For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Home Loan

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Aussies say taking out a home loan is a process shrouded in mystery for many first home buyers, and 71% would like more help choosing a loan, according to the latest research by mortgage broker Mortgage Choice. An independent survey conducted by CoreData on behalf of Mortgage Choice, found that across all the stages of a buying a home, applying for a loan is the aspect where first home buyers (49%) are most likely to need the support of others.

One in two (57%) first home buyers report being ‘highly’ or ‘reasonably’ confident that they understand the home loan features best suited to their needs, however one in three (32%) have ‘minimal’ confidence. However more than one in ten (11%) have no confidence at all in their ability to distinguish which home loan is right for them. 

The top five challenges first home buyers identified in securing a home loan include:

<ol>
<li>47% Understanding how the whole process works</li>
	<li>46% Making sure they are getting the best deal possible</li>
	<li>45% Making sure they qualify for the loan amount and property they want to buy</li>
	<li>41% Establishing what they can afford to comfortably pay back</li>
	<li>37% Understanding what (if any) government support they qualify for.</li>
</ol>
Unsurprisingly, 71% of first home buyers say they wish they had more support to make decisions around choosing their first home loan. Among these first homeowners, 39% rank ‘someone to help guide me through’ as the top source of support they wish they had, 26% just want someone to help build their knowledge and confidence.

“Home loan interest rates are at historic lows, which is great news for first home buyers. But the research suggests that the biggest challenge many first home buyers face right now, is not financial – rather it’s uncertainty about how the buying process works," Susan Mitchell, CEO of Mortgage Choice, said.

When it comes to seeking support, the survey found one in two (50%) first home buyers rely on family, friends and work colleagues, 46% turn to a mortgage broker, and 36% rely on online information.
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More than one in ten first home buyers have no confidence at all in their ability to distinguish which home loan is right for them. 

urban.com.au

71% of first home buyers wish for more support choosing their home loan

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Over the month there were $32.3 billion in housing finance commitments which is 1.0 percent higher over the past month. 
Although the value of housing finance commitments increased in May 2016, they are now -4.6 percent lower than their August 2015 peak of $33.8 billion worth of commitments. 
The CoreLogic Mortgage Index, which tracks 95 percent of national valuation activity, indicates that in June 2016 the level of mortgage activity is set to slow from May, pointing to a slowing of housing finance demand.
<a href="/images/2016/07/18/Chart-1-580x210.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/18/Chart-1-580x210.jpg" alt="">
<div class="entry">
 
In May 2016 there were $20.5 billion worth of owner occupier housing finance commitments and $11.7 billion worth of investment commitments.  Owner occupier commitments fell by -0.6 percent over the month but were 15.4 percent higher year-on-year.  Conversely, investor housing finance commitments increased by 3.9 percent over the month and are -13.3 percent lower year-on-year.
<a href="/images/2016/07/18/Chart-2-1-580x210.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/18/Chart-2-1-580x210.jpg" alt="">
The $20.5 billion in housing finance commitments by owner occupiers was both lower over the month and -4.9 percent lower than the December 2016 peak of $21.6 billion worth of commitments.  Across the components of owner occupier housing finance commitments there was $1.8 billion in commitments for construction of dwellings, $1.0 billion for purchase of new dwellings, $7.0 billion for refinances of established dwellings and $10.7 billion for purchase of established dwellings. 
Each segment of owner occupier mortgage lending except for purchase of established dwellings fell over the month with each segment now also lower than the recent peak.  The respective declines are recorded at -3.8 percent for construction of dwellings, -27.0 percent for purchase of new dwellings, -5.9 percent for refinancing of established dwellings and -5.6 percent for purchase of established dwellings.
<a href="/images/2016/07/18/Chart-3-1-580x212.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/18/Chart-3-1-580x212.jpg" alt="">
There was $11.7 billion worth of investment housing finance commitments in May 2016 which is -18.2 percent lower than its $14.4 million peak in April 2015.  Looking at the components, there was $1.2 billion worth of commitments for construction of dwellings and $10.5 billion in commitments for established housing.  The value of commitments for construction of dwellings was 15.5 percent higher over the month and 22.4 percent higher year-on-year.  Meanwhile, the value of commitments for established housing was 2.7 percent higher over the month and -16.1 percent lower year-on-year. 
Since mortgage lenders began to implement investment lending changes to slow annual investment credit growth below 10% there has been a significant slowing in lending to this segment.
The May 2016 housing credit data from the Reserve Bank (RBA) shows that investment credit has advanced 6.0% which is its slowest annual increase since July 2013 and well below 10% annually.  Perhaps this is why investor lending picked up in May with mortgage lenders now having more scope to lend to investors.
<a href="/images/2016/07/18/Chart-4-1-580x214.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/18/Chart-4-1-580x214.jpg" alt="">
Looking at the value of new lending (excluding refinances) for new housing and established housing shows that in May 2016, $4.0 billion was for new housing and $21.3 billion was for existing housing.  Based on this data, 15.9 percent of total lending over the month was for new housing with the remaining 84.1 percent for established housing. 
Of this $4.0 billion in lending for new housing, $1.2 billion or 30.6 percent was lending for investment purposes with the remaining $2.8 billion or 69.4% of lending for owner occupation purposes. Of the 84.1 percent of new lending for established housing, $10.7 billion or 50.5 percent was borrowing by owner occupiers with the remaining $10.5 billion or 49.5% borrowed for investment purposes. 
The data shows that much more lending is for established housing which makes sense when you consider the flow of new housing, despite being at record highs, is only a fraction of the total housing stock.
Despite low interest rates that are anticipated to go lower over the coming months it is difficult to imagine how growth in housing finance commitments will experience a significant uplift. Investor demand may pick up a little but historically weak rental growth and record low rental yields along with a surge in new investment housing stock should limit any uplift. 
This should also contribute to a slowing in value growth in Sydney and Melbourne and although other areas may see a pick-up in mortgage demand, much lower home values in those regions will likely limit any significant pick-up in housing finance commitments.
</div>
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ckusher-ujnxiKuFQs

