Powered by MOMENTUM MEDIA
the adviser logo
Broker

One-man broker firms untenable

by Malavika Santhebennur4 minute read
Documents

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.

Advertisement
Advertisement

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

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]

stack documents ta

Malavika Santhebennur

Malavika Santhebennur

AUTHOR

Malavika Santhebennur is a content specialist at Momentum Media, focusing on mortgages and finance writing.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

PhilipLowe mb

RBA attempts to curb runaway inflation

On Tuesday (5 July) the Reserve Bank of Australia (RBA) announced at its monetary policy meeting it will increase the...

READ MORE
flood qld suburbs ta

Home loan support offered to NSW flood victims

Widespread persistent heavy rain over large swathes of NSW over the weekend and into Monday (4 July) has caused major...

READ MORE
Dr Jane Rennie CPA

Accountants to decline ‘capacity to repay’ requests

The leaders of CPA Australia, the Institute of Public Accountants (IPA), and the Chartered Accountants Australia and...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more