As per the MFAA, about 60% of all home loans were generated through mortgage brokers in the first quarter of 2019. As the mortgage landscape continues to become more evolved, borrowers are relying on the brokers more than ever to make crucial mortgage decisions. With the property market expected to see phenomenal double-digit growth on the back of pent up demand, the mortgage industry is also likely to benefit substantially from the development. Here’s a quick look at the pros and cons of being a mortgage broker.
- Be your own boss: The satisfaction of working for yourself continues to be a significant motivator for financial professionals to leave their day jobs and venture into building a business of their own.
- Choose your scale: Being the owner of your establishment, gives you the freedom to choose the level of business activity based on your ambition and needs. Right from a one-person setup to a busy establishment with multiple team member and everything in between, you do have quite a few options.
- Work-Life Balance: Running your own business also provides a good deal of flexibility with respect to working hours. This flexibility not only allows you to be there for your family when it matters but also to attend to customer needs beyond regular work hours.
- Good income-earning opportunities: As mentioned at the beginning, the mortgage industry is all set to see profitable growth on the back of pent up property demand. This growth is likely to translate into increased revenue for most mortgage businesses.
- Support people with their aspirations: Property continues to be a significant source of wealth creation for most Australians. Being in the mortgage space allows you to help people with their property aspirations and goals to financial freedom.
- Highly regulated: Compliance breach fines are excessive and could also cost you your license. Monitoring and interpreting legislation changes in this space require time and effort.
- Constant upskilling and learning: With a plethora of new products and approaches to loan writing, you would need to invest time in staying abreast of, understanding and implementing industry best practices to your business.
- Document and process heavy: There is substantial documentation involved in at various stages of issuing a loan as well as during your interaction with the lender. Additionally, all these documents need to be in accordance with compliance requirements and guidelines.
- Capital and time involved in setting up your own business: Donning multiple hats of IT support, admin, marketing, and sales can be very challenging at the time of starting your business. You need to consistent and patient while building your customer base.
However, the sheer growth the mortgage industry is experiencing strong outweighs the challenges of setting up a mortgage business. Additionally, opting for a mortgage aggregator or buying a mortgage franchise can largely mitigate most of the hurdles of establishing your own business. Reach out to us for a quick discussion on the best way forward for you as per your circumstances.(provide link to website to make an enquiry)