Mortgage Broking as a Career

Mortgage broking has to be a very tempting career for people experienced in the banking sector, given the generous commissions paid by the banks at 0.65%. An experienced bank employee on a $100,000 salary would need to write only $15,000,000 of mortgages per year or about $1.25 million of mortgages per month in order to match that salary.

Emily Bryant, Invercargill mortgage broker
Emily Bryant, Invercargill mortgage broker

The bank employee may have been writing $5,000,000 worth of mortgages per month for their bank, and they would back themselves to be able to generate at least a quarter of this business if they were out in private practice. They may have a number of loyal clients who prefer to deal with them whenever they deal with the bank, and they may have a very good reputation in the industry that gives them a lot of confidence as they head out into the business world,

The reality however can come as a bit of a shock, as the industry is very competitive with a small handful of very dominant large companies that win the largest share of all new business. New mortgage brokers discover to their cost that most of their working day and week is spent seeking new clients, which they may find enjoyable if they enjoy networking because this is what this business is about. They will need to build up very strong networks of real estate agents, property developers, banks and financiers, and they will also need to promote their business at home shows and auctions etc.

The second dose of reality that will be painful is discovering that only around 30% of all their efforts will proved fruitful in terms of earning them a commission, and that around 70% of their new clients will be unsuccessful or change their mind or walk away from any deal. Except for certain niches there is no reliable prediction whether a client is going to uplift the mortgage once it has been pre-approved, or whether the application is going to fail once the broker starts digging deeper into their client’s financial affairs. NZ Mortgage Brokers need to have a high level of self belief as they carry out their work in as professional a manner as possible.

The biggest problem for a new mortgage broker is discovering how difficult it is to tap into the vast amount of new business that arrives via Google search on the Internet. They will almost certainly spend a few thousand dollars on a high quality website that presents them and their new business in the best possible light, but if their website gets virtually no search traffic then it is virtually no better than a very expensive business card. The reality is that new business generated by Internet search is overwhelmingly dominated by the small number of large companies that are ranking #1, #2 or #3 for the most common search terms.


Choosing a Good Mortgage Broker

If you are a potential first home buyer or an existing home owner looking to upgrade to a new house, then the chances are quite high that you will decide that you need a mortgage broker to help you through the process. Well the main Banks can arrange mortgages on their own, many if not most applicants wonder if they are indeed getting the best deal, and if they need assistance to help them with the decisions and paperwork.

Harriet Stevenson, independent mortgage broker

Mortgage brokers are independent from any bank or financial, and are bound by regulation in terms of dispute resolution and the quality and independence of their advice, and because they charge no fee to their clients and are instead paid by commission from the banks then they are a very attractive option for many home buyers. One big advantage for home buyers is that a mortgage broker does not get paid themselves until the mortgage has been advanced to the client, and so the brokers are very motivated to make certain that their client is successful.

This has always been the case, and before 2010 many brokers would exaggerate their clients financial situation in order to win the deal with the banks, but subsequent regulation has largely put a stop to this practice. The challenge now for most borrowers is deciding on the best mortgage brokers Kapiti has available for them, while feeling reasonably secure that the brokers will not rip them off or offer them bad advice. There is quite a variety of brokers to choose from, and perhaps the biggest upfront decision is whether to go with a large broking company or whether to go with a much smaller independent mortgage broker.

A large mortgage broking company may provide the comfort of a well known brand and a very good placing in Google searches, but the borrower needs to be aware that this company is probably getting far more leads that it needs to deal with, and may not offer the best service if there is any problem or difficulty at all. Conversely the smaller independent mortgage brokers in Marlborough generally provide much better service and can handle a larger suite of problems, simply because their business depends on it. They have chosen to be independent because of the wider variety of work.

The large companies that are very high in Google search tend to discard any potential new customer if there is any sort of problem, whereas the smaller independent mortgage broker will go out of their way to solve the problem as best they can. The larger companies are generally focused on production while the smaller countries are focused on providing great service because that is what their business reputation depends on.


Opportunities for Mortgage Brokers

The mortgage broking industry is dominated by a handful of large companies who have made the very significant and strategic investments necessary to ensure that they win the lions share of all new business generated from the Internet. The traditional marketing approach of brand value has been expensive but very important, but in 2017 it is much more important for mortgage broking companies to be winning the Internet search war.

Annie Stevenson, professional independent mortgage broker

There has been a massive trend over the last few years particularly amongst younger people to use and depend on Internet search as the way to find the best products and services. Unfortunately for everybody else virtually all new business will go to the companies that manage to get themselves into the top 2 or 3 results for major Internet searches. Those companies that have made a large investment in web development and SEO but don’t manage to get themselves into the top 3 will find their investment is largely wasted. For the small handful of large companies that dominate the top three slots their business model is simply making certain they can cope with the massive amount of new customers that “flock in through the door”. They do not even need to deliver excellent service, as reputation is almost irrelevant if they consistently rank in the top 3.

