Raine and Horne

A Holistic Approach HEY SAY AN AUSTRALIAN’s home is his castle. Indeed, the security of owning the roof over our heads is one of the reasons Australians have experienced a long love affair with residential property and enjoy one of the highest rates of home ownership in the world. For more than 140 years, Raine & Horne has been helping people from all walks of life achieve the goal of owning their patch of Australia – be it a home, a rental investment or a commercial property. This assistance has expanded to encompass mortgage broking, and now includes other services that allow the firm to leverage new technology to provide a one-stop-shop. A new division emerges In the early days of the colony of Sydney, a well-regulated banking system was low on the list of priorities, and it wasn’t until 1817, three years after Captain Thomas Raine first arrived in Sydney Cove aboard The Surry, that the Bank of New South Wales was established. By the 1830s Captain Raine was one of the bank’s biggest clients, and in time, he would become a director of the Bank of New South Wales. In 1834 the Commercial Banking Company of Sydney, which would later become National Australia Bank, began trading, and this was followed by the launch of the Bank of Australasia (later ANZ Bank) in 1835. However, it wasn’t until the boom period that ran from the early 1860s till the late 1880s, that significant numbers of banks would open their doors, all eager to take advantage of the prosperous conditions. There was no central bank. Each private bank stood or fell on its own credit, and following a number of bank collapses in 1893, pressure grew to form a central bank. The formation of the Commonwealth Bank by the Federal Government in 1911, was designed to fill this role. The burgeoning bank sector was important for Tom Raine and Joseph Horne’s fledgling business. Nonetheless, the terms on which buyers would pay for property were very different from those we see today. For example, in 1917 Raine & Horne auctioned land in the ‘Cranbrook subdivision’ straddling Double Bay and Woollahra. The terms were simple – a 10 percent deposit with the balance payable by 20 equal quarterly instalments with interest of 5 percent payable quarterly. In more affordable areas such as Northbridge, on Sydney’s North Shore, payment was required over 10 installments. In the ensuing years Australia’s banking sector became highly concentrated, until in 1985, then Treasurer Paul Keating granted banking licences to 16 foreign banks. This accelerated lending competition, and by the early 1990s, a new industry player – mortgage brokers, entered the market. Raine & Horne launches into financial services In the early 2000s, Raine & Horne recognised the opportunity to play a key role in the property supply chain with the launch of Raine & Horne Financial Services, which delivered finance broking services. The support of the new firm’s lending specialists was quickly embraced by home buyers and investors. Brokers were also attracted to the group because of its appealing commission structures and the well-established Raine & Horne brand. By mid-2008, the network had appointed its 70th mortgage broker. Providing a one-stop-shop T For more than 140 years, Raine & Horne have been helping people from all walks of life achieve the goal of owning their patch of Australia – be it a home, a rental investment or a commercial property 124

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