Helping investors refinance their property portfolios
Mortgage brokers are in a great position to assist property investors in refinancing their portfolios as more investors return to the market and rising interest rates prompt them to examine their finances
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INVESTORS ARE flocking back to the property market, providing plenty of opportunities for brokers working in this area.
During the past two years of COVID-19, the booming real estate market was skewed more toward owner-occupiers and first-home buyers. Property investors were missing in action but are now back in a big way, with the latest ABS Lending Indicators showing that new loan commitments for investor housing rose 2.9% to a record high of $11.7bn in March 2022.
Just as they have done with the many homeowners who took advantage of record-low interest rates to refinance their home loans, brokers can help investors get ahead of further interest rises by refinancing their property portfolios.
George Srbinovski, head of distribution at ubank, and Troy Fedder,
Loan products, rising interest rates
Interest rates are rising, and this could encourage property investors to consider refinancing their loan portfolios.
“Rate increases are always a prompt to customers to review their circumstances and lending arrangements, and I think it’s likely we’ll see property investors looking to refinance over the coming period,” Fedder says.
“We see this as a positive given our strong offerings, such as our Life of Loan package fee waivers, cashback incentives, and rewards for customers who have or plan to have solar panels installed on their investment property.”
Suncorp Bank has recently been recognised as a lender offering outstanding value for investors, Fedder says. This is a testament not only to its competitive rates and fees but also to the features available to investors across its product suite.
Fedder says Suncorp Bank knows that broker-BDM relationships are key to supporting and educating its broker network. The team at Suncorp highlights new products, processes, and services, and its BDMs are always ready to follow up on that information by meeting with brokers, in person or virtually, to workshop scenarios and provide tailored advice.
“Our residential BDMs are also happily getting out to more events and sharing their expertise in professional development-day presentations that broker audiences really benefit from,” says Fedder.
“Our small-to-medium-enterprise BDMs have put together some great webinars and articles to support brokers with clients who fall under commercial lending available on our broker portal for CPD points.”
Referral partners
So, what are the best referral partners for brokers dealing with property investor clients?
Given that almost 70% of home loans are written via brokers, Srbinovski points out that they are already great at talking to their customers and helping them navigate the complex world of home loans.
“Property investors are no different, as they need guidance from brokers who know investment lending and understand banks’ products and policies,” he says.
“With this expertise in hand, brokers can speak with new referral partners such as accountants, real estate agents, and the increasingly popular segment of buyers’ advocates to help grow their business.”
Mar-04
Growth in value of external refinancing in Australia*
Srbinovski says ubank’s app is built for everyone and is particularly helpful for property investors.
“They’re able to connect multiple accounts within the app, allowing investors to see things they normally wouldn’t with other lenders,” he says.
“For example, our universal search feature allows investors to search through all their connected accounts for their expenses and helps them see income received from their agency, too.”
In terms of supporting investors who want to refinance, Srbinovski says ubank is always looking for ways to stay sharp on interest rates and make the process of refinancing as easy as possible.
For investors with multiple property portfolios, a pain point is having to consolidate all their paperwork in order to file it with a lender, he adds.
“At ubank, however, our home loan application process is completely paperless, whether you’re applying for a new loan or refinancing. This makes it a really strong selling point for property investors, reducing the overall time spent on the refinancing process.”
Broker conversations with clients
Brokers are doing a wonderful job of proactively reaching out to their customer base and getting even better value for them, Fedder says.
At Suncorp Bank, we are committed to creating a brighter future and delivering banking that's good for our customers and the community, driving toward sustainability and delivering profit with purpose. We bring that commitment to life by providing banking solutions that support sustainability and our customers’ financial wellbeing.
We’re committed to brokers and to consistent policies that make it easier for them to do business with us. Our award-winning products and competitive interest rates set us apart from other lenders. We’re focused on making Suncorp Bank the best in the market so that, under the best-interests duty, brokers can choose an organisation that delivers value.
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Ubank wants to empower the digital generation to be more successful with money. It’s why we’re building one app for all our customers’ money needs. Think of us as a daily money companion – one that brings together customers’ ability to see their money in one place with smart features and real-time insights designed to help them get ahead.
