How To Become Mortgage Broker In Ontario (2023)
The mortgage loan procedure is managed by a mortgage broker, who acts as a middleman. The mortgage broker operates as a go-between for mortgage borrowers and lenders.
To become a licensed mortgage broker in Ontario, you must first complete the mortgage broker educational requirements, then obtain a mortgage agent’s license before applying to upgrade to a licensed mortgage broker.
A mortgage broker’s job is to connect a mortgage borrower (who needs funding or a loan) with a mortgage lender (who is willing to lend money in exchange for a fixed interest rate) and find the best fit in terms of the borrower’s financial situation and the lender’s interest rate needs; however, the broker does not use his own funds but rather, earns a commission at the end of the deal, this commission is usually called an origination fee.
Using a mortgage broker has several advantages, the most common being that they save you the stress and time of searching for available lenders and they also help protect both the lender and the borrower by ensuring that all relevant financial documents are collected and legal disclosures are understood by both parties.
How To Become Mortgage Broker In Ontario?
A mortgage broker is also known as a mortgage loan officer and the requirements needed to be one varies from state to state but what remains constant is that you have to at least have a high school diploma, pass pre-licensure exams then apply for licensing.
If you are looking forward to becoming a Mortgage Broker in Ontario, here are the steps you should follow:
1. Get a High School Diploma
It is necessary to get a formal entry-level education. You will need to have fundamental knowledge in courses like mathematics and business courses.
2. Complete the Mortgage Broker Education Program
To meet the educational requirements, you will need to enroll in a mortgage educational program which is regulated by the Finances Services Commission of Ontario (FSCO) now known as the Financial Services Regulatory Authority of Ontario (FSRA)
This education program was developed by experts to ensure that the standard of education given actually matches with the actual practice in the real world. The program focuses on skills and knowledge required to handle a brokerage and ensure that it complies with all applicable rules. Some of the approved mortgage education providers include;
- Mortgage Professionals Canada (MPC)
- Canadian Mortgage Brokers Association Ontario (CMBA)
- Real Estate and Mortgage Institute of Canada Inc. (REMIC)
- Seneca College and other community colleges
The mortgage course can take as little as five days to be completed but you have up to 6 months to complete the course, otherwise, you start all over. After course completion, you will be required to sit for a final in-person examination.
3. Get Hired Under a Brokerage
This is a very important step in your journey of becoming a mortgage broker. You have to apply as either a part-time or a full-time worker under any principal brokerage. The importance of this is for you to get further training, adequate experience, and support. You will also need the authorization of this brokerage to deal and trade in mortgages.
4. Obtain a Mortgage License
After successful completion of the mortgage broker education program, you must obtain a mortgage agent license within 2 years after completion. This license allows you to work under the broker name registered in the license, the means that you will not be licensed to work for more than one brokerage.
The cost of application for a license is usually about $941 and you will also be required to pay an additional fee to cover your portion of your brokerage’s errors and omissions insurance (E&O). the total requirements for applying for a license include;
- Your personal information
- A principal broker
- Official documentation about your business
- A copy of your E&O insurance certificate
- An Ontario mailing address
After getting a mortgage agent license, you can go ahead to upgrade it into a mortgage broker license after two years. The difference between these two licenses is that having a broker license makes you eligible to supervise mortgage agents and also be the principal broker of a mortgage brokerage.
Mortgage brokering is a very lucrative career choice and asides from the educational and licensing requirements, a professional mortgage broker has to develop themselves in various skills; good communication, confidence, proper understanding of sales and marketing, etc.
Requirement of a Mortgage Broker in Ontario
- Must be at least 18 years old
- Must reside in Canada
- Must have a high school diploma
- Must have successfully completed the mortgage broker education program and passed the required exam
- Must be hired and authorized under a principal broker
- Must work under only one mortgage broker
- Must have an active mailing address in Ontario (not a post office mailbox)
- Must be licensed first as a mortgage agent before upgrading to a mortgage broker license
How Much Does a Mortgage Broker Earn in Ontario?
According to ZipRecruiter, the mortgage broker job market isn’t currently very active in Ontario. Although there is no fixed salary payment, the average annual pay is currently about $70,560 which is approximately $33.92 per hour with 10 cities paying above the average with salaries as high as $152,000.
Are Mortgage Brokers in Demand in Ontario?
Yes, mortgage brokers are in demand in Ontario. With the high increase in demand in the real estate sector, there has been an increase in the demand for mortgage brokers in Ontario because a lot of people are interested in buying properties and they need help getting funds and this is where the mortgage brokers come in.
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How long does it take to become a mortgage broker in Ontario?
If counting from the beginning of the course till when you get the final license as a mortgage broker it should take about 2 to 3 years. Although you can spend as low as 5 days and at most 6 months to complete the educational requirement of a mortgage broker, the real waiting time occurs during your licensing as you will have to wait for 24 months to be able to upgrade your mortgage agent license into a mortgage broker license.