Recent entrants into an industry that sources around 45% of all new home loans# are breaking the myth that a mortgage broker must have either
financial services or sales experience.
Mortgage Choice, Australia’s Best Mortgage Broker*, profiled all its franchise owners who started during 2005 and 2006 for the latest ‘Franchise Recruitment Index’ and found they are a broad collection of people with widely diverse career backgrounds.
From zoo director to branch manager to royal navy marine technician, this group of Australians decided buying a mortgage broking franchise was the right career path for them to move into.
National Corporate Affairs Manager for Mortgage Choice, Warren O’Rourke said the Index analyses the background and personal attributes of new franchisees, looking at details such as employment history, qualifications, age and gender.
“The results are always interesting. For example, during this period of time Mortgage Choice welcomed two radio presenters into the fold. Not the most obvious career transition!” he said.
Of all the new Mortgage Choice franchisees in that two-year period, 8% moved from a Banking or Finance role, 31% were from a Senior Executive/Managerial role and 17% came from Sales. Less than half (48%) came onboard with a tertiary education.
In comparison, for 2004’s new franchisees, 16% were from Banking or Finance, 12% were from Senior Executive/Managerial and 22% came from Sales. 40% were tertiary qualified.
Of those who became franchisees between 1995 and the end of 2003, 22% were from Banking or Finance, 28% were from Senior Executive/Managerial and 13% came from Sales. 28% were tertiary qualified.
“There is an obvious decrease in the amount of new franchise owners with a banking or finance background, which is a clear indication that anyone looking to become a
mortgage broker doesn’t need financial services savvy before taking the intensive two week training course all our new franchisees and loan consultants have to pass before entering the network,” Mr O’Rourke said.
“Also, the jump in the Senior Executive/Managerial category to above any level seen before may indicate the returning trend of more successful professional people looking to control their own career destiny through self-employment”.
Some other interesting backgrounds for the 05/06 Index were: university lecturer, engineer, café owner, financial planner, training manager, real estate company owner, nurse, national sales manager, non-profit organisation executive officer and legal secretary.
So, there is no profile for the ideal mortgage broker. Fundamentally, high quality customer service skill is the key to a broker’s success. This can come naturally, be learnt via sales or customer service roles, learnt less obviously through any role in which helping people is a key part or learnt through formal training.
“Mortgage Choice franchisees are taught to value customer service above all else as that is the basis of our success. We find referrals are the best way for a franchisee to grow and succeed, and a broker won’t be referred on if the service isn’t at or above standard,” Mr O’Rourke said.
In terms of gender spilt, 35% of the franchise owners who came onboard in 2005/2006 are women. This compares positively with the 2004 Index, which saw the females at 25%. Many of these professional businesspeople work motherhood around a challenging but rewarding working week of helping people achieve their property dreams.
Regardless of the imbalance number-wise in gender, the females of the Mortgage Choice franchise network achieve as much success, if not more, than the males. The number one sales performance (both in numbers and volumes) has been held consistently for the past four years by a female, whose business also has the largest loan book.
The 05/06 Franchise Recruitment Index also revealed the youngest person Mortgage Choice accepted as a franchisee in that time was 26 years of age and the oldest was 60 years, with the average starting age 42.5 years.
This indicates a slight rise in the age of new franchise owners compared to the past. In 2004, the average age was 38 years, with youngest aged 23 and the oldest 61. In the first Index, the youngest was 22, the oldest 60 and the average was 38 years.
The average age over Mortgage Choice’s entire years of operation is 39 years. As an illustrative comparison, in 1999 the average age peaked at 46 years.
Mr O’Rourke says the still-relatively young average age of the franchise network is a reflection of modern societal trends, where people are looking for self-employment at an earlier life stage.
“We have seen a growing number of young entrepreneurs joining Mortgage Choice with energy, enthusiasm and drive, hoping to achieve the success they want under their own steam,” he said, “However, there are also a high number of more experienced workers looking for a career change at a later stage in life. Mortgage broking offers great opportunities for people of all ages.”
Only 9% of the 05/06 franchisees had past lending experience, showing previous knowledge about property lending is not at all necessary to run a successful mortgage broking business. In line with the afore-mentioned trend regarding decreasing numbers of new franchisees with financial services experience, lending experience was had by 57% in the 2004 Index and 30% in the first Index.
The level of continual support provided to Mortgage Choice franchisees - new and current - through group and state offices, field teams, induction training, continual professional development and the franchise network itself means someone without any finance or sales training is well equipped to conduct business as a mortgage broker.
Being an enthusiastic ‘people person’ is an important trait but with the right training and support, anyone with a strong drive and motivation to achieve their goals can become a successful broker. The two essential qualities identified in all top performing franchisees is a dedication to high levels of customer service and the ‘fire in the belly’ to develop and build a successful business.
Mortgage Choice was established in 1992, and today has a national network of 445+ franchises. All franchisees and loans consultants undertake the training course then lender accreditations to equip them with the lending knowledge and personal skills necessary to either establish, or work within, a successful franchise.
# Recent report by JP Morgan Fujitsu
* Australian Banking & Finance Magazine Awards, May 2007.10-Oct-2007