How to Become a Mortgage Broker in Canada?

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Mortgage brokers are licensed by the Financial Services Regulatory Authority of Ontario (FSRA). There are a few requirements to getting a FSRA license, including:

• Be 18 years of age or older
• Be a resident of Canada
• Have an Ontario mailing address that is not a P.O. Box
• Licensed as a mortgage agent for at least 24 months in the immediate 36 month period before applying for the mortgage broker license
• Work for only one mortgage brokerage and authorized to deal or trade mortgages on its behalf

Ontario Mortgage Broker Education Requirements

You will also need to take a FSRA approved course and exam. These courses are offered by Mortgage Professionals Canada (MPC).

MPC's Ontario Mortgage Broker Education Program (OMBEP) comes in two phases: an online portion and an in-class portion. Students have 6 months to complete the online portion of the course. This portion has a final exam with 50 multiple choice questions, a passing mark of 60%, and a 3 hour time limit.

Once students pass the online portion, students will then register for the in-person portion of the course. In this second phase, students will attend class for five consecutive days, Monday to Friday, from 9 am to 5 pm. There is a final exam of 100 multiple choice questions, a passing mark of 60%, and a 3 hour time limit.

Tuition for the OMBEP is $495. The OMBEP certificate is valid for three years.

Education Equivalency

Instead of taking the OMBEP, you may request for education equivalency to be applied to your application. FSRA will review your education and experience to determine whether it matches the Mortgage Broker Qualifying Standards (MBQS). This review includes a resume, assessment of your qualifications, letters from your current or previous employers, and support from your mortgage brokerage's principal broker.

Mortgage brokers in British Columbia are licensed by the BC Financial Services Authority (BCFSA). Becoming a mortgage broker is a two-step process. You will need to first become licensed as a sub-mortgage broker, and then as a mortgage broker. There are a few requirements to getting a BCFSA mortgage broker license, including:

• Be 19 years of age or older
• Complete UBC's Mortgage Brokerage in British Columbia Course
• Complete UBC's Broker's Licensing Course

An application to become licensed as a sub-mortgage broker in British Columbia costs $1,500, and the mortgage broker license costs $1,900.

BC Mortgage Broker Education Requirements

The University of British Columbia's Mortgage Brokerage in British Columbia is the only course approved by the BCFSA to be registered as a mortgage broker. The course consists of a series of assignments, multiple choice and written, that need to be passed in order to register for the final exam. Students have one year to complete these assignments, with no more than 2 assignments allowed to be completed per week.

The final exam is 100 multiple choice questions, a passing mark of 65%, and a three-hour time limit. Completion of the exam will allow you to apply for a sub-mortgage broker license. To be eligible for a mortgage broker license, you will then have to complete UBC's Broker's Licensing Course.

Structured similarly to the Mortgage Brokerage in British Columbia Course, the Broker's Licensing Course consists of a series of assignments to be completed in under one year with a final examination at the end.

Education Equivalency

If you are already licensed with the Real Estate Council of British Columbia or have already taken real estate services through UBC's Sauder School of Business, you can take the Mortgage Brokerage Supplemental Course as a replacement to the full BC Mortgage Brokerage Course. You are still required to complete the full three-hour final exam.

Tuition for the Mortgage Brokerage in British Columbia Course is $1,150, while the Supplemental Course is $775. Tuition for the Broker's Licensing Course is $1,150.

You may also receive an exemption from the British Columbia Registrar of Mortgage Brokers, based on your previous education and experience. This will allow you to skip the assignment portion of the Mortgage Brokerage Course and to take the final examination directly. UBC offers a study guide for those taking the exam directly through their Challenge Package.

Mortgage brokers are licensed by the Real Estate Council of Alberta (RECA) in Alberta. There are a few requirements to getting a mortgage broker license in Alberta, including:

• Be 18 years of age or older
• Be able to work and study in Canada
• Have at least an high school education
• Be proficient in English
• Completion of the Mortgage Associates Program
• Criminal Record Check

The application for an Alberta mortgage broker license costs $575.

Proof of English proficiency can either be a Canadian high school transcript with completion of Grade 12 English, graduation from a diploma or degree program in Canada, completed Grade 12 English in a foreign school through ACESC, or completion of english proficiency assessments.

