How to become a mortgage broker in Canada

If you want to help aspiring property buyers achieve their homeownership dream, the mortgage broking industry might be for you. This is especially true if you have a talent in communicating with people and connecting them with financial institutions. Mortgage brokers help their clients find the best home loan for them based on their present financial situation and their credit history.  

In this article, Canadian Mortgage Professional will explore how to become a mortgage broker in Canada. We will go over the requirements and steps to help you decide whether this career is for you. We will also talk about how much mortgage brokers make per deal. Do mortgage brokers make good money in Canada? Read on to find out. 

How to become a mortgage broker in Canada 

To become a mortgage broker in Canada, you need to qualify for the criteria set by the province where you plan to work. Licensing requirements might vary from one place to another. However, you will find that regulations are the same across many areas. 

As a general coverage, here are the steps to follow on how to become a mortgage broker in Canada:   

1. finish the educational requirements   
2. join a mortgage brokerage 
3. get your mortgage broker licence   

Here is a closer look at each of the steps to becoming a mortgage broker:  

1. Finish the educational requirements 

The first step is to complete the entry-level educational requirements in your province. Since the educational criteria might vary between provinces, you must prepare and do the research for your specific region. 

There are also different terms used in each province which refer to mortgage brokering professionals. These can be: 

• mortgage agent 
• mortgage associate 
• submortgage broker 
• mortgage salesperson 

2. Join a mortgage brokerage 

Once you have completed the educational requirements specific to your province, the next step is to find a company or brokerage that you can join. Prior to making your commitments, be sure to ask questions about their training and support. You might also research about these firms’ work styles to check if they are ideal for your professional goals.  

3. Get your mortgage broker licence    

The final step on how to become a mortgage broker is getting your licence. In this stage, your mortgage brokerage will assist you with the registration part of the process. 

After completing the application forms and other necessary paperwork, your province’s governing authority will provide you with your mortgage broker licence. For instance, if you live in Alberta, your governing authority is Real Estate Council of Alberta (RECA). If you live in Ontario, it will be the Financial Services Regulatory Authority of Ontario (FSRA). 

Mortgage brokers are required to get a mortgage broker licence in the following areas: 

• Ontario 
• Manitoba 
• Labrador 
• Nova Scotia 
• Saskatchewan 
• Newfoundland 
• New Brunswick 
• British Columbia 

Once you get your licence, you will be able to start your new career as a mortgage broker. 

Getting started as a new mortgage broker 

Here are two things that you should do as soon as you become a mortgage broker in Canada. 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.  

Watch this video to know more about getting started to work as a mortgage broker in Canada: 

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

How to succeed as a mortgage broker in Canada  

To become a mortgage broker in Canada, you need to navigate multiple stages and processes. Once you become one, succeeding as a broker then takes it a step further. Still, 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 Canada? 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 us 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 mortgages in detail 

• introduce alternatives depending on their goals and needs 

Watch this video about the secrets of becoming 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. 

Optional steps 

You can also take optional steps to further enhance your brand as a mortgage broker in Canada. These steps are not required, but are beneficial nonetheless: 

1. get accreditation 

2. upgrade licensing or registration 

3. expand your business 

4. take on leadership roles 

Let us further explore these optional steps one at a time: 

1. Get accreditation 

The first optional step to increase your credibility as a mortgage broker is to get accreditation. You can stay on top of the game by becoming an Accredited Mortgage Professional of Canada (AMPC). You need to finish four courses to get this accreditation: 

• AMPC 1: Understanding Real Estate Transactions 
• AMPC 2: Residential Mortgage Underwriting from a Lender's Perspective 
• AMPC 3: Understanding Specialized Mortgages 
• AMPC 4: Ethical Practice in the Mortgage Industry 

You can also apply to be designated as a Preferred Mortgage Professional of Canada (PMPC) by taking these four mandatory courses: 

• PMPC 1: Business Management 
• PMPC 2: Sales and Marketing 
• PMPC 3: Specialized Mortgage Topics 
• PMPC 4: Introduction to Leadership 

2. Upgrade your mortgage licence     

You can also upgrade your mortgage licence by getting the required years of experience as a licensed mortgage agent in Canada. You can level up your registration status by completing the senior- or broker-level educational requirements. However, each province has its own set of requirements for licence upgrade. For instance, in Ontario, you can upgrade your level 1 licence to level 2. 

3. Expand your business 

As you gain experience and attract more clients, you can expand your business by doing any of these:  

• hire an assistant  
• build and manage a team  
• start your own mortgage brokerage 

Want to know more about expanding your business? Here's how to create your own mortgage brokerage as a business owner. 

4. Take on leadership roles 

Once you become a seasoned mortgage broker, it is good to share your knowledge in the field to help improve the profession. This can even create new opportunities for you. Here are some ways you can give back: 

• become a team leader 
• mentor new mortgage professionals 
• present at education sessions or industry events 
• join a committee in the mortgage industry 

How much do mortgage brokers make per deal in Canada? 

This depends entirely on the amount of money that their clients can borrow. As for the commission, mortgage brokers can usually earn from 0.5% to 1.2% of the mortgage value. 

Do mortgage brokers make good money in Canada?  

Yes. Basing on the commission alone, a mortgage broker can earn thousands of dollars for a mortgage value amounting to $200,000 and above. This does not include their average salary per month that can climb up to $115,900 per year. 

Why should you work as a mortgage broker in Canada? 

Now that you’ve learned how to become a mortgage broker in Canada, you can evaluate if this career suits your personal and professional goals. At its core, this profession offers the chance to help people achieve their dream of homeownership. It also provides opportunities for income potential which can turn into financial stability. 

Working as a mortgage broker allows you to make a positive impact on people's lives while building a fulfilling career. If this fits your long-term plans, then this profession is for you. 

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