Conversation with a mortgage broker 23 years ago altered his career path
![Broker in Focus: Paul Kavanagh, Mortgage Finance Solutions](https://cdn-res.keymedia.com/cdn-cgi/image/w=1000,h=600,f=auto/https://cdn-res.keymedia.com/cms/images/us/075/0343_638570065525107017.png)
Paul Kavanagh (pictured above), director of Mortgage Finance Solutions, has spent over two decades in the mortgage broking industry.
His journey, which began in 2001, is marked by adaptability, community engagement, and a relentless pursuit of excellence in client service. Here, he shares his insights on the evolving landscape of mortgage broking, the challenges the industry faces, and his advice for aspiring brokers.
Getting into the industry
In late 1999, Kavanagh was among the first mobile mortgage managers for NAB. His office was located across the street from a real estate agency where a broker named David Scott operated.
“I didn’t even know what a broker did back then,” he recalled. “He was referring clients, and that was where our conversations started. My entry into broking was initiated through these interactions.”
By early 2001, Kavanagh had made the transition to a full-fledged broker, laying the foundation for what would become a successful career. His experience as a mobile mortgage manager provided a solid base, but it was the interaction and subsequent relationships built within the community that truly defined his path.
The rise of broker utilisation
Kavanagh views the increasing reliance on brokers as one of the most positive developments in the industry.
“When I started, only 33% of the market used a broker,” he said. “Today, that figure has reached 74%.”
This significant shift underscores the value and trust that brokers have garnered over the years, Kavanagh said.
“It vindicates the professional service proposition we provide and is acknowledged by community support and uptake into our services,” he said.
Navigating current challenges
Kavanagh acknowledges that the mortgage broking industry is not without its challenges. Technological advancements, while offering convenience, also pose potential difficulties, he said.
“Tech is both convenient but also challenging,” Kavanagh said. “It will ‘expose’ a lot of client details like monthly living costs that may, in turn, make it difficult for a client to qualify for a loan.”
Additionally, lenders are increasingly looking to reclaim market share through online platforms and loan options.
However, Kavanagh remains optimistic and sees these developments not as insurmountable challenges but as aspects of a dynamic industry.
“Sticking to our long-trusted service model will help us ride out these changes,” he said.
Lessons from the Royal Commission
Reflecting on his career, Kavanagh identifies the Royal Commission as one of the most challenging periods.
“The Royal Commission felt like it was out of our control, what was being presented and suggested,” he said, adding that the scrutiny and potential changes to commission and remuneration structures threatened to upend the industry.
However, the collective response from brokers across the country was a turning point for him.
“The collective voice to challenge Kenneth Hayne’s commission and remuneration structure was empowering and a win for the industry and our clients,” Kavanagh said.
This experience underscored the importance of unity and advocacy within the industry, reinforcing the need for brokers to support one another and stand firm in the face of regulatory challenges.
Advice for aspiring brokers
For those considering a career in mortgage broking or new to the field, Kavanagh offers valuable advice: “Don’t be afraid to ask for help. There is so much to know, and changes are a constant.
“We have a great team at Mortgage Finance Solutions and are always bouncing ideas and scenarios off each other. After 23 years in broking, I still never profess to know everything and seek peer input. It is a great industry to be part of and satisfying making your clients’ dreams come true.”
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