Broker in Focus: Brett Sutton, Two Red Shoes Mortgage Brokers

After spending over a decade in residential real estate, Brett Sutton (pictured above) of Two Red Shoes Mortgage Brokers made a strategic career shift into mortgage broking, where he quickly made his mark. Now, more than three years into his journey as a broker, Sutton has navigated the highs and lows, gaining valuable insights along the way.

Getting into mortgage broking 

For Sutton, the path to becoming a mortgage broker was less about a sudden epiphany and more a natural evolution of his career in real estate. After spending years in residential real estate sales and managing a bustling sales team in Western Sydney, Sutton was ready for a new challenge. But rather than stepping away from the property market altogether, he found himself drawn to a role that allowed him to leverage his deep industry knowledge in a different capacity.

“I started discussing my desire for a new direction with a broker who was one of my key referral partners and a good friend,” Sutton said. “They suggested that broking could be a great fit for me.” 

“Taking their advice to heart, I transitioned into broking and have now been in the job for just over three years. As they say, the rest is history.”

Embracing change: Simplification in self-employed applications

Sutton is enthusiastic about the positive changes he’s witnessed in the broking industry, particularly the strides made in simplifying self-employed applications — a segment of the market that has traditionally faced significant challenges.

“Self-employed clients often face challenges in accessing the best rates and major lenders due to the complexity and time-consuming nature of gathering documentation for a full doc application,” he said. “The introduction of solutions where lenders consider one-year financials, average notice of assessments, or simplified processes via payslips with an accountant’s letter has significantly streamlined and expedited the application process.

“This development has particularly benefited deserving self-employed clients by providing them with quicker and easier access to competitive loan products.”

Navigating industry challenges: The battle for market share

However, it’s not all smooth sailing in the broking world. Sutton is acutely aware of the growing challenges that brokers face, particularly the increasing competition from both lenders and fellow brokers.

“The broking industry risks becoming a victim of its own success,” he said. “With over 70% of home loan lending now going through brokers, lenders are starting to push back, trying to reclaim some of that market share through direct channels. Major lenders have substantial budgets and can sustain losses to achieve their long-term goals, making it a significant challenge for brokers.”

Sutton’s solution to this looming threat is clear: brokers must double down on exceptional service and tailored, policy-based solutions that address the specific needs of their clients.

“We need to maintain our position as the preferred choice for borrowers,” he said. “That means providing unparalleled service and ensuring that we’re offering solutions that borrowers can’t easily find elsewhere.”

But the competition isn’t just from the banks. Sutton also highlights the increasing rivalry among brokers themselves.

“As more brokers enter the market, the need for differentiation, strong marketing, and strategic positioning becomes even more critical,” he said. “Clients won’t hesitate to switch brokers if they perceive a better fit or if they aren’t receiving top-notch service. The camaraderie we’ve enjoyed in the industry may be tested as brokers encounter clawbacks due to competition from their peers.”

The importance of resilience and a strong pipeline

Sutton’s journey as a broker hasn’t been without its challenges. He vividly recalls his first loan — a complex family pledge loan that ended in a clawback when the clients separated and immediately resold the property.

“That experience was a real eye-opener,” he said. “It taught me that even when you do everything right, things can still go wrong. Dealing with people can be unpredictable, and their circumstances can change suddenly and unexpectedly.”

This experience, he pointed out, drove home the importance of resilience and the need for brokers to continually build their pipeline.

“There are no guarantees in this business, so it’s vital to maintain a steady flow of prospective clients and new business,” Sutton said. “That way, you can better manage the inherent uncertainties of the industry and ensure a more consistent income stream.”

Managing stress and maintaining wellbeing

For those aspiring to enter the world of mortgage broking, or those who are new to the industry, Sutton has some wise advice – prepare for the stress that comes with the job and develop strategies to manage it effectively.

“One of the most surprising aspects of broking is the level of stress that can accumulate throughout the loan process,” Sutton warns. “Clients often experience a range of emotions — fear of rejection, concerns about income adequacy—and those emotions can easily transfer to you if you’re not careful.”

Sutton emphasised the importance of stress management techniques, whether through regular exercise, mindfulness practices, or simply taking breaks to recharge.

“Understanding and implementing these techniques early on will help you and effectiveness in the long run,” he said. “It’s essential to recognise when you need to take time for yourself, especially given the tight deadlines and high stakes that come with the job.”

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