Category Archives: Canadian mortgage business

How To Become A Mortgage Broker In Canada?

If you are curious as to the requirements on “How to be a mortgage broker in Canada”, you can easily find the answer by doing your research on the internet. Different Canadian may have their own regulations government the licensing and requirements to become a mortgage broker.

The term “mortgage broker” is loosely used to refer to a mortgage broker, mortgage advisor, mortgage consultant, mortgage representative or mortgage specialist. The correct name is a “sub-mortgage broker” for a person who is licensed and works on the business of providing mortgage and home financing services.

In British Columbia, the provincial Financial Institutions Commission of BC (FICOM) requires a sub-mortgage broker to be sponsored or employed by a mortgage broker company.

There are 2 basic requirements to become a licensed mortgage broker in BC:

1) Pass the examination. A person has to pass the “sub-mortgage broker course” before he or she can be licensed and registered to work as a sub-Mortgage Brokers. Employees of Canadian Banks, Credit Unions and Trust Companies are exempt by the Government and not required to be licensed to market their employers mortgage products to home owners.

There is a requirement for basic English language proficiency before an individual can be accepted to take the sub-mortgage broker course.

2) Good character. Before a license is issued to a sub-mortgage broker, FICOM has to be satisfied that the person to be licensed has no previous criminal records or past misconducts not worthy of being admitted or entrusted with dealing with credits and loans as a mortgage broker.

Most matured Canadians will not likely have any problem to satisfy the above requirements. If you are interested to find out more information on how to become a sub-mortgage broker, you are welcome to contact me.

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Mortgage Lenders – Partners or Competitors

Are Mortgage Lenders Partners or Competitors?

The Canadian mortgage business is still dominated by the major Canadian Banks and Credit Unions. While most of these mortgage lenders have a Mortgage Broker Division to handle the origination of mortgage loans from mortgage brokers, they also have retail banking that service and compete for business with the mortgage brokers.

The market share for mortgage origination through the mortgage broker channel in Canada has been staying around the 25% level for the past few years. The biggest competitors faced by mortgage brokers in Canada are Canadian Bank’s retail branches. The everyday banking convenience and complimentary banking services by a home owner’s bank first-contact in capturing the mortgage business, in spite of better rates or personal services offered by mortgage brokers.

Who Owns The Clients?

Once a mortgage loan is completed and a client become a customer of a mortgage bank, the mortgage broker is put in a disadvantage position to continue keeping the client for future mortgage business. Although the mortgage broker may have maintained close contact with his client, the odds are against the broker doing the mortgage renewal business when the term is due.

The mortgage lender is treating the client as the bank’s customer. The broker will not be paid when the client renew or refinance his mortgage with the mortgage lender.

Low Renewal & Loss of Business Income

Another hurdle faced by mortgage brokers is the renewal business that brokers able to get on renewal is less than 20%. majority of the borrowers will renew their mortgages with the banks that the brokers placed the business with. A mortgage broker will have to constantly look for new business and clients who are in need of help with their mortgage applications.

Mortgage Bankers like MCAP and FirstNational Financial are working diligently to build their mortgage broker origination business, and work with the mortgage brokers to build their book of business by helping the brokers with clients’ mortgage renewal business.

The Mortgage Group, a Canadian mortgage company with operations in most of Canadian Provinces is the first mortgage brokerage company that will embark on providing their own branded mortgages to Canadian borrowers. Over time this can effectively enhance the role of mortgage brokers in the company to play a more significant role as a mortgage and financial advisors for the betterment of Canadian home owners.

The rational for the move is aimed at keeping mortgage advisors building their book of business. Elsewhere in Australia, the problem of mortgage lenders protecting their market share and profitability was high-lighted in a recent blog posting here.

Mortgage Broker Profession

Mortgage Broker Profession – Is it right for you?

A Mortgage Broker or mortgage advisor is an individual who is a registered, licensed and trained mortgage specialist helping his or her clients with their home financing needs. A mortgage broker is not paid by the mortgage lender. Instead he or she receives a fee or commission as financial compensation for bringing a mortgage business to a mortgage lender.

How much a mortgage broker can earn?

This depends on how many deals you average a month. You can run some numbers and investigate realistically what you could possibly be making after your initial months or learning the business. It may take you a few months to be up to speed in your mortgage business. In the beginning, building your business involved working your own marketing plan to get new contacts and build more referral sources.

The income for a mortgage broker is lucrative or those who are successful in building their contacts. There are little over-head costs to become a mortgage broker. The biggest attraction beside the money is the freedom to work their own hours in an industry that has unlimited demand for the service.

If you are interested to find out more information on how to become a mortgage broker, you are welcome to contact me at 604-721-4817 or email me.

Canadian Mortgages

Canadian Mortgages – Career Opportunity

Over the recent years, the booming Canadian housing market has attracted many people who are looking for career and income advancement. Mortgage brokerage – home loan origination by independent mortgage advisors or brokers is attractive to self-motivated individuals who aspire to work their own hours and build a business within a group environment.

Definition of a mortgage

A mortgage loan is a loan secured by real property through the use of a mortgage – a legal instrument. The word mortgage used commonly by consumers everyday is often referred to as mortgage loan. As with other types of loans, mortgages have an interest rate and are scheduled to be repaid over a period of time – normally from 25 to 40 years in Canada. Mortgage lending is the primary mechanism used to finance the private ownership of real estate.

The Income Opportunity

Home ownership in Canada is a multi-trillion dollars business. Home loan origination by Independent Mortgage Brokers or Consultants accounts for about 25% of the total home loan business in Canada.

Mortgage Brokers are independent agents who work for themselves and not for the mortgage lenders. A Mortgage Broker is paid a commission or fee for the mortgage business that he or she successfully places with a mortgage lender. The income potential for successful Mortgage Brokers is high and can be very rewarding for those who find their market niches.

Requirements To Become A Mortgage Broker

All Mortgage Brokers are required to pass a sub-mortgage broker course before they are can be licensed and registered to work as sub-Mortgage Brokers. Employees of Canadian Banks, Credit Unions and Trust Companies are exempt by the Government and not required to be licensed to market their employers mortgage products to home owners.