How to become a mortgage broker in Alberta

For people in Alberta who want to help others buy their dreams homes, they should try entering the local mortgage brokering market. This profession will allow you to bridge aspiring homeowners with competent property loan providers. 

As an Albertan mortgage broker, you will assist your clients in getting the most suitable mortgage deals and advocate for their interests throughout the entire mortgage process. They will also be in charge of handling their clients’ cases from application to closing. 

Sounds like the ideal career for you? 

In this article, Canadian Mortgage Professional will discuss how to become a mortgage broker in Alberta. We will also talk about how much you can make in salaries and commissions. Want to know if you need a licence to become a mortgage broker in this Canadian province? Read on to learn more. 

What is a mortgage broker? 

A mortgage broker, as defined by the Real Estate Council of Alberta (RECA), is a person who deals in mortgages on behalf of another for compensation. To work as a mortgage broker in Alberta, you need to apply for a mortgage broker licence from RECA. You can only be exempted through local legislation. 

For those who are dealing with mortgages for their own benefit, you are not required to get a mortgage broker licence from RECA. The same is true if you lend your own money.  

Below, we have listed some activities which are considered by RECA as part of mortgage brokering. You must apply for a mortgage broker licence if you: 

• administer mortgages 

• collect mortgage payments 

• negotiate a mortgage transaction 

• hold oneself as a mortgage broker 

• buy, sell, or exchange mortgages or offer to do so 

• solicit a person to borrow or lend money secured by a mortgage 

As mandated by RECA, here are some individuals or groups that do not need a licence: 

• groups subject to regulations: 

• bank 
• credit union 
• treasury branch 
• loan corporation 
• trust corporation 
• insurance company 

• an agent or employee of a person referred to in the previous bullet 

• a member in good standing of The Law Society of Alberta acting in the course of and as part of the practice of law 

• an employee of a person dealing in mortgages as a principal while that principal is acting legally and while the employee is acting within the regular course of employment on behalf of that principal 

Successful mortgage professionals in the industry thrive due to their hard work and commitment. You can find some of them on our Best in Mortgage page. 

Steps to become a mortgage broker in Alberta 

Do you think that entering this province’s mortgage brokering market is good for your career plans? If it is, here are the steps on how to become a mortgage broker in Alberta: 

1. Meet the eligibility criteria of RECA 

2. Create a myRECA account and complete your application 

3. Finish the pre-licensing education requirements 

4. Get a background check 

5. Work for a mortgage brokerage 

6. Pass the licensing exams at RECA 

Let's take a closer look at each of these steps below: 

1. Meet the eligibility criteria of RECA 

Mortgage broker licence applications are regulated by RECA. To begin your journey, you must satisfy all their eligibility requirements. You need to be: 

• at least 18 years of age 

• proficient in the English language 

• able to lawfully study and work in Canada 

• able to provide specific government-issued identification (ID) 

• a high school diploma holder or have an equivalent educational degree 

2. Create a myRECA account and complete your application 

For the second step, you have to create a myRECA account online to start your application and eligibility process. If you want to learn more about creating an account, you can look at the tutorial provided by RECA. Once you are ready, log in to your myRECA account to complete the application and eligibility process. 

3. Finish the pre-licensing education requirements 

When you’re done completing your application with RECA, the third step is to finish the pre-licensing education requirements. You are required to take two pre-licensing courses at AMBA (Alberta Mortgage Brokers Association): 

• Fundamentals of Mortgage Brokerage  

• Practice of Mortgage Brokerage 

After completing the two courses, you must take and pass AMBA’s test. If you are successful, you can take the last step: complete RECA’s licensing exam. 

4. Get a background check  

You will need to obtain an original Certified Criminal Record Check (CCRC). You can get this from RECA since they will receive and process your background check. 

5. Work for a mortgage brokerage 

Once you are cleared from the fourth step, you must be employed by a mortgage brokerage of your choice. This is necessary because your employer will finish the last step in your licensing application. 

