How to become a mortgage broker in Australia

In today’s dynamic financial landscape, the role of a mortgage broker has become increasingly vital in helping individuals navigate the complex world of home financing. The process of becoming a mortgage broker involves a series of steps and requirements that aspiring professionals must fulfil to establish themselves in this rewarding field.

This resource explores the journey to becoming a mortgage broker, outlining the key qualifications, industry insights, and essential steps that pave the way for a successful career. From acquiring the necessary education and licenses to building industry expertise and fostering professional relationships, we delve into the multifaceted path that leads individuals to excel in the realm of mortgage broking.

A great way to become a mortgage broker in Australia is to start your career with a mortgage broker aggregator. An aggregator is a group that you can join to access pre-existing lender panels and gain other forms of support such as marketing and business assistance. They also add value to brokers by processing commissions and providing easier access to lenders so that you can focus on the aspects of broking that you want, while leaving the rest to the mortgage aggregator.

Do aggregators suit new mortgage brokers?

The right mortgage broker aggregator can open many doors for starting mortgage brokers. They can provide leads, industry software, compliance support, business development, networking, and even marketing support. The right mortgage aggregator for you is the one who can provide the support and lenders that you need – at a fair price.

For new brokers, one of the most important aspects to think about is mentorship. For example, if you intend to obtain an Australian Credit License, ASIC requires you to have at least two years of relevant problem-free experience. If you’re new to financial services, and you want to join an aggregator, you should find out if your prospective aggregator provides mentorship services. With a mentor, you can gain familiarity with the industry before taking on additional risk and compliance requirements that may come with your own practice.

Before learning how to become a mortgage broker, it’s best to gain a comprehensive understanding of the mortgage industry, familiarise yourself with the personal attributes that contribute to success in the role and learn about the qualifications required.

As defined by ASIC, a mortgage broker is “a person who matches borrowers to lenders and arranges mortgage contracts between the two parties.” However, being a successful mortgage broker entails much more than this concise definition. Some other responsibilities brokers may have include:

• Informing clients about the financial records they are required to pass on
• Maintaining reliable contact with clients through the entire financing process
• Researching and recommending suitable loans
• Remaining compliant and fulfilling reporting requirements
• Staying in contact with banks and lenders to manage the application process
• Connecting with stakeholders involved in the process, including accountants and advisors.

With all the additional responsibility, it may seem like no one would ever want to become a mortgage broker, however it is also a hugely rewarding industry to be part of:

• As a mortgage broker you directly contribute to the Australians dream of home ownership
• When you become a mortgage broker you can help buyers save time and reduce their financial stress through your efforts
• Becoming a mortgage broker means working flexibly and independently
• Mortgage brokers in Australia have access to some of the world’s leading mentorships, networking, and professional development opportunities through associations or mortgage aggregators
• Mortgage brokers can earn a sizeable amount through commission and trail

If you’re new to the mortgage broking industry and feeling overwhelmed about how to become a mortgage broker, finding support is readily available. A great starting point for aspiring mortgage brokers is to connect with mortgage aggregators. In Australia, mortgage aggregators can offer valuable guidance and serve as a foundation for launching your mortgage broking career. With their expertise and resources, they can help you navigate the intricacies of the mortgage broking world and provide the necessary support to get started.

If you’re exploring the path to becoming a mortgage broker, you’ve come to the right place. While individual journeys may vary, there are five fundamental steps that most aspiring mortgage brokers follow to establish their career.

Step 1: Obtain the right qualifications

Begin by completing an accredited course such as the Certificate IV in Finance and Mortgage Broking. This education equips you with the fundamental knowledge and skills required to navigate the mortgage industry. All mortgage brokers hold this qualification as a minimum, and many aggregators, as well as the MFAA, may also require you to obtain a Diploma of Finance and Mortgage Broking Management.

Generally, these courses will walk you through:

• An introduction to the mortgage industry in Australia
• Loan fundamentals and lending ethics
• Legislation and regulatory frameworks, and how to comply with them
• Relationship building, with clients and other stakeholders
• How to identify needs of clients
• How to research and present financing options
• How to process loan applications

Step 2: Join an aggregator

Partnering with a mortgage aggregator provides access to a network of lenders, tools, and support systems. Aggregators also offer valuable resources, including loan products, software systems, compliance support, and ongoing training opportunities.

New-to-industry mortgage brokers should choose an aggregator that can appoint their members as Australian Credit Representatives who operate under the aggregator’s Australian Credit License. This is because brokers need at least two years of experience before obtaining their own Australian Credit License. Gaining that experience through a one-on-one mentorship, facilitated by your aggregator, is a great way to start your career.

Obtaining an Australian Credit License is a personal preference. Many brokers remain representatives of a licensee throughout their career.

Step 3: Join a professional association

There are two main industry bodies for mortgage brokers in Australia. They are the:

• Mortgage and Finance Association of Australia (MFAA)
• Finance Brokers Association of Australia (FBAA)

The benefits of these associations can harmonise with the benefits gained from your aggregator. Among other perks, they provide industry-wide advocacy and representation in the media and in government; national conferences, forums and other events; and industry research and news.

