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Mortgage brokers are uniquely positioned to play a bigger role in boosting financial literacy according to two brokers engaged in supporting communities with lower financial knowledge.
Brava Finance founder Cara Julian and Niti Bhargava, founder and principal broker at GB Financiials, are both involved in supporting different cohorts of Australians to elevate their financial literacy.
At Brava Finance, Julian (pictured above left) is focusing on empowering women to take control of their finances, both through her business, and her recent book Why You Should Date Your Bank, Not Marry Them.
Bhargava (pictured above right) has for some time supported newly migrated women with free quarterly financial literacy sessions, which has expanded to include any migrants to Australia who would like to come along.
Bhargava was recently recognised by the Victorian Multicultural Commission, receiving a ‘highly commended’ business award for helping “many migrant families take control of their finances”.
Julian told Australian Broker the financial literacy among women she works with, particularly those who are recovering from divorce or financial setbacks in life, is “alarmingly low”.
“Many women I work with lack confidence in navigating mortgages and other financial decisions, often feeling overwhelmed by industry jargon and processes,” she said.
“This gap prevents them from fully understanding their financial options and opportunities.”
Bhargava sees a lack of financial education, cultural and language barriers and overexposure to consumer debt as some of the financial literacy problems facing people in her communities.
There can also be a stigma around financial discussions, or the complexity of financial products can contribute to the financial literacy problem in newly-migrated communities in Australia.
Bhargava said this can often result in debt mismanagement, disparity in financial education access and “giving a risky environment to [the] younger generation” if not addressed.
Poor financial literacy among women can lead to missed opportunities, Julian said, like overpaying on mortgages due to not looking at refinancing options, or hesitating to invest in property.
Julian has also seen it contribute to lower savings and a general lack of financial security, as many women may not have the knowledge to fully understand how to budget effectively, identify opportunities to reduce their costs, or make informed decisions about savings strategies.
“Without this knowledge, they are more likely to fall into high-interest debt, miss out on compound growth opportunities, or prioritise immediate expenses over building a financial safety net, which can create anxiety and limit long-term planning,” Julian said.
Bhargava said that low levels of financial literacy in migrant communities in Australia can end up resulting in reduced economic mobility, increased financial stress and anxiety, mortgage and homeownership challenges, poor budgeting, low savings and retirement insecurities.
Brokers say education is key, with Bhargava arguing that a major impact could be achieved with financial education being introduced in schools and education institutions at early stages.
She also advocates for access to free financial resources across society and fostering a culture of financial well-being, including focusing on groups like culturally and linguistically diverse communities, youth groups, and indigenous communities.
“More financial grants should be available by government to run these programs,” she said.
Brokers could have an even bigger role in supporting financial literacy, with Julian saying providing clear, jargon-free advice and personalised education can support financial literacy.
“As knowledgeable and approachable professionals, brokers play a vital role in helping clients navigate complex financial choices and understand their options,” Julian said.
By demystifying the mortgage process and tailoring guidance to individual needs, brokers can “empower clients to make informed decisions”, she said, transforming what can often feel overwhelming into a chance “to build financial confidence and security”.
Bhargava said that brokers are in a position to act like financial educators by providing the right financial education and tools, including embracing technology to educate communities.
“Mortgage brokers are uniquely positioned to influence financial behaviour positively,” she said.
“By incorporating education into their service, they can empower Australians to make informed, confident financial decisions, not just about mortgages, but their entire financial futures.”
The effort could support the broking industry, which can benefit from educated customers.
“Educated clients are more likely to ask informed questions, understand the reasoning behind recommendations, and actively participate in the decision-making process to ensure their best interests are met,” Julian said.
“This engagement often leads to more favourable outcomes, as clients are equipped to choose solutions that align with their long-term goals, resulting in higher satisfaction and stronger loyalty over time.”
