Aussie Mortgage Broker

[Jocker10]

Hi All,

Has anyone had any experience dealing with Aussie? There were also called Aussie Home Loans way back.

Now they call themselves simply "Aussie", as they now offers other products and services other than home loan.

I wonder if anyone would be kind enough to share feedback, comments , good or otherwise regarding this organization.

I attended an Information Night about becoming an Aussie Broker few days ago. It was very well done.

I have always been attracted to this line of work.

I just moved back from Noosa to Sydney . I am starting anew and exploring every opportunities available.

Some of the most respected people here in the forum are mortgage brokers. They are an inspiration. Would appreciate general advise and tips on starting out and mistakes that may be avoided.

I have read some interesting threads. But I can’t seem to find any about Aussie.

I also have some big questions: ( and hoping some people will share their thoughts)

1. Mortgage Broking - is this industry growing or shrinking ?
2. trailing commission - do you think it will stay.
3. If you are thinking of using a broker, would you consider Aussie?

Thanks …

 

[Wunderbar]

Well I have a friend who is a graduate mortgage broker. He's on 50k base + commissions. Not sure how much commission he gets from a deal but given that some banks don't even pay trail until the 3rd year I can't imagine it's that much.

Although I have heard from other sources that as an Aussie broker - you only get $600 per home loan that you close. That's pretty crap but I guess the company itself generates a lot of leads so you're basically just filling in information rather than trying to source clients. That's the tradeoff vis-a-vis going out on your own.

 

[Peter_Tersteeg]

1. Mortgage Broking - is this industry growing or shrinking ?
2. trailing commission - do you think it will stay.
3. If you are thinking of using a broker, would you consider Aussie?

1. Shrinking in number of practitioners, growing in market prentration.
2. Hard to say, but trail will probably disappear eventually.
3. I'd use one of several brokers from the forum who has demonstrated a working knowledge of investment property financing.

If you're considering getting into broking, perhaps you should talk to several brokers face to face. Attending a recruitment seminar is essentially a sales process for a franchise. You may not get reasonable comparisons to the industry as a whole, just their spin.

 

[Rolf Latham]

Hi Jocker

If u are looking to get in there as a franchisee with a shopfront thats a BIG deal that needs a lot of homework.

If you are looking to join them as part of their sales force then thats a different thing with a much lower level of committment

New loans growth is the lowest it has been for 10 years according to the latest figures. The upside is as Pete said that Broker share is growing and I believe will continue to grow for some very simple reasons.

Trail comm, dunno, but without it there is no point running a business, unless one finds other streams of income OR charges consistent upfront fees

If one doesnt know how to choose a broker or doesnt know one from referal sources then I suppose the bigger the brand the more comfort there is for a new service user.

There are no "good lenders or broker companies" there are only good people.

ta
rolf

 

[tobe]

Aussie, and Mortgage choice provide some good training, however you pay for this with commission splits and franchise fees.

If you were prepared to give it a go for 2 years, it can be a good way to break into the industry.

However, dont expect to make any money those first two years, and realise any trail and customer base you build up gets left with the franchisor.

Another option would be to find a mentor, and become their apprentice. Same gig, no money for 2 years, but a bit cheaper on the franchise fees, and depending on the mentor, a better start. This option isnt nearly as ego inflating as 'buying your own business'.

 

[Spectre]

With this if you're a new entrant and no experience you need to hit things running fast. Especially if commission only and have about 3-4 months cash reserves up your sleeve until you start to earn some money.

Just because you write the loan it you often dont get paid for this amount of time

Then again this is why brokers should be charging in some aspects fee for service/time.

 

[Rolf Latham]

Another option would be to find a mentor, and become their apprentice. Same gig, no money for 2 years, but a bit cheaper on the franchise fees, and depending on the mentor, a better start. This option isnt nearly as ego inflating as 'buying your own business'.

Hiya TB

The below is my experience

When we used to be in the sub-agg game, more than one of our folks made 100 k a year plus in their second year and most of those have built a VERY substantial business ( many of those that didnt do well in the first 3 to 6 mths did not survive at all). Regardless of how good your systems or mentorship may be, at the end of the day, the people you work with has more to do with their success than you do. Unfortunately most of the "revolving door" franchise systems wont tell you that. Commercial reality, and the lack of predictability as to what is a good candidate demands a numbers game.

While I appreciate times are different, they arent..............I know in my heart that the right operator can still do the 100 k in the second year.

ta
rolf

 

[tobe]

Agreed, very few wealthy people work at Aussie without a multifranchise/shopfront etc with a large overhead.

Many wealthy successful brokers left the large franchisees to run their own business.

 

[Rolf Latham]

That's pretty crap but I guess the company itself generates a lot of leads so you're basically just filling in information rather than trying to source clients.

Id guess its a bit more than an "order taker" role.........coz at 3 leads a day youd be on 6 k a week on a close ratio of 2/3

ta
rolf

 

[want2bewealthy]

Thats right, Ive got a good mortgage broker and hes always been able to get the deal done. He has some very innovative thoughts that have helped get me through.

