Five top brokerages reveal how they help their new recruits become confident brokers to be reckoned with
New-to-industry brokers usually have to face some tough realities when starting out: learning the industry, how to write loans, client interaction, sales and leads – and often on a tight budget before they start to make an income on a commission-only structure.
Whether they’re part of a big franchise or a small brokerage, it’s fair to say that all new brokers will find starting out a challenge. The industry has its own challenges, too – namely, finding effective ways to combat its ageing community. The high turnover of new entrants has prompted industry associations to seek new ways to attract talent – the FBAA has its apprenticeship program, and the MFAA recently launched a traineeship program.
“The whole point of what we do is to mitigate that ageing population, and there is a good swell of people starting to take interest in coming into the industry,” says FBAA CEO Peter White. He says the biggest challenge for brokers is compliance and obtaining the base knowledge. “Once you get the basics right, everything is a lot easier, but if you don’t get it right, everything becomes extremely hard. It’s like building a house; if you don’t build the foundations right, it topples over and crumbles.”
On the other hand, MFAA CEO Siobhan Hayden points to the initial lack of income as the hardest part for new brokers. “You do need strong support for new entrants, given the barriers to success ... that long lag time with money. The traineeship solution definitely provides a base income for that proposition, which I think is critical to success.”
A number of brokerages also have taken on the responsibility of helping new brokers cope financially and gain industry knowledge, developing strategies that give brokers the best chance of remaining in the industry long-term. MPA spoke to five of those brokerages and the leaders who are dedicated to bringing on board new-to-industry recruits. We wanted to know how they transform new entrants into successful, confident brokers through in-house training programs, financial support, mentoring and individually tailored experiences.
The Australian Lending & Investment Centre
The Australian Lending & Investment Centre [ALIC] is an independent brokerage in the heart of Melbourne’s CBD that specialises in investment lending. Winners of the 2014 Australian Mortgage Award for Brokerage of the Year, ALIC have fine-tuned their highly effective training program and expect $60m a year from their second- and third-year brokers.
Principal Mark Davis explains their new recruits undergo an 18-month training and mentoring program before they operate as a broker under ALIC. “We then blend them into a role that combines getting some salary with building up sales slowly to get them financially comfortable,” Davis says. “The transition of training 60 hours a week to [suddenly being] in a 90% sales role is the hardest to get your head around, but after six weeks, this is normally all forgotten due to the training received.”
The intensive course has a very high retention record – the home loan division saw zero dropouts during the first two years, and only a few dropped out in the investment lending division. “During training, we have had a couple who have been in shock after two weeks with the workload and have chosen other careers, which is fine by all parties,” Davis says. “That is the time you want them reneging.”
He points out how vital the training program is to ALIC’s success: “Without our methodology under ALIC, I have no doubt we would not have written $635 million last year as a business.”
But Davis says he would like to see more support from industry associations regarding recruitment and retention within the industry. “The Industry bodies need to look at ways of attracting more educated and experienced people to this great industry that services 55% of the lending requirements nationally.”
Aussie Home Loans
Aussie Home Loans won the Best Career Development Program award at the 2015 Asia-Pacific Banking & Finance Magazine Awards in May. Lynda Harris, Aussie’s general manager for people and culture, told MPA about the multi-layered training program each new recruit goes through, guided by a team of marketing consultants, credit coaches and sales leaders.
“They have a very strong focus in the first six to nine months with brokers,” she says. “That is the hardest thing if you’re new to industry – figuring out what the lenders want and all the different aspects to products. Our model is such that we can take someone without a financial services background, and we provide the sufficient training and coaching and support to provide the skills and experience to make them into successful mortgage brokers.”
Upon joining Aussie, new recruits embark on a three-week induction program and then an intensive two-year training program under the franchise’s in-house accredited mentors. “There’s a structured program of workshops, one-on-one coaching sessions, online training, discussions with peers around best practice, and meeting with that marketing person or with that credit coach person,” Harris explains, pointing out that the percentage who pull out is falling year-on-year, which she credits to the company’s focus on retention during the crucial six- to nine-month mark.
“In those early days, someone in our model is learning about a home loan and then learning to run their own business,” she says. “They’re working for the first time in a commission-only environment, so they’re worried about how they’re going to put food on the table, and it’s quite an emotional roller coaster. It’s that one-on-one support that makes a huge difference to how quickly they learn to be an effective mortgage broker.”
N1 Finance
Based out of Sydney, Brisbane and Melbourne, N1 Finance came seventh in MPA’s Top 100 Brokers in 2014; earlier this year, they launched the first Australian mortgage comparison website in Chinese to cater to their growing mainland Chinese client base.
