Searching for how to become a mortgage broker in Alberta? Why don’t you consider a new career in the real estate sector?
With a fast-growing population of professionals in Alberta, it’s no doubt that real estate has better opportunities for those who would want to join. This must-have led to your quest on how to become a mortgage broker in Alberta.
There are several opportunities in real estate, however, if you have a strong intuition for contracts and finance, if building new relationships is what you excel at, or you have a strong standing for ethics, then you might as well consider yourself a great candidate for the real estate mortgage broker industry.
A mortgage broker is an individual who stands in between a financial institution that provides loans secured with real estate and individuals interested in buying real estate who need to borrow money in the form of a loan to do so.
A mortgage broker helps connect lenders seeking borrowers as well as help ensure that the borrower’s financial situation and interest rate as proposed is realized.
A mortgage broker also carries out paperwork between the mortgage borrower, and the mortgage lender for approval and underwriting purposes and gets a commission from both parties involved or one party as stipulated within the contract agreement.
They also verify all documents presented by both parties, which are necessary for the paperwork.
Becoming a mortgage broker in Alberta is not as difficult as you think, however, there are necessary steps you must follow to bring your dreams of becoming a mortgage broker to life.
In this article, I will guide you through the best ways on how you can become a mortgage broker in Alberta.
The List of Steps on How To Become A Mortgage Broker In Alberta
Searching for how to become a mortgage broker in Alberta, here are the steps:
- Step 1: Complete the entry-level educational requirements in your province
- Step 2: Get hired
- Step 3: Obtain a license and register it
- Step 4: Get Working
- Step 5: Continue to develop yourself
- Step 6: Take it to the Next Level (optional)
Step 1: Complete the entry-level educational requirements in your province
If you want to become a mortgage broker in Alberta, you must enroll yourself in the Mortgage Associate Program (MAP), after you have obtained a degree.
The first course is offered by the Real Estate Council of Alberta (RECA), which is an agency that protects consumers by regulating real estate mortgage property management and monuments in Alberta.
The course fee grants you access to the online manual, and also grants you access to the exam.
On successful application and registration for the first course, you will be given a 180 days period to complete the course, before you can move over to the next course.
Completing the first course is a prerequisite to starting the second course. While the first course is offered by RECA, the second course is offered by the Alberta Mortgage Brokers Association (AMBA).
The fees for the second course include the cost of materials, the online course, as well as the exam fee. A one-year duration is given in total to complete the MAP program from its start to its end.
Step 2: Get hired
After completing an entry-level educational requirement, the next step is for you to get hired.
If you are interested in becoming a licensed mortgage broker in Alberta, it is mandatory that you get hired by a mortgage associate, where the broker at the brokerage will help you in finalizing your mortgage association licensing.
While choosing a mortgage associate to join in order to get a license, care should be taken in choosing a company that meets your professional needs.
This is because the associate you join determines what you learn, and the working style you adopt and contribute to your corporate objectives as well.
Step 3: Obtain a license and register it.
Once you are hired by a brokerage, your brokerage company will begin your licensing or registration process.
They will have you fill out an application, which will then be sent to RECA, and then you will be able to get your license.
However before an application process will commence, you will have to meet up with the eligibility requirements which are listed below:
- at least 18 years of age
- able to lawfully study and work in Canada
- able to provide specific government-issued identification (ID)
- have a minimum of Canadian high school education or equivalent
- be proficient in the English language
If you meet up with the following requirement, you can now proceed to set up your account with myRECA for the remaining process of obtaining your licensing.
Setting up a myRECA Account
You also need to set up an account with myRECA.
myRECA is RECA’s educational platform that allows you to enroll for the Real Estate and Mortgage Brokerage Exams in Alberta.
This account is free to set up and takes just a few minutes to set up. After this is done, you may decide to start your eligibility application.
There are a couple of options available, for different cases of people moving from different locations, however, the option you may want to pick there is Educational Eligibility.
Note: If you have moved from a different province, then you are basically transferring your license which is a different process.
And not covered within this article. This guide is for anybody who is new to real estate and does not hold a real estate license anywhere else and they just want to start this process in Alberta.
It typically costs $100 to start an eligibility application on myRECA.
This fee is non-refundable, and Once paid RECA will start your application process.
Once your application fee is paid and processed, you can now proceed to the next step by taking some paid educational courses in myRECA, which are:
- Course 1 – Fundamentals of Mortgage Brokerage
Details: This course covers a wide range of foundational information related to mortgage brokerage in Alberta.
Regulatory Body: The Fundamentals of Mortgage Brokerage Course is offered online through RECA.
Course Fees: $1250
- Course 2 – Practice of Mortgage Brokerage
Details: This course provides learners with the opportunity to apply their knowledge through practice-related scenarios that cover a wide variety of situations.
Regulatory Body: The Practice of Mortgage Brokerage Course is delivered online through the Alberta Mortgage Brokers Association (AMBA).
Course Fees: $1500 + GST
Between the 2 courses, you get 12 months to complete the education requirements.
Within 1 year from the date you enroll in the first course, you have to finish both of these courses.
The Fundamentals of Real Estate Course, which is a Mandatory Course
This course gives you the foundational knowledge, and skills that you would need to practice as a mortgage broker in Alberta. The cost for this course is $1250.
The course fee grants you access to the online course materials, as well as the course manuals from RECA.
In this course, you will be required to complete the online activities associated with the course and quizzes as well.
Once you finish the units, you can take a practice exam and then write the final exam, which can be taken at authorized exam centers.
