23 May 2024 Podcast: Bonus – How to Become a Mortgage Broker

We’re bringing something a little different to you this week! Today, Evelyn is deep diving on how to become a mortgage broker.

There are so many ways to structure yourself as a broker, and different pathways of entry.

Evelyn breaks down some key information such as:

– the qualifications and/or experience you need

– how to choose a mentor

– ongoing education and development

– models as an employed broker – PAYG, Commission, Retainer, or a combination

– aggregators – what they do, how to chose one, how you get paid

– her top 5 tips for new to industry brokers

– how to generate leads

And much more!

We hope this episode is valuable for any buddying brokers out there, and we look forward to hearing your feedback!

Find out your next step in property finance:

You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at
https://www.everlend.com.au/

There’s plenty more great content to come … so make sure you subscribe now on Apple Podcasts or Spotify so you don’t miss a thing.

You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at ​​https://www.everlend.com.au/

Get in touch:

Find out more about You Have My Interest at everlend.com.au/podcast and connect with us at podcast@everlend.com.au

You Have My Interest provides information and educational content relating to mortgages, finance and property. You Have My Interest‘s content is general in nature and does not take into account the individual financial, legal or tax needs or objectives of its audience members.

It is not intended as a substitute for professional advice. Listeners should seek out a licensed professional to discuss their individual financial, legal and tax requirements.

If you need mortgage or finance advice tailored to your own personal situation, contact Everlend today for a free consultation. Everlend are authorised credit representatives of Loan Market Pty Ltd, Australian Credit Licence number 390222.

Podcast produced with Apiro

Please find a Podcast summary below with the interview highlights:

“Bonus – How to Become a Mortgage Broker”

Evelyn’s latest episode takes a career-focused turn as she dives into the essentials of becoming a mortgage broker. After receiving numerous questions from listeners, she’s dedicated this episode to addressing the key aspects of starting out in the industry.

Key Topics Covered:

• Lead Generation Strategies: Tips and techniques to build a client base.
• Career Path Options: Should you start under someone’s guidance (PAYG) or go independent?
• Qualifications and Experience: The educational and practical steps required to enter the field.
• Building Relationships: How to establish connections and thrive in the industry.

Evelyn also tackles listener-submitted questions from a Q&A on Instagram, offering practical advice and actionable tips for aspiring mortgage brokers. If you’re considering a career in mortgage broking, this episode is packed with insights to help you get started!

Key Components

Education and Experience

• Minimum qualification: Certificate IV in Finance and Mortgage Broking.
• Advanced option: Diploma (offers business and marketing insights).
• The Cert IV covers foundational knowledge like loan terminology, governance, and compliance. The Diploma dives deeper into business operations and marketing.
• While theoretical knowledge is essential, hands-on experience is invaluable. Much of what you learn comes from practical exposure.

Mentorship

• New brokers: Mentorship is required for the first two years. A good mentor helps workshop deals, generate leads, and ensure compliance.
• Types of mentors:
  • Internal mentors (e.g., head broker or director in your company).
  • External mentors (through mentorship programs).
• Best practices: Clearly outline expectations and rules of engagement with your mentor to maximise value.

Professional Development:

• CPD Points: Brokers need 30 professional development points annually.
• Memberships: Join an industry body like the MFAA or FBAA.
• Insurance and Licensing: Secure PI insurance, AFCA membership, and align with an aggregator.

Aggregators:

Aggregators act as intermediaries, holding licenses and providing software for loan applications. They also support brokers with compliance and business development.

• Common aggregators: Loan Market, AFG, Connective, SFG.
• Fee structures: Options include flat fees with 100% commissions or reduced commissions for added services.

Entry Models

Under Someone Else’s Business:

• PAYG: Stable income, no upfront costs, but limited commission.
• Commission-only: Higher earning potential but requires self-funding for business expenses.
• Hybrid: Low base salary supplemented with commission.

Starting Independently:

• Requires savings for initial expenses and the ability to self-generate leads.
• Benefits: Full ownership of clients and commissions.

Gaining Experience

If you’re new to the industry, consider starting as a loan processor. This allows you to:

• Gain backend experience.
• Understand loan structures and compliance.
• Build confidence for broking roles.

Listener Questions

1. Do you need a lot of money for marketing?

Not necessarily. It depends on the type of marketing:

• Low-cost options: Social media content (Instagram, TikTok, LinkedIn) and Canva for designs.
• Investments: Networking memberships, video content, or events.

2. How long did it take you to get your first five leads?

It took a few months. I relied on networking, learning policies inside-out, and outreach. My first lead came from a letter I sent to a financial planner.

3. Five tips for new brokers:

• Gain loan processing experience or find a structured mentorship.
• Identify your “why” for becoming a broker and stay true to it.
• Network consistently and learn as much as possible.
• Always maintain a pipeline—don’t stop lead generation efforts even after securing business.
• Surround yourself with industry peers who uplift and challenge you.

4. Should you gain experience under someone or start your own business?

It depends on your financial situation and risk appetite:

• Under someone: Ideal for those without industry experience.
• Own business: Suitable if you have a strong lead base, savings, and a clear vision.

Wrapping Up Evelyn’s Episode on Becoming a Mortgage Broker

Evelyn concludes this insightful episode with practical advice for aspiring mortgage brokers, emphasising the importance of preparation and persistence in the industry. She encourages listeners to share the episode with anyone considering this career, making it a valuable resource for newcomers.

Evelyn also invites her audience to contribute suggestions for future topics, ensuring her content remains engaging and relevant. As always, she signs off with warm wishes and a promise to return next week with more valuable discussions. Don’t miss out—tune in and get inspired!