The new breed of mortgage brokers

The only constant in the world today is change, and new brokers will face a lifetime of learning over their career – but tech, training and solid advice will help

AUSTRALIA'S HOUSING market has always been a rollercoaster, but with interest rates lingering at their highest in years, navigating the twists and turns of property ownership has become more daunting. Enter a new breed of mortgage brokers: tech-savvy, highly trained and equipped with cutting-edge tools, they are reshaping how Australians approach home loans in these challenging times.

“The Lendi Group Graduate Program is an eight-week program providing brokers with targeted skills training supported by on-the-job coaching and development,” says Aaron Hockey, general manager of network development at Lendi Group. “Our new joiners are averaging an incredible eight deals in their first eight weeks.” This focus on rapid skills development is crucial in an industry in which time is money. For self-employed brokers, in particular, the ability to start generating income quickly can mean the difference between success and failure. Major banks are also stepping up to provide comprehensive training

“Mentoring is very important,” says Peter White, managing director of the FBAA. The FBAA is revamping its approach to mentorship, as well as the industry’s, to ensure better quality. “We have a qualification process that all mentors must go through and meet minimum qualifications and capabilities.” The FBAA’s focus on mentorship includes ensuring fair pricing models. White elaborates: “In the past we helped some brokers unwind from [unfair pricing situations], where they were being charged significant money and not writing any business. We are very much focused on making sure that [mentees are] fair and reasonable and equitable to everybody, and that the right outcomes are achieved through mentoring.” Major banks are also recognising the importance of personalised support for new brokers. “New-to-industry brokers will receive dedicated one-on-one support from a specialised on-boarding relationship manager to ensure a successful start with CommBank,” Khan explains. “This personalised support is tailored to address individual needs and help brokers navigate their early days with confidence.” There is no doubt that mortgage broking is growing in appeal as a career, partly as a result of such training and support programs. The most recent MFAA Industry Intelligence Service report shows a jump in new blood entering the industry after a flat period during and immediately after the pandemic.

2,000

Surge in new brokers recruited to industry

and support for new brokers. Razia Khan, general manager third party banking at CommBank, emphasises its commitment to broker education. “We believe our training hub – which is available to our brokers 24/7 – is both innovative and effective,” she says. “Our training hub offers brokers access to both interactive and pre-recorded training workshops, on-demand self-paced training modules, as well as extensive information about industry best practices.” The success of these training initiatives is evident in the numbers. “Since the launch of our training hub in January 2022, we have facilitated more than 100 workshops and engaged with more than 5,000 brokers and their support office staff,” Khan says. “The feedback has been overwhelmingly positive, with more than 90% of participants recommending our interactive training workshops to their colleagues.”

Many in the industry argue that mentorship is equally critical for new brokers. Waldron emphasises the importance of peer-to-peer learning: “Brokers tell us that they find it best to learn the practical elements of running a business from their peers, which is why peer-to-peer learning is a core element of our broker training,” he says. Mortgage Choice takes this approach seriously, actively introducing new brokers to more established professionals to facilitate formal mentoring relationships. Hockey agrees with this strategy. He says, “We have brokers who have been with us for more than 30 years, so there is an incredible amount of knowledge across the group for new brokers to leverage.” This mentorship often extends beyond just the technical aspects of broking. Experienced brokers can provide invaluable guidance on building client relationships, managing work-life balance and navigating the ups and downs of a career in finance.

At CommBank, we’re focused on giving our brokers more confidence in CommBank and delivering an exceptional experience for them and their customers. We are doing this by being reliable, transparent, accessible and adaptable. Our strategy has been designed based on broker feedback and focuses on how we can improve the experience and build a strong and more sustainable third party banking channel. If you’re not already accredited with CommBank, now is a great time to join us as we’ve simplified our accreditation process. Head to www.commbank.com.au/home-loans/broker-accreditation to find out more. If you’re already accredited with CommBank, check out our 24/7 training hub – it’s all part of our commitment to giving you more confidence to build your business and deliver an exceptional homebuying experience to customers.

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The Finance Brokers Association of Australia (FBAA) is a professional body representing, educating and supporting finance and mortgage brokers across the nation. The association had 12,223 members as of 30 June 2024, with 94% of members being customer-facing brokers. The FBAA monitors legislation and represents broker interests to industry regulators, federal government departments and state and federal members of parliament. With a commitment to advocacy, education and ethical standards, the FBAA plays a crucial role in shaping the industry’s future. This ensures that its members are well equipped to meet the evolving needs of their clients.

