It’s 2024, and securing personal or business finance is harder than it’s been for a long time. Stubborn inflation and uncertain economic conditions around the world are making lenders a lot more conservative. And that doesn’t help small businesses, families and others who need a boost from financing to establish themselves and get ahead.
If you’ve been watching this situation and wondering how you can make an impact (and make a career out of it), then finance broking could be your next career path. This role is all about connecting people with the right finance products for their unique needs and circumstances. Brokers walk their clients through the process from exploring options to securing the finance and planning for sustainable repayments. It can be a lot of work, but it’s well rewarded. In Australia:
- There are nearly 20,000 finance brokers currently working all around the country
- This number is increasing by about 5.2% to 14.5% per year – so there’s plenty of growth and opportunity
- The average finance broker makes about $90,000 to $110,000 annual salary, plus other payments and bonuses taking earnings up to around $130,000 – $140,000.
In this career guide, we’ll look at what being a finance broker is really like. You’ll get to see what relevant skills and experience you’ve already got, whether finance broking is a good fit for you, and how to get qualified.
What finance brokers actually do
A professional finance broker in Australia, also known as a mortgage or credit broker, plays a critical role in assisting clients with obtaining finance for various purposes. Here are the main tasks, duties, and responsibilities associated with this role.
Client consultation:
- Assessing needs: finance brokers begin by understanding their clients’ financial needs, objectives, and current financial situation.
- Providing information: they inform clients about the different types of available loans, terms, conditions, and the borrowing process.
Loan research and recommendation:
- Product research: brokers research a wide range of loan products from various lenders to find the most suitable options.
- Customised recommendations: based on their research, they recommend loan products that best match the client’s needs and financial capabilities.
Application process:
- Documentation: they assist clients in preparing and compiling all necessary documentation required for loan applications.
- Application submission: brokers submit the loan applications on behalf of their clients to lenders.
Negotiation and liaison:
- Lender liaison: they act as an intermediary between the client and the lender, facilitating smooth communication and negotiation.
- Problem solving: brokers address and resolve any issues that arise during the loan application process.
Compliance and regulation:
- Legal compliance: finance brokers ensure that all transactions comply with relevant Australian laws and regulations, such as the National Consumer Credit Protection Act (NCCP).
- Ethical standards: they adhere to the ethical standards set by industry bodies like the finance brokers association of Australia (FBAA) and the Mortgage & Finance Association of Australia (MFAA).
Client education and support:
- Financial education: they educate clients on financial terms, repayment structures, and potential risks.
- Post-settlement support: brokers provide ongoing support to clients, helping with future financial decisions, loan refinancing, and adjustments.
Career-building and marketing:
- Professional development: brokers keep up to date with the latest financial products, trends, and regulatory changes through continuous education and professional development courses.
- Building relationships: a significant part of a broker’s duties includes building and maintaining relationships with clients, lenders, and other stakeholders.
- Marketing services: they also engage in marketing activities to attract new clients, which may include hosting seminars, writing blogs, or networking events.
A day in the life of a finance broker
Wondering how all those tasks and responsibilities play out in the day-to-day life of a finance broker? Here’s an example of a daily schedule for a finance broker in a busy practice here in Australia.
Morning
Start of day check-in:
- Review and prioritise the day’s tasks.
- Check emails and voicemails for any urgent client or lender communications.
Client meetings:
- First meeting: a young couple looking to buy their first home. Discuss their budget, explain mortgage options, and guide them on required documents.
- Second meeting: a small business owner seeking a business loan to expand operations. Review business plans and discuss various commercial loan products.
- Application processing: Submit a loan application for a previous client looking to refinance their mortgage to secure a better rate.
Midday
Lunch break: a networking lunch with a real estate agent to discuss potential collaborations and client referrals.
Administration:
- Update client records and progress notes in the CRM system.
- Follow up on pending applications with lenders to check on approval statuses.
Afternoon
More client consultations:
- Third meeting: an investor interested in buying multiple properties. Evaluate investment loan options and discuss portfolio strategies.
- Fourth meeting: a retiree looking into reverse mortgages. Provide detailed explanations about how reverse mortgages work and their implications.
