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A new generation of mortgage brokers is emerging, and they look different to what came before. The solo broker working from a spare bedroom or the back of a car is becoming rare. That model worked when commissions were strong, competition was light, and many clients had never used a broker before. Those conditions no longer exist.
Today, brokers compete with other brokers, not just banks. The market is crowded, clients are informed, and expectations are higher. To thrive in this environment, brokers need scale, systems, and people. The new generation understands this and is building proper organisations, not lifestyle practices.
These brokers are growing with the mindset of a start-up. They are hiring early, paying well, and building teams that can win business and process deals end to end. If you want to build a valuable brokerage today, this is the direction you need to move.
There is a clear shift in how teams are structured. More businesses are moving away from pure commission models and towards salaried roles with incentives. Business owners want clarity, control, and consistency. And importantly, they want to build a valuable trail book for themselves.
Joe Shephard, founder of Fintalent, a specialist recruiter in mortgage broking, sees this shift every day.
“Older brokers tend to prefer commission models because they think it drives performance,” he told me. “But self-employed isn’t for everyone. Some people would rather work hard, earn $200k to $250k a year, and not worry about trail or running a business.”
When I spoke to Shephard, I asked what up-and-coming brokers are asking him behind closed doors.
“The big question is cost,” he said. “What does it actually cost to hire a broker? The salaried roles I’m seeing are usually around $80k to $90k base (plus super), with a sensible commission structure on top.”
I also asked whether some firms are scaling aggressively.
“Yes,” he replied. “I’ve placed four people into one business this year alone. Three employees and one contractor on retainer. The larger brokerages are always hiring, but many of them run commission-heavy models, so it’s not a direct comparison.”
For smaller operators, the hiring path tends to follow a pattern.
Most solo brokers start with offshore support, either on demand or permanently. If they haven’t, Shephard said that’s usually due to client fit or personal preference.
The first onshore hire is typically a credit analyst or paraplanner. This role takes work off the broker’s plate after the fact-find through to lodgement. It frees up time to focus on clients and referrals.
This hire is often the hardest. Credit analysts are risk-focused and cautious. Small brokerages feel risky to them, so the role often needs to pay $5,000–$10,000 more than market to attract the right person.
The second hire is usually a fork in the road. Do you hire another analyst to improve capacity or bring in someone who can sell?
By the third hire, Shephard said the focus should be on activity. Either a junior broker who can be trained or a senior who can produce quickly. At that point, the business starts to feel like a real organisation.
The challenge is timing. Hiring before the cash flow is there feels uncomfortable. There is often a period where profits dip or go negative. That’s normal. The brokers who grow fastest accept this phase and plan for it.
This is where strategic funding can play a role. Brokers can now access up to 1.5 times their annual trail to invest in people and systems. It allows them to grow while keeping ownership of their business. Once the team is in place, the numbers usually catch up.
The new generation of brokers is not waiting to feel ready. They’re building teams early, backing themselves, and treating their business like a serious enterprise. In a crowded market, that is no longer optional.
Simon Lewis is the founder of Broker Capital.