Mortgage Broking Business

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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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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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 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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Why you need a mentor

Achieve more with a mentor

Photo by Joe Roberts on Unsplash

Are you harnessing the power and wisdom of a mentor to build your mortgage broking business success?

Apart from the mandatory requirement – The Mortgage and Finance Association of Australia (MFAA) and the Finance Brokers Association of Australia (FBAA) require all new brokers to be mentored for the first 2 years upon entry to the industry. Here is another more important reason why you need a mentor for your mortgage business.

To build and grow a successful mortgage broking business you to grab every opportunity that you can get your hands on. A mentor can help you seize these opportunities.

“If I have seen further it is by standing on the shoulders of Giants.”

– Isaac Newton

You also need the right tools, insights and expertise – and here is why the right mentor can be invaluable to your business.

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Are you giving it your best shot?

Is your business improving?


The meaning of insanity is to keep doing the same thing/s and expect a different result.

Fact: Business is full of challenges.

I know this because I have experienced (first hand) many ups and downs since making the leap of faith to self employment, when I left a $180,000 (pa) corporate job back in January 2004.

When things weren’t going right in my business, I use to run this analysis. In fact, I did this even when things were running smooth, because I learnt fast that complacency can destroy your business.

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What makes a mortgage broker successful?

What makes a mortgage broker successful?


Mario and I were at the Australian Broking Awards in June, where we were a finalist in the Training and Education Program category.   And some of the best mortgage brokers were there.

When I looked around the room full of successful mortgage brokers, what struck me was that mortgage brokers are a motley bunch!  They were young, some older than me, introverts, extroverts, and even women!  And the successful ones come in all different shapes and sizes.

The beauty about the mortgage broking industry and this business is that there is no corporate ladder.  It is definitely BYO ladder.  This is one of the few businesses where you start at the top.  You are the CEO, CFO, COO, the sales manager, and also the admin processor – in fact you have to do everything.

And with low business entry costs compared to other businesses, this has led to many people deciding to enter the mortgage industry to chase their entrepreneurial dreams.

Which got me to thinking about what are the traits that each of our successful fellow brokers had in that event that made them successful?

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How to build your one-page A4 business plan

Succeed with a business plan


One of the things we do at Masters Broker Group is helping our brokers build successful and sustainable mortgage broking businesses.

A key element to creating a successful business is to have a plan and a strategy.  According to a Harvard Business Review article a startup business with a documented plan is more likely to succeed and, more critically, become cash-flow positive.

Usually whenever someone mentions a business plan, the convention is for a 100-page tome. Unconventionally, we suggest that you put your plan onto one A4 page.

Here are some reasons why your business plan should not need more than one page:

  • The mortgage business is a simple business. You have no inventory, no stock, no samples and none of the requirements for handling inventory.
  • Most mortgage brokers start out with only one employee – you.
  • Lenders always pay their commissions on time.  You don’t need an accounts receivable division to follow up invoices.
  • The lending and real estate environment changes so quickly it makes no sense planning for more than 12 months ahead.  In my opinion it makes no sense trying to forecast more than 1 year ahead.

When you have to condense your business plan down to one A4 sheet, it makes you think more critically about your business goals. There is no space for BS. You are forced to only write down what you are going to achieve, creating that roadmap to reach your business goals in a brief, succinct, clear, to-the-point document.

You can download a copy of our A4 business plan from our website here.

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Prepare your mortgage business for the new financial year

Prepare your mortgage business for the new financial year


With the new financial year just started, this is a great opportunity to step back and review how you are tracking with your business.  It is so easy to roll straight into the new financial year and continue chugging along.

With new lender policies and product changes, a shift in the real estate market, the new comprehensive credit reporting system starting, and new technology coming online –  will your business be able to cope with these changes and thrive?

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