A nine-to-five job doesn’t work for everyone.
There are people who hate being tied to a desk during normal business hours Monday through Friday.
For those looking for flexibility, a career in the mortgage industry could be their ticket to freedom.
« People don’t always like traditional pursuits when you work for an employer and are accountable to a boss, » Samantha Gale told the Street in a phone interview.
Gale, an attorney, is the CEO of the Canadian Mortgage Brokers Association – B.C.
It is a Vancouver-based not-for-profit organization that, according to its website, supports and enhances « Professionalism and Ethical Standards in the Mortgage Industry ».
She also holds the same title with the Mortgage Brokers Institute of B.C., a related organization that provides training.
As a broker, « you are your own boss, » said Gale.
« They like independence, » she said of those who enter the field. « They like the ability to make their own income. »
Brokers act as an intermediary between a lender, usually a bank, and a person who wants to borrow money to buy real estate.
If a real estate transaction were a relay race, Gale said, agents would be found early on to assess how much a person can borrow.
Brokers also often work long hours with borrowers before applying for a loan by helping them with a plan to save for a down payment or improve their credit score.
Your services are also needed when a homeowner renews the mortgage or refinances the loan.
To become a broker, one must complete and pass UBC’s Sauder School of Business Mortgage Brokerage course. Then you have to be hired by a brokerage firm that will apply the person for a license before the B.C. Financial Services Authority (BCFSA), which is the provincial regulatory agency.
The Mortgage Brokers Institute of B.C. for its part, offers a practical course that covers topics that are not included in the UBC course. Although the course is not compulsory, it teaches newbies how to get their new job done.
A successful application to the BCFSA means that the person is now a so-called submortgage broker. This person must work for an established brokerage firm for two years before they can work as a full fledged mortgage broker.
« Most of the time, as a subbroker, you pay a brokerage fee or percentage to the broker to work, » noted Gale. “There are some [sub] mortgage brokers that will work for the salary. Most don’t, but it’s not uncommon. «
Brokers differ from so-called mortgage advisors or specialists who work at banks.
Gale stated that these advisors or specialists are typically trained by the banks and are not accountable to the BCFSA.
« If there is a problem with a mortgage specialist, they just get fired, » she said.
According to Gale, some mortgage advisors or specialists leave the bank, go through the licensing process, and become submortgage brokers, and eventually mortgage brokers.
As brokers, you have access to many credit institutions and are not limited to offering a bank’s products.
“You make more money. You have a higher commission than a mortgage specialist, ”said Gale.
Brokers receive a commission from the lender. According to Gale, that commission can be 0.75 to 1 percent of the loan.
Depending on the arrangement with the broker, a submortgage broker can keep a large portion of the commission.
“It’s a business where you make your own living. You make your own money, ”Gale said.
Submortgage brokers can spend most of their time outside the brokerage office meeting people and making connections.
« It’s part of being your own boss, » said Gale.
Successful brokers are people who know how to build a customer base and make new contacts.
Except for young people whose families own or manage a brokerage firm, students rarely consider becoming a realtor.
« It’s something they are likely to get into later in life when they have had a real world experience, » Gale said.
Gale noted that there are many parents with young children who feel that careers in the mortgage industry are well suited to family life.
« You can drop what you’re doing and you can pick up your kids from school at three in the afternoon, » Gale said. “If you have a job with an employer, you can’t just pick it up and leave. «
Can you work part time as a mortgage broker?
As a part time mortgage broker, your job is to match a customer with mortgage loan products. … part-time mortgage brokers usually work with fewer clients than full-time brokers rather than spending less time on each client.
How do you become a mortgage partner?
- be at least 18 years old.
- Have English skills.
- Have a Canadian high school diploma or equivalent.
- Be a Canadian citizen or have a permanent residence card or work permit with no study restrictions.
- submit a certified criminal record check.
- secure employment with a mortgage broker in Alberta.
How are Mortgage Brokers Paid?
How Do Mortgage Brokers Make Money? A mortgage broker receives a fee that is a small percentage of your loan amount, usually 1% to 2%. … When the borrower pays, the fees can be included in the loan amount. When the lender pays, the broker’s commissions are usually included in the cost of the loan.
How do I become an Independent Mortgage Broker?
Here are the basic steps you need to take to become a licensed broker:
- Step 1: Take the pre-license class. All mortgage loan intermediaries must be licensed. …
- Step 2: Pass the NMLS test. You have to pass the so-called SAFE Mortgage Loan Originator Test. …
- Step 3: get to work. …
- Step 4: continue your mortgage loan education.
Do You Need a Mortgage Broker Degree?
Outside of the licenses, certification requirements, and professional development required by your professional association, you don’t need a degree to become a mortgage broker.
How Long Does It Take To Become A Mortgage Broker?
To be approved for an NMLS license, you must (often) complete 20 hours of pre-licensing training from an approved organization. The training includes three hours on federal laws and regulations, three hours on ethics, two hours on non-traditional mortgage products, and twelve hours of elective courses.
Can I work as a mortgage broker from home?
As a mortgage broker, you can work independently or for an agency. … some agencies allow you to work from home for at least a period of time while researching customer credit reports, the credit market, and property values. However, there may be days when you need to attend internal meetings.
Is It Easy To Be A Mortgage Broker?
It’s an exciting career choice, but not an easy one. There is a lot to learn about different lenders, regulations, forms, etc and on occasion it can be an uphill battle as things change once you are comfortable.
Why shouldn’t you use a mortgage broker?
Working with a mortgage broker can save you time and fees. Cons to consider are that a broker’s interests may not match your own, you may not get the best deal, and they may not guarantee estimates. Take the time to contact the lenders directly and find out what mortgages may be available to you.
Is It Better To Go With A Mortgage Broker Or A Bank?
Who Should Use a Mortgage Broker? In general, if your loan is a straightforward transaction and your credit, income, and assets are strong, you can potentially save time and money with a bank. If your application is challenging, a broker who knows which lenders are the most flexible can help.
How Do Mortgage Brokers Succeed?
Follow these 7 mortgage broker success tips:
- Always do your homework and offer multiple loan options.
- Make sure you reply to emails and calls in a timely manner.
- Never skip the details of any loan product, fee, or service.
- Avoid rushing your customers.
- Prove your success.
What is the commission for a mortgage broker?
Lenders usually pay a higher commission than borrowers. When lenders compensate mortgage brokers, they typically pay between 0.5% and 2.75% of the total amount of the loan. When borrowers pay the commission, mortgage brokers typically charge an origination fee that is less than 3% of the loan amount.
What is the difference between a Mortgage Broker and a Realtor?
A mortgage broker is either a firm or an individual authorized to handle mortgages and employ other mortgage brokers. In contrast, a mortgage broker works on behalf of the company or the person with the broker license. … Mortgage brokers and agents have access to the same programs offered by over 67 lenders.
What does a mortgage broker do?
A Mortgage Broker: Acts as an intermediary between the lender and the borrower, doing the time consuming process of securing the loan and collecting the significant paperwork associated with it.