AMBA Matters Summer 2015

Matters Tips for the Renovation Generation ALSO INSIDE

MARKETING MADE EASY: THREE STEPS TO BUILDING A HIGHLY PROFITABLE REPEAT AND REFERRAL BUSINESS ANNUAL CONFERENCE, GOLF TOURNAMENT AND AWARD WINNERS HIGHLIGHTS

Summer 2015

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President

Matters

Summer 2015 A SPECIAL THANKS TO OUR ADVERTISERS...

Premiere Mortgage ��������� 2 V.W.R. Capital Corp. ��������� 4 Capital Direct �������������������� 4 Home Trust ������������������������ 6 Caplink ��������������������������������� 8 Equitable Bank ������������������ 9 SidePix Ltd. �������������������������11 Alta West Capital ������������14 First National ��������������������16 Calvert Home ��������������������19 D+H �������������������������������������24 Rompsen ���������������������������28 LMS PROLINK ������������������33 Cedar Peaks ��������������������� 37 Hendrix Law ���������������������38 Armada ������������������������������38 RMG ������������������������������������39 Street Capital ����������������� 40

8 19 10 12 15 16 17 20 23 26 27 29 30 32 34 35

is a quarterly magazine which provides fundamental information to members of the provincial association, offering an opportunity for the industry members to be educated, updated and entertained.

Toll Free: 1.888.452.2652 Phone: 403.685.9652 Fax: 403.685.9682 Email: info@amba.ca Web: www.amba.ca Suite 150, 1209 59 Ave SE Calgary, AB T2H 2P6

RECA UPDATE 10 TIPS TO GET MORE LEADS FROM YOUR MORTGAGE WEBSITE

ANNUAL GOLF TOURNAMENT HIGHLIGHTS

DEBT STRESS AND SOLUTIONS

WIMI AMAZING RACE HIGHLIGHTS

FEATURE STORY: TIPS FOR THE RENOVATION GENERATION

CONFERENCE AND 40 YEAR CELEBRATION

DOCUMENTATION DEFENCE IN A DOWN MARKET

OFF TO PARADISE: CONTEST WINNER HAWAII TRIP

A TALE OF TWO CITIES

Matters

GET THE VIP TREATMENT AT AMBA.CA

PRIVATE MORTGAGE LENDERS FORUM (PMLF) UPDATE 2015 AMBA AWARD WINNERS

PAST AMBA AWARD WINNERS

BOARD OF DIRECTORS President Adil Mawji Invis

Past President Gord Appel TMG

Vice President Dave Trithart DLC 1st Financial Link

Treasurer Phil McDowell Mortgages Are Marvellous

Education Director Ryan Spence D+H

Government Relations Layne Walters TMG

Inter Provincial Ron McClenaghan Invis

Events Erica Fikkert Equitable Bank

Risk Management Kevin Weeks Weeks Law

Communications Dale Koeller Calvert Home Mortgage Investment Corp.

Membership Tracey Robinson Mortgage Protection Plan

Membership Jan Gosse Jencor

Magazine Publisher: Amanda Roy-Macfarlane

AMBA 2015

SPONSOR THANK YOU

Magazine Editor: Holly Mazur

MARKETING MADE EASY: THREE TIPS FOR REPEAT AND REFERRAL BUSINESS

Return undeliverable Canadian addresses to:

OTHER FEATURES...

President's Report 5 Manager's Report 7 Industry News 24 Member Profile: Mark Pullin 36 AMBA Calendar 38

Alberta Mortgage Brokers Association Suite 150, 1209 59 Ave SE Calgary, AB T2H 2P6 Art & Design: Erin Lehtisaari Photo credit for some photos within this issue of AMBA Matters ©shutterstock.com.

Summer 2015

3

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4

Summer 2015

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President’s Report

Summer 2015 Dear Members and Partners,

Adil Mawji AMBA President

I arrived in Drumheller on June 10 thinking most people would be in bed getting ready for an early tee time. I was pleasantly surprised to see about 60 industry members socializing and networking in anticipation of this year’s conference and golf tournament.

Sold out once again, the conference festivities began with our annual golf tournament. Golfers and sponsors enjoyed a day at Dinosaur Trail Golf and Country Club, losing numerous golf balls, enjoying the stunning Red Deer Valley view and having drinks in the company of fellow industry members and partners.

I am proud to say we raised $2,350 for our 2015 charity, Inn From The Cold. Dedicated to providing emergency shelter, support and programs, Inn From The Cold’s goal is to build healthy, stable families and end homelessness.

A special thank you to Tim Hurlbut – Alta West who suggested we auction off the unclaimed/donated raffle prizes, and Optimum Mortgage for donating an extra $1,000 to Inn From The Cold in honour of the event.

After the golf tournament, I rushed to get ready for the kickoff party – An Evening At The Rosebud. Not sure what to expect, I loaded the last bus to Rosebud with 20 other conference attendees and enjoyed the comedic entertainment of Sean Thomson. It was great to see the industry support the event and enjoy the vodka luge, a spectacular wine and cheese reception, a buffet dinner, and a theatre presentation of The Wizard of Oz or the stand-up comedian.

I am extremely proud to say that this year’s conference was our most successful in years. An astonishing 320 registrants attended, 150 of which were practicing mortgage brokers.

Another 10 were students currently enrolled in our course.

We also had a record 48 sponsors and an astounding 49 trade show booths!

The day was packed with educational speakers, networking opportunities, an awards gala, a flash mob, a trade show and memories that will last a lifetime.

As an association, we chose Drumheller for a reason. It took us to a place where we would be reminded that no matter the size of the town or organization, small things can make history.

Like Drumheller, AMBA has deep roots, and what better way to celebrate our association’s amazing milestone as the oldest provincial mortgage broker association in Canada, than to be in a place that is world renowned.

All I can ask as president of our association is that our members and partners value and appreciate what we as a board and our staff do for them. I am proud to say that we have that appreciation from our members.

With the first half of the year under our belts, AMBA is looking forward to the fall for Broker of Record Meetings, an Education Session with AMBA/CAAMP and AMBA’s Annual General Meeting in December.

Forty years of success takes planning — starting in August we will be undergoing a two-day strategic planning session to better understand our members’ needs, the industry’s needs and how we can better serve you over the next three to five years.

We have kicked off the first part of the year with a bang, and plan on continuing our 40th Anniversary Celebration with you in the months to come.

Until next time … Adil

Adventures Badlands drumheller

in the

CHECK OUT ALL THE CONFERENCE HIGHLIGHTS! STARTING ON PAGE 20

Summer 2015

5

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To learn more about our Alternative Mortgage Solutions, talk to your BDM. Registered trademark of Home Trust Company. * Visa Int./Home Trust Company, licensed user of mark. * Each mortgage application is subject to approval based on its own merits in accordance with Home Trust’s policies and guidelines.

