Hi,
I'm considering entering the mortgage broking industry and was wondering if any of you learned people could offer any advice?
If anyone could answer any of the following questions I would greatly appreciate it!
What is the average rate of commission at the moment? Upfront and trail?
From my panel of lenders it's about 0.6 / 0.15 + GST. Even within an individual lender it can very periodically based on aggregator and individual metrics.
Do any franchises other than Mortgage Choice offer a truly impartial service (as they pay brokers the same commission regardless of the lender chosen)?
I'd say that MC pay their brokers badly regardless of the lender...
Seriously, I don't think any of the non-franchise aggregators do this, but most brokers worth their salt don't recommend based on commissions. In most cases, the difference is negligible and not worth a complaint.
Who are the most highly rated Aggregators/Franchisors?
Who has the worst reputation?
Very hard to answer these questions in a quick post. Aggregators will generally pay better and allow you to run your business the way you want to. Different aggregators have different support levels depending on what you need. Franchisors will often have lead generation and more support.
Factors to consider would also be a cross-section of their panel of lenders. Will in be able to meet the needs of your target market. Will the support you get be relevant to your desired target market.
Who has the best software?
In my opinion, none of them have very good software. I have access to my aggregators 'free' software, but I choose to pay for a third party product because it meets my business needs far better.
Who provides the best/most leads?
Those that provide leads will tell you they generate lots and they're good quality. I've found that leads generated by third parties (either aggregator, franchise or a specialist) tend to be time consuming and of very poor quality. I'd prefer a single referral to 20 paid leads any day.
Who has the best support?
Franchises will generally have better formal support for people with no industry experience.
There are some requirements that you need 2 years of experience with some aggregators and industry bodies. Most franchsies will give you this as part of their agreement. Most aggregators will require you to work under someone either as a part of their business or within a mentoring program.
I found a great mentor and for me this was ideal. I don't expect or need much aggregator support and thus I don't have to pay my aggregator much at all. I have the support of several of the best brokers in the country instead.
Feel free to give me a call if you'd like to discuss in more detail.