Contrary to the hustling image the industry has garnered for itself, mortgage broking could thrive as a part-time career, according to Peter Mastroianni, Loans Only managing director and accredited mentor.
Mastroianni (pictured above) said that the Loans Only group consisted of 40 to 50 brokers from “all walks of life”, with a significant number that worked part-time and had achieved “remarkable success”.
“Just looking at what these individuals are doing, it’s worth challenging the notion that broking has to be done on a full-time basis because it doesn’t,” Mastroianni said.
While the mortgage broking industry has grown recently, cracking 19,000 brokers for the first time last year, more than 60% of brokerages are still sole or dual broker ventures, according to the MFAA Industry Intelligence Service Report 15th edition.
With industry awards evaluating settled loan amounts as a measure of success and the general culture around hustling, solo brokers starting their business may have a skewed view of what success looks like.
But Mastroianni said that success for a growing number of brokers didn’t necessarily equate to working long hours and settling $100 million worth of loans.
“More and more people are looking for a comfortable life where they settle $20 million to $30 million and work they hours that suit them,” he said.
“If we actually looked under the under the hood of the industry, we would probably find that a good portion of brokers aren't actually doing broking on a full-time basis nor do people want to do it full time in order to fit in with their own lifestyle requirements or what they hope to achieve out of the business.”
Remaining flexible
With entire sectors forced into working from home structures throughout the pandemic, financial services have generally embraced hybrid work ever since.
However, some major banks have recently begun a push for their staff to return to the office, in a move away from flexible working.
Mastroianni said one of the primary advantages of venturing into mortgage broking as a part-time business was the flexibility it provided. Balancing other commitments such as family, a day job, or personal pursuits can become feasible and you have ultimate control over your time, he said.
“While some work during core business hours is required most of the heavy lifting can be completed during evenings, weekends, or whenever it aligns with your availability,” Mastroianni said.
“This flexibility allows you to cater to clients' needs while maintaining a work-life balance, contributing to long-term success and personal fulfillment. This flexible offering is often what fuels one’s success.”
Attracting a diverse range of brokers
Mastroianni said that the flexibility and the opportunity of part-time work could attract a diverse range of people to the industry with different skill sets.
“People from retail, trades, professional services, you name it. There’s no particular area that I’ve seen these part-time brokers come from,” he said.
“I do find though that people that have sales orientation or have worked in environments where there's long lead times for a conversion and had exposure to numerous systems in that process generally seem to transition well.”
Furthermore, flexible work arrangements could also help reduce the lack of female representation among brokers in the industry.
Despite the number of female brokers increasing a fraction every six months since early 2020, they now represent only 25.4% of the industry – the lowest level since the measure has been tracked by MFAA.
Australian and international research shows that flexible work promotes both women and men's workforce participation, employee satisfaction and productivity.
Mastroianni said that balancing other commitments such as family, a day job, or personal pursuits was feasible if you exercised ultimate control over your time.
“It’s all about reducing the barriers to entry and opening up opportunities for people to enter the industry,” he said.
Finding your niche
While many mortgage brokers had been pushed to diversify, Mastroianni said the key to part-time broking was being able to capitalise on niche opportunities through an existing network or community.
“By specialising in a particular demographic or property type, these brokers have carved out unique positions and cater to the specific needs of their clients. This targeted approach has allowed these part-time brokers to establish themselves as the ‘expert’ in their niche,” Mastroianni said.
He niche communities came in “many shapes and forms” but were often linked to the needs of their specific community whether that be their religious or cultural community or their cricket club.
“After that, their marketing plan is simply servicing their niche, whilst continuing to build associated referral networks,” Mastroianni said.
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