How Tough is it as a mortgage broker today?

In current climate must be difficult ?

Do you look at other ways of generating income ??

MTR

 

A lot of new entrants to the biz must be struggling... established ones would have a good trail book.

Some of the franchise owners eg rams, mortgage choice would have the brand advertising behind them too

 

My partner does assessments for an educational provider in mortgage broking. I've seen the quality of some of the assessments, it is scary to think anyone might rely on information or advice provided by these students.

Also scary is the level of entitlement some people have when it comes to grading, re-grading, appeals, recognition of prior learning, and trying to get answers to assessment questions.

 

Right
Just thought is would be tough for anyone to generate new business especially in current climate

 

There is a lot more work compliance wise. It makes it difficult to work solo. In my case that means employing someone to do data entry and other banck office tasks. Many other brokers outsource this work.

It cracks me up thinking of someone in Delhi calling on behalf of an AU broker speaking to the call centre based in the Phillipines of an AU bank.....

It’s still fairly busy. The stamp duty changes for FHBs in Victoria means there is still lots of customers, fhb and upgraders purchasing as well as refinancers leaving IO and fixing,
One of the jobs of my staff is doing the multiple pricing requests with each lenders websites.

I haven’t investigated other income sources, but I do work closely with a financial planner and buyers agent, more to protect clients being poached than as a secondary income stream.

 

Ive found the beginning of the year a little quieter than usual, but still busy on the whole!

 

You can look at the twitter feed to feel how tough it is for the new brokers.

 

Pretty sure advertising is an accepted means of generating new biz for new to industry and old alike - don’t want to save all your advertising for when you’re hungry

 

Twitter is used by some brokers to advertise on PC chat. It got annoying seeing the same ad every 4 hours so I have turned the feed off now.

 

You can see the number of twitter posts by brokers increasing as the market tightens up. Might be a sign of falling client enquiries, but might be for other reasons too.

 

Wow. Must be doing ‘okay’.

 

I'm generating a part time income from it while ive been getting my own house sorted but I can see that it is quite competitive to obtain local business around here. I have a steady client base from my investor circles but with many still unable to refinance dollar for dollar i have been testing the waters for local refinance clients.
Tobe is spot on regarding compliance. It takes a lot longer to set up a loan than it used to.
I know of a few franchisees struggling atm. Their volumes are down and with a percentage going to the franchisor and covering front desk staff their incomes are spread thin.

 

I have to say that for the last few years in PC I have noticed a number of people jumping into broking. So it looks like that the brokers must have been doing well for the last few years in terms of dollars, so everyone is jumping into it.

Of course outside PC there are tons of them around. With low barrier of entry it means that there are tons of people fighting for your services ..... When the market is down I guess it is then survival of the fittest.

 

Tech savvy wouldn't mean posting the same post every 4 hours though would it?