Broker Spotlight: John Martin, All About Financial Services

John Martin, a broker with more than two decades' experience, understands the industry inside out, and around ten years ago, he could see a change emerging. DIY superannuation was on the rise, along with an appetite to buy property within the SMSF structure.

As a result, his clients were often looking for more than a loan - they needed advice on their superannuation and wealth. John forged a referral relationship with a local financial planner, however, this year he wanted to evolve beyond referrals, and generate revenue through wealth as well.

Now, John has a dedicated YBR head office planner he can refer his clients to with confidence, as well as receive an additional, structured revenue stream using his existing client base. This will help future-proof the business against any potential slowdown in the lending market, leveraging its cashflow and client relationships.

The relationship is complementary, with YBR's Nash Maktumi able to provide full, licensed advice on SMSF strategies, insurance and other wealth issues. John continues to provide the broking services he's well-known for and retains all his relationships - and loans - with clients.

"It works because we are both 100% focused on the same goal: to make people wealthier," John said.

He says offering a full service creates value for both his clients and his business.

"You really need to put people around you that you trust and that complement you - someone you can genuinely recommend. It makes people feel special, because they feel like they have the A-team working for them.

"You have to have a strong network; if you don't have that, then you don't have a business," he said.

Taking on a new loan is an obvious trigger for brokers to start a broader wealth conversation, says John.

"I don't know why some brokers are scared to speak to their clients about insurance or wealth. It's all about asking the right questions," he said.

If you're interested in diversifying your revenue streams through wealth, YBR can help.

Contact Cosimo Vallelonga to discuss your needs.

Ph 0402 895 072 or 02 8226 8275

Email: Cosimo.vallelonga@ybr.com.au

To fix or not to fix?

Fixed rate loans have been in the headlines recently - for example, a survey by Gateway Credit Union suggests this is the most popular approach right now, and that Australians want even longer fixed terms, of 10 years and upwards.

It's easy to see why this is on the agenda. Out-of-cycle rate rises from lenders, plus the prospect of a bank levy driving up rates, are making some people nervous.

But we also need to take these surveys with a grain of salt. The data looks at sentiment, not actions, and likely doesn't reflect people's limited understanding of fixed rate loans.

People who respond to these questions may not understand, for example, that a 5-year fixed rate can be a potential time-bomb for break costs - and according to the survey, this was the most popular term. In reality, over the past few years, fixed rate loans have peaked at around 20% of new lending, with the longer term average being below 15%.

That said, customers are still interested in looking at their options, and this is a good reason to have a refinancing discussion, and a chance to show your value. Knowing your customer and their short- to medium-term goals and objectives should dictate if fixed is in or out of the picture.

If it is the right option, our Group Lending team have some flexible fixed rate solutions with redraw and offset accounts available.

Andrew Parsons

Head of Vow Group Lending Product

Interest Only & Serviceability Changes

Pricing changes have been made to ensure the Bank complies with our business and regulatory guidelines and applies to Teachers Mutual Bank , UniBank and Firefighters Mutual Bank.

Fixed rates with Interest Only repayments, for all terms, will be increasing by 40bps (0.40%p.a) effective Tuesday 30 May 2017.

Please note that P & I fixed rate loans remain unchanged.

A revised calculator is also attached that reflects these changes. The calculator will also be available on our portal.

Policy changes have been made to ensure the Bank complies with our business and regulatory guidelines and applies to Teachers Mutual Bank , UniBank and Firefighters Mutual Bank.

The changes involve amendments to the current lending policy for all loans with interest only repayments across both fixed and variable rate products, applicable to both owner occupiers and investors effective Tuesday 30 May 2017.