Starting up a mortgage company in Canada might seem to be an intimidating task, but following the steps listed below, you can easily establish your own mortgage company, without any legal issues.
Acquire a mortgage license
The first step in establishing your own mortgage company is to get your mortgage license. To get a mortgage license in Canada, one should be at least 18 years old, a resident of Canada, meet the Mortgage Agent education requirements and above all, he should be authorized by a Mortgage Brokerage to deal in mortgages.
Decide on a business structure
After getting your mortgage license, decide what type of business entity you want your company to be. Your mortgage company can take many forms, including a sole proprietorship, the one in which you will be the only owner, a partnership where you share the ownership with one or more partners, a corporation where a group of experts works together as a single legal entity or a Limited Liability Company (LLC). Create a corporation that best suits your needs.
Register your company
Once you have decided on your business structure, get your company registered with the governing provincial mortgage entity so that you can start business in the province.
Arrange an office space
Now, having had your mortgage company registered with the provincial government, consider buying, renting or leasing office space – whichever option suits you the most. It is recommended to find a place that is easily accessible for the customers, near some housing society. You should also purchase necessary supplies, such as a computer, telephone, fax machine, internet access and various other office items. If it is not a furnished office, you will be required to purchase office furniture as well.
Contact vendors and wholesalers
Now select a credit report vendor and wholesale lenders for your loan products. Since you will be relying heavily on vendors and lenders, it is recommended to choose the companies that you trust. You need to try and connect with as many lenders as possible, as this will help you offer more loan products to your clients. You will also need to select a title settlement service provider.
You will also need to hire additional staff for different tasks, such as a front desk officer to deal the in-house clients as well as to attend the phone calls and a Public Relations Officer (PRO), to help you connect with more and more vendors and lenders.
Promote your business
Once you have physically established your mortgage company, it’s time to market the business. Start by getting referrals from friends and family. Also advertise your business in the local financial magazines and newspapers. Social media marketing may also benefit you in the long-run.