There are many jobs located within the Finance sector and a growing portion of that sector is the wonderful world of mortgage brokering. A Mortgage Broker wears many hats in the office as they can be a high-level mathematician while determining a client’s debt-to-income ratio while being a Politician on another level when dealing with lenders.
Working in a mortgage brokerage takes people skills and quick math skills while being persuasive when you need to be to get a deal done. Think of the mortgage broker as the middleman between a borrower and a lender. Their job is to pair these two together as they’re constantly in search of each other, that’s business 101.
Lending Institutions are always on the lookout for new borrowers that they feel are worth the credit risk. Lenders are always amenable to interest accrued on monthly payments of the note, so there will always be a market for lenders in search of borrowers. The same can be said of borrowers as the market for loans and especially home loans are on the rise. With interest rates at their lowest in many years, the market for new home purchases is a hot one at the moment.
So, with an active market of eager participants and the added benefit of great pay in the form of commissions, how does one enter into this line of work? I know that question has crossed your mind and we’ll address this very topic below.
The first thing to suggest is to start young and focus on math and finance related courses while in High School. If you happen to be in Primary School while you’re reading this article, you’re way ahead of 99% of the populace! This math and finance focus should follow you from High School into University as you continue your higher learning education.
During your University timeline, you should take a course and complete satisfactorily, Certificate IV in Finance & Mortgage Broking. This would satisfy the prerequisite that you would need to get your ACL (Australian Credit Licence) from ASIC (Australian Securities & Investments Commission) for becoming a mortgage broker.
It is highly recommended that you complete a module of courses and earn a diploma in Finance with the focus on Mortgage Broking. This will give you the best preparation for your road ahead as a licenced mortgage broker.
Learning On The Job
There are those out there who may be reading this saying “I’m already out of school! What path can we take?!?” rest assured, you can reach this goal as well. You can take the Certificate IV course on your own time when it’s beneficial for you to do so and complete the course. You can then work in a mortgage brokerage or a bank as an ACR (Australian Credit Representative) as this is usually the “understudy” of the mortgage broker.
As an ACR, you can get your feet wet within the Finance industry working with clients and getting a feel for the industry as a whole. You can learn all the facets of being a broker while being an ACR. The brokerage may be able to pay for your courses that are needed to get your ACL. This method of learning on the job also exposes you to “real life” situations and how to deal with them versus what’s in the textbooks that may or may not work in the real world.
The topsy-turvy world of being a mortgage broker can have its ups and downs, but the rewards can be life-changing. You’re helping people get the financing they need to get the house that they want on the terms most favorable for both lender and borrower. In a small way, you’re also helping the economy by being a small cog in the wheel of commerce by helping buyers and sellers find each other. Think of the commissions paid out to you as finder’s fees because that’s what they really are when you think about it. Mortgage Brokering is an immensely rewarding trade with a barrier of entry that is not as high as you might think! You can contact ASIC to learn more about Mortgage Broking and how to get into the industry.