In New Brunswick, mortgage brokers and mortgage associates are licensed professionals who can help you negotiate and navigate the complicated and sometimes overwhelming process of getting a mortgage. In New Brunswick, these individuals must be licensed with FCNB and must meet certain education requirements prescribed by FCNB.
A mortgage associate is an individual who has completed an approved mortgage associate education course. There is no minimum work experience in the industry required.
A mortgage broker is an individual who has at least 24 months (in the last 36 months) experience in the industry and who has completed an approved mortgage broker education course. The broker course provides in-depth knowledge on managing the brokerage and supervision of other brokers and associates.
A mortgage broker or mortgage associate acts as an intermediary between a borrower and a lender. In New Brunswick, a mortgage broker or mortgage associate can act for either the borrower or the lender, but not both. Mortgage brokers and mortgage associates do not actually lend money. When acting on behalf of the borrower they essentially shop around to different lenders on the borrower’s behalf. Ultimately, using the services of a mortgage broker or mortgage associate may be more convenient because they can help with the mortgage application process, search out a lender and negotiate mortgage terms and rates.
An individual with the Accredited Mortgage Professional (AMP) designation has successfully completed a national competency exam and must complete continuing education each year to maintain their designation. An AMP designation is not a licence and is not administered by FCNB.
Questions to Ask when Choosing a Mortgage Broker
Here are some important questions to ask when choosing with a mortgage broker:
- Are you a licensed mortgage broker or mortgage associate?
- What services do you provide and how will you help me?
- Do you represent the borrower or the lender?
- Do I need to sign a contract?
- Do you charge a fee? How will you be compensated?
- How many lenders do you work with? Was most of your business done through one lender in the last year?
Licence and Education Requirements
Under the Mortgage Brokers Act, an individual must be licensed with FCNB to broker or administer mortgages or be in the business of brokering mortgages in New Brunswick, unless an exemption applies. Licensing protects New Brunswickers because FCNB will only issue a licence if the applicant consents to a criminal record check and meets certain education requirements where applicable.
How much does it cost?
Mortgage brokers and mortgage associates can be paid by the lender or the borrower or both. Be sure to read all the documentation and disclosure information that your mortgage broker or mortgage associate provides you. This information will help you to better understand the services your mortgage broker or mortgage associate will provide you and any fees or costs that you would be responsible for paying. A mortgage broker or mortgage associate must provide you with this information at least 2 days before you enter into a mortgage agreement. Mortgage brokers and mortgage associates are not permitted to charge or accept a fee from the borrower until the mortgage has been funded and secured by the real property.