Consider salaries for new brokers, banker suggests

by Adam Smith26 Mar 2013

Higher barriers to entry mean that the industry must think of new ways to attract talent, an industry leader has said.

Citibank head of mortgages Vibha Coburn has told Australian Broker the mortgage broking industry must consider salaries or revenue sharing to draw new talent, to help new brokers make ends meet while they build their book.
“I know some people are putting new entrants on a salary. They’re saying, ‘Come in and we’ll put you on a salary and come to some agreement later’, so what you earn in the first two years is maybe paid back with some kind of revenue sharing,” Coburn said.
Coburn said the growing professionalism of the industry should be drawing talented individuals. But, Coburn suggested, for students leaving university, perhaps with a finance or business degree, mortgage broking can be a tough sell.
“You spend three years, you’re paying HECS fees and for the first year you don’t earn anything.”
In the past, Coburn said, many people found their way into the industry from careers in banking.
“People just fell into it. They did banking for 20, maybe 25 years, and then they went into mortgage broking. That was the genesis of it,” Coburn said. “I think if you sat most brokers down and said, ‘When you started out, is this where you thought you’d be in 10 years?’ most would say that it just happened.”
But it’s not enough anymore, Coburn suggested, to expect people to “fall into” mortgage broking, or for career progression to “just happen”. With barriers to entry higher than ever falling licensing and heightened education requirements, Coburn said the industry needs to find new ways to lure talent.
“That’s the challenge, is how do we build it up and make it into an industry that people don’t just fall into, but want to be a part of?”
To read the full interview with Vibha Coburn, check out Australian Broker 10.5.


  • by SIDBROKER 26/03/2013 12:19:56 PM

    and who is going to share their hard earned trail to subsidise new people. Shortly afterwoods they go off in a differant direction.

  • by Broker 26/03/2013 1:26:18 PM

    Reality check required here, all a tad difficult on current commission levels for the vast majority of Brokers I would think.

  • by Bruce Solomom 26/03/2013 3:40:16 PM

    As a homeloan could reap in interest-revenue an amount equal to the original loan amount for a lender, and the NCCP risks are now substantial, the following remuneration needs to be paid to brokers by lenders/agregators:
    - existing experienced brokers should receive $100K base + upfront & trail commissions.
    - New brokers should receive $50k base + upfront & trail commissions.

    (Note that Real estate agents get up to 3% commission per sale! And there are many other industries where the frontline sales people earn loads more than brokers, for equal or less than the same amount of effort/skills.) )