After taking the first course, you will be required to take a second course. The second course demands you take a specialty.
Below is a list of specialties available for you could choose from :
1. Practice of Residential Real Estate
2. Practice of Commercial Real Estate
3. Practice of Rural Real Estate
4. Practice of Property Management
Choosing a specialty, and completing it, is a prerequisite to you getting your Realtor license in Alberta.
Completing more than one course is allowed, however, you will be required to start with one of the above-listed courses.
Most people prefer to go for the whole course at a time, while some prefer to wait till when they have their licenses and want to expand before going back to take more courses.
However, some professions in real estate demand you acquire more knowledge through the above-listed courses.
- The cost for each of the courses here is $800.
Certified Criminal Record Check(CCRC)
Once you have completed your pre-licensing courses, the next step is to get a Certified Criminal Record Check (CCRC).
There are a couple of different types of criminal record checks, however, you should consider getting the one with a fingerprint as that is what is required.
This type of criminal record takes a long time to acquire, as your record needs to be sent to a Royal Canadian Mounted Police (RCMP), in Ottawa before you can get your result.
It typically takes about two to three weeks for RECA to receive your results. Results are not sent to individuals directly but are sent to RECA.
If you have an already existing criminal record, you can as well submit it to RECA, but this record should not have lasted more than six months.
Step 4: Get Working
After successfully obtaining your license, you can now start practicing.
Having known this far on how to become a mortgage broker in Alberta, In order to build your business, you may consider advertising, networking, building referral sources and providing sound mortgage advice to your customers, and ensuring quality customer service delivery.
Secondly, you must stay up-to-date with lenders’ products, as well as their policies while ensuring you comply with regulatory requirements.
This will help you in creating a good customer reputation, which in the end helps you build more loyal customers.
Step 5: Continue to develop yourself
Furthermore, on knowing how to become a mortgage broker in Alberta, you must make up your mind to develop yourself.
To remain relevant as a licensed mortgage broker, after obtaining a license, you will have to develop yourself.
Developing yourself will demand you keep learning, you keep accessing educational opportunities and attending events relevant to the industry.
Continuously developing yourself may demand you acquire more skills that are relevant within your industry.
6. Take it to the Next Level (optional)
Finally, on our list of steps on how to become a mortgage broker in Alberta, you should as well decide to take your career to the next level, by upgrading your license/registration (where applicable).
Though this may not be mandatory, it will ensure you rise through the ranks, while increasing your portfolio. Things you can do to upgrade your license include:
- Acquiring a minimum of two (2) years of experience as a licensed/registered mortgage professional.
- Complete the senior/broker-level educational requirements.
- Upgrade your license/registration status.
The requirement for license upgrades may vary across provinces.
However, you could visit the provincial regulator in your location for more information.
Your Future as a Mortgage Broker in Alberta
Alberta has fewer ( less expensive) educational requirements for becoming a mortgage broker than other Canadian jurisdictions.
More than anything else, your professional experience as a mortgage associate, is valued by the government.
Your experience and talents as a mortgage associate can help you become a licensed and recognized mortgage broker if you ever wish to open your own firm.
The path explained in this article on how to become a mortgage broker in Alberta can help you become a mortgage broker in Alberta’s real estate market, whether you wish to work with clients or manage associates in your own firm.
What does it take to become a mortgage broker in Alberta, Canada?
To be licensed as a mortgage agent, after checking out the steps on how to become a mortgage broker in Alberta, you must complete the following requirements:
- Be at least 18 years old
- Become a Canadian permanent resident
- Must have a mailing address in Alberta that can receive registered mail if it is situated there.
- To trade in mortgages, you must be approved by a mortgage brokerage.
- Education requirements for mortgage agents must be met.
- A working email address.
- Only work for one mortgage firm.
- A Canadian Citizen or have a valid Permanent Resident (PR) Card or Open Work Permit.
- Have a Canadian High School Diploma or an Equivalent (post-college diploma or university) Degree.
- Be Proficient in English.
How much does a mortgage broker make in Alberta?
The average salary of a mortgage broker in Alberta is $75,000 per year and $38.46 per hour.
Entry-level positions start with an average salary of $49,688 per year.
Experienced mortgage brokers earn as high as $115,000 per year.
The salary range varies across locations and levels of education acquired.
Therefore to increase your chances of earning high, you may consider acquiring more education, and professional certifications.
How long does it take to be a mortgage broker in Alberta
Knowing how long it will take you to become a mortgage broker in Alberta is an essential part of knowing how to become a mortgage broker in Alberta. The process of qualification for a mortgage broker in Alberta can take between 6 and 18 months to complete.
Typically after applying for licensing, you are required to complete about two courses, on your myRECA account.
These courses must be completed on or before the expiration of one year.
How much does it cost to become a mortgage broker in Alberta?
In total, it costs approximately $3000 to $4000 to get started when you sum up all the costs involved.
A non-refundable application fee of $100 is usually required to start up an application.
After that is made, you will have to pay for your first-course requirement, which is about $1250, after which follows another payment of $1500 for the second course.
Conclusion on how to become a real estate broker in Alberta
Having gone through the steps on how to become a mortgage broker in Alberta, the mortgage industry is no doubt a great fit for people of all backgrounds, levels of experience, and most especially people looking to take up a new challenge in a different career field entirely.
However, just like in other career fields, you will need to pass through some rigorous processes, as required before you can get certified, and eventually start practicing.
Knowing how to become a mortgage broker in Alberta and what it takes to get certified, and remaining relevant within the mortgage industry is enough for you to build a successful career in this field.
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