Mortgage Brokering Lead Generation from Project Sales
- June 7, 2022
Dear Oxbridge Partners and Affiliates,
Oxbridge has an astonishing number of projects available and have sold a very very large number of project sales (off-plan apartments, townhouses and land + house). Project sales are also a great source of leads for mortgage and private finance brokers. In this session Oxbridge will outline some of the ways in which project sales can significantly increase lead generation for your mortgage brokering business.
Currently about 50 members are both DUAL Qualified in mortgage brokering and real estate. This is both rare and exceptional. VERY VERY few people are qualified in both in either industries.
Time and Date: Monday 11th July, 2022, 11:00am
Zoom: https://zoom.us/j/6806901300
ABOUT THE MORTGAGE BROKERING BUSINES
Although the details around when and how brokers receive commission varies from lender to lender, generally speaking: Upfront commission: 0.65% (+GST) to 0.7% (+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 and you receive the funds for your mortgage. Trail commission is what the broker receives every month for the life of the loan. Usually, this trail is set at 0.15% per annum based on the remaining loan amount each year. Alternatively and now commonly, trail may increase incrementally over time. For example, XYZ bank might pay trail in the following way: Year 1: 0% Year 2: 0.165% Year 3: 0.22% Year 4: 0.275% Year 5: 0.33% Year 6 onwards: 0.385% 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* 0.15%) = $105,000 (upfront) + $22,500 (Trail) = $127,500.
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.
The Oxbridge Team
