Brokers have the opportunity to help fulfil a household true financial potential

Posted by Dec17, 2012 Comments Comments Off on Brokers have the opportunity to help fulfil a household true financial potential
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I would like to thank Ben Kingsley (an Ambassador of The Mortgage Broker Revolution) for being the first Ambassador to contribute to this blog. I invite other subscribers to send me their articles, opinion pieces, views for publication to keep the revolution alive…

There is a silent struggle going on between Financial Planners, Accountants  and Mortgage Brokers to win the trust and respect of households to help them manage their money and to fulfil their financial destiny.

It’s clearly evident that many households struggle to manage their finances to meet their basic needs, let alone manage their finances to a point that will see their money being used more efficiently to repay debt or build wealth.  Furthermore, statistics show that less than 40% actually seek out the services of a financial planner to assist them in these matters.  One could argue that accountants would also see around the same number seeking guidance and advice around how to better manage their money.

In line with Mortgage Broking Revolution, there are two very favourable reasons why Mortgage Brokers could in fact hold the key to advice for households and their money matters

  1.  The introduction of the National Consumer Credit Code has seen regulation introduced into the space of credit advice and this now allows licensed Mortgage Brokers the ability to provide finance advice not just on mortgages, but also on transactional banking accounts such as offset and line of credit options as well as credit cards.  All these types of products are in almost every household in the country.  So this regulation now limits financial planners and accountants from offering personal advice relating to such forms of credit.


  1. Currently there is no clear professional advisor who consumers believe to be the placed professional to seek money management advice in helping them improve their financial affairs.  It’s obvious that accountants are whom you seek advice on for taxation matters and it’s also obvious that you seek the services of a financial planner for any licensed investment product advice on matters such as share investing, super or managed funds etc.

But when you think about it, the first major decision around managing one’s money better usually starts off with saving a deposit for a house and being in a position to afford the repayments, which is the perfect realm of the Mortgage Broker.

If the Mortgage broker is smart they should realise they have the potential to be the very first trusted advisor a person or household will seek out to take advice on money.  The Mortgage broker who recognises and adapts their business to meet the needs of the market is sure to be in a very influential position in helping that household today and well into their future.  Additionally, if they truly win over the trust and minds of these clients, they will also be called on to help these households find good accountants and financial planners and other professional advisors.

A mortgage broker who thinks strategically rather than simply transactionally and who focuses on helping a household better manage their money and not just their mortgage will become the true ‘finance advisor’ Australian households are desperate to work with and they will be our industry leaders of tomorrow.

by Ben Kingsley CEO & founder of Empower Wealth

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The number one thing you must be doing as a mortgage broker

Posted by Dec07, 2012 Comments Comments Off on The number one thing you must be doing as a mortgage broker
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In the past, clients would come to advisors for information and advice. However, today, information is available in abundance – mostly via the internet. Advice is being commoditised too. So what is your main role as an advisor if it’s not to provide information and advice?

Allegedly, Leonardo Da Vinci said that “simplicity is the ultimate sophistication”. I think it’s a perfect reminder for how to deal with clients. I believe a successful advisor makes seemingly complex situations/decisions as simple as possible. Simplicity aids understandability and clarity and that gives clients’ confidence (in you and their decisions). Simplicity can be achieved by saying what you need to say in 1 sentence rather than 5, by making clear and confident recommendations, by offering one solution rather than comparing two or three and asking them to choose, use stories and case studies to explain concepts and so on. Sometimes how you communicate is more important than what you communicate.

Complexity is easy because you don’t have to decide which information is important – just bury the client in information and let them decide. Complex problems don’t always require complex solutions. In fact, simple solutions are often the most effective. But achieving simplicity is nearly always challenging.

So remember to ask yourself “can I make this simpler” every time you communicate to a client. Less is often more.

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I am going to select no more than 10 brokers only and personally coach them over the next 12 months. I will work with them until they achieve the results they set for themselves. More details below but first, why am I doing this?

