Becoming a mortgage broker in Ontario is a process that involves several steps, including education course, examinations, and licensing. This guide provides a comprehensive overview of the process.
It’s important to note that as a mortgage agent, level 1, you will still be able to broker deals and receive commissions. The primary difference between a level 1 and 2 agent is that level 1 agents can only broker institutional deals, so no private lenders. Mortgage Brokers may manage and hire agents, and can also become Principal Brokers of a brokerage.
Step 1. Complete the Mortgage Agent Course
The journey to becoming a mortgage broker in Ontario begins with becoming a licensed mortgage agent, level 1. This involves completing a Mortgage Agent education program approved by the Financial Services Regulatory Authority of Ontario (FSRA). The cost of these programs can range from $338 to $425. There are 3 course providers as listed on FSRA’s website here.
A full breakdown and review of each of the course providers can be found here.
You must then be licensed as an agent, level 1 for at least 1 year before proceed to the mortgage broker license.
Step 2. Apply for your Mortgage Agent, Level 1 license
Join a brokerage and apply for your license to get licensed as an agent, level 1 – this is your starting point as a licensee.
Step 3. Complete the Private Mortgages Course
The next step is to complete the Private Mortgage Course. This involves additional education and examination. The same three providers that offer the Mortgage Agent Course also offer the Private Mortgages Course. The cost of these programs can range from $298 to $400. There are 3 course providers as listed on FSRA’s website here.
A full breakdown and review of each of the course providers can be found here.
You must then be licensed as an agent, level 1 for at least 1 year before proceeding to the agent, level 2 license.
Step 4. Apply for your Mortgage Agent, Level 2 license
Make your application directly to FSRA. This will allow you to then broker deals with non-institutional (private) lenders.
Step 5. Complete the Mortgage Broker Course
The next step is to complete the Mortgage Broker Course. This involves additional education and examination. The same three providers that offer the Mortgage Agent Course and the Private Mortgages Course also offer the Mortgage Broker Course. The cost of these programs can range from $398 to $495. There are 3 course providers as listed on FSRA’s website here.
A full breakdown and review of each of the course providers can be found here.
You must be licensed as an agent, level 2 for at least 2 years before proceeding with an application for your mortgage broker license.
Step 6. Apply for your Mortgage Broker License
Make your application directly to FSRA. This will allow you to hire and manage agents, as well as become Principal Broker of a brokerage.
Summary
The process to become a licensed mortgage broker in Ontario will take at least 3 years from start to finish. In this time you would need to complete the Mortgage Agent Course, the Private Mortgages Course, the Mortgage Broker Course and any other mandatory continuing education required by the regulator.
Please note that these costs and requirement are approximate and may vary. For the most accurate and up-to-date information, please visit the FSRA’s website.