How to Become a Mortgage Broker
1. Undertake Mortgage Broking Education
- Certificate IV in Finance & Mortgage Broking (Minimum Requirement)
- Diploma in Finance & Mortgage Broking Management
2. Join a Professional Mortgage Broker Association
3. Obtain Credit Accreditation
What qualifications Do You Need to Become a Mortgage Broker
Mortgage Broker Training provides courses to get you started as an Australian finance or mortgage broker. The main industry requirement to become a mortgage broker or credit adviser is an FNS40815 Certificate IV in Finance and Mortgage Broking. Even experienced brokers are required to have the Certificate IV in Finance and Mortgage Broking under ASIC requirements for credit licencing, MFAA guidelines, FBAA guidelines and to become accredited with lenders.
The Certificate IV in Finance and Mortgage Broking enables you to become accredited with lenders and the industry associations – the Mortgage and Finance Association of Australia – MFAA and the Finance Brokers Association of Australia – FBAA. The Certificate IV will also meet the educational standard of the National Consumer Credit Protection Act – NCCP (Federal licencing requirements).
The MFAA also requires members achieve a Diploma in Finance and Mortgage Broking Management within 12 months of becoming a member, while Commonwealth Bank announced in December 2017 that they would require brokers to have this qualification to become accredited with them.
The FNS40815 Certificate IV in Finance and Mortgage Broking, and the FNS50315 Diploma in Finance and Mortgage Broking Management are both included in the Combined Diploma course. The package saves you money and enables you to fast track your Mortgage Broking Career!
The Finance and Mortgage Broker courses offered are all nationally recognised within the Australian Mortgage Finance Industry by Broker Groups, Industry Associations and Australian Lending Institutions.
This is the starting point for your career as an Accredited Mortgage Broker or Credit Advisor.
If you want to enter the finance and mortgage industry, some Broker Groups and franchises will offer training courses. However, you need to commit to them before the training, often paying hefty franchise fees before you can join or understand the industry.
Learning about the finance and mortgage industry and achieving industry and government recognised qualifications gives you the knowledge before committing to a group or paying franchise fees. By completing one of these mortgage broker courses, you obtain the educational requirements and knowledge of the finance and mortgage industry first.
Then with an understanding of the finance and mortgage broking industry, you can choose where you want to get started in your mortgage broking career.
How to Get Access to Lenders Products?
To act as a Broker, you will need to have access to a wide variety of lenders and products. While a lot of Brokers would maintain direct accreditations with lenders, the major Lender’s often have volume and compliance standards that a Broker might have difficulty in achieving by themselves. For this reason, most Brokers will use the services of an aggregator (a wholesaler for the finance industry) to have access to major lenders and maintain their accreditations.
The aggregators come in various forms from discount “warehouses” to fully branded franchise groups. All of the aggregators will offer additional services other than just maintaining access to lenders. Some of the extra services could include loan comparison software, compliance support, credit licence support, providing leads, CRM, administration, training mentoring and many other services. Most aggregators would also offer access to other non-finance products and services that their members can provide for their clients and receive commissions or fees.
Major lenders would also require a Broker to either hold an Australian Credit Licence (ACL) or be authorised under a licence (generally by the aggregator or the groups they work with). Lenders will also require brokers to have completed a Certificate IV in Finance and Mortgage Broking and join a Mortgage Industry Body.
For more information on the various industry bodies available, see our guide on Mortgage Industry Associations (MFAA). Further information is available about Australian Credit Licences (ACL) on our Australian Credit Licence Page.
Tips on Becoming a Mortgage Broker
Conduct Research, read as much as you can about mortgages, sales, and finance; there are numerous sources online.
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 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.
- You will need to achieve Certificate IV in Finance and Mortgage Broking.
- 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 such as the MFAA (Mortgage and Finance Association of Australia) or the FBAA (Finance Brokers Association of Australia). Membership Guidelines are available on our website: MFAA Membership Criteria FBAA Membership Criteria.
- If you are joining the MFAA, you will also have to complete a Diploma in Finance and Mortgage Broking management within 12 months.
- Get Experience. You may want to gain some experience in the industry before you go out on your own. You can do this by utilising the services of an aggregator or franchise, 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.