+ ANALYSISHOUSE CALLSBrokers are divided on where to visit clientsP10
REVERSAL OF FORTUNEAre reverse mortgages the answer for older borrowers?P12
+ PEOPLEMETEORIC RISEA top broker cracks a major milestoneP28
POST APPROVED PP255003/06906 JUNE 2013 ISSUE 10.12$4.95
The Pepper COO explains how the lender is finding niches the big banks abandoned
A few years ago, Pepper Home Loans was practically synonymous with low-docs. The lender has made a name for itself helping self-employed or credit impaired borrowers to secure home finance. A few years ago, of course, low-docs were something entirely different.
But now, Pepper COO David Holmes believes specialist lending has changed. And specialist borrowers may be a larger market segment than many brokers believe.
FULL STORY PAGE 14
+ TOOLBOXHEAD IN THE CLOUDSWhy emerging technology is vital for your businessP18
+ NEWSA look at whats been making headlinesP4
+ WORKSHOPSOCIAL SUCCESSSix tips to make social media work for youP20
FIXING STILL IN FASHIONRate cuts havent stopped borrowers hedging their bets
AUSSIES LOOK TO INVESTMore than one-quarter of Australians are looking to buy an investment property.
Q. Are you considering buying either your first or another investment property?
Source: Mortgage Choice
Source: Mortgage Choice
WHAT THEY SAID...
BRENTON HARRIS The worst problem with reverse mortgages is the misuse of funds P12
STEPHEN MOORE Its very difficult to break through
the clutter in the marketplace unless you have a strong
brand behind you P27
MARK DAVISIf a client thinks youre important enough, they come see you P28
MARK BOURISThe average couple will need a million dollars to
retire comfortably, and most people simply arent going to
get there P4FAST FACT
17.9%The year-on-year growth for owner-occupier housing finance in AprilSource: ABS
50%The proportion of Australians estimated to have lost superannuation funds
National May-2013 April 2013 6 month average12 month average
Variable Rate 69.90% 71.96% 76.57% 78.54% Basic Variable 12.92% 13.06% 15.81% 17.43% Standard Variable 13.02% 13.97% 15.97% 16.65% Ongoing Discount 37.94% 37.94% 39.55% 39.92% Line Of Credit 2.57% 3.17% 2.85% 3.04% Introductory Rate 3.46% 3.82% 2.38% 1.49% Fixed Rate 30.10% 28.04% 23.43% 21.46%
EDITOR Adam Smith
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Big bank satisfaction rate lowest among home loan customers
Dramatic regional disparity in property market confidence
Consumers satisfaction with the majors remained unchanged on a 17-year high of 78.9% in April, but home loan customers remain much less satisfied, with an average of just 75.3% (compared to non-home loan customers with 79.9% satisfaction), according to Roy Morgan Research Consumer Banking in Australia Customer Satisfaction Report for April 2013.
In April, CBA continued to lead the majors in customer satisfaction overall with 80.5% (up 0.1 points from March), followed by NAB (79.3%, no change), ANZ (77.6%, up 0.3 points) and Westpac (76.7%, down 0.4 points).
37% of Australians over the age of 65 will suffer abuse, with financial abuse the fastest growing type
DID YOU KNOW?
BIG BANK HOME LOAN CUSTOMER SATISFACTION RATES
Source: Roy Morgan
Fifty per cent of Australians believe house prices will increase over the coming months and 41% believe they will rise in the next six months specifically but there are massive disparities between states, according to the RP Data Nine Rewards consumer sentiment survey.
RP Data researcher, Tim Lawless, says the survey found a substantial upward shift in overall consumer expectations for housing market conditions.
But this was largely led by high expectations in concentrated regional markets.
Weve seen distinctive differences from region-to-region where, as an example, 59% of respondents in Perth expected values to rise over the next six months, and 56% of respondents located in Sydney expect values to rise over the next half year.
In contrast, says Lawless, survey participants in Tasmania delivered a much more sedate reaction with no local respondents expecting values to rise over the next six months.
MARK BOURIS LAUNCHES SUPERANNUATION PRODUCT
YBR founder, Mark Bouris, has launched a new superannuation fund dubbed RetireRight saying he believes most Aussies are failing to take control of their superannuation due to a lack of understanding of how the system works.
Australians have two big financial goals in life: to own their own home and to retire comfortably. For Australians who are working hard today whilst raising a family and paying off their mortgage, retirement seems like a long way off. The average couple will need a million dollars to retire comfortably, and most people simply arent going to get there.
March 2013 April 2013
THE STRANGER SIDE OF NEWS
DROP TAX OR WELL DROP TROU Some Italian businessmen have found a pretty creative way to protest what they believe to be unfair taxation: they dropped their pants. The business lobby, Cobas Imprese, is demanding the abolition of Equitalia, an agency that collects back-taxes and fines. They say the agency has made the countrys economic crisis worse by over-taxing already indebted owners of failing businesses. A group of five businessmen from the group appeared outside parliament, sans pants, demanding a referendum to abolish the agency. Were not sure what the connection might be between taxation and pantslessness. Maybe it was just hot outside. HOW DARE YOU! Brokers here or there may have gotten indignant when their settlement figures had been mis-reported, but very few have taken the aggressive action of one of the worlds richest men. Forbes recently released its list of the worlds richest people, but the list wasnt pleasing to everyone. Saudi billionaire Prince Alwaleed bin Talal is now suing the magazine for libel, alleging that Forbes valuation of his net worth at $20bn was off by $9.6bn. Being obscenely wealthy is one thing. Getting indignant because your obscene wealth is slightly more obscene than reported is quite another.
If your client is over the age of 50 and their main asset is a house, good luck finding them a loan that ASIC deems suitable, says broker Graham Couper-Smith, co-author of Pay Off Your Mortgage Fast.
If you are 25, nothing is stopping you from taking 23 years off and travelling around the world and not earning anything Thats your choice and you sell the house before you go if you have to. Why is it, he asks, that if youre over 50 that becomes ASICs decision?
While he says he understands that its ASICs role to ensure
Age discrimination in broking has ASIC got it wrong?
BROKING ICON TAKES FLAVELLS PLACE
NAB has announced that Advantedge general manager, Steve Kane, will take John Flavells place as general manager, NAB Broker Distribution.
Anthony Waldron, the major banks executive general manager, Growth Partnerships, says Kane was selected due to his extensive experience in the industry.
Steve has more than 30 years experience in financial services and is a long-standing industry professional who will continue our work to cement NAB as the preferred lender for brokers. [He] is highly experienced in the t