Whether you are switching careers or deciding on your very first career, becoming a licensed mortgage broker can be a fantastic, rewarding choice.
Let me begin by defining a mortgage broker’s role, because over the years it has evolved. A mortgage broker (or a mortgage agent or broker in Ontario, broker or sub-broker in British Columbia or mortgage associate in Alberta) is a conduit between a lender and a borrower. A broker may also arrange a private mortgage for a borrower, or a syndicated mortgage, depending on the regulatory requirements in the jurisdiction in which the broker is licensed.
In other words, a mortgage broker can arrange financing for a borrower as well as mortgage investments for investors. In being able to do both a broker can assist a consumer in two of life’s major goals; investing in a home and investing for retirement or wealth creation.
Many don’t consider a career as a mortgage broker simply because they don’t fully comprehend the incredible breadth of opportunity that a career as a mortgage broker can offer. In Ontario, becoming a mortgage broker/agent is one of the least expensive career routes that you can take, while offering you virtually unlimited income potential. Scroll down to see the costs of becoming a mortgage broker in Ontario.
What does it take to become a mortgage broker/agent?
In Ontario, to become a licensed mortgage broker/agent you must:
- Pass the mortgage agent course – click here for information on the course
- Get hired by a licensed mortgage brokerage – click here for information on getting hired
- Get licensed by the regulator, the Financial Services Commission of Ontario (FSCO)
The Real Estate and Mortgage Institute of Canada Inc. (REMIC) is a certified educational institution by Human Resources and Skills Development Canada (HRSDC). As such REMIC’s courses are tax free.
In addition REMIC offers a free job placement assistance program designed to assist graduates in obtaining employment with a licensed mortgage brokerage in Ontario.
REMIC is the leading provider of the mortgage course in Ontario, with over 44% of the province’s newly licensed agents having passed the REMIC course (according to FSCO).
Mortgage brokering in Ontario is regulated by the Financial Services Commission of Ontario (FSCO) and requires a license. To obtain a license you must first pass an accredited course. The Real Estate and Mortgage Institute of Canada Inc. (REMIC) is accredited by FSCO to provide the course. For more information please visit us at www.remic.ca/getlicensed or call us at 877-447-3642.
What does it take to be a successful mortgage broker/agent?
The answer to this question is both simple and complex. First, most brokerages’ compensation is commission based, similar to how real estate agents are paid. While there are a few brokerages that pay a salary, the vast majority are commission based. This is not a bad thing. The income potential on commission is far superior to that of a salaried employee.
To be successful requires at least the following:
- Ethics – strong ethics in any financial services industry is a must; they will ensure that you have a long career and the respect of your peers
- The ability to network – you must learn how to meet new potential clients and referral sources
- A flexible schedule – you must be able to take appointments when your clients are available, not just when you are
- Determination – it’s not always easy, but it’s almost always worthwhile. Stay determined to succeed
- Knowledge – learning the basics is the first step; ongoing training and upgrading of your skills on an annual basis is necessary to stay on top of product innovations and new trends
- Financial stability – because this is a commissioned position you will need the financial ability to go without any commission for the first few months. You’ll need that long to get clients and get paid. Some successful brokers have begun their careers working part-time, although that greatly increases the difficulty of becoming successful.
- An open mind – success in any field requires a person to be open to new ideas and new ways of doing business. This is no different. For example, doctors need mortgage brokers just as much as those who can’t get approved through their bank. So do lawyers. Wealthy investors looking for higher rates of return can be you client. While an overused cliché, the phrase “think outside of the box” is still a good one.
- A plan – a university graduate came straight into this field from school. Why was he successful in his first year? He created a business plan and followed it. Creating a good business plan is all about research. Know your market, know your competition, your strengths and weaknesses and make a plan that takes all of those variables into account. Then follow that plan. A well laid out plan can be the difference between success and failure.
- Follow up – Not everyone makes a decision the moment you speak with them. A potential client may not decide to buy that house or refinance their mortgage when they first speak to you. Ensure that you have a plan to follow up with all of those “warm leads” as the days and months go by and you’ll convert a fair number of them into commission generating clients.
- Embrace the internet – your website can be more than just a static page, it can be a great lead generator if done properly. Spend the time to research how to use your website to generate new leads for your business and you’ll be far ahead of your competition. If you don’t think you’re capable, research paying someone to do it for you. But don’t pay too much! You can spend a few hundred dollars to get the same results that you would by spending a few thousand on your website. Manage your money wisely.
What are the costs involved in becoming a licensed mortgage broker/agent in Ontario?
To begin your journey in your new mortgage career you will need to take the mortgage course. REMIC’s course, considered by many to be the best in the industry, is also the least expensive ranging from $298 to $345. This cost includes the textbook, online access with interactive exercises, video tutorials and exam guides, as well as one free exam rewrite, if necessary.
Once you’ve passed the course you will need to be hired by a brokerage. You will be required to pay errors and omissions insurance, which may cost you approximately $300 to $400 dollars. You may also be required to join a trade association, although this is not a requirement to being licensed.
