Aussie Mortgage Broker Info Night

[The excited One]

This is my very first post, so if my thread isn't relevant please move it to somewhere relevant.

Last week I had contacted Aussie Home Loan for the position of Mortgage Broker and they had invited me to join their information night. Before I ask any questions here's a list of my background.

- graduated with an economics degree (with lots of finance courses)
- started a small MMO game where I had advertise a-bit until I had to close it due to my study load a few months later
- bilingual (knows more than one language)

So heres are the questions for current mortgage brokers (preferably the one who works with Aussie)

>what is the commission structure? is it similar to the one i had linked below?

http://edge.alluremedia.com.au/uploads/businessinsider/2014/08/mortgage-choice-banks.png

>will I had to pay to be a mortgage broker even if I work with a company (aussie)

> will there be any constant leads (works with Aussie) or cold-calling just like an average sales job

> do you need to use lots of financial calculations to conduct a search for the best loans to the client?

> how long did you spend on paperwork per client (just an average figure please i know it depends on different situations)

I actually starts to become interested at being a Mortgage broker because of its potential due to the inherent supply problem of the property market as well as population growth. Along with factors such as low interest rates and the continuation of negative gearing which creates a demand of property brokers from an increase of loans (since they deal with 50% of loans).

Oh and lastly some banks starts to raise commissions to brokers which further strengthens my theory that the industry had more potential.

I don't want to sound like an unemployed graduate who wants to get a quick buck but i can see the potential to use what i had learn and actually earning an income via current market trends and hard work.

 

[spludgey]

Technically, "bilingual" means speaking two languages, "polylingual" means speaking more than one language.

But that's besides the point.

Upfront and trailing commission seems what I'd expect, but I'm not a mortgage broker.

Personally, I've never gotten the feeling that there was a shortage of mortgage brokers. A lot of people seem to go straight to the bank rather than using a mortgage broker, which is often a bad decision.

And while an economics degree might help, I don't think it's necessary. You just have to be fairly clever and understand numbers very well.

Note that all of this is an outsider's perspective and I might be wrong on some aspects.

 

[The excited One]

Personally, I've never gotten the feeling that there was a shortage of mortgage brokers. A lot of people seem to go straight to the bank rather than using a mortgage broker, which is often a bad decision.

I thought its the opposite where people complains.

And while an economics degree might help, I don't think it's necessary. You just have to be fairly clever and understand numbers very well.

Interesting.

Note that all of this is an outsider's perspective and I might be wrong on some aspects.

Thanks anyway. Besides I will be asking some questions during info night anyway just checking the opinions from this forum.

 

[Marty McDonald]

There are few different Aussie models but unless you are buying a franchise I can guarantee you wont get trail and would guess you get about 50% - 65% of the banks average upfront commission.

Per week assuming full time:
Paperwork, loan admin and client communication allow 15 hours. Don't forget the ones that don't settle or don't convert from enquiry to application allow 15 hours. Allow 10 - X? hours for lead generation / business development / learning.

Obviously more time would be spent on lead generation / business development / learning at the start.

 

[GreyGhost]

I don't want to sound like an unemployed graduate who wants to get a quick buck but i can see the potential to use what i had learn and actually earning an income via current market trends and hard work.

Finance brokering is nothing like what you learn at Uni.

 

[j_p]

From my perspective, all the most informative and helpful (and therefore the ones I would utilise) brokers on this forum seem to have their own business and not a franchise. I never considered a company like Aussie.

 

[The excited One]

There are few different Aussie models but unless you are buying a franchise I can guarantee you wont get trail and would guess you get about 50% - 65% of the banks average upfront commission.

I was planning to start small as mobile broker, I heard it cost 8k is that true?

Per week assuming full time:
Paperwork, loan admin and client communication allow 15 hours. Don't forget the ones that don't settle or don't convert from enquiry to application allow 15 hours. Allow 10 - X? hours for lead generation / business development / learning.

Obviously more time would be spent on lead generation / business development / learning at the start.

I see thanks, exactly the same figure from what i had researched

Finance brokering is nothing like what you learn at Uni.

Sounds about right, thanks for the honest opinion.

From my perspective, all the most informative and helpful (and therefore the ones I would utilise) brokers on this forum seem to have their own business and not a franchise. I never considered a company like Aussie.

Well I had to join somewhere first to start getting some experience in the first place.

 

[The excited One]

Rumours

sorry to double post because I heard rumours from the internet that it cost 8k to even set up as a mobile broker in aussie is this true?

 

[Terry_w]

You have to think of the type of people that go to a franchise - the fast food equivalent of finance. There will be a large number of enquiries which go nowhere.

