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Shore Financial February Market Wrap with CEO, Theo Chambers


It’s fair to say February has been a big month for Shore Financial. At the start of the month, the Royal Commission’s final report made headlines across the country and was met with a mixed bag of reactions from the industry.

At the same time, here at Shore Financial, we were celebrating some big achievements and milestones.

Shore Financial February Market Wrap With CEO

It’s been a big month


We’re very proud to have been named #4 in The Adviser’s Top 25 Brokerages for 2019 and to have retained our place as the #1 independent brokerage outside of the franchise groups.

We’ve been nominated in three categories for the prestigious Better Business Awards and our Senior Credit Adviser, Nick Jacobs, has been featured as one of The Adviser’s Top 30 Brokers Under 30.

….and we celebrated our sixth birthday!

Shore Financial February Market Wrap with CEO, Theo Chambers

Here’s what Shore Financial CEO Theo Chambers said about the month:

The Royal Commission’s final report was initially quite alarming, as Hayne had not considered what was in the best interests of consumers. However, it’s good to see that both the Liberal and Labor Parties have since realised this and released more supporting comments toward our industry and consumer outcomes, so things are now looking good. We’re also looking forward to attending the Better Business Awards next week and seeing if we win Best Independent Brokerage, now for the 4th year in a row!

The Hayne Report

Royal Commission’s final report


On February 4th, Commissioner Hayne’s final report from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industries was released after it was tabled in Federal Parliament.

The report contained 76 recommendations, 75 of which the Liberal government has pledged to adopt. The Australian Treasurer, Josh Frydenberg, rejected the final recommendation relating to customer paid fees for service, claiming it would harm competition – and he is absolutely correct, it will.

It is interesting to note that after initially accepting all 76 recommendations, the Labor Party has since abandoned this stance, announcing a new proposal. With the Federal election only months away, only time will tell which party’s policy will become legislation.

Here at Shore Financial, we have made it clear that we believe independent mortgage brokers provide a vital service to Australian consumers and that it is important to keep competition in the industry alive. Mortgage brokers stand for almost 60% of Australian mortgages written; we give a voice to the smaller players who are vital for competition against the big four. These numbers speak volumes as to where the majority of Australians prefer to originate their mortgages.

As Theo Chambers points out:

Brokers are the voice of all the second tier lenders such as Bankwest, ING, Suncorp, Macquarie and countless more who rely on brokers to distribute 80-90% of their loan settlement volume. Without brokers, these second tier lenders would struggle to offer their products and services, which are also generally more competitive than the major banks. Some of the recommendations made by Hayne would potentially wipe out the broking industry, so this needs to be considered.”

Overall, there are five major points in the Hayne Report that have been recommended for the mortgage broking industry. Most of them we support and that’s because they pertain to best practices. This is something we are fiercely proud of at Shore Financial. We make it our mission to provide our clients with outstanding customer service and deliver the right loan tailored to your unique set of circumstances.

The phenomenal growth in the mortgage broking industry over the past decade is proof that brokerages like Shore Financial are providing a much needed service, as Theo Chambers can attest to from his own personal industry experience.

The broking industry has grown from representing 15% of total loans settled to almost 60% in the 10 years I’ve personally been in mortgages. The reason for this is that it is clearly an industry which is delivering better outcomes for clients. Why would you speak to a bank with one set of products and services when you could speak to a broker who offers over 30 banks’ products and services?

Property market update

Property market update


While the debate about how much further the Australian property market will drop continues to play on permanent loop in the mainstream media, we’d like to offer a little perspective.

We stand firm by the assertion that the property market downturn is in a correction, not a slump, and there is solid historical data to back this up. The Australian property market increased by a huge 50% between 2012-17. The market has dropped 8% over the past 12 months and while this is significant, it’s far outweighed by the preceding five years of capital growth.

A softening market also presents opportunity for savvy buyers and vendors. First home buyers might find the market more accessible at present. For those wanting to upsize or downsize, you are essentially buying and selling in the same market, so factor this consideration in when making decisions.

Read more about why the property downturn is a correction not a slump here.
Read how Shore Financial helped one first home buyer secure her dream home here.

Get in touch with Shore Financial today and maximise your opportunity through property!


  • Levels 3 & 4, 153 Walker Street
    North Sydney, 2060

  • 1300 416 700

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