A mortgage broker helps the borrower take out a mortgage, and the best deal possible. There are many different lenders in Canada looking to lend to borrowers.
A career as a mortgage broker can be highly rewarding, and that is why many people want to break into the mortgage brokerage industry.
Want to learn more? Read our career guide below!
Mortgage brokers work as an intermediary between home buyers and lending institutions. As a result of their efforts to match residential or commercial property seekers with the right financial organizations to meet their needs, they are paid a commission on the finalized transaction.
What Does a Mortgage Broker Do?
In the most common situations, a mortgage broker helps the borrower take out a mortgage, and the best deal possible. There are many different lenders in Canada looking to lend to borrowers. Anyone looking to take out a mortgage often gets overwhelmed by the amount of choices and information available. A mortgage broker helps the borrower filter down to the best alternatives and get the best deal.
A mortgage broker forms a vital link in the chain, acting as an intermediary between home buyers and potential lenders. A vital part of the mortgage broker’s role is strong working relationships with many different financial institutions to assist their clients with securing the right financial solution at the best possible deal terms and interest rate.
Licensed mortgage brokers can provide the following services in BC:
- Act as a representative for lenders’ mortgage products
- Negotiate commercial and residential mortgage loans from banks, credit unions, trust companies
- Assist with securing construction loans
- Release of home equity
- Mortgage refinancing
- 1st, 2nd, or 3rd mortgages
- Interest only mortgage loan
- Amortization mortgages
- Bridge financing
- Inter-alia / interim blanket mortgage
- Secured visa mortgages
- Draw/Line of credit mortgages
How Much Do Mortgage Brokers Make?
- The average Mortgage Broker salary in Canada is approximately $100,000 per year.
- Pay is driven by number of transactions closed.
- The highest paid brokers typically is also an owner or shareholder of a mortgage brokerage – profiting from other more junior broker’s transactions.
- Top earnings make more than $1 million per year and owns a piece of a valuable business.
How Do the Numbers Work?
At the time of the loan closing, the lender gives a commission of the mortgage value to the mortgage broker. This typically ranges from as low as 0.5% to up to 1.2%. While this may seem like a meager figure, a $1 million mortgage for a home in Vancouver would yield a commission of $5,000, assuming a 0.5% commission.
If a broker only closes 3 transactions a month, it would result in commissions of $15,000. Multiplied by twelve, the broker would have collected fees of $180,000 per year.
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Day in a Life of a Mortgage Broker
Below is a summary of our full article on “What is a Typical Day in the Life of a Mortgage Broker”. To read the full article, please click here.
Many people wonder precisely what a mortgage broker in British Columbia does on a daily basis. Being a mortgage broker offers the opportunity to earn an excellent income coupled with the flexibility of enjoying the benefits of self-employment. A mortgage broker offers financial stability, job security, and flexibility of schedule. What does a day in the life of the average mortgage broker look like?
Mortgage Broker Mornings
Working as a mortgage advisor has the benefit of adjusting your schedule to fit your needs. Since mornings are typically slow, many people would fit personal or family activities in this time period. Some health conscious mortgage advisors will try to slip in a quick run or a workout session. Others may drop off their kids to work first before going to the office or the first meeting.
Still, some early birds may wake up even earlier to take use the early hours of the day. Whether it is making and enjoying a healthy breakfast, taking the dog for a walk, or hitting the gym, the choice is yours!
To start off the day, mortgage advisors would quickly scan their emails, text messages and social media (Facebook, Twitter, and Instagram) for any urgent tasks. Then would be checking up on the news feed to keep pace on any developments in the real estate or financial sectors they need to be aware of that could affect their day’s events.
Mortgage Broker Lunches
Lunch time could be a time to catch a breath and take a break in a busy day. However, for many young and hungry mortgage brokers, they would be working instead. There are many ways to productively spend the half hour to hour breaks:
- lunch meetings with clients or prospective clients to understand their needs and drum up more business.
- answer emails and voicemails that piled up during the morning.
- meet up with colleagues to brainstorm ideas of the best ways to help their clients achieve their goals.
Mortgage Broker Afternoons
Mortgage brokers often make the most of their time by using conference calling to connect with clients. Conference calls can often include the prospective lending institution to provide more immediate answers to questions along the path to negotiating a mortgage.
Another key point of most mortgage brokers’ days includes in person meetings with new clients or first time home buyers. These initial point of contact appointments help with ascertaining such important details as client goals and timelines as well as any possible impediments to home purchases which must be overcome.
Mortgage Broker Nights
Since most clients can’t meet with mortgage brokers during working hours, evening meetings must be scheduled. Mortgage brokers will often meet with clients at coffee shops or restaurants to finalize any documentation required for obtaining a mortgage.
For the ambitious individual, being a mortgage broker can be a fast paced and highly rewarding career that you were looking for. As you can see, there is never a dull moment. The sky’s the limit when it comes to opportunities for career growth. This is especially true in Vancouver and British Columbia, where the real estate market has been enjoying sustained growth over a long period of time.
Career as a Mortgage Broker: Jobs and Growth
What Career Opportunities Exist for Sub-Mortgage Brokers?
With the current Canadian mortgage industry sitting at $1.4 trillion dollars, it is not difficult to see that mortgage brokering is an excellent choice for those looking to enjoy career longevity. Obtaining a sub-mortgage broker’s license or pre-licensing certificates serves as an avenue to many different career paths within the real estate and financial services industries. These include:
- Independent mortgage broker
- Private lender
- Property investment analysis
- Bank specialist
- Work for MBABC Mortgage Broker Association of BC
- Mortgage investment corporation
- Credit union staff
- Real estate appraiser
What are the Advantages of Choosing a Career as a Mortgage Broker?
Though most people consider being a mortgage broker out of a desire to earn a good living and realize financial stability, there are many advantages to be gained out of a career in this promising field. Among the most popular reasons people choose to pursue a mortgage broker’s license include:
- Relatively flexible schedule
- A component of pay driven by sales performance
- Opportunity to build strong working relationships with lending institutions
- Diversity of work responsibilities to increase client appeal and maintain personal focus
- Ease of developing a consistent customer base to yield increased word of mouth referrals
- Access to greater mortgage product selection to ensure client satisfaction
- Ability to access the lowest possible mortgage rates for clients
- Financial independence from a stable field of employment
Perhaps one of the greatest advantages that draws people to consider a career in this exciting field is the opportunity to help others achieve their dream of purchasing their ideal residential or commercial property. Mortgage brokers maintain access to the leading lending institutions and are able to procure the best deals for their clients at the lowest possible interest rates. This skill assists them with helping their valued customers realize their goal of property ownership while still saving them time and money in the process, making being a mortgage broker an incredibly rewarding career.
Why Should I Consider Becoming a Mortgage Broker?
Being a mortgage broker offers many advantages to those wishing to pursue a career in this promising field. In today’s unsteady economic climate, many people are looking for secure employment opportunities and are willing to invest the necessary time and money into the certification and education process to achieve their goals. Some of the advantages of becoming a mortgage broker include:
- Job security
- The opportunity to help people
- Flexible working hours
- Independence through self-employment
- Potential for significant and consistent earnings
- An exciting and lucrative field
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