How to become a mortgage broker in BC

Mortgage brokers assist clients in finding the best home loan based on their financial situation and credit history. They play a key role in guiding buyers throughout the mortgage process.  

If you want to help eligible borrowers achieve their dream of homeownership, consider a career in the mortgage broking industry. This is a great fit if you enjoy communicating with people and connecting them with financial institutions. 

In this article, Canadian Mortgage Professional will explore how to become a mortgage broker in British Columbia. We will go over the requirements and steps to help you decide whether this career is for you.  

Who are considered mortgage brokers in BC? 

The Mortgage Brokers Act in BC has specified the following as businesses as those which are required to be registered as mortgage brokers: 

• corporations  
• branch offices  
• partnerships  
• sole proprietors 

These organizations need registration before they can legally engage in mortgage broker activities. Under the law, a mortgage broker is any person who: 

• carries on a business of collecting money secured by mortgages 

• lends money on the security of 10 or more mortgages (in any one year) 

• carries on a business of buying and selling mortgages or agreements for sale 

• carries on a business of lending money secured in whole or in part by mortgages 

• holds themselves out as a mortgage broker, or by an advertisement, notice, or sign, indicates that they are a mortgage broker 

• receives an amount of $1,000 or more in fees or other consideration (in any one year), excluding legal fees, for arranging mortgages for other persons 

 
Photo alt text (not a caption, so this should not appear on the web page): iconic Gastown Steam Clock at night in Vancouver BC  

Want to become a mortgage broker but not a British Columbian? You can start your journey as a mortgage broker in any Canadian province when you read this guide. 

Becoming a mortgage broker in BC 

If you live in BC and want to become a mortgage broker, you need to follow the steps required by the BC Financial Services Authority (BCFSA). We have broken them down into two steps for easier understanding: 

1. complete the education requirements 

2. register as a new mortgage broker via BCFSA website 

Let’s talk about these two steps below: 

1. Complete the education requirements 

For sole proprietors and submortgage broker applicants, you need to finish the necessary courses before you can register as a new mortgage broker in BC. You must complete any of these courses or programs: 

• Mortgage Brokerage in British Columbia 

• A diploma in Urban Land Economics, or its three core courses: 

• 111 Real Property Law and Ethics 
• 121 Foundations of Real Estate Mathematics 
• 221 Real Estate Finance in a Canadian Context 
   
• a Bachelor of Commerce degree with a specialization in real estate 

After finishing the Mortgage Brokerage in British Columbia educational course, the next phase is to apply for registration. You should do this within one year of writing the examination. 

2. Register as a new mortgage broker via BCFSA website 

After finishing the required educational courses, you can now proceed with the registration. You can do this online through the BCFSA website. If you are successful, you will become a newly registered mortgage broker in BC. 

If you are operating as a corporation, you need to register and appoint a Designated Individual (DI). Your DI will speak as a representative of your corporation and will be accountable for it. Here are the qualifications for a DI: 

• they must be a sole proprietor 

• they must be a submortgage broker at the mortgage brokerage 

• they must be a general partner in a mortgage broker partnership 

• they must be an officer (and) or director of a corporate mortgage broker and reflected as such on BC Registry 

Once you complete your registration, you can now become a mortgage broker in BC. To start, you should do some heavy research about the local house prices. Here are five things that you should know about property prices in BC: 

Getting started as a new mortgage broker 

Here are two things that you should do as soon as you become a mortgage broker in BC. While these cannot guarantee your success, they are vital stepping stones especially when you are new to the business:  

Build, advertise, and network 

You must build your brand especially when you’re still starting out as a mortgage broker. This means advertising online and networking with different professionals and institutions from related industries. This can build referral sources and can provide you with additional knowledge about the mortgage sector. In turn, you will be able to provide better service for your clients. 

Stay updated and keep learning 

Staying updated with the latest in the industry is a must. You should refresh what you know about the home loan offerings of your partner lenders, as well as their varying policies.  

Feeling motivated enough? Read this and start your career as a mortgage broker in Canada now! 

How to succeed as a mortgage broker in BC  

To become a mortgage broker in BC, you need to navigate multiple stages and processes. Once you become one, succeeding as a broker then takes it a step further. This career might be challenging, but it is achievable. 

With dedication and perseverance, aspiring mortgage brokers can get on top of the competition, continuously attract clients, and gain referrals. Establishing trust with commercial banks and other lending companies is critical. This will give you a significant advantage, especially over time. 

Want to learn more about succeeding as a mortgage broker in BC? Here are some tips: 

1. Be ready to provide several options 

2. Be clear about your fees and other costs 

3. Share evidence of your achievements 

Let’s explore each of these tips below:  

1. Be ready to provide several options 

As the saying goes: different strokes for different folks. You should expect that clients will have varying mortgage needs and unique financial situations. To succeed as a mortgage broker, you must be able to: 

• answer all their questions 

• explain many types of mortgage in detail 

• introduce alternatives depending on their goals and needs 

Watch this video about the secrets of how to become a successful mortgage broker: 

Follow these tips and you might see your name with the leading brokers in the country. To get inspiration, see our special report on the 75 Best Mortgage Brokers in Canada. 

2. Be clear about your fees and other costs  

You must always be clear about your fees and other costs with your clients. Know how to handle their expectations and don’t be afraid to hold tough conversations. After all, borrowing a huge sum of money can be terrifying and not everyone will be happy with the options you provide. 

As much as possible, try to make discussions less intimidating for your clients. You can do this by always sticking to the facts and laying down all the critical information that they need to know. It is also beneficial to develop your communication skills. Try to speak in a professional, calm, and reassuring tone to ease your clients’ worries. 

3. Share evidence of your achievements 

A vital part of your job as a mortgage broker is to ease the minds of your clients—especially when they are overwhelmed about their expense. You can gain their trust by providing them with positive reviews from your previous clients. You should also let them know about your qualifications. 

To do this, try displaying your awards and certifications inside your office. You can also showcase your achievements online. Collect personal endorsements from your networks, especially previous clients. Putting them on display will help build your prospective leads’ confidence in your capabilities. 

How much does a mortgage broker make in BC? 

For the commission, mortgage brokers can usually earn from 0.5% to 1.2% of the mortgage value. The average salary of a mortgage broker in British Columbia is $129,346 per year. If you calculate this, it will be $62.19 an hour, $2,487 per week or $10,778 per month. 

This is higher than the national average salary which is $115,900 annually. These figures are taken from ZipRecruiter's latest data. 

How much can you charge as a mortgage broker? 

Following the figures above, you can charge a fee within the average salary range of mortgage brokers in BC. As you gain more clients and experience, you might have the opportunity to ask for a higher fee. Ultimately, this will depend on your marketability or the demand for your services as a broker. 

Is being a mortgage broker a good career in BC? 

Now that you know how to become a mortgage broker in BC, you can decide if this career aligns with your personal and professional goals. 

This profession gives you the chance to help people achieve their dream of homeownership. You will also have a job that offers good income potential, which can lead to financial stability. 

As a mortgage broker, you can positively impact people's lives while building a rewarding career. If this matches your long-term plans, then this profession might be right for you. 

What did you think of this guide on how to become a mortgage broker in BC? Let us know in the comments below