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Mortgage and Financial Broking

Overview

This page provides information and data on the Mortgage and Financial Broking sector, which is one component of the Financial Services industry, and includes mortgage and financial broking management.

The Mortgage and Financial Broking sector is involved heavily with the wider Housing and Financial Services industries. Mortgage Brokers assist individuals to source and apply for mortgage financing, while Financial Brokers assist clients with more general financial needs and may facilitate the purchase or trading of a range of financial products.

Nationally recognised training for Mortgage and Financial Broking is delivered under the FNS – Financial Services Training Package.

Information sourced from the Financial Services IRC’s 2019 Skills Forecast.

For information on other financial services, see the Financial Services cluster.

All data sources are available at the end of the page.

IRC and skills forecasts

Employment trends

Employment snapshot

Detailed employment information is not available for the Mortgage and Financial Broking sector; information for the occupation Financial Broker has been used as a proxy for this sector. Employment for Financial Brokers was variable between 2000 and 2019, with a particularly strong rise between 2013 and 2019. In 2019 there were 36,900 Financial Brokers, which is projected to decline to 35,500 by 2024.

Training trends

Training snapshot

Program enrolments in Mortgage and Financial Broking-related qualifications have declined each year between 2015 and 2018. Program completions rose between 2015 and 2016 before declining in both 2017 and 2018.

For enrolments during 2018, all training in Mortgage and Financial Broking-related qualifications took place at the certificate IV or higher level. This training was comprised of the Certificate IV in Finance and Mortgage Broking, which had over 6,600 enrolments, and the Diploma of Finance and Mortgage Broking Management, which had over 3,940 enrolments. The intended occupation of students in Mortgage and Financial Broking-related qualifications was Finance Broker.

In 2018, over 98% of Mortgage and Financial Broking-related qualifications were delivered by private training providers. In terms of funding, over 94% of Mortgage and Financial Broking-related subjects were delivered through domestic fee for services arrangements. New South Wales and Victoria have the highest proportion of students enrolled in Mortgage and Financial Broking-related qualifications at 36% and 31% respectively. Close to half of all training was delivered in New South Wales (45%), followed by Victoria (29%) and Queensland (19%).

Apprentice and trainee commencements in Mortgage and Financial Broking-related qualifications have fallen dramatically since 2012. Completions have fallen in a similar fashion since 2013. Apprentices and trainees in this sector have an intended occupation of Finance Broker. In 2018, Western Australia reported the largest proportion of Mortgage and Financial Broking-related apprentices and trainees, with 49%, followed by Victoria with 27%, and New South Wales with 15%.

For more data specific to your occupation, industry or training package, visit NCVER’s VET students by industry. If you are prompted to log in, select cancel and you will continue to be directed to the program.

For more data specific to your region visit NCVER’s Atlas of Total VET.

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Industry insights

Industry insights on skills needs

According to the Financial Services IRC’s 2019 Skills Forecast, mortgage broking is an important and growing industry in Australia. The mortgage broking sector employed over 16,000 people in 2018 within small mortgage adviser organisations, national home loan franchisees or the mortgage broking components of major banks. Strong demand for property is driving demand for mortgage brokers. Mortgage and Finance Brokers need skills relating to: preparing loan applications, identifying client needs for broking services, complying with financial services legislation and industry codes of practice, applying principles of professional practice to work, and developing and maintaining in-depth knowledge of products and services used.

The above Skills Forecast argues that mortgage broking training products need to be updated to address the evolving skills required of mortgage broking workers, due to the increased regulation and impact of new technologies for improving customer experience and worker efficiency.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry: Final Report states that the mortgage broking industry is a key distribution channel for home loans, accounting for more than half of all residential home loans settled. In his final report, Commissioner Kenneth M. Hayne made a number of recommendations about mortgage brokers, including:

  • Recommendation 1.2 – Best interests duty: The law should be amended to provide that, when acting in connection with home lending, mortgage brokers must act in the best interests of the intending borrower. The obligation should be a civil penalty provision. This recommendation gives mortgage brokers the same duty to their clients as financial advisers owe their clients.
  • Recommendation 1.5 – Mortgage brokers as financial advisers: After a sufficient period of transition, mortgage brokers should be subject to and regulated by the law that applies to entities providing financial product advice to retail clients. This recommendation will ensure consistent treatment of mortgage advisers and financial advisers.

In Restoring Trust in Australia's Financial System: the Government Response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the Government agreed to introduce a best interests duty for mortgage brokers to act in the best interests of borrowers. The Government agreed that a breach of the best interests duty should be subject to a civil penalty. And the Government agreed, following the implementation of the best interests duty, to further align the regulatory frameworks for mortgage brokers and financial advisers. These changes will have a significant influence on Australia’s mortgage broking sector.

Links and resources

Data sources and notes

Department of Employment, 2018, Employment Projections, available from the Labour Market Information Portal

  • by ANZSCO, selected occupations, employment projections to May 2023
    • Financial Brokers.

Australian Bureau of Statistics 2018, Employed persons by Occupation unit group of main job (ANZSCO), Sex, State and Territory, August 1986 onwards, 6291.0.55.003 - EQ08, viewed 1 November 2018 http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6291.0.55.003May%202018?OpenDocument

  • Employed total by ANZSIC 4 digit Financial Brokers, 2000 to 2018, May Quarter.

Training data has been extracted from the National VET Provider Collection, Total VET Students and Courses from the following training package or qualifications:

  • FNS – Financial Services Training Package
    • FNS40804 - Certificate IV in Financial Services (Finance/Mortgage Broking)
    • FNS40810 - Certificate IV in Finance and Mortgage Broking
    • FNS40811 - Certificate IV in Finance and Mortgage Broking
    • FNS40815 - Certificate IV in Finance and Mortgage Broking
    • FNS50310 - Diploma of Finance and Mortgage Broking Management
    • FNS50311 - Diploma of Finance and Mortgage Broking Management
    • FNS50315 - Diploma of Finance and Mortgage Broking Management
    • FNS50504 - Diploma of Financial Services (Finance/Mortgage Broking Management).

This includes superseded qualifications and training packages.

Data covers a range of selected student and training characteristics in the following categories and years:

  • 2015, 2016, 2017, 2018 program enrolments
  • 2015, 2016, 2017, 2018 program completions.

Total VET students and courses data is reported for the calendar year. Program enrolments are the qualifications, courses and skill-sets in which students are enrolled in a given period. For students enrolled in multiple programs, all programs are counted. Program completion indicates that a student has completed a structured and integrated program of education or training. Location data uses student residence. Subject enrolment is registration of a student at a training delivery location for the purpose of undertaking a module, unit of competency or subject. For more information on the terms and definitions, please refer to the Total VET students and courses: terms and definitions document.

Low counts (less than 5) are not reported to protect client confidentiality.

Percentages are rounded to one decimal place. This can lead to situations where the total sum of proportions in a chart may not add up to exactly 100%.

FNS – Financial Services Training Package apprentice and trainee data has been extracted from the National Apprentice and Trainee Collection, including:

  • 2010 to 2018 commencements
  • 2010 to 2018 completions
  • 2018 apprentices and trainees in-training October to December 2018 collection, by qualification and state and territory of data submitter.

Priority skills data have been extracted from the Financial Services IRC’s 2019 Skills Forecast.

Updated: 31 Mar 2020
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