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MORTGAGES | CREDIT CARDS | RETAIL CREDIT | DEPOSITS

General Manager’s Report

Summer 2015

Let AMBA Do The Work For You ...

Get the VIP Advantage Amanda Roy AMBA General Manager

We spend a great deal of time signing up for an endless number of loyalty reward programs; some that provide little to no return. So why not take five minutes and join something that will pay off for you by taking advantage of our Verified Information Program (VIP)?

AMBA's VIP provides a personalized web page — customized by you, the member — providing consumers with a snapshot of who you are as a professional and making a personal connection that compels a potential client to pick up the phone or email you.

Whether we want to accept it or not, we live in a Google driven society. Nobody commits to anything without researching for hours online. This can be both beneficial and detrimental to our industry. With so much information available on the Internet, consumers can end up overwhelmed or confused and may not even discover the benefit of using a mortgage broker.

I'm sure everyone knows what Google is, but you may not know much about Search Engine Optimization (SEO). It's the process of affecting the visibility of a website or a web page in a search engine's (like Google) unpaid results. The earlier or higher ranked on the search results page, and more frequently a site appears in the search results list, the more visitors a site will receive from the search engine's users.

As an authoritative website on mortgages in Alberta, amba.ca ranks high in SEOs. For example, if a consumer types in "mortgages" and "Alberta," our website, the "Find A Broker" and "Find An Industry Partner" link will appear as the first few hits.

All those loyalty and reward programs I mentioned earlier, we buy into them because of a marketing strategy that makes us believe in them even when we don't know every detail of what the return is. A quick check of your wallet will probably produce a handful or more of those cards.

AMBA's VIP program is essentially free marketing for our members. Using the association's 40-year history to your advantage, your personal brand can piggyback off the AMBA name and reputation, which is constantly growing.

We get more than 10,000 website hits per month, and your profile can be featured as part of those clicks. Not only can consumers find a broker, they can find other industry partners to work with, including insurers and lenders.

We know this strategy is working. It has already produced leads for those taking advantage of it — and it costs nothing more than keeping your membership up to date. The VIP treatment will only get better as it gains momentum. More improvements will be made as the numbers grow, but we need your support as a partner to make it happen.

THE VIP TREATMENT BENEFITS INCLUDE: A personal, customizable, online profile with direct links to your company website, Twitter, LinkedIn and Facebook pages; Advertising throughout our website at no additional cost to your membership fee; The backing of an authoritative association website; Assurances of up-to-date and accurate information; Search engine optimization when consumers search Alberta mortgage professionals and our industry partners; Credibility through your partnership with AMBA and the industry; and Association VIP status — VIP badge We're continuing to grow our VIP program and exciting new advantages will be coming in 2016. You won't want to miss out, so be sure to renew your membership promptly in January.

Full details on how to become VIP are available on Page 8. It only takes five minutes to complete. When is the last time you generated a lead in five minutes of work?

Summer 2015

7

Get The VIP Treatment!

AMBA VIP (Verified Information Program) is an online program to help promote your professional profile and keep it up to date. Other websites may charge up to $1,500 per month for you to promote your business, but AMBA VIP will give clients in your area access to the latest information about you and your business, for free. This program is offered with your $150 membership and allows you to be promoted on our website free of charge.

One AMBA VIP lead could pay for your AMBA membership for years to come!

Why VIP? A personalized online profile with direct links to your company website, Twitter, LinkedIn and Facebook pages; Advertising throughout the website at no additional cost to your membership fees; Ensures you have up-to-date and accurate information; Provides search engine optimization when clients and mortgage professionals are searching for you; Adds credibility to your partnership with AMBA and the industry; and Association VIP status – VIP badge.

How to Become VIP (it only takes five minutes): 1.

Log in to the AMBA membership zone,

2. Go to your profile,

Western Canada’s Private Lending Specialists Since 1997

3. Verify your contact information, and 4. Upload a headshot, company logo, and a short biography.

AMBA VIP is now available for Industry Partners!

-

First and seconds to 85% LTV Flexible terms and renewal options No beacon requirements Fast approval times

Check it out on our website today and help your business bring value to your clients and our members.

Instant VIP! Add Your Title and Headshot

A Short Biography Your Company Logo and Contact Info.

To become a VIP the following fields are mandatory: Title, headshot, biography, company logo and contact information.

8

Summer 2015

Residential Helen Neufeld 780-702-9215 helen@caplink.ca Commercial Gay Andrews 780-702-9236 gay@caplink.ca www.caplink.ca

RECA Update

Mortgage Broker Update 2015: Course Available Now Mortgage brokerage professionals must complete the Mortgage Broker Update 2015 course by September 30, 2015.

The course includes extensive information on mortgage fraud and service agreements, it is mobile-friendly, enabling you to complete it on most devices. The course includes a mix of text, narration, graphics and activities. It has activities from real life schemes that you get to apply the mortgage fraud red flags, and it features job aids to help you transfer the course information into your practice.

More than 300 mortgage brokerage professionals are already enrolled in the course. Of those who have completed it: 98 percent believe the course has increased their awareness of industry issues and will help them in their mortgage practice.

They gave the course an overall approval rating of 96.5 percent.

CAAMP Members: CAAMP has approved Mortgage Broker Update 2015 for 4 CE Units in the Compulsory category for the year 2015.

To access Mortgage Broker Update 2015, go to: http://www.myreca.ca; Log in to your account; Click on “Education Courses” under the Education tab at the top of the page; Click on the “+” beside “Re-Licensing Education Program (REP)”; and Click on the blue “Enrol” button beside Mortgage Broker Update 2015.

Verbatim feedback on the course includes: “The information in this course is excellent and useful. Great takeaways for the future.”

“Valued information for industry members. A lot of time and effort has gone into this refresher course. Thank you RECA!”

For assistance with enrolling and accessing the Mortgage Broker Update 2015 course, review the myRECA Tutorial: Enrol in a Re-licensing Course online.

If you have not used myRECA before and need more help, review the full set of myRECA tutorials online.

Committed to Excellent Service We specialize in working with Business-For-Self, new immigrants and credit challenged clients.

Call us today!

Western Canada T 1-866-940-1201 F 1-888-440-1201 equitablebank.ca

EQB_AMBA_HalfPageAd_Spring2015.indd 1

2015-03-09 11:29 AM

Summer 2015

9

10 TIPS to get

MORE LEADS from your

MORTGAGE WEBSITE

Daryl Maksymec, Creative/Technical Director, SidePix

TIP 01

DRESS TO IMPRESS MAKE YOUR WEBSITE LOOK PROFESSIONAL.

TIP 04 WHAT’S IN A NAME?

A DOMAIN NAME, THAT IS.

Quality and credibility play an important role in website design, especially within the mortgage industry. If you're investing hundreds of dollars into getting thousands of visitors and it only turns into one or two leads, your website may be to blame. Generating targeted audiences and quality hits is always great, but it won’t help much if your website does not portray professionalism, confidence and trust. Bottom line, it must look and feel professional.

