Let’s Talk Money

Read the story

When I applied for this job, I had literally no idea how mortgage brokers get paid.

Honestly, I didn’t even care.

I just wanted a job that I’d enjoy, so I didn’t ask about the money.

How brokers get paid

Later I discovered that brokers who are self-employed (like me) earn commission.

Here’s the kicker:

• I don’t charge for consultations or pre-approvals. For standard residential lending, I generally don’t charge a broker fee either. If a fee may apply, I explain it before you proceed. The lender usually pays me commission when your loan settles, and may also pay an ongoing commission while the loan remains in place. Commissions can vary between lenders. I provide information about the commissions I may receive, and my recommendations must put your interests first.

When comparing options, I consider sharp rates, flexible policies, cashback offers, service, facilities, lender quirks and sometimes even personal preference of the client, because let’s face it, not everyone wants to deal with every bank.

The Dreaded Word: Clawback

There’s a word I had never heard before stepping into this industry, and it haunts every broker.

Clawback.

Clawback means a lender takes back some or all of a broker’s upfront commission. This can happen if a loan is repaid or refinanced early. Whether it applies, how much is reclaimed and the time limit depend on the lender’s rules. So yes, I can finish the work, get paid and later have to return some of that commission. But whether I might lose commission should not influence your decision. Selling, refinancing or paying off your loan should be about your own needs and circumstances.

If they leave me for another broker, well… that’s on me. Maybe I didn’t do a good enough job.

Sometimes life just happens—people sell, move or circumstances change. Making them feel guilty about having to sell is just not something I want them to feel. You can’t win them all.

So… Is It Worth It?

Absolutely. The money can be great. The better you are, the better you’ll do in this industry.

I was lucky—from week one I was smashing it and suddenly, I could have nice things and spoil myself. Sometimes I catch my husband looking at me with dollar signs in his eyes.

The beauty of this career is that the sky’s the limit. You can coast along and do okay, or you can work harder and earn more. It’s flexible, it’s rewarding and it’s addictive.

And then there’s the freedom

I get to work for the best boss in the world: me. Okay, well… maybe not the best as I can be pretty harsh on myself, but at least I can work from my office, from Japan or from bed.

Some of my best loans have been written with Otis snuggled up next to me and music playing in the background.

The Bottom Line

I love my job. The money is nice, but the freedom and the people are better.

It’s a career where you can build, grow and create your own version of success and for me, that’s priceless.