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Become a Mortgage Broker & Achieve Financial Freedom

The role of a Mortgage Broker, or Finance Broker is one of many careers in the finance industry that are available today, where intelligent, savvy, capable individuals have an opportunity to succeed. If you’re willing to study, work hard, and be a person of integrity, it may be a career that fits you.

In this post I want to highlight 3 benefits that I’ve experienced in my over 10 years in this industry. Others lists may vary, but I think you’ll agree that these 3 are among the top reasons to consider if you want to become a mortgage broker.

ABOVE AVERAGE INCOME POTENTIAL

The average upfront commission a loan officer will make is 0.66% on every home loan they settle. That’s a rate that has been pretty much standardised throughout the industry, however some lenders pay higher, some slightly lower. In addition there are commissions to be earned from other types of finance such as commercial loans, car loans, asset loan etc, However for the purposes of this report we will focus on residential mortgages. Let’s do the math to see what 0.66% means in real dollars:

 $500,000 loan X 0.66% = $3300

That’s $3300 earned on one loan. For many people, that is one month’s income.

Let’s carry it out over a year, and say you settled 3 loans per month (at the above loan amount) for 12 months (which is an extremely low estimate), and you’ve made $118,800 (on the low end) in one year. But like I said, that’s a low estimate. Most mortgage brokers settle anywhere from 4 to 8 loans per month, with some of the “superstars” doing many many more.

But that is not the most unique and financially lucrative aspect to mortgage broking in my opinion.

Most lenders also pay a trailing commission on each loan you settle.  And the average trailing commission across the industry is 0.22%. And this trailing income, naturally, compounds every month that you settle new business. Now if we take that and extrapolate it across the 3 loans per month we have just settled the following magic highlighted in this chart below occurs:

commercial loans australia

What you are looking at here is the compounding trailing income you would be paid every month for the loans you have settled.  That’s passive income, in your bank account for the life of the loan.  Now bear in mind, you are paid this on the balance of the loans, so as they reduce, are paid out and/or refinanced elsewhere, this will cease, however if you are consistently settling new loan business it should account for any run-off.

As mentioned before, this is an extremely conservative example of the potential income that could be generated based on monthly loan settlements totalling $1..5million.  Most brokers would generally settle on the low end a minimum of $2million per month and on the high end $15-$20million per month.  You do the sums!

FLEXIBLE SCHEDULE / LIFESTYLE

I hesitate to list this one because its’ one of those things that “depends.” It depends on you. You can work from an office, you can work from home, you can work from pretty much anywhere.  How hard you work, and subsequently how much money you make, is entirely up to you and how you manage and market your services.

I’ve found the flexibility of having both a satellite office in the Melbourne CBD as well as a home office in regional Victoria affords me the perfect balance for the kind of life that I want to live. I’m able to be at home with my family, but can work at something that is adequate for providing the income we need. Because of technology, I’m able to use the very same tools I’d have were I in the CBD office all the time (which I am not), and do it from the comfort of my home when required.

DOING SOMETHING THAT MATTERS

Most people want to own a home… it’s part of the dream that we have as adults. The Mortgage Broker has the opportunity to help people accomplish that dream by providing them with options that fit their situation. The work I do really matters because it enables people to get into one of the greatest investments of their lifetime, when it’s done wisely and well.

I love knowing that the work I’m doing is truly benefiting people.

How do you know if you want to become a mortgage broker and that the mortgage industry is for you? From my experience I’d suggest you check it out if:

  • Integrity matters to you
  • You want to help people with important matters
  • You are organised and willing to work hard
  • You don’t mind rules and regulations (there are a few of them)
  • You enjoy learning and challenging yourself
  • You are a people person

If you think you have what it takes to become a mortgage broker, contact us today to see how we can assist you in doing so. We currently have 2 vacancies available.

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