Before you approach an association, you’ll need to research the documentation necessary to apply. Documents differ slightly between associations, but generally you’ll need to prepare:

• Photo ID
• Resume
• Certificate IV in Financing and Mortgage Broking
• Credit Check
• Police Check
• Proof that you hold professional indemnity insurance

Some mortgage aggregators have a preferred association and some require brokers to be a member of an association before joining the aggregator.

Step 4: Gain experience and seek mentoring

Acquire practical experience in the financial or lending industry to develop a strong foundation of knowledge and understanding. Consider working in roles such as a loan officer or assistant to gain hands-on experience in mortgage processes and client interactions.

At this point, many brokers find a mentor to take them through the first two years. Note that mentorship is actually a requirement if you are a member of the MFAA or FBAA. Some mentorships are formalised programs, whilst others are on-the-job training as you work as a credit representative for a broking group.

A good option is to sign up to the MFAA mentorship program for mortgage brokers, which is a structured method of undertaking mentoring during your foundational years as a mortgage broker. The MFAA has also assessed and accredited a number of mentorship programs run by aggregators and mortgage managers across Australia. For example, Loan Market, Finsure, and Buyer’s Choice are three aggregators with MFAA accredited mentors available to you.

Step 5: Develop a business plan

One crucial final step in the process of becoming a mortgage broker is to develop a comprehensive business plan. This step goes beyond the technical aspects of obtaining licenses and qualifications and focuses on setting a strategic direction for your mortgage broking business.

A well-crafted business plan helps you define your target market, outline your unique value proposition, and identify your competitive advantages. It allows you to assess the current market conditions, conduct a thorough competitor analysis, and determine your pricing and marketing strategies. Additionally, a business plan serves as a roadmap for your financial projections, outlining your expected income and expenses, cash flow analysis, and growth projections. It helps you set realistic goals and milestones, enabling you to measure your progress over time.

By developing a solid business plan, you gain a clear understanding of your business objectives, target audience, and the steps needed to achieve your goals. It also enhances your credibility and provides a solid foundation for securing financing, attracting potential partners, and making informed decisions as you embark on your journey as a mortgage broker.

While becoming a mortgage broker in Australia is a similar process irrespective of the state you preside in, you may want to consider looking for mortgage aggregators and mentors who have a local presence in your region. This will ensure that you can get started as efficiently as possible.

How to become a mortgage broker in Sydney

If you aspire to become a mortgage broker in Sydney, you’ll find yourself in a thriving market with abundant opportunities. Building a successful career in this dynamic city requires several essential steps. Start by acquiring the necessary qualifications to comply with regulatory standards set by the Australian Securities and Investments Commission (ASIC). One advantage of being in Sydney is the vibrant networking scene, where you can connect with industry professionals, attend mortgage broker events, and engage with local associations like the Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). Additionally, staying up-to-date with the booming Sydney property market and having a deep understanding of local market trends will position you as a trusted advisor to your clients. By leveraging the opportunities in Sydney and building a strong professional network, you can embark on a rewarding career as a mortgage broker in this dynamic and competitive market.

How to become a mortgage broker in Melbourne

Becoming a mortgage broker in Melbourne offers exciting opportunities in one of the most liveable cities in the world. With a strong property market and a vibrant culture, Melbourne presents a unique landscape for new mortgage brokers starting out. To begin your journey, it is essential to obtain the necessary qualifications and licenses, such as the Certificate IV in Finance and Mortgage Broking and an Australian Credit License (ACL), to comply with regulatory requirements. Melbourne’s thriving property market provides a wealth of potential clients and opportunities for growth. Network with local real estate agents, industry associations like the Mortgage & Finance Association of Australia (MFAA), and attend industry events to connect with professionals and stay informed about market trends. Leverage Melbourne’s reputation as a desirable place to live and work to build relationships and establish yourself as a trusted mortgage broker. By tapping into the city’s liveability and vibrant property market, you can embark on a successful career as a mortgage broker in Melbourne.

How to become a mortgage broker in Queensland

Becoming a mortgage broker in Queensland presents an exciting opportunity in a state known for its natural wonders and commitment to climate change action. As Queensland is home to iconic destinations like the Great Barrier Reef, the demand for property remains high. This, coupled with the state’s focus on sustainable development, creates a favourable environment for mortgage brokers. To embark on this career path, start by obtaining the necessary qualifications and licenses, then gain practical experience by working in the finance or lending sector, honing your skills in assessing loan applications and providing financial advice. Additionally, staying up-to-date with market trends and digital marketing techniques will help you establish a strong online presence. Consider joining a reputable mortgage aggregator or brokerage firm that can provide mentorship and access to a diverse range of lenders. The MFAA lists Michelle Standley of Coronis Mortgage and Finance as Brisbane’s one and only MFAA accredited mentor.