Elite Broker Q&A: Melissa Ashcroft, AAA Mortgages

I’ve been broking nearly nine years now, but I’ve been around the industry for a long time. My dad started AAA in 1988 but when I was growing up, I wondered why anyone would become a mortgage broker! I didn’t really understand what that entailed, and because my dad was doing it, I didn’t want to do the same thing!

I just thought: “I'll be a lawyer,” so that’s what I did. I went to uni and did an arts/law degree. But I decided I wasn’t meant for corporate life, and really wanted to work for myself.

I just fell into broking nine years ago when I was helping [dad] out with some marketing. After seeing what my dad was doing, and that no two days were the same, that really made it more interesting to me and I really got into it. 

But while dad has definitely set the foundation for my entry into broking, I’ve had to work it all out on my own: build my own client base, do all the prospecting, etc. I’m proud that I work for a family business, but I’m also proud that I've been able to forge my own way.

Why commercial broking?

I think you’ve got to find what works well for you in this industry. Some people might be more aligned to asset finance, some people might be more aligned to construction, some people might be better at the mom and dad, big purchase and taking on that emotional burden. 

I started off doing residential but realised it was not for me. Hats off to resi brokers but, for me, it’s a lot harder dealing with people’s biggest purchase of their life. Commercial is a bit more removed.

What was your first commercial deal?

My first one was a commercial investment for an architect, who was just down the street. He’d been with a bank and been loyal to the bank for 20 years. He thought he’d be fine just to roll over the loan, but the bank thought otherwise.

He was seeking a competitive or equal rate, even though he was no longer working in his architect business and the tenant had recently moved. So, I had to find a second-tier lender that suited his needs. It was more about finding the right product for what he needed at that moment in time.

How have you found lender appetite for commercial loans at the moment?

The banks are finding it tough at the moment, especially in this last quarter of the calendar year and everything that’s happened. Some of the corporate banks have said: “We’re pretty much just not lending to new clients at the moment.” So it’s about navigating what’s better for the client at this point. Can they hold out? Should we move them to a second tier or a non-bank? It’s about navigating what’s best for them. And it’s always a team effort.

I’m having to transition developer clients into non-bank situations, for example, and they’re paying a lot more for it. Half of my business is bank, and now half is non-bank. 

You were named Commercial Finance Broker of the Year at the Women in Finance Awards 2022. How did it feel to take home the award and be named a leading woman in finance?

I was completely shocked because I’ve been a finalist a few times and I just assumed I’d be a bridesmaid yet again! But that didn’t happen, so I was completely shocked and overwhelmed.

When I joined the industry, I found it was pretty much one woman to every 99 men. I’ve definitely noticed it, but I haven’t really encountered anything where a man was chosen over me.

In fact, I’m actually more persistent than most men, especially when it comes to the problem solving or more difficult deals. I might get a few nos from one bank, but I will go around to find the right person at the bank to do it. I don’t know whether all men are as persistent as women can be when they really want something. We just go and get it!

Industry stats keep showing that the proportion of female brokers is falling. Do you think there’s anything that’s preventing women from joining or anything that you would like to see overcome to encourage more women into broking?

I think the first thing is just not having that steady income. I think that’s the real thing. You really do have to have that 18–24 months of savings behind you because it’s up to 18 months with lumpy income. And that is hard ... I think that is really something that would hold people back, especially if you have to consider the cost of childcare. 

But I just was telling a friend of mine the other day that it’s such a good job for women, especially working moms. You work for yourself, and you can pick and choose your hours. You can chat to your clients once everyone’s put the kids down for the night or meet them at the school playground at 10:30am to sort out their home loan.

What are your top tips for brokers looking to succeed in commercial broking?

I think it definitely is about research and knowing what banks do and don’t do. Know the policies at each different lender and know who lends what and how they do it and what their timeframes are.

I spend a lot of time reading the daily newsletters that come out, seeing who’s doing what, what banks are doing this, what SME is doing this, who’s new on the market, and who’s leaving the market. Research is very important. 

Also, make sure you are maintaining relationships with the people that you deal with from a lending side. So, for me, BDMs are a great source for that. Getting to know them in a personal way and touching base. Even if you don’t have a deal with them, just touching base, asking a question about something, “Has your policy changed on this? Are you expecting this to happen?” And most of them are fantastic at their jobs and they get back to you. If they’re not, find someone else because every bank, every non-bank, has multiple BDMs available. And sometimes, it’s just about finding the right fit for you. 

You can find out more about Melissa Ashcroft’s story in The Adviser’s Elite Broker Podcast.

Tune in to the episode, How Melissa Ashcroft became a leading commercial broker, below: 

[Related: How Melissa Ashcroft became a leading commercial broker]