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Confusion on the procedure to become a mortgage broker, need some help

Discussion in 'General Property Chat' started by Wing, 23rd Jun, 2016.

  1. Wing

    Wing Member

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    Hi all,

    I am new to this forum and just read another thread regarding to the mortgage broker:
    Mortgage Broking Business Opportunity

    However my situation is a little bit difference as, I wish my following information isn't confusing as well:
    0) My first baby will be arrive in the next month so I pretty much want to sort out the procedure first
    1) I've been working as a mortgage broker assistant for 5 years in Melbourne;
    2) I finished the Diploma of Financial Services (Finance/Mortgage Broking Management);
    3) Would like to step up more instead of being an assistant all the time so want to be a mortgage broker and try to get my own client;
    4) I've spoken to my boss D about if I can be a credit representative of my current company and then :
    -My Boss D is the director of Company C
    -Company C belong to the Group G
    -My boss D is also one of the director of the Group G
    -Group G is aggregated with CONNECTIVE
    -Because of the Group G AGREEMENT, all the member worrying that if the new comer (me) did something wrong while being a credit representative of Company C, they may suffer from commission stop so they refuse me to me a credit representative of Company C;
    5) I then now need to acquire my personal ABN, ACN, ACL, PI, CIO, MFAA membership...e.t.c.

    So here's the question:
    1) Do I need to be 100% self-employed to have my own ACL? If so, does that mean I need to go throught the ASIC and register the business name, get the ACN then ABN and check if the name belongs to someone else first?
    2) For PI: What's the minimum limit of PI is required for me, simply I don't have any client currently;
    3) As if I really need to self-employed, does that mean I SHOULD better look for other aggregator as well? One of the broker in my current company is having his self-employed business and work under Group G aggregation as well which I still don't understand;
    4) If I still want to work with my boss for the broker assistant job and in the spare time I can look for my own client, what type of agreement should I make with him so there are no conflict?

    Sorry for the long question but wish someone can help :)

    Thanks HEAPS in advance!!!
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    1. Not really. You could have your own ACL and work for someone, but it would be unusual.
    2. $2mil i think or is it $20mil
    3. That is a commercial decision.
    4. this will be difficult if you have your own accreditation under a different company. He would need to refer the clients to you and your company would be who the clients deal with.
     
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  3. Wing

    Wing Member

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    Thanks for your advice Terry, so I better be under CONNECTIVE as well even I got my own ACL and company...

    So am I correct to say every broker work as an employee (If not being a credit representative) required to be having their own ABN & ACN so they can grab their own ACL?

    My main concern is my baby is coming so I want to reduce cost ...
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Terry has covered most of it, but my thoughts are:

    As an ACL holder, I'd want any employees to be an authorised rep of my business.

    I think $2M is required for any single claim, with a higher figure as an aggregate. We've got $5M simply becuase the cost difference was almost nothing.

    Working as a broker and as a broker assistant for someone else at the same time tends to create conflicts. I've seen people try to do it and it doesn't work well.
     
    Last edited: 23rd Jun, 2016
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  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If a broker works as an employee they wouldn't need an ABN - these are just for businesses.
     
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  6. Wing

    Wing Member

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    So am I correct to say that they still need their own ACL but not necessary require an ABN (Means don't need to form a company to hold the ACL)?

    My main confusion from my company is that I can't be a credit representative, then my boss said that the broker working for another director in the group require to have their own ACL.

    Then I ring and check ASIC and they are saying I need an ABN/ACN means I need to be self-employed...I ring ASIC, MFAA, no one can really answer what I should do :confused:

    What I want to do just be a broker and may partially help my current boss and also work on my own portfolio as well...
     
  7. Wing

    Wing Member

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    Hmmm, yeah I was thinking the same thing about the conflict, I had been working for my boss for 5 years so I understand most of her deal and she don't want me to leave it back to her BUT I for sure want to earn more and just hate sitting in front of the computer, want to step up and explore more even getting better skill, meeting other client to generate business...e.t.c
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You might have to contract to the company if they require you to hold an ACL.
     
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  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    One example I saw was an assistant wanted to move into a broking role full time, but wanted the regular income as the assistant. When an enquiry came in, she started deciding that it was for her (if she answered the phone) and wanted to claim it for herself. In the end she was fired.

    I certainly appreciate wanting to get out from behind the desk, but remember that the job is still 80% - 90% on the computer or phone anyway.
     
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  10. Wing

    Wing Member

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    Thanks for your advise.

    Pretty sure for myself that kind of conflict won't happened <--Self discipline 100% :) And also I separate office phone and my personal phone so I know which one is the real source, again I will be caution as well.

    Very true, just wanna go out a bit more as I've been 100% in front of the computer for the last 5 years and want to step up as well (Due to the baby, need to earn more as well...o_O)
     
  11. Wing

    Wing Member

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    Thanks Terry, it seems to be the situation for the another broker in my company now. He actually is the relative to my boss (Sibling parents). He have his own company but work under my boss company's Group accreditation<--(which I still don't understand what for, is that expensive? I've asked connective but never get back to me...I will need to ring them again... ) He then send an invoice back to my boss company to get those commission back for him. I find it strange still which I don't really want to work like that. Just want everything to be much clearer.