Is mortgage broking a good career choice?
As a mortgage broker, your role centers around assisting individuals in their pursuit of property acquisition, ensuring they secure the most suitable mortgage for their unique circumstances. Additionally, you act as the intermediary between clients and mortgage lenders, leveraging your expertise to negotiate the most advantageous deals.
Intrigued? Let’s delve deeper into the world of mortgage brokers, unraveling the ever-persistent query: “What is the earning potential for mortgage brokers per loan?” Finally, we’ll provide insights into the essential finance and mortgage broker course that equips you for success in this rewarding field.
The Role of a Mortgage Broker
Mortgage brokers specialize in securing the most favorable loans for their clients who are seeking property ownership. These qualified professionals draw upon their extensive knowledge of the mortgage industry to sift through the myriad loan products offered by over 30 Australian lenders. Their seasoned experience enables them to pinpoint the loan product that aligns best with the unique financial circumstances of each client.
Variety of Lenders in Australia
In the Australian financial landscape, various types of lenders cater to the diverse needs of borrowers:
- Banks: Traditional banks are known for offering a wide array of loan options and comprehensive services, making them the most frequently utilized lender category.
- Credit Unions and Building Societies: These financial institutions are typically member-owned and can provide competitive interest rates and, in some instances, personalized services.
- Non-bank and Specialist Lenders: Independent lending institutions have gained popularity in today’s lending environment due to their unconventional lending practices and tailored loan products.
- Private Lenders: This category comprises groups of individuals who extend loans, often utilized when traditional lenders are not a viable option for clients.
As a mortgage broker, your primary responsibility involves evaluating the offerings of all these lenders and presenting your clients with options that best suit their financial scenarios.
Compensation for Mortgage Brokers
The good news for prospective home buyers is that they are generally not responsible for paying the mortgage broker’s fee directly. Instead, mortgage brokers receive commissions from the bank or financial institution that provides the home loan. The compensation structure for mortgage brokers includes:
- Upfront Commission: This is a commission paid by the lender once the loan has been settled. The upfront commission typically ranges from 0.5% to 0.7% of the loan value, plus GST. For instance, if the home loan’s commission rate is 0.7%, a mortgage broker’s commission for a $1,000,000 loan would amount to $7,000 plus GST.
- Trail Commission: These are smaller, ongoing payments, usually between 0.165% to 0.275% of the loan value. Trail commissions are calculated as a percentage of the mortgage principal throughout the life of the loan. While the Royal Banking Commission in 2017 recommended discontinuing trail commissions, they are still part of the compensation structure for mortgage brokers as of now.
So, is a career in mortgage broking lucrative? A key factor to consider is the earning potential per loan. As demonstrated, mortgage broking can indeed be a financially rewarding profession, especially if you build a solid clientele base and maintain an excellent reputation.
Becoming a Mortgage Broker
The fundamental education requirement for becoming a mortgage broker is completing a Certificate IV in Finance and Mortgage Broking. REAA’s Certificate IV in Finance and Mortgage Broking course offers an ideal foundation for launching a successful career in the realm of home loan finance. REAA is a Registered Training Organization (RTO 32426), ensuring that its finance and mortgage broker course adheres to ASQA standards, industry requirements, and best practices. This course equips you with a comprehensive understanding of credit applications and loan processing procedures, while also imparting knowledge about the relevant legislation to ensure your work complies with legal requirements.
The Certificate IV in Finance and Mortgage Broking (FNS40821) curriculum encompasses seven core units and five elective units, totaling 12 study units.
Core Units:
- FNSFMB412 – Identify client needs and present broking options
- FNSINC412 – Apply and maintain knowledge of financial products and services
- BSBPEF501 – Manage personal and professional development
- FNSCUS511 – Develop and maintain professional relationships in the financial services industry
- FNSINC411 – Conduct work according to professional practices in the financial services industry
- FNSFMK515 – Comply with financial services regulation and industry codes of practice
- FNSFMB411 – Prepare loan applications on behalf of clients
In addition to the core units, REAA offers elective units that encompass practical topics essential for your career in mortgage broking:
- BSBTEC301 – Design and produce business documents
- FNSASIC311 – Establish client relationship and analyze needs
- BSBOPS304 – Deliver and monitor a service to customers
- BSBPEF402 – Develop personal work priorities
- FNSSAM421 – Provide information on financial products and services to clients
After successfully earning your Certificate IV in Finance and Mortgage Broking, you can proceed to become an authorized representative through an aggregator holding an Australian Credit License, marking the initiation of your promising career.
How to Get Started
REAA’s Finance and Mortgage Broker course does not have stringent formal education prerequisites for registration. However, you must complete a basic English language, literacy, and numeracy quiz before commencing your study program. Given that this is primarily an online course, a computer with reliable internet access is essential. You can work through the course materials at your own pace, offering the flexibility to adapt your learning to your personal schedule.
The Fast Track
For those looking to accelerate their progress through the finance and mortgage broker course, REAA’s live one-to-one role play sessions offer a remarkable advantage. In these workshops, you’ll learn from industry professionals with extensive hands-on experience, providing you with valuable insights and practical skills. The Certificate IV in Finance and Mortgage Broking course can typically be completed in about two to three days in REAA’s workshop setting. Should you aim to earn a Diploma in Finance and Mortgage Broking Management, you can typically complete it in around four days. The mix of theory, industry case studies, and hands-on experience you gain in these workshops gives you a competitive edge both when seeking your first job and throughout your career.
REAA for REAL Difference
At REAA, your success is their measure of success. As a graduate, you’re not merely a certificate holder but a member of the REAA community. This means that you’re continuously supported, and your milestones and accomplishments are celebrated. With REAA, you have access to their renowned support network beyond regular hours throughout your course.
Key features of studying with REAA include:
- Personalised online tutor support during your course.
- Timely assessment feedback, typically within two weeks, or expedited within a single business day for urgent requests.
- A flat fee structure with no hidden charges or additional costs.
- Convenient digital delivery of your certificate of attainment and transcripts for a streamlined application process to become an authorized representative through an aggregator.
In summary, a career in mortgage broking is not only promising but also financially rewarding. When you choose to embark on this path, you’re equipped with the knowledge and skills to assist individuals in securing the most suitable loans for their property acquisitions. REAA offers a comprehensive Certificate IV in Finance and Mortgage Broking course, providing you with the essential training required for this career. If you’re ready to take the first step toward a successful career as a mortgage broker, the information provided here has you well-prepared.