Firstly, my mission is to inspire brokers to take their business to the next level and I’m doing many things to chip away at that mission (including this, blogs, speaker, online courses, etc.). Secondly, I love working with motivated people and I enjoy seeing the immediate results coaching brings – gives me a buzz (which writing blogs and speaking lacks to some degree). Lastly, working closely with people will give me more ideas about what this industry needs education wise. Having been a loan writer myself (settling more than $100 million p.a.), coached my staff for many years and constantly investing in self-education I know that I have the knowledge and experience to help brokers take their business (profit) to the next level. I also know that coaching works – its done wonders for me. I’ll personally guarantee you’ll achieve awesome results.

Details about coaching

  • I will select no more than 10 brokers only – this is more of a personal challenge rather than a business opportunity
  • We will schedule a 1 hour coaching session each week (Skype, phone or in person)
  • We will develop a personalised 12 month program based on your goals and current situation/challenges
  • You’ll have access to all tools and information that I have developed over the past decade (courses, webinars, etc.) – anything that helps you achieve your goals
  • The cost of the coaching program includes the one hour per week of coaching, 30-60 minutes of preparation, email support and all my intellectual property (ideas and tools)
  • The cost of the weekly coaching is $2,000 + GST per month. There’s an option for fortnightly coaching at $1,000 + GST per month depending on your requirements. I will offer a small loyalty discount off these rates for anyone that has already paid for my Broker Success Systems course
  • I will be selective with who I work with as I don’t want to waste anyone’s time – including mine.

So how can you be one of the 5 brokers?

Click here to download the short application form, complete it and email it to me.

The first step is an alignment session. The focus of this session is to help you get clarity of your goals, where your business is at, what you need to work on as a priority and your personal “why”. Essentially, the key outcome of this session is a very detailed 12 month plan. In addition, we’ll get to know each-other and work out if we are a good fit. If so, I’ll invite you onto the 12 month coaching program (and it will be your decision to accept or not). The alignment session costs $750 + GST and takes 2 to 3 hours.

If you have any questions, email me at


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When we market to prospects we often talk about interest rates and interest rate discounts – comparing rates to other banks, variable versus fixed, compared to the standard variable and so on. The problem with this is that interest rates don’t mean much to people and there’s research to back it up.

In his Ted talk, behavioural economist Dan Ariely talks about how we measure the attractiveness of certain options (click here to watch the presentation and if you are short of time, fast forward to 12 minutes and watch for about 3 minutes). Dan suggests that humans aren’t good at making decisions and selecting which ‘option’ (or choice) is best for them. Often, they are so confused that they select the easiest path (in our industry that’s the decision not to refinance or switch banks). His research further demonstrates that providing a client with 3 options (including one that is clearly inferior), helps people make a decision. Let me explain by example. Let’s assume our client (Jane) has a home loan with NAB for $300,000 at an interest rate of 6% variable – so interest only repayments are $1,500 per month. We want to suggest that Jane should consider refinancing to Westpac and fixing her interest rate. We could present two options: 1. refinance to Westpac at 100% variable at a rate of 5.95% (repayments = $1,488 p/mth) 2. refinance and fix at an interest rate of 5.50% (repayments $1,375 p/mth – saving $125 p/mth). Dan’s research suggests that including the first option will help more people select the second option.

I’m not suggesting that you purposely set out to manipulate people into refinancing – not at all. Instead, all I’m suggesting is be careful with how you communicate the benefits of one product compared to the next. For example, comparing repayments (in dollar terms) will typically be far more powerful than quoting rates. People think in dollar terms, not percentages. Secondly, recognise that it’s difficult for people to make decisions. Therefore, you either have to only provide one option (recommendation) or ensure that you are providing enough information to make comparisons but not too much information that will result in confusing the client.

Do you have any experiences with helping clients made decisions that you can share? Comment below.

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Will broker market share reach 70%?

Posted by Nov01, 2012 Comments (2)
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The CEO of LoanKit expects the mortgage broker market share to go over 70% – interesting comments and I agree – click here to read. But its up to us… we all need to aim high.


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