Industry struggles to attract new brokers

With the average age of a mortgage broker now in their fifties, industry leaders are questioning whether the commission-based profession can attract new talent.

Aussie’s top executive admits the industry has lost some of its appeal for the next generation of mortgage professionals.

“Mortgages in the last five years haven’t been as sexy as they were,” Aussie executive director James Symond told Mortgage Business.

“You’re coming out of university, who wants to be a commission-only mortgage broker?” Mr Symond said.

“Until they start working out that the hard work can equal to some great personal and financial success, but at an early age they don’t figure that out,” he says.

“So that is the challenge.”

While Aussie continues to recruit new brokers, Mr Symond admits that the median age is not in the twenties.

One of the fundamental issues driving the problem is that the industry has not invested enough to generate the next stream of people coming through, according to third-part specialist Kathy Cummings.

“I’ve been very vocal about having the right education standards in broking,” Ms Cummings said.

“There is a capability gap and the industry doesn’t have a strong education program, it doesn’t have an apprenticeship model that we can put these people through,” she said.

Bernie Lewis managing director Mark Lewis told said his “biggest problem” is attracting new talent.

It is an issue that the industry has struggled with for years, and while the MFAA have been making noise about it, very little is actually being done, Mr Lewis told Mortgage Business.

“It is one of those difficult things to answer because it has grown up as a commission-based industry; it’s hard to get young people in,” he said.

“The industry itself is not doing a lot to try and change that environment.

“The average age of credit advisers in the MFAA is about 52, which is not a good look.

“What happens when they all retire?”

Despite the lack of new talent, the third-party channel continues to increase its share of the market, with approximately 50 per cent of all home loans now written by a mortgage broker.

 

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