New Business for Mortgage Brokers

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Mortgage broking can be a very lucrative career, as the commissions paid by banks at 0.65% bear almost no resemblance to the actual amount of physical work required for the broker to arrange that mortgage. For any broker the amount of work required for a $100,000 mortgage can be the same as a $1,000,000 mortgage, but the commission will be 10 times more for the latter.

Samantha Matel, mortgage broker

For a well organised broker with good systems and a good administrative team or capability, the total amount of work may involve no more than 2 hours, especially if they deal entirely by telephone and Internet with their client. Hence a $1,000,000 mortgage that generates a commission of $6,500 can produce the equivalent hourly rate of $3,200.

For a favoured broker in a large mortgage broking firm, this can make them very wealthy if they are fed most of the high value clients.

The independent broker will be very unlikely to be picking up $1,000,000 clients regularly, and while they may get the occasional very lucrative payday most of their time will be spent on making sure they have new business coming in through the door. For these mortgage brokers Wanganui the most reliable strategy for new business is to build and maintain extensive networks with real estate agents and builders and developers and banks to make certain that they get a regular supply of referrals and repeat business.

This can be an excellent career for those people that enjoy this type of networking, but it can be hard work and it can result and lean times and a boom and bust experience. For these brokers every new viable client they get is to be worshipped because they may be generating their only income for that week.

The brokers working in the large companies generally don’t have to worry about chasing new business because the company will feed it to them. The large companies are generally heavily invested in promoting their brand and their business, and in 2017 are particularly careful to make sure that the company website is ranking in the top one or two of all Google searches. It is unfair but a fact that 95% of Internet search business goes to companies that pop up on page 1, and 30% of all Internet search business goes to the company that occupies the number one slot. The return on investment for heavily investing in a top website and top SEO is massive if the company ends up in the top three of Google search, as from that point they pretty much do not need to be worrying about winning anymore new business. It will simply be flooding in through the door, and all they have to do pre-screen for dreamers and hopeless cases and then pass the leads on to their mortgage brokers Wairarapa.

First Home Buyers in New Zealand

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New Zealand has some of the most expensive residential property markets in the developed world, and this has been so for well over a decade now. Worst case of this is in the largest city in the country, but the problem was also serious in the other main centres and one or two provincial centres.

Hannah Torinet, professional mortgage broker

The real problem is that house building has not kept up with demand for many years now, and what houses are available for sale are being competed for by cashed-up investors and wealthy homeowners. This has caused the houses in these markets to be simply unaffordable for the vast majority of first home buyers.

The problem has been tinkered with by successive governments and the reserve bank, but the fundamental problem of too much demand for insufficient houses is still very much embedded in New Zealand. The banks and mortgage brokers Waikato have been complicit in this problem in the sense that they have aided the funding of the escalating housing market. If borrowing conditions had been much tighter over the past decade then this would have suppressed the demand somewhat and kept prices lower.

Instead the population has steadily increased, largely due to immigration enabled by compliant government policies, and house prices have continued to rise due to the shortage of houses and the ready availability of finance enabled by banks and mortgage brokers.

For mortgage brokers in Wellington this has been a very good period because as finance becomes tighter and banks requirements become more onerous then more people require a mortgage broker to help them through the minefield of an application. Worryingly the average mortgage now for the first time buyer is probably 3 times what it was 20 years ago, but the average salary in NZ is only about 50% higher, and a whole generation of new home owners are struggling under a massive amount of mortgage debt. This presents a real problem for the new government which intends to build a massive number of new affordable homes over the next 10 years. The very last thing they would want to do is to flood the market and help to drive down property prices, as this would most likely cause a large number of home owners to go into negative equity. This would be catastrophic for them and for the New Zealand economy.

Mortgage brokers in New Zealand

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Around 40% of the customers obtaining mortgages New Zealand use mortgage broker to achieve this. The remaining 60% go directly to their bank for other financier, but the banks are very happy to pay a commission to mortgage brokers Waikato because the brokers perform such a valuable service.

Jamal Smith, professional mortgage broker

The reason why most people use a mortgage broker is because there’s something because process is so difficult to navigate for the average person, and they use a broker also to make absolutely certain they are getting the best deal on the market. Mortgage brokers like Jamal Smith, pictured right, almost all come from within the banking industry, and they have excellent and deep experience with how the banks operate and what their requirements are, and using this experience the brokers are in a position to prevent their clients do the banks in the best possible light.

The brokers often solve a number of problems for the banks particularly around pre screening many applicants for a mortgage, and providing professional advice to the customer on what mortgages and payments are appropriate for their particular situation. The brokers are prepared to put quite a lot of work into each customer because they are well rewarded especially in this current period of expensive houses and high mortgages. Brokers generally turn around 0.65% commission from the banks once the loan has been advanced, which floor a $200,000 mortgage translates into $1,300 for a few hours work. Most brokers will have a set of quality systems and processes which means that the actual effort they personally need to do will be minimised once they have concluded discussions with the customer.

