yes it's very steep, the Refund founders are instant multi-millionaires.
I have been myself. It is a bit rich.
$69kHere are the numbers
Upfront
50% of commission goes to the customer
20% to the franchisor
30% to the franchiseeTrail
Franchisor takes .05%With lenders cracking down on commission rates, you can't really make money on the upfront.
last year BRW posted the average earning of a Refund franchisee @ $47k
So it would take you 3 yrs to pay off.
I would recommed going to connective, if looking to be a broker.
FYI I'm not associated with any aggregator
thank you very much Kane, much appreciated. Seems the franchisees turnover is high.
Hi everyone
I am interested in becoming a mortgage broker myself, I have worked under one as an assistant for 6 months but wish to start my own business as I have a couple of potential clients already and felt it would be better to start up my own business rather than providing their details to my boss who would then make all the commissions and just pay me my minimum weekly wage for doing all the work. He also stated that I need to work for at least 2 years before I can become my own broker and personally i just can't wait that long while I have a long list of potential clients I could be servicing myself.
I've researched around and found that I need to complete a certificate IV in financial services and diploma in mortgage broking, I plan to complete these 2 via kaplan professional services. I will then register an ABN and work from home and/or travel around Melbourne to meet up with clients.
Besides getting certified, what other steps do I need to take before I can successfully start my business? And how long would this process take from starting the cert IV course to writing your 1st home loan and receiving the commissions?
—
Cheers,
DavidYou will also need to obtain a credit licence or become an authorised representative of a licence holder. You will then need an aggregator.
I don't think you need a cert IV and a diploma, just one or the other. (but cert IV usually is half a diploma).
I am a solicitor and just in the process on becoming a broker as well. I can make some suggestions offline if you contact me.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks terry, just sent you a PM as well.
So after doing a bit more reading, steps include:
1) Getting a certificate IV in financial services which costs around $500
2) Obtain a credit licence
3) Find an aggregatorAm I missing anything from this list? Also how long should this entire process take?
Is it necessary to become MFAA approved as well as I only have 6 months of experience and it states on: http://www.mfaa.com.au/uploads/Membership%20Guide%20140811.pdf
that I need at least 2 years of experienceYou will need the Diploma from 1 July 2012.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
dw8998 wrote:Hi everyoneI am interested in becoming a mortgage broker myself, I have worked under one as an assistant for 6 months but wish to start my own business as I have a couple of potential clients already and felt it would be better to start up my own business rather than providing their details to my boss who would then make all the commissions and just pay me my minimum weekly wage for doing all the work. He also stated that I need to work for at least 2 years before I can become my own broker and personally i just can't wait that long while I have a long list of potential clients I could be servicing myself.
I've researched around and found that I need to complete a certificate IV in financial services and diploma in mortgage broking, I plan to complete these 2 via kaplan professional services. I will then register an ABN and work from home and/or travel around Melbourne to meet up with clients.
Besides getting certified, what other steps do I need to take before I can successfully start my business? And how long would this process take from starting the cert IV course to writing your 1st home loan and receiving the commissions?
—
Cheers,
DavidI think the MFAA requires you to be mentored for two years by someone with at least 5 years industry experience, etc. Some of the aggregators might be able to line you up with a mentor (which will no doubt come at a cost).
I'm not up with the ins and outs of starting a brokerage post NCCP – but I get the feeling it's not that easy to go at it alone these days.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Is it necessary to become MFAA approved? Even if it is not necessary I'm assuming there would be benefits and perks to joining MFAA?
I've had conflicting responses from numerous people I've spoken to.
Hi again
Not sure how you'd go without MFAA accreditation – I don't know you'd be able to become accredited with lenders without it.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
dw8998 wrote:Thanks terry, just sent you a PM as well.So after doing a bit more reading, steps include:
1) Getting a certificate IV in financial services which costs around $500
2) Obtain a credit licence
3) Find an aggregatorAm I missing anything from this list? Also how long should this entire process take?
