From karate class to mortgage broking, Jonathon Coleman (pictured above) mastered the industry with sharp instincts and a focus on transparency, sharing his journey, industry challenges, and the vital role of mentors – because even in finance, it helps to have someone in your corner.
Coleman, founder of One Stone Finance, began his career in mortgage broking in an unconventional way.
“My karate instructor back in 2005 was a mortgage broker and owned and operated a mortgage broking business,” Coleman says.
He was offered a role as a loan officer and learned the ropes from seasoned brokers.
“I picked up loads of life lessons and what to do (and what not to do) and that has shaped me a lot,” he says.
After the business was sold post-GFC, Coleman went out on his own, eventually founding One Stone Finance in 2016.
“I haven’t looked back since,” he says.
One of the most significant changes in the industry, according to Coleman, has been the introduction of the best interests duty (BID).
“BID was always deeply ingrained in my practice and was something that I and my brokers have always taken pride in before it was ever legislated,” he says.
Coleman believes BID has greatly benefited clients across Australia by promoting transparency and trust.
“When BID was introduced, we barely needed to change what we were already doing,” he says, emphasising how the duty helps protect clients from dishonest operators.
Coleman highlights two key challenges facing the industry: the impact of refinancing trends and the current serviceability buffers.
He explains how multiple rate rises and cash-back offers from banks led to increased refinancing, often with little financial reward due to clawbacks.
“The challenge within the refinancing market is that around half of the time under BID, we are repricing clients rather than refinancing,” he says.
The solution, he suggests, is focusing on new business areas and diversifying into other finance options like commercial and equipment finance.
Serviceability is another significant issue, especially for first-time buyers.
“The current assessment rate buffers with lenders sitting at 3% higher than the offered rate… are also strangling servicing,” Coleman says.
He proposes a temporary reduction in the buffer to 2%, with a review after 12 months to assess its impact on the market.
Reflecting on his career, Coleman shares a challenging experience with a high net-worth client involving a complex $12 million lending application.
Despite his efforts, the demanding client was never satisfied, and a sudden clawback on commission followed shortly after settlement.
“I look back on this one as a lesson to myself,” Coleman says.
Now, he charges a non-refundable brokerage fee upfront when dealing with complex clients and prefers managing multiple smaller deals over one large one to mitigate the risk of clawbacks.
For those new to the industry, Coleman stresses the importance of mentorship and community.
“Find multiple mentors,” he says. “Whether you’re a solo operator or are new to a company environment, don’t be a martyr and suffer on your own.”
He encourages aspiring brokers to network, share experiences, and learn from others.
“The broking community is generally very supportive, and people will share their experiences, tips and tricks,” Coleman says.
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