Do I Need Any Qualifications or Licences?

 From the 1st of July 2010 any person giving credit advice needed to be registered ASIC.

The National Consumer Credit Protection Act (NCCP) aslo requires any person providing credit advice to either hold and Australian Credit Licence (ACL) or be appointed as a credit representative.
The NCCP will also require the licensees and credit representatives to achieve a minimum educational standard of Certificate IV in Financial Services (FNS 40804).
There are also number of legislative requirements you must operate to, depending on what state or territory you are operating in.
Most lending institutions will also require you to become a member of a Mortgage Industry Body.

Getting started

1. Undertake the Education

  • Certificate IV in Finance & Mortgage Broking (Minimum Requirement)
  • Diploma in Finance & Mortgage Broking Management

2. Join a Professional Association

  • MFAA Membership Criteria
  • FBAA Membership Criteria

3. Obtain Lender Accreditation

  •  Consider joining a Aggregation / Dealer Group

What are Mortgage Aggregators / Dealer Groups?

Mortgage Aggregators, Dealer Groups and even Franchise Groups act as a wholesaler between lenders and Mortgage Brokers.

For a mortgage broker to be able to introduce loans to a lender and get paid by that lender, they would normally need to work with an aggregator. The reason for this is that most lenders have volume and compliance requirements that the average broker would be unable to sustain unless they were a large business. Even then, they might only be able to maintain the volume required to a few lenders and need to employ staff to manage their compliance and relationship with the lenders. This could greatly reduce the offering they had to their customers and increase their overheads and work load.

Today most aggregator not only offer brokers access to the lenders but would also offer support services for their members. The support offered varies between aggregators and could include services like software (loan comparison, loan lodgement, CRM management), training (lending, sales and compliance), Management support, lead generation, branding and back office support. The aggregator or franchisor may even offer there members the ability to be an authorised representative under their Australian Credit Licence (ACL) so that the broker is not required to obtain a licence themselves.

The aggregator will generally charge some sort of fee for offering these services. These fees may be in the form of a percentage of the fees received from the lenders or they may charge a fee per transaction or a flat monthly or annual fee. Some groups also charge a joining administration fee or franchise fees.

Most aggregators will also offer their members more than just lending products to offer clients that the broker would not otherwise have access to or be able to sell to their clients.

Working with an aggregator offers brokers the ability to operate there own business their way, offering a wide variety of lenders and loan products, but with the support of the aggregator.

With this assistance a Mortgage Broker is able to provide a sustainable benefit to consumers. Customers benefit from being able to compare different mortgage products available from a panel of lenders through one source (the Mortgage Broker) and subsequently receive products that match their needs and individual circumstances.

Increased competition due to Mortgage Brokers operating within the industry has been noted as a key factor in the reduction of fees and interest rates for all Australians.

If you require any further details on how to become a Mortgage Broker please fill in and submit an enquiry form and we will send you the information and instructions on how you can become acredited Finance Broker.