8 compelling reasons you should become a mortgage broker

Embarking on your career or deciding to change jobs can be a daunting decision. This holds true even if you’re just looking to make extra income in addition to your current occupation. There are a host of factors you need to compare and contrast, such as what best suits your skills and experience, how much money you want to earn, where are your best opportunities located, and many more.

As you draft a pros and cons list to help in this decision, consider these 8 compelling reasons for becoming a mortgage broker:

1. Earning potential

While making a lot of money isn’t the be-all and end-all for everyone, average mortgage brokers still have the potential to earn a good living. According to the Mortgage and Finance Association of Australia, mortgage brokers make an average of $133,365 per year. This is well above the Australia Bureau of Statistics’s recorded national average of $82,436 over the same period.

For those ambitious individuals who want to truly excel, the commission-based work model gives them the opportunity to realise their financial goals. Trailing commissions, which are paid out each month over time as loans settle, provide a great source of passive income. Combined with the other up-front commissions and fees, you have the opportunity to truly grow your assets. You can build a real saleable asset with your compounding ongoing loan book income. For instance, the top 1,300 brokers took home more than $1 million in 2018, according to Business Insider.

2. Ease of entry

Becoming a mortgage broker doesn’t require extensive schooling or long-term experience in the mortgage or finance industry. However, it does involve learning enough about industry regulations, the loan-approval process and the ethical considerations to get the proper certification to work with lenders.

Thankfully, many finance and mortgage organisations exist that provide full training and beneficial mentoring services in addition to the tools you’ll need to spur on a career. You just need to be dedicated and willing to spend the time necessary to learn the ins and outs and earn the proper certifications.

This isn’t to say the job works for everyone as there are some traits that help. The most accomplished mortgage brokers typically have an entrepreneurial drive and are highly motivated to succeed.

3. Opportunities abound

Opportunities to find success as a mortgage broker are bountiful on both sides of the equation.

On the one hand, financial institutes know mortgage brokers have a reputation for providing high-quality and professional services. This gives brokers a coveted role within the financial sector as some lenders can rely on to contribute loan applications and close deals.

On the other hand, borrowers will always be in need of experienced mortgage brokers to guide them through the complex process of locating the lending vehicle that best suits their financial situation.

4. Built for independence

As a mortgage broker, you get the freedom to take control of your future to obtain your professional vision and goals. You make the decisions and build your brand according to your personality and style.

Partnering with a brokerage house provides access to a host of comprehensive marketing and business development tools. These services, such as website design and personalised e-newsletters, let you connect with more potential borrowers, maintain lasting relationships with peers, and grow your business.

Plus, you don’t need to worry about the costly overhead of a corporate staff or several divisions of managers.

5. A large network of peers

Even though the mortgage brokering sector is built for independence, the industry still maintains a large network of associations and groups. These organisations host gatherings, provide continuing education, and link up mortgage brokers with each other. With access to this peer network, you have a sort of professional safety net to bounce ideas off of, learn the latest trends, or find a mentor to help you navigate the industry.

6. Designed for flexibility

In many instances, mortgage brokers have the benefit of scheduling their work hours during times that best suit them. You’re also typically free to work from an office anywhere in Australia or even from your very own home. You also have the opportunity to slowly ease your way into mortgage brokering until you find a healthy work-life balance without having to worry about diving in on your first day.

Additionally, there are many sectors in the finance and mortgage space to focus your business on. Whether it’s residential, commercial, investment, or a combination of these, you can choose what kind of real estate you want to work with. And if you change your mind and want to shift your focus, you have that option as well.

7. Great job satisfaction

While it might not seem like it at first glance, mortgage brokers can play a big role in helping families, businesses and even entire communities.

Many borrowers don’t understand the nuances between the different kinds of mortgages available. Mortgage brokers operate in a unique space that allows them to help borrowers find the best lending product from the right lending institution with the most favourable terms. With proper guidance, this means families can buy their dream homes, companies can purchase property to grow and whole communities can thrive.

8. Great option for career change

As mentioned, there’s a relative ease to entry into the world of mortgage brokering. You can realistically acquire the necessary qualifications and certifications without having to spend years studying for a new degree.

In fact, having a solid foundation of knowledge and experience from other industries and sectors can actually work to your benefit. Brokers working in commercial real estate can use their insight from their previous job to leverage more opportunities.

While it does take some time and effort to obtain a mortgage broker licensing and credentials, the end result, such as the benefits listed above, speak for themselves.
Visit our website to learn more about starting a brokering career.