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Gone are the days when a mortgage broker’s primary tool was a well-thumbed rolodex. Today’s brokers leverage cutting-edge technology to streamline the loan application process and ensure compliance with increasingly complex regulations. “Our proprietary platform makes compliance a competitive advantage for our brokers,” says Hockey. “[It] automatically guarantees the customer’s best interest, with impartial mortgage product assessment based on their circumstances.” This ‘codified compliance’, as Hockey calls it, is the result of decision engine technology that ensures loan applications meet internal quality assurance and compliance policies while also satisfying lender requirements. Mortgage Choice has also developed a rigorous compliance program to address the challenge. “All new brokers who join

Lendi Group was created in 2021 though the merger of Aussie Home Loans and Lendi to form Australia’s largest retail mortgage broker. Both were founded as market disruptors to help Australians get better deals, better rates and better information on home loans. Lendi Group’s platform helps customers compare, apply for and settle loans online while being supported by a team of experts and brokers who power its brands, products, services and relationships. With a shared history of challenging the status quo, the two brands provide different experiences for customers, with the same goal of helping more Australians achieve homeownership.

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“One of the critical things, as a tip for all new brokers and for existing brokers, is don’t take shortcuts”

Peter White, FBAA

Group of business people working at a table at meeting room

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The most successful brokerages and financial institutions are investing heavily in training programs designed to turn newcomers into high-performing professionals in record time – and make sure they can continually reinvent themselves as the environment inevitably evolves. The Broker Success Program at Mortgage Choice is one example. “From day one, new franchise owners are paired with a dedicated franchise development manager [FDM] who is the broker’s first point of contact for any support they need,” says Waldron. “This FDM helps new brokers understand the business of broking and connects them with experienced brokers in our network. “Our Broker Success Program covers critical elements required to build a successful franchise business, including marketing and lead generation, business planning, and training on the platforms, systems and software they’ll need to use in their day-to-day work,” he adds. “Brokers can move through the Broker Success Program at their own pace, based on their experience, learning style and industry knowledge.” These intensive training programs cover more than just the basics of mortgage broking. They often include modules on business planning, marketing and customer service, recognising that success in this field requires a diverse skill set.

“Be open to change”

Anthony Waldron, Mortgage Choice

This new generation is stepping up with advanced technology, intensive training and robust support systems from major lenders. Leveraging innovative tools and resources – from AI-driven compliance platforms to customer relationship management systems – these brokers are uniquely positioned to help clients overcome hurdles in securing home loans, one of which is how quickly the goalposts can move around lending conditions today. Indeed, leaders in the mortgage industry understand that the only constant in the world today is change, and that a commitment to lifetime learning is essential for new brokers. “My advice to anyone starting out in broking is to be curious, invest in their own growth and development and be open to change,” says Anthony Waldron, chief executive of Mortgage Choice and chief executive financial services at REA Group.

Industry experts

Anthony Waldron

Mortgage Choice

Aaron Hockey

Lendi Group

Peter White

FBAA

Razia Khan

CommBank

Industry experts

Razia Khan has been at CommBank for 15 years and held numerous leadership positions prior to her current role as general manager third party banking. Khan was general manager, acquisition and retention in the homebuying business, leading improved customer experience outcomes through technology, digital, marketing and frontline support. She was also general manager of the Direct Lending division. Khan has a passion for the third party banking industry and is dedicated to enhancing the experience of brokers and their customers by offering best-in-class technology, strong relationships and transparency. A member of CommBank’s Inclusion and Diversity council for over four years, Khan is passionate about bringing more women into the industry and advocating for their success.

CommBank

Razia Khan

Peter White, AM, is managing director of the Finance Brokers Association of Australia (FBAA) and one of Australasia’s most respected industry figures with over 45 years of experience across the banking, finance and broking sectors. He was involved in setting up the first RAMS home loans sales office, is a former associate director of AIDC Ltd Investment Bank, and was the first CEO of Wizard Home Loans. As well as leading the FBAA, White is currently the managing director of the Finance and Mortgage Advisers Association of New Zealand and chairman of the International Mortgage Brokers Federation.

FBAA

Peter White

Over a financial services career spanning more than 20 years, Aaron Hockey has developed a passion for leadership, people development and building strong business relationships, which lends itself to his role as general manager of network development at Lendi Group. After long stints at NAB and Bendigo and Adelaide Bank, Hockey joined Aussie in 2018 in a state manager capacity before moving into the role of general manager of retail, in which he led the transition of over 220 stores onto Lendi Group’s proprietary Platform. In early 2024, Hockey took on the role of GM network development with responsibility for the growth of the Lendi Group distribution network and cultivating strong, enduring partnerships with brokers and franchisees.

