How to become a credit representative in Australia

Despite challenges in the Australian mortgage market, it remains resilient. Aspiring property buyers are racing to achieve homeownership, seeking the assistance of mortgage agents and loan officers. Some might prefer the do-it-yourself method, especially those who already have experience with both the mortgage sector and real estate industry. But for others, consulting with trusted professionals is still preferred as this can lessen their worries.

It is also better to talk to credit representatives, for example, especially for newbies in the market. Engaging the services of those who make a career out of home loan broking can save borrowers a lot of money and make their mortgage transactions smoother. As it stands, having a career in this industry is a smart choice.

Would you like to know how to become a credit representative?

In this article, Mortgage Professional Australia will discuss the ins and outs of this profession and how credit representatives can help home buyers in the country. We will also talk about the requirements and the essential skills needed to become a credit representative. Read on if you want to learn more about this career and see if it is the right path for you.

What is a credit representative?

A credit representative specialises in helping aspiring homeowners secure a property loan that suits their needs and personal goals. They help their clients by narrowing down their home loan choices from a wide selection of mortgage options. Credit representatives scour the market for competitive mortgages with affordable interest rates.

Do credit representatives need to be licensed to work in Australia?

Short answer: no. If you plan to become a credit representative in the country, it is not necessary for you to complete practical and educational training required for licensed mortgage professionals such as brokers. If you want to become a credit representative in Australia, you can work as one under the authorisation of a licensed mortgage professional.

When you become a credit representative authorised by a licensee, you are eligible to provide mortgage broking services to potential borrowers. On the other hand, mortgage brokers must have a license to work legally.

Both aspiring credit representatives and mortgage brokers must complete the following requirements:

• at least a Certificate IV in Finance and Mortgage Broking
• 20 hours of continuing professional development (CPD) annually

Learn how to become a mortgage broker in Australia when you read this article.

Steps on how to become a credit representative

Ready to become a credit representative in Australia? We have compiled the requirements into four steps for easier navigation:

Step 1: Complete education and training

First, you need to complete the educational and practical training. This involves a Certificate IV and 20 CPD each year. But before that, your credit licensee will have already conducted background checks before they authorise you as their representative. These checks can be done in the form of:

• referee reports
• police checks

Your credit licensee can also search for your name on the Australian Securities and Investments Commission (ASIC)’s register of banned and disqualified persons. They can do the same on ASIC’s register of authorised credit representatives.

Step 2: Join the AFCA

The next step is to join the Australian Financial Complaints Authority (AFCA). If you are authorised by a licensee before being a member of the AFCA, that authorisation will not take effect. The same is true if you have already become a credit representative but are no longer an AFCA member.

Want to know how to join the AFCA and learn about the benefits for their members? Read this article.

Step 3: Get your ABN and sign sub-origination agreement

After completing the second step, you must now get your Australian Business Number (ABN) and sign a sub-origination agreement. This should be with an aggregator or an entity that holds an Australian credit licence (ACL). Only then can you get a credit representative number.

Step 4: Ask for your licensee’s written consent

Finally, you need to ask for your licensee’s written consent to become a credit representative in Australia. Both you and the licensee should keep a copy of this written consent for your records.

Staying updated with Australian mortgage and credit market trends

Staying updated with the latest happenings in the country’s mortgage market is important if you want to become a credit representative. You have better chances of attracting prospects if you are known as a credit professional who is always informed about the ever-changing mortgage rates as well as:

• product fees
• loan-to-value ratio percentages
• mortgage scheme rates

If you’re serious about this career and want to stay updated with the latest developments in the Australian mortgage industry, subscribing to our mortgage newsletter is essential!

What are the essential skills needed to become a credit representative?

Now let’s go over the essential skills that are beneficial in becoming a credit representative. Here are some of them:

1. adaptability
2. negotiation skills
3. communication skills
4. attentiveness
5. time management
6. team collaboration

Let’s take a closer look at each of these essential skills:

1. Adaptability

Being able to adapt is important if you want to become a credit representative in Australia. You must be ready to adjust and align yourself with changes in:

• mortgage sector trends
• industry rules and regulations
• emerging technology

Like mortgage brokers, being open and prepared to improve your brand as a credit representative with these changes is a sign of commitment. Check out this video on how brokers are adapting to the changing mortgage market:

2. Negotiation skills

Negotiation skills are important for credit representatives, especially when discussing home loan terms with their clients and mortgage providers. They must advocate for fair agreements and balance the interests of both parties.

This is mainly because credit representatives will also need to vouch for the mortgage products that their lender-employer offers while considering their clients’ needs. They need to introduce their clients to the lender’s home loan services and explain why these are ideal for their property objectives and personal circumstances.

Credit representatives must also be able to convince their lender-employer that the client is eligible to secure a mortgage and explain the latter’s level of risk if needed.

Acting as an intermediary between the potential borrower and the lender is a credit representative’s role in the mortgage process. As such, their negotiation skills will often be put into action.

3. Communication skills

This is one of the most essential skills you need to have and develop when you become a credit representative. Effective communication is key when interacting with clients, lending companies, and other mortgage stakeholders.

The ability to clearly explain complicated mortgage processes to your prospects will help you build a good relationship with them. The same is true when you show good listening skills to their preferences and concerns.

To improve your communication skills as a credit representative, check out this video on how you can communicate with greater clarity, confidence, and credibility:

4. Attentiveness

As a credit representative, you should be attentive when checking mortgage terms and agreements. This skill will help you in spotting potential problems in these documents quickly, such as errors in text or ambiguity in the language used.

It also helps to pay attention to detail when handling your clients’ mortgage applications. This will help prevent rejection and might even lead to faster home loan approvals.

5. Time management

Practicing good time management is another skill that credit representatives must have. Prioritising what needs to be done will help you organise your schedule and answer clients’ inquiries swiftly. As a result, you can also develop organisational skills that will aid you in increasing productivity.

Once you become a credit representative, this will allow you to provide high quality service while handling numerous responsibilities in a busy environment.

6. Team collaboration

Lastly, team collaboration is essential for credit representatives who often work with various departments. Having strong interpersonal skills can help in developing effective communication and cooperation with other mortgage professionals.

Is it difficult to work as a credit representative in Australia?

Just like any other profession, becoming a credit representative can be challenging. This career is ideal for those who want to be independent and have a desire to carve their own path in life. One must ask themselves if they would remain in the industry even when hardships come.

Obviously, clients won’t come flocking to you if you are just starting out on your career. To help you solve this problem, here is a video about getting mortgage clients on demand rather than relying on referral partners:

Is becoming a credit representative the career path for you?

Deciding to become a credit representative in Australia may not be a walk in the park but it is a career worth pursuing. Just like any profession in the mortgage industry, when you perform your tasks with commitment, diligence, and perseverance, that hard work will eventually pay off.

All in all, this line of work can provide you with a steady flow of income on top of career and personal growth. If you want to advance faster and beat competition, doing more is the key. Finally, you might want to try applying this famous line in your profession once you become a credit representative: hard work beats talent when talent doesn't work hard.

If you are unsure, seek advice from the experts in Australia’s mortgage sector. You can check out our Best in Mortgage page to find the top performing mortgage brokers and home loan providers in the country.

Would you like to become a credit representative? Did you find this guide helpful? Feel free to share what you think in the comments section below.