
When I started ProSolution back in 2002, we only offered mortgage broking services. I left a career in corporate finance at Deloitte to establish a mortgage broking firm because I strongly believed in the tremendous value brokers can provide to clients. In fact, around 2010–2012, I even wrote a manifesto outlining why I believed that the mortgage broking industry’s market share would eventually exceed 50%. At the time, I also created a successful online training course for mortgage brokers and spoke at various conferences to share my vision and insights.
Fast forward to today, and the industry’s market share has grown to about 75%. To be clear, I’m not claiming any credit for that growth. 😜
Back in 2010, my thesis was that mortgage brokers often serve as the first point of professional advice for many Australians, particularly first-home buyers. Brokers typically have a strong network of trusted professionals, and by building relationships with clients early, they are in a unique position to guide them in the right direction e.g., make sure they have a good accountant, introduce them to a reputable buyer’s agent, talk them out of buying a dud property, and so on. This not only helps clients make better decisions but also prevents them from making costly mistakes – hence brokers have an opportunity to add a lot of value.
Most bank staff cannot compete with this offering.
Of course, not all mortgage brokers are equal
Like in most industries, the top 20% of performers in mortgage broking are far ahead of the average, delivering exceptional service and advice. On the other hand, the bottom 50% should be avoided entirely.
Thankfully, the overall calibre of people entering the mortgage broking industry has significantly improved over the past 20 years. However, as with any commission-based industry, there are still some bad apples out there, so I’m not saying that all brokers are great.
What I want to share with you is what I think a great mortgage broker looks like – they tend to have five attributes.
(1) Property investment experience is essential
It’s probably no surprise that I spend a lot of time thinking deeply about my own financial situation, and I’ve been doing so for many years. With over 20 years of property investing experience, I’ve likely encountered and thought about, a wide range of scenarios. And if I haven’t experienced it personally, chances are one of my clients has. That level of experience is invaluable.
This is why it’s so important to work with a firm where the broker or business leader has extensive personal experience in property investing. Someone with this depth of knowledge can educate and advise you far better than someone with limited or no experience.
Ultimately, the primary reason to seek professional advice is to avoid costly mistakes. That’s why the broker’s experience is the most valuable asset you can leverage – it helps you make smarter decisions and avoid making expensive mistakes.
(2) Good tax knowledge and experience
Interest is the largest tax-deductible expense for most property investors, so it’s critical to ensure you don’t inadvertently jeopardise this valuable tax deduction.
However, recognising when tax planning is necessary isn’t always obvious. For example, first-home buyers often don’t consider that the property they’re purchasing might not be their forever home. It could become an investment property one day. This possibility is something we consider when advising clients, including structuring their loan to maximise their tax position, if that scenario unfolds.
Frankly, I’m often stunned by the lack of tax knowledge some bankers and mortgage brokers display. I’ve seen cases where their advice has led clients to structure loans in ways that ultimately cost them a fortune in lost tax deductions.
To be clear, mortgage brokers are not tax advisors. Only a registered tax agent can provide tax advice. What I’m suggesting is that a broker with a strong understanding of how loan structures impact tax efficiency can help ensure costly mistakes are avoided.
One of the key advantages our brokers enjoy is that they work side by side with accountants in the same office, often collaborating on the same clients. This creates a knowledge-sharing environment where brokers deepen their understanding of tax implications, and accountants gain valuable insights into loan structuring. After all, an accountant with limited knowledge of loan structuring isn’t much help either.
Avoid dealing with a mortgage broker that doesn’t understand tax.
(3) They have a solution-focused mindset
Back in 2009, I wrote a book called The Property Puzzle. The idea behind the title was that building a property portfolio is like solving a puzzle – all the pieces need to fit together in the right way for it to work. Providing a mortgage broking service often feels very similar.
We’re presented with a client’s financial scenario: their income, expenses, assets, and liabilities – along with their goal/s, like buying an investment property. Our job is to solve that puzzle by determining what’s in the client’s best interest and then matching them with the right lender that aligns with their situation and needs.
Some loan applications are simple and straightforward. But there are always complex scenarios, and that’s where a problem-solving mindset becomes critical. If our experience tells us a deal is possible, it’s often just a matter of finding the right lender, or even the right person within that lender and presenting a strong case. It’s about communicating why we’re confident in the deal and then tenaciously working until we’ve secured a solution for the client. Brokers can establish a strong reputation with lenders, particularly if they have worked with them for many years. A lender will know that the brokers’ loan book has demonstrated a solid track record of performance, such as no defaults. This credibility can significantly strengthen loan applications.
That’s why it’s so important to work with a mortgage broker who has a “client for life” mindset. It’s not just about setting up one loan today – it’s about investing the time and effort to find the right solution and building a relationship that delivers value over a lifetime.
(4) They have a lot of clients that are like you
In mortgage broking, it’s difficult to be a jack of all trades, managing a wide variety of clients and products like first-home buyers, low-doc loans, self-employed clients, commercial loans and so on. While it’s not impossible, it’s extremely challenging to do it all well. That’s why most successful brokers often focus on a niche. Specialising allows them to gain deep experience in a particular area and build strong relationships with lenders or specific bankers that cater specifically to that niche.
It’s always a good idea to work with a broker who regularly deals with clients in a similar situation to yours.
For example, our specialisation for many decades has been working with high-income clients, including self-employed individuals, PAYG earners, and sole traders like barristers, professional services and medicos. Over time, we’ve built strong relationships with key banks that offer unique products tailored to this market. These include benefits like more flexible (dare I say pragmatic) credit policies, loan terms longer than 30 years to boost borrowing capacity, mortgage insurance waivers, and access to private banks.
When choosing a broker, ask if they have a niche and consider whether it aligns with your specific needs and goals. A broker with relevant expertise can make a big difference.
(5) They are willing to tell you what you don’t want to hear?
We will never help a client do something that isn’t in their best interest. If we believe borrowing isn’t the right move, we’ll actively counsel clients against it. While that advice isn’t always what clients want to hear, I believe that’s the hallmark of a good advisor – someone willing to have hard conversations when necessary.
I’m proud to say that in nearly 23 years of operation, not one of our clients has ever defaulted or run into trouble with their loans. Mortgages are fantastic servants but terrible masters, and building wealth is a marathon, not a sprint. It’s crucial to borrow within safe limits. That doesn’t mean we never push boundaries. Sometimes, it’s entirely appropriate to be aggressive with borrowing, especially if a client needs a bit of a nudge to achieve their goals.
The key is working with an advisor who will always be upfront with you, even if the advice is difficult to hear. This might include telling you not to borrow more money or steering you away from buying a particular property.
You need a mortgage broker who’s not afraid to say no.
Notice that I haven’t mentioned interest rates and fees
Many people assume that the defining trait of a great broker is simply getting you the lowest interest rate. But if that’s all you’re after, there are countless websites that can do that for you.
While securing the best deal is undoubtedly important, that’s not where a broker’s true value lies. A great broker’s real contribution is helping you achieve your financial goals by ensuring you make smart, well-informed decisions along the way.