what is a mortgage broker?
As a mortgage broker, you simplify getting a mortgage loan for businesses or individuals. You connect mortgage lenders with borrowers to establish a relationship. Mortgage brokers educate themselves on the borrower's financial standing and help them find the ideal lender with affordable interest rates for their budget.
You assist with mortgage applications by collecting the relevant documents from the borrower and passing them along to the lender for processing. With the information you collect from the borrower, you can estimate the amount they qualify for and submit the financing applications for approval.
Since you act as a liaison, you receive an origination fee once the funds are loaned to the borrower. The lender or borrower pays the origination fee, depending on the terms of the contract.
what does a mortgage broker do?
Your job as a mortgage broker is to save borrowers' time and effort in searching for a lender. You have the necessary information about repayment terms, administrative fees and other costs in the contract. As a mortgage broker, you are well acquainted with trusted lenders and can obtain good rates for borrowers. Most business finance providers prefer borrowers with brokers.
mortgage broker jobsaverage salary of a mortgage broker
The median salary of a mortgage broker is $73,000 per year. In an entry-level position, a mortgage broker earns a remuneration package of $65,000 annually. Experienced mortgage brokers take home over $80,000 per year. Some employers pay commissions to mortgage brokers for successful loans.
how to increase your salary as a mortgage broker
A mortgage broker's remuneration package depends on education and experience. You perform simple tasks as a trainee mortgage broker due to your minimal experience. Your earnings will reflect your lower transferable skills. However, your salary increases as you acquire skills and experience.
Your educational qualifications also influence your salary expectations. When you have the basic VET training, your earnings are lower than someone with a diploma. You also earn more when you are certified than when you are still a trainee mortgage broker.
Your location may also influence your remuneration package. When you work in metro areas, you are likely to earn more due to the high demand for mortgage brokers. In smaller towns, the demand for mortgage brokers is lower, reducing your earning potential.
Want to know what you will earn as a mortgage broker? Check out what you are worth with our salary checker.
types of mortgage brokers
Some of the types of mortgage brokers include:
- tied mortgage brokers: as a tied mortgage broker, you work for a single lender. That means you work for a bank or building society that provides mortgage financing. Your job is to negotiate the terms on behalf of borrowers and speed up the mortgage application process. Sometimes, you also recommend borrowers to a limited list of lenders provided by your employer.
- independent mortgage brokers: as an independent mortgage broker, you serve the entire financial market. You are not tied to any building society or financial institution. That means you provide a range of lenders for borrowers and research the market for the best interest rates and favourable terms.
working as a mortgage broker
A mortgage broker is a go-between for lenders and borrowers. Read on for details on the role's daily tasks, work schedule and career outlook.
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duties and responsibilities
Some of the tasks of a mortgage broker include:
- meeting with lenders or borrowers: as a mortgage broker, you establish professional relationships with lenders. You meet with loan officers in financial institutions to get updated information on the latest interest rates and changes to terms and conditions. You also develop relationships with borrowers over the phone or by meeting in person. When meeting borrowers for the first time, it is important to explain the type of broker you are.
- explaining mortgage options to clients: as a mortgage broker, you provide advice on financing options by assessing the client's financial situation and making a recommendation. Providing objective advice on what the client can or cannot afford is crucial.
- gathering necessary documents for the mortgage application: you assist the borrower in securing the financing they require by helping them with the application process. The borrower should provide their credit history documents, employment verification and bank statements to commence the application process.
- comparing lender fees: most borrowers don't understand lenders' mortgage fees. It is your job to explain lender fees and ensure the borrower doesn't incur hidden charges. If the client hasn't settled on a lender, you assist them in comparing mortgage interest rates and costs to help them decide.
- providing general advice on home buying: as a mortgage broker, you help your clients with the buying process. For instance, you complete the closing paperwork with the lender and liaise with the estate agent and title owner to complete the purchase process.
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work environment
As a mortgage broker, you work in a fast-paced office environment in a bank, insurance company or building society. While most brokers work in an office setting, some also work in a remote location since they can explain the mortgage application process via phone calls. Mortgage brokers rarely travel unless they are meeting clients outside the office.