Mortgage brokers Westland who work for a large firms more generally have a steady supply of leads coming in the door, and while this means a steady workflow and a steady income they will also be required to make high payments to the broking companies franchise owner. The work can also be somewhat repetitive, especially as the large broken firms tend to filter out any potential clients that look a bit difficult.

Independent mortgage brokers have a somewhat different situation in that they will most certainly will not have leads streaming in through the door, and instead will have to devote a large proportion of their time to find a new business. Fortunately the commission structure for the industry is generous which means that the brokers do not need to be working right of mortgages for every hour every day, and in reality they could spend 20% of their time writing mortgages and still have a very high incme.

Feilding Electrical Work

Fortunately for the average homeowner, commercial property owner and farmer and Fielding there is a good array of electricians to choose from when electrical work is required. The easiest way for anyone to find the most appropriate electrician for their work is to use the Google search term electrician Feilding.

Fixing the wiring in a smoke alarm

The local electricians can carry out any work including pre-wiring a new home, replacing the wiring or switch points on an existing home, maintenance and upgrade to the electrical wiring in commercial premises and anything to do with the heavy machinery that is found in many commercial operators and on farms.

In some cases the work may require specialist skills, particularly when are high voltages our present, and the electrician for the job will need to be able to demonstrate that they have passed and skills examinations and have the requisite experience to be able to carry out the work safely. Often in these cases the specialist skills are not available locally and the business owner or farmer will need to approach somebody in a much larger Centre where this type of work is much less uncommon.

However as far as farm machinery is concerned, there are definitely specialist electricians in Feilding that will be able to virtually all the work necessary, simply because Feilding was surrounded by so many farms.

In most cases the electrical work required is of a general nature, and the electrical company that is doing the work may be able to put their apprentice onto the job. Such work will include running new cables into an exposed frame building, or connecting up simple light switches or light fittings once the cladding is complete and the plastering and painting. The fully qualified and experienced and certified electrician will be required to do all the final work and to check and sign off the quality of the work if the apprentice did, but even in this situation the apprentice could carry out most of the work.

Work for residential properties can be somewhat frustrating for the average skilled electrician, as it can involve such trivial items as replacing electric light bulb or a blown fuse, but the work is generally well paid and for this reason is almost always tolerated by the electrician.

Electricians working in the commercial sector the work can be extremely varied, as they could find themselves working in the same day on air conditioning system, a commercial electrical switchboard, commercial electrical machines including pumps and even robots, then on new building sites for new commercial premises. This work is generally the most interesting of all the various types of electrician work, or they’ll that can cause difficulties during outage emergencies worthy electrician may actually have to leave their young family at home in the evening to come out and see what the problem is.

Technology Transformation Over The Next Three Years

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The pace of change of Technology in 2017 is breathtaking. It is difficult to accept that it was only 10 years ago that the iPhone was first introduced, and it was laughed at  by competitors at the time, and yet today the iPhone or it’s equivalent is a vital position of most of the citizens on the planet. Indeed, Tesla has launched a new vehicle there opens I simply detecting that you are close to it with your phone, and the assumption is that everybody who owns one of these vehicles will also have a smartphone.

It is hard to believe, but the pace of technological change is even faster in 2017, driven by the incessant improvement of computer chips which double and power and have an price every two years, and driven by the enormous productivity increase in software development and artificial intelligence, and accelerated further by the networking effect of a fully interconnected planet.

For example it is a safe assumption get any child born in the past 3 years or never get a driver’s licence, because they will never need to be able to drive a car. The reason for this is that autonomous driving technology who is developing so rapidly that it will be introduced and some markets within the next two years, and  will have spread around the world in a tidal wave within the next 10 years. In 10 years time  driverless cars will have proved to be 10 times safer then cars driven by a human, simply because it is a scientific fact that around 92% of all  vehicle accidents are caused by the driver. At this point in 10 years time the insurance industry well have been drastically disrupted to reflect  the massively lower accident rate, and it will be simply too expensive for a young person to get a driver’s licence and drive their own vehicle simply because they will not be able to afford the insurance.

The corollary of this is that any child born in the last 3 years will be able to travel anywhere locally in  an autonomous taxi at a fraction of the cost of buying a taxi ride today or of owning their own vehicle, or even at a fraction of a cost of borrowing their parents vehicle for the truck. The almost Global adoption of the smartphone over 10 years will look like a minor change compared to the change in transport over the next 10 years.

One major impact of this transformation to transport as a service will be the very large cost savings for everybody who need to travel, and the subsequent increase and spending power and efficiency for everybody. Exciting times are ahead.