Our customers can discover what it feels like to save more, see where they are spending, and own their own homes faster. We want to help them achieve real momentum with money. Australians can open a ubank account in just two minutes, getting instant access to great rates, no monthly fees and digital payments. For more information, visit www.ubank.com.au. Ubank is part of National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.
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“At Suncorp Bank, we hope to earn the right to be their lender of choice given our competitive rates, improved policies, and consistent turnaround times.”
Srbinovski says, “First and foremost, property investors should always be looking at ways to reduce costs within their portfolios and, like any other business, should be looking at it regularly to make sure it's as healthy as it can be."
But he says it’s critical that brokers maintain a solid relationship with their property investor clients by making sure they have good deals with their banks and a good understanding of and relationship with their lenders.
Educating brokers
Boasting a team of 15 BDMs nationally, ubank works closely with its broker partners to educate them on how the bank supports property investors and customers.
“We spend a considerable amount of time educating brokers on the use of LoanApp and also the services that ubank can provide to investment clients,” Srbinovski says.
At ubank, the process is similar for both homeowners and property investors. However, Srbinovski says investors also have access to ubank tools such as Smart Statements that can give them a solid understanding of their monthly income and expenses.
“This technology also automatically populates investor clients' liabilities, reducing the time it takes for brokers to input within the gateway.”
Srbinovski says ubank is constantly improving its processes to help brokers and their investor customers.
“By ensuring we continue to innovate to have one of the best processes in the industry, we’re able to give brokers and their customers the best possible experience when using ubank’s products and services.”
“At ubank, our home loan application process is completely paperless, whether you’re applying for a new loan or refinancing. This makes it a really strong selling point for property investors”
George Srbinovski,
ubank
In Partnership with
head of broker partnerships at Suncorp Bank, discuss how brokers can assist investor clients with refinancing.
Refinance opportunities
Srbinovski says Australia’s property investors are consistently top-of-mind when ubank makes decisions around product and policy enhancements.
“We know the investor market is important in the Australian property landscape,” he says. “It’s up to us to really cater to them and give them the tools they need to thrive, whether it’s educating them about the landscape or providing competitive rates.”
Fedder says Suncorp Bank has seen its investment loan portfolio grow by close to 5% over the last 12 months.
“We’ve created new opportunities to fund these loans by delivering a simplified credit policy and reducing the volume of documentation that customers and brokers need to provide,” he says.
“We’ve also been dedicated to providing consistent service and turnaround times, which we know are key in the current property investment market.”
Number of property refinances in NSW, Qld and Vic – FY 21
A great start would be for brokers to know every referral opportunity within their local community and ensure they are aware of the support brokers can provide with their financial needs, Srbinovski says.
Fedder adds that brokers know their local markets and are best placed to work out who can help support their customers within those communities.
Future market trends
Fedder says what he is hearing from brokers is that construction has slowed due to increased costs, and new purchases may also slow with inflation and rising rates.
“In the next 12 months, I expect to see increased refinancing to non-major banks, such as Suncorp Bank,” he says.
“Our enhanced FASTRefi ® process has made it so easy to refinance to Suncorp Bank, and it allows brokers to fast-track the settlement process. Many lenders only give this function to direct channels, but we don’t differentiate, and we’re getting great feedback from brokers on this process,” says Fedder.
Srbinovski adds that “with all the talk in the media of raising rates, property investors need to be prepared and ensure their budgets are forecasted for a rising interest rate environment.
“In my opinion, though, property investors in Australia are quite resilient, and I believe there will still be a considerable amount of interest from the community.”
“We’ve created new opportunities to fund these [investment] loans by delivering a simplified credit policy and reducing the volume of documentation that customers and brokers need to provide”
Troy Fedder,
Suncorp Bank
Industry experts
George Srbinovski
UBank
Troy Fedder
Suncorp Bank
Industry experts
Troy Fedder started his career in finance working as a bank teller before becoming a branch manager. Since then, he has spent his career working with customers, brokers and aggregators, building relationships within the financial services industry.
