A mortgage broker is an expert in the real estate industry. They act as a middleman between financial institutions and individuals seeking a mortgage.
To ensure the protection of individuals using their services, the professional activities of the mortgage broker are governed by an independent body. However, it should be noted that since May 1, 2020, following the adoption of Bill 141 aimed at regulating the financial sector, the administration of mortgage brokerage has been transferred to a new institution. Previously overseen by the OACIQ, this service is now provided by the Autorité des marchés financiers (AMF).
Here are the steps, as recognized by the AMF, which are involved in becoming a mortgage broker.
1. Follow a training program recognized by the Autorité des marchés financiers
The journey to becoming a mortgage broker starts with specialized training. It must be recognized by the AMF to allow the candidate to be eligible for future mortgage brokerage exams.
The training should be based on the PQCH Training Curriculum and should include the following modules:
- Ethics and Professional Practice (F-116)
- Mortgage brokerage (F-611)
The compulsory courses are currently offered online or in-person by a few organizations:
- Académie de l’entrepreneurship québécois (in person and online) ;
- CEI college ((in person and online) ;
- Mortgage professionals of Canada (online only).
However, this list will be improved as the programs are recognized by the Autorité des marchés financiers. You can visit the AMF website directly to see the full list.
Once successfully completed, the training is valid for a period of two years.
2. Signing up for compulsory exams
Once the specialist training has been completed, the AMF requires the candidate to pass two exams to ensure that as a future professional they have all the necessary skills to offer the right advice to their clients.
To be able to register for these exams, two steps are required: obtain the registration authorization and select the date of the exams.
How to get the authorization to register for exams
At this stage, the candidate must provide valid proof of Canadian citizenship. They must also agree to keep the content of future exams confidential.
When applying for authorization to register, the candidate's eligibility is verified. Authorization is granted when the individual meets the training requirements for the discipline in question.
Select the date of the exams
Once the authorization is received, the aspiring mortgage broker can register for the AMF exams. They must then choose:
- The place where they will take the exams;
- The language of the exam;
- The date and time of the exam.
Once registration is complete, the candidate receives a notice for the meeting, as well as a document entitled "Examination rules". This notice contains all the essential information for the smooth running of the exams. The candidate must consult it.
3. Passing the compulsory exams
At the selected time and date, the candidate must be present for the following exams:
- 16-116 — Set up an ethical professional practice in compliance with the rules governing mortgage brokerage
- 16-611 — Complete a mortgage brokerage transaction suited to the client’s situation and needs
Under the Mortgage Brokerage Qualification Program (PQCH), the successful exam is valid for a period of two years from the date of passing. In the event that a candidate fails one or the other of the exams, they have 3 additional retakes to attempt to complete it, as long as their minimum training remains valid.
To register as an independent representative or to be able to obtain the position of responsible manager, the candidate must pass an additional examination relating to professional practice:
4. Complete the probationary period required by the Autorité des marchés financiers
The next step in obtaining a representative's certificate and being able to exercise mortgage brokerage law is to complete a probationary period. This is an internship during which the candidate must complete a minimum of 28 hours per week for a period of 12 weeks.
The main objective of this probationary period is to ensure that the candidate puts into practice the knowledge, skills and attitudes that are required to perform the role of a mortgage broker. This practice takes place in a real work context and is monitored for the entire period of the internship by a certified representative.
To be eligible for the probationary period, the individual must meet these criteria:
- Having passed the AMF exams (these must still be valid when the probationary period begins);
- Having the right to hold a job in Quebec;
- Not be in one of the following situations:
- Having already been the subject of disciplinary sanctions by a disciplinary committee or by an organization in Quebec, another province or another state responsible for the supervision and control of persons acting as a representative;
- Having been found guilty by a Canadian or foreign court of an offence or an act related to the exercise of the activity of representative;
- Being under tutorship or curatorship;
- Having already filed for bankruptcy or have a receiver order issued against you;
- Not possessing the integrity necessary to exercise the activities of a representative;
- Being in a situation that is incompatible with the exercise of representative activities.
Source: AMF
For the duration of the internship, the Autorité des marchés financiers issues the candidate with a probationary certificate. During the period of validity of this certificate, the actions of the intern are covered by the employer's professional liability insurance and by the Financial Services Compensation Fund. This ensures the protection of the consumer in the event that they are affected by any mistakes, omissions, fraud or misappropriation of funds on the part of the intern.
5. Apply for a representative's certificate
The last step in officially obtaining mortgage brokerage rights is to get a representative's certificate. To do this, the candidate must apply with the AMF before the expiration of the validity of these exams and pay the eligible fees. If the exam expiry date is during the probationary period, the individual has 30 days following their internship to apply.
During the processing period for the representative's certificate request, the probationary certificate remains in effect (for a maximum period of 45 days following the end of the internship).
To maintain their right to practice, the mortgage broker will have to pay an annual membership fee. This amounts to $ 250 per year.
For more information on requesting a representative's certificate, check out this page.
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