Mortgage / Loan Broker Income

Discussion in 'Starting & Running a Business' started by hunter93x, 15th Feb, 2021.

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  1. hunter93x

    hunter93x New Member

    Joined:
    15th Feb, 2021
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    Australia
    Hi everyone,

    My partner is looking to become a mortgage broker, she is currently working in finance with Automotive and has conpleted the IV cert to make the switch.

    I have a fair idea of what an income might look like, but would like to get some rough numbers of an average mortgage broker gross income ? or average loans settled / average net financed amount per month ?

    I know this is going to vary alot but I just want to make sure she isn't leaving a good job behind now. Currently she is making 100-120K gross but long hours, no weekends off and 3 days off per fortnight so these things also need to take into consideration.. plus no deductions.

    We were looking at Connective for the Aggrivator.

    Also just curious whether she could run a company ABN with the ACL under Connective or does she need 2 years experience to do that on her own or does she need the ACL.

    Any help would be much appreciated !
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Mortgage broking is an industry that definitely follows the 80/20 principal. 80% of the money earned is by 20% of the participants.

    About 2017 or 2018 I read an MFAA report that indicated the average broker income (after costs) was about $80k. I've seen some tax returns that would verify this.

    Hours worked depends on any number of factors. I don't think you'll find many brokers that think it's an easy job. Personally I try not to work weekends, but I will likely be on the keyboard until at least 8pm tonight.

    Her previous employment may qualify her to obtain an ACL. I got mine in 2011 when ASIC handed them out to almost anyone. I hear it's a lot harder these days. Most brokers are just becoming credit reps of their aggregators these days.

    I'd strongly advise setting up some sort of company structure. Get some legal and tax advice on this.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    and establishing a broking biz will be different how ?

    ta
    rolf
     
  4. jaybean

    jaybean Well-Known Member

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    Brokers I've worked with are some of the hardest working people I know. She needs to be ready to push harder than any regular 9-5 job will.
     
  5. beachgurl

    beachgurl Well-Known Member

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    Definitely don't change for the work/life balance. Sometimes work is steady enough to call the shots on hours worked but other times you just do what u have to do.

    As for income, does she have a database she can work with? Or is she starting from scratch? Regardless, there will be a lag time from starting the business til the comms come in. Of u have a slush fund, keep that as an income source til her income picks up.
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I see many broker's income data. I would see brokers as like real estate agents. Some make very good above average incomes and work hard. And some have basic incomes. They tend to have few costs. Their biggest cost is their own hard effort. They do need to be responsive and available so its not a 9-5 monday to friday job. But it can be flexible. Key skills of being a very strong communicator and leading with good support and being responsive as well as very knowedgeable are essential. Finding repetitive leads and referrals is a key element. You cant just print business cards and hope they will come. There are also possibly too many brokers now. Its intensily competitive and some borrowers are fickle and easy to move on with clawback recovery effectively prohibited. So you can do all the work and find they refinance aftre 6 months and will have to repay the income you were paid.
     
  7. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Perth
    She needs to be realistic and will probably break even in the first year, make a small profit the following year, and maybe, all going well replace her previous salary at year 3 or 4.

    My aggregator stats are 80% do not make it past the first 2 years, the 5-year mark is probably lot higher.
     

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