He is also an investor with 5 properties under the belt, which helps alot because he knows exactly where were coming from.

 

[Mick C]

Hi Jocker10-

As a new broker i would avoid the large franchisee model
1. Entry cost is high
2. Aussie only allows you to recommend lenders on their panel- so this creates a limitation in how you can help your clients at times, ok for the standard 80% LVR deals...but not so good for the more complex deals.
3. In this industry it takes time to build up a client base, trail and income - So joining a large franchise would be hefty in the outgoing for he first few years!
4. Is you join Aussie or MC etc, it would be beneficial to have a shop front ..else your paying nothing in term of branding..


The broker market is more well known to the regular consumers now; they understand how we work and operate and the advantages we can produce.

If your wanting to join this industry, go speak to a aggregator first and they will help you out!

Tip: choice of aggregator is very very important.

Regards
Michael

 

[Wunderbar]

Yeah like others have said, best way is to get a mentor to become a full MFAA member. Then you can do your own deals using your own network/clients.

 

[Wunderbar]

Id guess its a bit more than an "order taker" role.........coz at 3 leads a day youd be on 6 k a week on a close ratio of 2/3

ta
rolf

Given the amount of employees that Aussie has - you're unlikely to get that many leads for one person. Plus I don't really think any broker could handle such a large volume of clients/leads.

 

[Peter_Tersteeg]

Given the amount of employees that Aussie has - you're unlikely to get that many leads for one person. Plus I don't really think any broker could handle such a large volume of clients/leads.

It can be done with the right systems and staff.

 

[Wunderbar]

It's just a simple numbers game. Having 3 leads per weekday equals to 780 clients per year for one broker...There's simply not enough people, let alone borrowers, in any Australian city to support that. Although, it is nice to dream haha

 

[Peter_Tersteeg]

I can assure you there are brokers out there that average 3 or more enquiries per day, but they are not the solo guys who work out of the spare room at home and come see you after hours.

 

[Marty McDonald]

I can assure you there are brokers out there that average 3 or more enquiries per day, but they are not the solo guys who work out of the spare room at home and come see you after hours.

Yes agreed it's very possible. At mc before I left (2 brokers, office and full time admin assistant etc) we used to get on average around 100 enquiries a month. Spilt say 25% head office leads and 75% repeat and referral business. So say 2.5 a working day each broker. We were biggish but by no means the biggest in the network.

Back to the Aussie question the reason I am no longer with a brand is that in my opinion the model just isn't viable since the commission cuts. If they get rid of trail altogether it will be even less so. In additional where we were based seemed to get many more enquiries from head office than in other areas. So moving back to Sydney where I was only expecting 1 or 2 group office leads a month it seemed crazy to forgoe 40% of income just to get the 2 leads. Plus pay $40k for the franchise. Aussie may be better not sure.

You definately need a source of regular leads to get going when you start though so it's a hard decision. Mentoring from a broker approaching retirement with a big client base I reckon would be the way to go if I was new to the industry.

 

[Rolf Latham]

Given the amount of employees that Aussie has - you're unlikely to get that many leads for one person. Plus I don't really think any broker could handle such a large volume of clients/leads.

I agree

That was my point in a round about way.

The OP mentioned that the role would be mainly a form filler role, which it sure isnt ..........

Many a single broker I know can run 2 or 3 leads + a day, my experience ( and eveyone's is different) is that out of 3, you will be lucky to actually work on one and settle a half or less.

ta
rolf

 

[Jocker10]

Thanks for all your quality comments and insights.

It somehow confirms my thought that:

1. It is not easy to break into this industry
2. One needs to have deep pocket to start.
3. Good operators get good reward.

It is encouraging to hear that loan via Brokers is growing as mentioned by PTBear and Rolf.

My plan is to start as broker and learn as fast and as much as I could and gain experience.So first thing first. I will take the course to gain qualification and gain accreditation.

Again, thanks for your comments.

I got another big question for all brokers here and I wish you will share again your experience .

Have you encountered a scenario, where you recommended the most suitable loan product but the potential borrower instead of signing up with you, signed directly with the lender ?

(PS: if this is a wrong question or something that should not be discussed here in the forum, please ignore it, )

Thanks Jocker10

 

[Rolf Latham]

Have you encountered a scenario, where you recommended the most suitable loan product but the potential borrower instead of signing up with you, signed directly with the lender ?

Hiya

That does happen and some of the reasons are

1. Lack of trust in the broker
2. A branchie has offered some form of sweetener that a broker may not be able to, for example, a fee rebate

If you as a broker do your job properly this sort of thing and similar frustrations are rare. You have a much bigger issue with direct lender contacts consistently looking to "help" clients simplify their complicated structures on a post settlement basis.

It is what it is, and if a client uses my structuring idealogy to implement a the loans themselves, I see it as a compliment. In that instance, these days we do charge a small fee as part of cost recovery.

ta

rolf