At Masters Broker Group, we get a lot of enquiries about how to go about starting up a mortgage broker business.
Many brokers are drawn to this industry because they want to own and operate their businesses.
The mortgage industry offers brokers the opportunity to make their mark.
It allows you to help your clients achieve their financial goals.
Most brokers enjoy the flexibility and lifestyle benefits – especially those with young children. You can work from home, in an office, or even remotely. And you set your work hours.
It was certainly one of the key reasons why we set up our businesses too.
Establishing a mortgage broking business can be daunting and overwhelming but you don’t have to do this on your own.
All our members have set up their businesses and have relied on mentoring, coaching and advice from Masters Broker Group.
Choose your business structure
Before you start your mortgage broking business, seek some advice about which business structure is right for you.
Some brokers are set up as sole traders initially and then evolve to either a company or trust structure later on.
One of our key tips on this is to get some advice from an accountant. Speak to other mortgage brokers too. Of course, discuss this with your Mentor, as they will have great insights about this.
Find a great mentor
Both the MFAA and FBAA have made it compulsory for new brokers to have a mentor for their first two years.
Having a mentor will help you set up your business quicker and help you avoid the traps and pitfalls when setting up your new business.
Choose a mentor that has a great track record of helping their mentees achieve success.
Set up your marketing plans
All businesses need to have customers to become successful.
Write down how you will generate leads for your mortgage business. Consider how you will attract customers.
You will need to have a sound value proposition. What will you be offering your client? What is your point of difference?
Get your mentor or someone with experience to guide you to set up strategies to generate business.
For most new brokers, this will be the most difficult hurdle when they first start.
Think like a business owner
Sounds like a cliché, but you must treat this as a business.
This means you must invest sufficiently with time and money into your business.
Make sure you have considered all the costs and expenses for running a mortgage broking business.
This includes software, mentoring, and aggregations fees.
Remember to also include your marketing expenses.
Establish your legacy
Setting up a mortgage broking business is a very challenging task.
Most brokers have found this to be a rewarding experience, both financially and personally.
Mortgage brokers make a positive difference in their clients’ lives.
The flexible nature of the industry allows you to work on your terms and choose what success means for you.
Creating this legacy is a very rewarding experience.