Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

One-man broker firms untenable

stack documents ta stack documents ta
Malavika Santhebennur 2 minute read

A Sydney-based broker opines that broker firms need a team of brokers to operate efficiently as home loan applications become more complex.

The growing complexity of home loan applications is making single staff mortgage broking operations increasingly impractical, according to one Sydney-based broker.

Loan Market director Daniel Pym told The Adviser’s Elite Broker podcast it is currently too demanding for a broker to singlehandedly manage a home loan deal given the arduous compliance requirements and the expenses involved in the process.

“There’s so much work you have to do to take a deal from beginning to end and if you try and take it on, on your own, you can do it but it’s really draining,” Mr Pym said.

“It’s probably not, in my opinion, effective anymore. You need a team of people to help you.”

Advertisement
Advertisement

He said the living expenses forms, which lenders require to assess an applicant’s borrowing capacity, are onerous and placing pressure on mortgage brokers.

“Those living expenses forms are killing everyone, I think,” Mr Pym said.

“If we could just get some standardisation across lenders where one lender would treat expenses as discretionary and others would treat that as mandatory, that would save a lot of time.”

For brokers who are at the beginning of their career, Mr Pym suggested they speak to more experienced brokers in their firms to guide them through the complexity.

“What I did was I leaned on and asked guidance from the best brokers in Loan Market,” he said.

“You don’t have to re-create the wheel. The formula is already there. You just have to see what other brokers do and pick what you like, adopt it and just do it.”  

Daniel Pym, who has 18 years of experience as a mortgage broker, recently spoke to The Adviser’s Annie Kane on the Elite Broker’s podcast.

You can listen to the rest of the podcast here.

Make sure you never miss an episode by subscribing to us now on iTunes.

Follow The Adviser on social media: Facebook, Twitter and LinkedIn.

[Related: Why this Sydney broker is venturing into new markets]

One-man broker firms untenable
stack documents ta
TheAdviser logo
stack documents ta

Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

FROM THE WEB
more from the adviser
Peter White Mike Felton 2 ta Associations back broker separation reforms

Both industry associations have called for “greater transparenc...

board room office ta MFAA welcomes new board members

Two brokers have become the newest directors elected to the Mortg...

question marks blue Major mortgage borrower survey launches

A major mortgagor survey has launched, aiming to highlight the ex...