I will fast forward past the numerous discussions and commentary about the changing landscape of Australian mortgage adviser remuneration. Let's assume you have heard the news and read a little press and a few social media posts.
So what happens next?
Regardless of whether we get a pay cut per loan or not we will need to work smarter. Yes, this does go without saying and yes, it has been said many times before.
For those of us that enjoy our work and are fulfilled by helping clients navigate the treacherous banking mortgage minefield we will need to do extra work and possibly be paid less. The only way to make this work financially for you the mortgage advisor is to get more work done in less time.
Here are two smart options for smart brokers.
1. Commission management
Let’s start at the back-end. This month you received your normal commission payments. The payment went into your bank. The statement was emailed or maybe you have to download it, in either case chances are, you did not go through that statement line-by-line and compare to last months statement to find the loans that you have not been paid for this month.
If you did this job every month you would find several thousand dollars in missing commission. Trail payments stop being paid every month for all sorts of reasons. If your client goes into the bank for a $10k top-up to reno their bathroom chances are the branch manager will rewrite the loan without the client knowing and you lose your trail. A simple email and a follow up will have the trail reinstated.
iLEND clients that use the commission management system find errors like these just about every month. The same system also identifies clients that have made large deposits into their home loan or those that are paying their loan down quickly. Great clients to “account manage”.
Why are we creating such a fuss about possible remuneration changes when we give ourselves a pay-cut every month.
2. Client Expenses
For nearly a decade iLEND has had the option of a detailed or basic client expenses form. The vast majority of our clients have used the basic form as it is quicker and simpler. In the current environment and as required by many lenders a detailed analysis of the clients expenses is required.
You could sit down with your client for an hour and go through their budget item by item. Or you could send your client a PDF form to complete and email back to you.
The smarter option will be to send your client a link to your website where they can complete the a detailed budget at their leisure and print their own budget with analysis tools. The budget is stored (forever) and available in iLEND for use in the best borrowing capacity and serviceability tool available.
The budget tool in iLEND ticks all the compliance boxes and more. It is fast and efficient. Better yet your clients will get a better service and your business will operate efficiently and professionally.
These are just two simple and effective tools used by smart mortgage advisers.