Are you a fresh graduate or someone who is looking for a career change? Have you thought about becoming a mortgage broker?
The real estate sector of Canada is ever-evolving and the demand for mortgage agent is constantly increasing. Becoming one will be a very rewarding experience. In fact, the commission rates received by them are sky-rocketing high.
If you are planning to start this journey then now is the best time. In this blog, you will explore the responsibilities of a real estate broker and steps on how to be a successful one.
What does a Mortgage Broker do?
You might be wondering- What does a broker do? He just shows houses and earns money. This is true to some extent but the real job of a real-estate broker involved much more than this. For an agent, the first and foremost task is to help the buyers in every possible way.
It can be related to buying a home or getting financial support. If you are planning to pursue this path then you must know the following duties of a broker. Prepare a checklist and tick the tasks one by one.
1. Understand mortgage options
You can only help your clients if you are aware of all the mortgage options available in Canada. It is your job to assess the financial soundness of the buyers and recommend their mortgage plans. If you are successfully helping them in getting a secured loan then the trust will develop.
2. Get approvals for clients
Just communicating the mortgage plans is not the end of your work. You have to get it approved. We all know that for approval you need to get income proofs and other documents. Right from drafting the loan application to the last step, you have to be there for your clients.
3. Determine loan terms
Each country has a different federal law when it comes to lending. Knowing all the useful home loan products and explaining them to your clients is also a part of your job. What is rightfully legal and what is not is crucial to know.
4. Guide after closing the deal
If you think selling the house is the last thing then it is not! There are many post-closing processes that you need to help your customers with. For example: any repair work in the new home, communicating with the lender, legal terms, etc.
5. Keep a record of customer documents
You deal with not one with multiple buyers at the same time. Therefore, you have to stay up-to-date with all the latest information and maintain the records. Records must be made for all past clients as well. You wouldn’t want your clients to miss any important deadlines because you were clumsy!
There are plenty more responsibilities like maintaining the office environment, motivating the team and building a healthy relationship with the clients, other administrative work, and managing the employees.
Steps to follow to become a Mortgage Broker
Becoming a mortgage broker is not that simple. You need to have a certain skill set to pursue this as a career option. Before you begin, take an understanding of the legal requirements and implications. These vary from country to country. In Canada, these differ from region to region. Make sure you know what are the requirements in your area.
Here are 4 steps that will help you kickstart your journey to become a mortgage agent.
1. Education Requirements
Check the educational requirements in your area. The most common is the completion of your entry-level education. There are also some different terms used about a mortgage broker like agents, salespersons, associates, sub mortgage brokers, etc. Check which one is used in your area.
2. Employment
After you complete the educational requirements the next step is to find a job. Usually, brokerage companies hire agents now and then. Check the websites and assess the work culture, diversity, and environment to see if it suits you.
3. Licensing requirements
Without licenses, you cannot operate in the real estate business. Mostly the company you work with will help you in obtaining the license. There are some formalities associated with it like filling out application forms and paying fees.
4. Start working as a Mortgage Broker
Finally, the last step is to start working. But how? Start by doing some promotions, brand advertisements, network-building, and social meet-ups to attract potential crowds. Keep updating yourself with the latest products and information related to the Canadian real estate market.
Apart from these 4 steps, there are optional things you can consider to improve your skills and earn more money. Let’s check them one by one.
1. Accreditation
In Canada, there is AMPC with which new agents can get accredited. But it’s totally optional. There are some advantages to it like getting differentiated from the rest of the brokers.
2. Upgrade your License
Every area in Canada has its own licensing requirements. Therefore, you can upgrade your license according to the region/province. But to do that you have to serve as a broker for a minimum of two years.
3. Expansion
If you want to open your own real estate brokerage firm in Canada, then you can expand by hiring new people, opening new offices, and catering to new regions. Though it’s totally optional.
4. Knowledge Sharing
Being a real estate agent is a big responsibility and an achievement. You can start sharing your knowledge with your team to help them. You can organize seminars and workshops and get paid through them as well.
Mortgage Broker in Canada: Should you become one?
The profession of mortgage broker is in huge demand. The Canadian real estate market is very lucrative. It is constantly growing and even foreign investors are attracted to it.
The earning potential of a mortgage agent has no cap. You can earn very heavy commissions on big sales. So, if you are thinking about a full-time professional job then it can be considered. Even as a passive job, it has a lot of potential.
What do you think about becoming a mortgage broker in Canada? Comment down below.