Brand power

Originally an editor on Channel Nine’s flagship current affairs program 60 Minutes, Mr Beavis turned his hand to mortgage broking over nine years ago after contacting a broker to help with refinancing his existing debts and expanding his property portfolio.

Mr Beavis says he sought out the broker’s services after the banks kept knocking him back for a loan.

“The broker sat me down, worked through my financial history and showed me exactly what I was capable of borrowing,” Mr Beavis says.

This personalised service was not something Mr Beavis had previously experienced and it had a profound effect on him. “They really took the time to get to know me and understand my situation,” he recalls.

Suitably intrigued, and taken with the idea of helping people make their dream home a reality, Mr Beavis took a leap of faith and knocked on the door of a Wizard franchise in Surry Hills.

“The principal of the franchise and I just clicked,” he says. Soon after, he was training to become a successful originator with Wizard.

Eight years on and Mr Beavis runs an Aussie mortgage broking franchise in Newtown in Sydney’s inner west, following Wizard’s merger with Aussie earlier this year.

The franchise is open five days a week and caters for “first home buyers, investors and new home purchasers,” Mr Beavis says. “We can also help customers with a quick home loan health check to ensure they have a great deal on their existing home loan.”

There are five fully-qualified Aussie mortgage brokers on Mr Beavis’ staff, who each settle anywhere between $6 million and $7 million in loans a month.

Mr Beavis says his goal is for the business to write $15 to $20 million each month, with a personal annual target of between $70 and $80 million. “However, inevitably some years will be better than others,” he says.

CAPITALISING ON INVESTOR BUSINESS

Happily, this year has been one of the better ones, with the franchise fielding over 1,500 enquiries in the first few months of operation from customers looking to refinance.

Mr Beavis says refinancing accounts for a fair share of business as investors start to re-enter the market. In September, Aussie recorded a 32 per cent increase in the number of investor enquiries via their website.

“A lot of our customers are coming in and asking for assistance in accessing equity or refinancing. I can foresee second and third home buyers really taking off alongside investors. In fact I think we will see this market gather momentum over the coming year and well into 2010.”

Mr Beavis says investors have been patiently waiting on the sidelines to see what impact the reduction in the first home owners grant will have on market activity.

“I think we will start to see investors fill the gap left by first home buyers,” he says.

“There has been a price bubble created in some areas as first home buyers have paid over the odds for their properties. For investors in that same price range, it has been prudent to sit back and wait for the grant to be reduced.”

Mr Beavis says his client base is mixed, but repeat business accounts for the bulk of revenue.

“We get a certain number of customers from repeat business, a certain number of people who walk in off the street and a certain number from our referral partnerships,” he says.

While referral partnerships generate only 10 to 15 per cent of business, Mr Beavis says they ensure the business remains viable for the future.

“Anything is better than nothing, and more than anything, they [referral partnerships] provide us with the impetus to gather our own leads and generate our own business,” he says.

Being part of a brand as recognisable in the market as Aussie also hasn’t done the business any harm. Mr Beavis says it was important for him to be associated with a well-known name in the mortgage market and is glad he didn’t open a business under his own name – particularly given the economic climate at the time.

“While there are other dominant mortgage broking franchises in the market, the best thing about Aussie is that it has an identifiable personality associated with it, which makes the whole enterprise seem more personable and consumer friendly,” he says.

That identifiable personality, John Symond, helped Mr Beavis launch his Aussie franchise earlier this year.

“The opening attracted quite a large crowd which consisted of some media and ex-customers as well as people from the general public. It was amazing to see the appeal and pull that John has,” Mr Beavis says.

While Mr Beavis attributes some of his franchise’s early success to Aussie John’s appearance at the launch, he says hard work and delivering a consistent, high quality customer service is what has helped keep the business in the black.

Among his tips for business success are strong product knowledge, returning phone calls the same day, and providing service with a smile.

Mr Beavis says he encourages all of his brokers to go that ‘extra mile’ with customers – including calling them on their birthdays and presenting them with a bottle of wine on settlement.

“They may sound cliché, but I have found [these techniques] to be truly effective. There is a quote amongst brokers that says your biggest source of revenue is your existing clients – and nothing could be truer.”