As a financial professional, the job requirements can be fairly stringent; while the mortgage broker is not responsible for actually loaning any money, they do have a great deal of input as far as the financial decisions made by their clients, and therefore the licensing process is quite rigid.
Mortgage Brokers in Canada
Becoming a mortgage broker in Canada is hard work, and yet for those who put the time in it can be an extremely lucrative and enjoyable profession; while the industry is currently fraught with issues such as a perceived overabundance of mortgage professionals and too much competition, there are many brokers out there who make an excellent income and excel at their career.
We’ve put together some information on what it takes to be a successful mortgage broker in Canada, as well as a bit of discussion around some of the issues that have come up in the industry over the past several years.
If you’ve been thinking about becoming a Mortgage Broker Professional, this is information you should know before making your decision to proceed with your career choice.
On Becoming a Broker
While becoming a mortgage broker in Canada ranges in criteria from province to province, there are some standard requirements that are in place throughout the country as a whole and these requirements are as follows:
· You must be 18 years of age or older
· You must be a permanent resident of Canada
· You are required to have a mailing address in the province that you reside in that can receive registered mail; post office boxes are not acceptable.
· You must be authorized by a Mortgage broker to deal with mortgages
· There is a requirement that you work for only one Brokerage Firm; being employed or contracted by multiple firms is not acceptable
· You must meet the educational requirements
· You are required to have a valid e-mail address (this is necessary for the application process).
The educational requirements that each broker must satisfy are as follows:
· Successful completion of a mortgage agent education program; before choosing a program, be aware that your program is required to have been approved by the Superintendent, FSCO
· You must also apply and for a mortgage agent license within 2 years of the successful completion of the mortgage agent education program of your choice.
It’s admittedly a fairly strenuous process, and as with every other job out there, those who wish to succeed in the Industry will need to put in a great deal of hard work and dedication.
Starting Salary and Salary Range
As with many careers, salaries are highly affected by the region in which you are living; in areas with a higher cost of living it can be safely assumed that the salary range will be a bit higher than in regions where the cost of living is a bit lower.
While you must keep in mind that the average mortgage broker is paid at least in part on commission, studies have found that the average starting salary in the industry is around $$25, 574.00 per year, depending on location.
The median salary comes in at around $48 940.00, while experienced mortgage brokers who have stuck with their job for some time can earn anywhere from
$100 000 per year or more.
Statistics indicate that there is a very high level of job satisfaction in the industry, yet over half of all mortgage brokers tend to leave after a period of 1-4 years, thus losing their chance of earning the top salary of many tenured brokers.
This is due to a couple of factors which have become a bone of contention throughout the industry in the past decade or so; first of all, many agents enter the field as part time agents and therefore never give the job their full potential and secondly, this creates an overabundance of people advertising themselves as mortgage brokers, which many brokers feel hurts their chances of success.
While these issues can be very serious in that they both increase competition as well as decreasing the public image of mortgage brokers and therefore client confidence in the services they provide, the past several years have seen a trend toward many part-time brokers leaving the industry which has helped to make things a little less crowded.
Is it Worth Proceeding?
It’s definitely worth proceeding into this career if you’re both willing and prepared to stick it out for a number of years at a relatively low salary while you build credibility and business.
As with Real Estate, Insurance and a variety of other fields, taking a few years to build a solid client base and getting to the point where you can rely on returning customers is a difficult yet necessary step in building a solid foundation.
While many people fail to do this, opting instead to move to other industries, statistics show that for those who do remain in the industry for a significant length of time can eventually earn an excellent salary and report a high degree of career satisfaction.
So while many would say that it’s definitely worth proceeding, before you do so it’s vital that you analyze your current position, understand the challenges you’re undertaking and form a realistic view of whether it’s a feasible career option for you.
Books to consider reading before entering the field.
Find more career help and good advice on our webpage BetterCanadianJobs.Ca