A new mortgage broker says building a client network is one of the most challenging tasks when joining the mortgage industry.
“Lots of brokers who have worked in the industry for many years have existing databases and can get referrals quite easily from their contacts, so as a new-to-industry broker I am finding myself hitting up friends, family, ex-work colleagues,” said Melbourne broker Andrew Rennie (pictured), who works at Helping Hand Finance.
“I have also found no two clients are the same, so you need to approach each one slightly differently and adapt where you need to. It is important to understand client nuances and their circumstances, whether they are a first home buyer, investor, a house and land client, etc.”
Rennie, a former News Corp journalist, has only been a mortgage broker for eight months. He said he joined the industry because he felt it was time for a change and he had strong communication skills.
He said a new-to-industry broker should partner with a mentor to provide guidance and wisdom through experience.
“I am fortunate enough to have a good mentor [Andrew Peake of Impact Home Loans] with many years’ experience,” Rennie said.
“Many people in this industry say the more clients a broker has, the less time they need to spend developing new business. I have found it can be tricky and time-consuming attracting new clients.”
Rennie said social media was a good tool to attract new business, despite having its challenges.
“LinkedIn is good to connect with other brokers within the industry, however not so good for attracting new clients,” he said.
“Facebook and Instagram usually provide less qualified leads. You might come across someone who may be ready to engage with a broker but they might be talking to multiple brokers at one time, so this would be considered a less qualified lead.”
Rennie said his current clients’ main concern was rising interest rates.
“People I am mainly speaking with about refinancing are saying they do not need to and they are comfortable with their current home loan. However, once interest rates started moving in May, they are now starting to look at ways to save money,” he said.
“As cost-of-living increases, you will find people have more control on spending more or less on groceries, where to fill their car up with petrol, however they cannot control the cost of their home loan with variable interest rates on the move.”
Rennie’s advice to other new brokers was to align yourself with people who were in similar situations as you.
“It can be daunting working on your own, so I find it helpful to bounce ideas off people who are in similar situations,” he said.
“I enjoy working on different deals with clients so I can find what I like and what I think I can add value or specialise in. My approach is I want to complete as many deals as I can and not pigeonhole myself.”