How to become a Mortgage Broker in Australia
A Mortgage Broker is a trained, licensed financial adviser who serves as an intermediary between borrowers and lenders. Using their extensive network, resources and industry knowledge, they help their clients to find an appropriate home loan to suit their personal needs and financial circumstances. Mortgage Brokers work on behalf of their clients - the borrowers - as a liaison with multiple banks and lending institutes to find the best loan with the lowest rates. The Mortgage Broker determines the borrowing capacity of their client and calculates deposit amounts, loan costs such as application fees and stamp duty. They assess and interpret the financial standing of the borrower, research applicable loan packages and provide their client with advice on the best loan options available to them.
Once the client’s requirements and financial situation have been determined, the Mortgage Broker will liaise with the banks and lending institutes to facilitate and manage the application process. They outline all the necessary steps and documentation required of the client, collate the information and pass it on to the lender as required. A Mortgage Broker provides ongoing support, up to and even beyond the pre-approval of a home loan, answering client queries and raising issues such as insurance needed and ensuring the client is comfortable and prepared for their first repayment.
Are you organised, methodical and interested in the world of finance? Do you want to use your negotiation and communication skills to help people buy their new homes? Here are some steps you will need to take to become a Mortgage Broker in Australia.
Step 1: Complete a Certificate IV.
To become a Mortgage Broker, the first and most important qualification you will need is a Certificate IV in Finance and Mortgage Broking. This is a minimum requirement to work as a broker in Australia and will also help to qualify you for further study. There are many educational institutes that offer this course so make sure you do your research and choose a recognised, accredited provider.
Step 2: Obtain a finance diploma.
Although this is not a requirement for licensing, it is highly recommended that you continue your studies after completing the Certificate IV. The Diploma in Finance and Mortgage Broking will not only give you a greater understanding of the processes and principles involved but will increase your employment prospects significantly.
Step 3: Get your licence.
Now that you have completed your education you will need to apply for a licence. In Australia, all Mortgage Brokers must have an Australian Credit Licence (ACL), obtained through the Australian Securities and Investments Commission (ASIC). If you don’t obtain an ACL you will only be able to work as a credit representative (ACR) under another individual or company’s ACL, so it is recommended that you get the licence to improve your employment and earning potential.
Step 4: Join an organisation and find an aggregator.
Once you have completed your education and obtained your licence you are required to join a reputable, professional mortgage broking organisation to receive mentorship from a practising Mortgage Broker. Your mentor will not only guide you through the first two years of your career but they will typically also act as an aggregator, giving you access to a number of lenders. There are a few options in Australia, including the Mortgage and Finance Association of Australia (MFAA) and the Finance Brokers Association of Australia (FBAA). Each organisation differs slightly in what they offer so be sure to do your research and speak to other brokers before making your choice.
What does a Mortgage Broker do?
A Mortgage Broker serves as a middleman between potential home buyers and a variety of banks and other lenders. Working on behalf of the borrower, they assess and analyse the financial situation of their clients to determine their borrowing capacity, then liaise with financial institutes to find the most suitable home loan. Once they have found an appropriate match, the Mortgage Broker then helps the prospective borrower throughout the application process, guiding them through the necessary document submissions, liaising with lenders and maintaining communication to ensure the application goes as smoothly as possible.
- Analysing and assessing client’s financial standing.
- Researching and identifying home loan packages to suit.
- Advising clients on borrowing capacity and other home loan costs.
- Liaising with various banks and lenders.
- Managing home loan application process on behalf of the borrower.
- Maintaining communication with clients to ensure smooth application process.
Skills for Success
A successful Mortgage Broker needs to be hard working and great with numbers and research. There is a lot of negotiating involved, so they need to be decisive and determined to get the best deal for each of their clients. A good Mortgage Broker is organised, methodical and a master of problem-solving and critical thinking. They must have great interpersonal and communication skills as well as a genuine desire to help people and get the best possible result.
- Determined and passionate about helping people.
- Good with numbers and calculations.
- Analytical and methodical.
- Great communication skills.
- Strong negotiating abilities.
- Good problem solving skills.
What does a Mortgage Broker earn in Australia? In Australia, the average Mortgage Broker earns around $56,629 per year. This varies greatly depending on experience and abilities and is intended as a reference only, from Payscale 03/18