First home buyers shut out
First home buyers and families wishing to upgrade their homes as they grow have kept broker Alex Veljancevski busy this year.
Veljancevski (pictured above) is the director of Sydney brokerage Eventus Financial, which focuses on residential mortgages. He said business had been on a consistent growth path, with 2023 a successful year.
“The business is set up for further growth within the new year,” Veljancevski said.
Despite his optimism, the mortgage sector hasn’t been without challenges including a significant reduction in buyers’ borrowing capacity.
“Borrowing capacity has reduced significantly, whereas house prices have been increasing,” Veljancevski said. “This is shutting off a lot of first-home buyers out of the market in specific areas. The properties that have been highest in demand are freestanding dwellings and townhouses/villas.”
Broker finds demand for units is slowing
However, there has been a slowing of demand for units, even with first home buyers and investors, said Veljancevski.
“Interstate investment in Perth has also been strong for free-standing dwellings as clients seek stronger yields at more affordable price points.”
When it came to loan volumes, Veljancevski said they had been growing throughout 2023 with strong demand from people looking to purchase.
“The rate rises have caused borrowing power to reduce, which has in turn, adjusted the type of properties that clients are purchasing,” he said.
“They may now be looking to purchase a larger townhouse rather than a freestanding dwelling or purchasing a home in a neighbouring suburb to the one they were previously looking at that is slightly more affordable and within their new budget.”
Veljancevski, an excellence awardee (finalist) in FBAA Broker of the Year – Residential category at the 2023 Australian Mortgage Awards, said when he started broking he ensured his product and credit knowledge was strong.
Broker’s strong focus on customer care
Veljancevski said he had a firm focus on providing a high level of customer care and delivering on his promises, which prompted a lot of customer referrals and organic business growth.
“When I went to see a customer, I was fully prepared to be able to answer most questions that they had, and that level of competence really stood out and made my customers feel that they were in good hands,” Veljancevski said.
“Furthermore, being able to turn around applications quickly and provide realistic upfront expectations is important.
“My systems and processes were very tight when I started broking, and our loan submission quality was very strong. This allowed us to turn applications around quickly, allowing us to provide a very efficient service to our clients.
“I recall that within my first couple of years in business, I did not have any loans declined once they were submitted to credit for assessment.“
Growing the brokerage not without sacrifice
Growing his business hasn’t been without sacrifice, Veljancevski said.
“I cannot speak for all brokers, however, during the past eight years in business, I have had to sacrifice a lot of personal time to grow the business. “
Currently, Veljancevski works 12 to 14 hours a day from Monday to Friday.
“I was working weekends for the first five years – however I now need those days for some much-needed rest.”
When it comes to job satisfaction Veljancevski, who was named in MPA’s Top 100 Brokers of 2023, wakes up every day excited to go to work.
“I truly love serving people and providing them with the best possible service so they can achieve their hopes and dreams,” he said.
What do you love most about being a broker? Share your thoughts below.
