Becoming a Mortgage Broker in Australia

The mortgage broker market share in Australia reported an impressive milestone last year. With mortgage brokers settling 76.8% of all new residential home loans, the brokers marked their highest market share of all time last year.

In the March 2025 quarter alone, Aussie mortgage brokers settled a whopping $99.37 billion in new residential home loans.

It’s fascinating to know this much money is being influenced by mortgage brokers. Makes you wonder how you can be a part of it too, doesn’t it?

If you’re thinking about becoming a mortgage broker, you’ve come to the right place. We’re taking you through a full-on guide that helps you become a mortgage broker in Australia.

It's a mix of people skills and problem-solving, so if you are someone who enjoys helping people and figuring things out, on top of the monetary benefits, becoming a mortgage broker might just be right for you.

Let’s look into exactly what you need to get started, what the work looks like, and how you can make it a viable career along the way.

What Does a Mortgage Broker Do?

Mortgage brokers are licensed credit professionals who help clients find and secure suitable home loans and other credit products. 

Essentially, they act as a bridge between the borrowers and the lenders.

Note that they are not employees of any single bank, but are accredited to offer products from a panel of multiple lenders.

Key Responsibilities of a Mortgage Broker

• Assessing a client's financial situation, borrowing capacity, and property goals.

• Scouring the market from their approved lender panel to find loan products that best suit the client’s needs.

• Compiling and submitting a thorough loan application on behalf of the client.

• Acting as the point of contact between the client, lender, real estate agent, and solicitor/conveyancer throughout the process.

• Providing recommendations that are in the client's best interests and ensuring all advice and actions comply with the Australian credit legislation.

A large part of the job is education and reassurance. Clients often feel anxious, confused, or overwhelmed. So a good broker translates bank language into something people can actually understand.

Who They Work With

Brokers work directly with borrowers (first home buyers, investors, refinancers, and business owners) and lenders (major banks, non-bank lenders, credit unions).

Some brokers may also build a professional network with real estate agents, financial planners, accountants, and referral partners for a better and more comprehensive serviceability. 

How Brokers Help Borrowers

Brokers provide access to dozens of lenders and hundreds of products, far more than one could practically research on their own. They also handle the legwork, form filling and follow up with lenders.

An experienced broker, with their influence and relationship with a lender, can even negotiate better rates or terms on clients' behalf. And because they aren’t tied to one bank, their advice can be more favourable for the client than a bank teller’s might be.

When a borrower is on their own, trying to do all of this can be a huge challenge. It’s time-consuming, expensive, and practically impossible.

The 9-Step Process to Become a Mortgage Broker in Australia

Mortgage broking is regulated in Australia, so there’s a clear pathway that one must follow. You can’t just decide to “be a broker” and start arranging loans. 

You need to build the skills, knowledge, and networks to run a professional and sustainable career. Here’s a straightforward roadmap to get you started.

Step 1: Understand the Career

Before getting started, take a moment to think about why you want to become a broker. Do you enjoy helping people make big financial decisions? Are you comfortable with numbers and problem-solving?

Knowing your “why” will keep you going, especially at the start, when building a client base can take a while.

The monetary benefits might seem attractive, but it will take time for you to get to the same level as an established broker. That said, this line of career is better if you equally love genuinely helping people as much as the monetary benefits.

Otherwise, it is very easy to burn out and fail.

Step 2: Learn About the Industry

Start familiarising yourself with the mortgage broking world:

• Join professional bodies like the MFAA for free membership, events, and resources.

• Explore different aggregator models, broker franchises, and the range of lenders you could work with.

• Research how brokers make money, what compliance involves, and how to build a client base.

This step gives you context and helps you make informed choices later.

Step 3: Get the Right Qualification

To become a broker, you’ll need at least Certificate IV in Finance and Mortgage Broking (currently FNS40821). This covers everything from credit law and responsible lending to client needs analysis and loan application processes.

Many brokers also pursue the Diploma of Finance and Mortgage Broking Management (FNS50322). It isn’t mandatory, but it helps if you want to grow your career or be taken seriously by lenders and clients.

Completing these courses qualifies you to join professional associations like the FBAA or MFAA, and all courses comply with ASIC’s education and licensing requirements.

Step 4: Gain Practical Experience

The courses teach the theory, but the real learning comes on the job. Most new brokers work under an experienced mentor or within a brokerage. This is referred to as the “professional year” or “supervision period”. Here, you’ll learn how to:

• Handle real loan scenarios

• Navigate lender rules and policies

• Put together complete loan applications

• Communicate effectively with clients

• Stay on top of compliance obligations

Mentoring can last 6 months to 2 years, depending on your experience and the support available.

