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Canada’s Regulation of Mortgage Broker Industry Helps Canadians

The debtor is the one who pleas for the money while the creditor is the one who lends the loan. This is the basic thing taking place in a mortgage market. Each country has its own rules and regulation that has to be followed when a transaction is being taken place. The government warns the people to be careful about the Industry and the Brokers because a lot of them are fake or not federal.  Well, in this article we are going to talk about the Canadian Brokers and the Mortgage market in Canada.

We would have heard a lot about the Canadian Mortgage market and the brokers but most of them are false. They do not have the actual content that speaks about the Canadian mortgage market and its regulations. Many of these articles state the Mortgage market in Canada has a lot of loop holes and so falling into the hands of fake brokers is a common thing to happen. But, the real story is not that way. The laws and regulations in Canada are very strict and there is a licensing system in Canada which restricts all the non-licensed people to stay away from the business.

Two Provinces in Canada are federal while some others are not federal, but they have their own authorized licensing system. The agencies that are federal are New Brunswick and Prince Edward Island. The other agencies have a licensing system that is registered in the government books. So, a faking business is a vain thought by any non-licensed brokers in Canada. Canadian Brokers can be easily identified from the other ones because they will be provided a license and this license is the qualification to do the job. The fake ones can be easily ripped off because every Canadian broker should produce a valid license.

There can be changes in the laws from Industry to Industry, but the policies are almost the same. Yes, the Canadian government and the licensed Industries are working hard to keep away all the fake brokers and they have had success in a big way also. Let’s see some of the steps that are taken by the government to keep away the non-authorized brokers,

Ø The brokers should provide the Business address. This is to ensure that they have an authorized business place to carry out the business in the right way.

Ø The broker should have registered as a Mortgage broker in the government and only after the verification process; the broker will be given the license. He can either register as a Mortgage broker or as a mortgage agent.

Ø The broker should have a clear record of all the records and the books that has all the information about the debtors. This is mandatory and should be ready with them always because the audit team may come at any time for auditing.

Ø The Financing report should be maintained annually and then it should be to the standards of the registrar. Sometimes, when the reports are weak or poor, the registrar has the rights to sack you.

Ø The disclosure of all the credit agreements should be done  

Ø Conflict of interest disclosure is required.

These are the steps that are taken to reduce the risk that the debtor is going to face when the person calling himself as the mortgage broker, when he doesn’t have the qualification or the license to be in this business. And, whatever be the business, there is a risk factor even if a lot of necessary steps are taken. Even if you are given the license and given permission to do the business, you cannot always be the best without any experience. You can excel in this field only if you have some amount of patience and experience. Because there are certain things that can only be learnt through experience and time. The only thing that is expected from the new workers is hard work and time.

Without some amount of experience, the transactions are difficult to be processed. And so, when you select a broker, try selecting one who has been in the field for some years. There can be some brokers who have the license in their hands, but no experience. If you fall into their hands, then you will have a rough time. Be sure to make the full use of broker training. Even if you pass your broker exams, the skill can be developed only through experience. Communication skill is the main tool in this field. Canada’s rules and regulation don't have much to make you a good broker, you have to work hard in order to become one.

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