2. We’ll cover
▸ Roadmap of becoming a mortgage broker
▸ Evolution of your business
▸ Power of collaboration
3. Roadmap of becoming a mortgage broker
Business structure
Qualification
Licensing
Aggregator
Lender
accreditation
4. First, choose a business structure
▸ You can choose the business structure from:
Sole trader,
Partnership,
Company, or
Trust
▸ Sole trader and company are the two popular structured
adopted by mortgage brokers.
8. ▸ Pros
Your personal assets are shielded from any claim or judgments for
business
Income distribution among shareholders
▸ Cons
Establishment and on-going running cost
9. Name your business
▸ No matter what business structure you choose, you should
choose a trading name which gives your clients a clear
indication on what service you provide. It can potentially be
your branding name
10. Your business must register ABN and GST
▸ Mortgage broking business must have Australian Business
Number (ABN) and must be registered for GST
11. Minimum qualification
▸ The minimum requirements to become a mortgage broker are
Certificate IV in Finance and Mortgage Broking (FNS40815)
Professional indemnity insurance
Membership of CIO
Mentorship
Membership of MFAA or FBAA
12. ▸ Mortgage broking industry is regulated by ASIC
▸ You must operate as an authorized credit representative under
an Australian Credit License holder
▸ ASIC assigned a unique Credit Representative Number to
each credit representative as their identity
▸ It’s ACL holder’s responsibility to ensure all credit
representatives to conform with the licensing regulations.
Authorised credit representative
13. ▸ Mortgage aggregator is a company that acts as a wholesaler
between lenders and mortgage brokers.
▸ For a mortgage broker to be able to introduce loans to a lender
and get paid by that lender, we need to be part of an
aggregator.
▸ Aggregators also facilitate lender accreditation for brokers.
▸ Aggregators charge fees to brokers for their service, either by a
fixed amount or a percentage of the commission.
Choose and join a mortgage aggregator
14. ▸ Mortgage brokers must be accredited by lenders before they
can introduce loans to the lenders.
▸ Each lender has own accreditation requirement and process.
▸ Lender accreditation is facilitated by aggregator
Getting accredited with lenders
16. Evolution of a mortgage broking business
Building foundation
Residential lending
Commercial / business lending
Complete financial solution
Build a business beyond you
18. Building a solid foundation
▸ The most fundamental building block to succeed in
mortgage broking business, in fact in every business, is that
your goal is a long term and sustainable business. Money is
the by-product in the process
19. It’s about your clients, not yourself
▸ In market, no one cares about who you and what you do.
▸ What matters is whether your service can solve customer’s
problem and provide benefit to them.
▸ If you take care of your client well, and your business will
take care of itself.
20.
21. 3-way Sales Funnel
▸ A sales funnel keeps your business flow
▸ 3-way sales funnel – a proven system to enable you to
increase sales effectively in mortgage market.
23. ▸ Member Portal, from loan structure to lending policy of
individual lenders
▸ Develop necessary skills through real-life solution sessions
and delivering and scenario coaching
▸ Observe and learn from wide range of scenario from your
fellow members in X Mentoring community
25. Measure of quality of loan book
▸ Balanced client and loan coverage
▸ Sticky client relationship
▸ Accurate client/information
26. Strategies to reduce go-off rate
▸ Active retention strategy through regular touch point with
minimum effort
▸ NTI methodology to generate repeat business from existing
clients
▸ Incentives program to generate referral business from
existing clients
28. Residential lending
▸ Residential lending, including car finance, is the main source
of income for every mortgage broker.
▸ Whole country is your market and you just to find your
niches to be successful.
▸ You will focus in this space in first 24 - 36 months to truly
master the art of sales and the skills of delivering in
residential lending
29. Your target in first 24 months
50 / 30
50 clients / $30mil
30. Commercial and business lending
▸ Commercial and business lending is different from
residential lending in many ways.
▸ Depending on your cliental or marketing strategy, you
develop the skill set and evolve to handle commercial
lending yourself, or you can identify the opportunities and
handle them under referral relationship.
31. Complete financial consulting and
services
▸ At this stage you should be confident enough to open up
your offering for a complete financial solution.
▸ The diversification is the strategy to help your business
through different cycle of market conditions to make a
sustainable business.
▸ It will also provides you more triggers to get in front of clients
to generate more solution sessions.
34. ▸ Now technically you are capable to write more loans to fast
track the loan book building process.
▸ BUT can you attract more prospects, and more importantly
can you handle more clients on your own?
▸ Should you move from home to an office? Hiring or
outsourcing?
▸ No matter which direction you go, scalability is the #1
consideration in the strategies we put forward for you.
36. Leverage the power of a group
▸ It’s the fact, most brokers are operating as one man band
business.
▸ However “one man band” doesn’t need to be “isolated”
▸ As a growth strategy, you should join a mortgage broker
group which fills the gap between individual broker and
aggregator and more
37. What a broker group can benefit you
▸ Lifted professional image with a larger company profile
▸ Easier to build larger referral relationship
▸ Reach more experienced people to get support
▸ Technical infrastructure otherwise not available
▸ Marketing strategy
▸ Peer support
