Mortgage brokers are paid commissions regardless of whether they are self-employed or have joined a mortgage agency. The remuneration is directly proportional to the value of the property traded and the volume of transactions. It is therefore linked to the efforts made, the time invested and productivity that will determine the salary of the mortgage broker.
In the event that your mortgage broker recommends you to a financial institution and you take out a mortgage on a 5-year term, the lender will give approximately 0.50% to 0.80% of your mortgage amount to your broker.
For instance, if your mortgage broker manages to get a mortgage loan financed by any of the financial institutions in his network every week, the weekly commissions of more or less $1,600 would get him an annual salary of approximately $83,500 (before any withholding tax). Although highly variable, the average annual salary of a mortgage broker is at least $ 60,000.
A new mortgage broker may also choose to apply for a regular job with a financial institution. A broker who works in a bank or any other financial institution will receive a fixed remuneration while enjoying holidays, group insurance and other benefits. In addition, the title of financial adviser exempts brokers from passing brokerage exams in order to obtain certification.
Role in the mortgage market
An increasing number of mortgage borrowers are choosing to use the knowledge & services of a broker. These mortgage experts justify their remuneration by taking the time to listen to borrowers. Maybe you are currently a seasonal or self-employed worker, a first-time homebuyer or a newcomer or maybe you have an unfavourable credit rating. The first step of an experienced mortgage broker is to understand your situation.
Whatever your situation, your borrowing capacity or your motivation (purchase, mortgage renewal, refinancing), your broker will adapt to your situation. This is done based on extensive knowledge of mortgage products offered by banks, trust companies and credit unions. As a result, you are clearly presented with the optimal mortgage loan.
The broker will present you, in clear terms, the advantages and disadvantages of several mortgage products from the first appointment. They will then guide you to the lender whose service will be tailored to your needs and your budget.