Mortgage Broking in 2020

burge13

Brownlow Medallist
Jan 25, 2019
11,526
21,896
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
 
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.
 

checkraiseulite

Norm Smith Medallist
Jul 23, 2010
5,762
4,140
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.
 
Jul 12, 2011
33,629
24,412
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
 
May 20, 2014
20,822
26,444
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.
 
Last edited:

checkraiseulite

Norm Smith Medallist
Jul 23, 2010
5,762
4,140
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).
 
I’m thinking that to be a good commercial broker, I would want to be a brilliant personal/residential broker first.

Anyone still working in the industry?
 
Mar 26, 2015
10,217
16,470
The Land of Apricot Slice
AFL Club
Adelaide
Bumping this as we have used the same broker for our last 3 loans.

I was at the stage where I was willing to go online myself, but I rang the broker and said i'll give you the opportunity to see what he can do, as i've got no problem with the bloke making a living providing i'm no worse off.

His deal was on par financially with the deal I was going with, but only because he managed to get an unadvertised cashback with the credit union he had contacts with.

The only caveat is that i'll need to refinance before the 2 years to stay in front (because of annual fee for loan), so the broker may suffer some clawback.
 

burge13

Brownlow Medallist
Jan 25, 2019
11,526
21,896
AFL Club
Adelaide
Bumping this as we have used the same broker for our last 3 loans.

I was at the stage where I was willing to go online myself, but I rang the broker and said i'll give you the opportunity to see what he can do, as i've got no problem with the bloke making a living providing i'm no worse off.

His deal was on par financially with the deal I was going with, but only because he managed to get an unadvertised cashback with the credit union he had contacts with.

The only caveat is that i'll need to refinance before the 2 years to stay in front (because of annual fee for loan), so the broker may suffer some clawback.
I called a broker as I wanted a few scenarios laid out. Explained up front he was unlikely to get business out me as I wanted to know where I stood under each scenario first.

He was brilliant, found the best deal on each case, each with different lenders, explained everything. He was good

Ended up refinancing as he found me a cash back deal so I got 2k and a slightly cheaper rate. Annual fee about $200 a year more but I'll refinance in 2 or so years if no longer competitive anyway.

Think I read somewhere he gets 1300 up front plus 22 a month or something. Not bad for maybe 3 hours work all up!

I'm considering this as a career change. I know 5-6 financial advisors so I'm sure there'd be plenty of referrals if needed
 
Mar 26, 2015
10,217
16,470
The Land of Apricot Slice
AFL Club
Adelaide
I called a broker as I wanted a few scenarios laid out. Explained up front he was unlikely to get business out me as I wanted to know where I stood under each scenario first.

He was brilliant, found the best deal on each case, each with different lenders, explained everything. He was good

Ended up refinancing as he found me a cash back deal so I got 2k and a slightly cheaper rate. Annual fee about $200 a year more but I'll refinance in 2 or so years if no longer competitive anyway.

Think I read somewhere he gets 1300 up front plus 22 a month or something. Not bad for maybe 3 hours work all up!

I'm considering this as a career change. I know 5-6 financial advisors so I'm sure there'd be plenty of referrals if needed
Ours got $2524.50 initial, ongoing $70.12 monthly.

Apparently 50% clawback if between 1-2 years.
 
Back