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Become A Mortgage Broker.
Answers to Frequently Asked Questions.
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How much does it cost to become a mortgage broker?
Unlike mortgage franchise opportunities, which can cost many thousands of dollars to join, we do not charge any franchise style fees!
We just want you to write lots of loans.
We succeed the more you succeed... that is what's in it for us!
Having said that, if you are brand new to the industry, it is neccessary for you to enrol into Certificate IV in Mortgage Lending and carry Professional Indemnity insurance and invest in some resources (stationery etc).
We will outline all the details in our webinar.
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Why would people use a mortgage broker instead of going directly to a bank?
Convinience mainly.
Mortgage brokers are mobile and usually are available outside bank trading hours.
We have all the major banks on our lending panel.
35%+ (and growing) of all loans are currently written through mortgage brokers.
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Can I start a mortgage business part-time?
Yes! - The time commitments for a broker is very flexible.
We have mortgage brokers who have other businesses, other jobs, study commitments, child raising commitment etc and they manage to have a successful home loans business as well. Obviously input reflects output.
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Can I make money whilst I am learning the business?
Yes! - You can start generating commissions immediately!
You will be able to start marketing and networking well before you have completed the accreditation process. When you identify a prospective client for a home loan you notify your Mortgage Manager who will guide you through the process.
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Where do the clients come from?
You will learn several proven marketing strategies that you could implement to become visible to your marketplace.
Without doubt, the most effective method of having a continuous flow of clients is referrals from strategic alliances or partnerships that you form.
These could be with Real Estate agents (or real estate salepeople), Accountants, Lawyers, Insurance Agents and many other types of businesses.
These alliance partnerships might require you to remunerate your partner (not in all circumstances) from the commissions that the referral has generated.
Think about this, if you were prepared to offer 50% of all upfront commissions,would you agree that many partnership possibilities could result?
50% is very generous and unheard of but it will serve as an example.
This would be especially appealing to Real Estate sales people fighting for market share. If the referral leads they give you result in 2 – 3 loans per month, and you paid them 50% / 50% of upfront commission, they could earn an extra $2,000 to $3,500 per month by simply passing on the leads and opportunities to you… and you do all the work!
Imagine if you had 3 to 4 (or more) of these partnerships in place!
By the way, we never include our trailing commissions into the negotiations, that’s the jewel in the crown and should be preserved for you future and security.
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How much can I expect to earn?
We have an income calculator which allows you to project incomes interest rates and commissions.
You can see how this can build to a substantial residual income if you write 1 – 2 (or more) loans per week.
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When am I likely to see some income?
Usually commissions are paid monthly for all loans that settled in the previous month. Refinance loans can be much quicker than purchase and should settle within 3 – 4 weeks. We have a range of products including car loans, personal loans, car and home insurance all of which can generate income very quickly.
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Do I need an ABN (Australian Business Number) and pay GST?
Yes! - You will be paid your commissions with GST. You are a contractor / service provider and therefore attract GST. Everything (business related) that you pay GST on can be credited against the GST you get paid. NB GST is not compulsory until you generate $75,000 p.a. income
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What if there is a long lasting property crash?
This will not affect us greatly! The new generation of post crash buyers will be buying the crashed properties at heavy discounts, but will still need financing.
People will always need money just the amounts will be adjusted inline with the market conditions.
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What about all the competition?
There are two influencing factors that are worth discussing.
1. The home loan market share for brokers is expected to grow substantially from the present 35%. I have read industry experts suggest that we are heading the same way as USA where brokers enjoy a greater than 80% market share. There seems to be a common consensus that we will definitely grow to 50% within the next 5 years. The industry has a long way to go before we experience any market saturation.
2. Brokers retreat from the marketing frontline and spend their time servicing existing clients! What I am saying here is that when a broker has say 150 to 200 clients (could be after 3 to 4 years in the industry), then often the broker will spend most of his/her time servicing these clients and handling the referrals that will occur from these clients. When you consider that a client base of this size could result in an overall loan portfolio of $40,000,000 under management, and the broker receives 0.25% trail commissions, that’s $100,000 pa before the broker gets out of bed. A smart broker will spend his/her time preserving this client base through good service rather than to keep full-time marketing for new clients.
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Regards,
The Brokersite team