Liaison and negotiation:
- Negotiate with a lender on behalf of a client to remove some of the processing fees on a large commercial loan.
- Address and solve specific issues raised by clients or lenders during the application process.
Late afternoon
Documentation and compliance:
- Ensure all client interactions and advice provided are documented for compliance with the National Consumer Credit Protection Act.
- Review new regulations or updates in the finance sector that might affect clients.
End of day review and planning:
- Summarise the day’s achievements and set up goals for the next day.
- Organise and prepare for the next day’s meetings and tasks.
Evening
Professional development:
- Participate in an online webinar focusing on the latest trends in mortgage lending.
- Read industry publications and updates to stay informed on market conditions and financial products.
Client follow-up: Send follow-up emails to clients met during the day, providing additional information or documents as promised.
As you can see, there’s plenty of variety in the types of work you end up doing day to day. Let’s have a look at the skills you need to succeed in these daily responsibilities.
Skills, experience and technology
There’s a wide range of skills, experience and technology proficiency that go into becoming a successful broker. You may find that you’ve got some of these already – a great head start to a career in finance broking. Here’s a brief overview:
Essential skills
- Deep understanding of financial markets, loan products, and banking regulations.
- Ability to analyse financial data and interpret economic trends to provide sound advice.
- Excellent verbal and written communication skills for explaining complex financial concepts in a clear and concise manner.
- Strong negotiation skills to secure the best terms for clients.
- Empathy and the ability to build trust with diverse client demographics.
- Skill in managing client expectations and providing tailored solutions.
- Capacity to address and resolve unexpected issues during the loan application process.
- Innovative thinking to overcome challenges in loan procurement for clients with unique needs.
- Meticulousness in handling documentation, compliance, and application processes.
Relevant experience
- Experience in banking, finance, or real estate, which provides a practical understanding of the market and client needs.
- Knowledge of regulatory requirements, such as the National Consumer Credit Protection Act (NCCP).
- Experience in managing client portfolios, understanding client needs, and maintaining long-term client relationships.
- Background in sales or marketing can be beneficial, emphasising client acquisition and business growth strategies.
Technology
- Proficiency in using industry-standard loan processing systems, which help in managing applications, documentation, and compliance tasks.
- Experience with CRM software to track client interactions, manage appointments, and maintain client data.
- Familiarity with software for financial analysis and projections that support informed advice and decision-making.
- Competence in using various digital communication tools for meetings, presentations, and document sharing, especially important in post-COVID remote interaction scenarios.
Continual learning and professional development are also crucial. Finance brokers must stay updated with the latest financial products, legislative changes, and technological advancements to serve their clients effectively.
Finance broker-related courses
Enrolling in a course is just of the steps you can take towards becoming a finance broker – but it’s the most important one. The right training and education will set you up for life, by giving you not just the background knowledge you need, but also the practical skills and confidence to learn on the go once you start working. And the good news is, you don’t need a whole uni degree to succeed in this field.
If you’re looking for a practical, efficient way to kick start your career, then the Certificate IV in Finance and Mortgage Broking could be for you. It covers the basics, from professional conduct and ethics in the finance sector, to the features and benefits of different finance products, and how to identify the right fit for a client.
For those that already have some of those relevant skills above, the Diploma of Finance and Mortgage Broking Management steps it up a notch. This nationally-recognised qualification incorporates more advanced management and strategy topics such as complex loan structuring and business risk management.
Monarch’s finance broking courses are designed to be completely flexible, perfect for fitting around your existing work and family commitments. Our finance and mortgage broking trainers are available when you need a little extra support to work through the learning and assessments. The admin team are on hand to help you out with any technical issues and queries. There’s an online community of your fellow finance and mortgage students you can reach out to any time you need to chat with others on the same learning journey. You’ll also become an accredited member of the national professional association, giving you access to real professional resources and networking opportunities. Simply put, it’s the best way to study when you want plenty of flexibility, but also support and connection when you need it.
Still have questions? Chat to one of our friendly Course Consultants today.
Sources:
Mortgage & Finance Association of Australia, Data Insight, 2023
Seek Industry Insights, 2024
Josb and Skills Australia, 2024
Reviewed by Shane Watson
