Greg Samuel transitioned from commercial banking to mortgage broking in 2012, founding Samuel Finance and thriving despite challenges, driven by industry growth and his emphasis on collaboration and early career entry for new brokers.
Samuel transitioned from commercial banking to mortgage broking in 2012.
“The opportunity came up to take a redundancy from the ANZ which was the trigger for me to make the move,” he says.
He started his business independently, though he now reflects that partnering with an established broker might have made the transition smoother.
Samuel highlights the expansion and growth of the commercial broking industry as a significant positive change.
“There has been a lot of talent [moving] from the banking industry to broking. It has really improved the quality and professionalism of the commercial broking industry,” he says, adding that brokers now handle up to 70% of new commercial loans.
The industry faces several challenges, including remuneration constraints from the fallout of the royal commission.
Samuel criticises the "net of offset" commission reduction, calling it “incredibly unfair on brokers.”
He also expresses concern about potential payroll taxes for brokers, advocating for greater separation between broker businesses and aggregators.
Starting Samuel Finance from scratch was a challenging but rewarding experience for Samuel.
He advises aspiring brokers to partner with other respected brokers rather than going solo.
“The broker industry is evolving from the ‘one-man band’ business model to multi-broker businesses,” Samuel says, emphasising the benefits of collaboration for both performance and mental health.
Samuel encourages new brokers to complete their mortgage broking diploma and work within established broker businesses.
“Avoid roles that start you on a 100% commission model as this will be an uphill battle,” he says.
He also suggests starting early in one’s career to reap long-term financial benefits.
Reflecting on bankers who want to switch to broking, he observes, “They are essentially ‘salary prisoners’ as their life circumstances don’t allow them to leave a cushy salary for the riskier, performance-based broking career.”
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