N1’s new training program has been up and running for a few months, and managing director Ren Wong says the response has been great. N1 provide a structured eight week program with a two-week induction that covers the essentials of the loan cycle, including case studies, role-play scenarios, business plans and relationship building, plus a mentor to guide each broker along the way. “[Mentoring] is probably the most important element to keep them motivated and sustained through the steep learning curve,” Wong says.
Many new-to-industry brokers are overly optimistic and need to adjust their expectations, he points out. For example, they’re largely unaware of how much compliance work is required alongside the sales component of the role. “A lot of them realised it’s not what they expected. Apart from the face-to-face communication they need to do, learning how to use CRM, apply online and proper compliance checks actually takes up most of the time.”
N1’s training is focused on equipping new brokers with the ability to become more than residential brokers. “We have fine-tuned the program to also include commercial lending, basic accounting and financial planning knowledge,” Wong says.
He feels the industry can improve retention by making mortgage broking a corporate-style job. “Our brokers are PAYG; once they have gained their relevant qualification, they’re entitled to regular wage,” he says. “Unlike some, the level of wages we are offering is not minimal plus commission – we actually offer a standard wage.”
Wong adds that finding recruits is still a major issue. “I don’t deny the importance of retaining successful brokers, but we need new blood and young talent, especially in the digital age.”
Shore Financial
At just two and half years old, Shore Financial, located in Sydney and Melbourne, has settled more than $1bn in mortgages – and the average age of their brokers is only 26.
Managing director and MPA Top 100 broker Alex Nochar explains all their new recruits had no experience in broking, and what they look for above all is the right attitude – a driven, positive person with a willingness to learn. “The attitude is absolutely critical. Because you can teach any skill, but you can’t teach a good attitude.”
Shore Financial’s new recruits are on a part salary/part commission structure while they undergo training to help them through that time of limited income. The training program itself is highly tailored to each individual recruit; it lasts a minimum of four months, but can be stretched as long as the
new broker requires.
“We want to support them; we don’t leave them out to dry,” Nochar explains. “Ultimately, they don’t go out on their own until they’re in a position to do so and they’re comfortable to do so. Everyone’s different, and the key to it is understanding that person and their situation and guiding them through so they do get through it.”
The training program itself involves a month of initiation; recruits are then teamed up with a senior broker to understand the back office component, the lending process and systems. Then they move onto lead generation and sales, all before sitting in front of a client.
“We let them work alongside the senior brokers for four to six months so they can understand all the aspects of the business before they start having a go on their own,” Nochar says. “They come in with their eyes open fully, understanding what’s expected of them and what they need to do to get themselves in the position to be financially independent. I think that’s the key to it – I think you’ve just got to be absolutely crystal clear about the whole process of what’s involved.”
Australian Credit and Finance
The training model at Australian Credit and Finance breaks down the loan settlement process into separate components, akin to an assembly line. According to Domenic Circosta, executive manager for sales, culture, and development, this allows brokers to develop a higher skill level by focusing on fewer tasks.
Circosta says lead generation is usually one of the hardest things for new brokers industrywide, so Australian Credit and Finance have effectively removed it from brokers’ responsibilities and transferred it to their sales team so brokers can spend more time on lender policies. “We have doubled our team size since last year and are on track to triple the size of the broker team by the end of 2015,” Circosta says.
He says their focus on mentoring is the most important aspect of their program and what sets them apart in the market. “A great human being with excellent product knowledge is an unstoppable force in an industry like mortgage broking.”
But although mentoring is a vital component in training confident brokers, Circosta says training programs need to be more reflective of the industry. “Collaboration, one-on-one coaching and mentoring are imperative, but gone are the days of telling a new-to-industry broker to join a sports club to generate business.”
The majority of their brokers also receive a base salary plus commission, and Circosta delivers an upskilling session each morning after induction to all new and existing brokers. “The training and collaboration with colleagues not only fast-tracks the learnings of the recruits, but also builds strong teamwork and a culture of assistance, which is unusual in a traditionally competitive sales environment.”
Together, these five brokerages showcase that a well-thought-out training program is a valuable investment that results in very high retention rates and not only guides new brokers to success but also leads them to write loan volumes to be reckoned with by their second or third year. Their training is an intensive, all-encompassing marathon, which can include 60-hour-plus weeks, lasting between four to 18 months, often before they even begin operating as a broker.
The forward thinkers behind these training programs acknowledge how important they are to each brokerage’s overall success; all consider the base salaries to be worth the payoff and mentoring to be the most important contributor to seeing brokers through those crucial first six to nine months.
