According to the government of Alberta, a mortgage associate makes an average of $75,982 annually, higher than the median Canadian and Albertan salaries. The mortgage associate job is also something people tend to feel good about doing – you’re helping individuals and families become homeowners, sometimes for the first time. And you’re doing it in a way that helps people find the best lender for their particular circumstances. It’s a great job that’s both rewarding financially and emotionally. And the best part is, you only need a mortgage associate licence in Alberta to start!
While obtaining the licence requires some work, the good news is that it’s also relatively easy. In this brief guide, we’ll show you the nine easy steps to becoming a licensed mortgage associate in Alberta.
Ready to get started? Let’s go!
Step 1: Learn What a Mortgage Associate Does
Before getting too deep into the licensing aspect, it’s first essential to learn what a mortgage associate’s job entails.
Mortgaging is the art of structuring available financial resources of the clients to find the best financing solution for them, As a mortgage associate, you will not be lending any of your own money; instead, you’ll be acting as a matchmaker between lender products and the borrowers scenarios and needs.
Consider the following example. Let’s say someone wants to apply for a mortgage with average, but not-so-great credit. This person can apply directly to banks, one after the other, risking rejection and often being limited to products and policies of that one bank, before getting assessed by the second bank.
Every time the person applies, their credit is pulled and possibly lowering his or her credit score.
Or, they can contact a mortgage associate and have their credit pulled just once. The mortgage associate can review lending options from various banks, credit unions, and other financial institutions, selecting the best product for their needs, saving them the hassle of shopping with various financial institutions.
The mortgage broker serves banks and other lenders also by matching their products with appropriate customers. It truly is a win-win!
Step 2: Confirm Your Eligibility for a Mortgage Associate Licence in Alberta
Assuming that becoming a mortgage associate sounds like a good career path, you must confirm your eligibility to obtain a licence.
The Real Estate Council of Alberta (RECA) issues these licences and requires that anyone interested in becoming a mortgage associate or broker must meet the following qualifications:
· Applicants must be at least the age of majority (18).
· Applicants must be eligible to study and work in Canada legally.
· All applicants must have government-issued identification (driver’s licence, passport, etc.).
· Applicants must have at least a high school education in Canada or equivalent you must have your educational degrees assessed from authorities like WES if you were not educated in Canada.
· Lastly, applicants must be proficient in English..RECA website has list of the minimum score you need in English Proficiency Tests. In Alberta, proficiency in French is not a requirement.
If you meet the eligibility requirements listed above, you can move on to the following step! If not, you’ll need to work on completing the above requirements before you can proceed further.
Step 3: Complete the Application Process with the RECA
Once you’ve determined that you are eligible to become a mortgage associate in Alberta, the next step is to complete the application with the RECA.
You’ll first need to create an account with the RECA. MyRECA is the council’s account management page; you can create an account here.
DO NOT RUSH, the first time you login into your account with RECA is really important so gather the info before beginning the step.
Once you’ve created an account, three options are available, depending on your particular circumstances.
If you have a mortgage associate/broker licence in another jurisdiction, you may be eligible to complete a Labour Mobility application. You can complete this application if you already have a licence in BC, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Ontario, or Quebec on RECA website.
If you do not have an existing licence but have any issues l that may appear on a background check,( Examples include being charged with a criminal offence, filing bankruptcy, having a judgment due to fraud or breach of trust, and receiving disciplinary action from a professional association)
You can address these through a Suitability Review, this is application process where RECA review your suitability to have the license based on the facts and your situation.
When you log in to myRECA for the first time, the system will ask if there is anything in your past that might prevent you from becoming licensed. If you answer yes, follow the system steps.
The Fee for a Suitability Review Application is $350.
You’ll need to upload supporting documents with your application, depending on your positive response to certain suitability questions.
If RECA reviews your application and finds that your circumstances won’t prevent you from getting a license, you can move on to the next step and begin an Education Eligibility Application.
You’ll need to provide evidence for each eligibility requirement listed in the step 2
All RECA applications cost around $350, so if you need a suitability review, you’ll pay $700 total ($350 for the suitability review and $350 for the actual application).
Once your application (or applications, depending on your circumstances) receive approval, you can proceed to the next step!
Step 4: Complete the education
Now that you have RECA account and meet all the eligibly criteria to receive the pre-licensing education here are the steps involved in taking and completion of the courses…
The education path to licensing eligibility is as follows:
You will need to complete two courses to receive your mortgage associate licence in Alberta.
The good news is that both programs have a relatively high program success rate (~70% or higher). However, you should know that these courses are not trivial and require genuine study.
Step A: Enroll in and successfully complete the Fundamentals of Mortgage Brokerage course (including passing a 100 question final exam with a score of 70% or higher).
You can enroll in this course with a course provided recognized by RECA
Currently these two providers are on RECA list for this course.
1. Alberta Mortgage Brokers Association (AMBA)
2. Alberta Real Estate School
– Timeline: Must complete the course and pass the final exam within 6 months of enrolment.
The Fundamentals of Mortgage Brokerage aims to touch upon all the required competencies defined by the RECA. In particular, you’ll learn about the following:
· Real estate terminology
· Mortgage terminology
· Mortgage products
· Credit analysis
· RECA
· Commercial vs. residential loans
· Compliance with the law
· Insurance
· Contracts and disclosures
· Ethical requirements
Step B: Successfully complete the Fundamentals of Mortgage Brokerage Pre-Licensing Exam (with RECA).
– Timeline: Must successfully complete the pre-licensing exam at RECA within 3 months of being authorized by the course provider for doing so. Authorization can be granted once you have passed the Fundamentals course final.
