How to become a mortgage broker in Australia

A practical way to become a mortgage broker in Australia is to start your career with a mortgage broker aggregator. An aggregator is a group you can join to access an established lender panel and support services, such as marketing and business guidance. Many aggregators also handle commission processing and simplify lender access, so you can focus on advising clients and writing loans while the aggregator manages much of the back-end.

Do aggregators suit new mortgage brokers?

For new mortgage brokers, aggregators often make the path to writing loans simpler and faster. The right mortgage broker aggregator can open many doors, giving you access to a range of lenders, industry software, compliance support, training, business development and more. The best mortgage aggregator for you is the one that matches your stage of business, offers the right level of hands-on support and provides lender access that suits your target clients, with fees that are clear and fair.

Mentorship for mortgage brokers

For new brokers, one of the most important things to consider is mentorship. If you plan to operate under your own Australian Credit Licence (ACL), ASIC assesses whether your business has the right organisational competence through your nominated responsible manager(s).

In practice, ASIC expects responsible managers to have at least two years of relevant, problem-free experience (alongside appropriate qualifications). If you’re new to broking and looking to join an aggregator, it’s worth checking whether they offer formal mentorship. With the right mentor, you can build practical industry experience before taking on the added risk and compliance responsibilities that come with running a licensed practice.

Before becoming a mortgage broker, it’s best to gain a comprehensive understanding of the mortgage industry while familiarising yourself with the required qualifications.

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. Other responsibilities may 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 these added responsibilities, mortgage broking can be a demanding career. However, it’s also a hugely rewarding industry to be part of, because:

• As a mortgage broker you directly contribute to the Australians dream of home ownership.
• When you become a broker you can help buyers reduce their financial burden 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 income through commission and trail.

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 mortgage brokers follow to start their career.

Step 1

Obtain the right qualifications

Begin by completing an accredited mortgage broker 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 a mortgage 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 select an aggregator that can appoint them as Australian Credit Representatives, operating under the aggregator’s Australian Credit Licence (ACL). This is because brokers typically need at least two years of experience before applying for their own ACL. Gaining that experience through one-on-one mentorship, facilitated by your aggregator, is a strong way to start your career.

Obtaining an ACL is a personal preference. Many brokers elect to remain representatives of a licensee throughout their career instead of applying for their own, so it’s worth taking the time to find the best mortgage broker aggregator that offers the right support and mentoring for your long-term 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

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 broker is to develop a comprehensive mortgage broker business plan. This step goes beyond the technical aspects of obtaining licences 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 realistic goals and milestones, enabling you to measure 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 foundation for securing financing and making informed decisions as you embark on your journey.

If you’re also planning how you’ll attract clients and build trust online, it’s worth reviewing examples of professional websites for mortgage brokers to see what works and what to prioritise from day one.

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.