Meet the outback brokers

But where there are communities, there are homes, and where there are homes, there are loans to be written.

We caught up with some brokers who call this region home, to find out more about the opportunities, challenges, and rewards of mortgage broking in the outback.

Challenges

One of the key challenges for brokers operating in the outback comes in the loans themselves. Many lenders simply do not service ultra-remote postcodes or, if they do, impose stricter terms that limit borrower options.

Joanne Dillon is a broker working in Roxby Downs, a mining town of 4,000 people, more than 500 kilometres north of Adelaide. She said lender appetite remains a major constraint.

“Most have restricted LVRs in our postcode, while others offer nothing at all,” she said.

Despite having access to more than 30 lenders, Dillon said only a small number are consistently usable without significant restrictions.

“Our housing falls into category four with almost all lenders, and they simply don’t have the appetite for it,” Dillon said.

“Not all, but most, find it easier to say ‘no’, than try to understand the benefits the lending may bring.”

Similarly, Gary Alexander, a broker in Broome in Western Australia’s Kimberley, said lending options can be tight.

“The banks often treat Broome like a mining town… the restrictions on LVRs are tight,” he said.

“That said, there are some excellent lenders we work with regularly who look after our clients and offer good rates.”

Ironically, for a region where space feels infinite, housing supply is a major problem.

“The availability of homes is very low at the moment. There is not enough supply for the demand. Home values are up 15.9 per cent in regional WA in the 12-months to March, which puts a lot of pressure on borrowing power and squeezes many out of the market,” Alexander said.

“This means there are limited options for first home buyers in a market like Broome. While a great scheme, the Five per cent Deposit scheme caps the purchase price of a home to $600,000. This is sufficient in some regional areas, but in Broome there are very few homes in that price range.”

Alexander said that the slow release of land for development has also intensified competition.

He said: “I heard that people camped outside a local real estate agent just to be first in the door to purchase a block of land when the new Broome North stage was released.”

The absence of traditional house-and-land packages adds another layer of complexity, requiring buyers to source land and builders separately, often with limited availability.

As a tropical location, another key issue in the Kimberley region is cyclones.

Since 1910, approximately 22 cyclones have caused gale force winds in Broome, averaging about one every four years. This means Broome sits in a designated cyclone area.

“While that doesn’t impact lending, it does impact insurance premiums,” Alexander said.

“Insurance premiums are higher, with an average policy costing between $3,500 to $5,000 per year for a house.”

Working in the outback

The remote nature of the outback does not just impact lenders but also borrowers and broker businesses as well.

Both brokers pointed to challenges around lead generation and referral networks, particularly in communities that can be highly transient.

In Roxby Downs, Dillon said more than half the population is FIFO, with many residents only staying a few years.

“I often comment that living in a transient mining town is almost completely opposite to how most brokers chase new business,” Dillon said.

Dillon said the key to success in this environment is not expansion but consistency.

“The key to my success is simply to stay still, and remain relevant and open to new opportunities,” Dillon said.

“As a business owner in the town, I have strong relationships with the three real estate agents represented locally, along with a 30 year reputation of offering finance solutions, so majority of my referrals are local or from existing clients.”

In Broome, distance presents another challenge, with brokers often travelling significant distances to meet clients.

“There is a 1,000km distance between our two offices and 2,500km to Perth, so I travel often,” Alexander said.

“I love getting out to see clients in person and helping them on their own turf, when I can.”

He added that a combination of national brand support and local marketing initiatives, such as radio advertising, helps generate leads in the region.

No place like home

While the outback is not for everyone, Dillon said her 30 years in Roxby Downs have been deeply rewarding.

“The remoteness and quiet here is something that just cannot be explained to city folk, and the landscape and sunsets are simply stunning,” she said.

She moved to the town in her early 20s, during a period of high interest rates, and began her banking career locally – an experience that sparked her interest in lending.

That path eventually led her to mortgage broking, as she saw banks pulling back from regional South Australia and wanted to ensure her community continued to have access to finance.

“I wanted to make sure Roxby Downs did not suffer the consequences,” she said.

“Would I like to live a little closer to family, of course, but I’ve been here so long, Roxby Downs is now a part of my DNA, and it’s a place I proudly call home.”

Having moved to Kimberley from Sydney 20 years ago, Alexander did not form a part of the cohort that moves away after a few years.

“The Kimberley has become home,” he said.

“Broome is a great place to raise a family… beautiful beaches, a great lifestyle, and the ability to switch off.

“I love working here, people in these parts are a mixed bunch, from city dwellers coming for an experience, locals and tourists who don’t want to leave. The town is a positive place and people love the lifestyle, so it’s a great place to live and work.”

[Related: Brokers see more professionals relocating to regional Australia]

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