Most lenders will insist on a minimum monthly level of loan settlements. Whilst these are not set at unreasonably high levels, they would be too high for a broker new to the industry.
Therefore, to get started you’ll need to join an Aggregation group. Aggregators are companies who have established relationships with a wide range of lenders. It’s through those relationships that approved brokers are able to introduce loan applications direct to lenders.
It should be noted that just because you join an Aggregator that doesn’t give you automatic access to all lenders on their panel. Most lenders have their own accreditation process which you will have to comply with.
Traditionally, an Aggregator will receive the payment of all commissions and then pass on to the broker the agreed margin. As a guide consider an 80/20 split.
In addition to their lender relationships, many Aggregators will assist you with marketing and other professional development services.
When selecting an Aggregator consider how long they have been around and the services they offer before you commit. Consider also what would happen if you changed Aggregators as some have a policy of only paying trail commissions if you continue to be associated with them.
The Broker Resource can provide you with more information about what Aggregators are available.
Check out Oasis Aggregation Services