Industry veteran shares his story, insights, and advice
Broker in Focus is a dedicated series that highlights the unique journeys of mortgage brokers, providing them with a platform to share their experiences, insights, and expertise. Through compelling personal stories and professional reflections, each featured broker recounts the key moments that have shaped their careers, delves into the challenges and opportunities facing the industry today, and shares the valuable wisdom they have gained along the way.
In this latest edition, MPA interviewed John Minihan (pictured above) of Professional Finance Mortgage Brokers, whose foray into the finance industry began decades ago, starting in the banking sector before finding his way into mortgage broking.
Full name: John Minihan
Job title: Mortgage broker
Company: Professional Finance Mortgage Brokers
Number of years in the industry: 44 years (the last 23 years as a mortgage broker)
Location: Port Macquarie, NSW
How and when did you become a mortgage broker?
My career started in the Bank of NSW (later Westpac) in 1980 at Taree, then Ballina, Coffs Harbour, Sydney CBD, and then up to Port Macquarie in 1994 as the business bank manager, where my wife Julie and I started our family.
During the time with the bank, I was encouraged to do external studies and as a result, I completed an Accounting Diploma and a Bachelor of Business. While they don’t make you an expert, they do provide you with some knowledge in these areas and definitely assist now where we see a lot of self-employed clients and business loans.
I resigned in 2000 and initially took on a role in a very small company called Sun Zapper (with only two other staff members) that required me to do a two-week round the world marketing trip every seven to eight weeks. I visited numerous amazing places around the world, but it’s not much fun for a married bloke with kids, travelling solo while stuff is happening back home.
So, I became a mortgage broker at the start of 2002, initially as the Lawfund Finance North Coast office and partnering up with an adjoining solicitor’s practice. This relationship is still in place and is mutually beneficial. The Lawfund staff and execs were terrific, notably Judith Fiander, Tanya Sale and Tony Bice, to name a few and they created a welcoming family environment. We became our own brand as Professional Finance Mortgage Brokers in 2006.
We switched to AFG in 2009 when Lawfund changed to eChoice, and I was then fortunate to be one of the three finalists as MFAA Finance Broker of the Year in 2009 and 2011. We have established an office with a good presence in the Port Macquarie CBD and have good relationships with the other main mortgage brokers in town, accountants, and solicitors and conveyancers.
In your opinion, what has been the most positive development in broking?
I think the most positive development in our industry in recent times, as much as we all curse it, is the Best Interest Duty and additional compliance. I think it has really set the standard for the professionalisation and increased trust of our industry. It has forced the cowboys to come into line (or to go and find a different job) and has absolutely given us a real point of difference and credibility to the major banks that we are competing with in regional areas.
We’ve always clearly explained how we get paid and when we add in the explanation of the best interest duty, it ensures that the clients know we are working for them and that our services to them really are free of charge. We’ve always had a loyal client base – this has just cemented it.
In regard to the additional compliance, we would have always had notes as to our client research and recommendations, but the requirements now make it a lot easier to recall why you made certain lender and product recommendations.
What challenges do you see currently facing the industry, and what solutions would you propose?
I think the biggest challenge facing our industry is the digitisation of the application process and the ability of the banks to make the process simple and quick enough for a bigger share of the market to undertake the process themselves rather than use brokers. AI will be a part of this and who knows what the industry will look like in 10 years. The larger broker groups may be in a position to adapt and compete with the banks, but the smaller brokerages and one person operations will struggle.
I’d like to think our clients would prefer the personal, one-on-one service that we provide and the assurance that we will always do what is best for them. But it might be that we will see the broker market share top out and start to ease over the coming years. I’m nearing the end of my career, so it might just be a matter of making the most of the current good times and do more caravanning over the coming years.
Can you share a memorable experience from your career as a broker and the lessons you gained from it?
I really enjoy looking after clients that desperately need an honest, experienced person to do the hard yards. I think when a couple is purchasing a home, they bounce ideas off each other, but a single person, particularly an older single individual may struggle not having a partner to discuss and agree on the big decisions like buying a house and finance, I think that’s where we can add value and make the process easier and less stressful.
One client that comes to mind was a single mum with six “kidlets”. Not easy, but we got finance approved to buy a very modest home, finance well structured and she was very comfortable with the repayments. Twelve months later, I got an email with a photo of her smiling kids saying. “This is what you have done for us, we now have a place to call home.” That makes it worthwhile, and it is hard not to shed a tear. I know we all like good sized loans, but sometimes the most rewarding deals are small ones for people that will be forever grateful and you can honestly say you have helped improve their lives.
Could you share any valuable advice for individuals aspiring to become brokers or those new to broking?
I know it is really difficult when you start in the industry, but new brokers need to strive to provide excellent service, keep the client informed throughout the process, and most importantly, look at the long game. Don’t see it as a transaction, or a sales activity, but see it as the start of a relationship and treat the client accordingly. Take the time to listen to them, do your research and get the best finance organised for them. I’ve always had the simple view that if you do the absolute best by the client, you’ll make more money over the longer term rather than focusing on a quick buck now.
Secondly, as a mortgage broker, we are always learning, every day. There’s not a week that goes by where we are astounded with how terrific a bank process or credit officer or staff member is, and at the same time, get frustrated at how short minded, negative or untrained another bank process or credit officer or staff member from a different bank can be. You need to realise what battles you can win and which ones you can’t – so don’t waste your time trying to fight something that you have no chance of succeeding in.
It is also worthwhile to add that you need to maintain your credibility and integrity when arranging loans. With a difficult scenario, I’ve often used the yardstick of “would I lend them my own money”. If the answer is yes, then it is worth fighting for, but if there is something not quite right and your gut is uneasy, then the right decision might be to advise the client you can’t assist. You’ll feel better and sleep much better afterwards.
Broker in Focus is a weekly MPA feature spotlighting mortgage brokers from diverse firms and locations across Australia. Among those recently featured are and Daniel Bowler of Mortgage Choice, Scott Wills of Mortgage Choice, Camilla Lewis of Derwent Finance, Harrison Brown of Aussie, and Anthony Bloom of My Mortgage Partner.
Are you a mortgage broker interested in being featured? Email the author with your details.