Search engines look at the keywords within your domain name when evaluating your placement in their results. Generally speaking, a domain name that contains the search terms you want to focus on will do better than a made-up domain name. The best domain name should contain what you think people will enter as keywords into search engines. Don’t invest too much money in a name though, it only helps your website for a fraction of what it did 10 years ago.

Quality equals credibility, which equals clients.

TIP 05 FILENAMES MATTER TOO!

TIP 02 SEARCH ENGINE OPTIMIZATION (SEO) ISN’T A DIRTY WORD.

Search engines like Google have crawlers. These crawlers will eventually find your site and, as their name states, try to navigate through each and every page gathering critical keywords and content. After each successful page crawl, the information gathered is then indexed and given a priority for use in search engine placement.

Google looks for dozens of signals within a website. Without carefully optimizing for these, your site will not get an optimal ranking in search engines. Before you begin any marketing campaign, SEO needs to be addressed. This is the process of making a website and its content highly relevant for both search engines and the audience.

This could mean the difference of a 1,000 visitors a month or a 1,000 visitors a day! Successful search optimization helps a site gain top positioning for relevant words and phrases within search engines.

Just like a domain name, every file name on your website is important.

If you do not wish to use file names, you can use subfolders. Again, use the same rules as you would with a domain name. Choose short and concise names that have keywords relating to the page you are creating.

TIP 06 SEO IS GOOD,

BUT DON’T GET CARRIED AWAY.

Use our mortgage application to attain the best mortgage rate available on your next mortgage loan!

Was that last sentence good for you? SEO companies have been known to go too far with keywords, and this directly impacts the quality of your page. Every page is weighted by Google, and if Google thinks you are using too many keywords, your page will drop to the bottom of the search results.

TIP 07 SET IT AND FORGET IT? GOOGLE WILL TOO.

TIP 03

DON’T BE A COPYCAT.

It’s common thinking that because there are millions of websites, the chances of being caught using someone else's content are slim to none. This is not true, and using copied content could get your page removed from Google completely. It's always best to hire a professional writer than risk the alternative.

10 Summer 2015

Add new real content to your site every week. Google places a higher value on sites that have fresh content. But don’t cheat! If someone says they can ‘word spin’ someone else's content, they do not have your best interest in mind. Word spinning is a lazy way of faking original content by replacing some words with others that have similar meanings. This not only makes for a terrible read, search engine algorithms are starting to figure it out.

TIP 08

SOMETIMES IT’S THE LITTLE THINGS.

If you’re into muscle cars, you know that combining all the little things like spark plugs, high octane gasoline and reducing the weight of the automobile will increase the car's performance. The same holds true for SEO. Using images, HTML tags, links, pdf files, Flash, tables, file extensions, and code all in the right proportions, can really make a difference with the performance of your website.

TIP 09 USER EXPERIENCE IS KING. Whether you are developing your own website, or having someone do it for you, you must make sure that the site is technically sound and ensure a memorable user experience. To ensure all-around quality, here is an outline of what should be considered before building a website: Original and engaging content that is free of grammatical errors; Unique images, icons professionally done;

and

photographs

that

are

Optimized code and images for fast downloads on slow internet connections; Backwards compatibility for older web browsers and operating systems; HTML tested and validated to be free of errors and broken links; and Responsive web design that works on all common web browsers and form factors (desktop, mobile, and tablet), including: Chrome, Firefox, Safari, Internet Explorer, Opera, Windows mobile, iOS, Android, Linux, and Blackberry.

YOUR DREAM TEAM

SEO Expert

Web Developer

UX Designer

Web Designer

TIP 10 WHO DO YOU HIRE?

YOU MAY BE SURPRISED.

To create a website that works well in search engines, you would hire an SEO expert. To build a website that has functionality, you hire a web developer. To design a website that looks great, you need to hire a web designer. And finally, to have a user-friendly site, you will need to hire a UX designer.

WHO CAN HELP? SidePix is an Alberta-based business integration and technology studio. We offer our clients services that range from marketing, branding and design to software and web service solutions for any area of business.

Our company has had great success with our websites and we hope to pass on as much as we can in terms of knowledge, techniques and resources in relation to building and marketing a mortgage website.

New agents needed.

Guaranteed leads.

One-on-one training. tamar@superbrokers.ca

Licensed associates with TMG

Summer 2015

11

Thanks to everyone who golfed, sponsored and donated for making our Annual Golf Tournament a success and raising $2,350 for our 2015 charity, Inn From The Cold. A special thank you to Optimum Mortgage for donating an extra $1,000 to Inn From The Cold in honour of the event.

We look forward to presenting Inn From The Cold with a big cheque from all our fundraising initiatives this year at our Annual General Meeting in December.

Congratulations To Our Winners: Ed Arnone – Equitable Bank, Richard De Guzman – Mortgage Architects Inc., Jimmy Olandesca – Mortgage Architects Inc., and Braden Gabert – Mortgage Architects Inc.

12

Summer 2015

Summer 2015

13

THANK YOU TO ALL OUR 2015 SPONSORS tournament presented by

GOLD THANK YOU TO ALL OUR SPONSORS!

®

SILVER

BRONZE

WHY

WHY CHOOSE US?

www.awcapital.ca 1.888.554.9075

Top 5 reasons to work with Alta West Capital 1. Get your deal done.

We understand private lending and private clients.

2. There is no “box”.

We are flexible and able to structure the best deal.

3. Get paid sooner.

Decisions are made quickly and efficiently.

4. Deal Direct.

We are “the lender” giving us control and flexibility.

5. Proven and trusted. With decades of experience we have earned our stripes.

ALTA WEST MORTGAGE CAPITAL CORPORATION 600, 11012 MACLEOD TRAIL SE, CALGARY, AB T2J 6A5

AWC AMBA ad.indd 1

14 Summer 2015

2015-02-12 11:48 AM

Debt, Stress and Solutions Tim Hurlbut, Alta West Capital

When you have multiple debts, it’s not only a challenging task to keep them under control, it can create a lot of stress on you and your family. Managing different interest rates, as well as various minimum repayment amounts and repayment due dates, can be overwhelming and expensive.

If you’re holding debts with a number of different creditors, this only complicates matters further.

When your clients find themselves in this situation, you have an opportunity to provide something different. In this situation, orderly payment of debts, consumer proposal and bankruptcy are the phrases most often heard. Many clients don’t realize there is another option.

Debt consolidation by way of a second mortgage may be the right option for your client. This enables your client to re-structure their debt themselves, avoiding the hit to their credit report associated with the options mentioned above.

The restructure from short-term high-rate consumer debt, to longer term amortized mortgage debt, may improve monthly cash flow by hundreds of dollars. A second or even third mortgage can help your client gain control of their finances and get them back on track without hurting their credit score. In fact, careful management of the debt repayment process may quickly improve your clients credit score long before the new loan is paid off.