Lendi Group

Aaron Hockey

Anthony Waldron is the CEO of Mortgage Choice and Financial Services at REA Group. With more than 25 years’ experience across financial services and business management, Waldron has been at the forefront of many strategic changes in the broking industry and is a strong advocate for innovation and customer-centricity in mortgage broking. He is a director of the Field, an employment platform for people with disability, and Simpology, an end-to-end loan origination platform.

Mortgage Choice

Anthony Waldron

Mortgage Choice

Aaron Hockey

Lendi Group

Peter White

FBAA

Razia Khan

CommBank

Industry experts

CommBank

Razia Khan

FBAA

Peter White

Lendi Group

Aaron Hockey

Mortgage Choice

Anthony Waldron

Training for success today and tomorrow

Razia Khan

CommBank

Peter White

FBAA

Aaron Hockey

Lendi Group

Anthony Waldron

Mortgage Choice

Anthony Waldron

Lendi Group

Aaron Hockey

FBAA

Peter White

CommBank

Razia Khan

Networking and mental health support

Published 21 Oct 2024

“We recognise the importance of fostering a supportive and connected community to ensure the wellbeing and success of our brokers”

Razia Khan, CommBank

“We have brokers who have been with us for more than 30 years, so there is an incredible amount of knowledge across the group for new brokers to leverage”

AAron Hockey, Lendi Group

A part of leading digital business REA Group, Mortgage Choice is a national franchise broking business with more than 1,000 brokers and 800 franchisees around Australia. For over 30 years, Australians have trusted Mortgage Choice brokers to help them find the right home loans to finance their property dreams.

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1,500

1,000

500

Men

Women

Total

Oct 20–Mar 21

Apr 21–Sep 21

Oct 21–Mar 22

Apr 22–Sep 22

Oct 22–Mar 23

Apr 23–Sep 23

Location

Sydney

Melbourne

Brisbane, Gold Coast and Sunshine Coast

Adelaide

Change in typical mortgage broker salary, 2021–23

Perth

Canberra

2021 Typical (range)

$95k ($82k–$110k)

$92k ($82k–$102k)

$102k ($82k–$117k)

$87k ($82k–$97k)

$82k ($61k–$92k)

$70k ($50k–$80k)

+15.8%

+10.9%

-6.8%

+3.4%

+15.8%

+35.7%

Change in typical salary

$110k ($95k–$150k)

$100k ($85k–$110k)

$95k ($82K–$120k)

$90k ($82K–$100K)

$95k ($85K–$120k)

$95k ($75K–$110k)

2023 Typical (range)

Source: Hays Salary Guide surveys

The power of mentorship

Mortgage Choice undergo our Level One compliance program, which requires them to submit 12 applications to a dedicated coaching team prior to submitting those loans to the lender,” Waldron explains. This hands-on approach helps new brokers develop good habits from the start, reducing issues with applications and generating a greater number of ‘one touch’ applications – ensuring the best possible customer experience. Hockey emphasises the importance of ongoing compliance education: “Our brokers are given access to market-leading training, systems and processes that have been purposefully designed to facilitate the development of thriving broker businesses.” Banks are also stepping up to support brokers in navigating compliance. “Our third party support team brings a wealth of experience and knowledge to the table and are here to help answer any questions our broker partners may have,” says Khan. “At CommBank, we recognise the pivotal role brokers play in helping homebuyers achieve their property ambitions, and we are here to help them navigate the current lending environment and continue their delivery of exceptional customer outcomes.” But the technological revolution in mortgage broking goes beyond compliance. Many brokerages are now offering sophisticated customer relationship management (CRM) systems that allow brokers to nurture leads and maintain long-term relationships with clients.

Waldron highlights the importance of these tools: “Mortgage Choice brokers have access to a sophisticated CRM platform where they can access a library of self-serve email templates to help build long-term relationships with their customers.” These systems are often integrated with social media management tools and content libraries, allowing brokers to maintain a consistent and professional online presence with minimal effort. “One of the critical things, as a tip for all new brokers and for existing brokers, is don’t take shortcuts,” says White. Finance is one of the most highly regulated industries, and by international standards, the bar is high for compliance in Australia.

