Becoming a Mortgage Broker?

The stats from my Aggregator BDM is 68% don't last past the 2 year mark.

My question to him was;

Out of the 32% that do "make it" how many are from a non banking background and don't get supplied leads?

He said;

I dont know the answer to that.

I think about 1-2% who don't have a lending background (therefore no client base to take with them) or a regular source of hand fed leads will last the 5 year mark in this industry.

My 2 cents;

1. Do the course that is the cheapest and fastest to do. As Terry W said they are all pretty useless in the real world.

2. Hook up with a local forum broker if they will take you or a recommendation from them.

3. Offer to help them further their success in any way possible, either paid or unpaid.

4. Learn to market and network, online and offline.

5. Have a resilient personality that can roll with the punches that will come in flurries.

6. Hope you are part of the 1-2% (like me) who can make it!

7. I would suggest 40-100k to keep you going in the initial stages (first 2 years) depending on your circumstances.

8. Have a reason why (other than money) you want to be an MB that will sustain you through the tough times.

9. Everything else that was stated on here by the people who have made it.

10. You can pull all of the above of but if you don't already have the ability for people to like and trust you (aka charisma) within the first 5 minutes of meeting you then stick to what you are currently doing.

Allow 5 years to start making 200k+/year and a lot of knock downs along the way. That's assuming you have quality mentors and a driven personality combined with a passion to see others succeed. Average broker makes circa 70k FYI.

Good write up Colin, I think 1-10 are true for pretty much any new business endeavour
 
IMO, sometimes the best way to get a clients trust is to have no intention to act/behave as a salesperson. Often its just knowing your stuff and communicating it in simple and easy to understand terms.

Someone once asked me if I use any sales techniques when meeting with people. My answer was probably on a sub conscious level (depending on how you define sales techniques) but I just be myself and do what I can to add massive value to to person in front of me cause.

When I am seeing people out the door and they say they feel better about whatever they are desiring to achieve then that's a successful outcome to me.

Good feelings are not enough as you need to actually deliver on what you said in a timely and efficient manner remaining patient yet to the point through out the entire process. This is an art form in itself.

I wonder about these people that stand up in front of room full of prospects telling them they will be rich if they sign up to become an MB with them. They are either deliberately misleading and playing a numbers game or have not done the hard yards themselves and flogging just another product not realising or caring they are playing with peoples lives in doing so.

Like anything in life if you are hungry enough you will make it work whatever it takes whilst staying true and integral if you want to be in it for the long term.

Its a great industry and there is money to be made and you can influence peoples lives for the better so don't be put off by my perspective if this is what you really want to do.
 
The reality is, unless you an hit the ground running, writing $1Mil + per month initially, you need to set aside 12-18 months cash buffer. How much that equates to will depend on your circumstances.

For most, it will take 6 months at a minimum, just to start feeling confident with policies for 4 or 5 lenders, and to see a wide variety of scenarios, work through them and start to put the whole jigsaw puzzle of banks, policies, calculators etc, together. For many, it could take significantly longer

I think that without an existing database of ready to go clients, and extensive experience around lending, it's far wiser to spend 12-18 months working as a trainee/intern with a more experienced broker or with a lead generator like Aussie or LoanMarket, before attempting to go out on your own as a Connective, AFG, Choice, PLAN broker etc...

Trying to live off Aussie leads, or Loan Market leads or Mortgage Choice leads, requires a cash buffer, so while both are both great places to learn your craft , you MUST go into it with the attitude that it's a learning nursery only - with a view to leaving after 12-18 months and using the leads as your learning curve. The volume of leads should expose you to a wide range of scenarios, and while you'll get one month every now and then where 10 leads in a row are great, in most months the leads are unqualified rubbish, that serve only to build a "12 months from now" pipeline. You'll feel like you can survive financially off the 10 good ones, but being able to convert them will be difficult without a real sense of confidence - which people can sense you don't have , in a moment. People know if you know what you're doing or not.

