What does a mortgage broker do?

Mortgage brokers are financial services professionals who offer lending advice to people wanting to buy a house or property. They are also commonly referred to as “mortgage loan officers.” Mortgage brokers don’t just give people advice to people buying houses but also help them through the loan application process.

Their job is to find what banks have the best interest rate and terms when it comes to their client’s individual circumstances. Once they have conducted their research on the most current loan terms and interest rates, they present their findings to their clients.

The mortgage broker’s moral obligations lie with their clients even if they have established a strong relationship with a certain lending institution. It’s a mortgage broker’s job to have a comprehensive understanding of lending rates, credit reporting, terms and institutions and what’s required of their client to be eligible for a loan.

If you’re considering a career in mortgage, it’s important you spend time learning what will be required of you in this role. This article will cover specific information to help you gain further insight into the challenging yet satisfying role of a mortgage broker.

Two people negotiating

What tasks will you do as a mortgage broker?

Just like with most careers, mortgage brokers’ day to day tasks and responsibilities will vary depending on the business they work for and their level of experience. Mortgage brokers are known for helping people secure home loans, but also undertake many other tasks to help their clients find the best rates. Here are some of the common tasks a mortgage broker will undertake:

  • Spend time researching the lending market to find suitable options for your client
  • Give advice to your clients on the property market, the home-buying process and mortgage options available to them
  • Establish and maintain professional relationships with lenders so you can recommend them to your clients
  • Explain to your clients the loan process in Australia and inform them of any documentation they need for their application.
  • Collect all necessary documentation and review your clients credit history. Then spend time verifying their financial statements.
  • Apply for mortgage loans with lenders on behalf of your clients.
  • Assist your clients in structuring their loans, provide funding options and calculate repayment schedules.

Skills and knowledge mortgage brokers need

Mortgage brokers must acquire significant knowledge around the lending process but that’s not all they need. To be successful in their role mortgage brokers need to have the following skills:

Strong interpersonal skills

Having an outgoing and friendly personality is really important when it comes to being a mortgage broker. You must be able to communicate effectively with your clients and lenders. If you’re a naturally social person, this will make being a mortgage broker much easier as it will help you to get along with the people you’re working with, which will make your job more enjoyable overall.

Organisation

Mortgage brokering is not an easy job. You’ll need to be organised to manage and keep track of multiple finance and loan documents. Being organised will make your life easier as it will help you manage your workload better. Because you need to remember, your clients are coming to you to make their home buying and loan approval process easier.

Negotiation skills

Being a mortgage broker you will need to establish strong relationships with both lenders and borrowers. You will work as a middleman between the two and it’s your job to make sure they’re both on good terms. To do so you will need to have strong negotiation skills through the entire loan process.

The ability to work well under pressure

Being a mortgage broker can be stressful at times. Especially when clients are needing to get loans approved to buy something on time. You will often find yourself juggling multiple cases at once and trying to determine what lender will work best for each client.

Trying to manage all of this with strict deadlines can be tough. That’s why it’s important you have the ability to work well under pressure. Being able to work well under pressure will help you to succeed as a mortgage broker and could help you to advance your career sooner.

Attention to detail

Working with loan options, rates and terms, mortgage brokers need to have a strong attention to details, so they don’t miss anything. The smallest number could make the biggest difference. It’s not just numbers and fact checking they have to be conscious of but also reading the fine print on every document. Having a strong attention to detail will make it easier for you to present your client with the best loan opportunities for them.

Patience

As a mortgage broker you will need to have the patience to wait for the right lender for your client. Because you are working for your client you will need to be able to work around your client’s schedules and be understanding that it could take them some time to make a decision on what loan option will be best for them.

Mortgage brokers also have to be patient because they could receive multiple rejections from lenders for their clients and they will need to keep their clients positive.

What will you need to become a mortgage broker?

Motivation

To be a successful mortgage broker you’ll need plenty of motivation to get you through the hurdles you will face when trying to find the best loan options for your clients. In the loan application process, you will experience many rejections from lenders. Your motivation is what will help you to keep going and provide your clients with the best loan options.

Accuracy

Accuracy is something you can’t go without when working as a mortgage broker. Making sure you have read all the sums and figures correctly is vital. You must also read the fine print on documents to ensure you haven’t missed any key information.

Able to pass a criminal convictions test

To become a mortgage broker you must pass a criminal conviction test. Certain convictions can prevent you from pursuing a career in mortgage broking in Australia.

Beneficial experience to become a mortgage broker

Work in banking, finance, or accounting

A big part of mortgage broking is crunching numbers. Having experience in financial services will be a huge advantage to you as you will already have skills required for your role. This kind of experience will also help you to predetermine what lenders could be willing to offer your client. You will also have a better idea of what is required of your clients to get the loan they’re looking for.

Sales experience

Any type of sales experience will benefit you as a mortgage broker as your job is to sell your clients to lenders. Having strong sales skills will help you to be successful in your role.

Two men in a meeting together

Property management and valuation

Property management and valuation experience will help you in your career of being a mortgage broker as you will have a good understanding of what loans people can use to get the house or property they desire.

Managing others

Often mortgage brokers will have people working for them to help with administrative tasks. Being able to manage people effectively will help when working collaboratively for a mutually desired outcome.

Work environment for mortgage brokers in Australia

Mortgage brokers commonly work in brokerage companies with other mortgage professionals. While others choose to work for themselves. Having the choice to work for yourself is another great benefit of becoming a mortgage broker.

Every mortgage broker will have a different working environment depending on what their company culture is like, or how they have decided to set themselves up. Working environments will differ from person to person but they are likely to share the same work conditions.

One of the many benefits of becoming a mortgage broker in Australia is job security. Once you have completed your qualification, your chances of finding a job are high. There is a strong demand for mortgage brokers and the occupation continues to grow.

The demand for mortgage brokers is a knock-on effect from the demand for housing and the rate at which houses are being sold. And because of this, banks are now competing to give out home loans. The huge demand in the housing market has created a considerable demand for mortgage brokers. There has never been a better time to be a mortgage broker than now.

A woman at work, laughing

Benefits of becoming a mortgage broker in Australia

Mortgage brokering is a challenging but also rewarding career. Here are a few of the key benefits of pursuing a career as a mortgage broker.

  • You don’t need a degree to become a mortgage broker
  • Working with and meeting new people
  • You get to help people make their dreams come true
  • Having the option of working for yourself
  • Flexible working hours
  • Making an income from commission

If mortgage broking is something you are interested in and would like to gain a qualification to help you succeed in this career, we offer two courses.

1. Certificate IV in Finance and Mortgage Broking
2. Diploma of Finance and Mortgage Broking Management

Please don’t hesitate to get in touch. We will be happy to provide you with further information. Our courses are ideal for independent learners. The flexible, 100% online delivery is a great option if you’re balancing existing work commitments or family. Check out the course page and chat with a Course Consultant about your study options today on 1300 738 955.