Mortgage Broker?

C

coldfire

Hi all,
After much thought of where i want to go down career wise, something that did come to mind was a mortgage broker. So here comes a few questions for existing brokers out there, and people that have used them before.
In your opinion what makes a good broker?
What necessary skill sets do you beleive you need?
And any other relevant information really.
Again it may not eventuate into anything, but geting other peoples ideas, thoughts and suggestions is generally a useful exercise.

Looking forward to your replies.

Danny
 
Not a broker so may not be much help, but...

Are you going to try and build an agency from scratch, or are you going to work for an established office?

I don't need/want an answer, but it may have a bearing on the hoops you need to jump through.
 
In NSW you cant just start a brokerage business. I think you need to get qualified then work for someone for a few years before you can go off on your own.

It seems like a very flexible lifestyle! You can easily work from home.

Good luck!
 
I reckon the following are helpful for one to like the business


Persistence

A love for people

A willingness to serve

Half a logical thinking process, a thinker thats too logical will melt down with with the lenders, their cutsey behaviours, and consistent lack of corporate accountability.



If you also want to make more than job money you need to have or develop



Courage..........you have to be able to ask clients the hard questions, and provide leadership, sometimes pushing the boundaries of "normal acceptance"

Courage to push lenders beyond their normal limits in serving clients, at the risk of losing your licence ( accreditation)

Empathy.............if you cant work out where your client is at, you are lost.

Hard work.............you have to be prepared to do the hours and the miles.


ta
rolf
 
hi guys thanks for the feedback.

I was hoping to start my own company, But a part of me thinks perhaps working for somebody else first would be the best step as to get experience.

Anybody know a good place to start regarding regulations/laws of starting your own brokerage in Vic?

Thanks again

Danny
 
Regulations are now national so it doesn't really differ form one state to the next.

There's any number of qualifications you need to get, but ultimately you need to be a member of the MFAA or FBAA. If you meet these qualifications you're most of the way there. The main things required are:
* Certificate IV in finance/mortgage broking.
* 2 years experience, either working for another broker or being mentored by a qualified broker.

Take a look here http://www.mfaa.com.au/default.asp?artid=1857 for guides to entry.

You can also look at http://www.asic.gov.au for the new licensing requirements, but most of the industry is still wrapping their collective heads around this.

You also need a few other things, but they're reasonably straight forward. I'd say it takes about 2-4 months and $10k-$20k to get up and running in your own business. The down side is it does take a lot of sacrifice especially in the first few years.
 
i am considering a career in mortgage broking...so just wanted to know if i can start my own business after completing cert iv. or do i need to work for someone ?
below, uou mentioned the other option of getting mentored for 2 years, how easy is it to get this ?

with recent changes in laws, is mortgage broking still a good career to be in ?
 
eyespy said:
i am considering a career in mortgage broking...so just wanted to know if i can start my own business after completing cert iv. or do i need to work for someone ?
below, uou mentioned the other option of getting mentored for 2 years, how easy is it to get this ?

with recent changes in laws, is mortgage broking still a good career to be in ?
Click to expand...

Cert 4 has been superseded by the Diploma in Mortgage Broking.

Depending on ur target market the formal quals teach u as much about broking and finance as the theory driving tests do for driving a car.............

Most aggregators will not take on a freshy without finance xperience and will want them to work under the wing of someone for a while.

Plenty of experienced brokers that will do that.

ta
rolf
 
when you talk about beign mentored by another mortgage broker....do you mean employed by them ? and if so, whats the going rate for a freshy ?
or do you mean they just help you with whatever questions you may have out of the goodness of their heart ? sorry for my ignorance
 
eyespy said:
when you talk about beign mentored by another mortgage broker....do you mean employed by them ? and if so, whats the going rate for a freshy ?
or do you mean they just help you with whatever questions you may have out of the goodness of their heart ? sorry for my ignorance
Click to expand...