Although these brokerages vary in size, many of the training concepts they have implemented can be applied across the industry, from specialist brokers to one-stopshops. If more new-to-industry recruits are guided in this way, it will only strengthen the future of mortgage broking.
Whether they’re part of a big franchise or a small brokerage, it’s fair to say that all new brokers will find starting out a challenge. The industry has its own challenges, too – namely, finding effective ways to combat its ageing community. The high turnover of new entrants has prompted industry associations to seek new ways to attract talent – the FBAA has its apprenticeship program, and the MFAA recently launched a traineeship program.
“The whole point of what we do is to mitigate that ageing population, and there is a good swell of people starting to take interest in coming into the industry,” says FBAA CEO Peter White. He says the biggest challenge for brokers is compliance and obtaining the base knowledge. “Once you get the basics right, everything is a lot easier, but if you don’t get it right, everything becomes extremely hard. It’s like building a house; if you don’t build the foundations right, it topples over and crumbles.”
On the other hand, MFAA CEO Siobhan Hayden points to the initial lack of income as the hardest part for new brokers. “You do need strong support for new entrants, given the barriers to success ... that long lag time with money. The traineeship solution definitely provides a base income for that proposition, which I think is critical to success.”
A number of brokerages also have taken on the responsibility of helping new brokers cope financially and gain industry knowledge, developing strategies that give brokers the best chance of remaining in the industry long-term. MPA spoke to five of those brokerages and the leaders who are dedicated to bringing on board new-to-industry recruits. We wanted to know how they transform new entrants into successful, confident brokers through in-house training programs, financial support, mentoring and individually tailored experiences.
The Australian Lending & Investment Centre
The Australian Lending & Investment Centre [ALIC] is an independent brokerage in the heart of Melbourne’s CBD that specialises in investment lending. Winners of the 2014 Australian Mortgage Award for Brokerage of the Year, ALIC have fine-tuned their highly effective training program and expect $60m a year from their second- and third-year brokers.
Principal Mark Davis explains their new recruits undergo an 18-month training and mentoring program before they operate as a broker under ALIC. “We then blend them into a role that combines getting some salary with building up sales slowly to get them financially comfortable,” Davis says. “The transition of training 60 hours a week to [suddenly being] in a 90% sales role is the hardest to get your head around, but after six weeks, this is normally all forgotten due to the training received.”
The intensive course has a very high retention record – the home loan division saw zero dropouts during the first two years, and only a few dropped out in the investment lending division. “During training, we have had a couple who have been in shock after two weeks with the workload and have chosen other careers, which is fine by all parties,” Davis says. “That is the time you want them reneging.”
He points out how vital the training program is to ALIC’s success: “Without our methodology under ALIC, I have no doubt we would not have written $635 million last year as a business.”
But Davis says he would like to see more support from industry associations regarding recruitment and retention within the industry. “The Industry bodies need to look at ways of attracting more educated and experienced people to this great industry that services 55% of the lending requirements nationally.”
Aussie Home LoansAussie Home Loans won the Best Career Development Program award at the 2015 Asia-Pacific Banking & Finance Magazine Awards in May. Lynda Harris, Aussie’s general manager for people and culture, told MPA about the multi-layered training program each new recruit goes through, guided by a team of marketing consultants, credit coaches and sales leaders.
“They have a very strong focus in the first six to nine months with brokers,” she says. “That is the hardest thing if you’re new to industry – figuring out what the lenders want and all the different aspects to products. Our model is such that we can take someone without a financial services background, and we provide the sufficient training and coaching and support to provide the skills and experience to make them into successful mortgage brokers.”
Upon joining Aussie, new recruits embark on a three-week induction program and then an intensive two-year training program under the franchise’s in-house accredited mentors. “There’s a structured program of workshops, one-on-one coaching sessions, online training, discussions with peers around best practice, and meeting with that marketing person or with that credit coach person,” Harris explains, pointing out that the percentage who pull out is falling year-on-year, which she credits to the company’s focus on retention during the crucial six- to nine-month mark.
“In those early days, someone in our model is learning about a home loan and then learning to run their own business,” she says. “They’re working for the first time in a commission-only environment, so they’re worried about how they’re going to put food on the table, and it’s quite an emotional roller coaster. It’s that one-on-one support that makes a huge difference to how quickly they learn to be an effective mortgage broker.”
N1 Finance
Based out of Sydney, Brisbane and Melbourne, N1 Finance came seventh in MPA’s Top 100 Brokers in 2014; earlier this year, they launched the first Australian mortgage comparison website in Chinese to cater to their growing mainland Chinese client base.
