Do you enjoy working with people? Do you like helping others to achieve goals? Do you have a head for figures? If you answered ‘yes’ to these three questions, then becoming a mortgage broker may be the occupation for you.
Becoming a mortgage broker enables you to:
- Earn an excellent income.
- Balance work with your lifestyle.
- Work independently.
- Be your own boss.
- Inject your personality into your work.
- Help everyday Australians achieve homeownership.
- Develop your skills professionally.
So, what exactly does a mortgage broker do?
Well, simply put, a broker is a liaison between a borrower and a lender. To recommend financial products, a mortgage broker must first assess a borrower’s financial situation. Typically, a broker does this by delving into a borrower’s history so they can help to resolve underlying problems and can also recommend loan products that suit the borrower’s circumstances.
The Pros and Cons of Becoming a Mortgage Broker
There are many reasons why becoming a mortgage broker may suit you. But, with the good comes the bad. So, to help you understand some of the difficulties you may encounter, we’ve described the most commonly found pros and cons of becoming a mortgage broker.
|Flexible work hours.||You’ll need to work hard to get established.|
|Independence allows you to be the boss.||Working with banks can lead to frustration.|
|Continually upgrading your skills will lead to you becoming an industry expert.||There is a great deal of compliance and legislation that you’ll need to know.|
|You’ll constantly be thinking and dealing with figures.||Dealing with significant amounts means you’ll have to be on the ball always.|
|Combining your sales and analytical skills will allow you to be successful.||The skills needed to be a broker sometimes take years to master.|
Becoming a mortgage broker is rewarding, but it takes effort. If you think that you’ll be earning millions in no time at all, then think again. The average salary for a broker hovers around $79,000 annually. Of course, you can earn a great deal more, or even less. As the saying goes, “You get out what you put in.”
So, if you’re looking for an easy ride, then this may not be the occupation for you. However, if you’re willing to work hard, apply yourself to continually upgrade your skills, and want to improve your earning capacity, then becoming a broker could be for you.
How Do I Know Becoming a Mortgage Broker Is for Me?
There are several tell-tale signs that you may be suited to becoming a mortgage broker. Firstly, you love to help and assist others and you revel at the opportunity to analyse a situation – you methodically examine, dissect and then interpret anything you come across.
Other tell-tale signs becoming a mortgage broker is ideal for you include:
- You learn fast – There’s a lot of study involved when you decide to become a mortgage broker. So, you need to be able to retain information quickly.
- You’re well organised – As the boss, you’ll need to set your schedule and be able to stick to this without letting your clients down. Being well organised will keep you on task and also help you to meet and exceed client expectations.
- Mathematics is a strong point – Having good arithmetic skills is a must. If you need to brush up on these skills, then consider taking some short courses to refresh your memory.
- You don’t have a criminal history – For you to receive a license and ASIC certification, you cannot have a criminal background. However, minor incidences are not usually an issue.
- You have a sound credit history – Once again minor issues may be overlooked. But, if you have a low credit score due to owing monies, then you may not be able to become a broker.
- You are a good listener – Communicating and negotiating well with others is another must, as is the desire to help others solve their problems. It’s also an added bonus if you possess sound judgement and common sense.
Being a Self-Employed or a PAYG Mortgage Broker
When you become a broker, you can elect to be a PAYG employee or a self-employed sole trader. To decide which is for you consider if you’d prefer the job security of working for a mortgage brokerage or whether you’d like the opportunity to increase your income without restrictions.
Working for a brokerage means you don’t have to worry about managing the upfront and ongoing costs that come with being self-employed. Plus, you’ll typically earn a retainer, which means you don’t have to rely on generating an income yourself.
How to Get Started as a Mortgage Broker
To get started as a broker you’ll need to:
- Complete a course, as well as training.
- Carry out a credit and police history check.
- Apply for External Dispute Resolution (EDR) membership.
- Obtain Professional Indemnity Insurance (PI Insurance).
- Join an industry association.
- Provide proof of identity.
- Organise your Australian Business Number (ABN).
- Sign a sub-origination agreement.
- Obtain a credit representative number or credit license.
- Choose an aggregator.
- Get a mentor.
Want to find out more about becoming a mortgage broker with eChoice? With over 25 lenders on our panel, superior CRM, client retention and opportunity development programs, we are a partner for growth and business building.
Make eChoice your aggregator of choice and maximise your industry potential.