Hi guys, recent one of my friends says he got some banks mortgage products, so if Im interested I could go to take a course to become mortgage broker. I thought I only need this certificated IV so I enrolled the course, but it turns that I have to complete the MFAA compliance online course to meet the MFAA education requirement. But seems there are more steps to complete in order to get a MFAA memebership, I'm so confused, here I list the ones I know, can someone help me if something miss or wrong, thanks:
1, certificated IV $ 695
2, MFAA online course $210
3, MFAA application fee $100 + $300 (individual)
4, Police Check + credit check around $100
5, Find an experienced mentor to nominate me
6, the Professional Indemnity insurance. about this, is there anyone can explain to me what is this and how much it cost to get this insurance?Thanks everybody, waiting the answers here:)
You need to be sponsored by a mortage broker company to gain membership into the MFAA due to the requirement to have 2 years experience which is impossible to get unless you can get sponsored / mentored it is a sort of catch twenty scenario
see
http://www.mfaa.com.au/default.asp?artid=1879
You also need to be lender accrediated for each lender you deal with. Most are fairly easy except for CBA which is difficult to learn and pass the test.
You also need to be a member of COSL.
Y
ou have to be aware of if your aggregator will provide you with sales leads or if you are expected to find your own sales from people you know.
If you are trying to get affiliates you may find it difficult as a lot of the places already have mortgage brokers.
Also you need to be a very optimistic person who can tolerate having no told to you a lot.
Also you need to be aware if the aggregator is going to pressure you to get sales leads and write mortgages.
Also you have to be aware if the aggregator will pay your commission straight away or after the settlement of the loan.
You need to find a mentor see link below for an example.
http://www.diamondfinance.com.au/become-a-mortgage-broker-mentoring-program.htmli would maybe hold off a bit as there is new legislation coming in around No this year. Mortgage brokers will be regulated by ASIC. When this happens all the requirements will change. it is very confusing at the moment and I don't know what you need since I have been a broker before all this came into effect.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thanks Duckster, it's very useful information. But is the mentor program you gave me free? Diamond Finance is a mortgage aggregator, isn't it? Then how about the professional indemnity insurance? How much is that because my friend told me it might depend on my experience, so join an aggregator might be chaper, but do you know the price range?
Thanks!
Terryw wrote:i would maybe hold off a bit as there is new legislation coming in around No this year. Mortgage brokers will be regulated by ASIC. When this happens all the requirements will change. it is very confusing at the moment and I don't know what you need since I have been a broker before all this came into effect.So Terryw, do you think it is the good time to get into mortgage industry now? I dont have any finance or accounting or business background, is that ok to become mortgage broker?
In the current climate if you dont have a steady flow of professional contacts and referral base i think you will suffer.
Clients want more and more advice from Brokers who have experience or who are investors themselves.
Sure if you want to market yourself at the First Home Owners market then you might get by but remember this will be a limited flow of business.
Terry is right the new ASIC changes will certainly cause a lot of Brokers to merely walk away and call it a day.
Richard Taylor | Australia's leading private lender
I don't think it is a good time to get into broking. Commissions have been cut dramatically. trails are been more than halved. In the good old days some brokers earned more than heart sugeons.
However, there are not many industries in which you can build a trail income and if you can get the clients it is probably not a bad 'job'. If there is going to be a boom soon, then it is probably a good time to join the industry – so you can get some of the thousands of new loans that come with a boom..
Also, have you considered getting into financial planning ? either on its own or together. There are big monies to be made their too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If you want to get into the industry the best thing to do is join a aggregator or bank.
With your cert iv, this should get you a position where possably the employer will pay for the MFAA fee and you will be getting paid a wage and commision.
Like Terryw said it would be good to get into financial planning as well so you are authorised to give advice and work with the client for total solutions and strategies rather than product only.Regards
Rob Bologna
Dollar Wise Financial Services
[email protected]Thanks guys, really appreciate all the answers and suggestions.
Seems join a mortgage aggregator is the best way for a person unexperience like me, Diamond Finance offers broker training and they say they will assist me to get through my Cert IV studying, as well accrediation from lenders something like that. Does anyone know that wether the aggregators will offer the leads or not?
Cheers,
A good place to check out the price of the Professional Indemnity insurance is http://www.bizcover.com.au. They quote you straight away and you can buy online as well. They have a specific secion for Mortgage brokers.
good luck.
Terryw wrote:I don't think it is a good time to get into broking. Commissions have been cut dramatically. trails are been more than halved. In the good old days some brokers earned more than heart sugeons.However, there are not many industries in which you can build a trail income and if you can get the clients it is probably not a bad 'job'. If there is going to be a boom soon, then it is probably a good time to join the industry – so you can get some of the thousands of new loans that come with a boom..
Also, have you considered getting into financial planning ? either on its own or together. There are big monies to be made their too.
Are Financial Planners remunerated via commission too?
Paul,
Finical planners can be remunerated by commision or upfront fee or both. I believe there is a push from somewhere to eleminate commisions over the next couple of years to improve the integrety of the advice.
Gibbo
Yes there is a push and the quicker the better as far as i am concerned.
Sure i take a commission on life related products (usually discount it by a reduction in the clients premium) but for managed funds, investment advice or hedge fund management i work on a fee for service.
I think a real issue is the MIS schemes such as Great Southern Plantations where advisers were earning anywhere upto 10% of the original investment amount.
Richard Taylor | Australia's leading private lender
Do you have to have an AFSL to work for yourself as a Financial Planner?
Yes.
Richard Taylor | Australia's leading private lender
Broadly speaking, what are the requirements to obtain one?
PropertyPaul wrote:Do you have to have an AFSL to work for yourself as a Financial Planner?Well, you could work under a AFSL holder as an authorised representative without having the licence itself. You will still need to have the relevant qualifications which, i think, are PS146 or a diploma in Financial Services – which can be obtained in as little as 4 days.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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