An interesting opportunity exists for specialist SEO companies to nibble away at this new business traffic stream. All an expert SEO company needs to do is to have a reasonably presentable website that is optimised for conversion, and then to apply their SEO expertise and horsepower to rank their website in the top 3 in major Google search terms. When their website is properly optimised for conversion then they should be able to entice around 10% of all visitors to fill out the form on the webpage and become a genuine lead. The company can use a smart cloud-based lead assignment tool available from the web to pass any leads in real-time to the best mortgage brokers found in Upper Hutt as a text message.

Provided the SEO company has configured their web page correctly to eliminate “dreamers” and to get the necessary information from a customer, then the leads produced can have a high degree of likelihood of success for the mortgage broker, and will be very valuable. It will take some months for the SEO ranking to kick in, but eventually leads will start popping out of the system sporadically, and this period can be used to tweet and optimise the website and to gain some hard statistics around the success rate for mortgage business. The ideal way to do this is to have one client such as a good mortgage broker from Wellington who will take all the leads for free but will also put real effort into the leads. Over a period such as one month both the SEO company and the client broker will develop a clear understanding of the success rate of the leads and therefore what the likely value to the broker.

Because the mortgage broking business delivers a very high payback in the way of commission for the typical mortgage, the actual return on investment and time for the mortgage broker is outrageously high. The broker will be aware that this is brand new business that will likely grow, and that they can easily scale to meet the demand at very little cost. Done correctly this should result in a partnership between the SEO company and the broker that is extremely lucrative for both companies.


Mortgage Brokers for First Home Buyers

First home buyers in New Zealand have it particularly difficult, because house price rises have been some of the largest in the developed world. First home buyers are having to pay ridiculously high sums of money for ordinary houses and also having to borrow ridiculously high sums of money. That’s why its so important to have a broker find a good deal for you on your mortgage.

Rick Lam, independent mortgage broker

The previous national government has tried to ease the pain for first home buyers by insuring that some first home buyers can get a mortgage with a 10% deposit, provided they qualify for income limits, have a good provable income and have a good credit history. Residential buyers who have previously owned a house need to find a 20% deposit, and investors need to have a 40% deposit.

Existing owners have the benefit of selling their existing house in order to fund their new house including the deposit. Investors if they have been smart will have accumulated working capital that will give them sufficient deposit money for future purchases. First home buyers on the other hand absolutely had to save up the deposit, and if the buyer’s are not or a high salary then this can be very difficult simply because cost of living expenses eat away at the end come. They can of course cash in some or all of their KiwiSaver funds, and this was in fact one intention of the KiwiSaver program.

Foremost Homebuyers the smartest strategy is to choose a good mortgage broker. Mortgage brokers Porirua provide their services to buyers for free, as they are paid a very healthy commercial by the bank when the line was activated. Given today’s house prices and loans, the 0.65% commission paid to Mortgage Brokers can seem exceedingly generous when compared against the 2 to 3 hours work required to provide the service to the customer. A half million dollar mortgage for example will learn the broker $3,250, which is not bad for a few hours work, but the payment does reflect that there can be long gaps between new clients, and out a lot overtime for an independent broker is simply spend looking for new business.

Good mortgage brokers for the first time buyer will provide more than simply getting the paperwork correct and getting a loan advanced to the customer. For many first home buyers they will need assistance and advice and how to qualify for a loan or how to qualify for a better life, and the mortgage broker may need to counsel and coach them, particularly if they need to take intermediate steps in order to ensure that they are properly presented to the banks. Good mortgage brokers Kapiti are happy to provide this type of counselling and coaching service, because in the end of it helps their client to win a mortgage you could also make certain that the mortgage broker gets paid as well.


Finding an Electrician in Masterton

Masterton is not a large town, but it is the dominant town in the Wairarapa, and it is where most of the tradesmen in the region are found. Masterton suffers from a general shortage of qualified tradespeople, in common with most areas of New Zealand, and this certainly is the case for electricians.

The problem is that there has been a mini building boom in the region for a few years now, but the industry has not kept pace with the supply of new apprentices. For all that the residential home owner can find a suitable electrician by doing a Google search for electrician Masterton, and they will be confronted with a reasonably long list of qualified electricians that they can choose from.

The problem they will have is that most electricians will be busy, and so the work will have to be squeezed in between the other jobs, and the price for the work will probably be more than me homeowner expected simply because the electrician can charge a higher price and get away with it. Most homeowners but not at all confident dealing with anything electrical in the house, even though they are legally allowed to replace light switches and power switches and lighting points and install minor wiring, and electricians know and understand that’s very well and they know that they are an essential service for these householders.

There is also a large group of work that can only be performed by a qualified and registered electrician, and this is often around the installation of new wiring and electrical connections in a new premises, and very definitely around wiring and connections and commercial premises and factories. This commercial work is very definitely the bread and butter for electricians, as the business that is purchasing their service is losing money while I needed electrical service is unavailable, and so they are prepared to pay a high price for prompt and efficient and professional solution.

