Become a Mortgage Broker in Australia
What exactly do you need to complete to be a Mortgage Broker in Australia? That's a good query and is asked a lot. The answer is a lengthy one nonetheless, as there are quite a few things you must do to qualify as the Mortgage Broker. In the past, you were a member of the MFAA, did some training with the lenders and then you could start writing loans straight away but the process has drastically changed in the last few years. Let's take a look at what you need to do for 2009/2010 to make it into the field. Before I do though you should begin to think about how you're going to make a living. There are two main paths that you can take: first, you can join an existing franchise and they'll take care of everything for you at a cost of course! Secondly you can choose to set up your own business and take home a larger part of your profits. Typically in the Mortgage Broking industry , the second option meant doing all on your own, and that was the longest and most difficult route. These days however there are companies available that will help you plan everything from the way you'll run your business, all the way to getting you trained and certified, and bonded with everyone necessary and even mentoring you for the mandatory two-year period. I'll try breaking this article into advice for both of these subjects, though I have a preference to encourage potential Mortgage Brokers to start their own business instead of purchasing a franchise. Learn to become a Mortgage broker - Step 1. Training Official Training You need to do some training before becoming a Mortgage broker Australia, the minimum course that you must complete is an IV Certificate on the field of Financial Services (Finance/Mortgage Broking) FNS40804. There are many accredited companies that provide the Certificate IV course throughout Australia offering both face-to face and correspondence-based courses offered. However , if you're just starting out , then you'll definitely need to do the course face-to-face in order to gain the most benefit from it. It is really helpful to have trainers present to answer any questions you may have and to talk about various scenarios and experiences Sometimes, the instructors are brokers themselves, which is helpful. To find this course in your region, simply conduct the Google Search to find "Certificate IV in Financial Services (Finance/Mortgage Broking) + [insert state or territory here]" i.e. "Certificate IV in Financial Services (Finance/Mortgage Broking) + Brisbane". Non-Official Training Successfully completing the Certificate IV above course will give you a piece of paper, in reality though it's not a way to learn how to become the mortgage agent. There's a lot of training to be taken to help you learn things like:
  • How do you determine the best possible loan for a customer
  • What are you really saying to customers in various situations
  • If you decide to open a retail front or work at the comfort of your home
  • How to calculate real life scenarios for potential clients
  • How to run your business efficiently to have the most time with your customers
  • Etc and so on. (it's an exhaustive list, far too many to be listed here)
A person who's proficient in these areas is obviously a necessity however, you'll also need someone whom you get along with well and who is able to teach effectively or teach you how to behave in a professional way and also one who can teach you how to earn money from the business by having done it themselves. There are two ways to receive this training that is not official If you're lucky the franchise company you are looking into will offer it as part of the franchise's training. Additionally, there are companies there who will train you effectively and do not require you to purchase franchises from them. Personally, I like the latter and if you go to the resource box at the bottom of this post there is a hyperlink to one such company. Become a Mortgage Broker - Step 2: Association Membership and Mentoring The next thing you need do is become members of the Mortgage and Finance Association of Australia (often called the MFAA). The membership of the MFAA and providing evidence of this is typically required in order for you to become associated (called "accredited") with lenders in Australia. To be a member of the MFAA requires you to be the How to Become a mortgage broker Accredited Mortgage Consultant (AMC). AMC in the event that you have less than two years experience as a Mortgage Broker in the last five years . If you're interested, you'll need to be referred to be a member by an existing MFAA member who will undertake to train you in the business. Your mentor will guide you on how to make an application for MFAA membership as well as help you to put together loan applications and help you during the client interview process etc. The MFAA requires the following to allow applicants to join the MFAA.