As a mortgage professional, one of the challenges with presenting the option of a second mortgage is the topic of interest rates. When most mortgage advertising focuses on prime rates, starting a conversation about interest rates in the double digits is a difficult thing to do. When borrowing from a private lender, many people expect the rates will be high. They are often pleasantly surprised to find rates are often lower than credit cards and vehicle loans. When you combine these lower rates with a longer amortization, the result can be amazing. Typically we find clients are happiest when the restructure simplifies things and removes stress.

The rate often is a secondary concern.

Here are the top four advantages of debt consolidation with a second mortgage.

#

1

Improves Their Credit Score Instead Of Damaging It Instead of a consumer proposal or bankruptcy, which punishes the client for years by destroying their credit score. A second mortgage can clear up their debts and reduce the ratios on their credit bureau. This will in turn improve their credit rating faster than you think.

2

Lower Monthly Payments Payment on credit cards and vehicle loans are amortized over such short periods of time that the monthly payments may be too much for your client.

By structuring this debt as a mortgage and stretching the payments over as much as say 25 to 40 years, you can keep the monthly payments low and manageable.

3

Keep Credit Facilities Open Unlike a bankruptcy or a consumer proposal, your client can still keep some credit facilities open should they be required as a safety net. Careful management of these facilities will help re-build damaged credit; however, care needs to be taken to ensure the use of these facilities is well managed.

#

#

3

#

Short Terms Although the amortization may be longer, often second mortgages are offered with one year terms.

This allows you, the mortgage professional, to work with your client to refinance (perhaps by rolling the second mortgage in with the first mortgage) as soon as conditions allow. Combining all the debt client’s have into one simple mortgage.

As with all mortgages, there are conditions and an approval process. Different lenders will have different qualifications and second mortgages won’t be right for everyone. However, should you have clients in these situations, it pays to at least ask the question. The solution will be less intrusive for your client, there will be no trustee to report to, no monthly reports for them to send in, or no embarrassing calls to their office. For you, nothing generates loyalty and repeat business like providing an option that removes stress and makes life easier.

Summer 2015

15

WIMI Amazing Race Highlights On June 10, 2015, Women In The Mortgage Industry (WIMI) held a pre-conference event called the WIMI Amazing Race. Six teams raced around the Red Deer Valley to complete six challenges Amazing Race style.

Bonny Clarke

Amanda Roy

During this event, WIMI recognized its inaugural WIMI award recipient, Bonny Clarke from ICICI Bank, for her dedication to the industry.

WIMI also recognized AMBA General Manager Amanda Roy for her work with WIMI and the mortgage brokerage industry through AMBA.

Established in October 2014, Women In The Mortgage Industry is an online forum that has more than 2,150 mortgage brokers, agents, associates, BDMs and lender members from coast to coast. WIMI conversations run 24/7 and showcase mentorship, leadership, mortgage industry education and discussions through Facebook, webinars and Twitter. To date, WIMI has had more than 30,000 individual posts and close to 60,000 comments and likes AMBA_Ad_July_2015_Final.pdf to these posts.

1 2015-06-04 5:09 PM

C

M

Congratulations to Our Winners!

Congratulations to WIMI’s Amazing Race champions from Dominion Lending Centres 1st Financial Link: Adrienne Miller, Debbie Jacobsen, Karen Lagore, Stephanie Blake and Michele McGarvey.

To join WIMI, go to their Facebook Page at Women in the Mortgage Industry (#wimi)

Going beyond service with partnership

Y

CM

MY

CY

CMY

“A broker’s success is our success.”

When you work with First National’s Alberta team, every single member prioritizes partnership. They dedicate themselves every day to one goal.

Your client’s happiness – helping that client get that home.

K

And achieving that goal can only happen through true partnership. Working together. Finding solutions. Celebrating mutual success together.

Strong partnerships. That’s what going beyond service means to the Alberta team.

firstnational.ca

16 Summer 2015

Ontario Mortgage Brokerage License No. 10514

Tara Beattie Account Manager, Calgary and Medicine Hat

Shawn Jewers Account Manager, Edmonton, Grande Prairie, Fort McMurray

Lisa Bartlett Regional Sales Manager Alberta & Prairies

Tips for the Renovation Generation Jody Robbins, Sponsored by Calvert Home Mortgage Investment Corp.

Being an instant gratification society means we’re not often willing to wait, or put in the work required to reap our rewards. Thanks to Home & Garden Television (HGTV), however, we are much more savvy about Do It Yourself (DIY) design and the value of home improvement – more than any other generation in history. While many of us covet the shiny transformed homes seen on TV, most of us don’t fully understand what it takes to successfully renovate our homes. Can you completely transform a house in a few short weeks?

It’s possible, but there’s much more to home improvement than what you see on TV. To ensure your reno runs smoothly, make sure you understand what it takes before breaking out the wrecking ball.

Time For A Change?

Before embarking on any substantial housing project, home owners are wise to consider the current economy. With housing sales expected to cool in Alberta and the volatile nature of the price of oil, many factors ought to be weighed before jumping into a full-scale renovation.

“You’ve always got to consider if makes sense to sink $100,000 into a property. Sometimes people buy at a point in the market when it doesn’t make sense to put additional money into their home just yet,” says Shane Rennie, principle at Rectangle, design build firm.

In the event market conditions give the green light, home owners then have to decide if it’s affordable given current income streams.

“In four out of five cases, a customer’s idea of the budget for the

reno isn’t realistic at all,” says John McCoy, general manager of Ultimate Renovations.

Discuss your project idea with your mortgage broker or a financial planner to see if upgrading makes sense for your situation. If you’re just saving now, setting aside cash into a Tax Free Savings Account could be your best option, as you won’t be charged capital gains when you withdraw those funds.

Home owners who haven’t saved a substantial sum to cover their reno costs could consider taking out a line of credit secured against their home. While a line of credit doesn’t require you to repay the principal and interest each month, both eventually have to be repaid.

The Big Why Home owners ought to examine why they want to embark on any ambitious housing project. For some, it’s to extend their time in the home. For others, renovations are taken on strictly for resale. Yet not all renovations add to the resale value of a home. While many home owners expect to recoup their renovation costs, that’s not always the case. If risky design choices are made, you may not see any return on your investment. Conservatively, most folks can

estimate recovering approximately two-thirds of their kitchen and bathroom upgrades.

Be careful not to get talked into any unnecessary renovations.

Sit down with the stakeholders in your house and make a priority list understanding needs versus wants. After you have an idea of where you want to go, review that priority list time and time again to ensure you don’t get caught on a runaway train to debt land.

