Recently, Rate Money CEO Ryan Gair sat down with Broker Magazine to discuss how Rate Money was created and the key ingredients that have helped achieve its growth trajectory and sustained success. You can read the full story in the September edition of the Finance Brokers Association of Australia – The Broker Magazine

The following is an excerpt from that conversation.

How did you know your business partners, and how did the initial conversation happen that started Rate Money? Was it in 2019, or did the conversation begin much earlier?

The journey to starting Rate Money began with key relationships I had built over the years in the mortgage industry. I had known Glenn from our days as franchisee business owners, but our connection deepened when he called me one day. He said, “I hear that you’re out looking for warehouse funding [to start a new business]. I can get us a seat at the table with a funder if you’re interested.” At that moment, I practically jumped through the phone in excitement.

The initial conversations with Glenn happened in 2019, but my business relationship with Luke goes back much further—21 years, in fact. Luke and I first crossed paths at Mortgage House. Although he was in Melbourne when Rate Money was founded, our longstanding friendship made it easy for him to join the venture.

As we approached finalising the funding, Glenn and I found ourselves at The Treehouse in North Sydney, enjoying a medium-rare steak. I told Glenn, “We’re going to franchise this.” He was surprised, initially thinking we would each have our own offices and run them separately. But I insisted, “No, we’re going to franchise this business from day one.”

This conversation marked the real beginning of Rate Money. From that point, we were not just writing loans but building a substantial business with a vision for growth. We licensed the business from the start, with the goal of creating a sustainable and extensive operation.

Essentially, Glenn’s initial phone call and Luke’s eventual involvement were pivotal in transforming Rate Money from a simple idea into a significant presence in the mortgage industry.

Scaling a business isn’t without its own challenges. Tell me about your business model and how franchising has helped Rate Money grow.

Scaling Rate Money presented several significant challenges, primarily because we were essentially starting from scratch. Initially, it was incredibly difficult to sell what many saw as a “pipeline dream.” Recruiting staff was nearly impossible. Most potential employees were hesitant, preferring to work for established companies rather than risk joining a new venture. Many were sceptical, thinking, “If you make it to two or three years, we might come and work for you.”

One of the biggest hurdles was gaining credibility. We weren’t just mortgage brokers anymore; we were transitioning into home loan providers. At the start, we had no website, application forms, or established processes. Even our credit guidelines were incomplete, given that our partner was a commercial lender venturing into residential loans for the first time. We faced countless challenges, from creating professional-looking forms to matching our Australian Credit License details accurately.

Everything was new and required building from the ground up.

The goal was to scale rapidly, not to grow gradually over five years. We needed to establish ourselves quickly, and that meant everyone had to work intensively. We sought individuals who were ready to embrace the chaos and unpredictability of a startup environment. The message to potential team members was clear: “If you’re looking for a strict job description and are unwilling to step outside of it, this isn’t the right place for you.”

Franchising became the cornerstone of our growth strategy. It allowed us to expand quickly by leveraging the entrepreneurial spirit of our franchisees. By franchising, we offered motivated individuals the opportunity to invest in and grow their own branches under the Rate Money brand. This model not only helped us scale faster but also created a network of driven partners who shared our vision and commitment to success.

We have always been upfront about the challenges and I’ve told countless employees and prospective partners, “There are going to be heaps of humps and bumps along the way. But if you’re willing to come along on this wild ride, we’ll achieve great things together.”

Tell me about Rate Money today — do you have any stats or highlights you can share, number of employees, number of customers, other highlights/successes.

Since our inception in 2019 we have settled over $8.5 billion in loans, up from $4 billion in 2022/23, marking an increase of more than 110%, and our portfolio growth has been exceptional, with an increase of 44.8%. We’ve expanded our customer base significantly, achieving an 80% conversion rate for new loans. Our franchise network now includes 38 branches across New South Wales, Victoria and Queensland supported by over 1,000 broker referrers servicing more than 8,000 customers, with an additional 35 staff employed in our head office in North Sydney.

We’ve made significant investments in a custom-built CRM and automated workflow systems that have greatly improved our processing efficiency. This investment has reduced turnaround times, streamlined application handling, and minimised error rates.

Our contact centre has experienced a 200% increase in monthly call volumes. Despite this surge, we have maintained a Grade of Service in the high 90s, thanks to the automation and dedication of our experienced customer support officers. Our customer service approach extends beyond settlement, offering enhanced face-to-face support throughout the life of the loan. As a result, we have seen a 315% increase in customer compliments via inbound calls over the past year.

In recent months, we launched the Elevate Alt Doc Construction loan for self-employed Australians looking to finance construction projects. It offers market-leading flexibility, competitive terms, and generous green incentive discounts.
Over the past year, we also introduced a revolutionary tax return product for self-employed customers. This product simplifies the loan process by requiring only one tax return instead of the usual two years’ worth. Thanks to exclusive funding arrangements with two partners, it enables a faster transition from low/alt doc loans to full doc loans.

We are proud to say that we have truly revolutionised the homeownership journey for thousands of self-employed Australians while transforming the mortgage industry for the better. We’ve pioneered industry disruption by being the first to eliminate Lenders Mortgage Insurance (LMI), risk fees, application fees, and valuation fees for our self-employed customers. We were also first to scrap clawbacks without charging a risk fee and replace them with transparent commissions—a move that benefits our brokers and underscores our commitment to fair and ethical business practices.

Early this year, we were honoured with the Mortgage Manager of the Year award from the MFAA, recognising our achievements and dedication to excellence in the mortgage industry.

I read that this year Rate Money achieved $8 billion in loans settled, since you started it back in 2019. What does this milestone mean for you and the business?

Reaching the $8 billion milestone in such a short time is incredibly exciting for us at Rate Money. It reflects the success of our strategy to reshape the mortgage industry to better serve Australia’s two million self-employed heroes.

This milestone is not just a number; it represents our influence on the industry. Seeing others attempt to replicate our reductions in clawbacks and the removal of risk fees is a testament to the impact we are making. We’re proud to lead this change and remain dedicated to serving our customers while driving transformation.

Our growth is more than just business success; it’s about advocating for Australia’s hard-working, uniquely ambitious small business owners, who have often been overlooked by big bank lenders. Our franchisees are self-employed, so we understand what it’s like to run your own show. We are committed to continuing to spearhead these industry changes, ensuring that our customers benefit from more equitable lending practices.