  • An original copy of your External Dispute Resolution (EDR) Scheme membership certificate (i.e. COSL)
  • A copy of your professional Indemnity (PI) Insurance certificate
  • The certified version of your National Criminal History Record Check
  • A certified copy of the Identification Document
  • You should have a copy of your Credit Report
  • A copy that is current Resume / Curriculum Vitae (CV)
  • Documentation of a State registration or license (WA and ACT for applicants)
Learn to be a Mortgage broker - Step 3 joining an Aggregator, and getting lender accreditation For more detail please visit:- When you've got you have your MFAA membership, your Professional Indemnity (PI) policy and your COSL membership then you need to join an aggregator. First, let me define what an aggregator is. an aggregator is an independent firm that is situated between lenders and the Mortgage Brokers. It's like a middleman, but instead of taking a bite of the pie, they expand the pie let me tell you how. At one point in Australia the Mortgage Broker would contact the lender and ask them if they would like to send some customers to you. What are you willing to give me if I "introduce" some business to you. The most common response from lenders was "it depends on how many loans you online phone case Canada bring to us". Many lenders began to implement an arrangement for tiered commissions whereby if you introduced a small amount of business to them, you'd receive a modest fee for each loan however If you introduced a substantial volume of business then you'd get paid a larger amount of commission to each loan. The result is the rise of firms known as aggregators. They would bundle together a variety of loans from brokers and submit the loans to lenders in exchange for more commissions payable. The aggregator would then receive a portion of the commission (typically 20 percent) and transfer the remainder towards Mortgage Brokers. Mortgage Broker. Today , aggregators are so intertwined with the Mortgage Broker and lender relationship that they can do much more than just provide better commission for brokers. Some offer access to a variety of products, including personal loans, and insurance. They also offer an accreditation program for lenders. mortgage broking software that allows the broker to work with professionalism, even paperwork and processing assistance and, rarely, lead generation. That's why you need to join an aggregator, there are some good aggregators and inevitably there are some really bad ones. The best one to choose depends mostly on the nature and the amount of you will require help from them. If you're a part of an existing franchise, the aggregation will be closely linked to it. However, if you choose to create your own business but have no prior experience, you'll require an aggregator who can offer an additional level of assistance. This is something you'll need some guidance on so talk to a few various people from the industry and see what they recommend. OK let's recap Let's put this all together...
  1. The first step is to determine the best way to go about it, franchise or run your own business
  2. Then you'll need to do this Certificate IV course (preferably face to face)
  3. Then you'll have to put all the requirements for your MFAA Membership
  4. If you're not yet, you'll need to find an existing broker to guide and train you.
  5. You'll have to locate an aggregator you like and join
  6. The next step is making an application to be accredited with the lenders. Your aggregator can assist you in this
Get a Mortgage Broker License - Other considerations Skills and Attributes Required Two main characteristics of a great Mortgage Broker.
  1. First, you need to get along with people,
  2. The second reason is that it's essential for a Mortgage Broker is to be proficient in numbers.
You are helping people arrange your home loans or property loan and in doing so you'll often sit in their lounges and at their dining room table and provide guidance on what they should do and what loan provider to go with. So people skills are a must, but also equally essential is being mathematically competent, working out complex numbers is an essential component of a Mortgage Brokers role , therefore being proficient in this area is crucial. Finding experts in these two areas is challenging, as people are usually good at one and not in the other. However, as long as you are skilled in one and are able to master the other you'll still be OK. Don't worry too much since these are skills, not natural abilities, so they can be taught. Make sure you find an instructor who is reliable! Always be learning While your mentor will make sure that you're on the right path in your education, it's recommended to take some additional training in running a small business. A short course in small business management , and a bit of sales training are two that will provide you with the most relevant tools to get your new company running to its full potential. Of course as it is your own business and you're self-employed, you'll have to learn how to be self-sufficient , if you aren't already. Some great books on organization and motivation can aid in getting you in the best attitude to maximize the benefits of your new venture. Conclusion That's about it I hope it will provide enough information to help you get on the right track or point you toward that direction. It's a rewarding industry Congratulations for making it to this point and I'm hoping that your journey will be an enjoyable and lucrative one.

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