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who are your colleagues?
Depending on your employer, your colleagues might include lending managers, finance brokers and lending specialists. You might also be working in close proximity to loan officers and banking managers, as well as other specialists that could include, but not be limited to, accountants, financial planners, conveyancing clerks, claims officers and lending officers.
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work schedule
Mortgage brokers' work schedules are typically irregular, but some work traditional office hours. As a mortgage broker, you work up to 38 hours weekly in a full-time position. Some mortgage brokers also work nights and weekends to meet clients or lenders. When a client has a timeline for acquiring financing, you work extra hours to speed up the mortgage approval process.
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job outlook
As a mortgage broker, you assist various clients in securing their investments. Hence, it is important to stay updated on the trends in the property and finance industries to provide the best advice. Mortgage brokers progress to managerial roles or become consultants in the industry after years of experience. As a mortgage broker, you may become a bank's financial adviser or credit manager. Some mortgage brokers become self-employed after gaining extensive experience in the field.
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advantages of finding a mortgage broker job through randstad
Finding your mortgage broker job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as a mortgage broker is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too.
education and skills
Some of the educational qualifications for being a mortgage broker in Australia include:
- educational qualifications: to become a mortgage broker, complete an approved qualification like a Certificate IV in finance and mortgage broking. You can also pursue a diploma in finance and mortgage broking management. While a diploma is not a requirement for licensing, some employers prefer diploma holders. When you complete the educational qualifications, apply for an Australian Credit Licence (ACL) through the Australian Securities and Investments Commission (ASIC).
- work experience: you require extensive work experience to work as a mortgage broker. The best way to gain relevant industry experience is to join a professional association such as the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). The association will connect you to a practicing mortgage broker for a two-year mentorship programme.
skills and competencies
Working as a mortgage broker requires financial knowledge and technical skills. Some of the skills and competencies required include:
- customer service skills: as a mortgage broker, you spend most of your time maintaining relationships with borrowers and lenders. Hence, good customer service skills are vital in the role. When explaining complicated legal and financial concepts, it is important to be patient and a good listener. Customer service skills help you make borrowers feel comfortable throughout the mortgage application.
- critical thinking skills: it is crucial to stay updated with the current mortgage and housing trends. Gathering statistics and information related to lending options ensures you provide the best advice to borrowers. Critical thinking skills are crucial in choosing the most viable options for clients.
- communication skills: as a mortgage broker, you require great written and verbal communication skills to handle the mortgage application process. Good communication skills help you explain the mortgage rates to customers and collaborate with other professionals in the industry to ensure the process progresses smoothly.
- negotiation skills: as a mortgage broker, you act as the liaison between the lender and borrower. That means you strive to achieve the best outcome for both parties. Negotiation skills help you get the best mortgage interest rates and repayment terms for the borrower.
FAQs about working as a mortgage broker
Here are the most asked questions about working as a mortgage broker:
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what are mortgage brokers' responsibilities?
As a mortgage broker, you are a licensed financial adviser. Your job is to act as an intermediary between homebuyers and lenders or banks. You determine the borrowing capacity of your clients and analyse their financial situation. You also help them look for a suitable home loan and assist with the application process.
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how do I become a mortgage broker?
You require educational qualifications to work as a mortgage broker. Complete a Certificate IV or a diploma in finance and mortgage broking management. You also require a license and work experience to practice as a mortgage broker in Australia.
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what are the qualities of a mortgage broker?
As a mortgage broker, your job involves liaising with clients and negotiating loan offers. Hence, you require good negotiation and communication skills. Negotiation skills help you secure the best deals for your clients. Communication skills help you communicate financial terms in simple language that the clients can understand.
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how much do australian mortgage brokers make?
Mortgage brokers in Australia earn a salary and commission for successfully closing deals. The average salary is $73,000 annually, but entry-level workers start at $65,000 yearly. Experienced mortgage brokers can earn over $80,000 per year. The remuneration package depends on your educational qualifications, location and competencies.
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how do I apply for a mortgage broker vacancy?
Applying for a mortgage broker job is easy: create a Randstad profile and search our mortgage broker job offers. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here.
