I’m a lending manager for one of the major banks but thinking about becoming a mortgage broker. Can I ask about the challenges mortgage broker have at the moment, which aggregators you would recommend and what do I need to consider in relation to the commission structures?

Hi there Tina,

Good on you for considering this industry..... it's tough but it is so rewrding on so many different levels. With regards to challenges...... every business at every stage will always have challenges, but here are some of my thoughts on challenges / this to thing about for new comers:

1. What you will need to consider is will you be wanting to start your own business or working for someone and receiving a wage plus commissions.

2. Cash flow - (or the lack thereof!) is the biggest thing that you need to consider for the first 12 months at the least.

3. The accreditation process can take a few months too - from finding an aggregator / membership with MFAA/FBAA and then the individual accreditation..... THEN you are ready to go out and drum up business.

4. You will also need to have a mentor to assist you in your first 2 years in the industry - generally this will depend on the aggregator you go with. Some aggregators require you to use on of their preferred mentors

5. You then need to think how you will obtain business leads / clients. Friends and family are not always the best of lead sources so be mindful of that.

6. You will need to come under someones credit licence so will be a credit representative -this can be either under a brokers Credit Licence or the aggreators.

With regards to aggregators - they all have their strengths and point of differences. I am with AFG and am very very very happy with what they have to offer. There will be other brokers here who are raving fans of other aggregators and that is fine too!

Have a look at what the aggregator will provide to you with regards to software / websites / marketing solutions and support. Commission structure will all vary depending on your experience so this is very hard to answer.

Hope this enough for now though!! Good Luck!
Nicole Cannon
Pink Finance
0414 633 793

I have been a successful broker , banker and aggregator

So believe I have the knowledge to help

Please consider

Will Aggregation personnel help you build a business

What mentoring will they provide

How many loans as the Aggregator BDM ever written

What is the commission splits

What is the software like

What are the structures to ensure your business is compliant

If the aggregator lets you down will you own the trail book , will then economically penalise you if you leave

What lenders are on the panel

What are the fees and charges

Is your software aligned to AOL without having to do extra work

Do you need leads

Call Rosco 0411 696 696

Tina. Hi. Thanks for your question. This is not one that I feel suitable to respond to in a public forum, however as an MFAA Accredited Mentor it is something that I would be happy to meet up over a coffee and discuss.
If you would like to take up this opportunity then please give me a call
Best Regards
Ken Olds
Customers First Mortgages & Insurance
1300 ASK KEN