Starting a mortgage broking business can be a rewarding long term career. It allows you to help people buy homes, build trusted relationships, and create a flexible business with strong growth potential.
However, mortgage broking is a regulated profession. To succeed, you need the right education, strong systems, and experienced guidance from the beginning.
This step by step guide explains how to start a mortgage broking business in Australia and what to focus on to build a strong and compliant foundation.
Step 1: Understand the Role of a Mortgage Broker
A mortgage broker helps clients find and apply for home loans that suit their needs and financial situation.
Your role includes:
-
Understanding your client’s goals and financial position
-
Comparing loan products from different lenders
-
Recommending a suitable loan that meets the client’s needs
-
Helping the client complete and submit the loan application
-
Managing the loan process through to settlement
A mortgage broker is a credit adviser. You are responsible for acting in the client’s best interests and providing advice that is suitable, compliant, and well documented.
Step 2: Complete Your Education Requirements
To become a mortgage broker in Australia, you must complete formal education that meets industry and lender requirements.
We strongly recommend that new brokers complete the Diploma of Finance and Mortgage Broking Management, not just the Certificate IV. Some lenders will not accredit brokers who have not completed the Diploma.
You will need:
Certificate IV in Finance and Mortgage Broking
This is the entry level qualification. It introduces lending basics, compliance, and the loan application process. On its own, this qualification is not enough to operate as a mortgage broker.
Diploma of Finance and Mortgage Broking Management
This qualification is essential and strongly preferred. Some lenders will not accredit a broker unless this Diploma has been completed.
Completing the Diploma early helps avoid delays and allows you to progress through licensing and lender approvals more smoothly.
Step 3: Engage a Mentor Early
Starting out, most learning happens on real files, not in textbooks.
Both the MFAA and the FBAA require new brokers to complete a structured mentoring program before they can operate independently.
A mentor supports you by:
-
Reviewing real loan scenarios
-
Helping you understand lender policy and credit decisions
-
Guiding correct file structure and documentation
-
Supporting compliance and Best Interests Duty requirements
- Advising you on how to build a sustainable, profitable, mortgage broking business
This guidance helps reduce mistakes, builds confidence, and shortens the learning curve during your early years in the industry.
Step 4: Choose an Aggregator and Licensing Path
Most new brokers operate as a Credit Representative under an aggregator’s Australian Credit Licence.
An aggregator provides:
-
Access to a panel of lenders
-
Loan submission platforms
-
CRM systems such as Mercury or Salestrekker
-
Compliance frameworks and reporting tools
Choosing the right aggregator is an important business decision. It affects:
-
Which lenders you can access
-
Your income structure
-
Your compliance obligations
-
The long term value of your business
Your mentor's experienced guidance can help you compare options and avoid choosing an aggregator that does not suit your goals.
Step 5: Join the MFAA or FBAA and Obtain Credit Representative Status
Once your education, mentoring, and aggregator arrangements are in place, you can proceed with:
Industry Body Membership
Joining the MFAA or FBAA demonstrates professionalism and commitment to industry standards.
Credit Representative Appointment
This allows you to legally provide credit assistance and submit loan applications under your aggregator’s licence.
Step 6: Choose the Right Business Structure
Most aggregators require brokers to operate under a company or trust structure.
Common options include:
Company Structure
This is the most common option. It offers limited liability, simpler compliance, and is preferred by most aggregators.
Trust Structure
This may offer tax flexibility but requires additional setup and ongoing administration.
Sole trader structures are generally not accepted by aggregators.
It is recommended that you speak with an accountant before setting up your business structure. The right structure can also support long term planning and business sale in the future.
Step 7: Set Up Your Office and Core Systems
A professional setup is essential for efficiency and compliance.
This includes:
-
A quiet and private workspace
-
A CRM system provided by your aggregator
-
Secure document storage and cloud backup
-
Loan calculators and lender tools
Strong systems help you manage client information correctly and maintain consistent file quality.
Step 8: Gain Lender Accreditations
You can only submit loan applications once you are accredited with lenders.
Accreditations begin after you receive your Credit Representative Number and are managed through your aggregator.
Support during this stage helps you:
-
Prioritise which lenders to accredit with first
-
Understand lender training requirements
-
Avoid common accreditation delays
Step 9: Build Your Professional Profile and Brand
A professional brand helps clients feel confident working with you.
Focus on:
-
A clear professional profile and biography
-
A simple and professional website
-
A LinkedIn profile and business Facebook page
-
Basic marketing materials such as email templates and business cards
Your message should explain how you help clients and solve problems, not just promote loan products.
Step 10: Network and Build Referral Relationships
Most mortgage brokers grow their business through referrals.
Build relationships with:
-
Real estate agents
-
Accountants and financial advisers
-
Local business owners and community groups
Networking is about trust and consistency. Strong relationships develop over time through reliable service and clear communication.
Step 11: Create a Clear Client Process and Focus on Compliance
Every client should follow the same structured process.
This includes:
-
A detailed fact find
-
A documented lending strategy
-
Clear file notes and compliance checks
-
Meeting responsible lending and Best Interests Duty obligations
Compliance continues after settlement. An after settlement care process helps support clients and strengthens long term relationships.
Step 12: Keep Learning and Stay Updated
The mortgage broking industry changes regularly.
To stay current:
-
Attend lender training sessions
-
Join webinars and industry events
-
Read lender and industry updates
-
Seek guidance when dealing with unfamiliar scenarios
Ongoing learning protects both your clients and your business.
Final Thoughts
Starting a mortgage broking business requires patience, structure, and informed decision making.
With the right education, supportive guidance, and strong systems, you can build a professional and trusted mortgage broking business that grows over time.
Taking the time to set up correctly at the beginning will help you avoid delays, reduce risk, and build confidence as your business develops.
If you would like to learn more about how we support new brokers through education, mentoring, and business setup, please contact us.