Join our investing community

How easy it is to start a part time mortgage broking & financial advising business?

Discussion in 'Business & Startup Investing' started by Kishore, 7th Mar, 2010.

  1. Kishore

    Kishore New Member

    Joined:
    7th Mar, 2010
    Posts:
    1
    Location:
    Sydney
    Hi Guys,

    I am a new kid on the block for financial planning (career change). I am planning to study Mortgage Broking and Dip in Fin Services soon with the intention to start a part time mortgage broking financial advisory business.

    I want to seek opinion of experienced people in the field of mortgage broking and that how compliacted it is to do it. I have been hearing from some forums that doing both mortgage broking and financial advising is more than a part time job? Is it true or can I do it part time until I establish a substancial base of customers to go full time?

    Any feedback would be highly appreciated.

    Thanks

    Kishore
     
  2. MrPhoton

    MrPhoton Member

    Joined:
    26th Jul, 2011
    Posts:
    7
    Location:
    Sydney
    I think mortgage broking and financial advising is something that you have to be committed for 100%. It is not a simple shop-based business such as retail where you can delegate majority of the work. You have to dig deep to learn the ins and outs of the business and at the same time get a couple of quick wins (ie. successful loan submissions) to establish your credibility. Essentially you will be selling yourself and the services, and credibility is what determines whether the customer will choose to go with you or the next mortgage broker.

    Moreoever, the requirements to be a broker is stricter than ever with the introduction of NCCP (National Consumer Credit Protection Legislation) regime. A lot of part time brokers who practice this along with selling other services like financial planning, etc have been wiped out from the industry since this legislation because they simply can't keep up with the licensing requirements. If professionals like them can't keep up, it is all the more reasons for beginners to focus on mortgage broking 100% full-time.
     
  3. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    I was a broker for many years and then became a solicitor. I have just decided to get back into broking again (in conjuntion with law) and it is not easy.

    You will need to complete a Cert IV or a Diploma (from August I hear). Get PI Insurance, Alternative Dispute Resolution membership, Join FBAA or MFAA do an anti Money Laundering Course and then also join an Aggregator.

    Then you will have to do the accreditation course with each bank.

    All the above is pretty costly time consuming and you will have to set up you company etc. It is not difficult to do though.

    Once you have done all that then you will need to find the clients.