How to get a mortgage broker licence

Working as a mortgage broker in Canada can be a rewarding career in terms of finances and stability. At the same time, it can also be fulfilling since you will have the opportunity to help others reach their goal of buying a property. 

If you think that you have what it takes to succeed in this profession, there are a few things that you need to do first. For instance, working as a mortgage broker in Canada is allowed only when you have a licence. 

Want to know how to apply for one? 

In this article, Canadian Mortgage Professional will shed light on how to get a mortgage broker licence in Canada, particularly in Ontario. This is where Toronto, the country’s biggest city by population, is located. We will discuss why a mortgage broker licence is necessary as well as the requirements and steps to get it. We will also provide answers to the following questions: 

• Do you need a licence to be a mortgage broker in Ontario?
   
• How much do mortgage brokers make in Ontario?
     
• Is it hard to become a mortgage broker in Canada?
     

What is a mortgage broker licence? 

A mortgage broker licence in Canada is a certification that allows individuals or businesses to operate as mortgage brokers. They need this licence to broker a home loan between borrowers and lenders. Licensing usually varies by province and territory. The steps to apply for it typically include the following: 

• completing an approved mortgage broker education course
   
• passing a competency exam or a pre-licensing exam 
   
• meeting specific requirements such as age, residency, and education
   
• joining a mortgage brokerage to complete licensing
   

On the provincial level, the Mortgage Broker Regulators' Council of Canada (MBRCC) is the regulatory authority that governs mortgage licensing. It is also an association of mortgage broker regulators in the country. We have also compiled the regulatory bodies that govern each province in Canada: 

• Alberta - Real Estate Council of Alberta (RECA)
   
• British Columbia - BC Financial Services Authority (BCFSA)
   
• Manitoba - Manitoba Securities Commission (MSC)
   
• New Brunswick - Financial and Consumer Services Commission (FCNB)
   
• Newfoundland and Labrador - Service NL, Government of Newfoundland and Labrador
   
• Nova Scotia - Service Nova Scotia and Municipal Relations (SNSMR) 
   
• Ontario - Financial Services Regulatory Authority of Ontario (FSRA)
   
• Prince Edward Island - Prince Edward Island Real Estate Association (PEIREA) 
   
• Quebec - Autorité des marchés financiers (AMF)
   
• Saskatchewan - Financial and Consumer Affairs Authority of Saskatchewan (FCAA)
   

Why is a mortgage broker licence necessary? 

A mortgage broker licence is a legal requirement. You cannot work legally without a licence in any Canadian province. Aside from its legal implications, having a mortgage licence will also enhance your trustworthiness. It helps you build a connection with clients based on integrity and trust.  

A mortgage broker licence can prove that you are complying with the legal and ethical standards of your province or city.
 

Working without a licence 

Working as an unlicensed mortgage broker can result in varying degrees of penalties. This can include fines and legal action. You are also at risk of losing your credibility and ruining your career.
 

How to get a mortgage broker licence in Canada 

To get a mortgage broker licence in Canada, you need to qualify for a specific set of criteria. This varies from one province (or city) to another: 

1. age limit
    
2. residency
     
3. educational requirements
     
4. background check 

Let us briefly talk about each criterion below: 

1. Age limit 

You need to be at a certain age to get a mortgage broker licence in Canada. The age requirement can be different from some locations. However, the general rule is you need to be at least 18 years old. 

2. Residency 

Most (if not all) locations will require you to be a citizen of Canada. Only then can you get a mortgage broker licence to work legally as one. 

3. Educational requirements 

There are many pre-licensing courses set by the governing bodies of your province of city. You have to complete all of these courses to get to the final stage of getting a mortgage broker licence. 

4. Background check 

You will also need to have your background check as proof of character when you apply to get a mortgage broker licence. Find out how these evaluations are conducted in this clip: 

Working as a mortgage broker in Ontario 

Since Toronto is the largest city in terms of population, we will focus on where it is located: the province of Ontario. 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). 

The FSRA requires that all individuals working as mortgage brokers must have a licence from them. 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; these 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 how to become a mortgage broker in Ontario is the licensing prerequisite. If you want to work as a mortgage 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 have had 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 qualify for 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

Now that you know how to get a mortgage broker licence in Ontario, the next goal is to succeed in this career. Watch this clip to get started: 

Your success as a mortgage broker depends on your skills, perseverance, and hard work. If you’re looking for the best role models in Canada’s mortgage industry, read our special report on the 75 best mortgage brokers. 
 

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. 

Is it hard to start as a mortgage broker? 

Just like any other profession, starting a career as a mortgage broker can be challenging. This career is suited for those who are ready to commit and work hard to succeed. For beginners, learning how the best in the mortgage industry work their way to the top can be beneficial. 

And for these brokers who have established themselves in the business, there are many rewards waiting for them. These can include competitive earnings in terms commissions as well as building a network with big banks and mortgage lenders. 

Partnering with famed home loan providers might give your career a boost. Check out the best mortgage lenders in Canada on our special report. 

What special preparations will you be making to get your mortgage broker licence? Tell us in the comments section below.