How to become a mortgage broker in Ontario

For those who want to buy property, engaging the services of a mortgage broker is important. These professionals help their clients navigate the mortgage process and look for competitive home loan offerings for the latter. In Ontario, becoming a mortgage broker can be a fulfilling career—along with being stable and lucrative.  

In this article, Canadian Mortgage Professional will discuss how to become a mortgage broker in Ontario. 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 Ontario? Read on to know more. 

What is a mortgage broker? 

According to the Financial Services Regulatory Authority of Ontario (FSRA), a mortgage broker is a professional who deals or trades in mortgages for a licensed mortgage brokerage. Mortgage brokers in Ontario can also supervise the activities of one or more mortgage agents (levels 1 and 2). 

Become a mortgage broker in Ontario 

The FSRA requires that all individuals who are working as mortgage brokers must have a licence. 

Mortgage brokers may work with the following lenders: 

• financial institutions 
• mortgage lenders approved by the Canada Mortgage and Housing Corporation (CMHC) under the National Housing Act (NHA) 
• all other mortgage lenders; this can be: 
• mortgage investment companies 
• syndicates 
• private individuals 
• mortgage brokerages 

Do you need a licence to become a mortgage broker in Ontario?  

Yes. One of the first things to know about becoming a mortgage broker in Ontario is the licensing prerequisite. If you want to work as a broker, you need to apply to upgrade your mortgage agent level 2 licence with the FSRA. 

To apply for a mortgage broker licence, you should already have a licence to work as a mortgage agent level 2 for at least 24 months over the last 36 months. 

Requirements for getting an Ontarian mortgage broker licence 

For aspiring mortgage brokers in Ontario, you must meet the following criteria: 

• should be 18 years old or older 
• should be a resident of Canada 
• should have a valid email address 
• should be authorized by a mortgage brokerage to deal in mortgages 
• should have an Ontario mailing address that can receive registered mail; this must not be a post office box 

Educational requirements 

To become a mortgage broker in Ontario, you need to complete an approved mortgage agent education program for a mortgage agent level 1 licence. You also need to complete a similar education program for a mortgage agent level 2 licence or a private mortgage course approved by the FSRA. 

This requirement must be satisfied within two years before you apply for the mortgage agent level 2 licence.  

These FSRA-approved private mortgage courses are offered via: 

• Mortgage Professionals Canada 
• Canadian Mortgage Brokers Association – Ontario 
• Real Estate and Mortgage Institute of Canada 

You must finish a private mortgage course provided by those above within three years before applying for the mortgage broker licence with the FSRA. 

Suitability requirements 

To become a mortgage broker in Ontario, you are required to verify your suitability. As such, you need to confirm the following conditions to acquire a mortgage broker licence: 

• you are of good character and reputation 
• you are a suitable person to receive a licence and meet all licensing requirements 
• you are not engaged in any other business or occupation that would jeopardize your integrity, independence, or competence 
• you will hold yourself out publicly and carry out business in good faith as a mortgage broker in the name in which you are licensed 
• you are familiar with the laws of Ontario relating to the licensing of level 1 mortgage agents, level 2 mortgage agents, and brokers 
• you have provided all information about: 
• lawsuits 
• bankruptcies 
• criminal records 

decisions from other regulators or licensing bodies and other employment information 

Skills to become a successful Ontarian broker 

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 in Ontario. This is essential when discussing mortgage transactions with clients. This may also come in handy when negotiating with commercial banks and other mortgage lenders. 

2. Interpersonal skills for client-facing tasks  

Strong interpersonal skills must also be developed if you want to thrive as a mortgage broker in Ontario. 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, supportive, 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. 

Curious to learn how to improve your interpersonal skills? Check out this video. This is also best for aspiring mortgage brokers who are shy and introverted: 

3. Proficiency in financial analysis 

A solid understanding of your clients’ finances is necessary. This is needed for reviewing your clients' monetary situations 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 Ontario. You also need to study and learn about the regulations governing them. Always be updated about 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 Ontario, 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. 

Why are mortgage brokers needed in mortgage transactions? 

As a mortgage broker, you will spend most of your time assessing your client’s income statements and credit background. You need this information to search for property loans that suit their needs. 

Another reason why mortgage brokers play a vital role in mortgage transactions is because they make sure that clients can afford to repay the mortgage. They check their clients’ financial capacity to know whether they have the means to pay without being forced to live paycheck to paycheck. 

In other words, mortgage brokers act as the bridge between eligible borrowers and lending companies. They work on behalf of clients to find competitive mortgage rates and terms.  

What a typical day as a mortgage broker looks like 

A mortgage broker in Ontario can work with more than one mortgage lender in a single day. If necessary, they can contact more than ten home loan providers to find the best mortgage for their clients. So, once you become a broker, you will have to familiarize yourself with all of them. 

More contacts and partners mean more choices for your clients. Having a network of connections with mortgage professionals and real estate agents is beneficial for your business. 

Want to see how a typical day looks like for a mortgage broker in the country? Watch this clip: 

How much do mortgage brokers make in Ontario? 

Mortgage brokers can earn up to $129,346 every year in Ontario. 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, Ontarian 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 Ontario? 

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

Working as a mortgage broker in Ontario 

Now that you know how to become a mortgage broker in Ontario, you have a guide to help you decide whether this profession is for you or not. Like all careers in the mortgage industry, working as a mortgage broker is not easy. You need to compete with tons of other brokers who are vying to see themselves alongside the top names in the industry. 

Overall, working as an Ontarian mortgage broker can be greatly rewarding. You just need to give it your best shot and persevere. 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. 

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