Buying a ‘Mortgage Choice’ franchise

Welcome Potsie,

I’m not a Mortgage Broker, but I think that many of them are feeling lots of stress from being overworked, frustration, anger, and even suffering from sleepless nights (well that’s the ones that care).

The bank’s seem to be impossible to deal with lately, with loans taking MUCH LONGER to be approved & settle.

They are “beating their heads against a brick wall”, and to me no money in the world is worth that.

Of course, things may change when the downturn happens, banks may actually want their service.

Just my opinion,

Good luck with becoming a broker,

Del

Del

Firstly, in regards to franchises.

I would advise against buying a franchise, I know a lot of companies that sell franchises and ask anywhere from $20000 – $50000. You have to ask yourself what is this paying for?
Do you receive advertising and how much?
How many leads is the company going to give you?

Like Terryw said, your best approach is to apporach a company that will give you an area and traing for free. They will generally take 20% of your commission, but look at it this way, your working and learning towards something better – your own company one day. In this regard, you do need to consider a few things – there is now a lot of brokers who have broke away and started their own companies, nearly flooding the market and competing against each other. Therefore, in some cases, it is more beneifcal to be a broker within a company ie. a company that offers great lead generation. You could earn more by being with a comapny like this, than going it alone, especially by the time you would be ready to go it alone.

Also, you may want to get in as soon as possible, because they are making it harding to be a mortgage broker these days and they are trying to regulate the industry, which will make it very hard for poeple to get into the industry, than previously.

If you like, I know some companies, that you might be interested in and could forward their details to you. These companies are not associated with myself, I just know them.

If not, the next best thing would be to grab a copy of The Mortgage Professional Magazine, a lot of companies advertise in there for brokers with no experience needed. They also have a website that you can but the magazine from, if you cna’t find it anywhere else.

http://www.mortgagemagazine.com.au

In regards, to commission, well $1.5m in loan amounts is not very much, depending on your area, considering house prices are min $350k in most areas, this means you only need about 5 or 6 loans per month. If brokers, were only doing this amount they would not be very happy. Our targets are min 12 per month, with an average of 20 loans per month/ settling. Top performer last month settled 40 loans.

[email protected]

Another interesting subject.

A question arises.If there is a downturn in the property market brought about by increased interest rates would a mortgage broker benefit from mortgagees re-financing their debt if they believe they this would be to their advantage.

Potsie,

Have you looked into a business coach/consultant type of business (Brad Sugar’s Active International or Icon are two that come to mind).

I don’t know much about these but the start ups are similar to mortgage choice, however you are dealing with businesses and don’t need to rely on a thrid party (Bank). The skill you need is to be a good communicator and help improve peoples businesses.

Anyone else on the board know much about Business Coaches????

W

Postie,

With those rates of commission you can go to any mortgage broker and work for them and not have to pay $35,000

And it takes ages for the money to come in. Just think, you get someone a pre approval, then they go and look for a property, then 42 days settlement, then the money comes in up to a month later. That $35,000 that you were going to spend on a franchise could help come in handy until you get on your feet. It is a years salary to many people.

Terryw
Discover Home Loans
North Sydney
[email protected]