As per a recent MFAA report, 60.1% of all residential home loans originated with Mortgage Brokers in the July – September quarter of 2020. As more Australians turn to mortgage brokers to navigate the ever-evolving home loan market, the profession’s career prospects and earning potential have certainly enjoyed a boost. While becoming a mortgage broker involves many steps, here’s our take on the key ones.

 

#1 Certification

Certification in Finance and Mortgage broking is the minimum educational and qualification requirement of becoming a mortgage broker. Several institutions offer this certification. The average course fee is about $845 and has a duration of one year. 

 

#2 Industry Body Affiliation

While this isn’t a mandatory requirement, an industry body affiliation helps stay updated on the latest best practice, industry news and policy changes. It also provides excellent avenues for peer interaction. Additionally, a lot of lenders mandate an industry body affiliation for associated brokers. The two largest Mortgage Broking Industry Bodies in Australia are the MFAA and the Finance Brokers Association of Australia (FBAA). 

 

#3 Accreditation

You would need a licence from the Australian Securities and Investments Commission (ASIC). You will also need to adhere to the National Consumer Credit Protection Act. A license from ASIC requires a minimum of two years of credit experience. Another possible path to accreditation is becoming a credit representative of an established Mortgage Broking Firm.

 

#4 Decide on Aggregator, Franchise, or individual business model

As a mortgage broker, you could either go solo, buy a franchise, or align with an aggregator. Each approach has pros and cons. If you have a lot of experience in the finance space with substantial contacts on the client and lender side, then the solo approach may be best for you. Brokers looking at minimal support of accessing a robust lending panel could consider opting for an aggregator. If you are entirely new to the mortgage broking space and are looking for marketing support and a regular influx of enquiries/lead, then contemplate buying the franchise of an established Mortgage Brand. For a complete guide on the benefits of Mortgage Broking Franchise, click HERE.

 

#5 Mentorship

Receiving mentoring is a mandatory requirement of becoming a Mortgage Broker in Australia for the first two years. Mentoring is nothing but advice and guidance from an established Mortgage Broking professional. Your mentor will offer you advice on all aspects of your business ranging from lender requirements to compliance to a business plan. A lot of firms and individual brokers provide mentorship for a fee.

 

If you are considering becoming a mortgage broker, contact us for a quick discussion to understand the best way forward for you.