What do mortgage brokers do?

Brokers work with clients to determine their borrowing needs and capacity. The broker then selects a loan suited to the borrower’s aims and objectives. The broker manages the loan process from application to settlement.

To be a mortgage broker you’ll need to be financially literate, and have excellent customer service skills

What is the difference between using a mortgage broker and a bank?

Mortgage brokers have access to a wide range of lending options available from banks and other financial institutions.  A mortgage broker can compare features, rates and lending policies and select the best solution to match their customers needs.  

Dealing with a broker rather than a bank has the added bonuses of:

Unbiased opinions

A mortgage broker will look at a range of lending options and will choose the best one for the borrowers needs.  Where a bank will try and sell the borrower their product only.

Convenience

Brokers are mobile and can meet outside of bank trading hours

Personalised service

Much of the communication between the lender, solicitor and real estate agent will be managed by the broker. This greatly reduces stress and hassle for the borrower.

Greater expertise

Brokers are dealing exclusively with loans all day, every day. It’s what they specialise in.

Is there a demand for mortgage brokers?

Yes. The demand for qualified and ethical mortgage brokers is growing. More than ever before, customers are seeking expert advice from a trusted source for mortgage options. 

Are there fees involved to become a mortgage broker?

Just like any start up business, there are fees involved. However when you think about the return you’ll get on your investment, these fees are extremely minimal.

How can I trust that you’re a credible and reliable company?

Become a Mortgage Broker and Vault Mortgage Corporation are established companies and have held continuous registration with ASIC and the Credit and Investments Ombudsman since 2006.  You can contact us, read our testimonials or pop into our Sydney office for a face-to-face chat. 

Can I make money while I’m learning the business?

WHAT ARE THE PAY LEVELS?

With our business, yes, you can start generating commissions immediately. You can start marketing and networking well before you have completed the accreditation process. When you identify a prospective client for a home loan, notify your mentor, Daniel and he will guide you through the process.

Brokers are paid by the lender and receive an upfront commission and a trailing commission on the loans they settle. 
It is not standard industry practice for a broker to charge a customer for their service.
Although, the changes to the new Credit Legislation may mean some brokers will charge a fee and receive a commission. Brokers should disclose this information before a client engages the broker’s services.

WHAT IS A MENTOR?

When you have less than 2 years experience in mortgage lending, mortgage broking or finance broking, you must be nominated by another member to obtain industry membership. It is an industry requirement that the member must mentor you until you have gained at least 2 years experience.

Where do clients come from?

Daniel will teach you several proven marketing strategies to become visible in your marketplace.

The most effective method of having a continuous flow of clients is referrals from strategic alliances or partnerships that you form. These could be with Real Estate agents, Accountants, Lawyers, or Insurance Agents.
Some alliance partnerships may require you to remunerate your partner from the commissions the referral has generated. This is often very appealing to Real Estate agents who are fighting for market share. If the referral leads a real estate agents gives you result in 2 – 3 loans per month, and you paid them a percentage of upfront commission, it’s a win-win for both of you.

Do I need and ABN and pay GST?

Yes. You will be paid your commissions with GST. You are a contractor / service provider and therefore attract GST. Everything (business related) that you pay GST on can be credited against the GST you get paid. 
NB: GST is not compulsory until you generate $75,000 p.a. income

What types of loans do brokers use?

• Residential Loans

• Reverse Mortgages/Equity Release

• Self Managed Superannuation Funds

• Equipment Leasing

• Chattel Finance

• Car and Personal Loans

• Business Loans

• Debtor Finance

• Commercial Property Finance

Many brokers are gaining additional skills and qualifications such as general insurance and financial planning to expand their client services into areas.

How can I write loans for different lenders?

A broker has to obtain accreditation with lenders in order to sell their products. Most brokers will become accredited with a number of lenders – called a ‘panel of lenders’. Brokers are only able to sell products from lenders on their panel.  If you are not accredited with a particular lender, Daniel may hold that accreditation and may be able to assist or will attempt to gain that accreditation to facilitate that deal.

How do I obtain lender accreditation?

The requirements for accreditation vary from lender to lender, as too does the size of each broker’s panel. Some lenders have minimum volume loan requirements in order to achieve and maintain accreditation. Once you have completed your training with Become a Mortgage Broker you may wish to continue with Vault Mortgage Corporation for your 2 year mentoring term and beyond. Part of this process is setting you up with an initial panel of lenders with the ability to gain further accreditations as your experience grows.

What are aggregators and franchise groups?

Many brokers join an aggregator or franchise group to access the group’s wide panel of lenders. These groups provide many additional services to brokers such as software and technology, training, general business support and back office administration.

What is Professional Indemnity Insurance?

Like many other businesses, brokers also need to maintain professional indemnity insurance. It is an ASIC requirement for brokers to be covered by PI Insurance for no less than $2 million for any one claim and $2 million in the aggregate and minimum Run-Off cover.