Mortgage Underwriter Job Overview
Mortgage underwriters hold an important job in the loan approval process. They evaluate each home loan application to verify that all the documents are in order before the loan can be approved. This includes:
- Checking the buyer's credit history and income
- Organizing the tax, title, closing, and home insurance documents
- Considering the home appraisal value
- Making sure that the buyer's down payment is his own money and not a loan
When this work is completed, the mortgage underwriter makes the final decision as to whether or not to approve the loan.
Today there are some automatic underwriting programs that can take the place of a mortgage underwriter in routine cases. However, mortgage underwriter jobs cannot be completely replaced with automation yet, as many cases fall into a grey area. In these instances, it takes a sharp human eye to assess the situation and make a wise decision.
Mortgage Underwriter Job Education Requirements
Mortgage underwriters hold an important financial position. They require a thorough understanding of home loans, applicable laws, and finances in general. This job also requires strong math and analytical skills. Most mortgage underwriter jobs require a bachelor's degree in a related area. A degree in finance or business is ideal. Previous employment in related jobs, such as loan officer or banker, helps you gain an edge over other applicants.
Mortgage Underwriter Job Market
Job opportunities for mortgage underwriters tend to follow trends in the housing market. The economy is finally improving after several difficult years, and the housing market is growing with it. Condominiums and other multi-family properties are experiencing particularly fast growth. Canada's economy is showing positive momentum, which is good news for mortgage underwriters. As long as Canadians are buying homes, there will be plenty of work in this profession.
Mortgage Underwriter Job Salary Information
The median salary for underwriters in Canada is C$47,993 with annual earnings generally ranging from C$36,058 to C$64,308. Underwriters may also earn a bonus that typically falls between C$393.05 and C$5,965. Profit sharing adds another C$197.27 to C$5,128 to annual earnings and commissions can bring in C$491.32 to C$5,000. Altogether, this puts salaries between C$35,805 and C$66,879.
Financial analysis and risk management are the skills most closely associated with increased pay for this field. Mortgage underwriters typically move on after fewer than 20 years on the job. This position can lead to a promotion to senior underwriter or underwriting supervisor.