Mortgage Broker Career Facts

A mortgage broker is a person who buys and sells mortgages between lenders. The transfer of mortgages is often conducted on the basis of debt management arrangements, or as a result of the mortgagee looking for better terms.

The work environment

The mortgage broker works in much the same way as a loan officer in many respects. However, mortgage brokerage is a transaction between three parties, two lenders and a borrower, not a lender and a borrower, as is the case in basic loan scenarios. 

The mortgage broker's work is systematic. Each stage of brokerage requires a series of steps:

  • Assessment of the value of the mortgage.
  • Checking the mortgagee's repayment history.
  • Consultation with the mortgagee regarding mortgage issues.
  • Evaluation of options
  • Proceed or not proceed with transfer of mortgage

The object of mortgage brokerage is essentially to provide all parties to the mortgage with a service:

  • The original lender is compensated acceptably for the transfer of the mortgage.
  • The new lender acquires a loan at an agreed value.
  • The mortgagee achieves a better deal in terms of mortgage rates.

The mortgage broker is paid a commission based on the value of the mortgage as a service fee.

Mortgage brokerages can be very large businesses. Transfer of mortgages is quite common, particularly in times of high interest rates, when mortgagees look for better fixed rates. The transfer itself costs comparatively little, and allows them to save significant amounts of money over the term of the new loan, compared to the previous arrangement.


This is a role which requires dealing with three stakeholders, and mortgage brokers require a range of important business skills:

  • Excellent communications skills
  • Negotiation skills
  • Thorough knowledge of the market
  • Analytical skills
  • Good client relationship skills

    Wages: Low retainer, commission based income.

    Hours: Can vary considerably depending on workload and client needs.

    The career environment

    In the US, the mortgage belt is one of the biggest financial demographics in the entire economy. The demand for mortgage brokers is market driven, and the housing market is a big capital market. Career progression for mortgage brokers usually starts at entry level as an agent for a mortgage broker. The basic career track leads to becoming a licensed mortgage broker.

    This a potentially very lucrative profession. It should be noted that this is a also a career in which career advancement requires a thorough understanding of the market. The best career positions are usually based in the bigger cities, where mortgage turnover and values are usually much higher. In these high value markets job mobility is often an essential tool in career moves. Many experienced mortgage brokers also choose to operate their own businesses in parts of these big local markets.