Summer 2015

17

Do You DIY? “When it comes to home improvements, owners are wise to be honest with their realm of strength,” says Kimerie Janzen, sales manager at Baywest Homes. “DIY is great way to save money, but you have to be careful of not biting off more than you can chew. You don’t want the quality of construction affecting your eventual house sale.”

Consider if your project is a lipstick job or a change of footprint.

With some training, you can apply the lipstick, such as a fresh coat of paint, tile or floor work. Better yet, see if you can convince an experienced friend to assist you. If you’re changing configuration, this is when it’s advisable to bring in the professionals – especially if permits are needed. If you go the contractor route but want to stretch your budget further, ask if you can assist by doing jobs like the demolition or removing the floor.

Find The Right Contractor Most people find their contractor through word of mouth. When interviewing contractors, you’ll want to get an understanding of what’s being provided: The rate and time frame for the project.

Also inquire as to whether they have an interior designer on staff.

“Most people don’t think they want a designer but then call them when contractors need you to make decisions, such as how high the cabinets should be or accenting with tile,” says Brooklyn Berry, interior designer with BrooklynBerryDesigns.com.

References will give you the best indication of the contractor’s work, but realize contractors are going to give you their best ones, possibly even family members. Better yet, ask about the

jobs they’re presently working on. If you’re really keen on due diligence, go down to the site and talk to current clients to find out if the contractor is on time, on budget and easy to work with.

Finally, make sure the personalities are in synch as much as the technical aspects are.

“You’ve got to enjoy working with them, as this will be a longterm relationship. There’s still a year of warranty after the renovation is complete,” says Rennie.

Protect Yourself Everyone’s heard horror stories of renovations gone wrong. How do you know if the person you’re dealing with is legitimate? Find out by checking with the government to see if they are licensed.

If they’re not licensed by the Alberta government, they haven’t been bonded, nor had the necessary background checks. If they’re licensed and your project starts to sink, you’re more likely to get your deposit back.

Once you’ve determined the contractor is licensed, check with the Better Business Bureau to see if any complaints have been filed against them, and ensure the contractor has liability insurance.

If you’re spending more than $100,000 with a single contractor, ask if they’re a member of RenoMark™. This group of contractors, endorsed by the Canadian Home Builder’s Association, abides by a code of conduct including a two-year warranty on their projects. And when you’re dealing with large sums of money, it’s wise to set up a trust account with a lawyer to hold your deposit.

Finally, ensure you get everything in writing. Some contractors prefer to hash out specifics over the phone, but you’ll want certain details such as the estimate, start and end dates, plus who’s responsible for the cleanup written down and confirmed, if only in email.

How Long Will It Take?

Renovations often take longer than people expect. But take heart, the longer the job takes, the less profitable it is for the contractor, so it’s in their best interest to move quickly. There can be days or even weeks between one contractor coming in after the last. To avoid the waiting game, buy materials ahead of time and factor in that items may be out of stock. Decide quickly if your contractor is allowed to purchase other materials if the situation arises.

Be sure to draw up a timeline with your contractor before getting started to ensure your expectations are in line with reality. If permits are needed from the city, you’ll want to build in extra time to accommodate filing and receiving these.

It’s important to realize when you make changes to your plan in the middle of the reno, it’s going to add additional time to the project.

18 Summer 2015

“Clients need to be very well organized. We recommend they make their material selections quickly and reply promptly with good communication. There’s lots of people on a team involved in a project and client’s indecision affects timing,” says McCoy.

Spoiler alert: Renovation costs, timelines and DIY isn’t accurately depicted on TV. But by carefully monitoring your priority list and the timing and budget, you should have fewer issues and ideally a solid return on your investment. And don’t forget about the sense of satisfaction you’ll receive after improving your home, reminds Canmore’s Jennifer Webb, who’s undertaken 10 renovations in the past 15 years.

“Every time, it’s been worth it. I like the end result and it makes me happier to have a more functioning home, which is what every mother needs.”

Resource Guide Can’t find a contractor?

Visit handycanadian.com or homerenovationguide.com for suggestions.

Ensure the companies you’re dealing are licensed by visiting: servicealberta.gov.ab.ca/976.cfm.

Check out energywisehomesolutions.ca/alberta.php to learn of Federal and Provincial grants you could be eligible for.

If you’re looking to upgrade a secondary suite in Calgary, consult calgary.ca/suites and in Edmonton: edmonton.ca, for all necessary steps and requirements.

Alberta’s Private Mortgage Lender

WE PROVIDE NICHE LENDING FOR: » FLIPS/REHABS » 2ND MORTGAGES » QUICK CLOSINGS

» CONSTRUCTION » SHORT TERM NEEDS » DEBT CONSOLIDATION

Call us today for more infomation

888.752.4642

Dale Koeller, Sherwin Dziwenka & Dean Koeller

info@chmic.ca

|

www.chmic.ca

Summer 2015

19

DRUMHELLER

JUNE 11 & 12

This year’s Annual Conference brought together 320 brokers, lenders, sponsors and students, to celebrate AMBA’s 40th anniversary. Attendees enjoyed an action-packed day of activities, a hospitality suite, educational breakout sessions, featured speakers, a Jurassic trade show, a flash mob, and a “live” dinosaur.

Your Conference Emcees

CONFERENCE

Keynote Speaker Jon Montgomery

Presentations Available 20 Summer 2015

If you are looking for Michael Sumbler’s, Get The Facts ...The Equifax, or Kathrine White’s, Economist Mid-Year Outlook PowerPoint presentations, please email hmazur@amba.ca.

FLASH MOB

Video Available on AMBA.ca in the Member Zone.

THANK YOU

AMBA and the board of directors want to thank all conference attendees and sponsors for supporting our industry and organization at the Annual Conference and 40th Anniversary Celebration. We hope you had a roaring good time.

EVENING AT THE ROSEBUD

AROUND THE TRADE SHOW

WE HAVE A WINNER! Congratulations to Tammy Anderson from TMG The Mortgage Group Alberta.

She won a $7,000 all-expenses paid trip to Honolulu Hawaii.

BROKERS DIGGING FOR HAWAII

Summer 2015

21

DRUMHELLER JUNE 11 & 12

JURASSIC TRADE SHOW Spot The Dino Contest Winner Compliments of Quantus Mortgage Solutions Karen Loehndorf from Quantus Mortgage Solutions was the lucky winner of the Spot The Dino Contest.

Karen won a $200 Air Canada gift card.

THANKS TO

Keynote Speaker Jon Montgomery

WALK DOWN MEMORY LANE

SAY CHEESE PHOTO CONTEST

Check out this year’s conference pictures on our Facebook page. ‘Like’ a picture to be entered to win a $50 gift certificate.

The more photo’s you ‘Like’, the more chances you have of winning.

We will be releasing pictures in bunches, so keep checking back.

Contest Rules To be eligible to win, you must be following AMBA’s Facebook page and you must ‘Like’ a photo in one of AMBA’s Facebook albums 2015 Annual Conference & 40th Anniversary Celebration, or 2015 AMBA Annual Golf Tournament.

