How to Become A Mortgage Broker in Australia
- Why become a Mortgage Broker?
- What is a Mortgage Broker?
- What does a Mortgage Broker do?
- What does a good Mortgage Broker do?
- What are the minimum requirements to become a Mortgage Broker?
- Learn about Mortgage Broking before you start
- How do I gain access to a wide variety of lending institutions?
- Do I need any qualifications or licences to become a Mortgage Broker?
- How do I get started as a Mortgage Broker?
- Mortgage Broker Industry Requirements
- What are the requirements needed to be a Mortgage Broker?
- MFAA or FBAA Accreditation
- How do you start your career in Mortgage Broking?
- How can Walker and Miller help me become a Mortgage Broker?
Why become a Mortgage Broker?
Mortgage and Finance broking can be one of the most rewarding careers available in Australia. The ability to work flexible hours and earn a substantial income are some of the benefits of the industry, especially when the entry requirements to become a broker are simpler than other industries that offer similar rewards.
What is a Mortgage Broker?
A Mortgage Broker assists borrowers by providing information, expertise, and contacts. They then compare the lenders and loan products in the market that match the borrower’s requirements. A mortgage or finance broker’s role is to facilitate a smooth transaction with as little hassle to the borrowers as possible, saving them from the confusion of credit processes and needing to talk to lenders.
What does a Mortgage Broker do?
Brokers usually have access to a wide range of lenders and products and should aim to source the most appropriate loan for the clients’ situation. A broker looks at the client’s specific needs and circumstances and should be able to interpret which type of loan best suits their clients and why.
A broker has the ability to look at the different angles of a loan application and structure their client’s application in its most positive light, rather than just seeing whether it meets a checklist or not. Remember, the broker doesn’t get paid until the loan settles so it’s in your interest as a broker to make sure you are looking after your client’s needs ethically and within the lending, policy set out by the lenders you use.
What does a good Mortgage Broker do?
Good brokers will ‘chase’ approvals for their clients. Your service doesn’t stop with just submitting your loan, it continues right up to and after settlement. As a broker, you should be trying to minimize the legwork and hassles for your clients, and remain available to answer any questions they may have, even well after the loan settles. The broker should liaise with all the parties involved in the transaction including the real estate agent and solicitor/ conveyancer. This way you do not only offer a professional service but can build a relationship with them so that you are the first person they come to when they or their clients are thinking about finance.
For further information about getting started Click here to fill in the enquiry form
What are the minimum requirements to become a Mortgage Broker?
As a minimum requirement, most lenders now require you to have a Certificate 4 and become a member of an industry association, generally the MFAA (Mortgage & Finance Association of Australia) or the FBAA (Finance Brokers Association of Australia). These associations will require you to have a FNS40815 Certificate IV in Finance and Mortgage Broking as will the National Consumer Credit Protection Act (NCCP) which requires a Certificate 4 to obtain a credit licence or become a credit representative. Since June 2012, The MFAA also requires members to be enrolled or obtain a FNS50315 Diploma in Finance and Mortgage Broking Management).
Learn about Mortgage Broking before you start
Some of the Broker and Franchise Groups have training courses for new brokers starting in the mortgage industry, but you need to commit to them prior to undertaking the training. They might even require you to pay huge franchise fees prior to you having a complete understanding of your options in the industry. With this course, you gain the ability to transact in the market place and choose the group, if any, that is right for you after you have gained enough knowledge to make a proper decision. Part of the course covers the groups in the industry and what they offer you. On course completion, a variety of career opportunities are open to you including working as a mortgage or finance broker, in credit, loan processing, a mobile lender for mortgage companies, banks, and other industry companies.
How do I gain access to a wide variety of lending institutions?
To act as a broker you will need to have access to a variety of lenders and products. Most lenders have a minimum volume of loans that a broker/brokerage has to send them on a monthly basis in order for the broker/brokerage to have access to and get paid by that lender. If each lender required $2 million in settlements a month, to maintain accreditation with 3 lenders would require $6 million in loans each month.
Some brokers will do this or will have agreements with one or two major institutions, and then use other institutions that don’t have a minimum requirement to make up the numbers for marketing purposes. To gain access to lots of lenders without having to worry about minimum volumes etc, most mortgage brokers will enlist the support of an ‘aggregator’ or wholesaler. The aggregator holds the individual agreements with the lenders and brokers use the aggregator’s agreements to submit their loans. The minimum volumes are made up by the loans being submitted by all the brokers using the aggregator’s agreements. The aggregator takes a portion of the overall commission for providing the service or may charge a flat fee. Most aggregators also provide other services such as ACL (Credit Licence) compliance, software, training support, general business support, and back-office administration.