So do an internship/apprenticeship with a view to making little or no money for 12-18 months. Have a cash buffer to cover you. Like many things in life - people think they know a lot about mortgages because they know a small amount, but mortgage broking is not just about knowing that CBA or ANZ has a particular fixed rate today or pro pack variable rate discount special today. Being a good broker requires sound policy knowledge, administrative skills, great time management skills and much more. And just as importantly - experience and confidence. It will take time to put the "package" of skillsets together.
 
Someone once asked me if I use any sales techniques when meeting with people. My answer was probably on a sub conscious level (depending on how you define sales techniques) but I just be myself and do what I can to add massive value to to person in front of me cause.

When I am seeing people out the door and they say they feel better about whatever they are desiring to achieve then that's a successful outcome to me.

Good feelings are not enough as you need to actually deliver on what you said in a timely and efficient manner remaining patient yet to the point through out the entire process. This is an art form in itself.

I wonder about these people that stand up in front of room full of prospects telling them they will be rich if they sign up to become an MB with them. They are either deliberately misleading and playing a numbers game or have not done the hard yards themselves and flogging just another product not realising or caring they are playing with peoples lives in doing so.

Like anything in life if you are hungry enough you will make it work whatever it takes whilst staying true and integral if you want to be in it for the long term.

Its a great industry and there is money to be made and you can influence peoples lives for the better so don't be put off by my perspective if this is what you really want to do.

This is golden advice Colin (nice to see you back on the forums!).

Do this, do it well and you're on your way. How fast you get there and the route to being successful may be different for everyone, but having the ability to gain trust, deliver on that trust and maintain the passion/hunger to make it work in any conditions are pretty essential ingredients to long term success.

Cheers,
Redom
 
This is golden advice Colin (nice to see you back on the forums!).

Thanks Redom. Biz has been going gangbusters the last while so no time for anything else outside of business and family commitments. Got some help with my business as well so that helps.

Been reading through posts last night and this morning and picking up gems left right and center.

Have missed my SS community :)
 
The stats from my Aggregator BDM is 68% don't last past the 2 year mark.

My question to him was;

Out of the 32% that do "make it" how many are from a non banking background and don't get supplied leads?

He said;

I dont know the answer to that.

I think about 1-2% who don't have a lending background (therefore no client base to take with them) or a regular source of hand fed leads will last the 5 year mark in this industry.

My 2 cents;

1. Do the course that is the cheapest and fastest to do. As Terry W said they are all pretty useless in the real world.

2. Hook up with a local forum broker if they will take you or a recommendation from them.

3. Offer to help them further their success in any way possible, either paid or unpaid.

4. Learn to market and network, online and offline.

5. Have a resilient personality that can roll with the punches that will come in flurries.

6. Hope you are part of the 1-2% (like me) who can make it!

7. I would suggest 40-100k to keep you going in the initial stages (first 2 years) depending on your circumstances.

8. Have a reason why (other than money) you want to be an MB that will sustain you through the tough times.

9. Everything else that was stated on here by the people who have made it.

10. You can pull all of the above of but if you don't already have the ability for people to like and trust you (aka charisma) within the first 5 minutes of meeting you then stick to what you are currently doing.

Allow 5 years to start making 200k+/year and a lot of knock downs along the way. That's assuming you have quality mentors and a driven personality combined with a passion to see others succeed. Average broker makes circa 70k FYI.

Amazing post Colin - thank you.

For someone just starting out as a mortgage broker, this is golden advice.
 
I am doing the Certificate IV in Finance and Mortgage Broking and Diploma of Finance and Mortgage Broking Management in February.

PM me if you like for the course details. Doing it with another forumite :)

That forumite would like to thank everyone who's contributed to this tread to date. Extremely valuable, useful and insightful stuff. Cheers!
 
I have asked this in the other forum, so I'm asking here again. please share your knowledge.

anyone know the variations or differences that the lenders pay the aggregators?
that is, what is the upfront and trail commissions that say ANZ pays to Choice, Plan, Vision, Fast, AFG, Connective, etc?
most aggregators have between 20 to 40 lenders on their panels. are these secret information or are they supposed to be transparent as brokers are transparent to the retail client/customers?

being new and researching I always come across brokers that said they are "best" pay by this aggregator or that aggregator. I have no base to measure what is that term ?best?

please share what you know to us newbees, or where can I find these information :)

thanks
 
anyone know the variations or differences that the lenders pay the aggregators?
that is, what is the upfront and trail commissions that say ANZ pays to Choice, Plan, Vision, Fast, AFG, Connective, etc

I believe it is the same across the board.