The poor home owners with their relatively small jobs are very definitely a second priority for most electricians who also do work in the commercial sector, simply because the electrician will have tight deadlines to meet with the commercial work and therefore will treat this with a far higher priority and they will treat any residential work. This is definitely the case and Masterton and in the Wairarapa, and across most of New Zealand communities.


Plumbing As A Career: The Unthanked Heroes

Of all the trades in New Zealand it is plumbing that has the biggest rap, as is it  seen by most people as a filthy and very tough job that no one in their right mind would want to do. Ironically this very attitude has a very positive impact on the plumbing industry, as virtually no householder wants to tackle their own leaking  or blocked sewer pipe. By it’s very nature any sewage problem is pretty urgent, and so the householder is prepared to pay top dollar to have a problem removed quickly, efficiently and safely.

Plumbers in Tauranga who are happy to take on urgent work can find this very lucrative indeed, but often the householder while being happy to pay for the work still cannot understand why the plumber is prepared to do it. The work almost always involves dealing directly with raw sewage.

The modern plumber with a good reputation in the industry will actually enjoy their work enormously, and not just because of the money they can earn. Plumbing is one of the ultimate protections for human health in any community, and they know this s only too well. They see themselves as a key protector of the community, and regard their specialised knowledge and skills with a great deal of pride and professionalism. Anybody who is interested in how a particular profession works will almost certainly be very impressed when they talk to one, because it will quickly become apparent that their skill sets and experience and knowledge has taken them a long time and a lot of effort to acquire.

Fortunately while plumbers are not publicly hailed as heroes, in private any householder or their neighbour or friend who has engaged with one will in almost every case be happy to praise their work ethic and professionalism.

The plumber who runs a fully mobile emergency repair shop will be equipped for virtually every eventuality, but in the average urban setting the most likely problems will be to do with the old earthenware sewer pipes becoming blocked with tree roots etc. In almost every case he will be able to remove this blockage by feeding a long rotating drill bit down the sewer pipe and cutting away all of the roots and other matter flush with the inside of the pipe.

They may also run a remote camera through the pipe to check whether there is any damage that is just going to cause a reoccurrence of the blockage, and in rare cases they will find damage that is severe enough that warrants the pipe or at least a section of it to be dug up and replaced. In these situations he becomes a true hero,  because the digging is just simply hard work and almost always needs to be done manually, and the replacing of the old server with a new pipe is just very dirty work.

The plumber can enlist the help of the householder and their friends to help dig the trench and then to backfill it afterwards, and this will save a lot of time. Once the work is completed the plumber will head back to their workshop and have a well earned hot shower and then change into clean clothing so they can go home. They can retire at the end of the day knowing that they have  made a very unsafe situation safety again.


Building a deck in New Zealand

Decks are very popular 4 New Zealand households, as they provide additional dry and Safe Living Space plus they can also cover up unsightly and otherwise useless ground. A council permit is generally needed if any part of the deck is over 1 metre off the ground, but for every other deck the homeowner can basically build whatever they like.

There is obviously good practice, and the large building hardware have good information on this. The most common deck by an order of magnitude is the standard wooden deck, using posts, bearers, joists and decking. Wooden decks are not cheap, but they are also not nearly as expensive as the other alternatives, and timber is also much easier to deal with for the average handyman home owner.

The location and layout of the deck will initially be dictated by need, but most probably will finally be determined by cost or practicality. There is no point in building a deck or a part of the deck in a location that is difficult to work in or creates engineering or cost problems.

What’s the location and design of the deck has been finalised, then the location of the posts and bearers needs to be marked out. The choice of timber and the spacings are all clearly spelled out in the guidelines available at any major hardware store.

The next step is to establish a string line that accurately sets out the location and height on the posts. The post holes need to be dug to the correct width and depth and at this point the easiest and quickest approach for the posts is to cut the posts at a length that will leave them 100 mm or so above the foot of the hole. The posts can even be temporarily attached to the underside of a dead straight 4 by 2 rail, and then all set in their various holes at the correct height before the concrete is poured.


Once the concrete is set and the temporary rail has been removed then the 50 x 150mm bearers can be firmly attached to the posts. Screwed galvanised nails or even galvanized bolts are the most common attachment method. Once the builders have been installed window 50 x 150 mm joists can also be installed on the bearers incorrect spacings. Once all the joists have been firmly attached to the bearers then the decking can be installed. The choice of decking dictates the final appearance of the deck, but it is not necessary to spend a lot of money one expensive overseas timber, is pine decking that has been properly selected can have a very attractive appearance and long-term finish. The best long-term attachment method who’s to drill the deck and use stainless steel screws, as these can easily be removed and the decking lifted if there is any need to do so in the future.