You will then have to pay for your license to FSCO. Here is a breakdown of the costs to FSCO to begin your mortgage career:
Licenses come up for renewal every two years, with the next renewal on March 31, 2016 (the last one was March 31, 2014). The fee is calculated like this: $100 + (# of months to March 31, 2016 x $30).
For example, if you applied for a license on December 1, 2014 then you would pay an application fee of $100 plus (16 months to March 1, 2016 x $30) = $100 + $480 = $580
In total your new career should cost you approximately $1,500 to get started. Your income potential is unlimited, making this a great investment.
In conclusion, a career as a mortgage broker can be as rewarding as any high-end career that you may be contemplating, if you have the right attitude. That can be said about any career, but not all careers come with all of the benefits that this one does. It’s not for everyone, but if it is for you I hope this article will help you to make an informed decision.
The mortgage brokerage industry in Canada continues to grow, offering a wide range of opportunities for those looking to establish a fulfilling career. With mortgage brokers playing a crucial role in over 40% of residential mortgage originations in Canada, the demand for skilled professionals is undeniable. This article will guide you through the steps to becoming a successful mortgage broker, highlighting key data that demonstrates the growth and potential of this career path.Why Choose a Career as a Mortgage Broker?
High Demand and Job Security
Mortgage brokers are essential players in the Canadian housing market. As housing prices rise and lending regulations tighten, more Canadians are turning to brokers for expert guidance. The CMHC’s Residential Mortgage Industry Report notes that over 40% of new mortgage balances in Canada are arranged through brokers, reflecting the growing reliance on their expertise (CMHC) (CMHC)
Growth in the Mortgage Market
Canada’s mortgage market is robust, with total residential mortgage debt reaching CAD 2.16 trillion in early 2024. While growth has slowed slightly, the market remains strong, with expectations of increased demand for housing and further growth in mortgage debt (CMHC – SCHL) (CREM).
Potential for High Earnings
Mortgage brokers in Canada enjoy significant earning potential. According to recent data from Job Bank Canada, mortgage brokers typically earn between CAD 21.63 and CAD 71.79 per hour, depending on the region and their level of experience. This translates to an annual income range of approximately CAD 45,000 to CAD 150,000, depending on the number of deals they close and the commissions they earn (Job Bank). Many brokers also choose to start their own brokerage firms, which can further increase their income potential.(Job Bank)
Flexibility and Independence
One of the most appealing aspects of a career in mortgage brokerage is the flexibility it offers. Brokers can choose to work independently, allowing them to set their schedules and manage their workload. This independence also opens the door to entrepreneurship, as brokers can establish their own brokerage firms, further enhancing their income potential.
Diverse Career Opportunities
Beyond arranging mortgages, brokers can diversify their services to include financial consulting, real estate investment advising, and life insurance services. Dual licensing, which includes both mortgage brokerage and life insurance, can significantly increase a broker’s value to clients and create additional income streams.
How to Get Started
To begin your career as a mortgage agent or mortgage broker, enrolling in a recognized mortgage agent course is essential. REMIC offers a variety of course options that cater to different learning preferences and schedules, ensuring that you can find the right fit for your career goals. Here’s a breakdown of the available courses:
- Online Mortgage Agent Course: Ideal for those who prefer flexibility, this self-paced course provides all the tools you need to succeed. It includes access to video tutorials, online forums, and quizzes. Learn more about this course here.
- Live Webcast Course:If you prefer live interaction with an instructor, REMIC offers a live webcast course that runs over 5 days or on weekends. This format is perfect for those who thrive in a structured learning environment. Find out more details here.
- In-Class Mortgage Agent Course: For those who prefer face-to-face learning, REMIC provides in-class training with in-person interactions. This option is great for those who benefit from a classroom setting. Discover more about this course here.
Upon completion of any of these courses, you will be prepared to pass the required exam and obtain your license as a mortgage agent in Ontario.
Boosting Your Income with Dual Licensing
For those looking to increase their earning potential, dual licensing is a strategic move. By obtaining both a mortgage agent and a life insurance license, you can offer your clients a more comprehensive range of financial services. REMIC offers a Life Insurance Course (HLLQP), which allows you to become a licensed life insurance agent in Canada.
Special Summer Discount: Take advantage of REMIC’s special offer on the Life Insurance Course! Use promo code HLLQP_2024 to get $50 off your enrollment. Whether you prefer self-paced learning or live webinars, REMIC provides flexible options to suit your needs. Learn more and apply the promo code by visiting REMIC Life Insurance Course.
Conclusion
Starting a career as a mortgage agent or mortgage broker begins with the right education. REMIC’s courses provide the tools and resources you need to succeed in this field. For those looking to maximize their income and opportunities, dual licensing with both a mortgage and life insurance license is an excellent strategy. Take advantage of REMICs flexible learning options and special summer discounts to start your journey today.
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If you’re looking for a fulfilling career in the finance industry, becoming a mortgage broker might be the perfect fit for you. As a mortgage broker, you act as a liaison between borrowers and lenders, helping people find the best mortgage options for their unique needs. Not only can this career path offer you a lucrative income, but it can also provide you with a sense of satisfaction from helping people achieve their dreams of homeownership. In this article, we’ll take a closer look at the advantages of being a mortgage broker.