Is it necessary to become MFAA approved as well as I only have 6 months of experience and it states on: http://www.mfaa.com.au/uploads/Membership%20Guide%20140811.pdf
that I need at least 2 years of experienceHi
Without MFAA (or FBAA) membership no aggregator or lender will accept you.
You will also need to have your own Professional Indemnity insurance as well as be a member of an external dispute resolution service such as COSL.
Have to get a diploma before 1 July 2012 as well.
Apparently a few additional modules are being added to the diploma shortly as well…..ah, it never ends
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yes Jamie get in and do it by Nov 22 to get the Prior Learning exemption on those extra subjects.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Between compliance, writing loans and keeping up to speed with everything else……I don't know where I'm going to find time to knock this thing over.
Besides, next year they'll probably want us to have a doctorate in mortgage finance
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Doctorate, geez I hope not! The Diploma two day upgrade was about as exciting as watching the grass grow
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Jamie i was hearing from 2013 you will need to qualify for a knighthood to still hold your license.
In fact Sir Taylor has a nice ring to it.
It is really a joke and you are so right.
In between writing 101 loans you need to have time to keep upto date with the industry, carry out a mountain of complaince and then just when that is almost over need to re-qualify each and every week.
Managing my own portfolio certainly isnt this difiicult.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi,
Since I posted in this thread 6 months ago, I've stopped working at my role as an assistant to a mortgage broker and have spent the last 4 months studying for the Cert IV which I have obtained and am now studying the diploma in mortgage broking which I aim to complete by the end of June.I have done some research into franchisor models and their models sound appealing in the fact that they give you advice, training, support as well as providing mentoring and back office support so that the loan tracking service is outsourced. They also assist with the marketing and advertising. Obviously the drawbacks are the start-up costs which I've found range from $10,000-$40,000 for the initial set up cost and a cut of the upfront and trailing commissions: one company I've met with said they take 30% of the upfront commissions and 60% of the trail commissions, I was shocked at this percentage and I wanted to know if this is standard for other franchise models, does anyone know what percentage companies such as Mortgage Choice, Smartline, Aussie or Rams take? Does anyone also know anything about: http://www.brokersite.com.au/ I have tried contacting Hans but just receive weekly emails to attend a webinar and no personal reply.
The other option is to start it up myself although the problem with this is, I don't have experience on how to generate leads and referrals and this is why I'm highly considering joining a franchise model as they help you provide leads and refer clients directly to you. I also read about purchasing loan books: http://www.theadviser.com.au/features/sales-and-marketing/6594-loan-books-avoiding-the-lemons and it sounds like a good way to get your initial business up and running although is it as smooth a transition as it sounds? Once you purchase the loan book you essentially look after all those clients and receive the trailing commissions on their loans and these books usually sell for around 2:1 or 3:1? I would also need a mentor which my old boss said he would do although I'm sure he won't provide my any assistance or training or help me in generating leads.
I'm pretty much just considering my options in starting out, the franchise model sounds appealing although I'm not sure if it's worth paying such a big chunk of commissions to them. Also if I choose to end my agreement with them, I heard that you no longer receive any of the trail commissions? Starting out on my own would be ideal although I'm just unsure if I would be able to generate enough leads and referrals. If anyone has just started up their own franchise or their own business model or joined a company would like to hear their story.
Cheers
DavidDavid
Sounds crazy. You would be giving too much away for little return. My aggregator provides all those services too – for free mostly
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi David,
Are you still in contact with the previous broker you worked for? You could look at getting them to mentor you and using their aggregator.
Regards
Gibbo
Hi Terry – do aggregators assist with providing leads and referrals? As this would be the main reason I would want to join a franchise model.
Hi Gibbo – Yes I'm still in contact with him, he said he would act as a mentor for me and to recommend going under his aggregator – Choice. Again the main concern is if I go with this model, outside of the usual friends and family, how else would I be able to generate new leads and clients?
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