How much money does a finance and mortgage broker make?
Despite the doom and gloom news stories, the Australian property market will bounce back. According to Corelogic stats, residential property values are in growth territory as at the end of 2019. At the same time, it’s true that lenders are getting stricter with what they require from borrowers. Interest rates may be low, but ‘stress tests’ are higher. As a result, there’s one group of property professionals whose services are more in demand than ever: mortgage brokers.
Mortgage brokers have special skill sets that go beyond just product knowledge. Finding a good fit with a mortgage product involves getting to know clients’ circumstances; their goals, needs, risks and more. Part of the value that brokers bring to the transaction is keeping the paperwork in order and making sure it’s submitted on time, to the right standard. This requires some serious organisation and people management skills. In short, in the process of a transaction the broker builds and maintains relationships with multiple parties, including clients, lenders, and sometimes third parties (such as guarantors/co-signers).
Brokers are compensated well for the effort they put into these relationships. According to ABS stats, the average mortgage broker brings in $2,009.10 a week. That’s a fair bit more than the national average full-time income of $1,288.70 a week. Some mortgage brokers, such as senior practitioners and practice owners, make even more than this.
There are a number of different ways that mortgage brokers are compensated. Some work for lenders and are paid a salary, with a variable bonus structure. Some work for finance and mortgage broking practices (licensees), and are paid only commissions on the transactions they settle, but may also receive ‘trail’: a commission over the lifetime of the loan. In addition, the same broker may help a client many times over a liftetime. For example, they may help them find a better mortgage deal after a few years when factors such as the LVR (loan to value ratio) have changed. Other employees in the industry, such as administrators who work on client files, are usually paid a flat salary.
Speaking of others in the industry, there are a number of different pathways to (and within) the finance and mortgage broking area. For example, many brokers get their start as administrators or client service assistants. If you’re looking to break in to finance and mortgage broking, or take the next step to become a broker, a Certificate IV in Finance and Mortgage Broking is a great start. It’s a minimum compulsory qualification to be an authorised representative of a licensee, but it’s also a great way to stand out of the crowd if you’re looking for adjacent roles.
Monarch’s Certificate IV in Finance and Mortgage Broking is ideal for independent learners ready to take the next step. The flexible, 100% online delivery is a great option for learners balancing existing work commitments. Trainer Shane Watson is an industry veteran with a passion for supporting and encouraging new entrants to the profession. Check out the course page and chat to a course consultant about your study options today.
If you have any questions, book a time here and we’ll call you https://drift.me/monarchinstitute/meeting.