Watch this video to learn about three essential tips in choosing a mortgage brokerage in Alberta: 

6. Pass the licensing exams at RECA 

Take the licensing exams administered by RECA. Once you pass, you can finally obtain your mortgage broker licence and start working. 

How long does it take to become a real estate broker in Alberta? 

It depends on the timeframe provided by RECA and how long it takes you to qualify for and complete all requirements. If you experience bumps along the way, it might take more than six months or so. 

How much do mortgage brokers make in Alberta? 

Mortgage brokers can earn up to $129,346 every year in Alberta. As for their salary per month and per week, they have an average monthly pay of $10,778 and an average weekly pay of $2,487. 

Currently, Albertan brokers are paid approximately $62 on an hourly basis. These numerical figures are from ZipRecruiter’s report on the average broker salary. 

What is the commission for a mortgage broker in Alberta? 

The average mortgage broker commission in Alberta is between 0.5% and 1.2% of the mortgage amount borrowed by clients. 

Skills to become a successful mortgage broker in Alberta 

Aside from the requirements, there are also several essential skills that are great to have and develop to be successful in this career. Here are four of them: 

1. Effective communication 

2. Interpersonal skills for client-facing tasks 

3. Proficiency in financial analysis 

4. Knowledge of mortgage products and regulations 

Let us discuss them one by one: 

1. Effective communication  

Having good communication skills is needed to succeed as a mortgage broker. This is essential when discussing mortgage transactions with clients. This may also come in handy when negotiating with commercial banks and other mortgage lenders. 

Want to know how to improve your communication skills and be effective? Watch this video. This is also best for mortgage brokers in Alberta who want to build more connections: 

2. Interpersonal skills for client-facing tasks  

Strong interpersonal skills must also be developed if you want to thrive as a mortgage broker in Alberta. This is essential for building relationships with clients—which can lead to referrals. 

As a mortgage broker, it is possible to work closely with people who might feel confused or even nervous about the mortgage process. This is especially true for first-time buyers who are young and just starting out. 

Being approachable, helpful, and personable can help clients feel comfortable and supported. Gaining their trust while increasing your credibility is good for your career. This can translate to more prospects and free advertising by word of mouth. 

3. Proficiency in financial analysis 

A solid understanding of your clients’ finances is necessary. This is needed for reviewing your clients' monetary situation against the available home loan offerings. You must assess their income, credit history, and debt-to-income ratios to determine the best mortgage options for your clients. 

If you develop this skill, you will be able to present accurate information to mortgage lenders and have better chances of securing their approval. 

4. Knowledge of mortgage products and regulations 

Having in-depth knowledge of various mortgage products is important for mortgage brokers in Alberta. You also need to study and learn about the regulations governing them. Always be updated on any changes in mortgage interest rates as well as any legal requirements and compliance issues. 

Being well-informed allows you to provide valuable advice to clients. This will also help boost your brand as you will be seen as proactive and diligent. 

While there are other vital skills for succeeding as a mortgage broker in Alberta, it is best to have and develop these four from the beginning. As your career progresses, you will acquire additional skills and formulate new strategies to serve your clients effectively and improve your craft. 

Deciding whether to become a mortgage broker in Alberta or not 

Now that you know how to become a mortgage broker in Alberta, you have a guide to help you choose whether this fits your career goals or not. Still, both your personal and financial objectives should influence your decision. Consider the lifestyle you want and evaluate if it aligns with working as a mortgage broker in Alberta. 

Like most professions, you need to be 100% committed to this job, whether part-time or full-time. If you can, you should also go the extra mile to increase the demand for your services and credibility. Overall, you must work hard and stay focused to get closer to reaping your monetary rewards. 

What do you think about this guide on how to become a broker in Alberta? Do you have other tips to share? Feel free to share your thoughts in the comments section below.