What makes a good mortgage broker?

Hi All,

A good friend of mine is thinking about packing in his job at one of the big four and setting up his own independent mortgage brokerage.

As a friend who just happens to work in property and also be an investor (presumably his ideal client) he asked me the question, what do I think makes a good mortgage broker? Which got me thinking.

Clearly mortgage brokers along with other financial service providers are an integral cog in the make up of anyone with the goal of wealth creation, so what are some of the skills that fellow investors here and even the brokers here think are the key to success?

I think its great that he's actively looking to understand his market so thought I would help or at least get a small sample of opinions.

Thanks in advance.

Noodle

P.s. On a side note, we were discussing broker conversion rate of pre approvals turning into actual purchases. He reckons within his own private wealth division his conversion is around 75% which I thought was surprisingly high. Is he kidding himself to think this would translate to the real world? Or am I just being a cynic?
 
Noodle - its a very good question to be asking at startup and one that i spent a good 12 months getting to know before i embarked on this career choice. I spoke to other brokers, clients, agents, Big4 finance managers, accountants and everyday mums and dads - asking them the same question. Here's a few observations:

1) Building Trust: Some people had no idea what a broker does and how they can help you. Its important to be able to build trust with clients/partners. The following observations centre around this principal.

2) Communication: To be honest, i've met many successful brokers who aren't particularly good at this - but i've also spoken to some who are exceptional. They make you feel a lot more comfortable about the process and it gives the client an element of confidence in their ability to get the job done.

3) Knowledge: Perhaps i overstate this because of my background, but i think its important to have a broker that knows what their is doing/their policy/knows how to get the required information.

4) Building Relationships: The business is about delivering a service toi a client - building relationships with clients and referral partners is pretty important to being successful.

5) Being an investor: Perhaps its not soo important if your very adaptable, but it helps!!!

6) Being positive/high energy: If you love what you do you're much more likely to stick it out and go the extra mile.

Goodluck to your mate - i'm sure some of the longer timers in the industry on SS (Rolf/RT/Marty/PT/Jamie for example!) will have other very useful observations.

To a broader question - what ingredients do you need for success? I've found a great mentor is very very important. Finding someone that complements your skillset and fills in knowledge gaps is important too. I think many of the brokers on here have been mentored by others on SS.

If he/she wants to chat offline, happy to. :)

Cheers,
Redom
 
Hi Noodle,

Sorry a bit of track in terms of what makes a good mortgage broker but I think the most important thing is they need a plan on how to get sufficient enquiry coming in. You can be the best ex banker in the word but if you don't have leads your dead. You need constant enquiry especially when first starting out. If he doesn't have referral sources already where will he get these?

The next big thing is does he have12 months income up his sleeve. It takes at least 6-12 months to start getting any sort of traction. People do not show up ready to borrow immediately usually there is a significant lead time from initial enquiry to settlement. Which means there is an extended time where you don't make a cent.

I would also suggest they look at doing all the education etc before starting so that they can hit the ground running. You need a diploma now I think?

In terms of what makes a good broker.
- Thick skin.
- Emotional intelligence.
- Patience.
- Good with numbers.
- Problem solving ability.
- Business skills.
 
Hey Noodle, other than re-iterating what the 2 fellows above have said I've also done what your friend is looking to do ie leave a big 4 bank to start out on my own.

If your friend wants to have a chat more than happy for you to pass my details on and I can share some of the things I've learnt, what I wish I knew before starting out and some of the challenges I've faced along the way or anything else he may want to have a chat about!
 
A good mortgage broker is one who can understand their clients challenges, needs and problems, then apply practical and successful solutions for them, whilst always putting the clients interests first.

A successful mortgage broker is one who's excellent at sales and marketing.

Good and successful are not always the same thing.
 
Agree with all the others.

Pete's point is very good - you could be the most technically brilliant broker in terms of understanding complex structures and lender policy but that doesn't mean you'll be super successful.

Another quality to throw in is "efficient."

In this industry we're always dealing with tight timeframes - subject to finance clauses, cooling off periods, short settlements, etc. You don't want to be dealing with someone who's unorganised and tardy.

Cheers

Jamie
 
I just realised that all of the brokers I have worked with, spoken to or have ever dealt with are male. Industry trend?

I'd assume it's a predominately male industry - but there's some awesome female brokers out there. Some of which are the highest performing in the industry.

Cheers

Jamie
 
I just realised that all of the brokers I have worked with, spoken to or have ever dealt with are male. Industry trend?

One of my closest associates is a successful female broker, and I know many more- don't have access to trends but I don't think its a major issue in the industry.

Cheers, Ivan
 
Someone who can think outside the box and who doesnt just put deals to 1 or 2 preferred lenders then give up when their computer says no.
 
Someone who can think outside the box and who doesnt just put deals to 1 or 2 preferred lenders then give up when their computer says no.

^ On the ball.....

1. Quick and efficient communication
2. Think outside the box
3. Problem solver
4. Can plan plan and plan ...for the long term end goal
5. Know where and when to push to boundary ( safely) in term of policy/ approval and interest rate
6. Know when to say "no" - very important skill in this sort of "sales type" role :)

:p
 
A good mortgage broker is one who can understand their clients challenges, needs and problems, then apply practical and successful solutions for them, whilst always putting the clients interests first.

A successful mortgage broker is one who's excellent at sales and marketing.

Good and successful are not always the same thing.

Very true and is a big problem really! Our industry is structured so that volume is all that really matters. Spose is the same all over even widgets.
 
I just realised that all of the brokers I have worked with, spoken to or have ever dealt with are male. Industry trend?

Reply to my post then you can say you've spoken to a female broker :p

Kesse is a hot female broker who is awsome and doesn't need to refund trails because you get her awesomeness for nothing........what more could you want? ;)


pinkboy

Thanks PB, I think... BTW, I fixed your post for you ;)

As funny side note since your post I got a spike in visits to my website from SS. Lucky I don't have my photo on there as there would be some disappointed punters out there :D
 
Lucky I don't have my photo on there as there would be some disappointed punters out there :D

Take this as constructive criticism but I think you should change your username to your real name or business name and put up a pic of yourself for your avatar. You should also have a pic of yourself on your website. The pic of a guy on your website makes me think you're a guy but you're really a hot female? You'd know there's a lot of brokers on here vying for business and you might pick up some more if you were more transparent. I've noticed several brokers here have recently changed their username and started putting up their real pic like Peter has. This ads credibility. You should also left align your signature instead of having it centre.
 
Thanks everyone, great info. I have forwarded the thread link.

P.s. Did anyone have an opinion on the conversion rate debate? Whats the industry average for independent brokers?
 
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