Course Outline

1. So You Want to be a Mortgage Agent
• What is a mortgage broker?
• Mortgage Broker vs Mortgage Agent vs Mortgage Development Officer
• What does it take to earn your money?
• How will you get paid?
• Steps in a mortgage transaction
• History of the Mortgage Brokerage Industry
• Could you make it being self-employed?

2. So Much Money....So Little Time
• The Financial Services Industry
• Sources of mortgage funds
• Differentiating between lenders
• Types of mortgage transactions: purchase, refinance, equity take-out, residential, commercial, industrial
• First mortgages
• Second mortgages
• Hi-ratio mortgages / conventional mortgages
• Mortgage Insurance
• Mortgage Backed Securities
• How are rates determined?
• Costs in a mortgage transaction....who pays what?

3. What is a Mortgage...and Why all the fuss?
• Legal concepts...ownership of land
• Legal concepts..contract law
• Legal concepts..joint ownership
• Standard Charge Terms
• Land Registry Systems
• Realty Taxes
• Condominium Fees

4 Who Does What....When....Why?
• The Realtor....reviewing the Agreement of Purchase and Sale
• The Appraiser...3 approaches to value, reading and understanding appraisals
• Surveyor....what is a survey?
• Solicitor...closing the transaction
• Title Insurance

5. Making It All Add Up
• Mortgage mathematics
• Using the HP10BII
• Compound Interest
• Equivalent Rates
• Calculating Mortgage Payments
• Calculating Loan to Value Ratio
• Calculating GDS / TDS
• Calculating Interest Adjustment
• Calculating Cost of Borrowing
• Calculating Interest Penalties

6. Asking the Right Questions
• Taking a mortgage application
• Credit Reports
• Income confirmation
• Equity confirmation
• Dealing with derogatory information
• Discussing closing costs for a real estate transaction
• Discussing all fees and expenses involved in the mortgage

7. What Do I Do With All This Information?
• Underwriting and file management
• Reviewing the file and documentation
• Choosing the correct mortgage product
• Choosing the correct lender
• Submitting the application
• The art of negotiation
• Electronic submission software
• Steps in a mortgage transaction
• Instructing the solicitor
• Follow-up

8. Keeping Score....and Making Sure It Comes Back
• Mortgage administration...processing payments
• Remedies on default

9. Big Brother is Watching
• The Mortgage Brokers Act – an overview
• Completing Form 1
• Completing Form 2
• FSCO guidelines
• Contracts

10. What Am I Really Selling?
• Marketing
• Developing marketing plans
• Developing a business plan
• Selling skills
• Protecting your lender
• Ethical behaviour / fiduciary duty / best practices

11. Glossary of Terms

Learning Objectives:

Upon successful completion of this course, the student will be able to:

• Demonstrate an understanding of the Canadian mortgage industry including the roles of the various participants in the market in which mortgages are transacted.
• Discuss how the Canadian mortgage industry is regulated and demonstrate an understanding of contract law.
• Explain ownership of property including the registration of real estate mortgages.
• Identify the various appraisal methods and demonstrate their use in determining value.
• Describe various mortgage products and funding sources and demonstrate an understanding of how mortgage payments are calculated.
• Demonstrate an understanding of borrower income, financial statements and income taxation.
• Calculate qualifying ratios and demonstrate an understanding of consumer credit, mortgage application process and mortgage lending.
• Demonstrate an understanding of mortgage administration and mortgage servicing.
• Describe various mortgage related products such as Mortgage Default Insurance and Title Insurance.
• Explain the use of technology within the Canadian mortgage industry and demonstrate how to perform financial calculations using mortgage software.
• Complete disclosure documents
• Demonstrate an understanding of professional conduct, best practices, consumer protection and advertising standards.

For more information about this course contact:

This course is currently offered under license to the Independent Mortgage Brokers Association of Ontario. For course locations visit www.imba.ca

or contact the authors:
Paul Bath: paul_bath@centum.ca
Lorne Collis: kit@bramguard.com