So, I've decided that I want to become a Mortgage Broker.
I've trawled internet sites, have listened to advice from close business acquaintances in the field, researched earning potentials and work quite closely with Mortgage Brokers at the moment and know this is the field I'm going to enjoy working in. I've bought a couple of properties already and really enjoyed the experience with the brokers.
I would like to work for someone (earning a reasonable base + commissions/trails on top). I don't have any experience in the field itself (writing loans) but will be undertaking training within a Big 4 and will soon be darting off applications and the like within a couple of months. I have experience in purchasing property, degree qualified, worked at a Big 4 for quite a while and am extremely driven.
I'd like to work for someone respected and extremely knowledge, so I can learn and build my own knowledge base. So, to the point…
1. Surprisingly, with all the mortgage brokers out their, I'm finding it a little difficult to find jobs.. I have found this on SEEK (http://www.seek.com.au/job/25828365) – any advice?
2. Does anyone know of anyone hiring in Melbourne, VIC for mortgage lenders?
3. Are their any brokers out there who can share some positive/negative stories from being in the field? ..
Thanks in advance,
Hi there
In order to achieve a reasonable base plus commission you would have to be bringing in quite a lot of business – and that won't be proven until you've been operating for a couple of years.
It's more than likely you'll either get paid a modest salary at the start or a split of the commission for loans you write. It's like any industry – you can't expect big things straight away.
I'll be looking to put on another person shortly – but I'm based in Canberra.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for the reply Jamie, completely understand. By modest salary I wouldn't be expecting triple figures, or anywhere near that. However, the advertisement I found on SEEK seems to spruik $150+ and it just seems a little strange.
It's either that, or work for a franchise owner of a Big 4 – e.g., working for a mobile lender. But I just want to make sure I find the right person with the right skills.
I know somebody that was in the same situation as yourself.
He actively approached mortgage brokers and explained that they want to pursue a career in broking… His response was quite good, it all depends on what you can bring to their business.
For example if you are fairly young you will be able to tap into a very large network of new professionals that they will find hard to break into (show them how many facebook friends you have!!)
The only problem is you wont get much money for a few years while you build up your reputation… but that's the reality of the industry!
This person did get a job fairly quickly and starting making good money after about 2.5 years.
Hope that helps!!
I assure you a mobile lender with any Bank would not be earning anything like that unless they are setting records week in week out.
I have been in the industry over 22 year both in the UK and in Oz so have built up a sizeable trail book but as Jamie mentioned you aren't going to do that in the first few years.
Many lenders do not pay trail in year 1 anyway so don't expect that to grow overnight.
I am looking to take additional brokers on in Sydney, Melbourne & Perth this year but certainly won't be paying them a base salary.
They will also be expected to source their own business although we will process their loans and offer them advice and assistance on structuring and some of the technical parts of loan planning.
If is something you are considering expect to start slowly and build from there.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
wealthyjvd wrote:However, the advertisement I found on SEEK seems to spruik $150+ and it just seems a little strange.Yeah that seems a bit misleading. By all means – it's possible to make that sort of money and more but not before you've written a loan.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for the advice and assistance guys,
Just to clarify, will most brokers pay there staff $0 base and then take a % of the commissions as well? That seems tough!
How does one start off in the industry with that?
Hiya
Yep its a common approach. The person taking you on needs to cover costs and also benefit in some way. They will have their own running costs and their aggregator will be taking a chunk of their commission too.
Personally, I prefer paying salary and would bring on a new person in a support role with the goal of training them to become a broker over a few years. Their salary would be revised over time and would be reflective of the amount of business they bring in.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I don't need anyone myself but I know my aggregator is looking for new loan writers for some of the larger groups, I'd be happy to hook you up. I have no idea what sort of remuneration they offer, it won't be $150K per annum though, I can assure you. To earn that sort of money you need to be generating a lot of work and at that stage you will be wanting to work for yourself.
Thanks Alistair, much appreciated. It would be great to have a discussion with someone around what they are looking for as they hire. I'll PM you
Given that you have not identified that you have any mortgage lending experience, you may be best trying to find an assistant / support role, if such a thing exists and learn the ropes first. I think you'll find it difficult landing a broker role with no experience and no qualifications, so would suggest you at least try to get Cert IV in Mortgage Brokering first. Try Kaplan Professional education.I'm not a broker (former bank lender), but have noticed that this seems to be the minimum standard for brokers these days. Also, a good mentor will go a long way, so don't go and work for any 'cowboys'. It will likely be tough for a while trying to generate a trail, so if you don't find a salaried role, keep some spare cash for baked beans.
Hi all,
I received some great personal advice from people on this forum and was absolutely stoked with the response I got from everyone. So, thank you all who contributed.
I will be writing loans in less than a month and will build on the experience I gain in-house to then propel me into becoming a broker.
I didn't want to create a new thread but I have another question, my partner and I have some cash and are struggling to think of what to do with it. It'll be from the sale proceeds of a property that didn't quite work in our favor and have decided to sell up.
I'm looking for a mentor or someone who can provide some advice in Melbourne or around Aus (I'm not too fussed). I'd really like to do a development, but whilst we both have great serviceability, the upfront costs are a killer for us. Is there anyone around who can provide assistance?
Your help is much appreciated.
Thanks,
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