The short answer is yes — it is possible to become a mortgage broker if you have been previously convicted of a crime. However, there are significant limitations and regulations in place for mortgage broking registrants who have a criminal history.

Mortgage brokers work with large sums of money in their line of work and are responsible for helping clients obtain the best home loan for their needs from financial providers. It stands to reason that both clients and financial providers expect a high standard of integrity and transparency from a mortgage broker.

A history of criminal convictions can affect eligibility for becoming a mortgage broker, but this doesn’t mean that it’s impossible to go down this career path. Depending on the nature of the offence and the time that has passed since the conviction, individuals may be able to work as a mortgage broker in Australia.

Police checks for mortgage broker registration in Australia

All prospective mortgage brokers are required to undergo a police check as part of the registration process. Police checks will reveal any prior criminal convictions that registrants have, as well as the relevant details about the convictions. This system is in place to ensure that the integrity of the mortgage broking industry is upheld for the benefit and peace of mind of borrowers and lenders.

Each Australian state’s issuing authority for mortgage broking registration will review the results of the police check in detail and use it to assess the suitability of a registrant to work as a mortgage broker in the state.

There are two outcomes for a police check: Disclosable Court Outcomes (DCOs) and No Disclosable Court Outcomes (NDCOs). A DCO result will outline evidence of prior convictions and criminal offences, while an NDCO means that no relevant criminal history is disclosed in the result.

police-checks-for-mortgage-brokers

Spent convictions

Spent convictions are exceptions and may not appear on a DCO — these are prior convictions that have passed a certain amount of time without any new convictions. In most states and territories, convictions are considered spent if it has been 10 years since the offence was committed as an adult, or five years since the offence was committed as a child.

Individuals with spent convictions are generally not obliged to disclose this information when registering as a mortgage broker. However, each state or territory has their own release policy and local laws regarding the disclosure of any offences; some convictions may never be spent.

Mortgage broker registration regulations in Australia

To become a mortgage broker in Australia, individuals must apply for an Australian Credit Licence (AFSL) with the Australian Securities and Investments Commission (ASIC). Individuals with serious criminal convictions such as those related to fraud, dishonesty, or violence will be looked on more harshly and face a lower likelihood of rejection. Minor convictions, particularly those without a jail sentence may face lower scrutiny.

In addition, new mortgage brokers are often required to operate under a professional association like the Finance Brokers Association of Australia (FBAA) or the Mortgage and Finance Association of Australia (MFAA). These associations also have their own set of assessing criteria that includes criminal history checks.

As mentioned, certain types of crimes may have a greater impact on the outcome of mortgage broker registration — these include crimes of a financial nature such as fraud and embezzlement. Having a history of financial crimes will erode the trust of assessing authorities and, in some cases, may even result in permanent disqualification from the profession.

How to become a mortgage broker if you have a criminal record

While there are strict limitations for registering as a mortgage broker while having an existing criminal record, there are still steps you can take to get closer to your goal of becoming one.

Fulfilling the study requirement for a mortgage broking licence can be done even if you have a prior conviction. Obtaining the relevant qualifications for the state you are in can help you get ready for registration later on.

The FNS40821 Certificate IV in Finance and Mortgage Broking will equip you with the right skills and knowledge to work as a mortgage broker. Completing this course will provide you with 20 CPD points with the MFAA and 15 CPD points with the FBAA, which are required for the application process.

Aside from studying, you may also wish to seek legal counsel to understand how your criminal history may affect your chances of being registered. In general, the longer it has been since the conviction, the less it will affect your eligibility. Providing additional evidence to support the improvement of your character since the conviction can also help make your application more favourable. These can include evidence of consistent employment, participation in rehabilitation programs, and even character references from reputable sources.

If you want to get started in becoming a mortgage broker in Australia or have any other questions about the process, get in touch with our team at Entry Education — we are a Registered Training Organisation (RTO: 41529) approved to provide you with the qualifications and advice for starting a career in mortgage broking.

register as mortgage broker with criminal record

Published On: January 22nd, 2025 / Categories: Finance & mortgage broking /

About the Author: Michael Dewar

Michael is the co-founder and co-director of the Entry Group, and has nine years of experience in the real estate industry. Michael is a natural born entrepreneur, and has a keen understanding of the world and the importance of changing with the time. Running Entry Group in his own unique way, Michael has put a focus on the human element of business, focusing on building trust and relatability with clients.

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