Compliance and the tech revolution

“We understand there’s a lot of governance in our industry … but it’s important to make sure that we do things right and we don’t try and take shortcuts because we think there’s an easy way around something,” White says. He encourages brokers to be thorough and seek guidance when needed. “Be diligent and be thorough, and make sure you ask lots of questions of your mentor or your aggregator.”

The current economic environment presents unique challenges for new brokers. With interest rates rising and borrowing power reduced, many potential homebuyers are hesitant to enter the market. However, Waldron sees this as an opportunity. “In the current economic environment, high home loan interest rates and reduced borrowing power is creating complexity for borrowers, which presents a compelling opportunity for brokers to demonstrate their value proposition of choice and expert advice,” he explains. New brokers are being trained to navigate these choppy waters, offering clients strategies to manage higher interest rates and exploring alternative lending options when traditional routes may not be available. White acknowledges that getting off the ground is one of the hardest tasks a new broker faces. “The challenge for new brokers is not unlike the new challenges for any new broker at any point in time, and that is generating business,” he says.

Adapting to economic challenges

He stresses the importance of having a solid business plan and leveraging existing networks. “Quite often it’s things like sporting groups or social groups or religious groups and so on, and community groups as well. [It’s important] that they have social connections as a great foundation to build the business, together with formalising alliances with certain networks like financial planners and real estate agents as well.” The mortgage broking industry is constantly evolving, and successful brokers never stop learning. Both Lendi Group and Mortgage Choice emphasise the value of ongoing education and professional development. “We prioritise continuous education and ongoing professional development to ensure our brokers’ knowledge and skills remain current and up to date,” says Hockey. This includes opportunities for brokers to obtain additional qualifications, such as a Diploma in Finance and Mortgage Broking.

White echoes this sentiment, highlighting the FBAA’s efforts to support broker education. “We strongly encourage everyone to come along to our professional development days series, because that’s where we help to keep people together, united, if you like, so they’re not feeling like they’re completely on their own, just from a brokering point of view,” he explains. The FBAA offers various events throughout the year to support brokers’ ongoing education and continuing professional development. While the prima facie aim of CPD is to keep brokers up to date with necessary work skills, White also emphasises that a big part of all such events – from the FBAA national industry conference to more intimate local group coffee meets – is making brokers feel like they are “part of a bigger family”.

Recognising that success in the mortgage broking industry isn’t just about knowledge and skills, many organisations are placing increased emphasis on networking opportunities and mental health support for brokers. “We recognise the importance of fostering a supportive and connected community to ensure the wellbeing and success of our brokers,” Khan explains. “To encourage networking, we organise regular events such as virtual meetups, state conferences and annual conventions, providing ample opportunities for brokers to share insights, challenges and best practices.” CommBank goes a step further in supporting broker wellbeing. “In certain instances, we can also provide our brokers with access to our comprehensive Employee Assistance Program,” Khan says. “This program provides confidential counselling services available around the clock, ensuring our brokers have the resources they need to manage stress, anxiety and other personal or professional issues whenever they arise.” Similarly, experts in resilience and mindfulness deliver presentations at the Mortgage Choice Professional Development roadshows and this year’s Mortgage Choice Aspire Virtual Masterclass Series focused on wellbeing.

White reflects on his long career in the industry and offers encouragement to new brokers. “I’ve been at it 45 years, and I wouldn’t be doing anything else to be honest – it’s very rewarding and very satisfying,” he says. The success of new brokers will depend on their ability to adapt to changing market conditions, leverage technology effectively and provide value to their clients beyond just finding the lowest interest rate. Those who can master these skills will be well positioned to build successful, long-term careers in the industry. “The road ahead isn’t necessarily a quick and easy road, but stick with it, because it’s rewarding,” says White.

White highlights the FBAA’s proactive approach to mental health support. “We started this conversation back in 2016 when no one would talk about it. Mental health is a big part of our life and what we do,” he says. The FBAA has recently launched its Wellness Hub platform to provide immediate support to those in need. “Our wellness hub enables anyone, whether they’re a member or not, through the public domain area of our website, to get connected directly to specialists who deal with trauma, therapy, psychotherapy, psychologists and so on, so that people can get direct assistance,” White explains. He emphasises the urgency of providing this support. “They don’t have days or a week to be triaged by someone. They need help because tomorrow they may not be with us. So it’s very, very important to us that we not only keep conversations going but we also provide a real, practical solution to people to be able to get instant help.” Despite the challenges that brokers face – in the business environment, in keeping their skill set up to date and in managing their work in a healthy way – the future looks bright for those entering the mortgage broking industry.

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Source: MFAA Industry Intelligence Service, 17th Edition

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