The facts about the mortgage market in Canada is that in the last forty years, it has undergone substantial changes. Depository institutions account for the majority of the market holding 69 percent of outstanding Canadian residential mortgage debt by the end of-2007. By the end of 2008, CAD 566 billion or 62 percent of the CAD 906 billion outstanding residential mortgage debt in Canada was held by depository institutions. The main reason for the growth in the bank share was due to the 1992 Bank Act changes, which permitted banks to own trust and loan companies that had been dominant players in the market. Prior to 1954, banks were not permitted to make mortgage loans. However gradually from the 1954 Bank Act amendments and thereafter, laws allowed banks an expanding share in the market over time. Yet, until 1992 conventional mortgages value could only be below 10 percent of bank deposits. Mortgage brokers have played a growing role in the market.

A mortgage consumer survey conducted by the Canada Mortgage and Housing Corporation in 2009 revealed that between June of 2008 and June of 2009, a quarter of all mortgage transactions were arranged through mortgage brokers. According to statistics, over 50 percent of the homebuyers accept the first rate their bank offers. This means that the majority are not using a mortgage broker who shops around for the best rate for its client. However, among first-time buyers and young women, a rising number are turning to mortgage brokers. In the last decade, mortgage brokers have seen a surge in business. Ten years ago, they comprised under 10 percent of the mortgage market; today, they comprise 25 percent of the share. Brokers bring personalized service and they can be used to get banks to offer more favourable terms.

There are several reasons for using an accredited independent mortgage broker. The broker educates you on your options. You get independent, unbiased advice. Unlike a bank employee, or a broker that is tied to a bank, an independent mortgage broker offers unbiased advice. The broker, as a freelancer, will not favour one lender over another based on anything other than rates. They will negotiate rates with lenders on your behalf and all their services are for free. Provincial laws require education, training and licensing standards for qualified brokers. A competent mortgage broker is licensed and in good standing with the provincial regulator.

A distinguishing feature of a mortgage broker, over a mortgage agent, is that the broker has more years of experience. The broker must pass a mortgage broker course. A broker can supervise a mortgage agent.

Mortgage agent may only work for a single mortgage brokerage. Like the broker the agent must be licenced. This requires meeting certain educational qualifications. The agent has to apply for a licence within two years of finishing the required educational program. These can be offered by commercial vendors. The curriculum is standardized; but, the format offerings can vary. An exam tests what has been learned.

The first step for obtaining a mortgage broker licence requires passing the mortgage agent education program. Then a mortgage agent licence should be obtained. The mortgage broker education course must be completed successfully. Thereafter application can be made for a mortgage broker licence. In the course of this process, the prospective broker should have worked as an agent for a year and worked under a broker.

Brokers research mortgage options and seek the best result for the client. Using a mortgage broker can save you money as well as your time. Brokers have access to far more mortgage products than individual lenders. Lenders only have limited offerings. Brokers also have access to unique products.

A mortgage broker provides services free of charge. The lender pays the broker for placing the mortgage with them. A broker is paid on the size of the mortgage, not the rate. The commission they earn from the lender tends to be higher for a fixed term and lower for variable mortgage. Unlike the bank, business hours can extend beyond banking hours. They are often available on evenings and weekends. Brokers can renew mortgages as well. They can help with leveraged loans for investment. For first time home buyers a Mortgage broker can help you through the various steps of the process.

A career in a mortgage brokerage begins as a mortgage agent. If you have a good head for numbers, consider a mortgage broker course. Take the first step to your future as a esteemed mortgage broker!