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The first half of 2024 saw the media take aim at broker remuneration after banks voiced frustration with having to pay commission.
In reality, the figures are much lower. According to SEEK, the average mortgage broker earns between $85,000 and $105,000.
A comment on one of Broker Daily’s articles from this discussion said: “Compare this – On a house sale of $1.0m, [a] real estate agency earns commission of >$25k, while if [a] broker provides funding of say $600k for the purchaser, commission would only be $3,900. Quite often the broker would undertake considerably more work than the real estate agent.”
The sensationalised headlines detract from the hard work brokers put in to reach the heights of success.
This was the topic of discussion in the latest episode of Business Accelerator. Host Alex Whitlock was joined by Jason Back, who refuted claims of “overnight success.”
“They work their arses off. They aren’t working 30-hour weeks. These people are working 70, 80, 90-hour weeks. They will bleed for their clients. They love what they do,” Back said.
“These aren’t people that have just turned up, have been overnight successes. We’ve seen them when they’ve been very successful. But the groundwork’s been laid over many years, potentially many decades. They’ve lost a lot of the battles; they’ve broken a lot of eggs. So, let’s not pretend that these people just turned up.”
A major reason for the misconceptions comes from the low barrier of entry. With a Certificate IV in Finance and Mortgage Broking, brokers can begin their journey without the need for a bachelor’s degree.
However, a deep understanding of compliance knowledge, lending expertise, and long-term relationship building is required to be successful.
“It’s not an intellect issue here,” said Back. “The difference between the people that have done incredibly well is generally a couple of things. One is they work incredibly hard and long hours. And for some of them, they’ve been around for quite a while as well.”
Whitlock said that there aren’t many brokers who enter the industry to earn “a fast buck.” Hard workers are necessary as it’s a relentless occupation.
“Brokers I always see as akin [or] on the same parallel with either an accountant or a specialist doctor who have a deep and intimate care factor around their clients. They are doing what they do because they want to get the right outcomes and they will put the hours in because the outcomes are more important than the financial return,” Whitlock said.
Despite the effort it takes and the negative perceptions that may come with the industry, it’s a lucrative and fulfilling option for the right kind of worker. Those who are willing to invest the time and effort into a broking career can thrive.
The best brokers earn their success – one client, one sleepless night, and one hard-fought deal at a time.
[Related: Broker beat up a ‘storm in a teacup’ but not without risk]