Contest closes September 30, 2015.

22 Summer 2015

Documentation Defence in a Down Market Derrick Leue, President, LMS PROLINK Insurance Group Inc.

Location, location, location, is the mantra when buying real estate. However, documentation, documentation, documentation, is the key when defending your mortgage brokering services from allegations of professional negligence.

DOCUMENTATION IS YOUR BEST DEFENCE The chance of being named in a lawsuit rises when the real estate market slows down, because falling values often lead to financial losses for lenders. Our insurance brokerage witnessed a 250 percent increase in claims during the real estate market downturn in 2008, as alternative lenders and private lenders incurred losses on impaired mortgages. In the vast majority of claims against mortgage brokerages, the private lenders were suing for the financial loss they incurred once they sold the foreclosed property for less than the outstanding mortgage principal and accrued interest. The statement of claim would typically name the mortgage brokerage, appraiser and lawyer as co-defendants. The allegations could be frivolous; however, without proper documentation it was difficult to defend our insured mortgage brokers.

In partnership with AMBA, we have spent a lot of time and effort educating mortgage brokers since the last market correction in order to help better prepare members for the next real estate down turn. We are all hoping for a stable marketplace throughout 2015 and into 2016. However, in the event of a correction, we are confident AMBA members have learned from 2008 and will have the appropriate documentation to support their defence of frivolous professional negligence claims.

Private Lender Disclosure Statement available for members to use. Members insured through Liberty and PROLINK under the AMBA E&O PLUS+ Program will be receiving a copy of the Individual Private Lender Disclosure Statement from the PROLINK Insurance Group.

We hope that brokers and associates find this important disclosure form valuable, as it provides a consistent approach to documenting your mortgages arranged with individual private lenders. We realize that many mortgage brokerages have invested time and money into developing their own disclosure statements for mortgages arranged with private lenders. Our firm is not opposed to the use of custom disclosure statements developed by mortgage brokerages. We encourage brokerages to use the same disclosure statement because it is important to be consistent in your documentation approach. We hope that AMBA members will be well-prepared to defend the inevitable increase in the frequency of claims from lenders if we experience a real estate correction. Our longer term goal has always been to improve the defence of claims brought against brokers by private lenders, and reduce the overall E&O premiums for the industry.

BETTER RISK MANAGEMENT TOOL Quite simply the best tool which can also present the greatest challenge when defending E&O claims is documentation. The mortgage broker/associate must have thorough documentation supporting their case even when the investor has significant experience in private lending. RECA does not mandate that a specific disclosure form be utilized when arranging mortgages with private lenders. The Real Estate Act simply stipulates that an agreement must be in place between the broker and the private lender. Other provincial jurisdictions such as B.C., Saskatchewan and Ontario, have developed specific forms mandated to be utilized on every private deal.

Always committed to helping members and the industry improve policies and procedures, AMBA assembled an experienced team of board members, brokers, lawyers and insurance professionals to develop an industry acceptable disclosure form that can be used by mortgage brokers and associates arranging mortgages with individual private lenders. AMBA has made the Individual

Learn More about the AMBA E&O PLUS+ Program The PROLINK Insurance Group Inc. is the proud manager of the AMBA E&O Liability insurance program.

Please contact a representative from the PROLINK Insurance Group’s AMBA Service Team in order to learn more about how E&O PLUS+ protects you.

Phone: 1-800-663-6828; Website: www.LMS.ca/AMBA Peter McCabe: AMBA Program Business Development Manager; PETERM@LMS.CA

Summer 2015

23

Industry News 2015 Mortgage Consumer Survey

Government of Alberta Interim Budget

The Canadian Mortgage and Housings Corporation (CMHC) 2015 Mortgage Consumer Survey is now available. Online research continues to be the most popular way to gather mortgage information, with 78 percent of mortgage consumers looking to various online sources for options and features.

With the change of government in May, an Appropriation (Interim Supply) Bill will be used to fund government operations until a budget is introduced in the fall. If passed, the 2015-2016 Interim Supply provides $15.4 billion to fund day-to-day operations between July 1 and Nov. 30. This budget will provide increased funding to restore stability to Alberta's education ($45 million), health care ($500 million), innovation and advanced education ($40 million) and human services ($39 million).

online stats

calculators

apps increase

experts used

offered

Among those who go online to research, 56 percent went to lender websites, 24 percent to broker websites, and 15 percent to both lender and broker websites.

70 percent of mortgage consumers used an online mortgage calculator. The most popular use of online calculators included: Determining mortgage payments (62 percent); using a comparison calculator (35 percent); or using a mortgage affordability calculator (34 percent).

New figures from Statistics Canada show that 69 percent of families are dual-income households. While Alberta has the lowest dualincome households (65 percent), compared to Quebec (73 percent) and Saskatchewan (74 percent), Canadian households rely on two incomes for mortgage payments and other living expenses. This has led to a decline in stay-at-home parents and there had also been a gender shift, with 11 percent of men staying at home in 2014 compared to just two percent in 1976.

The mortgage broker market has seen an increase from 2012 to 2015 with repeat buyers from 32 percent to 42 percent, first-time buyers from 48 percent to 55 percent, and refinancers from 27 percent to 33 percent.

42 percent of recent homebuyers used a mobile mortgage specialist to arrange their current mortgage, 32 percent used a lender branch, and 22 percent used a lender financial planner.

Source: Randall, S. (June, 2015). Canadian households rely on two incomes.

AMBA Ad March 2015_Final.pdf 1 01/04/2015 10:53:40 AM Mortgagebrokernews.ca.

Retrieved from http://www.mortgagebrokernews.ca/marketupdate/canadian-households-rely-on-two-incomes-192715.aspx

When obtaining a mortgage, 78 percent of lender clients and 72 percent of broker clients reported being offered mortgage life insurance, and 66 percent of lender clients and 48 percent of broker clients reported being offered a line of credit.

55 percent of renewers renewed an advance to avoid perceived rate increases. While 18 percent renewed early because they were advised to by a mortgage professional.

RRSP TFSA

Over the past year, 64 percent of renewers have contributed to a RRSP or a TFSA.

follow-up

Two Income Households

Among those using a mobile device, 22 percent used a mortgage related app.

early renewal

contact

Source: Government of Alberta. (July, 2015). Alberta budget. Retrieved from http://alberta.ca/budget.cfm

Following their mortgage transaction, 50 percent of consumers were contacted by a broker and 34 percent were contacted by their lender.

Follow-up contact information considered useful includes: Advice on long-term mortgage financial strategies, housing market information, information on how to manage financial difficulty, and investment opportunities.

repeat business

To increase the likelihood of repeat business, 53 percent of consumers agreed post-transaction contact is needed.

satisfied customer

Of all broker clients, 72 percent would use their broker again and 73 percent would recommend their broker to a friend or family member.

