The life of a new recruit

Today’s mortgage brokers are regulated, highly educated professionals who frequently go above and beyond the call of duty to help find their clients a “not unsuitable” product.

They must adhere to responsible lending requirements while trying to meet all of their client’s financial needs.

And while broker market share has grown significantly over the past 15 years as more borrowers see the benefits of using the third party distribution channel, building a successful brokerage is no easy task.

Today, there are more than 10,000 mortgage brokers operating within the channel, all of whom are vying for business in what is a slow credit environment.

In addition, broker commissions fell by 30 per cent at the beginning of the global financial crisis as lenders looked to cut costs wherever possible.
As a result, brokers are forced to work harder than ever before – but for less revenue.

More importantly, for rookie mortgage brokers, building a network of referrers and a strong customer database can be difficult and time consuming to say the least.

It’s therefore pretty safe to assume that new recruits don’t have it particularly easy when they first enter the world of mortgage broking.

So, just how hard is it for these new recruits to build a successful business, and what trials do they face along the way?

The Adviser decided to find out.

Over the next six months, we will follow the progress of Loan Market Group broker, Renee Ashelford, who recently finished her Broker Academy training with the brokerage and is about to take the first steps in her new career.

In this first part of the series, The Adviser speaks to Renee about her background, her goals for the future and what prompted her to make the move into broking.

SO RENEE, WHAT WERE YOU DOING BEFORE NOW?
I was a personal assistant in a financial planning firm.

WHAT MADE YOU WANT TO BECOME A MORTGAGE BROKER?  
I was referred to Phil Rogers, the owner/operator at Loan Market North Ward by a Ray White agency in Townsville. Phil gave me the opportunity to enter the Broker Academy and then come and work for him – under his stewardship. I am really fortunate that he asked me to come and join the team because Phil is amazing. He was not only a finalist in the 2012 Australian Broking Awards for Newcomer of the Year, but he also made The Adviser’s Young Broker of the Year ranking in 2012.

Under Phil’s stewardship, I will be looking to provide value to clients with the knowledge I hold in this industry and with a view to changing their lives for the better.
 
WHAT ARE YOU HOPING TO ACHIEVE IN YOUR NEW CAREER?
My goal is to be a successful businesswoman by advancing my qualifications within the industry and by building and retaining a strong client base.

WHAT ARE THE THINGS YOU ARE MOST CONCERNED ABOUT WITHIN YOUR NEW CAREER?
In the beginning, I had reservations about switching over from a salaried position to a job that pays 100 per cent commission. I also questioned the transition from financial planning to mortgage broking. But, after speaking to Phil Rogers and Trevor Warburton (Queensland state manager), they provided me with the information and confidence I needed to make the change and take on a new and exciting career.

WHAT DID YOU KNOW ABOUT MORTGAGE BROKING BEFORE DECIDING ON THIS INDUSTRY AS THE CAREER FOR YOU?
I thought I was aware of a mortgage broker’s position. However, after discussions with Phil Rogers, I became more aware of just how involved this position is. It is not just about writing a loan; at Loan Market it extends out to insurances, and lifestyle choices. It is a personalised, ongoing experience between the broker and the client.

HOW DIFFICULT WAS THE LOAN MARKET BROKER ACADEMY PROCESS?
I did not find the course to be too difficult. Having had previous exposure to the industry, I was familiar with the terminology, but I still had to get my head around the appropriate loan structures, products and lenders to use.

I now understand that this will take time, but I feel as though the course gave me a good background in mortgage broking and has allowed me to hit the ground running in my new career.

At the academy, we are given practical scenarios that allow for a more personal experience. This really helped me gain an understanding of what client meetings in the real world might be like. The programs, calculators and information available on Loan Market’s software platform have been extremely helpful as well.

WHAT WERE THE BENEFITS OF GOING THROUGH THE ACADEMY PROCESS?
It was great going through the academy as it provided me with a lot of information and practical experience. Best of all, the academy only teaches a few new recruits at a time, so you have the ability to learn more and faster because you get more one-on-one time with the teacher.

There were four members in the group, plus our mentor, Lindy. Best of all, I have not only forged new friendships, but also professional relationships that I can rely on as I progress through my career.

IF YOU WEREN’T MOVING INTO MORTGAGE BROKING, WHAT WOULD YOU BE DOING INSTEAD?
I would definitely still be working in financial planning and may or may not have already applied to work in the police force.