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 jobs
average 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.
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: