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How to Become a Finance Broker

When it comes to the educational requirements and experience you need to begin a career as a finance broker, explore this lucrative opportunity.

Looking for an exciting and rewarding career in the finance field?

While there are many job opportunities in this industry, those with an interest in the lending niche should consider becoming a finance broker!

If you’ve ever applied for a business loan, you might have worked with a broker in the past. In short, this person helps manage and oversee the loan application process for a fee, acting as a go-between and communicating with lenders on the applicant’s behalf.

If this job description sounds intriguing, read on.

Today, we’re sharing the steps to follow if you want to pursue a career as a finance broker!


What is Finance Broking?

Before we delve into the qualifications to meet, let’s first discuss more about what a finance broking career entails.

Finance brokers can perform a range of duties depending on their industry specialization. In all instances, they help their clients secure the financial support they require. This can include the following financial resources:

  • Loans
  • Financing
  • Insurance
  • Working capital

In addition, finance brokers can also advise clients in their investment pursuits, including commodities trading and similar market transactions.

There are three primary ways that a mortgage broker can earn an income. These include:

  • Working at a financial institution and earning a salary (e.g. bank, finance brokerage)
  • Charging service fees to clients for arranging loan details and securing funding
  • Earning fees and trailing commissions from a lending institution


What Are the Academic Qualifications?

Of course, you can’t begin a career as a finance broker without completing the proper education and industry training, first.

In terms of academic qualifications, you can pursue a diploma or certificate in a finance-related field. The three most common degree tracts are as follows:


Certificate IV in Finance and Mortgage Broking

This is an entry-level certificate that offers you an introductory look at the business of finance and mortgage broking. This course is designed for prospective students with no prior industry knowledge. Students will learn how to process basic loan applications, perform credit checks and similar transactions.

While you will need to take more courses to qualify for industry licensing, this is an excellent starting point.


Diploma of Finance and Mortgage Broking

This is a nationally-recognized, comprehensive tract that takes a deeper dive into the daily activities of a finance broker. It’s best-suited for new entrants into the profession, though there is a “Diploma Upgrade” course option designed to allow existing brokers to upgrade their Certificate IV qualification.

In the courses required to obtain your diploma, you’ll learn the ins and outs of myriad types of financial retail products, including:

  • Loans
  • Insurances
  • Mortgages

Your coursework will also cover how to present brokerage solutions to clients and configure complex loan types.


Bachelor of Business Degree in Financial Planning

This is a top-tier academic qualification in the financial planning industry, designed for those with prior experience in the field. When you receive your degree, you’ll be well-versed in a variety of finance and business topics, including:

  • Accounting
  • Financial planning
  • Lending
  • Financial risk management
  • Finance law
  • Investment planning
  • Business ethics

Securing Your Australian Credit License

While there are a few ways you can get into this field academically, there’s one step that all prospective brokers must take prior to beginning work.

Before you can give advice to clients about loans, investments, credit transactions, or financial products, you have to secure an Australian Credit License (ACL) from the Australian Securities and Investment Commission (ASIC).

An ACL is required to conduct any credit-related services or activities in Australia. If you intend to perform financial broking services on your own, the license is mandatory. Otherwise, you might be exempt or authorised to engage in the activities if you work as a representative of a credit licensee.

This guide from the ASIC helps explain the specific licensing process to follow. You can also learn more about the requirements and pre-requisites in ASIC Regulatory Guide 204.

You will need to have your license the day you begin work, so it’s important to obtain it as soon after completing your academic studies as possible. In addition to completing an approved course of academic study, the ASIC might also require that you join a professional organization to secure licensing.

Three of the most prominent ones include the:

Finance Broker Skills and Traits to Consider

You could have the academic and professional qualifications completed, but to succeed in this field, it’s helpful to understand the kind of industry skills and personality traits you’ll need to exhibit.

This job is ideal for those who show a natural aptitude for math and numbers. Remember, your job will be to help clients secure the best loan terms possible. To do so, you’ll need to be able to quickly calculate their estimated loan payments, fees, principal balances and more to give them an accurate snapshot of their options.

You should also possess excellent writing, administrative and communication skills. This is a forward-facing role that requires client interaction on a regular basis. It also requires a significant amount of paperwork, online navigation and document management. You should have top-notch organization skills to instil client confidence in your abilities.


Partner With Us

Whether you’re just getting started in the industry or you’re a seasoned vet, we’d love to talk.

We offer access to unsecured business funding that could benefit your growing portfolio of small to medium businesses.

To date, we’ve secured more than 15,000 small business loans for Australian business owners, strengthening and supporting our existing partnerships and affiliate programmes along the way.

Register now to join our brokerage network and let’s connect!

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