The essential skills and qualifications for mortgage broking
It can be useful to think of mortgage broking as the fuel that keeps the real estate industry moving. A mortgage broker serves as a go-between who helps property purchasers get the best possible loan for their particular financial needs.
To achieve this goal, mortgage brokers must have encyclopaedic knowledge of the mortgage products offered by financial lenders. This enables them to present a loan package that matches the needs of their home-buyer clients. The professional knowledge base they acquire also enables mortgage brokers to guide home buyers through the application process.
The future of mortgage broking in Australia
Financial services are one of Australia’s most heavily regulated industries. As such, government legislative action has a significant impact on how mortgage broking operates. The 2017–19 Royal Commission into Misconduct in the Banking, Superannuation and Financial Service Industry led to wide-ranging legislative reforms designed to increase transparency and reduce the potential for fraud.
Another major change factor in mortgage broking practice has been the evolution of technology. The introduction of so-called ‘fin-tech’ (financial technology) platforms has transformed every aspect of the home-buying process, from loan application to settlement.
In future, we can expect that AI and machine-learning algorithms will assist mortgage brokers to sift through the thousands of available loans to find the best package to suit their clients’ needs. Over time this should make the entire process faster and more accurate.
Essential skills for mortgage broking
Playing a role in the future of mortgage broking in Australia will require you to develop a base of professional knowledge and certain professional skills. These include the following key skills.
The key to any human interaction is the ability to communicate clearly. This skill is especially important when it comes to complex issues like recommending the appropriate home loan. Brokers must be able to understand their clients’ financial goals and effectively convey the pros and cons of the various loan options on offer.
Analytical and critical thinking
As a mortgage broker you’ll be called on to analyse your clients’ financial situation and assess their creditworthiness. You’ll also be expected to have your finger on the pulse of broader economic trends that might influence the real estate sector in the future.
Sales and negotiation skills
As a mortgage broker, you’ll need to market your services to attract business from both clients and lenders. Strong sales skills will enable you to build enduring relationships of trust with banks, which will help you to negotiate the best possible deal that will benefit your home-purchaser clients.
Attention to detail and organisation
The task of obtaining a mortgage is a document-intensive process. From application to final agreement, the mortgage borrower will be filling out numerous forms that can be lengthy and complex. As a mortgage broker, you’ll be responsible for guiding your clients through each stage of this process. And that means your attention to detail and organisational skills will help ensure the mortgage application process goes through without a hitch.
Knowledge of finance and banking regulations
An in-depth understanding of legislation and regulations governing the mortgage and banking industry will be an essential tool in your professional toolbox as a mortgage broker. The most effective way to acquire this knowledge is through the professional education courses offered by Entry Education, a government-certified Registered Training Organisation.
Qualifications for mortgage broking
A Certificate IV in Finance and Mortgage Broking Australia constitutes the entry-level educational qualification for the mortgage broking requirement that has been established by the Australian Securities and Investments Commission (ASIC). If you have your eye on a more senior supervisory role in mortgage finance, Entry Education offers a Diploma in Finance and Mortgage Broking Management course. This Diploma will entitle you to apply to the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA) and become an accredited finance broker.
The study units that make up this course cover all the topics you’ll need for professional success as a mortgage broker. You’ll learn about the laws and regulations governing the mortgage industry, along with the financial products and services you’ll provide to your clients.
Other relevant qualifications
Diploma of Finance and Mortgage Broking Management
The Diploma of Finance and Mortgage Broking Management course (FNS50322) is an advanced qualification that will prepare you for senior supervisory roles in the mortgage industry. This course has no educational entry requirements and consists of 15 study units. If you already hold a Certificate IV in Finance and Mortgage Broking, you’ll be able to receive academic credit for seven study units so you’ll only have to complete another eight.
Advanced Diploma of Financial Planning
This advanced diploma qualification will lift your professional expertise in finance to the next level. You’ll study the financial aspects of taxation and estate planning strategy and will hone your client engagement skills to a razor-sharp edge.
Bachelor of Finance or related field
Of course, if you hold a Bachelor Degree or higher in finance or economics from university, you may already meet the entry requirements for mortgage broking. Consult ASIC Regulatory Guidance RG 206 to see whether your degree will be recognised.
Jumpstart your career with Entry Education
A career in mortgage broking can be both lucrative and fulfilling. You’ll be earning a good living by helping people finance the home of their dreams. What can be better than that?
But you’ll need the right qualifications to enter the mortgage broking industry and to succeed in it. Whether it’s a Certificate IV in Finance and Mortgage Broking Australia or another of our winning courses, this is where Entry Education comes in.
As Australia’s leading real estate education institute, Entry offers time-tested courses that set our students up for success in the financial services industry.
At Entry Education, our success as a real estate institute is measured by your success as our student. We’ve designed our entire real estate academy around supporting you through every step of your course. Studying after hours? We’ve got you covered. Entry Education is available and ready to help.
What are you waiting for? Entry trains you for the future of mortgage broking in Australia. Phone or email us today!
Entry Education – Leaders in real estate training courses & mortgage broking courses
Our real estate courses and mortgage broking courses are the best investment in your future you could make right now. The real estate and finance industries are growing and now’s the time to launch the career you’ve been dreaming about.
Our team is dedicated to helping you achieve your goals. We’re there for you on those late nights when you need support. We’re as proud of your success as you are.
Start your journey to a real estate or mortgage broking career now!