C

M

Y

CM

MY

CY

CMY

Please note: CMHC’s survey interviewed more than 3,500 active mortgage consumers in an online survey. The survey respondents included all prime household decision-makers who renewed, refinanced, or purchased a home with mortgage financing in the past 12 months. In total, the survey comprised of 58 percent renewers, 20 percent refinancers and 22 percent recent home buyers.

Source: Canada Mortgage and Housing Corporation. (May, 2015). 2015 Mortgage Consumer Survey. Retrieved from https://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/ sure/mocosu/upload/2015MortgageConsumerSurvey.pdf

24 Summer 2015

K

Home Buying In Canada

CAAMP’s Spring Mortgage Report The Canadian Association of Accredited Professionals (CAAMP) recently published its semi-annual report that focuses on mortgage lending and housing market trends. The report is based on a survey conducted by Bond Brand Loyalty Inc. of 800 Canadian homebuyers.

The report findings were as follows: Of the 620,000 Canadian households purchased per year: • 45 percent were first-time home buyers, • 20 percent were purchasing their second house, and • 33 percent were purchasing their third houses.

The largest amount of homes being bought were singledetached homes at 57 percent , with 24 percent buying semi-detached homes and row homes, and 19 percent purchasing condominium apartments.

The average purchase price of homes, including newlyconstructed and resale, was approximately $347,400.

The average down payment of homebuyers was about $119,000, with the average first-time buyer having a $67,000 down payment.

When asked if they would still be able to purchase a house if a minimum 10 percent down payment was required, six percent said they would have not been able to make the purchase and 12 percent said they would have probably not purchased a house.

The largest source of down payments for respondents was personal savings.

On average, 67 percent of buyers financed their purchase via mortgages and Home Equity Lines of Credit.

72 percent of buyers have fixed rate mortgages.

21 percent of buyers have variable or adjustable rate mortgages.

Seven percent of buyers have fixed and variable rate mortgages.

67 percent of mortgages have five-year terms, and the average amortization period is 22.1 years and 22.7 years for first-time buyers.

52 percent of mortgages were from banks and 34 percent of mortgages were from mortgage brokers.

The survey found that 39 percent of first-time buyers are more likely to use mortgage brokers than the other buyer groups.

Most buyers are employed full-time and have high confidence about their employment security.

Buyers expect interest rates and house prices will rise modestly during the coming year.

Buyers indicated that low interest rates have encouraged too many Canadians to buy homes, and are on-the-fence about whether their own local housing market is in a bubble.

Source: Dunning, W. (June 2015). A profile of home buying in Canada. Canadian Association of Accredited Mortgage Professionals. Retrieved from http://www. canadianmortgagetrends.com/wp-content/uploads/2015/06/Spring-2015-SurveyReport.pdf

Alberta Minimum Wage Increases Currently ranked 10th in Canada for general minimum wage, Alberta will move to third place on October 15, 2015, with the NDP’s new general wage increase.

Announced on June 29, the Government of Alberta will increase general minimum wage from $10.20 to $11.20 per hour, and increase liquor server’s wages from $9.20 to $10.70 per hour. Also established was an increase to weekly minimum wage of $446 for many salespersons, including land agents and certain professionals, and a monthly minimum wage of $2,127 for domestic employees.

EXEMPTIONS FROM THE MINIMUM WAGE INCLUDE THE FOLLOWING EMPLOYEES: Real estate brokers; Securities sales persons; Insurance sales persons paid entirely by commission; Students engaged in a work experience program approved by the Minister of Innovation and Advanced Education or the Minister of Human Services; Students engaged in an off-campus education program provided under the School Act; Extras in a film or video production; Counsellors or instructors at an educational or recreational camp operated on a non-profit basis for children or handicapped individuals or for religious purposes; and Farm employees.

Source: Government of Alberta. (June, 2015). Minimum wage going up to $11.20 October 1. Retrieved from http://alberta.ca/release.cfm?xID=38250813B581D-CC26-47A20C917F2173239A46

CMHC 2015 Housing Market Outlook – Second Quarter Results The Canadian Mortgage and Housing Corporation (CMHC) second quarter 2015 Housing Market Outlook reflects the evolution of risks between quarters. The report found that housing starts in oil producing regions are expected to decline, but are anticipated to be partly offset by increasing starts activity in other provinces where the economy stands to benefit from falling oil prices, lower interest rates, and a lower Canada/U.S. exchange rate.

Under CMHC’s base scenario, housing starts are expected to decline by 4.1 percent relative to 2014, Multiple Listing Service® (MLS®) sales are expected to decline 1.1 percent, and MLS® average prices are expected to increase by 3.4 percent.

Housing starts are expected to range between 166,548 and 188,580 units.

MLS® sales are expected to range between 437,100 and 494,500 units.

MLS® average prices are forecasted to range between $402,139 and $439.589.

Single-detached starts are forecasted to decline and range between 65,900 and 74,480 units.

Multi-unit starts are expected to decline and range between 100,630 and 114,330.

Source: Canadian Mortgage and Housing Corporation. (April 2015). Housing market outlook. Retrieved from https://www03.cmhc-schl.gc.ca/catalog/productDetail.cfm?cat =63&itm=1&lang=en&fr=1435605929737

Summer 2015

25

r u O o t a h Al o

PRESENTED BY

! r e n n i W p i r T

Congratulations to Tammy Anderson from TMG The Mortgage Group Alberta for winning the all-expenses paid vacation to Honolulu, Hawaii.

Contestants Opening Envelopes Tammy After Winning

Getting To Know Tammy Tammy is a mortgage broker who lives in Red Deer with her husband and two children, Kadriye and Kurtis. Born in Calgary, Tammy now considers Red Deer home. After completing her commerce degree at the University of Calgary, she began a 12-year career in human resources, working primarily for municipal government.

In early 2013, she decided it was time for a career change and pursued her mortgage broker’s license. Shortly after receiving her license, she began her new career with TMG. She has not looked back since.

Tammy has found her niche in an industry where she can exercise her entrepreneurial spirit, be accountable for her own success, and still be the mom who helps out at her children’s school. Her motivation comes from her desire to help her clients experience the satisfaction, security and peace that can come from owning your own home. She takes pride in putting them in a better position financially than when they started.

Tammy has been a member of AMBA since 2013.

Who do you plan on taking to Honolulu?

I plan on taking my husband Brad and my two children, Kadriye (11) and Kurtis (9).

Tammy and Family Skating

26 Summer 2015

What excites you the most about winning the trip?

That I am able to share it with my family. My husband works hard to support our family, and my kids have had to learn that mom isn’t always available. But when something as fortunate as this happens, it makes those really busy and stressful days worth it.

What’s the first thing you plan on doing when you arrive in Hawaii?

Walk to the ocean…I can’t wait!

