Oxygen mortgage brokers

Interesting to see Oxygen are only writing about $25m per broker per year (or around 1 loan of $1m every second week)

• http://www.propertyobserver.com.au/forward-planning/investment-strategy/property-news-and-insights/65992-mcgrath-s-oxygen-home-loans-settlement-activity-dips.html
  
  

How do you think it compares with other Sydney based brokers?

 

Cant speak for Sydney brokers, but $2mil a month works out to somewhere around $150,000pa gross upfront comm. less expenses, aggregator split, referral/franchise fees etc.

 

Pretty average.

 

MFAA publishes stats on this in their half yearly mag. Average sydney broker upfront is pretty close to 20-25m p.a (i think its 144k p.a from memory).

Sydney, for obvious reasons, is far higher than some other states.

I didn't know Oxygen we're so big - they have quite a few offshoots of young successful brokerages (Shore? Peasy? not too sure)

 

$25m per broker is pretty good - I doubt many other groups would be producing those figures.

I also wonder if it's skewed by some very high performers.

I remember reading the average upfront settlements was around $700k per month - although that may have included a lot of part time brokers.

Cheers

Jamie

 

There's probably several who are starving and a small number doing 4-5 times that number. Just like real estate agents in the same agency.

 

Actually, well above the industry average if you are looking at nation wide averages. But only slightly above average for Sydney.

 

Just got an email back from a contact who said they were writing $10m per month.....I knew they were doing well....but not that well.

Are there sources/lists out there on how this would rate again the best in the industry or is it all proprietary info?

 

Good industry to be in

 

My CBA guy writes 150mil/ year for the past couple years now. Would that rank him way way up there ?

 

For a resi lender I would say thats high. Esspecially for a banker.
Personally I think he is wasting his efforts working for CBA.

If he can write that much consistently he would do far better off as a broker on his own, and as Terry says, he would open the door to a lot more opportunity (other policies/other lenders) and without a doubt would be making more money.

As a commercial banker, he wouldnt even be hitting his annual targets at that level*

Blacky

*not quite true - 'young' commercial guys targets are somewhere between about $50-$150mil from memory.

 

$70k per month is a good income.
Plus trails would be huge

 

$25mil average is quite reasonable - as others have mentioned I'd definitely think this would be spread between some doing 10mil and others doing 100mil.

Last national stat I saw mid-last year was at $12mil average for brokers across all metro and regional areas - that'd be below many in Sydney and above quite a lot in SA/Tas/regional.

 

Puts him way up there anywhere if it's resi. Assume he's Sydney or Melbourne? I did ~$50mil last FY based in Adelaide.

 

Is everything you write in policy?

$150m is huge even @ $1M a deal still 3 deals a week.

 

Based in Sydney. Looks like he needs to buy me lunch!

Being a CBA only 'broker', does he get the typical comms? If so, that's massive!

 

It's hard to get your head around.

It's just the culture of broking. Find the right lenders policy for the client, rather than ask for an exception to policy.

It was one of the difficulties I had working with rams, they expected every deal, then an extended fight with credit, then more docs from the client then when everyone's tired, approval.