How to Become A Mortgage Broker South Africa

A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.

What does it take to become a mortgage broker?

You must have completed a Certificate IV in Finance & Mortgage Broking and Anti-Money Laundering accreditation. Within two years, you will need to complete a Diploma of Finance & Mortgage Broking Management.

Do you have to study to be a mortgage broker?

Outside of licensing, certification requirements and ongoing professional development required by your professional body, you don’t need a degree to become a mortgage broker.

Can you work from home as a mortgage broker?

Mortgage brokers often work out of their home or car, visiting offices or homes of clients while completing loan applications. Very busy brokers can put in a lot of hours, while other brokers are happy earning less with a smaller caseload. You can sometimes team up with another broker to “job-share” clients.

Below is How to Become A Mortgage Broker South Africa

Step 1: Take a pre-licensure mortgage broker class

Regardless of the state or states in which you operate your mortgage brokerage business, you must be licensed. This requires you to meet specific education guidelines, including having your high school diploma at a minimum, or more advanced training through a college degree.

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Step 2: Pass the National Mortgage License System (NMLS) test

After completing your pre-licensure course, you will need to sit for and pass the National Mortgage License System (NMLS) exam.

The test, known as the SAFE Mortgage Loan Originator Test, challenges your understanding of the course material, including broad mortgage practices as well as state-specific guidelines and regulations. You must pass your license exam, both the state and federal portions, with at least a 75% score.

Step 3: Register and establish your mortgage brokerage

Once you have passed your exam and completed all the required coursework to do so, you are ready to register your mortgage brokerage business. Registration requirements vary from state to state.

They may include establishing a business name and location, securing an employer identification number or EIN, and creating a business structure like an LLC, an S or C corporation, or a partnership.

Step 4: Get your mortgage broker license and surety bond

After passing your exam, registering your business, picking a location, and developing an initial budget, you are ready to apply for your mortgage broker license and secure your mortgage broker bond.

Below Are Duties a mortgage broker does in South Africa

Assessing the market to find a mortgage product that fits the clients needs at the lowest possible interest rate.

Applying for a lenders agreement in principle (pre-approval) Gathering all needed documents (payslips, bank statements, etc.)

Completing a lender application form.

Explaining the legal disclosures.

Submitting all material to the lender.

Is a mortgage broker a good job in South Africa?

According to the Bureau of Labor Statistics (BLS), the career will have an 11% increase in demand between 2016 and 2026. This rate is much higher than the national average for all careers, making a job as a mortgage broker an excellent option for those interested in the finance field.

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How long does it take to become a mortgage broker in South Africa ?

Typically, it takes 45 days to complete the necessary requirements to become a licensed mortgage loan officer. However, since each state has unique requirements, this may vary and be contingent on your ability to pass required examinations and background checks.

What skills does a mortgage broker need in South Africa ?

Mortgage Broker Skills

Knowing common mortgage products, programs and procedures.

Understanding mortgage underwriting.

Applying sales principles and techniques to promote and sell your company’s services.

Knowing how to use Microsoft Office programs.

Can mortgage brokers work from home in South Africa ?

Mortgage brokers often work out of their home or car, visiting offices or homes of clients while completing loan applications. Very busy brokers can put in a lot of hours, while other brokers are happy earning less with a smaller caseload. You can sometimes team up with another broker to “job-share” clients.

Is it hard to be a mortgage broker in South Africa ?

There are no hard-and-fast requirements for becoming a mortgage broker, but you will need some type of training. Many brokers are former loan officers who decided to strike out on their own, or real estate agents who decided they wanted to try the financial side of things. A background in sales is often helpful.

Do mortgage brokers make good money in South Africa ?

Like most sales professionals, mortgage brokers charge a commission for their services. Experienced brokers earn around R787786.95 per year currently, but the pay scale rises above six figures for people who are truly dedicated to their trade.

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How do I become a mortgage broker with no experience in South Africa ?

The qualifications that you need to get a job as a loan officer with no experience include a bachelor’s degree in a field like finance, business, or accounting. Employers expect a new loan officer to have a Mortgage Loan Originators license (MLO) from the Nationwide Mortgage Licensing System.

Is it hard to get a job as a mortgage loan officer in South Africa ?

First and foremost, it is not an easy job. Sure, a mortgage broker or bank may tell you that it’s simple. And yes, you may not have to work very hard in the traditional sense, or take part in any back-breaking work.