How to become a mortgage broker

So, you want to become a mortgage broker. Before you can start, there are some requirements you will need to meet. Here we provide information on how to start your career as a mortgage broker including mortgage broker training requirements, courses available and ASIC requirements.

Mortgage broker training and courses

Before you can operate as a mortgage broker in Australia, you will need to meet certain educational requirements. At the time of writing the requirements were that you need to complete Certificate IV in Financial Services (Finance/mortgage broking). You can complete this course through any accredited course provider. At the time of writing modules in the Certificate IV in Financial Services (Finance/mortgage broking) include:

• Operation in financial markets
• The regulatory framework
• The Australian economic environment
• Understanding loan products
• Processing loan applications
• Effective business management for mortgage professionals.

Western Australian mortgage brokers will need to complete the Finance broking course instead of the Certificate IV in Financial Services (Finance/mortgage broking).

There may also be other training and educational requirements for mortgage brokers wishing to join a professional association. For example, mortgage brokers joining the Mortgage Industry Association of Australia (MIAA) will need to meet certain educational requirements. You can find out more at www.miaa.com.au

Some home lenders will require mortgage brokers to become a member of a professional body such as the MIAA before being able to originate home loans offered by that particular lender.

ASIC requirements for mortgage brokers

While mortgage brokers selling home loans are not usually required to be licensed as providers of financial advice, some activities performed by mortgage brokers may require licensing by ASIC. Some of these activities may include, but are not limited to:

• Dealing in mortgage offset accounts
• Operating or dealing in general insurance products, and
• Operating, advising or dealing in managed investment schemes.

ASIC is also responsible for the consumer protection of mortgage broker customers. At the time of writing, ASIC has the power to impose penalties on mortgage brokers in Australia.

Mortgage broker careers

If you are interested in a career as a mortgage broker, speak to other mortgage brokers and get a feel for the industry. Visit the MIAA website for more information and also visit the ASIC website for more detailed information on requirements. When you are qualified as a mortgage broker, you may want to start with one of the larger mortgage broking businesses. This way, you will be able to gain experience in and sell home loan products from a wider range of home loan providers. If you wish to go out on your own from the start, you may need to join an aggregator service as some lenders will have minimum monthly sales requirements in order to gain access to their home loan products. By joining an aggregator service, you will have a much wider choice of home loan products.

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