Where r ur clients going to come from?
 
eyespy said:
when you talk about beign mentored by another mortgage broker....do you mean employed by them ? and if so, whats the going rate for a freshy ?
or do you mean they just help you with whatever questions you may have out of the goodness of their heart ? sorry for my ignorance
Click to expand...

employed no.........

when you join an aggregator they will want some funds from your work.......usually 20 % of all your earnings until you get bigger volumes


The broker that may look to take you under their wing may be on a 90/10 split, thus they may a little on the new brokers smaller throughput and can mentor you.

ta
rolf
 
eyespy said:
when you talk about beign mentored by another mortgage broker....do you mean employed by them ? and if so, whats the going rate for a freshy ?
or do you mean they just help you with whatever questions you may have out of the goodness of their heart ? sorry for my ignorance
Click to expand...

There are brokers out there with formal mentoring programs in place. Some will employ you, some will simply mentor you whilst you run your own business.

Renumeration for the mentor varies from one arrangement to the next. Keep in mind that a mentor would be taking time out of their own business so most would want something for their efforts. There's multiple ways of implementing this.

The actual program put in place certainly varies, but it should involve a bit more than simply answering the odd question.

Mortgage broking can be a very good business to be in, but like anything with good returns, the risks can be higher. The saying that 80% of business fail within the first two years is very true for mortgage brokers - it might even be higher. I've met a lot of people who said they 'tried it out for a while'. The odds of success ultimately come down to you, but they can be improved with a good mentor.

Looking back on what my mentor has cost me verses what I got for it, I consider it to be money very well spent.
 
thankyou all for your helpful information. i actually want to do mortgage broking to supplement my income, not neccesarily as a full time thing.
thought it might be a nice side thing to add to my current job as a locum optometrist- so its not that big of a risk for me- something that it is worth trying out.
the 20/80 splits sound reasonable given they are helpign me out.....glad to hear mentoring can work in that way as i don't want to be employed/
 
I've just set u my own mortgage broking business and become a broker again. It is very costly to set up and very time consuming. Is also very confusing - or would be more so if you are new.

Become a lawyer instead, it is easier.
 
eyespy said:
thankyou all for your helpful information. i actually want to do mortgage broking to supplement my income, not neccesarily as a full time thing.
thought it might be a nice side thing to add to my current job as a locum optometrist- so its not that big of a risk for me- something that it is worth trying out.
Click to expand...

Mortgage broking is not something you can reasonably do on a 'part time' basis. I've mentored several brokers who held a day job whilst they established their business and I did so myself. In all cases, the plan has always been to become a full time broker within 2 years.

Every person I've met who treated broking as a hobby has failed miserably at it. My accountant set someone up to 'do loans' a few years ago and failed (despite having no end of good business walking in the door). I wouldn't suggest doing it just for the money either.

eyespy said:
the 20/80 splits sound reasonable given they are helpign me out.....glad to hear mentoring can work in that way as i don't want to be employed
Click to expand...

20/80 is the common split with an aggregator. You may need to negotiate the mentoring arrangement on top of that.
 
Last edited:
terry...when you say it is costly to set up, how so ? other than advertising, i cannot see what other costs. why was it so hard to set up ?

why do you say that i shouldn't attempt to do it on a part time basis ? i would think that most clients should be ok to talk/meet about their loan after hours- at night or weekend. if i am wrong in this then yes my plan won't work.

i would like to do mortgage broking full time if it is more profitable than my current job/

lawyer and financial planner....no, they don't appeal to me
 
You must log in or register to reply here.

Similar threads

T
Aussie Mortgage Broker Info Night
2
Replies
31
Views
7K
The excited One
T
N
What makes a good mortgage broker?
2 3
Replies
41
Views
7K
Mr. Fabulous
Mr. Fabulous
S
Financing process - first purchase
Replies
19
Views
3K
tobe
tobe
Jess Peletier
Choosing a Broker - a thread for the newbies
3 4 5
Replies
83
Views
13K
Biz
Biz
J
Brisbane Property Network Meeting
Replies
0
Views
1K
joanneverikios
J
Back
Top