The Australian mortgage broking landscape is bustling with talent, but as competition intensifies, the pressure to stand out is hotter than ever.
From comprehensive client education initiatives to attention-grabbing car giveaways, Australian Broker asked two brokers about how they rise above the noise and offer clients value that goes beyond personalised loan advice.
While banks wield powerful weapons such as low interest rates, cashbacks, and fee waivers, brokers lack these financial levers, putting them at an apparent disadvantage in the initial wooing game.
What they do offer however, is advice that protects the best interests of their clients. This has clearly resonated with borrowers, as they now handle over 70% of all residential loans.
But while the broker industry may be winning the battle with banks overall, individually, they also must compete against each other.
There are currently 19,456 brokers in the mortgage industry – each of whom have the same opportunity to access the same lenders and recommend the same products.
While the quality of service will always be the crux of what separates one brokerage from another, many brokers have gotten creative to generate leads and repeat business amid a level playing field.
One such brokerage is MTA Mortgage Brokers in Victoria, directed by Kerry Kalendra (pictured above left), who sought to increase brand awareness through an online car giveaway campaign.
Open to anyone who takes out finance over $250,000 through the brokerage before September 30, the winner of the campaign gets a brand new MG3 worth $20,000.
For Kalendra, the reasoning was clear: “A car giveaway is always enticing, and we deliberately chose a vehicle brand that has a strong reputation amongst family and younger buyers.”
Having started in 2020 and put in place the systems and procedures that have established a “strong customer experience”, Kalendra said the brokerage was in a solid position to engage the market at scale, generate leads and drive new-to-market client sales.
To achieve this strategy, Kalendra has a target market in mind.
“Over the campaign we’re specifically looking at first home buyers and refinancers who are middle-aged couples with children who are well into their teenage years,” he said.
He also has specific goals:
Kalendra said the brokerage would be promoting the giveaway through social media, email marketing and digital advertising.
“We’re industry awarded for our community engagement activities, and we’ll be utilising the relationships we’ve formed with local groups to maximise awareness,” he said.
The campaign also connects with the local community, with MTA Mortgage Brokers teaming up with local car dealership MG Brighton.
“They have been on board with us since the initial concept and there are multiple cross promotional opportunities for both businesses,” Kalendra said.
“Look out for some spectacular video promotions over the coming months, as well.”
While some brokerages like MTA Mortgage Brokers may prioritise gaining new leads, others, like The Lending Lab, has focused on retaining existing clients.
Already posting educational content YouTube, TikTok, Instagram, and on LinkedIn, The Lending Lab’s director and CEO Nick Clunes (pictured above right) has recently launched a detailed e-newsletter covering a range of topics.
Outside of mortgage rates and products, Clunes said the content explored strategies to increase borrowing capacity, different government scheme, how lenders looked at income, as well as different types of markets such as commercial property.
“We also have a number of interviews which will be rolling out shortly which will look more into self-managed super fund lending, helping our customer base understand the structuring as well as the steps to establish a self-managed super fund,” Clunes said.
When deciding what themes and formats that resonate best with their audience, The Lending Lab looked at the demographic and psychographic of the customer base they were targeting.
“Based on this information, we decided that video content and short form text content on LinkedIn was the best way to connect with this audience,” Clunes said.
Clunes also noted that since The Lending Lab’s process was mainly digital, using software for a more streamlined home loan application process, he felt their customer base would resonate with a digital approach.
“Client education is important in our brokerage because it aligns with our mission statement which is to help customers reach their goals and take the next step in their financial journey,” Clunes said.
“By educating our customer base on a variety of topics, and making this free and accessible to anyone with an Internet connection, we hope to enable people to make better financial decisions around property, when this might not have been possible without the free education – retaining our clients in the process.”
In the face of limited financial incentives, brokers have to rely on their strengths: expertise, personalised service, and building trust.
By focusing on these aspects and developing strategic approaches, they can carve out a successful niche or a point of difference in the competitive mortgage market.
