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A majority of mortgage brokers believe entry-level advisers should be paid a salary.
A recent straw poll conducted by The Adviser found that 52.8 per cent of brokers think new recruits deserve a salary.
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Many brokers believe a salary will help the industry attract new blood – something it desperately needs to do.
Statistics from the Mortgage & Finance Association of Australia (MFAA) show the third party distribution channel is an ageing industry.
In the past two years, the proportion of the MFAA’s membership under the age of 30 has almost halved, falling from 11 per cent to 6 per cent.
Meanwhile, the percentage of brokers over the age of 50 has grown from 27 per cent to 37 per cent.
Liberty’s John Mohnacheff told The Adviser that it is vital brokerages pay their new brokers a salary.
According to Mr Mohnacheff, if the industry does not provide incentives to its new recruits, the third party channel runs the risk of becoming an ageing cottage industry.
“We have got to make mortgage broking sexy,” he said. “If we want to attract young, smart, educated professionals, we have to spend money.
“As it stands, there is no appeal in being a mortgage broker. If you look at finance-related industries that have managed to recruit and retain good quality young players, like stock broking and insurance broking, they have one thing in common – they pay good salaries and offer new recruits the opportunity to earn good bonuses.
“If I have just finished university and am looking for a job, I am not going to enter a profession where I don’t earn income straight away. At the end of the day, if we want this industry to grow and continue to be successful, we have to pay brokers.”