Fedder’s biggest priority since joining Suncorp Bank as head of broker partnerships has been to build the lender’s relationship with the broker and aggregator network and deliver great outcomes. He is committed to growing Suncorp’s market share and improving its offering.
Suncorp Bank
Troy Fedder
After serving as 86 400’s head of broker distribution for more than three years, George Srbinovski will continue to oversee the broker distribution and support team at ubank. Prior to his time at 86 400 and ubank, he worked as a senior recruitment and portfolio manager at broker aggregator Australian Finance Group.
UBank
George Srbinovski
George Srbinovski
UBank
Troy Fedder
Suncorp Bank
Industry experts
Troy Fedder started his career in finance working as a bank teller before becoming a branch manager. Since then, he has spent his career working with customers, brokers and aggregators, building relationships within the financial services industry.
Fedder’s biggest priority since joining Suncorp Bank as head of broker partnerships has been to build the lender’s relationship with the broker and aggregator network and deliver great outcomes. He is committed to growing Suncorp’s market share and improving its offering.
Suncorp Bank
Troy Fedder
After serving as 86 400’s head of broker distribution for more than three years, George Srbinovski will continue to oversee the broker distribution and support team at ubank. Prior to his time at 86 400 and ubank, he worked as a senior recruitment and portfolio manager at broker aggregator Australian Finance Group.
UBank
George Srbinovski
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Troy Fedder
Suncorp Bank
George Srbinovski
UBank
After serving as 86 400’s head of broker distribution for more than three years, George Srbinovski will continue to oversee the broker distribution and support team at ubank. Prior to his time at 86 400 and ubank, he worked as a senior recruitment and portfolio manager at broker aggregator Australian Finance Group.
UBank
George Srbinovski
Troy Fedder started his career in finance working as a bank teller before becoming a branch manager. Since then, he has spent his career working with customers, brokers and aggregators, building relationships within the financial services industry.
Fedder’s biggest priority since joining Suncorp Bank as head of broker partnerships has been to build the lender’s relationship with the broker and aggregator network and deliver great outcomes. He is committed to growing Suncorp’s market share and improving its offering.
Suncorp Bank
Troy Fedder
Mar-07
Mar-10
Mar-13
Mar-16
Mar-19
Mar-22
0
2
4
6
8
10
12
14
16
18
20
$ billions
Total refinancing
Owner-occupier refinancing
Investor refinancing
Source: ABS Lending Indicators, March 2022
NSW
101,203 (+15.2% year-on-year)
VIC
106,048 (+3.6% year-on-year)
QLD
48,768 (+12.4% year-on-year)
Source: PEXA Refinance Report FY21
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Referral partners
So, what are the best referral partners for brokers dealing with property investor clients?
Given that almost 70% of home loans are written via brokers, Srbinovski points out that they are already great at talking to their customers and helping them navigate the complex world of home loans.
“Property investors are no different, as they need guidance from brokers who know investment lending and understand banks’ products and policies,” he says.
“With this expertise in hand, brokers can speak with new referral partners such as accountants, real estate agents and the increasingly popular segment of buyers’ advocates to help grow their business.”
A great start would be for brokers to know every referral opportunity within their local community and ensure they are aware of the support brokers can provide with their financial needs, Srbinovski says.
Fedder adds that brokers know their local markets and are best placed to work out who can help support their customers within those communities.
Referral partners
So, what are the best referral partners for brokers dealing with property investor clients?
Given that almost 70% of home loans are written via brokers, Srbinovski points out that they are already great at talking to their customers and helping them navigate the complex world of home loans.
“Property investors are no different, as they need guidance from brokers who know investment lending and understand banks’ products and policies,” he says.
“With this expertise in hand, brokers can speak with new referral partners such as accountants, real estate agents and the increasingly popular segment of buyers’ advocates to help grow their business.”
A great start would be for brokers to know every referral opportunity within their local community and ensure they are aware of the support brokers can provide with their financial needs, Srbinovski says.
Fedder adds that brokers know their local markets and are best placed to work out who can help support their customers within those communities.
Copyright © 1996-2022 Key Media, Inc.
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
Resources
US
CA
AU
NZ
UK