Step C: Enroll in and successfully complete the Practice of Mortgage Brokerage course Provided by Alberta Mortgage Brokers Association (AMBA)
(Including passing a 100-question final exam with a score of 70% or higher).
– Timeline: Must complete the course and pass the final exam within 6 months of enrolment.
As you may have already guessed, this course builds upon the previous one. Like the other course, this one is also courtesy of the AMBA, and it takes many of the concepts discussed previously and puts them into more practical terms. While the previous course is theoretical, this explains what you’ll need to know to succeed as a mortgage associate.
Some of the topics you’ll learn about in this course include:
· Comparing mortgage products
· Analyzing and assessing risk
· Finding and maintaining clients
· Understanding amortization schedules
· Preparing a mortgage application (including the documents that are necessary)
· Understanding concepts like debt service, holding periods, and mortgage default
· Private lending
· Regulatory requirements
· Qualifying a buyer
· Calculating principal and interest payments, as well as the loan-to-value ratio (LTV)
· Like the previous course, The Practice of Mortgage Brokerage costs $1,500 plus GST.
· A Canadian Qualifier Plus 4x calculator is required in the pre-licensing courses and to complete pre-licensing exams. You may download the app during your course, but you will not be permitted to use the app during your exam – only the physical calculator. for this course, but assuming you bought one for the previous lesson, you can use the same one for this course.
· You can purchase this calculator in person by appointment only from the Calgary office of AMBA or you can get it shipped anywhere in Canada.
· Price: $75.00
Shipping within Alberta: $15
Shipping outside Alberta: $25
Address: Suite 310 – 7326 10th Street NE
Calgary, AB T2E 8W1
To request a tracking number, send an email info@amba.ca
Step D: Successfully complete the Practice of Mortgage Brokerage Pre-Licensing Exam (with RECA).
– Timeline: Must successfully complete the pre-licensing exam at RECA within 3 months of being authorized by course provider which is AMBA. Authorization can be granted once you have passed the Practice course final.
And many more concepts! In short, this course will give you all the foundational theoretical knowledge you’ll need to work as a mortgage associate.
Once you have completed this course, you can take the first pre-licensing exam from the RECA (must be done within three months). You must take and pass this exam to go on to the next course.
Step 5: Provide a Criminal Background Check
With those courses out of the way, you’ll need to provide a criminal background check to the RECA. In particular, the RECA looks for a Certified Criminal Record Check (CCRC, for short).
You can contact a private, accredited fingerprint agency. You can search online to find a suitable agency and go to their offices to have your fingerprints taken.
The other option is to contact your local law enforcement division, which can also perform this check.
No matter which option you choose, the outcome is the same. The law enforcement agency or the accredited fingerprint agency will take your fingerprints and forward them to the RCMP in Ottawa. The RCMP will then compare those fingerprints to a national repository of Canadian criminal records.
If you have reason to believe that the RCMP would find a match, disclose why in the Suitability Review (back in step 3) to avoid issues at this stage. After all, if the RECA declines your application after finding problems with your criminal background check, you’ll be out over $3,000 in fees! If those issues come up in step 3, you’ll only be out a few hundred.
Once the RECA approves your background check, you’re getting close to becoming a mortgage associate!
It’s also advisable to start your background check when you are preparing to take the final exam as the result may take some to reach RECA.
Step 6: Become Employed by a Mortgage Brokerage
To apply for your formal license from the RECA, you must have employment as a mortgage associate. In other words, you’ll need to find a licensed brokerage in Alberta and have them hire you. You’ll need a formal employment contract.
WAIT, THIS IS THE MOST CRUCIAL STEP YOU ARE GOING TO TAKE
You’re looking for the best place to launch your new career. As such, it’s essential to find a company that is supportive and willing to teach you the “ropes” to help you succeed.
What kind of training do they provide? How much volume do they do? How many lenders and products do they have access to? These are very important facts to consider and make or break a mortgage associates’ career.
If you would like to know why ENRICH is a great place to start your career click here…
Step 7: Apply for Your Mortgage Associate License Alberta
At last, you are finally ready to apply for your mortgage associate license in Alberta!
The actual license costs $475 + $100 towards an assurance fund. However, there are some instances where these fees can be significantly higher, depending on whether the brokerage is on any boards or belongs to any memberships.
Assuming they do, you or the brokerage will pay the licensing fee (depending on what you agreed to as part of your employment with the brokerage). Once the RECA receives the payment, you will have a valid mortgage associate license!
Step 8: Work as a Mortgage Associate in Alberta
Fortunately, being a mortgage associate in this province is a high-reward endeavour with many perks. Once you’ve made it this far, you’ll undoubtedly enjoy working to help people realize their dreams of homeownership!
Mortgage Associate Licence Alberta: A Recap
Becoming a mortgage associate is an exciting, rewarding career that genuinely adds a positive impact on customers. People utilize mortgage brokers to help them become homeowners with mortgage products that are accessible and affordable for them. And, in the process, mortgage associates receive excellent compensation! Plus, if you dream of running your own business, you can always become a mortgage broker after a minimum of two years in the industry.
Becoming a mortgage associate costs about $3,500 (assuming the brokerage pays the licensing fee). The time it takes to become one depends mainly on how fast you can study and pass the two courses, as well as how quickly you can find employment. If you have a full-time job already and are looking to become a mortgage associate, you may need six months or more to learn everything and pass the two exams. If you have more time to dedicate to studying, you might be able to get your licence faster!
Ultimately, choosing to be a mortgage associate is a fantastic career decision. If you’re interested in becoming an associate, please follow the nine steps outlined in this article. They represent the fastest, easiest way to launch your new career!
