How to become a Finance Broker in Australia

14th August 2019

Finance and mortgage broking is a hot career choice in 2019, with excellent job prospects over the next 3-5 years. This article provides an introduction to the occupation and details pathways for entry and employment.

 

Quick facts about Finance Brokers:

  • Lower unemployment rates than other occupations
  • 20% projected growth in employment opportunities Australia-wide (2018-2023)
  • Very high percentage of finance brokers work full-time (83%)
 

What is finance broking?

Finance brokers help their clients secure loans, insurance, finance, and working capital — as well as provide advice on commodities trading and other market transactions. They often work for banks, credit companies and other lending institutions, but many finance brokers are independent agents and work for themselves. Finance and mortgage brokers attract an annual salary of $110-116K (industry average).

Finance and mortgage brokers can earn an income in a number of ways:

  • Salary paid by their employer (eg, bank, financial planning institution, finance brokerage)
  • Fees and trailing commissions paid by the lending institution (for introducing the client to the loan)
  • Service fees paid by the client (for arranging and submitting all the paperwork and securing funding)

Mortgage Brokers specialise in facilitating loans for home and investment properties.

 

Career qualifications

There are a number of qualifications that can get you started as a Finance Broker, but remember — in Australia you also need to be licensed by ASIC when you provide advice to clients about financial products, credit transactions, and loans.

  • Bachelor of Business (Financial Planning) — A high-end qualification that delivers corporate-level knowledge of accounting, business ethics, financial risk management and planning, finance law, investment planning.
  • Diploma of Finance and Mortgage Broking — Gain specialist knowledge of financial retail products, including insurances, loans, and mortgages. Learn how to present brokerage options to clients and implement complex loan configurations.
  • Certificate IV in Finance and Mortgage Broking — Entry level qualification that will teach you how to process simple loan applications and carry out credit checks. Excellent pathway to further study.
 

ASIC licensing

Finance and mortgage brokers in Australia must hold a Credit Licence issued by ASIC (Australian Securities and Investments Commission). To obtain (and hold) a credit licence you must have completed approved study, and may also need to join a professional organisation such as the Australian Financial Markets Association, Finance Brokers Association of Australia, or the Financial Services Institute of Australasia.

 

Police check

You may be required to submit a clear police check to prospective employers.

 

Personal qualities

To succeed as a finance broker you’ll need a number of key skills and personal qualities. The following are particularly important:

  • Aptitude for maths and calculations. You’ll be helping clients by developing and structuring affordable loan payments — so you must be able to accurately calculate (and present) projected interest payments, fees, and loan principal balances.
  • Helpful personality, with a customer focus. A genuine desire to help your clients is critical to your success in this employment sector.
  • Administration and writing skills. There is a lot of paperwork involved when processing loans and credit applications. These documents need to be prepared, collated, and maintained in strict compliance with Financial Services legislation and ASIC requirements. You’ll need focused attention to detail.
  SOURCES: Statistics sourced from the Australian Government website joboutlook.gov.au

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