rate increase, mortgage brokers were already in demand, and rightly so, because Australian consumers deserve to have an expert in their corner, helping any borrower through their journey of finding the right home loan product for that particular borrower.”

“Many Australian homeowners will likely be experiencing their first-ever rate rise, and while that may be stressful for some, brokers know that their clients have been stress tested when they applied for their home loan originally, and they also know how to shop around for a better deal for their clients.”

“So I honestly believe the industry, generally, is poised to play a major role in the coming months, because people are going to need guidance from experienced, trustworthy advisers. That’s why I believe there’s never been a more exciting moment to join the broker community because the value of being a mortgage broker is undeniable. From the benefits of working for yourself, to spending your days helping people achieve their financial goals, to being a crucial cog in Australia’s economy and to the Australian people, it’s a career path you can be proud to work in.”

YBR Home Loans driving broker recruitment

Mr Jurisic claims that brokers have consistently been the “go-to, trusted adviser” for borrowers over many years, adding, “the incredible numbers we’re now seeing is proof of that.”

“Everyday you’re building relationships with clients and families and helping them through the life changing journey of trying to close a deal for their dream home. You’re a trusted and reliable source of information for your clients. Simultaneously, you’re setting up and running a successful business and you experience all of the benefits that go along with being your own boss.”

“When you couple the personal rewards of being a broker with the current lending environment, the argument to make the move into a broking career just compounds. Lenders and banks are inundated with applications and turnaround times have been a major issue over recent months, but we’re seeing lenders struggling to meet the demands of large portions of borrowers. What I’m seeing in my recruitment drive for YBR Home Loans, is that those who are working directly for lenders want to take on the challenge of running the show and not just showing up for their wage each week.”

Take a Broker’s word for it

Branch principal of YBR Home Loans Sydney, Rogan Yates, has been in the broking industry for over 20 years. He says that the growth in the broker industry can be tied to a few factors, but “undoubtedly the main contributor to why more Australians are engaging mortgage brokers is choice.”

“If you’re shopping around for a home loan and you decide to talk to one bank instead of an experienced mortgage broker who can provide you with multiple loan options from various lenders, then you’re simply not putting your best foot forward,” said Mr Yates.

“When it comes to getting the best deal for your circumstances, you should never rely on one lender. I can’t tell you how many times I’ve spoken with a new client who had their application rejected by a bank, only for me to turn around and give them three of four viable home loan options. I’m able to work with them and guide them through the whole process to provide them solutions, not headaches.”

Mr Yates pointed out that the value offered by brokers to consumers continues well beyond settling the loan. He said, “Particularly now, with rates rising and mortgage repayments increasing, mortgage brokers need to be there for our clients, providing strategies to help them manage their budget, to shop around for better deals and to make sure they have the support they need.”

“It’s something I love about my role. I wake up every day knowing that I get to help families and clients find solutions to their financial goals, without having to charge them a cent.”

This was reiterated by one of YBR Home Loans’ most recent franchise owners, Dion Villiers. After 31 years working with Westpac in senior positions, Mr Villiers and business partner Mel Falanga, opened the doors to their YBR Home Loans franchise in Leppington, Sydney, just last year.

Mr Villiers said the ability to lean on a broad range of mortgage products to support customers was a key factor in making the career transition: “When it comes to our day-to-day work, the greatest benefit to me personally has been the variety and choice we can provide our customers in finding the right home loan for them.

“Obviously, when you work for a lender, you’re only able to offer one suite of products with one lending policy. There are so many customers that I couldn’t help in previous roles that, thanks to the wide lending panel YBR has, we can help today. Now, I find it really difficult to say no to a customer because there is always a solution for them.”

Mr Villiers was keen to highlight that mortgage brokers need a diverse skill set, but the ability to utilise those skills every day is a reward you struggle to find in other areas. “For example, when you’re working in a bank, you can become quite siloed…you’re either a home loan writer, a business banker, or a commercial teller,” said Mr Villiers.

“As a mortgage broker, I can branch out. Right now I’m doing land subdivisions, helping customers turn land into building sites. So we’re supporting developers, and then we’re supporting borrowers with their first home loans to build their dream home on the same block of land. It’s really exciting to be a part of.”

Advice for professionals considering a career change

When asked what advice he would give to anyone thinking about making the move to mortgage broking, Mr Villiers said, ”as long as you’ve got a group of customers, you’re confident that you can get a volume of customers in the door, broking is an amazing place.”

“Once you get a few customers in, they will refer more customers. One thing I can’t believe is the number of customers that refer people like family and friends to a broker. I used to be in charge of all the home loan lenders in Westpac and I can tell you the referral volume and repeat business, it wasn’t as high as what I’m seeing over here as a broker. It’s just crazy.”

“Just recently I settled a loan for one customer, I’ve since had four family members come to our branch applying for home loans. That’s four referrals from writing just one loan with one customer. It just snowballs. And we haven’t had to market at all. We had to stop making phone calls originally because we didn’t have the time to handle the volume.”

Mr Jurisic said that the success of Mr Villier’s is just one example of how the experience from one area of the financial industry can be applied to mortgage broking.

“Many of the conversations I’m having day to day in my recruitment drive are with current bankers or financial services professionals who have some experience in the residential or commercial loan market,” said Mr Jurisic. “That’s because people are recognising the crucial role mortgage brokers play in society and the rewards that can come from a successful career as a broker.”

Time will tell just how significant a role brokers will continue to play in Australia’s economic landscape, however many, including Mr Jurisic, believe that broker originated settlements will continue to rise.

To start a conversation with Mr Jurisic, send him an email at boban.jurisic@ybr.com.au