N1’s new training program has been up and running for a few months, and managing director Ren Wong says the response has been great. N1 provide a structured eight week program with a two-week induction that covers the essentials of the loan cycle, including case studies, role-play scenarios, business plans and relationship building, plus a mentor to guide each broker along the way. “[Mentoring] is probably the most important element to keep them motivated and sustained through the steep learning curve,” Wong says.
Many new-to-industry brokers are overly optimistic and need to adjust their expectations, he points out. For example, they’re largely unaware of how much compliance work is required alongside the sales component of the role. “A lot of them realised it’s not what they expected. Apart from the face-to-face communication they need to do, learning how to use CRM, apply online and proper compliance checks actually takes up most of the time.”
N1’s training is focused on equipping new brokers with the ability to become more than residential brokers. “We have fine-tuned the program to also include commercial lending, basic accounting and financial planning knowledge,” Wong says.
He feels the industry can improve retention by making mortgage broking a corporate-style job. “Our brokers are PAYG; once they have gained their relevant qualification, they’re entitled to regular wage,” he says. “Unlike some, the level of wages we are offering is not minimal plus commission – we actually offer a standard wage.”
Wong adds that finding recruits is still a major issue. “I don’t deny the importance of retaining successful brokers, but we need new blood and young talent, especially in the digital age.”
Shore Financial
At just two and half years old, Shore Financial, located in Sydney and Melbourne, has settled more than $1bn in mortgages – and the average age of their brokers is only 26.
Managing director and MPA Top 100 broker Alex Nochar explains all their new recruits had no experience in broking, and what they look for above all is the right attitude – a driven, positive person with a willingness to learn. “The attitude is absolutely critical. Because you can teach any skill, but you can’t teach a good attitude.”
Shore Financial’s new recruits are on a part salary/part commission structure while they undergo training to help them through that time of limited income. The training program itself is highly tailored to each individual recruit; it lasts a minimum of four months, but can be stretched as long as the
new broker requires.
“We want to support them; we don’t leave them out to dry,” Nochar explains. “Ultimately, they don’t go out on their own until they’re in a position to do so and they’re comfortable to do so. Everyone’s different, and the key to it is understanding that person and their situation and guiding them through so they do get through it.”
The training program itself involves a month of initiation; recruits are then teamed up with a senior broker to understand the back office component, the lending process and systems. Then they move onto lead generation and sales, all before sitting in front of a client.
“We let them work alongside the senior brokers for four to six months so they can understand all the aspects of the business before they start having a go on their own,” Nochar says. “They come in with their eyes open fully, understanding what’s expected of them and what they need to do to get themselves in the position to be financially independent. I think that’s the key to it – I think you’ve just got to be absolutely crystal clear about the whole process of what’s involved.”
Australian Credit and Finance
The training model at Australian Credit and Finance breaks down the loan settlement process into separate components, akin to an assembly line. According to Domenic Circosta, executive manager for sales, culture, and development, this allows brokers to develop a higher skill level by focusing on fewer tasks.
Circosta says lead generation is usually one of the hardest things for new brokers industrywide, so Australian Credit and Finance have effectively removed it from brokers’ responsibilities and transferred it to their sales team so brokers can spend more time on lender policies. “We have doubled our team size since last year and are on track to triple the size of the broker team by the end of 2015,” Circosta says.
He says their focus on mentoring is the most important aspect of their program and what sets them apart in the market. “A great human being with excellent product knowledge is an unstoppable force in an industry like mortgage broking.”
But although mentoring is a vital component in training confident brokers, Circosta says training programs need to be more reflective of the industry. “Collaboration, one-on-one coaching and mentoring are imperative, but gone are the days of telling a new-to-industry broker to join a sports club to generate business.”
The majority of their brokers also receive a base salary plus commission, and Circosta delivers an upskilling session each morning after induction to all new and existing brokers. “The training and collaboration with colleagues not only fast-tracks the learnings of the recruits, but also builds strong teamwork and a culture of assistance, which is unusual in a traditionally competitive sales environment.”
Together, these five brokerages showcase that a well-thought-out training program is a valuable investment that results in very high retention rates and not only guides new brokers to success but also leads them to write loan volumes to be reckoned with by their second or third year. Their training is an intensive, all-encompassing marathon, which can include 60-hour-plus weeks, lasting between four to 18 months, often before they even begin operating as a broker.
The forward thinkers behind these training programs acknowledge how important they are to each brokerage’s overall success; all consider the base salaries to be worth the payoff and mentoring to be the most important contributor to seeing brokers through those crucial first six to nine months.
Although these brokerages vary in size, many of the training concepts they have implemented can be applied across the industry, from specialist brokers to one-stopshops. If more new-to-industry recruits are guided in this way, it will only strengthen the future of mortgage broking.