Investor housing finance commitments bounce in May 2016: Cameron Kusher

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GUEST OBSERVER
Businesses need to operate in rapidly changing conditions and this has many brokers wondering how do they grow – or in many cases, simply how to stay afloat in an increasingly tough industry.
Brokers can stay ahead of the curve by focusing on ten key areas.
1. Process improvement
Continually seek out opportunities to complete processes in your business faster and more efficiently. As a broker, you will obtain greater business results if you are not the only resource in your business. If you are, review the alternative options for completing key tasks, to maximise your output and 'income producing hours'. This could include how you capture your clients supporting documents, or outsourcing the file management of your loans.
It helps to set time aside each month to review business processes. Document all the tasks in the business, identify clear steps in each of the processes, and then seek out alternative ways to deliver these processes.
2. Customer feedback
"Feedback is the breakfast of champions" (Ken Blanchard) has never been more applicable than in the digital age where customers are inclined, and encouraged to share their thoughts. The best way to improve your business is to ask the person who just used your services for feedback, and then actively respond to their insights. It’s invaluable and directly feeds into process improvement.
3. Customer referrals
There are three rules when it comes to asking for referrals: ask for them, ask for them, and ask again!
There are also four key points during the customer journey that you should ask for referrals:
<ul>
<li>When you first meet or engage – ask how the customer heard about your business and let them know how import_ant client referrals are to growing your business.</li>
<li>At Conditional Approval - ask the customer if they know of anyone else who is currently seeking financing or advice that you could assist.</li>
<li>Upon Settlement - refine and personalise the question about who the client may refer i.e. do they know of anyone at their school or sporting club (whatever is applicable) who may benefit from your services.</li>
<li>When you ask customers to rate your performance.</li>
</ul>
4. Online referrals
The ‘gold standard’ of a broking business is to secure 5-7 key referral sources. Given that a large proportion of borrowers do their research online, broker businesses should now consider an online lead opportunity as part of their referral network.
5. Time expenditure
Review how you can reduce time wastage in your business and maximise your output. For example, offices are more than simply a 'cost' to a business. Numerous points of research have shown that brokers with a permanent office are more profitable than brokers who drive to meet their appointments. This makes sense as 'income producing hours' are not being spent in a car.
6. Diversified business model
A single broker, offering one product is no longer a sustainable business model. Customers are time poor and require a holistic discussion regarding their financial position. It is beneficial to have key partners within the business to assist with the full suite of client requirements, as well as align with two or more brokers in order to leverage office support and reduce broker effort on administration tasks.
7. Performance tracking
The brokerage business is mostly a numbers game. If you know your ratios and current performance, you know how many leads you need to attract in order to write your annual settlement target.
Generally, industry statistics for leads to lodgement is 60%; and lodgement to settlement is 80%. If a broker applies their average loan size, then it is possible to calculate the total loan volume forecast within a year.
8. Monthly marketing strategy revamps
Marketing is a key aspect to growing your business. Ideally you should be implementing a new initiative each month. It can help to brainstorm 10-11 ideas for the year and then select one to implement each month, starting with the initiative that provides the ‘biggest bang for your buck’.
9. Business disruption
"If you are not disrupting your own business, someone else is" (Andy Groves).
Every broker should ask themselves whether they think they or their business is changing at a faster pace than their customers, or whether their customers are moving and changing at a faster rate than their business.
Implement an 'ideas jam' to see how you can disrupt your own business to continually improve and change. Even small steps can make a huge difference.
10. Work-life balance
Running your own business is challenging and will stretch the best of us, but it is important to keep balance and enjoy the opportunity. Success is the journey, not the destination.
Siobhan Hayden, is chief operating officer of HashChing and can be contacted <a href="https://www.hashching.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

