10 minute read

People choose to become a mortgage broker for many different reasons. Sometimes they want to run their own business and be their own boss. Others want to help families achieve the Australian dream. Some are tired of hiding behind a computer screen and want to interact with clients face-to-face.

Whatever the reason, becoming a mortgage broker in Australia can be deeply rewarding, if you have the right temperament and motivations. Here you can learn how to become a mortgage broker and make the right partnerships by associating yourself with the leading aggregators in Australia.

What are my responsibilities as a mortgage broker?

Before learning how to become a mortgage broker, it’s best to clarify the most common tasks that a mortgage broker takes on.

A mortgage broker is “a person who matches borrowers to lenders and arranges mortgage contracts between the two parties”—as defined by ASIC. But behind this one-liner, there is a whole world that mortgage brokers must juggle. Including:

  • Understanding clients goals, needs, and circumstances
  • Informing clients about the financial records they are required to pass on
  • Maintaining reliable contact with clients through the entire financing process
  • Researching 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 real estate agents, accountants and financial planners.

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 help Australians achieve their dream of home ownership
  • When you become a mortgage broker you help buyers save time and can reduce 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

If your new and wondering how to become a mortgage broker without becoming overwhelmed, you can find support quite easily. The best place to start for new mortgage brokers is with aggregators. Mortgage aggregators in Australia can guide you into the world of mortgage broking and provide the foundation to begin your business.

How to become a mortgage broker by joining an aggregator

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 compliance and regulation to the mortgage aggregator.

Do aggregators suit new or prospective mortgage brokers?

The right broker aggregator can open many doors for the upstart mortgage broker. They can provide leads, industry software, compliance support, business development, networking, and even marketing support. Therefore, 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 in general, 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 trade before taking on more risk and compliance requirements.

For more information on how to become a broker with some of the leading mortgage aggregators, visit our list of MFAA aggregators to help find the right aggregator for your business – or simply fill out the form and we’ll connect you with an aggregator that best suits your needs.

Become a mortgage broker in 4 steps

If you’ve been researching how to become a mortgage broker, you’ve come to the right place. Although paths can differ, there are four main steps that most mortgage brokers take to set up their career. There are smaller steps along the way, but you’ll be informed of them as you approach aggregators, mentors, and associations.

Step 1: Get the right qualifications

When becoming a mortgage broker, you must complete a Certificate IV in Finance and Mortgage Broking. All mortgage brokers hold this qualification. Many aggregators, as well as the MFAA, 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

New-to-industry mortgage brokers should choose aggregators 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. We can help you connect with a variety of mortgage aggregators to understand which ones can accommodate your career goals.

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: Receive mentoring

Now you’re ready to start your career as a mortgage broker in Australia. Congratulations! At this point, many brokers find a mentor to take them through the first two years. 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.For example, Loan Market, Finsure, and Buyer’s Choice are three aggregators with MFAA accredited mentors available to you.

While you’re still learning how to be a mortgage broker, a good alternative is to sign up to the MFAA mentorship program, which is a more structured method of undertaking mentoring during your foundational years as a mortgage broker.

If you have worked for the requisite time in the credit industry already, you may be able to get your Australian Credit License quicker and without mentoring. The MFAA has also assessed and accredited a number of mentorship programs run by aggregators and mortgage managers across Australia. Check out our list below to see what programs are available in your city.

How to be 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 and easily as possible.

How to be a mortgage broker in Sydney

As the Sydney property continues to break records, prospective mortgage brokers would be right to see the career opportunities in this hot, hot market. The MFAA lists, among other aggregators, the Commonwealth Bank-owned eChoice as a provider of mortgage broker mentorship through their ‘eChoice Mentoring’ program.

How to be a mortgage broker in Melbourne

After countless months of lockdown, listings are beginning to lift off dramatically, and the Melbourne market is going into overdrive. In order to jump into the action, you may want to check out aggregators, like Finsure, that have MFAA accredited mentors in tow.

How to be a mortgage broker in Brisbane

Brisbane property is demonstrating some of the best and most consistent quarterly growth in Australia. As homes continue to change hands rapidly, you can’t be blamed for considering mortgage broking as your next career pivot. The MFAA lists Michelle Standley of Coronis Mortgage and Finance as Brisbane’s one and only MFAA accredited mentor.

How to be a mortgage broker in other parts of Australia

Mortgage brokers continue to dominate market share after quickly gaining on other loan writers during the last few years. With mortgage brokers processing just under 60% of residential financing, many have seized the opportunity to learn how to become a mortgage broker. When it comes to nation-wide mentorship programs, the MFAA lists Aussie Home Loans’ ‘Aussie Mentoring’ as a program that meets the MFAA minimum standards of mentoring.