[La Trobe Financials] Financing Construction and Developments Morning Tea
- September 6, 2024
![[La Trobe Financials] Financing Construction and Developments Morning Tea](https://members.oxbridge.com.au/wp-content/uploads/2024/09/LaTrobeFinancialLogo-300x139.jpg)
Dear Oxbridge Partners and Affiliates,
The QLD La Trobe Financial Team has invited all Oxbridge mortgage and private brokers to a complimentary luncheon event. Oxbridge has seen a significant increase in construction and development transactions, and we’re committed to doing what we do best—helping brokers successfully write these loans. There will be similar events in other states
With various structure types available for construction facilities, we want to ensure you have the right support and know exactly who to call when these opportunities come across your desk.
We cater for:
- Standard Construction
- Knockdown Rebuilds – Single/duplex builds up to $25M
- Capped Interest Facilities – No servicing required
- Bridging Construction – Single/duplex builds
- Site Acquisitions
- Multi-Development Projects – Up to $25M
Additionally, we’ll have Graham Upton from PEP joining us to provide valuable insights into why a Quantity Surveyor Report is essential and what’s involved in the process.
EVENT DETAILS:
Brisbane: Wednesday, 26 February 2025
Location: Easts Leagues Club – Jack Atik Room, 40 Main Ave, Coorparoo QLD 4151.
Gold Coast: Friday, 28 February 2025
Location: Burleigh Heads Surf Club – Hinterland Meeting Room Corner Goodwin Terrace and Gold Coast Highway, Burleigh Heads QLD 4220
- 9:00am: Arrival
9:30am: Introduction
9:45am: Construction Finance
10:30am: Morning Tea
10:45am:Development Finance / Quantity Surveyor Update
11:45am: Q&A
12:00pm: Conclusion
RSVP: support@oxbridge.com.au
La Trobe Financial was established in 1952 in Australia and initially operated as a specialist residential lender and business partnership between Kel O’Mullane and Ray O’Neill. Attributed as one of the fastest growing permanent building societies in Victoria in the 1970s with a network of 9 branches and over 230 agents and AUM of $28 million. It was eventually de-mutualised after Ray O’Neill bought out his co-founding business partner in the early 1980s. Between 1984 and 2022 Mr. Greg O’Neill (OAM) operated and led the process of scaling and modernising the business. La Trobe Financial specialise in originating, underwriting and managing granular assets of both traditional residential and commercial mortgage loans, cash, fixed interest and bonds. La Trobe Financial fund these assets via institutional funding, a large Asset Management business and retail credit fund, and a global capital markets bond program. Since establishment in 1952, the business has scaled to be one of the largest Australian non-bank institutions currently managing A$13.5 billion with more than 460 staff. During that time La Trobe Financial has assisted over 205,000 individuals, and have cumulatively managed investment funds from wholesale and retail sources in excess of A$36 billion; this has been carried out without loss to any institutional or pooled retail investor. La Trobe Financial currently review A$10 billion of new investment grade asset investment opportunities annually.
ABOUT THE MORTGAGE BROKERING BUSINESS
Mortgage Brokering is a phenomenal industry that offers truly passive income and the ability to build your book. The average income of mortgage brokers at Oxbridge is an impressive $188,046 (https://www.theadviser.com.au/broker/45361-the-top-25-brokerages-2024-the-dragons-of-industry) whilst top brokers can earn over $2m a year often in passive income (https://www.afr.com/companies/financial-services/inside-the-unstoppable-rise-of-australia-s-mortgage-brokers-20240524-p5jg8b). The best thing about finance brokering is the TRUE PASSIVE INCOME. Oxbridge Training (www.oxbridge.training) offers individuals to obtain their certificate and diploma in mortgage brokering in a short amount of time. Very few professionals are qualified in both real estate and mortgage brokering. The key to a successful mortgage broking business are the leads. With over 4,500+ online listings and another 1,000 off market listings the Oxbridge Real Estate business side provides an excellent source of lead generation
Although the details around when and how brokers receive commission varies from lender to lender, generally speaking: Upfront commission: 0.65% (+GST) to 0.85% (+GST)
The upfront commission is the largest component of the commission. The broker receives this once your loan settles. Trail commission is what the broker receives every month for the life of the loan. Usually, this trail is set at 0.15%-0.40% per annum based on the remaining loan amount each year. To be clear, mortgage brokers don’t work for the banks, although there are some mortgage brokerages that are partly-owned by banks and larger lenders. Oxbridge is always 100% independent (e.g. Aussie is owned by Lendi which is owned by numerous shareholders including CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, RAMS is owned by Westpac, REA owns Mortgage Choice etc)
Working on a typical loan size of $850,000 and writing 20 loans in the first year. The commission received by the broker would be
$750,000 (20 x 0.70% + 20* 0.45%) = $119,000 (upfront) + $76,500 (Trail) = $195,500
Top brokers in Australia receive well in excess each year of $3M upfront commission and at least 3x that in terms of trail commissions for the life of the loan. Several Oxbridge brokers are doing exceptionally well earning 7 figure incomes. Some Oxbridge members are dual qualified in mortgage brokering and real estate which is a huge competitive advantage in the market place. Trail commission is really true passive income
The Oxbridge Finance Team
