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What does a
Loan Officer do?

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Other common names for this position: Mortgage Officer, Mortgage Loan Officer, Loan Underwriter, Mortgage Underwriter, Credit Officer, Financial Services Representative, Financial Services Officer, Loan Agent


Loan Officers examine if a potential borrower qualifies for a loan. They are normally hired within financial institutions, such as banks, credit unions, and trust companies.

Due to their intermediary labor in acquiring a loan, many Loan Officers work in exchange of origination points, which is the commission resulted from the process borrowers face when they are conferred a loan or a mortgage.

This position, also called Mortgage Officer, is easily confused with the one of Mortgage Broker. The latter is an independent party, who has the possibility of seeking loans from different institutions. In this regard, Loan Officers are appointed to a single financial organization, providing direct contact with the company, while Mortgage Officers stand as an intermediary between the borrower and the lender.

Primary Responsibilities

Here’s a non-exhaustive list of common tasks Loan Officers are required to complete.

  • Supporting new and current clients on loan and credit products:
  • Setting up meetings with clients to obtain information on the loan needs;
  • interviewing applicants for personal, mortgage, student, and business loans;
  • providing assistance in determining the most suitable loan option; and
  • providing guidance on the lending process.
  • Assisting the Manager, before the loan’s approval or rejection, by ensuring the client meets the requirements to obtain a loan:
  • Collecting information and processing each file to the closing stage;
  • contacting other financial institutions to verify the financial background of loan applicants;
  • examining applicants’ assets and finances;
  • analyzing the applicants’ capability to repay loans by conducting a thorough assessment on loan worthiness; and
  • submitting a detailed report regarding any abnormality on the processed file.
  • Ensuring the repayment of approved loans and credits:
  • Verifying loan and credit documentation;
  • ordering appraisals to be conducted on applicants’ properties and reviewing the title insurances;
  • calculating payment schedules; and
  • monitoring clients in order to guarantee their timely payment.
  • Maintaining detailed records on the transactions executed daily:
  • Compiling, copying, sorting, and filing records of the applications in progress and the ones already approved;
  • keeping a thorough daily record of every loan request; and
  • updating, filing, mailing, and maintaining inventory and database systems.
  • Processing, reviewing, and completing loan and credit requests:
  • Verifying the documentation contained in each application; and
  • submitting the application to the manager for the credit or loan’s approval or rejection.
  • Contributing to ongoing professional business development activities:
  • Cooperating with the company’s endeavor of achieving gross revenue and net operating income objectives;
  • working in conjunction with colleagues to gather marketing information, statistics, and trends; and
  • developing relationships within the community to attract new mortgage loan applications.
  • Drafting communications (e.g. letters and emails) to customers regarding payment reminders, warnings for action against payment default, or account status updates.
  • Ensuring compliance with all internal control and established policies related to loan products, in order to guarantee transparency in every application processed.

Daily Tasks

  • Contacting and setting up meetings with prospective and current loan clients.
  • Interviewing applicants for personal, mortgage, student, and business loans.
  • Researching and evaluating loan applicant’s financial status, references, credit, and ability to repay.
  • Communicating with other financial institutions to request details on clients’ creditworthiness.
  • Promoting the institution’s services and assisting clients in determining the most suitable loan to meet their financial objectives and needs.
  • Submitting the processed applications to the manager with the observations found, in order to approve or reject the loan.
  • Keeping the loan files supporting and clients’ information up-to-date by completing credit and loan documentation, preparing detailed reports, and maintaining detailed computerized records.
  • Ensuring necessary due diligence to support clients and maintaining high ethical standards.
  • Researching, gathering, and analyzing data to make effective and profitable decisions.
  • Staying up-to-date on credit and loans current regulations.

The average Loan Officer salary is $41,072 per year or $21 per hour. This is around 1.3 times more than the Median wage of the country. Entry level positions start at $29,000 while most experienced workers make up to $58,000. These results are based on 6 salaries extracted from job descriptions.

Gross Salary41,072.42 $
CPP- 1,859.80 $
EI- 772.16 $
Federal Tax- 3,895.12 $
Provincial Tax- 1,903.20 $
Total Tax- 8,430.29 $
Net Pay*32,642.13 $
In Ontario, Canada, if you make 41,072.42 $ a year, you will be taxed 8,430.29 $. That means that your take home pay will be 32,642.13 $ per year, or 2,720.18 $ per month. Your average tax rate is 20.53% and your marginal tax rate is 29.18%.
* Deductions are calculated based on the tables of Ontario, Canada income tax.
Job Offers
There are currently 542 available job offers for the Loan Officer position on Below is a list of available jobs, based on Canada's most populated metropolitan areas.
Education is key ! Over [number] graduates attended one or more of these schools prior to becoming a Loan Officer. These Schools usually offer specialized courses and programs that impart the necessary knowledge and skills required by most employers.
Top 5 Schools in Canada
to become Loan Officer
  • 1
    Montreal, Quebec
  • 2
    Montreal, Quebec
Required Skills and Qualifications
  • Interpersonal and communication skills:
  • Communicating clearly, both in writing and verbally, in order to effectively advise and interact with clients;
  • acting with transparency, keeping customers informed about the status of their request;
  • displaying strong customer service skills, as well as great listening skills in order to fully understand clients’ requirements to offer the most suitable loan option;
  • establishing and maintaining supportive work relationships; and
  • being able to deal with team members and customers in potentially adversarial situations using a calm, tactful, discreet, and effective approach.
  • Organizational and time management skills:
  • Prioritizing and planning work activities in order to manage time efficiently while handling a high volume of work; and
  • multitasking; being able to work in a dynamic, fast-paced environment.
  • Analytical, problem-solving, and decision-making skills:
  • Effectively analyzing numerical data, drawing logical inferences, and providing reasonable recommendations;
  • identifying issues and resolving problems in a timely manner; and
  • being able to exercise strategical thinking and mature judgment.
  • Outstanding attention to detail and high levels of thoroughness:
  • Ensuring compliance with internal standards;
  • conducting thorough research and financial background checks; and
  • staying focused during highly repetitive tasks.
  • Administrative skills:
  • Being proficient in Microsoft Office Word, spreadsheets, including the ability to develop and use formulas, and to manage Banking and Accounting platforms; and
  • being able to creating graphics, flow charts, and projections in order to generate statistics.
  • Goal-oriented, reliable, flexible, and confident:
  • Being self-motivated, highly driven, and having an entrepreneurial personality; and
  • being able to work independently.
  • High levels of honesty, discretion, and integrity:
  • Being trustworthy enough to handle sensitive/confidential information.

Loan Officers are responsible for advising clients on the most suitable loan or credit option, attending their financial goals and needs; hence, they are required to have a vast knowledge on financial and bank loan products. They are required to have completed a bachelor’s degree in Accounting, Finance, Business Administration, or to have obtained any other equivalent certification.

Since they stand as the point of contact between the financial institution and the loan or credit applicant, customer service skills are a definite asset. In order to successfully perform their functions, Loan Officers are also required to be familiar with policies, procedures, security requirements, and institutional and governmental regulations.

Most Loan Officers require a minimum of 3 years of experience working in a client-facing, accounting, or relationship-focused role. Having a basic knowledge of the sector in which the applicant wants to work is always a must.