How to Become a Mortgage Broker

The First Few Steps on a Long Road

How about you talk about how easy it is to get a broker’s license in Ontario--2 months of an easy course load and magic--you are a broker, not an agent a broker, just have 2 years underwriting, or agent experience under your belt, and you are offering to give the world mortgage advice with a license, and this is acceptable to CAAMP? How is that enough education? How about dealing with some of those topics. Canadianmortgagequestion

To qualify to become a mortgage broker in British Columbia is pretty easy, and high turnover among new brokers reflects ease of entry. Even becoming a Designated Individual, with the full responsibility of running an independent brokerage company is without significant legal barriers. The only legal requirements to becoming a mortgage broker is to pass the Mortgage Broker’s Course and Examination, (provided through The University of British Columbia - Sauder School of Business), pass a Criminal Records Check, and be of “good character” in the eyes of the Financial Institutions Commission of British Columbia, the provincial regulator in BC responsible for overseeing mortgage brokers.

To pass the course requirements an individual also must pass a Basic English literacy test.

What this means, of course, is that people with widely varying backgrounds enter the business with vastly different levels of education, experience and skills.

Once a person has obtained their Certificate then he or she must work with a brokerage company for a minimum of two years before going out on his or her own.

The industry, recognising the need for a consistent standard of professional development, has developed a variety of training courses offered through The Canadian Association of Accredited Mortgage Professionals and the various provincial associations such as the Mortgage Brokers Association of BC. A designation, the Accredited Mortgage Professional ("AMP"), has been developed at a national level, to recognise individuals who have (a) been licensed as brokers for a minimum of two years, and (b) have completed an ethics course. To maintain the accreditation an AMP must attend a certain number of continuing education programs during the year, every year.

So these are the entry points to the industry.

Most successful brokers, however, come to the industry with more training and education, and/or relevant experience than the minimum required. In achieving success the quality of the support provided by the mortgage brokerage company is also essential for a new broker. Many new brokers enter the business working for brokers whose business model is simply not designed to foster professional development or enhance the chances of success of a new broker.

It is my personal belief, based on experience, that most new brokers require significantly more supervision and support than currently provided by many brokerage companies in Canada. This is one of the reasons I joined Dominion Lending Centres, because with DLC the broker manager is not totally on his own in providing support to the new broker and adequate supervision to all brokers working for the company. There is a combination of courses available from the Canadian Association of Mortgage Brokers, the Mortgage Brokers Association of BC, and Dominion Lending Centre supported on-line training and periodic Webinars. These are supplemented by ongoing in-house training on a regular weekly basis.

In addition to formidable training resources, a new broker also needs coaching and mentoring, on a one-to-one basis. Trillium-Accessible Mortgage Corporation has a formal Mentor Program, designed to facilitate the success of a new broker. The real key to success for a new broker is a personal development plan worked out with a senior broker that includes business planning, marketing and personal development aspects. Without a well thought out business strategy a new broker is sure to struggle, if not fail altogether. In our company, as in other well managed brokers across Canada, new brokers gain the benefit of working with seasoned professionals, taking as much support and guidance as they need.

A few things to consider before signing up for the licensing course.

Money

It will take some time to obtain your license, and once you do, it will take even more time to build the business. A new broker should plan of having to live on their savings or other resources for the first year, even though they should begin to earn money before that.

Skills Inventory

Being a mortgage broker is not a job, but a professional services business. There is a lot to know and a lot to learn. The more you know before entering the business the better off you will be once you start. A good general business background is good, if supplemented by academic training in business, even better. This is a sales business so you best have strong personal selling skills, as well as good work habits.

Values Inventory

This is a profession. There are many opportunities for tests to your ethics and integrity, including many completely unexpected. If you don’t have a strong moral compass, get one, or don’t go in the business. It will destroy you.

Life Balance

Being a mortgage professional is much more than just a job, and doing it well means that your work will spill over into all aspects of your life. This makes life balance, if anything, even more important and you will need to know where and when to draw the line between your personal life and your work. Fun is important, don’t forget to practice.