Mortgage Broking in 2020

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burge13

Premiership Player
Jan 25, 2019
3,844
6,556
AFL Club
Adelaide
Aren't they going to do away with commissions and become a pay per service industry?
Meaning customers no longer get brokerage services for free, they have to pay as the banks don't pay the commissions...

This was the talk last year and the decision got delayed i think?

With all the info available online via comparison websites I really don't think people will pay much for the service if it goes that route. That said if it stays commission based, you can make good money for only a cert 3 (I think it is).

I don't think it's remotely future proof pending that commissions decision
 

rdhopkins2

Carpe Diem
Oct 1, 2002
17,567
9,625
Melbourne
AFL Club
Hawthorn
Other Teams
Box Hill Hawks
Aren't they going to do away with commissions and become a pay per service industry?
Meaning customers no longer get brokerage services for free, they have to pay as the banks don't pay the commissions...

This was the talk last year and the decision got delayed i think?

With all the info available online via comparison websites I really don't think people will pay much for the service if it goes that route. That said if it stays commission based, you can make good money for only a cert 3 (I think it is).

I don't think it's remotely future proof pending that commissions decision
I think this was suggested but won’t be followed through on.
 

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checkraiseulite

Premiership Player
Jul 23, 2010
4,954
3,261
AFL Club
Hawthorn
like anything the top brokers make a fortune and the majority scrape for a pretty ordinary living.

i am not a broker but work with them from time to time. the fees they make on the non-vanilla loans would make your eyes water. the mum and dad mortgages will go online etc but there will be a need for brokers still for more complex loans.

need to be switched on and able to network very well (with referrers in particular) if you’re going to go into this field.

having no conscience is also a plus.
 

kaiserchief13

Brownlow Medallist
Jul 12, 2011
26,146
17,715
Melbourne
AFL Club
West Coast
Other Teams
Eagles, Lakers, Bayern, Trojans
Brokers can get about 0.7% upfront commission from a homeloan. So say the organise a customer borrowing $400k, they will receive about a $2800 payment, not bad.

If brokers get into commercial lending (which requires more qualifications I believe) if they get a massive loan like a $100k loan they have potential to get an upfront commission of triple figures...

like checkraiseulite mentioned if you are a good broker you will be rich as hell. if you get no customers though you will be poor
 

Hamingja

Brownlow Medallist
May 20, 2014
15,828
19,677
AFL Club
Geelong
It's not so much about attracting customers but attracting good customers. I think you would want to have an affiliation with an accountant or financial planner etc for referrals or have an existing large professional network to mine.
 

Walkernor

Draftee
Aug 22, 2020
9
5
Ontario Toronto
AFL Club
Fremantle
If you're interested in the financial field you'll do a good job. Also, keep in mind that this job is not only about selling, so try to develop your analytical skills in order to have a better success in this field. A friend of mine has been working as a sales manager for almost 8 years, but he couldn't see his future in this area. He moved to a mortgage company and is working as a Mortgage Advisor London now. It's a job with huge perspectives, and he's really pleased with his income. Moreover, they are paid based on commissions, so it's up to you and your struggles how much you'll get. Thus, that's the best option for the actual economic situation.
 
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checkraiseulite

Premiership Player
Jul 23, 2010
4,954
3,261
AFL Club
Hawthorn
most of the commercial / development brokers i have come across are ex big 4 bankers. they do very well.

competition is so fierce in the mum and dad sector that i think it’ll be pretty tough to make good money (it will all go online anyway). you will need to have a niche - for example there are brokers who specialise in catering to medicos or lawyers (who may be able to access loans others can’t and may seek out a broker in that area).
 

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