Choosing a career is a significant life decision, one that will influence your earning potential, lifestyle, and professional growth. People spend one-third of their lives working, so making the right choice is critical.
If you are just starting out or considering a career change, you might be wondering, ‘Is mortgage broking a good career? How long does it take to study mortgage broking? And, how much do mortgage brokers earn?’
In this article, we’ll explore the benefits of choosing mortgage broking as your career path. We’ll share some of the personality traits that might help you excel in the field before explaining the process of becoming certified. But first, what is mortgage broking?
What is mortgage broking?
A mortgage broker helps their clients get a home loan that best meets their specific needs. They are a go-between that works with banks and lenders to negotiate terms and ensure their clients have the best possible chance of securing approval. Critically, mortgage brokers act in the best interest of their clients, taking the time to understand what they need, how much they can afford, and their short- and long-term needs.
Mortgage brokers also explain how each home loan product works and what it will cost. They might walk their clients through industry jargon, fees, and features. The broker will apply for the loan on their client’s behalf and oversee the process right through to settlement.
What are the benefits of a career in mortgage broking?
Mortgage broking is a dynamic and rewarding career that gives you the opportunity to help everyday Australians realise their property dreams. So, is mortgage broking a good career? Here are just some of the benefits that could make it a great career for you.
There’s no doubt about it. Mortgage brokers have truly rewarding careers, whether they are helping a family purchase their dream home, a professional couple enter the world of property investment, or a driven entrepreneur secure a commercial premise for their venture.
Finding a suitable loan can be daunting. There are many products available, and there’s so much more to the equation than interest rates. In addition, loan structuring can have a significant impact on a buyer’s long-term financial standing. Even if deciding on a loan was simple and straightforward, the application process is anything but. To the average buyer, it can feel almost impossible to get into the property market.
But, with a qualified and competent mortgage broker in their corner, their dreams can become a reality. Journeying alongside your clients as they chase the lifestyle they crave is hugely satisfying – and that’s exactly what mortgage brokers do day in and day out.
Is mortgage broking a good career? If you are the kind of person who yearns for a flexible work-life balance, yes, it certainly can be. As you progress through your career, you can either work for a brokerage or yourself.
Both options have advantages:
- If you work for a brokerage, you’ll have access to existing customers and enjoy the security that comes with consistent income. In addition, your brokerage might allow you to upskill or specialise in an area of interest.
- If you work for yourself, you can manage your own time. Your ability to earn is only held back by your own ambition.
The ability to choose and change between these two options makes mortgage broking an appealing career for many, particularly those who want excitement and challenge.
No two days in the office are the same for a mortgage broker. Every client is unique, and so, too, are their needs, wants, and challenges. Add to this the many different lenders and home loan solutions, and you can bet mortgage broking will be a career defined by variety.
Variety is key to long-term career satisfaction. It provides intellectual stimulation that keeps you on your toes and encourages continued learning. It also helps prevent career boredom, which can result in poor productivity and a lack of motivation.
Mortgage brokers have a positive reputation as trusted experts that make the property purchasing process as easy and stress-free as possible. The numbers back this sentiment. Between July and September 2021, brokers facilitated 66.9 per cent of all new residential home loans. This record-high number means two in three homebuyers turned to a mortgage broker for assistance.
What does that mean for your next career move? It suggests that mortgage broking is and will continue to be an in-demand service, giving you the peace of mind that comes with employment security.
Wondering how much mortgage brokers earn? Good news. Their earning potential is high because, unlike many other professionals, they typically receive two types of commission:
- The upfront commission is paid by the bank or lender when the mortgage contract is signed. Generally, this ranges between 0.65 and 0.7 per cent of the loan value, plus GST.
- The trail commission is paid annually to the mortgage broker for each year the borrower pays down their loan. This usually ranges between 0.165 and 0.275 per cent of the loan value.
So, the more loans you broker, the more trail commission you earn. Over time, you can wrack up a fair amount of trail commission, which only adds to the upfront commission you earn throughout the year.
Is mortgage broker a good career for me?
Is mortgage broking a good career for you, specifically? The benefits are undeniable, but that doesn’t mean mortgage broking is the right career for everyone. If you relate to one or more of the following sentiments and personality traits, mortgage broking might be the perfect fit.
You are sociable
At heart, mortgage broking is a people business. It’s about helping people select the best home or investment loan for their individual needs. Importantly, purchasing property – whether that be a first apartment, dream home, or investment – is often a wealth-building initiative, one that empowers everyday Aussies to improve their families’ lives now and in the future.
Mortgage brokers become the missing link connecting people and their dreams, and that’s a significant responsibility to shoulder. But, if you are a people person, someone who connects easily with others and thrives when making a difference, you will find immense satisfaction in mortgage broking.
You adapt easily to new situations
Australia’s lending landscape is constantly shifting, and so, too, is the property market. New laws and regulations can have far-reaching consequences, and the best mortgage brokers know how to navigate this change and turn a challenge into an opportunity.
If you are a person who adapts readily to new and unfamiliar situations, mortgage broking might just be the career for you. With a flexible attitude, open mind, and continuous improvement mindset, you can leverage changes to better serve your clients.
You chase after what you want
For mortgage brokers, the real financial reward comes when commission accumulates. To build that all-important commission, you need to make sales. You need to deliver a personalised service that checks all your clients’ boxes, so they’ll have no reason not to sign the dotted line. Achieving this takes drive, and if you are not someone who pursues what you want with tenacity and determination, you might not be able to maximise your mortgage broking career.
In addition, if you choose to run your own mortgage broking company or franchisee, you will need to build a customer base, manage staff, oversee marketing initiatives, and much more. If you go it alone, motivation and commitment are key to unlocking success.
You crave a career change
Mortgage broking is a fantastic option for those who crave a career change. Obtaining the right qualifications doesn’t have to be difficult or time-consuming, and much of your previous work and life experience will benefit your mortgage broking career. Interpersonal skills, good organisation, a willingness to learn, excellent communication, and an eye for detail will set you off on a road to success. If that sounds like you, then the answer to the question, ‘Is mortgage broking a good career?’ is yes.
How to study mortgage broking
Is mortgage broking a good career? Yes, for the right person, it is a rewarding career path – both personally and professionally.
To become a qualified mortgage broker in Australia, you’ll need to undertake one of the following courses:
- The Diploma in Finance and Mortgage Broking Management (FNS50322)
- The Certificate IV in Finance and Mortgage Broking (FNS40821) (which has replaced the previous Certificate IV in Finance and Mortgage Broking (FNS40820) course)
There are no formal entry requirements for either, which means you can get stuck into your study right away.
Even better, if you study with Entry Education, you can enjoy the convenience of learning at your own pace plus the security and peace of mind that comes with after-hours support. In addition, we offer a fast-track option that empowers you to become qualified over three-day virtual or face-to-face workshops.
“They definitely suited my lifestyle with [a] young family… It can take up to two years to do a diploma, you know. So, I was able to complete that in four days, which is amazing,” said student Amanda, who undertook one of our diploma workshops upgrade.
With us, you never have to stress over deadlines or pressure. We make it easy to fit study into your busy schedule without compromising the quality of your education. Kick-start your mortgage broking career today.