4 commission models that could improve your mortgage broker business
Commercial mortgage brokers earn their keep via a system of commissions tied to the number and size of the loans they settle. Commissions come in two kinds: upfront, which are paid when the mortgage is approved and trail, which are paid monthly for the life of the loan.
When you join Red Rock, you'll have the choice of working from four different mortgage broker business commission models. Depending on the stage you're at in your career, different models come with different potentials for earning - some are better suited to brokers just starting out, whereas others will benefit from models tailored to their more established and experienced positions.
Here are the four commission models Red Rock offers to their brokers.
This is one of our most popular packages. It's great for those commercial mortgage brokers early in their careers and wanting a package that offers no minimum monthly volume, high commission rates and a simple monthly fee. It also includes basic mentoring and access to our Symmetry software as standard.
New entrant model
Our new entrant model is perfect for brokers stepping into the industry for the very first time. When you're first getting into selling loans and learning to build your business, it's helpful to have lower monthly fees so you don't have to pay as much up front. Best of all, this package comes with the ability to increase the percentage you earn from commissions as your loan volumes increase.
Fixed monthly model
This model is perfect for brokers that want a no nonsense plan that pays them 100 per cent commission. It's best suited to those who already have an existing client base and established business, and simply want access to the lender panel Red Rock can offer. With no minimum volumes and a flat fee, this is as close as you can get to working directly with the mortgage lender themselves.
Our transactional model is a genuine 'pay per use' system. Brokers pay a fee for each loan the settle and receive 100 per cent of the commission. Flexibility is the benefit that this model offers, and is best suited for experienced brokers that have dealt with a number of borrowers over an extended period.
For more information about becoming a commercial mortgage broker with Red Rock, request a free information pack today.