Becoming a mortgage broker in British Columbia offers unique advantages. Also, in Canada, there are stricter guidelines for mortgage brokers, and therefore the job is sought after for its strong professionalism and high earning potential. Follow the steps below to become a mortgage broker in British Columbia.
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How to Become a Mortgage Broker in BC
Enroll in accounting, finance and sales courses in undergraduate. It's not necessary to have a finance or accounting degree to become a licensed mortgage broker, but it is important to understand the fundamentals of economics and finance if you do decide to choose this field. These courses can be taken in addition to your major courses.
Enlist the help of a Canadian mortgage broker while still in school. Learn the specific Canadian laws regarding licensing, insurance and commission. Begin an internship with a broker. Start to learn the differences between American and Canadian laws. For example, in the U.S. brokers have a greater freedom in assigning a rate, commission and origination fees on a loan than in Canada. You'll need to understand
the laws under which you must abide.
Weigh the pros and cons of working for nearly a commission-only salary. As opposed to the U.S. Canadian brokers are almost always paid only commission. Some things to consider are saving for federal taxes, budgeting, maintaining consistency with production and setting your own schedule. Some advantages include increased freedom and unlimited income potential; however, some disadvantages include potential dry stretches, and no employer-paid benefits like retirement and pension.
Consider getting both a mortgage broker license and a real estate license. In British Columbia, these licenses are not only easy to obtain (simple paperwork), they are transferable and do not pose a conflict of interest. In essence, you'll be able to both sell homes and finance those same homes, thereby increasing your commission on each sale.
Apply with other brokers in British Columbia. The best way to start your brokerage is to learn and work under a seasoned, veteran broker. Experience counts in this competitive business. Once you've made a few deals and understand your market, consider starting your own brokerage and begin to source clients.