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Mortgage brokers, are you a sheep? Or a salmon?

Man looking at a field of sheep

Did you know mortgage brokers are experiencing higher anxiety levels than ever before? Sadly, with many brokers caught in complex aggregator takeovers and bank/institution buying, then selling, then not selling aggregation businesses, it’s no surprise…

When you discover you’re suddenly part of a massive amalgamated aggregation group, it’s easy to become lost in the crowd. Despite being a part of a large aggregator, you’re more isolated than ever! Often, amalgamations like this happen without brokers even knowing about it until the deed is done.

 

Consider this: Were you asked to vote? Were you consulted? Did you have a chance to raise your voice?

Plenty of single-operator brokers are chewed up and spat back out of these burgeoning beasts. Between institutional owners and powerful shareholders, genuine broker-centric aggregation models have become a rare breed. We’ve even seen some brokers being asked to leave these groups, simply because they don’t satisfy new aggregator “volume requirements”.

 

So, how does the sheep vs salmon argument fit in here?

The sheep mentality is this: join the masses, follow the crowd, fully conform and lose your voice as well as your individuality. You bend to the will of your shepherd, often without even realising it.

The salmon mentality is this: swim upstream, fight the good fight, demand to be heard, then spawn, reproduce, and grow! You’re empowered to go your own direction if you want to, but welcome to follow along when it suits you.  


Stop baaing, start swimming. 

Be the best salmon you can be with Purple Circle.

Independent and broker-owned (shares are earned by brokers), Purple Circle thrives with a culture of mutuality and cooperation. Important company decisions are put to brokers, and each one is empowered to vote and make a difference.

We throw handy resources your way, provide training, share game-changing advice and practical support, and heaps more. Plus, we have an exclusive network of like-minded brokers ready to shake hands and swap industry secrets. Purple Circle is ready to help salmons swim upstream faster than ever.


Ready to swim into the Circle?

If you would like to know more about becoming a member, contact the team.

Small and Medium Enterprises (SME) Guarantee Scheme


The Scheme will enhance lenders’ willingness and ability to provide credit and will be available for new loans made by participating lenders until 30 September 2020.

The Government will provide eligible lenders with a guarantee of 50% per cent of new loans. Some generic terms are:

  • Businesses with a turnover of up to $50 million.

  • Maximum total size of loans of $250,000 per borrower.

  • Loans will be up to three years, with an initial six month repayment holiday.

  • Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

Reduced Interest Rates


Consider your current banking arrangements. The Reserve Bank has recently reduce the cash rate and lenders have passed this on to various loans they have.

Instant Asset Write Off


An increase in the instant asset write-off threshold from $30,000 to $150,000 30 June 2020.

Deferment of Loan Repayments for up to 6 Months


The banks are developing their own approach as to how to deal with requests from their clients for repayment holidays. Some are automatically granting the request, others are assessing the requests individually.