Do I need any qualifications or licences to become a Mortgage Broker?
The main requirement to become a mortgage broker is to complete a Certificate IV in Finance and Mortgage Broking FNS40815 .
On the 1st July 2010 National Consumer Credit Protection (NCCP) Act came into force. This requires anyone providing credit to comply with the NCCP. From 1st January 2011, NCCP requires Mortgage and Finance Brokers to either hold an Australian Credit Licence (ACL) or act under a licence as a credit representative.
Most lending institutions will require you to have completed at minimum an accreditation with a Mortgage Industry Body, either hold an ACL or be a credit representative.
For more information on the various industry bodies available, click here.
How do I get started as a Mortgage Broker?
Conduct Research – Read as much as you can about mortgages, sales, and finance. There are numerous publications such as The Adviser, Mortgage Professional Australia, and Australian Broker that are available from most newsagents. Some other tips include:
- Speak with other mortgage brokers to find out how they work and who they operate through.
- Speak to various lenders whose products you may wish to sell and find out about their individual accreditation processes.
- Speak to the aggregator and franchise companies to see if any of them offer a model that suits your needs.
- Consider a franchise or aggregator where they provide training and support.
Mortgage Broker Industry Requirements
The requirements to now become a broker, be able to become accredited with lending institutions to sell their products, and to join the FBAA / MFAA include completion of the FNS40815 Certificate IV in Finance and Mortgage Broking. Even experienced brokers are required to have a Certificate IV if they are to join the association. (See the How to become a broker Starters page for further details). As of January 2013, all brokers wishing to join the MFAA also are required to obtain a Diploma in Finance and Mortgage Broking Management in the first year of membership.
What are the requirements needed to be a Mortgage Broker?
- You will also have to complete a FNS40815 Certificate IV in Finance and Mortgage Broking which can be completed through us. For more information on the Cert IV, please visit the ‘Course Content‘ page of our website.
- You will need to get professional indemnity insurance generally with a minimum of $1,000,000 per claim, and $2,000,000 in aggregate. Most of the industry bodies have relationships with various insurers, as do most aggregation or franchise groups.
Join an industry body. (MFAA or FBAA) To find a website link to the mortgage industry bodies, please visit the ‘Industry Bodies’ link in the ‘Innovation and Information’ section of our website.
- Become a Credit representative of an Australian Credit Licence
- Get Experience. You may want to gain some experience in the industry before you go out on your own. You can do this by utilizing the services of an aggregator or franchisor, or by working for an established company. The benefits of doing something like this include having some training and support and also not having to outlay huge sums of money to get started. You can also learn while you work. We can introduce you to aggregators and groups to get you started.
MFAA or FBAA Accreditation
If you are wanting to become a mortgage broker and become accredited with the major Australian lenders you need to achieve Associate Credit Advisor (ACA) (Previously Accredited Mortgage Consultant (AMC) status with the Mortgage and Finance association – MFAA, or join the Finance Brokers Association of Australia – FBAA. This course is the starting point for both memberships.
How do you start your career in Mortgage Broking?
The Certificate IV course is the basis for becoming a mortgage or finance broker. On successful course completion, you can apply to the MFAA as an Associate Credit Advisor or for FBAA membership or to become accredited with banks and other financial institutions. We can even introduce you to Mortgage groups and financial institutions looking for new employees and members. Click Here to Enquire Now
How can Walker and Miller help me become a Mortgage Broker?
Walker & Miller Training Services provides one of the few independent Mortgage broker Certificate IV and Diploma courses in Australia designed to get you started as a Mortgage Broker and accredited with the MFAA, FBAA, major Australian lending institutions and comply with ASIC’s education requirements. Courses are held monthly in Sydney, Melbourne and Brisbane, and other capital cities or can be completed via distance learning.
Further information on How to become a mortgage or finance broker is available on our “How to become a Mortgage Broker” Starters page. Alternatively for further information about getting started as a mortgage broker Click here to fill in the enquiry form or call 1300 136 947 or (0299225198).
Whether you are new to the industry or need to become compliant under the ASIC and FBAA/MFAA guidelines, this course is designed to have you operating in the minimum possible time frame while gaining solid foundations in the mortgage industry.
For details of the next course please call: