Becoming a real estate agent is an exciting venture, and there are many reasons why getting into the real estate industry is beneficial. Whether you are looking for a more flexible work schedule or you want to have a job where you can help people through the most important decisions of their life, there are so many good reasons to jump into Ontario real estate.
However, it can be difficult to know where to start and how much time you’ll have to set aside when becoming a real estate agent in Ontario. We’re here to help clear all of that up! Follow our step-by-step process of how to become a real estate agent in Ontario.
Benefits of Becoming an Ontario Real Estate Agent
The first benefit is obvious — the income. The average salary for a real estate agent in Ontario is $133,880 per year, so it’s entirely possible to make a living solely from your real estate business. These numbers will fluctuate, though, based on commission percentage, the number of homes sold, the split with your broker, if you have any caps, and the value of the homes.
For further insight, the average price for a home in Ontario is around $831,000, which means when real estate agents make a sale, they have a solid commission — often 5% or $41,550. It’s worth noting, though, that the commission percentage is typically split with the other agent and/or brokerage (if there is one), so keep that in mind when calculating your takeaway profit from a transaction.
Aside from gaining extra or sustainable income, becoming a real estate agent has many other benefits, including:
- Flexibility in your work
- Constantly varying environments and tasks
- Helping people
- YOU are the boss
- Gaining knowledge and insight about people, your community, and your area
Do I Prequalify?
Before you can start the process of becoming a real estate agent in Ontario, you need to make sure that you pre-qualify. The prerequisites for obtaining a licence to practice real estate in the province of Ontario include the following:
- You must be a Canadian resident
- You must be at least 18 years old
- Have a secondary school diploma or equivalent
Once all those boxes are checked, you are ready to start your journey of becoming an Ontario real estate agent!
Complete 208 Hours of Pre-Registration Education
Once you have met the general prerequisites to becoming an Ontario real estate agent, it’s time to begin your pre-registration courses. Known as the “Pre-Registration Learning Path”, this program is offered by Humber College and can be completed in-person or online. The courses you’ll take will guide you through the process of completing a real estate transaction, including everything from the basics of real estate to specific, bizarre scenarios that you may or may not encounter.
On average, it takes 9 months to a year for students to complete all of the courses, exams, and simulations. The pre-registration program is flexible and allows students to complete portions of the course at their own pace, meaning that you have control over how quickly you finish the program.
The courses you will take in your pre-registration education will include:
- Real Estate Essentials
- Real Estate Transactions
- Additional Real Estate Transactions
- Commercial Real Estate Transactions
- Getting Started
At the end of each course, you’ll need to pass a final exam to move forward in the program. In addition, you’ll need to complete two in-person simulation courses in between your basic courses. These simulations allow you to apply the knowledge you’ve learned to real-life scenarios. Once you have completed each step in the pre-registration education program, you are ready to choose a brokerage and are on your way to becoming a real estate agent in Ontario!
Choose A Sponsoring Real Estate Brokerage
Real estate brokerages come in all sizes throughout Ontario, from giant, national corporations, like eXprealty.ca, to independently-owned and run brokerages. Regardless of which side of the spectrum you prefer to be on, you’ll need to find an Ontario brokerage to work under in order to register with the Real Estate Council of Ontario (RECO). While brokerages all have different ways of conducting their own business, most of them are similar in the way they work with and hire real estate agents.
You’ll likely pay a fee every year to your brokerage to keep your membership active, so here are a few things to consider to ensure that you are choosing your brokerage wisely:
- What is their local and national reputation?
- What systems do they use?
- What types of agents are they looking for?
- Do they provide education and training for agents?
- Do they provide agents with marketing materials and potential leads?
- What benefits do they have?
- What is their commission structure?
- Is there an opportunity for growth?
Register with RECO
Once you’re employed by an Ontario brokerage, it’s time to register with RECO. The Real Estate Commission of Ontario is the final piece of the process to become a real estate agent in Ontario, providing the final authority in determining whether or not you’ll be able to be a practicing real estate agent.
You must register with RECO within 12 months of completing your pre-registration education program, otherwise, you’ll need to start the entire process over again. When applying for RECO registration, you’ll pay a relevant application fee, which differs from salespeople to brokerages to office staff. Once your application is in and accepted, you are officially a new real estate agent!
The “Articling” Period
The “articling” period is a two-year period after you register with RECO where you must complete a couple more mandatory courses to become an officially licensed sales representative. To stay registered with RECO over the long term, you are required to complete a certain number of post-registration courses every two years. This means that even if you have been a practicing real estate agent in Ontario for 5 years, you’ll still need to take specific real estate courses in order to renew your registration with RECO.
Similar to pre-registration education, you can complete the Registration Education Salesperson Program through Humber College and can do it any time within the two-year period. Although you must complete the courses to renew your RECO registration, you will still be able to perform your full scope of practice when you are within the two-year registration period.
Things To Remember When Becoming a Real Estate Agent in Ontario
There’s a difference between a practicing real estate agent and a successful real estate agent, and that depends entirely on what you put into it. Here are some reminders that will help you make the most of your time as a real estate agent in Ontario:
Real Estate is a Business, and YOU Are the Brand
You may be tempted to jump into the real estate industry as a side hobby to make some extra cash, but income comes from transactions, and transactions come from consistent, dedicated time and effort. In order to have a successful real estate business, you’ll want to commit a good deal of time to get leads, networking with other Ontario real estate agents, and studying the market.
In addition to spending time on your work in general, you’ll want to be intentional about the way you present yourself on social media and to your leads and clients. With a real estate business, you are your brand. The more personable you are, the more connected to you people will feel when choosing you to be their real estate agent. Don’t be afraid to share your interests and hobbies with your clients and connect with them on a deeper level than just their real estate needs. This will ensure a loyal client base and a higher chance of referrals.
Cultivate Client Relationships Overtime
Building up your client base is crucial to having a successful real estate business, but keeping that client base will help you to remain successful over the long term. When you’ve been working with someone and they finally close on their new home, don’t just say sayonara and call it a day. Instead, keep in touch with them. Send them a handwritten note during the holidays or celebrate any big moments they post on social media.
There are two major reasons why it’s important to stay in touch with your former clients: first, you will stay in the front of their minds when their friends or family need a real estate agent, and second, they will come back to you when it’s time for them to sell. Two or three great interactions with your clients can mean the difference between five referrals and none.
Work With Both Buyers and Sellers
The real estate market is ever-changing and you never know which side of it you’ll find yourself on throughout your career. While it’s tempting to only work with just buyers or just sellers and build your clientele up that way, that can limit your future opportunities. Think of it this way; every home buyer will eventually sell, and vice versa. If you broaden your scope of business to both buyers and sellers, and your previous clients loved working with you, they’ll eventually come back. You don’t want to have to turn down a loyal client simply because you don’t work with one or the other.
In addition, the housing market has seen record-breaking highs and lows throughout history. If the Canadian real estate market hits a 3-year seller’s market, you don’t want to dig yourself into a hole by only working with buyers. Overall, it’s best to open yourself to both buyers and sellers to cultivate client relationships and set up your business for the long run.
How to Become a Real Estate Agent in Ontario
We hope this article has prepared you to become a real estate agent in Ontario and has given you insight on how to successfully run your real estate business. For some supplemental information on things like purchase agreement contingencies or the checklist for selling a home in Canada, check out our blog. With the right steps, education, and determination, you’ll be on your way to a successful real estate career in no time!
