Becoming a broker - Which aggregator?

[Mac]

Hi guys

I'm looking for some guidance and reccomendations on a good aggregator for someone thats just starting out in the industry.

I will be undertaking the cert IV shortly although am well aware that this means little.

also i would be interested in which to avoid, im sure many of you have stories to tell and i'm all ears!

Thanks for your help

regards

Mac

 

[Rolf Schaefer]

Over the past 6 years I have been CHOICE, PLAN and FAST and must say I prefer CHOICE due to their ongoing education and software support.

Others are quite happy with AFG.

Be sure to check your contract and see what happens to your trail income should you wish to join another aggregator or leave the industry.

Look for a good mentor; I was lucky to have one of the best brokers in the business as my mentor - Rolf Latham.

 

[Qlds007]

Mac

Firstly i must say you are a brave man to enter the industry when things are a changing.

Dont put down the Cert 1V as every broker will require this as a minimum come next year (far too late in my opinion but better late than never).

As well as the points raised by Rolf you need to ask any potential Aggregator whether they have a minimum period you need to be involved in the industry before they take you on board (Some require a 2 years minimum experience) and also ask them what lenders they have on their panel.

Some of the smaller aggregators have been axed by many lenders and therefore you are limited to what you can recommend and who you can introduce business to.

In the 14 years i have been in Mortgage Broking in Australia i have been with AFG and FAST. AFG are fine when you start out and require someone to hold your hand but when you dont really need the support other options are available. It is merely horses for courses.

 

[Rolf Latham]

Have used both Choice and FAST

I find Choice actually gives me something for me money

ta
rolf

 

[Bradsdad]

Yes a very brave move in the current climate.

I've put on 2 brokers as part of my role with my aggregator (no mention of name as I'm not here to advertise) from AFG who haven't been happy with them. AFG also recently cut there staff numbers in half.
FAST could be an option but they have no software available and require their MB's to have a minimum 2 years experience. If you have a lending background with a bank you would most likely be able to get around this.
I cannot comment on Choice except to say that I have a couple of friends who aggregate through them and they seem reasonably happy. I'm not sure what prerequisits they have.
Unless you have a solid referal base be prepared for a tough ride


Regards
Steve

 

[Mac]

Thanks for the heads up, ill be sure not to expect the world.

i will check out AFG and Choice, also has anyone had any experience with ballast in perth?

I currently have a reasonable job and would be looking to start part time, ive been wanting to start up for over a year now but keep procrastinating.

i have a few IPs with my partner and have been keen on property investing for a couple of years now, but i dont have a finance background.

a few friends have just purchased there 1st properties and ive been shocked by the level of service they've been given and the types of loans, i felt i could do a better job so now its a case of putting my money where my mouth is.

Mac

 

[Rolf Latham]

Hiya Mac

Depending on ur market, the level of advice and service can be irrelevant..............about 1 in 4 see loans the same as a fridge..........a consumer durable

More interested in cents, rather than common sense

ta
rolf

 

[Kenny]

Good point there Rolf,

As a lurker on this thread; I'd like to say that having some clients see your end product as a fridge may be considered complimentary too. Folks don't worry about their fridge failing unexpectedly.

Most people would choose a reliable, trustworthy service that is tailored to what they need over a feature laden you-beaut new product.

Cheers,

Kenny

 

[Belu]

as with any business, what would be your point of difference? If it is just service I doubt you would be able to provide that level of service when doing it part time after-hours when the people you need to talk to work during business hours.

Will you have time to work on it during the day, every day?

Just some advice from someone who ran a business both full and part time (after hours) at different points and it can be very difficult...

 

[Spectre]

Back to the question, i started with PLAN as an aggregator and found them pretty useless so after six months went to FAST. Fast is (or maybe i should say was) better in the sense that they had a better renumeration setup than PLAN offered.

The issue re the software for me wasnt a giant drama as it was cheaper to lease lending software than pay plan 20% of turnover.

Choice brokers are definitely better informed than what FAST gives out IMO. So I'm lucky that I know a few choice brokers who pass info on to me. Behind the scenes choice, fast and plan are all getting gradually eaten up by Challenger so eventually it will be one mega aggregator. But rolf and richard t would know more about that that I would.

Where Richard and Bradsdad are leading into is that lenders are cutting commissions to brokers by a big chunk and if that is all you plan on doing then I'd hope you're writing big dollars. Then the aggregators take their bit so it is making the overall profitability of the business reduce a whack.

I'd be inclined to have a look at Connective as well.

 

[Mac]

thanks for your thoughts guys, i really appreciate your wise words

i've emailed choice so will see what they have to offer and then try to compare others with them.

As for client service, i know a large amount of the population are content with just getting aloan, what shocked me was people that had plans to use property as a stepping stone for bigger and better things just being handed the easiest loan to get with no concern about the loan meeting there financial needs.

i live in a mining area with big $$ so property is often used to offset there tax and there is a high chance of repeat business so i hope to focus in this area of the market, any thoughts?

as for the broker industry where do you think the industry is heading and how would you deal with the turbulent times ahead?

cheers

Mac

 

[Spectre]

Mac

As a question - have you looked at how you need to be licenced by the MFAA/FBAA before an aggregator will accept you... not to mention the police checks, the insurance premiums etc

Its not just a case of finding an aggregator and then being able to write a loan for someone - it also takes about 3-4 months to get accredited and so on

Not to sound hard on you. From what I'm reading, I think you need to do a 2 year apprenticeship (at least) for a MB on a apprentice wage + some commission so you actually know what you're talking about between lender to lender and then you'll be ready to stand on your own.

If i were looking at being a start up broker today - not a trainee but a broker - if I didnt have the ability to write down about $20M in lending in the first 8 months that I knew I could walk into their house and acquire I wouldnt go into it. Not just think I could do it but know I would be able to get it - 100%

Then the next question is when or if the banks come around with the next round of commission cuts will you still be in business? Thats probably not a question many have thought about but most brokers dont want to as well.

 

[Bradsdad]

I believe there will be lucky to be anymore than 6 to maybe 10 aggregators about within the next 1-2 years. Also with the costs of memberships as COSL, MFFA etc increasing, PI insurance increasing, commissions decreasing and further regulation of the industry that MB brokers with probably reduce by 25% with 2 years.
It will be a hard slog but worthwhile for those that can ride it out.