RECA accepts assessments from TOEFL (minimum overall score of 92), IELTS (minimum 6.5), CELPIP (minimum 7), or CAEL (minimum 60).

Alberta Mortgage Broker Education Requirements

Completion of the Mortgage Associates Program is required prior to getting a mortgage broker license. The Mortgage Associates Program consists of the Fundamentals of Mortgage Brokerage course and the Practice of Mortgage Brokerage course.

The Fundamentals of Mortgage Brokerage course is run by the Real Estate Council of Alberta (RECA) and costs $1,250. The Practice of Mortgage Brokerage is run by the Alberta Mortgage Brokers Association (AMBA) and costs $1,500. These courses are completely online, while final exams are held in-person as exam testing centres.

You must complete the Mortgage Associates Program within one year. The passing grade for the exams is 70%.

Looking to become a mortgage broker in Montreal or Quebec? Quebec mortgage brokers are licensed by the Autorité des marchés financiers (AMF) There are a few requirements to getting a mortgage broker license in Quebec, including:

• Be 18 years of age or older
• Completion of secondary school (Secondary 5)
• Be able to read, write, and speak in French

Quebec Mortgage Broker Education Requirements

The AMF requires the completion of the Mortgage Brokerage Qualification Program (MBQP) before being eligible to write the final examinations. All courses are available only in French. Courses in English are expected to be added in the coming years.

AMF in-person course providers in Montreal include Collège CEI and Académie de l'entrepreneurship québécois. Online course providers include Collège CEI, Académie de l'entrepreneurship québécois, and Mortgage Professionals Canada.

The MBQP consists of two modules: Professional conduct and professional practice (F-116) and Mortgage brokerage (F-611). Mortgage Professionals Canada structures their program into two sub-programs: CHQ101 for those new to the industry and CHQ201 for those with at least two years of experience. CHQ101 lasts nine weeks while CHQ201 lasts four weeks.

After completion of two final exams, candidates will undergo a probationary period where they will work at least 28 hours per week for 12 weeks. After the probationary period is over, candidates can apply for their Quebec mortgage broker license.

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Provincial regulatory bodies govern the real estate market in Canada. The Mortgage Brokers' Regulatory Council of Canada (MBRCC) is a forum to help provincial regulators coordinate regulatory practices between provinces. Nine provinces are members of the MBRCC with the exception of Prince Edward Island.

Mortgage brokers in Quebec are regulated by the Autorité des marchés financiers. Individuals need to pass four stages of certification before becoming a licensed mortgage broker. This includes mortgage broker training, training on professional practice and ethics, and related exams.

The Financial Services Commission of Ontario (FSCO), now merged into the new Financial Services Regulatory Authority of Ontario (FSRA), regulates mortgage brokers in Ontario. A FSRA license is mandatory for mortgage brokers operating in Ontario. Their licensed name and license number must be displayed on all marketing materials and advertisements.

If you obtain a mortgage from an unlicensed mortgage broker then you are not protected under Ontario's Mortgage Brokerages, Lenders and Administrators Act. Private mortgage lenders do not need to be licensed, however they cannot advertise to the public. Licensed mortgage brokers can advertise on their behalf. Ontario requires a minimum two-day cooling off period before signing your mortgage agreement with a mortgage broker. This gives you time to carefully review your contract and terms.

The BC Financial Services Authority (BCFSA) licenses mortgage brokers in British Columbia, including brokers in Victoria and Vancouver. The Mortgage Brokers Act also requires private mortgage lenders who lend more than ten mortgages a year to be licensed as a mortgage broker.

The Real Estate Council of Alberta (RECA) is the governing body for the real estate industry in Alberta, where “Anyone who solicits individuals to borrow or lend money secured by a mortgage, or negotiates a mortgage on behalf of another person must hold a licence with RECA”.

You can check if a mortgage broker is licensed by going to the website of the regulatory body for your province or territory. If the broker is licensed, the listing will display the current status of the license and may also include possible restrictions or disciplinary decisions against the broker, depending on the regulatory body. Depending on your province, brokers may be required to state their brokerage license number on their website or on promotional material and advertisements, such as in Ontario. You can find a list of each provincial regulatory authority on the following table