What is a Mortgage Broker License & How Do I Get One?

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What is a Mortgage Broker License?

Mortgage brokers are professionals who deal in mortgages and act as intermediaries between borrowers and lenders. They connect borrowers with some of the best lenders, while also connecting lenders with the borrowers that best fit that lender’s guidelines. Mortgage brokers work hard for their clients while often earning commission from the lenders involved although sometimes they earn commission from the borrowers only, and sometimes from both the borrowers and lenders. This really depends on that kind of lender their borrower qualifies with and who the broker is representing in each specific mortgage transaction.

Because of the sensitive nature of a broker’s job, a mortgage broker license is required to become a practicing mortgage broker in Ontario and many other provinces. With most mortgage applications, a broker may for instance examine a borrower’s credit history and financial statements to determine their mortgage eligibility. The use of such sensitive information for obtaining a mortgage is regulated by FSRA in Ontario, and by the BCFSA in British Columbia. Since holding a mortgage broker license is a legal requirement in these provinces, brokers found to be practicing without one may be subject to a number of penalties and fines.

Is a Mortgage Broker License the Same as a Mortgage Agent License?

A licensed mortgage agent who wants to work as a principal broker at a mortgage brokerage or oversee other agents needs to have a mortgage broker's license. Successful completion of the mortgage broker education program is one of the major requirements for licensure. Unlike the mortgage agent program, the broker education program has an increased focus on the skills and expertise needed to manage agents successfully and guarantee that the brokerage follows all applicable rules.

You can only apply for your mortgage broker license once you have already received your mortgage agent license and have been working as a licensed mortgage agent for two years. Before getting your upgraded broker license, you will also have to complete an education program with an accredited mortgage education provider such as MPC (Mortgage Professionals Canada). As long as your mortgage agent license has not expired or been suspended, there is no price to pay in order to apply for an Ontario mortgage broker license; nevertheless, the total fees for getting and maintaining your mortgage agent license can range from $1,200-$2,000 a year.

How Do You Obtain a Mortgage Broker License?

Before obtaining their full license, aspiring brokers must first go through an accreditation process. In Ontario, approved agent education programs can be completed in the classroom, by mail, or online, with each course ending with a final exam. Furthermore, all educational courses are offered in both English and French in order to accommodate applicants as needed.

In addition to completing a pre-licensing education program, there are a few other requirements. In order to qualify for a mortgage broker license in Ontario, one must:

  • Be at least 18 years of age
  • Reside in Canada, and have a private mailing address within Ontario that is not a PO box
  • Already be licensed as a mortgage agent, having completed an approved mortgage agent education program
  • Have worked as a practicing mortgage agent for at least 24 months out of the last 36
  • Have completed the mortgage broker education program within the past three years
  • Work for only one mortgage brokerage, and be authorized by this brokerage to trade and deal in mortgages on its behalf

Once you obtain your mortgage broker license, the possibilities are endless. With your new accreditation, you are now eligible to oversee other mortgage agents and even begin the process of getting your brokerage license to open your own brokerage. Furthermore, you can continue your education by becoming an Accredited Mortgage Professional of Canada (AMPC).

How to Improve Your Chances: Tips on Getting Your Mortgage Broker License

While the mortgage broker licensing process is relatively straightforward, it can still be daunting for many. The best way to shake off any doubt is by taking steps to improve your odds of success. Below, we cover a few things you should consider before getting your mortgage broker license.

Making Use of Your Resources

Take advantage of all the resources available to you as you study for your mortgage broker license and prepare to apply for it. The educational program is designed to help you navigate and overcome some common challenges within the realm of mortgage brokering. Do not be afraid to make full use of the guides, textbooks, and educational materials provided to you. Even after receiving your license, you may find it helpful to refer back to these guides.

Consult Others in the Field

In preparation for your exam, you may want to consult experienced mortgage brokers and real estate agents, lenders, and others in the field. Speaking with professionals with years of experience in the sector can help guide you throughout your educational process. While brokers can give you more specific advice, as they have gone through the licensing process themselves, lenders and real estate agents can also assist you in better understanding the business as a whole.

Never Stop Learning

Even after you receive your license, you will always have new things to learn and improve upon in your field. By looking at the mortgage broker license process as just a step in your lifelong path towards learning, you can get the most out of your experience and set yourself up for continued success in the field. Even if your first attempt at obtaining a license or completing the educational program is not successful, you should view it as a learning experience.

Stay Informed

The best way to prepare for the mortgage broker licensing process is to understand how it works. Make sure to check the most up-to-date requirements for license eligibility and ensure that you meet them before beginning the process. Furthermore, it is a good idea to look into the different options available for the educational program and choose the one that is best for you.

If you are looking for experienced mortgage brokers to speak with, or if you are a mortgage agent or broker looking for a modern cutting-edge brokerage to work at, Clover Mortgage is the place for you. To book a free consultation with one of our professional brokers, contact Clover Mortgage today!

Refs:

Rushi Parikh
Written By Rushi Parikh
"Empowering your dreams with personalized mortgage solutions tailored to your unique financial needs."