Financial stability
First and foremost, becoming a mortgage broker can provide you with financial stability. The housing market is always growing and evolving, which means there is a steady demand for mortgage brokers. Additionally, the commission you earn on each mortgage deal can be quite substantial, which means you have the potential to earn a high income. As a mortgage broker, you’ll also have the ability to work for yourself, giving you even more control over your income and work schedule.
Helping people achieve their dreams
Another advantage of being a mortgage broker is the ability to help people achieve their dreams of homeownership. For many people, buying a home is the biggest financial decision they will ever make. By providing guidance and advice, you can help your clients find the best mortgage options for their unique needs and budget. This can be incredibly rewarding and can give you a sense of satisfaction from helping people achieve their goals.
Lifelong learning and growth
In addition to financial stability and a sense of satisfaction, becoming a mortgage broker can also offer you the opportunity to constantly learn and grow. The housing market is always changing, which means you’ll need to stay up-to-date with the latest trends and regulations. This can be challenging, but it also means you’ll always be learning and developing new skills. If you enjoy learning and being challenged, becoming a mortgage broker could be the perfect career path for you.
Flexibility: work from anywhere
Finally, becoming a mortgage broker can give you the flexibility to work from anywhere. As long as you have a laptop and an internet connection, you can work from home or anywhere in the world. This can be especially appealing if you enjoy traveling or if you have family obligations that require you to be at home. By working remotely, you can have more control over your work-life balance and enjoy the freedom of being your own boss.
Conclusion
In conclusion, becoming a mortgage broker can be an incredibly rewarding career path. With the potential for financial stability, a sense of satisfaction from helping people achieve their dreams, constant learning and growth, and the flexibility to work from anywhere, there are many advantages to pursuing this profession. So if you’re interested in a career in the finance industry, consider becoming a mortgage broker and start enjoying the benefits today!
For more information on our courses, visit remic.ca
For more information on licensing requirements visit the regulator’s website at https://www.fsrao.ca/licensing/mortgage-agent
A career as a mortgage broker
A career as a mortgage broker or agent can be both financially and personally rewarding. As the individual responsible for bringing borrowers and lenders together, you will typically be compensated by the lender in the form of a finder’s fee or commission based on a number of basis points (bps) multiplied by the amount of the mortgage. In other cases, where you are dealing with a borrower who doesn’t qualify with a traditional lender, you may arrange the mortgage with a private lender. In this case you would charge the borrower a brokerage fee that would be deducted directly from the mortgage proceeds.
Income of a mortgage broker
It is important to be mindful of the fact that your role is to always do what is in the best interests of your clients, while being concerned with your own income last. In this way you will always be conducting yourself in a professional and ethical manner.
With this in mind we can take a look at a typical transaction. The typical finder’s fee or commission paid by lenders in today’s marketplace is 85 basis points (.85%), which is referred to as 85 bps. If you have arranged a mortgage in the amount of $300,000, then your brokerage would be paid a finder’s fee of 85bps x $300,000, or .0085 x 300,000 which equals $2,550.
Mortgage broker’s commission split
Mortgage agents work on a commission split with their brokerage. For experienced mortgage agents the split can be, on average, 85/15 (the agent receives 85% of the commission). This would equate to a commission payable to you of $2,167.50. For new mortgage agents the split will typically be less until the brokerage has determined that the agent has gained an appropriate level of experience.
The average transaction will take approximately 6 hours to complete (this is an average; some will be longer while others shorter and this amount of time is typically spread over several days). By dividing the commission by the number of hours ($2,167.50 / 6) we can determine that you would have earned $361.25 per hour for this transaction. If an agent were to average 1 transaction per day, his or her income would be approximately $520,200 per year ($2,167.50 x 20 business days per month x 12 months).
Now that we’ve discussed the upper end of an agent’s income potential, let’s discuss the reality for new agents.
Mortgage brokering in Ontario is regulated by the Financial Services Commission of Ontario (FSCO) and requires a license. To obtain a license you must first pass an accredited course. The Real Estate and Mortgage Institute of Canada Inc. (REMIC) is accredited by FSCO to provide the course. For more information please visit us at www.remic.ca/getlicensed or call us at 877-447-3642.
A new agent will typically not have an income for the first three months of his or her career. It takes time to find clients, then it takes time to close or fund the transaction, followed by receiving your commission. A new agent should expect to see an income after the first three months, and should be, given industry averages, aiming for 3 funded transactions per month at the end of his or her first year. An average of 3 fundings per month would equal an income of $78,030 per year.
Of course these are only averages. A highly successful agent may earn substantially more than this amount in his or her first year, while another agent may earn substantially less.
As you continue on your new career path as a mortgage agent it is important to note that many agents earn six figure incomes while others do not; the potential is directly related to the time, effort and expertise, among other factors, of the agent.
As you can see, this can be an extremely rewarding career. Agents have the potential to earn significant incomes while helping borrowers find the product that best suits their needs and circumstances. In performing your duties professionally and ethically you will earn the respect of your industry peers, and develop a fulfilling life long career.
