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How to become a mortgage broker

Discussion in 'Business, Investment and Economics' started by Fab, Apr 21, 2007.

  1. Fab

    Fab

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    I am wondering if anyone could advise how to become a mortgage broker? My understanding is that it is a very simple and maybe a small course might be required. Also how to do you become a mutli - products (selling for example anz, CBA, NAB ...) product as opposed to one bank product broker?

    I hope that makes sense.

    Cheers
     
  2. Julia

    Julia In Memoriam

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    If you are correct and "maybe a small course might be required", then no wonder we have so much inappropriate lending!
     
  3. Flathead Flick

    Flathead Flick

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    It is only a small course, and apparantly it's pretty easy. Only problem with this area is that it has been flooded with brokers lately and people aren't exactly doing well any more. I know a couple who are looking to get out...

    But if it's really what you're after, selling multi-products is as easy as going throuhg a simple accreditation process with each lender. If you're with a copmany, they'll do it all for you. www.mfaa.org.au - the industry association (used to be MIAA) should have some info for you.

    Good luck.
    FF
     
  4. clowboy

    clowboy

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    I can't really speak for states other than WA, but having said that WA is one of the hardest to get acreditation so anywhere else will be easier than this.

    You need to

    Do an intensive 4 week course at tafe (or a non intensive 6-12 month one)
    You need to become a member of MBIA (I think thats right) Mortage broker institute of Australia (been a while). To do this you need a Full member (licensed) sponsorship.

    There are a couple of other things as well that are pretty minor, like a credit check and passing online training from there courses.

    You then need to become a member of a wholesale platform to provide data/software and access to all the lenders info etc. Currently the market leader in WA is PLAN.

    Then your cut on it all is decided. Plan takes there bit (this would usually be arranged with whomever you work for (the license holder). Then your employee (even though you are usually self employed) takes there cut and you are left with the difference.

    That said, if you don't like sales, and/or are not good at selling things then it is not for you.To make a living at it you really need to be able to sell a loan every three days. And with the housing market where it is that is only getting harder.

    Hope that helps.
     
  5. grumpee boi

    grumpee boi

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    I am a mortgage broker as well as a financial planner as it is handy to be able to incorporate both areas of finance into a plan. I was amazed at how easy it is to be a broker. I did a small course through Tribeca education, one assignment, one open book exam and then a workplace assessment. You will more than likely need to join the FBAA or the MFAA (I am with them). Until you gain 2 years experience you will need to work beneath a 'master agent' who will take a cut of your income. The aggregator (I am with AFG) will also take a cut. In my case my dealer group for financial planning also takes a cut! I don't use mortgage broking as an avenue to get rich (although the salesy types can and do) but more as an all-round service offering.

    Good luck with it all,
    Adam
     
  6. Flying Fish

    Flying Fish

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    gee sounds great. good thread:)
     
  7. doctorj

    doctorj Hatchet Moderator

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    Different states have different requirements.

    I understand in WA you're now required to have a mentor (for 2 years, if memory serves) as part of your training.
     
  8. Flying Fish

    Flying Fish

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    what about everywhere else?
     
  9. Fab

    Fab

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    I am in Victoria. Can't you take a 4 weeks course and then sell mortgage to anyone? What are the mortgage platform choice in Victoria for me to choose from?
     
  10. Fab

    Fab

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    Clowboy,

    When you mention PLAN being the leader I assume you mean Plan Connect. I understand they take a commission on your sales. Would you know by any chance how they exactly work?

    Cheers
     
  11. happytrader

    happytrader

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    Hi Fab

    Apply for an entry level position such as customer support and move from there. Training is provided.

    Cheers
    Happytrader
     
  12. clowboy

    clowboy

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    I think Plan connect is a sub group of them, it's been a while since I done any broking.

    http://www.planaustralia.com.au/indexInfo.html

    Short version they are a wholesaler, they do all the leg worth for independant (and even the big broking firms) with banks etc etc and provide software, rates training etc etc for the brokers.

    The website will probally explain it better than I could. As I said b4, when I was doing my course WA was the hardest State to get a license in, but the industry as a whole was going through alot of change.

    All in all while it wasn't easy (mostly jumping through hoops) to get qualified it also certainly wasnt hard, just time consuming and expensive (especially as you would likely be on a very limited income for the first 2+ years.

    AS Grumpee Boi said, only the sales inclined will get rich doing it. Many people like himself are now looking at it as an allround service. Financial planners / real estate reps etc etc.

    In all though if you have the cash flow to get you through the first few years and a little sales skills + a dash od dedication/hard work you can make some good money doing it. I was working for an independant guy who had one other guy working for him. The guy working under him was earning 150k+ (or so he told me).

    If you really think you want to give it a go, I suggest finding a broker and asking then if you can do some work experience with them. So long as you follow the rules and they do all the "broking side" of it with you just sitting in you should be fine. basically your work experience will just be a case of providing the broker leads. It's a good place to start though.

    Good luck with it all
     
  13. Fab

    Fab

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    Can't we skip the work experience part ? I am pretty sure I can sell mortgage straight after doing the course. I probably only need a good platform offering different mortgage and off I go and sell it to anyone who is happy with my service. I have got already a master in finance so I can't see any problem in understanding how mortgage works
     
  14. clowboy

    clowboy

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    What State are you in??

    In WA you could go straight and work for someone, but you still need to work under there license. You would still need to meet all the other criteria I already mentioned. Although I have heard he is a bit of a scammer, Aussie home loans is a good place to start as they proide alot of training, however I think it is really expensive starting up with them.
     
  15. investorpaul

    investorpaul

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    Hey Guys,

    Time to did up an old thread.

    I am thinking of changing career and have been looking into the mortgage broking industry. Ideally, I would like to operate my own business that I can start part time (currently have another business I operate) while I build it up before going full time at some point in the next 12 - 24 months.

    I understand that the legislation has recently changed and that I will be required to complete the Diploma, however, I was wondering if anyone who is currently in the industry can offer their thoughts and opinions on where it is going?

    Also I believe I am required to have a mentor for 2 yrs. Will I still be able to run my own business during this time or do I specifically have to work for someone else? Also how much of a cut does a mentor expect from the business I generate

    Thanks in advance
     
  16. tech/a

    tech/a No Ordinary Duck

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    I think they are canning rolling commisions.
    So getting paid and paid well will be more and more difficult.
    Some mates who have large Brokerages are hurting badly.
    No sales and less commisions.
     
  17. investorpaul

    investorpaul

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    Not much incentive if they get rid of trailing commissions. Any info on if this is going ahead 100% or just a concept they are investigating?
     
  18. tech/a

    tech/a No Ordinary Duck

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    Just checked it out a little more.

    Yes trailing Commissions are still being paid.
    Yes they have altered and every institution has
    different levels of commission and different hoops.

    Some deminish as time goes by.
    Some dont have any.

    Talk is to have a flat fee but not so yet.
    Industry believes that would be un workable.

    So bottom line is yes they are still around and no
    they arent what they used to be.
     
  19. investorpaul

    investorpaul

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    Thanks again for the info.
     
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