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All Articles / Finance and Mortgage Broking

What is a Mortgage Broker?

A mortgage broker is a financial intermediary who works with both mortgage borrowers and lenders. Their role is to connect the parties together, helping people looking for a loan to find the most suitable choice for their financial situation.

Many people looking to get a loan for a property to live or invest in use mortgage brokers to save themselves time and effort going through the home loan application process and save themselves the time it would take to research multiple banks. By using a mortgage broker, borrowers can also often save money when it comes to their home loan.

Mortgage brokers earn a commission once they have closed the loan for their borrower. The commission they earn is from either the lender, the borrower or even both parties. Commissions earned by mortgage brokers depend on the size of the loan.

Being a mortgage broker allows you the choice to work as an employee within a brokerage firm, or independently.

What does a mortgage broker do?

Mortgage brokers are required to have a strong knowledge and insight in the housing market. They determine who the best lenders are and where to find the best home loans across Australia.

People choose to go to a mortgage broker because they will hunt the home loan market to find them the best home loan for their specific financial situation. By using a mortgage broker, borrowers often save themselves lots of time from filling out forms.

Mortgage brokers advise borrowers on everything they need to know when taking out a loan and can often share knowledge about the complete buying process. They are also there to inform the borrowers of any grants they may qualify for.

As part of this, mortgage brokers also collect documents from borrowers to pass on to lenders to help in the approval process.

Working as a mortgage broker, you must always act with the best interest of borrowers and have a duty of care in your every action. So you have to be able to explain and give valid reasons for any mortgage recommendation you give.

This is because in your role, mortgage brokers also spend time building strong professional relationships with lenders. Which is why you must be careful not to take any biased action toward lenders, and always put the borrower’s best interest first.

Once a borrower has found a house they want to buy, the mortgage broker will organise home valuations, building reports and insurance.

What makes mortgage brokers valuable?

Mortgage brokers are skilled and knowledgeable professionals who know the ins and outs of the entire home loan process. They guide borrowers and answer any of their questions regarding their home loan.

Being there to help borrowers navigate the home loan process is incredibly valuable for people who need assistance when buying property. Without having a mortgage broker, some borrowers could easily feel overwhelmed with the process.

Mortgage brokers can find out the best offers from every lender, saving borrowers time from visiting banks and booking individual appointments. They also help people to assess their overall finances and make suggestions as to what the best home loan may be.

Who uses mortgage brokers?

Borrowers who use mortgage brokers are made up of mostly first home buyers. But there are many other situations people could find themselves in and needing the expert advice of a mortgage broker.

Mortgage brokers often find themselves working with people who are:

  • Looking to make a property investment
  • Needing a home loan for new build construction loans
  • Wanting to refinance and re-do their existing mortgage
  • Self-employed
  • Australian citizens but are currently living overseas

Why become a mortgage broker?

If you’re considering a career in mortgage broking, you may soon find out this could be the career the path you’ve been looking for. Pursuing a career in mortgage broking has its many benefits.

No degree, no problem.
In Australia, studying to become a mortgage broker won’t necessarily mean raking up an exorbitant amount on your student loan. In fact, you can often establish your career within just a couple of years.

Although you don’t necessarily need a degree to become a mortgage broker, you will need to complete your Certificate IV in Finance and Mortgage Broking (FNS40815). At Monarch, we offer this course online so you can fit your study around your work and family life. The course can take up to 18 months and you can start whenever you’re ready.

Fulfilling career path
Working as a mortgage broker you will discover how rewarding this career can be. Your job is to help other people achieve their life-long dream of owning their own home or business.

For many people, the home loan application process can be an overwhelming and puzzling experience. As a mortgage broker it’s up to you to help your clients navigate the process and feel at ease with their situation. To do this you will need to find them the best loan for their financial situation.

Being the person to help people through a daunting experience and make their dream happen can be extremely fulfilling. Mortgage broking is a career path where if you’re good at it, you can have a rewarding and satisfying career.

Job diversity
A career in mortgage broking will mean working with a variety of lenders, clients and circumstances. Every client you work with will be different, meaning you’ll need to be well equipped for working across a range of situations and determining the best solutions for each unique person.

As part of your role, you’ll need to provide expert knowledge around residential property to support clients needing residential property loans. But you’ll also need to know all about commercial property and loans too, because mortgage brokers also assist clients in purchasing commercial real estate.

Your clients can need your help with anything from offices and retails stores to industrial workshops and warehouse space.

Having this type of variety means no two days at work will be the same. You will constantly be learning about the market and finding new and improved ways to help your clients. This type of job diversity will help with your productivity levels and motivation.

One great benefit of becoming a mortgage broker is the flexibility it allows you to have around being self-employed or working as an employee for a brokerage firm. There are many advantages to both these options. You may find that at different stages of your life, different options may suit you more.

Working for yourself means you’ll have the freedom to manage your hours and income. This can work well for young parents or someone who wishes to eventually create their own firm. Being self-employed comes with a new level of challenges and responsibility too.

For example, you’ll need to create and maintain a client base and your business reputation. This can take some time and hard work to establish. But the harder you work, the more it will pay off.

Being an employee for a brokerage firm means the company will already have strong client relationships and you’ll have a consistent income each week, providing you with more stability.

Another benefit of working for a brokerage firm is they are likely to support you in professional development through training and education. This can help you to progress your career and will give you the tools to go out on your own if you decide to.

Each option provides its own benefits and disadvantages but having the choice between the two can be seen as a luxury.

Useful experience

If you’re considering a career in mortgage brokering and have previous experience in any of the following:

  • Sales
  • Real estate
  • Finance
  • Accounting
  • Banking
  • Management
  • Property management

Then this could be a great career move for you. The jobs listed above will have provided you with many of the key skills required to become a successful mortgage broker. If you would like to find out more about mortgage brokering, feel free to get in touch with us.

Skills required to be a mortgage broker
To become a successful mortgage broker, you’ll need a specific set of skills and knowledge. The skill set required is varied and many of the skills can be learned. These skills are:

  • Communication
  • Organisation
  • Negotiation and sales skills
  • Interpersonal skills
  • The ability to build and maintain strong stakeholder relationships
  • Computer skills including Microsoft Office and accounting software
  • The ability to interpret financial reports and statement

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

Our courses are ideal for independent learners, as 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 to a Course Consultant about your study options today on 1300 738 955.

Any questions? Ask away!