10 things mortgage brokers should focus on to maximise returns: Siobhan Hayden

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The Commonwealth Bank is the latest lender to lift interest rates for homebuyers looking to fix their home loan.
The country’s biggest lender lifted the rate of its popular 3-year fixed rate by 0.20 percentage points to 4.24 percent on Friday.
It also lifted its longer-term 5-year fixed rate by 0.60 percentage points to 4.74 percent.
CBA was the second major bank in a fortnight to lift fixed rates following Westpac.
A RateCity.com.au analysis shows that a further 20 lenders have lifted rates 268 fixed products since November 1.  
Peter Arnold, data insights director at RateCity.com.au said fixed rates are based on market expectations of future rates and "are the best indicator that we’ve got that a variable rate hike on the way.".
“Previously, banks were betting on lower rates in the future but we’re seeing those expectations change by the day.
"Shorter-term fixed rates are still sitting below variable rates, which tells us rates will stay steady when the RBA meets on Tuesday.  
“But longer-term fixed rates, such as 5 years fixed, are sitting higher than variable rates and rising by the biggest margins, which tells us that they don’t expect low rates will last forever.”
But he added it’s always a gamble when deciding whether or not to fix your home loan.
<a href="https://www.propertyobserver.com.au/images/2016/12/05/Screen%20Shot%202016-12-05%20at%208.17.48%20AM.png" target="_blank">Click to enlarge</a>
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"Our research shows that over the past 20 years, people who stuck with variable rates came out ahead 63 percent of the time,” he said.
“People often fix in panic, for instance in the lead up to the GFC fixing became progressively more popular as rates increased to the point where one quarter of new loans were fixed at over 9 percent in March 2008.
“There are now 240, 3-year fixed rates under 4 per cent and you can even lock in a rate as low as 3.8 percent until Christmas 2021.
"So if you’re someone who prefers the certainty of knowing your repayments, then now might not be the worst time to consider fixing.”
According to Canstar, in monthly repayment terms, CBA’s rate increase will mean a rise of more than $355 for a borrower with a 30-year fixed loan paying the new rate of 4.74 percent.
It was a time of growing uncertainty in the lending market, reflected last week when Australian Broker reported on the growing gap between the most expensive and the most affordable loan rates for residential property has widened to nearly 240 basis points.
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Commonwealth Bank lifts fixed rates

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Australians have forked out an estimated $47.6 billion in ‘lazy tax’ over the past 10 years by keeping their mortgage with the Big Four banks rather than switching to one of the lowest rates in the market. 
That’s an estimated $14,215 for a borrower with the typical $300,000 mortgage, or $23,692 for borrowers with a $500,000 loan.
Sally Tindall, money editor at <a href="https://www.ratecity.com.au/home-loans" target="_blank">RateCity.com.au</a>, said borrowers shouldn’t set and forget about their home loans.
“Australians, traditionally, haven’t been big switchers but when they do, they are saving thousands of dollars,” she said. 
“It’s not difficult to find an interest rate starting with a three, and it’s not uncommon to find rates starting with five, so the variation between rates is huge in dollar terms.
“People need to start thinking about the rate they are paying and factoring that into their bottom line when they take out a loan.”
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Switching makes dollars and sense: Ratecity

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Mortgage Choice Limited has shut down its Help Me Choose business unit five years after its purchase of one of Australia’s leading websites for home loan leads sold to mortgage brokers.
The comparison website was bought to generates tens of thousands of home loan leads annually from potential home loan customers.
The then Mortgage Choice CEO Michael Russell said the purchase marked an exciting strategic investment for the company "given that over 70% of our home loan leads are currently sourced online.”
HelpMeChoose.com.au featured when Mortgage Choice presented its FY15 financial results in August .
The new chief executive officer John Flavell made it clear that Help Me Choose’s financial result needed addressing.
“The less than favourable financial result of the Help Me Choose business prompted a comprehensive review of the operation and a decision has been made to close it down in its current form,” John Flavell said yesterday. 
“Continuing to invest in a business that is unlikely to be profitable in the foreseeable future does not make sense.”
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Mortgage Choice decides to close Help Me Choose‏

