How to Become A Mortgage Broker - Starters Page
 What
is a
mortgage
broker?How
do I
Gain
Access
to a
Wide
Variety
of
Lending
Institutions?Do
I Need
Any
Qualifications
or
Licences?How
Do I Get
Started?Get
Qualified
|
What is a mortgage broker?
A Mortgage Broker helps borrowers by providing expert information and contacts, by 'comparison shopping' the many loans available in the marketplace on the borrowers behalf, and by facilitating a smooth transaction with little hassle to the borrowers. Brokers usually have access to a wide range of lenders and products, and should aim to source the best and most appropriate loan for their clients. A broker looks at the clients specific needs and circumstances, and should be able to interpret which type of loan best suits their clients and why.
A broker will look at the different angles of a loan application, and will present their client's application in it's 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 doing things ethically and within the lending policy set out by the lenders.
Good brokers will 'chase' approvals for their clients. Your service shouldn't stop with just submitting your loan, it should continue right up to and after settlement. As a broker you should be trying to minimize the legwork and hassle for your clients, and remain available to answer any questions they may have, even well after the loan settles. This way you can build a relationship with them, so that you are the first person they come to when they are thinking of refinancing etc.
for further information about getting started Click here to fill in the enquiry form
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 wide variety of lenders and products. Each lender usually has 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 that lender. Let's say that a broker wants to have access and be able to originate loans for lender 'X', lender 'Y', and lender 'Z'. Lender 'X' might require the broker to submit or settle $1 million per month, lender 'Y' might want $1.5 million per month, and lender 'X' might want $2.5 million per month. This means that the broker/brokerage has to submit a total of $6 million dollars are month, just to have access to three lenders. 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, some brokerages will enlisted the support of an 'aggregator'. The aggregator holds the individual agreements with the lenders, and individual brokers use the aggregator's agreements to submit their loans. The minimum volumes are made up by the loans being submitted by all the individual brokers, using the agreements of the aggregator. The aggregator takes apportion of the overall commission for providing the service, however also may provide other services such as software, training support, general business support, and back office administration.
Do I Need Any Qualifications or Licences?
Most lending institutions will require you to have completed at minimum an accreditation with a Mortgage Industry Body. For more information on the various industry bodies available, please click here. If you are operating in Western Australia or the Australian Capital Territory you will need to obtain a Finance Brokers Licence. For more information on the Western Australian licensing system, visit WA Requirements.
For more
information of
the ACT
licensing
requirements,
visit
www.fairtrading.act.gov.au
. Currently
there are no
licensing
requirements for
the rest of the
country, however
there are a
number of
legislative
requirements you
must operate to,
depending on
what state or
territory you
are operating
in. Finance and
mortgage broking
is currently in
the process of
being nationally
regulated. The
proposal will
require brokers
to register as a
broker and
complete
Certificate IV
in Financial
Services
(Finance
Mortgage
Broking) FNS
40804.
How Do I Get Started?
Conduct
Research
Read as much as
you can about
mortgages,
sales, and
finance. There
are numerous
publications
such as Your
Mortgage
Magazine and
Mortgage
Professional
Australia, and
Australian
Broker that are
available from
most newsagents
or via
subscription.
Some other tips
include:
- Speak with other mortgage brokers to find out how they work and who they operate through. You can look in the yellow pages under Finance, Mortgage Finance, and Mortgage Brokers to get you started.
- 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.
Get Qualified
- You will need to achieve Certificate IV in Financial Services (Mortgage -Finance) FNS 40804.
- 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 and industry body. 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.
- If you are new to the industry, you will also have to complete a Certificate IV in Financial Services (Mortgage finance) which can be completed through us. For more information on the Cert IV, please visit the 'Course Content' page of our website.
- 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
for further information about getting started Click here to fill in the enquiry form
For details of the next course please call
1300 136 947
Click here to fill in the enquiry form
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