Step 5: Get Licensed

To operate legally, you must either:

• Hold your own Australian Credit Licence (ACL), or

• Be a Credit Representative under someone else’s licence

Most new brokers start as a credit representative because it’s simpler and more affordable. Later, once you have experience and a client base, you might consider getting your own ACL.

Licensing ensures you comply with national credit laws, overseen by ASIC.

Koalify is looking for new mortgage brokers to help more Aussies fulfil their homeownership dreams in 2026. If you’re interested in working with us, feel free to contact us today with your qualification and experience (if any).

Step 6: Work With an Aggregator

An aggregator (also called a dealer group) acts as a bridge between you and lenders. They provide:

• Access to multiple lenders

• Platforms to submit loans

• Compliance systems and support

• Training and professional development

Aggregators don’t directly deal with your clients, but they give you the tools and backing to operate effectively.

Step 7: Set Up Compliance and Insurance

Before you start helping clients, you need:

• Professional indemnity insurance to protect yourself against claims

• Compliant business processes

• Commitment to ongoing professional development to stay updated with regulations

Regulatory bodies like ASIC and APRA oversee brokers, so it’s crucial to get this right from the start.

Step 8: Plan Your Business and Mentoring

Think about whether you want to go solo or join an existing firm. Look into different aggregators and mentors to find the right fit for your goals.

If you haven’t got at least two years of loan-writing experience in the past five years, you’ll need a mentor. A good mentor will guide you through compliance, dealing with clients, and handling loan applications until you feel confident on your own.

Step 9: Join Professional Bodies

• AFCA: Membership required for dispute resolution

• MFAA/FBAA: Gives access to resources, industry events, and professional recognition

How Long Does It Take to Become a Mortgage Broker?

A realistic timeline from absolute beginner to operating independently is approximately 18 to 24 months.

• Certificate IV in Finance and Mortgage Broking: Typically 3–6 months, depending on whether you study full-time or part-time.

• Practical experience/mentoring: Most new brokers spend 6 months to 2 years working under an experienced broker or through an aggregator to learn how things work in real-life scenarios.

• Licensing & joining an aggregator: Usually takes a few weeks to a couple of months once you meet all requirements.

What Speeds Up the Process

• Prior banking or finance experience

• Studying full-time

• Strong mentoring support

• Existing referral networks

What Slows It Down

• Studying part-time

• Limited client exposure

• Delays in licensing or aggregator onboarding

• Difficulty understanding lender policies

How Much Does It Cost to Become a Mortgage Broker in Australia?

Mortgage broking isn’t free to enter, but it’s far cheaper than many business-based careers. A few nifty tips to keep in mind:

• Some training providers offer government subsidies, payment plans, or recognition of prior learning (RPL), which can reduce the qualification cost.

• Aggregators often bundle support, mentoring, and software, which can make ongoing costs more predictable.

• Many brokers choose a lean setup in the first year and upgrade tools and marketing as they start earning commission.

That said, here’s a clear breakdown of the estimated costs…

1. Education & Qualifications

• Certificate IV in Finance and Mortgage Broking (FNS40821): Around $595 to $2,500, depending on the RTO. Some providers even offer very affordable online options under $1,000.

• Diploma of Finance and Mortgage Broking Management (FNS50322): Usually $1,000 to $6,000 depending on the provider and study mode.

2. Licensing & Checks

Even if you operate under an aggregator’s licence, you’ll need things like a police check (~$40–$80), credit check (~$80), and membership with the external dispute resolution scheme (~$350).

If you choose to hold your own Australian Credit Licence (ACL) rather than operate under someone else’s, costs can be higher (ASIC fees + consultant help), often several thousand dollars.

3. Aggregator/Network Fees

Aggregator joining/setup fees run at $0 – $50,000+ (especially if buying into a franchise model). The Monthly/ongoing aggregator fees are often $300 – $1,000+, depending on the support.

Some aggregators offer lower upfront fees in exchange for a larger commission split.

4. Professional Insurance

Professional indemnity (PI) insurance is mandatory and protects you if a client claims they were given incorrect advice. Typical annual premiums are $1,000 – $3,000+, depending on coverage and insurance.

5. Industry Memberships

• MFAA individual membership is around $550/year plus a small application fee and compliance pack.

• FBAA membership fees are similar in range.

6. Tools, Software, Marketing

To operate efficiently, you’ll likely invest in:

• CRM and compliance software

• A professional website

• Marketing materials

These can add $1,000 – $5,000 in the first year, depending on how much you choose to invest.

