Becoming a Mortgage Broker

[bythebay]

Hi everyone,

Sorry if this is the wrong forum - please move it if it is!

I am interested in becoming a mortgage broker, not to work for myself - but more like working in a large well known brand like Mortgage Choice.

What are the steps to becoming a broker? I'd really appreciate any advice.

I have seen there is a course available - Certificate IV in Financial Services (Finance/Mortgage Broking). Which is quite a short course.

For any mortgage brokers - what's the job like, day to day? Is it hard to get a job as a mortgage broker - i.e. very competitive?

I'm 23 and have been running my own small business for 4 years. It's got to a level that I no longer need to be around during the day - only a small amount of following up work required (mostly emails <1hr each night). I have two IPs and servicability is a bit of a killer. So a job that interests me sounds great.

Thanks in advance

 

[Peter_Tersteeg]

I beleive Mortgage Choice offers a substantial amount of training to their recruits, including the certificate IV, which is the main qualification. There are additional courses that need to be done, but frankly it's an easy job to get the qualifications for.

If you're interested in working for a large franchise, you could approach them directly or via their websites. I doubt it would be too difficult to find employment. I beleive most of the brokers here are self employed, but larger successful firms are often looking for staff.

Frankly it is a very compeditive industry, at least initially. There is constant competition with branches and other brokers. The problem is not an issue once you've established a solid client base, but initially it can be tough.

Cashflow is also a big problem initially. Commissions aren't paid until at least a month after settlement. If the settlement period is 3 months, that means it can be 5 months between doing the work and getting paid. Some firms offer a salary and small commission, whilst others are commission only.

The hours can be long. Most brokers visit people in their homes. This means after hours work and often weekends. Not all brokers work on this model, but working 30 hours a week exclusively in an office must be earned.

If you're looking for an easy job with easy cashflow, mortgage broking is not that job. It's very hard work and can be under highly stressful conditions and cashflow can be very scarce initially. It's also very rewarding in many ways and a great industry to be in if you're successful. I genuinely love what I do, but I'd hate it if I were doing it as an employee.

 

[tubs]

Just curious, why would you want to work for a big chain when you could go it alone? You wouldnt be paying them commissions that way.

 

[dantheman]

It's true, it's bloody hard work The recent interest rate hikes have slowed things down for some people too.
But when things work out, it can be very fulfilling. And it goes hand-in-hand with property investment which we all love.

Checkout some of the industry publications to get an idea:
http://www.ausbroker.com/
http://www.mortgagemagazine.com.au/

If you do your Certificate IV first, you might find some of the Franchises are more interested in you, and you might get a rebate off your joining fee.

MPA mag did a comparison of franchises, although this was some time ago so probably won't be completely accurate. See here:
http://www.mortgagemagazine.com.au/detail_article.cfm?articleID=1142
http://www.mortgagemagazine.com.au/pdf/07_7.4_MPA_CoverStory.7.4.pdf
http://www.mortgagemagazine.com.au/pdf/07_7.5_MPA_P68_75_FeatureFranch_small.pdf

That should be enough reading to get you started
Franchises generally charge an upfront fee, plus a (sometimes large) portion of your commission in exchange for the brand and marketing assistance.

If you need any help let me know, I know a guy that's looking for brokers.

Good luck!

 

[Spectre]

BTB
Its a great job but all of the above stands.

When I started, I was with a big aggregator then decided that they werent overly supportive so I moved on.

But every day is a learning experience... we did have a prior post similar to this a while back, couldnt find it though....

Big ones are a good training ground but the guys I know who went with the big firms get annoyed at the amount of $ they keep (to some extent myself included which is why I got rid of them after 6 months of trading). End of the day I'm a believer that people deal with people not a brand, and most of my biz comes from referrals not the real estate agent set and forget loans (as most of the brokers I know get their biz from existing clients/family etc...)

What your 'issue' will be will probably be though is finding someone to give you a good commission/payment split off the bat.

Theres also heading to a mainstream bank for the training.

I've got heaps of contacts either way all in Brisvegas which would probably help ya out to some degree.

Regards
Richard