Q: I’ve been working in business administration for a few years but feel like I won’t ever get that far working for someone else. I’d love to be my own boss and have thought about a career in mortgage broking before, but I don’t know much about it. What do you think are the important things to know?
A: If you have drive and determination to build your own business, and you’re not afraid of rolling up your sleeves and investing time and effort, then mortgage broking could be for you. I personally think it’s terrific doing something that brings enjoyment to people and helps them achieve their goals; I wouldn’t swap it for anything.
It’s also an exciting time to be a mortgage broker in Australia. Interest rates are at a historic low, lenders are fighting for a bigger share of the home loan market and mortgage brokers are now responsible for more than 50% of loans.
A career in mortgage broking can take a number of pathways. You could be a mobile mortgage broker, you could choose to be a franchisee of one of the branded mortgage groups like Aussie, you could set up your business under a wholesale aggregator, or you could be a mortgage broker or loan writer that works in someone else’s business.
I think the benefits of a career in mortgage broking are vast, and can include things like:
- Work life balance – flexible hours to suit your lifestyle
- Rewarded for your work – the harder you work, the more you earn through uncapped commissions
- Choice in business opportunities – mobile, franchise, aggregation.
It’s important to do your research before deciding what path is best for you, and if you choose a branded group you need to work out which brokerage would best suit your needs. I think a strong brand is one of the biggest value adds for brokers, especially new brokers who have yet to build up a base of customers or referral partners. You can still build and run your own business, but you will have more support and a big brand behind you that gives customers security and confidence to walk into the store or call up.
When looking into different aggregators or branded groups, make sure you ask them what they offer in terms of:
- Initial training and induction
- Ongoing coaching, mentoring
- Additional business support such as credit, recruitment, sales, IT and admin
- Access to office facilities and support networks (if mobile)
- Commission and fee structure
- Average monthly settlements for their brokers / franchisees
- Incremental income through non-mortgage products
- Business leads – self-generated or company sourced, or both?
- Mortgage and customer relationship management software
- Marketing support – national, state and local
- Costs to buy in and set up a business including company registration, insurance, qualifications and industry memberships
- Opportunities for growth, expansion and building a saleable asset
- Wide range of lenders on the panel.
If you know any mortgage brokers ask them about their experience. You should also try to attend a recruitment night so you can get more information and ask questions. Aussie holds these regularly in each state and other groups might too.
Our YouTube video on becoming a mortgage broker might also help and it shares some of our own brokers’ experiences.
Are you a mortgage broker? What do you think is important to know before taking the plunge?
Do you want to ask John a question? Submit it here and check back each Sunday to see if it’s been answered.
If you found this article useful please share it using the buttons below.