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A Melbourne man has pleaded guilty to one charge of conspiring to defraud financial institutions following his role in an attempt to create and use of false documents to support loan applications valued at approximately $110 million.
The charge follows an ASIC investigation into Footscray-based finance broking company, Myra Home Loan Pty Ltd, trading as Myra Financial Services (no longer trading) (Myra).
Aizaz Hassan pleaded guilty the Melbourne Magistrates' Court on 9 September following his <a href="/expert-insights/finance/arrests-follows-after-12-lenders-caught-in-alleged-110-million-myra-home-loans-fraud">arrest and charge in January</a>.
He is currently on bail and will appear at the County Court at Melbourne on 14 October.
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Melbourne man pleads guilty for role in multi-million dollar home loan fraud conspiracy

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The Commonwealth Bank has surprised the market in lowering its home loan assessment rate.
The interest rate used to work out whether a customer can service the debt of the home loan if rates rise was 7.4%; but now that rate is 7.25%, according to Sophie Elsworth, the News Ltd personal finance writer.
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The analysis from mortgage broking firm homeloanexperts.com.au showed the drop to assessment rates applied to owner occupiers and investors.
However CBA has recently tightened other serviceability requirements including only allowing maximum loan-to-value borrowings of 95% for owner occupiers. 
It had previously allowed borrowings of up to 97% including the cost of mortgage insurance.
<div>All home loan lenders assess a loan application using their own mortgage assessment rate, which is a buffer they add into the interest rate.</div>
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<div>Both the lender and the borrower can have confidence that the loan repayments can be made without undue hardship.</div>
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<div>The mortgage assessment rate varies between each lender, though typically from 1.0% to 2.5% above the variable rate.
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<div>This allows the lender to assess the borrower's ability to repay the loan, should the Reserve Bank cash rate rise during the term of the loan.</div>
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CBA lowers its home loan assessment rate

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Despite the cash rate cutting to a historic low this month, research from finder.com.au reveals that around 43% of home loan providers have failed to pass on the full 25 percentage points to borrowers, meaning many Australians are being left with a sting. One option to combat this is by choosing a home loan with a 100% offset account as a way to continually save on the interest.
If your lender won’t pass on the full cut, comparing your home loan options and beating the banks with an offset account could be your most powerful plays.
 finder.com.au’s 3 lowest variable rates that allow for a 100% offset account:
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loans.com.au Dream Home Loan Offset Variable: 4.02%
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This competitive rate is available to those who have saved a deposit of at least 10% of the property value and aren’t afraid of $520 worth of startup fees (a $300 settlement fee paired with a $220 valuation fee). You’ll have access to a loan that allows splits, extra repayments and redraws, and is portable, too.
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State Custodians Standard Variable Offset: 4.09%
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This home loan comes with a $299 annual fee price tag, which will be paired with valuation fee of $275 in your first year. This may be a small upfront price to pay for what is one of the lowest rates in the market – meaning an ongoing savings. It’s up to you to factor in the long and short term commitments to the rest of your financial situation
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BankWest Super Start: 4.17%
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This rate is a discount off their standard variable rate (which is 5.47%) and is effective for 3 years. In return for this low rate you’ll have to pay some substantive fees, such as a $695 application fee (waived if you apply through finder.com.au), $300 company fee and $350 portability fee. Locking in a discounted variable rate for 3 years is a crucial strategic consideration, but that doesn’t mean you should overlook the significant fees you’ll be forking out for.
 finder.com.au’s 3 lowest 3-year fixed rates that allow for a 100% offset account:
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Bank of Queensland Fixed Rate: 3.99%
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This low rate is available through a limited-time discount for new borrowers who have a deposit of at least 20% of the property value. While you’ll have access to a 100% offset account and extra repayment options, the fees associated with this loan total $570 in the first year, made up of an annual service fee of $120, $300 application fee and $150 exit fee.
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Greater Building Society Ultimate: 4.29%
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For the low rate, this loan also has some flexibility-adding features such as additional repayment, redraw facilities and split options. That being said, you’ll be expected to fork out $375 as an ongoing annual service fee, which could especially sting when combined with the once-off settlement fee of $180.
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Commonwealth Bank Fixed Rate Wealth Package: 4.69%
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The wealth package is made to accommodate for exactly that – those who can afford a few fees and expenses for a lower rate in return. With a $600 application fee and $375 annual fee, you’ll spend just short of $1000 in additional expenses in your first year of the loan. With that in mind, being allowed unlimited additional repayments could be a means to minimise interest charges, which may offset those initial expenses. All in all, this loan is a portable, flexible account for people that can manage their money enough to offset the expenses that come with this product.
MICHELLE HUTCHISON is spokesperson for comparison website <a href="https://finder.com.au/" target="_blank">finder.com.au</a>.
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