[FBAA] How to Use Social Media Marketing to Grow Your Brokering Business
- March 1, 2023
Dear Oxbridge Partners and Affiliates,
Oxbridge is a member of the FBAA (Australia’s largest organisation of mortgage brokers). As members we enjoy the full benefits of the FBAA (including 4% off Woolworths, Fuel discounts etc). We are invited to the event “How to Use Social Media Marketing to Grow Your Brokering Business”
Date and Time: 8 March 2023 4:00 PM AEST (3pm QLD, 1pm WA, 2.30pm SA/NT)
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 0.8% (+GST) Trail commission: 0.165% (+GST) to 0.275%+ (+GST)
As you can see, 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. You should ask the brokerage about this upfront so you’re fully informed. (Source https://www.homeloanexperts.com.au/about_us/mortgage-broker-commission-rates/)
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* 0.35%) = $105,000 (upfront) + $52,500 (Trail) = $157,500.
Top brokers in Australia (See https://www.mpamag.com/au/best-in-mortgage/top-100-brokers-2021/317110) 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 very well earning 6 figure commissions. Trail commission is really true passive income
The Oxbridge Team
