5 Common Mistakes & How to Build a Bulletproof Brokerage in Australia
A Golden Age
In an unprecedented shift, brokers are the primary channel for Australian home loans, settling a record-breaking $99.37 billion in a single quarter. But with over 22,000 brokers competing, success requires more than just writing loans.
Mistake #1
Under the Best Interests Duty (BID), your notes are your legal shield. Incomplete records create massive inefficiencies and expose you to business-ending penalties of up to $1.57 million.
The Solution: Your CRM must become a compliance engine, documenting the 'why' behind every recommendation.
Document needs, objectives, and financial situation in their own words.
Record all lenders considered and the rationale for your shortlist.
Provide evidence-based justification for why the chosen product is in their best interest.
Mistake #2
Relying solely on referrals is a fragile strategy. If a key partner leaves, your pipeline can vanish overnight. A diversified approach is essential for a resilient business.
The relationship begins.
Post-settlement check-in call.
Proactive annual review & repricing request.
Value-add content & trigger-based outreach.
Mistake #3
The silence after settlement is a vulnerability gap where competitors poach your clients. This costs 5x more than retention and sacrifices years of trail income.
The Solution: Implement a structured, automated communication strategy to stay top-of-mind and prove your ongoing value.
Mistake #4
Loan conversion rates have fallen, with nearly 1 in 4 applications failing. Many rejections are predictable and point to a surface-level understanding of ever-changing lender credit policies.
Mistake #5
In the post-Royal Commission era, viewing compliance as a tick-box exercise is a path to failure. The solution is a fundamental mindset shift.
Views compliance as a bureaucratic burden, leading to regulatory risk and reputational damage.
Embraces compliance as a trust-building tool and a powerful competitive advantage.