Knowledge is power

The former government bonds trader-turned-mortgage broker says he loves nothing more than explaining the intricacies of interest rate movements.

He has a ready audience, particularly among his first home buyer clients.

“Clients are often keen to know my thoughts on where bank interest rates are likely to move in the future and why,” says Mr Simpson.

Simpson’s ability to track and forecast interest rate movements is certainly a skill that sets him apart. But to him it’s just another way he can add value as a professional.

“The industry is moving towards the notion of the ‘professional credit adviser’ – and I, like many other brokers in the industry, consider myself to be a professional adviser,” he says.

“It’s about providing clients with a great service, and giving them great advice.”

BREAKING INTO BROKING

A mortgage broker for the past seven years, Mr Simpson started his career at Mortgage Force which last year merged with Smartline.

Simpson says that his decision to become a broker was motivated by his desire to leave the intense corporate world of investment banking and be self-employed in the finance industry.

“I’ve always had a love of property and saw mortgage broking as the perfect fit in terms of my skills and interests,” he says.

“Becoming a mortgage adviser was a massive step for me, but I was always pretty confident it was going to be a successful move.”

A STEP IN THE RIGHT DIRECTION

It turns out he was right. Last year Mr Simpson wrote 65 loans totalling $42.7 million, with an average loan size around $650,000.

His client base comprises high net worth individuals – mainly Sydney-based but including many senior financial, accounting and legal professionals living in Moscow, London, New York, Hong Kong and Singapore.

Of his clients, most are aged between 25 and 40 and are mainly first home buyers and upgraders.

But unlike ‘typical’ first home buyers, Mr Simpson says many are young professionals buying homes well above the $400,000 to $500,000 price range.

“Some are buying their first home around the million-dollar mark,” he says.

ON THE MOVE

Having a relatively youthful and technologically savvy client demographic means Mr Simpson is able to conduct most of his business electronically – in turn allowing him to create a flexible work environment.

In fact, Mr Simpson says about 80 to 90 per cent of his business communication is via email.

“Email is such a useful tool: it is so much more effective as a time-management strategy than writing letters and other means.”

And it’s not only the time factor. Mr Simpson says by emailing his clients information as it comes to hand they are better informed and ultimately receive a more thorough service and from an audit perspective, the paper trail makes it easier for him to track client correspondence.

While emails are a great way to stay in touch with your clients, Mr Simpson says there’s always a need to conduct face-to-face meetings – to give them that extra bit of personal service, which is why he operates out of his Balmain office three days a fortnight.

“I have scheduled back-to-back meetings during the days that I’m in Sydney,” he says.

For the rest of his time, Mr Simpson operates out of his home office in Mudgee, a wine-producing country region in western NSW. By arranging his schedule in this way, he really has the best of both worlds.

“Those couple of days in the office give me the opportunity to spend time with my colleagues, share ideas, and tap into that energy of a busy office environment,” he says.

“However, I’m then really happy to be able to get back to my own office in Mudgee... looking out over the rolling green hills is certainly more enjoyable than battling Sydney traffic!”

TAKING THE GOOD WITH THE BAD

While he has now firmly established himself, there have been challenges along the way.

Dealing in the high end of the mortgage market has its advantages, but Mr Simpson says external factors had an adverse impact on his business and, in turn, his bottom line.

“There’s no doubt that the market I operate in is pretty volatile,” Mr Simpson says.

“In 2007, when that market was strong, I wrote over $70 million. This dropped to $40 million the following year.”

It was an unsettling time, but it also gave him an opportunity to reflect.

“In my mind now, 2007 was a bonus year,” he says.

“You make the most of those periods, knowing they’re not going to occur every year.”

THE FUTURE

With licensing fast approaching, Mr Simpson says it is important for brokers to value the service that they provide to their clients.

He considers himself a professional adviser and knows that his experience in investment banking helps him build a bond of trust with his clients.

They rely on his market knowledge and expertise when it comes to “advising them on their financial future through property investment,” he says.

“I support the industry’s move towards the role of a professional credit adviser and think it’s important that we all see ourselves as professional advisers.”

It is this sentiment that has helped Mr Simpson continue to turn over large volumes since the onset of the GFC.

This year alone, business has increased 10 per cent and Mr Simpson expects to write about $45 million this financial year.

“My aim is to consistently write $50 million a year in the next few years,” he says.

With his attitude and approach to customer service, it’s a target he’s well on track to meeting.