MORTGAGE PROFESSIONALS - FACTS
In 2019, 32% of Mortgages Were Arranged By Mortgage Professionals in Canada.
Mortgage professional play a very important role in the real estate industry.With a good mortgage professional’s advice borrowers can save lots of money in penalties.
If you are passionate about helping people grow their assets efficiently and are looking to become a mortgage professional, you will find this information very useful.
Who Are Mortgage Professionals in Ontario?
Mortgage agents act as intermediary between mortgage borrowers and lenders. They are duly licensed by the Financial Services Commission of Ontario (FSCO).
Their job is to help arrange financing for a borrower by helping them find the best lender available for their client’s needs. They also help clients get access to various mortgage products.
A mortgage broker is an individual who is licensed to deal in mortgages, but is also eligible to build and manage team of mortgage agents under his/her supervision, if a broker chooses to. The broker is also allowed to start his or her own brokerage firm.
How to Become A Licensed Mortgage Professional In Ontario?
- To become a professional mortgage agent in Ontario, you need to meet the following requirements:
- You are a Canadian resident at least 18 years of age
- You have an official mailing address. Sorry post office box address is not allowed
- To start working as a mortgage agent, You must be associated with only one mortgage brokerage to deal
- You possess the basic Mortgage Agent education credentials and has a valid e mail address.
If you already meet the age and residency requirements, the first step you need to take is get the required education. The best way to do this is to complete a mortgage agent course that’s authorized by the FSCO so you can qualify for entry-level licensing.
Where to get professional Mortgage Agents License training in Ontario?
While there are many associations who can help you get license as a mortgage agent in Ontario, we recommend any of the 3 below. Feel free to look into other options at your own discretion;
Formerly known as CAAMP, Mortgage Professional Canada is a non-profit, national mortgage association. They offer an Ontario Mortgage Agent Course (approved by the FSCO) that’s considered as the entry level course required for licensing as a mortgage agent.
This curriculum for mortgage professionals consists of four (4) parts and eleven (11) modules. The in-class course will take 5 days to complete, while the online course will take roughly 40 hours.
The cost of each in-class session is $425.00. Meanwhile, the online course with e-text will cost only $375 (for the entire course), while the course with printed textbook will cost $425.00. Overall, you will save more money if you take the course online but it will take longer to complete.
REMIC stands for Real Estate and Mortgage Institute of Canada. Their mortgage agent course can also be taken online or in-class. According to their website, the entire course can be completed in as little as five days. They also offer free job placement assistance after you get your certification.
Their mortgage agent course only costs $298 for the online e-text, $365 for the online course with textbook, and $385 for the in-class with textbook.
Sheridan College offers a mortgage agent program which is 42-hour online course for those aspiring to be mortgage agents in Ontario. The cost of the course is $432.00 as of this writing, and is available only on certain dates.
The passing score for the mortgage agent licensure exam is at least 60%.
After getting your certification/license from any of the above mortgage associations, you can take the following steps:
To start working as a mortgage agent, you need to join a mortgage brokerage. Don’t just join the first brokerage you find. Instead, inquire what each brokerage offers in terms of training and support. You need to be in an environment where you can learn and grow as a professional.
Look for a mortgage brokerage that offers a fair compensation package. But at this point of your career, your main priority shouldn’t be about commission. Focus on getting more training and expanding your expertise. Higher paydays will come later.
Ask your mortgage brokerage (broker/ team leader) what tools they can provide that will help you do your job better. Some offer extremely productive tools like CRM, websites, online portals, and mobile apps. These can be highly valuable tools in your arsenal that can give you an edge over your peers.
Error and Omissions Insurance (also known as Professional Liability Insurance) protects you from financial damages associated with the claims.
In Ontario, the Error and Omission Insurance is a requirement for a mortgage agent. All reputed brokerages, should have workable options for you.
Once you’ve found a mortgage brokerage and sorted out your Professional Liability Insurance, you can then pay your licensing dues at the FSCO. Visit the FSCO website for the complete table of fees involved for new and old applicants
Congrats! You are now a fully licensed mortgage agent, ready to help first time home buyers, realestate investors, and mortgage refinancing clients . The next thing you should do is work hard and gain more experience in your field.
How To Become A Mortgage Broker Professional In Toronto?
To become a mortgage broker in Ontario, you need to meet the same age and residency requirements as a mortgage agent. However, to become a licensed mortgage broker, you need to have a valid mortgage agent license for at least 24 months (2 years).
You also need to take a separate course (specifically for Mortgage Brokers) from a FSCO authorized mortgage association. Once you have the required education, you can take the licensure exam.
What Is A Mortgage Brokerage?
A mortgage brokerage is a firm that provides mortgage broker services to the general public. It can be run individually or with partners. A mortgage brokerage could also be a full scale organization with lots of mortgage agents working under its umbrella.
Mortgage brokerage firms are important because they provide portals for aspiring mortgage professionals, and serve more people who need financing for their home.
How Important Is A Mortgage Brokerage For A New Mortgage Agent?
The new mortgage agent cannot begin working in the mortgage industry without joining a brokerage. As a newly licensed mortgage professional, the agent should choose a brokerage that provides effective training, tools along with future growth opportunities within the organization.
This way, the mortgage agent can quickly grow in his or her career and command a higher compensation in the future.
Tips To Find a Great Brokerage to Join As A Mortgage Professional
Take charge of your career and don’t let getting hired be your ultimate end goal. Develop and define a crystal-clear career and financial goals for yourself before going out in search of a brokerage to associate with.
A good broker /brokerage will ask you of your business plan, goals and steps you intent to take to achieve them.
As a new agent, quick and precise advice will help you close more deals. Be sure you have access to right information quickly in case you get stuck while interviewing your clients.
Generally speaking, higher commission splits to newer agent means limited support and vice versa. It’s your job as a new agent to decide on which position you are comfortable with if you intend to excel your career as a mortgage professional in Ontario.
Instead of having a flat compensation package, inquire about performance based remuneration. Look for a mortgage brokerage that is willing to reward you for results.
Considerate mortgage brokerages offer extra bonuses and incentives when their agents hit sales targets despite the high commission splits upfront. A confident and seasoned salesman will always go with performance based compensation as they are aware of their skill set and capabilities in advance.
You are encouraged to jot down and understand all your skill set and how they will help you become a proficient mortgage agent.
Your commissions are collected and disbursed by your brokerage. Ensure all expenses and/or commission splits are documented properly. This will prevent commission disputes in the future and ensure a good long term working relationship.
Inquire and know your options about future personal growth potential for yourself. Will you be allowed to recruit/ build your own team within the same organization? How does a brokerage help you become a mortgage broker in future and much more?
How Can We Help You?
If you are looking to start working a s a licensed mortgage professional or exploring better options , you are invited to connect with us.
Based on this initial meeting, we can then explore possible options that will help you get started in your wonderful career as a mortgage professional.