You love the property game, dealing with customers, and of course, winning sales and commissions. You’ve flirted with the idea of becoming a mortgage broker – but what does it actually take? Mortgage broking is a rewarding profession, but does take a lot of hard work, an applied knowledge of finance, and keeping abreast of compliance and best practices. Here’s what it takes to become a mortgage broker, and how you can hit the ground running.
What a good mortgage broker looks like
According to the National Finance Institute, a mortgage broker first and foremost has to look out for the best interests of the customer. They should have a valid Australian Credit Licence and uphold the rules and regulations. To figure out which type of loan is best for a client and why, a broker must look at the client’s specific goals, objectives, and financial and personal situations. They will look at the different parts of a loan application and show the best side of their client’s application to lenders. Good mortgage brokers push for efficient approvals. The service that is the work of mortgage brokers doesn’t end when the loan application is sent in; it goes on until and after settlement – and possibly help them with future home loans or refinancing.
The hard part made easier – aggregation
When striking out on your own, you’ll need access to a lending panel. This is easier said than done, as banks and non-conforming lenders (non-banks) may not want to deal with someone that’s just starting out and unproven. However, there is a solution to sidestep this drawn-out process, and that’s engaging with a credit aggregation company. Aggregation allows you to quickly access a lending panel that’s been collected (aggregated) by another company on your behalf. These aggregators can include Big 4 and smaller banks, non-conforming lenders, and even insurance companies. All of this enables you to provide your customers with the same level of choice as established players. Aggregators may also offer professional development and compliance support to make your life even easier!
Marketing your business
You’ve got the licence; you’ve got the lending panel – now all you have to do is get the word out. Your website will not only be where prospective clients may upload their documents, but your primary source of marketing. Combining digital marketing methods such as Search Engine Optimisation, Google Ads, social media marketing, and regular content creation will help raise your business’ profile. Attending networking events in your area – or even further afield – will also get you noticed. To get more clients quickly, you may want to incentivise referrals from existing clients; giving them a gift voucher if they refer a client, for example. At this stage, you may need to get some sort of finance to expand your marketing efforts.
Differentiating yourself
Being a plain vanilla broker is fine – but offering value added services can really go a long way in making you stand out. Provide ancillary services such as comparing energy suppliers and movers as part of your mortgage financing suite. If you can remove a pain point for a client without spending too much (or even getting another commission!) then it’s a big plus for your business – and you’ll go further in the long run!
