what is the average number of loans a new broker in his/her first year is expected to write per month?

also which aggregators charge per transaction rather than a percentage of the loan value?

so how do I do such that my math is correct?

is it the drop off rate on the previous figure, not the gross figure?
if so, is this the right method to assess the trail book?
Year 1 = 100k – (100k x 5%) = 95,000
Year 2 = 95k – (95k x 5%) = 90,250
Year 3 = 90,250 – (90,250 x 5%) = 85,730
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theoretically, this method takes many years to totally depreciate the book value.

• This reply was modified 9 years, 10 months ago by  CharlieX.

I think Mortgage Choice franchise is about $45k at the moment. it is not a licensing model. base on my research, the licensing models are cheaper and more flexible.

regarding mentoring, what is the usual method for this process as required by the industry associations?

I have seen some programs charge zero dollars and some as high as $1000 per month. if it is on split of commission, what is the fair split between mentor and student? or can the mentor be paid a fixed amount or percentage of the upfront commission base on each loan settled by the student?

I have heard a few stories that the aggregator pays the commissions directly to the mentor, but the mentor just don’t abide by his contract with the student so the student doesn’t get his split. and the aggregator just refuse to intervene on the contract between the student and the mentor.

after heard of these stories, is it better for the aggregator to pay directly to the student, then the student pays the mentor. or perhaps the aggregator pays the agreed split to the mentor and to the student, to avoid the above kind of stories.

like to hear your experience, please share

I am no expert in property investment yet, but with my limited knowledge here’s my penny of thoughts.

if you have good credit and has the ability to pay/service your loan, I think the bank would probably like you to be on interest only because it get more money from you. if you are paying interest plus principal, then you are paying down the part that makes them the money (that’s the principal). if your terms is 5 years interest only, that means after 5 years then you have to pay both the interest plus principal to the bank. but most owners will probably refinance within that 5 years back to interest only mortgage, the only lender I know of that do not let you do interest only is Macquarie Bank if you have done this twice already (total of 10 years interest only).

on valuation, unless you are in a down market or in an area that properties are loosing value then the appraisal could come lower than the price you paid for the property. otherwise you were too eager to own the house so you paid more than market value for your property. I think most of the times, the bank appraisal value could be lower than your own appraisal value (your own valuer’s appraisal). if the values of these two experts are too significant, then perhaps both are incompetent or didn’t go to the same school/read from the same bible?

so a simple rule is that it is best to buy the worst property in the best area, rather than to buy the best property in the worst area :D

• This reply was modified 9 years, 10 months ago by  CharlieX.

goog example Jamie :)
very clear now

that means get an appraisal every few years if you think the value of properties go up in your area?
also does that mean not to go above 80% LVR so you don’t have to pay lender mortgage insurance (LMI)?

correct me if I’m missing the point in this example,
say I own a property that still have a mortgage balance of $300k but the property has increase in value to $400K now. That means I now have $100K equity in this property. If I refinance the property to 80% LVR = $400k x 0.80 = $320k, I would take that $20k to use as deposit for my next investment property.

due to the interest rate now being lower because of the RBA has cut the cash rate to 2.25% and most bank has pass on the 0.25% to consumer, is it easier to refinance now without proof of serviceability? say my above $300k property is at 6% interest rate, I now can refinance for say 5% interest rate without going through all the paperwork that many people hate to go through when refinancing a property. that means no pay slips, or profit/loss statement, and so on. it seems like a no-brainer to the bank/lender, that if I can service a 6% interest rate then how can I not service a 5% interest rate. obviously the current bank/lender may not want to refinance for lower rate, but another bank/lender would do this refinance without the paperwork?

• This reply was modified 9 years, 10 months ago by  CharlieX.

this is an informative thread, just found it.
will have to take time to read :)

thanks everyone for sharing

• This reply was modified 9 years, 10 months ago by  CharlieX.

Richard,
when you said “property security” do you mean the title ownership of the property or the equity of the property?

say the balance of the mortgage is $500k, if the owners just get the paperwork done correctly with the lawyer, could they now refinance the property for $500k on the now low interest rate without any docs?

or they could refinance the property to 80% LVR or $3.6M with low doc, so they can do the subdivision with the extra money?

objective regulations are good for the industry, but for people in the industry to regulate themselves is like having the fox guard the chicken house.

The first requirement to be a mortgage broker is that you must be a homeowner?

I would not go to a mortgage broker for advises on homeownership, if he/she doesn’t even own a home, nothing against renters.

the same for the real estate agency industry too?

too many fresh out of high school going straight into these industries, advising clients on the most important assets of their lives?
even carpenters, plumbers, electricians, auto mechanics, and so on, require additional schooling beyond graduation from high school.