The difference will be your agreement with the aggregator. Typical split will 80/20 when your starting out and negotiable as your volumes increase assuming you make a direct agreement.

If you sub contract to an established broker then your agreement will be with them direct and they will have a seperate agreement with the aggregator direct.

Connective (and perhaps others) have various agreememts based on a monthly fee with the top tier being 100% commision to the broker but need to be doing 2 mill+ per month to make it worthwhile.

Go to the various aggregator websites for more info.
 
rail commissions that say ANZ pays to Choice, Plan, Vision, Fast, AFG, Connective, etc?

there is no secret

within reason, focus on that side of it doesnt pay dividends since you can jump ship from most aggs without much loss.

focus on your client first and foremost and the rest pretty much looks after itself

ta
rolf
 
I have asked this in the other forum, so I'm asking here again. please share your knowledge.

anyone know the variations or differences that the lenders pay the aggregators?
that is, what is the upfront and trail commissions that say ANZ pays to Choice, Plan, Vision, Fast, AFG, Connective, etc?
most aggregators have between 20 to 40 lenders on their panels. are these secret information or are they supposed to be transparent as brokers are transparent to the retail client/customers?

being new and researching I always come across brokers that said they are "best" pay by this aggregator or that aggregator. I have no base to measure what is that term ?best?

please share what you know to us newbees, or where can I find these information :)

thanks

To the best of my knowledge, commissions paid by lenders are the same regardless of the aggregator. I don't have any proof of this, but it is supported by various industry journalists which like to publish articles whenever a particular lender is offering a change in commissions structure. Whilst it's not explicitly disclosed, it's fairly easy to figure it out if you know where to look.

All people in the finance industry are required by law to provide clients with a "Credit Guide". In the case of brokers this needs to disclose the lenders they deal with.

I don't know what a basis for 'best paid' is either. Various aggregators have different cost structures for their brokers and they have different service offerings. It's no big secret to find out, you just have to pick up the phone and ask the aggregators.

Dealing with mortgage brokers should be fairly transparent. I get that people don't read all the documentation they're given, but it's all there.
 
can any brokers give me their experiences

close person to me wants to become a MB, and its not because of my involvement in RE, something they always wanted to do,

she wants to go out on it alone (obviously after getting qualifcations),

she has a marketing back ground, worked at a REA for about 20mins,

great people skills,

however, I am of the opinion that its not how good you are at your job per se, but more who you know, exposure and getting clients,

so if she goes at it alone, its going to be really tough, even in this market :(

whats eveyones experience, the brokers I use are all guns, but they are tops at their job and networks
 
TE - they still have to have an existing broker as a mentor. That's part of the licensing requirements.

You need to be mentored for 2 years. See if one of your gun brokers is willing to take her on as she will need the guidence and input.

Could be very stressful and dangerous venturing out on your own with no experience as people can be ruthless without even realising it.

There is a heap of traps and pitfalls to navigate in this game. If you have a good guide then you might make it. In my experience they are few and far between as most in this industry have no idea how to impart the information required with out a lot of effort from the mentee to extract it, and even then it could be average to poor advice.

And she needs to realise she will need a cash buffer or a partner to support her to see her through the first 2 years and also wont be able to borrow money for about 5 years unless other income is available.
 
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however, I am of the opinion that its not how good you are at your job per se, but more who you know, exposure and getting clients,

Sort of.

its very simple, just not obvious.

I believe its ALL a learnable set of skills, and the right heart.

how teachable one is, how big the dream or the nightmare is, and the associations one makes are the key differentiators

ta
rolf
 
however, I am of the opinion that its not how good you are at your job per se, but more who you know, exposure and getting clients

Its definitley both working together, however without clients you have no business.

If you have a good mentor to be involved in your deals and you can get the clients and persevere when things get tough you are well on your way.
 
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