[Brokering] Festival of SME – WA
- March 17, 2023
![[Brokering] Festival of SME - WA](https://agents.oxbridge.com.au/wp-content/uploads/2022/03/Oxbridge-Finance-Logo_Transparent-Logo-Copy-300x156.png){kind=logo}
Dear Oxbridge Partners and Affiliates,
Back by popular demand, the Festival of SME is designed to assist you better support your SME clients and diversify into commercial lending.
Registration: https://www.eventbrite.com.au/e/festival-of-sme-wa-tickets-633808407007
Location: Mount Lawley Golf Club 1 Walter Road West Inglewood, WA 6052
Time and Date: Wed, 14 Jun 2023 8:00 AM – 11:00 AM AWST
ABOUT THE MORTGAGE BROKERING BUSINESS
Although the details around when and how brokers receive commission varies from lender to lender, generally speaking: Upfront commission: 0.65% (+GST) to 0.85% (+GST)
The upfront commission is the largest component of the commission. The broker receives this once your loan settles. Trail commission is what the broker receives every month for the life of the loan. Usually, this trail is set at 0.15%-0.40% per annum based on the remaining loan amount each year. To be clear, mortgage brokers don’t work for the banks, although there are some mortgage brokerages that are partly-owned by banks and larger lenders. Oxbridge is always 100% independent (e.g. Aussie is owned by Lendi which is owned by numerous shareholders including CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, RAMS is owned by Westpac, REA owns Mortgage Choice etc)
The key to a successful mortgage broking business are the leads. With over 4,100+ online listings and another 1,000 off market listings the Oxbridge Real Estate business provides an excellent source of lead generation.
Working on a typical loan size of $750,000 and writing 20 loans in the first year. The commission received by the broker would be
$750,000 (20 x 0.70% + 20* 0.45%) = $105,000 (upfront) + $67,500 (Trail) = $172,500.
Top brokers in Australia (See https://www.mpamag.com/au/best-in-mortgage/top-100-brokers-2022/429801) receive well in excess each year of $3M upfront commission and at least 3x that in terms of trail commissions for the life of the loan. Several Oxbridge brokers are doing exceptionally well earning 6 figure income. Some Oxbridge members are dual qualified in mortgage brokering and real estate which is a huge competitive advantage in the market place. Trail commission is really true passive income
The Oxbridge Team
