How to become a mortgage broker in Australia in 2024

Interested in learning how to become a mortgage broker? You’ve come to the right place.

Back in the 2020 September quarter, mortgage brokers achieved the highest market share in the sector’s history. They settled 60.1% of residential mortgages in Australia.

This accomplishment was due, in part, to record low-interest rates and government incentives. Homebuyers also turned to mortgage brokers because they were seeking sound advice and security during the COVID-19 pandemic.

COVID-19 presents ongoing challenges for us all, and Australians are seeking mortgage brokers in record numbers to seek more manageable mortgages due to hardship and to take advantage of low interest rates.

It’s easy to see why. Australians know mortgage brokers are obliged to work in their clients’ best interests and the broker’s fees are paid by the lender. So it’s good advice and guidance for free.

Like many other areas in the real estate industry, the mortgage and finance broking industry is booming. Homebuyers are embracing the opportunity to have a mortgage professional by their side as they make life-changing decisions about buying real estate.

Five-year forecast: mortgage broker industry going from strength to strength

The rate Australians are taking their mortgages out through brokers will continue to grow over the next five years, according to IBISWorld’s report ‘Mortgage Brokers in Australia industry outlook (2021–2026)’. Mortgage broking is already a $3bn market, employing 18,165 brokers across 8,098 businesses. It’s a robust industry with a dedicated clientele.

You might have heard that interest rates are predicted to rise. While this might deter property investors from buying real estate, first home buyers will continue to purchase residential real estate, and this will likely offset the drop in sales from investors.

Tempted to work in this booming industry? Keep reading and we’ll tell you how.

How to become a mortgage broker in Australia: Your guide

Becoming a mortgage broker in Australia means being registered with the relevant mortgage and finance association. Mortgage brokers are designed to be the bridge between borrowers and lenders. So, what exactly does a practicing mortgage broker do?

What exactly does a mortgage broker do?

Mortgage brokers in Australia work with multiple lenders, including banks, to secure the best mortgage for their clients. They generally work in residential and investment property mortgages, as well as refinancing current mortgages for homeowners.

Mortgage brokers don’t charge for their services because they’re paid a commission from lenders on each property mortgage they secure. This allows them to focus on their clients and ensure they’re providing the most suitable mortgage for each client’s circumstances.

What qualifications do you need to be a mortgage broker in Australia?

There are two courses available to become a mortgage broker.

1. The Certificate IV in Finance and Mortgage Broking (FNS40821) is the entry requirement to work as a mortgage broker and will qualify you to apply for membership of the Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA).
2. The Diploma of Finance and Mortgage Broking Management (FNS50322) is recommended if you want to work in more senior roles, are planning to open your own business or simply want to learn more skills. You’ll need to complete this diploma course within 12 months of completing the Certificate IV in Finance and Mortgage Broking (FNS40821) course to remain a member of Mortgage & Finance Association of Australia.

There are no formal requirements to enrol in the Certificate IV in Finance and Mortgage Broking (FNS40821). But, on a less formal note, you do need to enjoy working with people.

Mortgage brokers work closely with their clients as they make life-changing decisions about theirs and their family’s futures. Whether it’s their dream home or an investment property, mortgage brokers help clients navigate the journey to homeowner or property investor by finding the best mortgage for their needs and circumstances.

The Diploma of Finance and Mortgage Broking Management (FNS50322) is the course you complete if you already work in the industry and want to work independently or step up into a management role you also need to apply to become an authorised representative of an aggregator of your choice. Some banks and lenders will also require you to have the Diploma in order to offer their mortgage products.

When you enrol in the Diploma of Finance and Mortgage Broking Management, you can apply for a credit transfer of seven units if you completed your Certificate IV in Finance and Mortgage Broking with Entry Education. If you competed your certificate IV with another institution, contact Entry Education to discuss your options.

It’s expected that you’ll have completed your Certificate IV in Finance and Mortgage Broking if you’re enrolling in the Diploma of Finance and Mortgage Broking Management course. Although, you can apply for membership of MFAA or FBAA with either qualification.

MFAA or FBAA (Finance Broker Association of Australia) are the two national bodies for professional mortgage and finance brokers, mortgage managers, and aggregators.

What are aggregators? They’re companies or businesses that hold Australian Credit Licences’ (ACLs) and provide mortgage brokers with access to lenders, as well as a range of services that include business support, compliance advice, professional indemnity support, marketing, training, mentoring, a loan comparison platform and much more. In return, brokers pay their aggregators a monthly flat-rate fee or a percentage of the commission payments they receive from lenders.

What skills do I learn in each course?

In the Certificate IV in Finance and Mortgage Broking course you’ll learn how to develop and maintain professional relationships with colleagues and peers, and you’ll harness the necessary skills to build productive relationships with clients.

You’ll learn the skills required to work as an effective mortgage broker, including preparing complex loan applications and ensuring you always comply with the legislation that oversees your work. Importantly, you’ll learn how to look after your own personal and professional health, which are vital skills in a busy work environment.

In the Diploma of Finance and Mortgage Broking Management course, you’ll learn how to lead a team, apply theory to practical situations and develop sophisticated finance and broking skills. The diploma teaches you leadership skills so you can manage a workplace team, resolve complex mortgage and broking problems and apply your skills in a range of environments.

How long does it take to become a mortgage broker in Australia?

All Entry Education courses are self-paced and online. You have no pressure and your only deadline is your agreed end date.

Students have said that it takes up to four weeks to complete the assessments in the Certificate IV in Finance and Mortgage Broking course.

For the Diploma of Finance and Mortgage Broking Management course, students have said it takes four to six weeks to complete the assessments.

If you would like to fast track the process of becoming a mortgage broker, you can enrol in a 2-4 days workshop where our students usually get the certificate issued within a week.

Keep in mind that your mortgage broker course is the beginning of your journey. You’ll need to work in the industry and gain experience on the ground before you achieve financial success. Check out the MFAA website for guidance on a career as a broker, and to read about their advocacy for the finance and mortgage broking industry.

Is the mortgage broker course hard?

If you’re completing either of the mortgage broker courses with Entry Education, you’ll receive an unprecedented level of support. Our students have easy access to their tutors through our student portal, and support is available both in and out of office hours.

You’re also not loaded down with excess administration or unnecessary processes. At Entry Education, we let you get on with your learning. We keep it simple and straightforward.

Neither the Certificate IV in Finance and Mortgage Broking course nor the Diploma of Finance and Mortgage Broking Management course is difficult. Students reviewing the courses have talked about the extraordinary level of support they received and the accessibility of Entry Education staff.

Entry Education is an accredited provider of real estate training (RTO 41529).

Find out how much does a mortgage broker earn per loan here.

Interested in fast tracking your mortgage broking course? Enrol in one of our 2-3 days mortgage broking workshop here.

Real world case study from student

A student approached us with an interest in looking to get started in the asset finance or mortgage broking industry. We promptly directed them to our Certificate IV in Finance and Mortgage Broking (FNS40821) course, explaining that this necessary qualification would equip them with knowledge about the key aspects of a career in mortgage broking. In the interest of completing the course as soon as possible, they opted for our 5-day online face-to-face workshop which streamlined their learning. During the workshop sessions, the priority trainer access and insider insights on industry entry provided them with a valuable understanding of what to expect. Shortly after they had completed the course, they were able to secure a job with a mortgage broking service and have been growing in the industry ever since.