Mortgage Broker Salary and Income in Australia

Mortgage brokers usually don’t earn a fixed salary. They are more commonly paid through commissions by the lenders, usually through their aggregators. This is what typical earnings look like:

• Entry-level brokers: Around $50,000–$80,000 per year, mostly from upfront commissions with some trail income starting to build.

• Experienced brokers: Around $100,000–$200,000+, with trail commissions providing a steadier, ongoing income.

• Top brokers: Some earn $300,000+, especially if they have a strong client base and many active loans.

Here’s what these commission types mean…

Upfront Commission

You get a percentage of the loan when it settles, generally ranging from 0.65-0.70% of the loan amount.

It gives a nice boost early on, but there’s a catch called clawback. If the borrower pays off their loan, refinances, or defaults within the first 12–24 months, the lender can take back some or all of your upfront commission. 

This is because lenders have not made a return on the loan as a result of early discharge of the loan, making it important to focus on building long-term client relationships.

Trail Commission

It is a smaller percentage of the loan that you continue to receive each month while the loan remains active. Typically, this is around 0.1–0.2% per year of the outstanding loan balance.

Trail commission is more stable and builds over time, giving ongoing revenue even if some upfront commissions are clawed back. It’s also what allows experienced brokers to earn consistently, even if they’re not constantly submitting new loans.

Employed vs Self-Employed Brokers

When starting out as a mortgage broker, you generally have two main paths: working for a firm (employed) or going solo (self-employed).

If you’re interested in working for a firm, you can join our team of brokers this year. Koalify offers adequate training, competitive pay, access to a broad panel of lenders, and everything you need to get started in this field.

Openings are filling up fast; contact us today with your qualification and experience (if any).

Working for a Mortgage Broker Firm (Employed)

• You’re usually paid a salary plus a smaller commission split, so your income is more predictable.

• The firm handles compliance, licensing, software, and admin, which means less stress on your side.

• You benefit from the firm’s existing client base, marketing, and training, which is great when you’re just starting out.

• The downside is lower earning potential, since you share commissions with the firm and may have limited control over your business decisions.

Self-Employed/Independent Broker

• You keep most or all of your commissions, which means higher income potential, especially if you build a strong client base and trail commissions.

• You have full control over your business, including marketing, systems, and client relationships.

• You’re responsible for compliance, licensing, insurance, software, and admin, which can be time-consuming and costly.

• Income is less predictable, especially in the first year, since it depends entirely on the loans you arrange and trail commissions you build.

Many brokers start out working for a firm to learn the ropes and gain experience before going solo. Some jump straight into running their own business if they feel confident, have good industry connections, or want more freedom.

Both paths can work well. It just depends on how you want to handle income, risk, and workload.

Is Becoming a Mortgage Broker Worth It?

Becoming a mortgage broker can be a great career choice, but like any job, it has its ups and downs.

Pros:

• Earnings: Brokers can earn really well, especially once you have a steady client base and trail commissions coming in. Experienced brokers can make six figures or more.

• Flexibility: You can often set your own hours, work from home, and structure your work around your life.

• Variety: Every client and loan is different, which keeps the work interesting and challenging.

• Growth: Over time, you can grow your business, specialise in certain types of loans, or even hire people to help you expand.

Cons:

• Income can be up and down: Especially in the first year, earnings aren’t steady. Plus, clawbacks on upfront commissions can affect cash flow.

• Responsibility: You need to stay on top of compliance, regulations, and give the right advice.

• Pressure to find clients: Your income depends on getting and keeping clients, which can be stressful when you’re starting out.

Frequently Asked Questions

Get in touch

Can I be a mortgage broker with no prior experience in finance?

Absolutely! While it can help, you don’t need a finance background to start.

Completing the Certificate IV in Finance and Mortgage Broking and getting hands-on experience, often through a broker firm or aggregator, will teach you everything you need to get going.

Can I work in multiple states in Australia?

Yes. Once you’re licensed, you can work across different states. A few lenders might have state-specific rules, but your broker licence generally works nationwide.

Do mortgage brokers require special software?

Brokers usually use CRM and compliance software to manage clients, loans, and documentation.

The good news is that aggregators often provide these tools as part of their support, making it easier when you’re just getting started.

Is networking important?

Yes, as referrals from clients, real estate agents, and accountants are a major source of business. Building strong relationships helps grow your client base and income faster.

Can I switch from being employed to self-employed?

If that’s your career goal, you can. 

Many brokers start employed to gain experience and then move to self-employment once they’re confident, have clients, and understand compliance requirements.

How long before I start earning a steady income?

It varies. Some brokers start earning commissions within a few months, but most take 6–12 months to build a steady client base and establish reliable trail income.

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