There’s a lot to like about a career in mortgage broking. Not least of all the feeling of accomplishment when you connect a buyer with the right home loan product that will save them money. Here are three more great reasons why you should take a closer look at a career as a mortgage broker!
Money isn’t everything – but it certainly helps!
The Mortgage and Finance Association of Australia (MFAA) reports that mortgage brokers are earning $142,000 on average each year, prior to costs. Although this doesn’t include any operating costs (like administration and membership fees, staffing or rent), it’s still a staggering amount!
Mortgage brokers are paid a commission from the lender; receiving 0.3 to 0.5 percent of the total loan amount. So, on average, an Australian mortgage signed in 2017 (sitting at $374,000) would give you $1,122 from the bank when your client signs up for a home loan (at the conservative, 0.3 percent end of the scale).
Further to this upfront fee, lenders will often pay trailing commissions to brokers, at 0.1 to 0.3 percent of the balance of the loan each year. This is paid monthly, so on that first loan example from earlier, you’d receive about $58 a month from the bank as long as the client didn’t refinance or pay out the loan completely. Now, $58 a month might not sound like much, but that’s just for one loan.
The MFAA earnings report from 2016 found that brokers earn a national average of $83,000 in gross upfront commission and $60,000 in gross trail commission per year.
Flexibility and independence
Because most mortgage brokers will work in commission-only positions, you don’t have too many people to answer to when it comes to deciding what your work day looks like.
Plus, many brokers are independent. The MFAA reports that 56 percent of mortgage brokers work in offices of one or two brokers. Working for yourself is a lot of responsibility, but the benefits can be huge.
You can also get on board with one of the big franchise names in mortgage brokerage in Australia. Aussie Home Loans has over 1000 brokers on its books, with Mortgage Choice and Loan Market not far behind, with 642 and 552 brokers respectively as of 2016.
Easy to get started
Becoming a mortgage broker is a great way to enter the financial services industry without having to slog through a three-year degree.
To get started as a mortgage broker you’ll need to complete a minimum of a Certificate IV in Finance and Mortgage Broking. In this course, you’ll learn how to prepare and present loan applications, strategies on how to present broking options to clients, and managing legislative and code of practice obligations.
Mortgage brokers must hold an Australian Credit Licence under the Australian Securities and Investment Commission rules.
Lastly, mortgage brokers must be covered by professional indemnity insurance and belong to an external dispute resolution scheme.
With many Registered Training Organisations offering the Certificate IV in Finance and Mortgage Broking qualification, you could be on your way to a new career in a matter of days! See what’s on offer near you.