But it may be a good way to learn. Just don't expect to earn much, if anything in the first 3 months. BTW even if you were to find a client on day 1 it may take them 3 months to find a property, 6 weeks to settle and then another month to get paid. Then after 12 months they change lenders and you have to give back all the commission you received!

Ask them about their clawback policies, Most lenders are 18 month, but Aussie may whack a few extra months on top for themselves.

 

[The excited One]

You have to think of the type of people that go to a franchise - the fast food equivalent of finance. There will be a large number of enquiries which go nowhere.

But it may be a good way to learn. Just don't expect to earn much, if anything in the first 3 months. BTW even if you were to find a client on day 1 it may take them 3 months to find a property, 6 weeks to settle and then another month to get paid. Then after 12 months they change lenders and you have to give back all the commission you received!

Ask them about their clawback policies, Most lenders are 18 month, but Aussie may whack a few extra months on top for themselves.

thanks for the advice, i remembered the 12 month rule.

note: okay a bloke from aussies had been very honest with me, apparently the required cost is around 4-7k depending on laptop/insurance/training, if the cost has to be paid upfront my presence here would end since this sounds way to scammy to me especially for entering a profession like mortgage brokering.

 

[Kinnon Bell]

You will still have similar start up costs if you were to start your own broking business depending on what level you want to do it at.

 

[Shahin_Afarin]

There are few different Aussie models but unless you are buying a franchise I can guarantee you wont get trail and would guess you get about 50% - 65% of the banks average upfront commission

Thats a fair definition of a frontal lobotomy if I ever saw one.

 

[Peter_Tersteeg]

Hi The excited One

I don't want to come across as nasty, but there's so many things you're missing here. I would strongly suggest you speak directly with some other brokers that aren't operating under a franchise model. At this point you're only getting one particular sales pitch from a business with a very slick marketing process.

* Aussie commission model the broker actually gets is nowhere near what you're anticipating.
* You almost certainly loose any trail if you leave = little to no inherent value in the business.
* It costs a lot more than $4-8k to get established.
* Leads generated via mass media marketing are not good leads.
* Given the amount of recruiting that Aussie does, ask yourself why every broker you meet isn't an Aussie broker (hint: I suspect their drop out rate is very high).

 

[pinkboy]

thanks for the advice, i remembered the 12 month rule.

note: okay a bloke from aussies had been very honest with me, apparently the required cost is around 4-7k depending on laptop/insurance/training, if the cost has to be paid upfront my presence here would end since this sounds way to scammy to me especially for entering a profession like mortgage brokering.

Sounds as if you're trying to start a business from nothing. Personally with an attitude like this and no fortitude that there will be upfront costs to starting, I don't think you're cut out for business yet.


pinkboy

 

[Corey Batt]

Are you more interested in being a mortgage broker, or running a business?

Personally wouldn't touch a franchise with a ten foot poll.

 

[S.T]

Open up your own fish n chip shop, then the brokers will come to you!

 

[The excited One]

Hi The excited One

I don't want to come across as nasty, but there's so many things you're missing here. I would strongly suggest you speak directly with some other brokers that aren't operating under a franchise model. At this point you're only getting one particular sales pitch from a business with a very slick marketing process.

* Aussie commission model the broker actually gets is nowhere near what you're anticipating.
* You almost certainly loose any trail if you leave = little to no inherent value in the business.
* It costs a lot more than $4-8k to get established.
* Leads generated via mass media marketing are not good leads.
* Given the amount of recruiting that Aussie does, ask yourself why every broker you meet isn't an Aussie broker (hint: I suspect their drop out rate is very high).

Thanks man that is eye opening, I already suspect sth fishy about why brokers in here aren't aussies . Sorry for asking silly questions but thanks again for your insights.

Sounds as if you're trying to start a business from nothing. Personally with an attitude like this and no fortitude that there will be upfront costs to starting, I don't think you're cut out for business yet.


pinkboy

well i thought it would be contractor base instead of franchise base. That might be a huge flaw on my part.

Are you more interested in being a mortgage broker, or running a business?

Personally wouldn't touch a franchise with a ten foot poll.

Being a mortgage broker, but consider the majority of the community are independent brokers i think my naive questions had already wasted you time.

Open up your own fish n chip shop, then the brokers will come to you!

great idea!

 

[Marty McDonald]

Hit Corey up for an apprenticeship.

 

[The excited One]

Hit Corey up for an apprenticeship.

elaborate?

 

[Redom]

elaborate?

Corey, a reputable broker on the forums is based in Adelaide. His posted above. Perhaps give him a call and see if his willing to take you on as a mentee.

Being mentored by him/someone similar is likely to yield you much greater success. Having a great mentor is a very key element of success IMO.

Cheers,
Redom