Latest Posts

So your client has been pre-approved? Now what?

Some time back, a Mortgage Broker friend of mine was frustrated as his business lodged around $20m in Approvals-in-Principles (AIPs) in a year, yet only around $4m resulted in actual settlements. A lot of work for little financial reward given a 20% conversion.

He asked me what I do once a client has been AIP’d and whether I experienced a similar statistic.

My first comment was “we get paid on settlements, not lodgements”. As obvious as that sounds, many brokers focus on the wrong levers.

Naturally the client has to buy a property for the loan to settle, therefore you should implement a diligent follow up process to ensure you’re not working hard for little financial reward.

Here’s what I recommend you do.

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Setting up a customer-focused business for success

Ask any successful mortgage broker on the MPA Top 100 list, and most of them will say that the majority of their business is generated from referrals. 

Referrals and word-of-mouth marketing form the backbone of most mortgage broking businesses. 

Which makes a mockery of why regulators and Royal Commissions cannot get their heads around commissions and the conflict of interest issue.  Why is it that the mortgage broker share keeps increasing?  At the most recent MFAA report, the market share for mortgage broker sourced mortgages has increased to 59.7%. 

The reality is that mortgage brokers only become successful if they focus on the customer.  There may be inherent conflicts of interest or commissions from some lenders that are higher than others, but if the broker wants to become successful, they must put their customers first.  And when that happens, those mortgage brokers will generate more referrals and repeat business.

The corollary is that those same referrals ensures that the customer’s best interests are looked after first.  Because if those same customers are not looked after, they will not be giving referrals to you.

And on the evidence of things, more customers are seeking mortgages from mortgage brokers.

As a mortgage broker, how do you set up your business for referrals and repeat business?  Here are my top 3 tips.

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Networking tips for mortgage brokers

Last month I attended The Adviser’s New Broker Academy in Melbourne and learnt a new thing.  Jason Back was presenting and he showed me a new feature in LinkedIn that I wasn’t aware of. 

It was the “Find Nearby” button.  And it was great as it allowed me to connect to others in the room with me.  You can read more about it here.

And here is the thing.  As a small business owner, mortgage brokers have to be fantastic multi-taskers who have to learn many new things, every day.  This is because they only have one employee – themselves, or only have access to a small team of people.

This includes tasks like creating marketing campaigns, posting on social media, touching base with clients and referrers, keeping updated with credit policy, dealing with credit assessors, balancing their own finances, and also taking care of the housework.

So as a mortgage broker, how do you learn how to do new things?  Or even to work out what types of skills or tools they will need to master?  And most importantly how do they meet the right people to help them find their customers?

One of my key continual improvement activities is to get out and network with like-minded people who may help generate new ideas.  Meeting like-minded people can help keep you motivated and inspired.  And some of them may teach you new things to run your business better.

Just like what happened at the New Broker Academy event, where I learnt something new from Jason.

The thing is even with social media there is no substitute for meeting people face-to-face.  Like it or not, the basis of all long term business referral networks rely on people physically meeting each other.

Plus I feel more connected to my LinkedIn and Facebook contacts if I have physically met them already.

Here are some ways to ensure your networking activities produce the right results for your mortgage broking business.

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Are all Top of Mind (TOM) strategies the same?

Image by TeroVesalainen from Pixabay

There are many strategies to keep Top of Mind (TOM) with your clients, prospects, and centers of influence. But not all TOM strategies pack the same punch.

Let me explain.

Emotional TOM strategies pull at the heart (as people will always remember the way you make them feel). Logical TOM strategies are necessary but satisfy the head.

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My top 3 issues to focus on

Last year, Niik Stewart (coach to celebrities, executives, and businesses) was training at my gym and approached me:


“Mario, you’re a positive successful guy in the mortgage game. Today I’m presenting to around 200 brokers hosted by The Adviser New Broker Academy.

What would you say to the room are your top 3 most important issues to focus on in order to succeed in the mortgage game?”

Here’s what immediately sprung to mind:

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Seven low cost marketing ideas to grow your mortgage broking business

It does not take much to grow your audience

Whether you have been in the mortgage industry for a while, or just starting out, marketing your business does not have to be a big budget production.

There are many inexpensive ways to build your brand and your customer base.

Some of these ideas have been tried by our brokers, and they certainly don’t involve a lot of capital.

With a little bit of ingenuity, innovation, industry connections, and some work, here are seven marketing ideas you can use to grow your business.

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Want to know the secret of converting more leads?

There is no "one size" that fits all your clients

It’s all about having the right PROCESS. And not just one generic process, but a process for each client type.

That is what makes all the difference!

In our game, having a ‘one size fits all’ qualification process won’t cut it.

Think about it: Your qualification process for a First Home Buyer should be completely different to an investor, an upgrader, or a refinance client.

I recommend you document key points that are relevant for each client type. This way you have a reference point for when an enquiry is received, which in turn will help you become more efficient.

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Why you need to focus on your existing customers

You should have a Customer For Life approach in your business

Photo by Matheus Ferrero on Unsplash

The mortgage industry traditionally is focused on acquiring new customers.

All you need to do is take a look at the way banks and lenders advertise their latest home loan rates, and how they treat their customers.

Here is one I found amongst a prominent bank’s fine print about the interest rates advertised:

Interest rate discounts for LVR 90% or less are available only for new owner occupier borrowings and new to bank security property.

The corollary being that if you are an existing customer, these new rates being advertised are not for you.

The message being that: to get a better deal, you should refinance or complain.

Not very customer-centric is it? Despite what the bank is no doubt try to promote.

And as a mortgage broker, finding new customers is a great rush. It reminds us of the days when we were hunter-gatherers, the thrill of the chase, the high-fives and fist-bumps, plus the winning feeling when your customer says yes to going ahead.

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The one that “John West” would reject

The one that John West would reject

Remember that tuna commercial by John West from 1987? They repeated it again about 8 years ago.

There’s something in that advert that is very similar in your business. John West (the supplier of tuna products) created a market position in the consumer’s mind that they only package and sell the best tuna and that they would reject the rest.

What about you. Are you taking on clients that make the cut, or are you just wasting time on “the rest”?

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The best way to choose a mentor

Mentoring Workshops can provide knowledge for business success

Seeking a mentor to help you start and grow your new mortgage broking business is one of the most important tasks you need to do.

The right mentor can achieve success quicker and more efficiently, and also help you avoid the pitfalls.

A mentor is also a mandatory requirement to enter the industry. But don’t choose a mentor just so you can meet that requirement.

And don’t choose a mentor because they are the least expensive. As someone once told me, there is a very good reason why they are inexpensive. It is never only about their mentoring fees. Look also at the value that they can bring to your business.

Behind every successful mentee is a successful mentor!

Here are some universal advice on what to look for and what to avoid when choosing a mentor for your mortgage broking business.

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