Why first-hand knowledge makes a difference in broking
Nicholas Schnell’s (pictured above) mortgage advising combines personal experience, professionalism, and a commitment to personalised service, making him a standout in the digital age.
From investor to mortgage adviser
Schnell’s journey into mortgage advising began when he moved to Hawkes Bay with his wife. Searching for a business opportunity, Schnell found a Mike Pero Mortgages franchise with a relatively low entry point.
“I’d borrowed a lot of money for investment properties and used a broker, so I thought it would be good helping arrange finance for others,” Schnell says.
This blend of personal experience and a desire to help others led him to pursue a career as a mortgage adviser and franchise owner.
Regulations bring professionalism to the industry
For Schnell, one of the most positive developments in the mortgage broking industry has been the tightening of regulations. He believes that increased regulatory scrutiny has raised the standards of the profession.
“It’s made our industry more professional, and perhaps not as easy as it once was to get into. It has forced us to be better brokers,” he says.
The heightened regulations ensure that brokers operate with greater responsibility and integrity, ultimately benefiting clients.
AI and the importance of the personal touch
Schnell identifies artificial intelligence (AI) as a significant challenge currently facing the broking industry. With people being time-poor and accustomed to quick, online solutions, the rise of AI poses a threat to traditional broking.
However, Schnell believes the solution lies in maintaining the personal touch.
“The solution is for us to stick to our lane, which is the personal touch,” he says. “People still love face-to-face meetings and being able to sit down with another human and discuss their plans, ambitions, desires.”
By emphasising personal interaction, brokers can continue to differentiate themselves in a rapidly digitalising world.
Guiding clients to become successful investors
Reflecting on his most rewarding experiences, Schnell highlights moments when he has helped young individuals or couples become successful investors.
“My most memorable experiences are those where I’ve helped young, single people (or couples sometimes) become great investors,” he says. “They might have had fairly good income but no clue about getting your money working for you through the sensible use of debt.”
Watching clients grow their equity and return for guidance on subsequent properties is an incredibly fulfilling part of his job.
Advice for aspiring mortgage advisers
For those new to the industry or aspiring to become mortgage advisers, Schnell offers practical advice: live the experience you offer your clients.
“It’s great if you can ‘walk the talk,’ so get in and borrow some money and pay it off so you can talk to clients from experience,” he says.
Schnell highlights the importance of firsthand experience, whether it’s owning an investment property or practicing good budgeting skills.
“Nothing teaches quite like doing,” he says. “These days it’s also good to be able to talk to clients about budgeting so it’s good for you to act like your ideal client so you can talk from experience – easier said than done!”
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