Tammy won the trip for her and her husband. She has decided to make it a family vacation by bringing her kids. Her family will enjoy accommodations at the Hilton Hawaiian Village® Waikiki Beach Resort, a Waikiki Starlight Luau, and a Kualoa Experience Package (Jurassic Excursion).

Tammy and Family

A Tale Of Two Cities Phil McDowell, AMBA Board Director

At the time this article was written, the results of the Alberta provincial election were a week away. Will truth emulate fiction?

The Federal budget and the Provincial budget are indeed A Tale of Two Cities. As within Charles Dickens’s tale of London and Paris, the similarities of budget conditions in Ottawa and Edmonton may parallel.

The recent history of both cities involves a ruling elite with absolute power over the masses. A majority government is as close to a monarchy as we get nowadays. The tone of budget governance we see comparing the historical fiction and the political fiction of London/Ottawa, and Paris/Edmonton does have a resemblance. Spoiler alert: The historical fiction ends with the hero getting his head cut off, along with much of the ruling class aristocracy. How will the PCs fair?

To para-quote the Tale of Two Cities opening line, “It was the best of times, … it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us”; and that sets the tone of the tale of two budgets.

Ottawa reports the first budget surplus in eight years, and talks about the Federal debt reducing to under 30 percent of GDP. Speaking of GDP, Ottawa expects to see economic growth of at least 500 percent greater than Alberta’s forecast GDP 0.4 percent growth.

Alberta is projecting a $5 billion deficit and it expects its GDP growth to drop tenfold. Will Alberta’s clamoring masses be satisfied with mere growth, or must it be robust growth, or they may revolt?

Ottawa extols its efforts to put more money in the pockets of its voting masses with income tax deductions using increased family tax credits, universal child care benefits, child fitness credits, plus has extended compassionate care benefits. The Feds merrily talk about how 1.2 million more citizens are working since the end of the 2009 recession.

Edmonton, in contrast, introduces additional personal taxes with a graduated income bracket tax creep, plus re-charges to health care premiums.

through drinking though; you are handing over another 22 cents per litre.

Do we have some makings of liberty, equality and fraternity within this provincial budget? ‘Let them eat cake’! Corporate tax stays the same, as does royalties. There may be an interesting test of history. The Royalties of Paris did not change at a time the masses were expected to expect less. It did lead to some rather drastic chopping of Royalties later.

So far, has this Two Cities comparison been less than charitable?

That is an interesting question to ask because the Ottawa budget provided exempting capital gains on private shares, and real estate donated to charities. Edmonton proposed reducing the charitable tax credit by over 39 percent.

Big deal, these budgets do not effect mortgage brokers, so who gives a darn right?

The Federal budget did not detail a change to mortgage qualification. The minimum down payment for default insured mortgages was left unchanged. No change means no harm to brokers and their applicants.

The Provincial budget burdened real estate with additional costs. Mortgage brokers will pay 50 percent more to comply with underwriter conditions to search titles on declared properties owned and suspected properties owned. Mortgage broker applicants will pay more to buy or refinance because the document basic fee increased by 33 percent, and the variable component to registration went up 600 percent.

Is this the makings of a revolution? Will there be cries of, ‘Off with their heads’!

It may just happen in this province.

But you know, Alberta does not have a Provincial Sales Tax and does not have a Title Transfer Tax in the range of one percent of purchase price, all found in Ottawa (because it is in Ontario).

I am glad A Tale of Two Cities is historical fiction and not truly a current budget comparison reality. Just ignore everything I said except that last line, until we see the next budget. An election always changes the story line.

Not only are the Alberta shivering masses trampled with higher source deductions, their net pay and ability to enjoy life is taxed additionally. Those family weekend car rides are hammered with a 30 plus percent increase in provincial fuel tax. If you get caught wastefully speeding whilst using that tax-grab gas, the fine has gone up 35 percent. When you grab a smoke to calm your nerves with some of this news, well, the cost is another $5 a carton from you. Don’t try to escape these budget woes

Summer 2015

27

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $1.5 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M.

Looking for a bank that shares your creative vision. good Luck with that.

Blake Cassidy I 800 494 0389 I www.romspen.com

Private Mortgage Lenders Forum (PMLF) Update Dean Koeller, Chair of the Private Mortgage Lenders Forum

Why Is Private Financing Important?

If there is anything we can rely on, it is that change is constant.

Some organizations thrive on change and some are much slower to adapt. If we classified Canadian banks and luxury ocean liners providing vacationers with a consistent and reliable experience; then private mortgage lending would be the speed boat: Agile, quick and able to maneuver in much smaller spaces than the big ships. In most cases, Canadians are able to use and enjoy the ocean liner experience, but at times your clients need access to fast, flexible and customized services.

One of the greatest competitive advantages mortgage brokers have over bank reps is access to alternative resources. Private mortgage lenders offer mortgage brokers a unique tool set of products with no insurance restrictions or no OSFI restrictions. Just good, old-fashioned common sense lending that will make sense to you and your clients.

The following are some situations that may apply: Time sensitive transactions, Non-conforming property,

Private Mortgage Lenders Forum (PMLF) Focus Here are some issues our group is focused on today:

1

There are a total of 21 membered companies participating in the PMLF, and represent more than $1.6 Billion of mortgage financing;

Bridge financing, Investment properties,

2

Foreclosure situations,

Education

on

requirements,

new

compliance

which

was

implemented on May 5, 2015, and new compliance changes for July

Variability of income,

2015; and

Construction financing,

3

Poor credit, and

Developing a standard process for the investor experience.

Business for self.

How To Learn More?

Take the time to learn more about private mortgage lenders in your area, and understand how they can help you be more informed and offer more solutions to meet your client’s needs.

Dean Koeller, chair of the PMLF is available to answer questions by phone (403-278-0249) or email (dean@chmic.ca).

Summer 2015

29

2015 AMBA Award Winners

Awards Gala, Drumheller

This year’s award winners were announced on June 12, 2015 at our Annual Conference and 40th Anniversary Celebration Awards Gala.

Congratulations to All the Winners

Awards Gala Sponsor

Bill Patton Memorial Award Brian Menges, Caplink Financial

A past president of AMBA, Brian Menges has dedicated numerous volunteer hours toward making the industry better and participated on the RECA Mortgage Brokers Advisory committee. Menges co-authored the industry paper Realizablevalue...

The Real Risk to Mortgage Entity Investors, and leads the research project on the viability of self-insured E&O for mortgage brokers. He has also been instrumental in establishing the relationship with our current E&O provider – LMS Prolink.

Menges is currently the co-chairman of the Private Mortgage Lenders Forum and in his spare time volunteers as a mentor with the University of Alberta Venture Mentoring Services. He is also a sponsor and director of Food for Thought, a snack and lunch program feeding elementary school children. His industry resume is extensive and he symbolizes what the Bill Patton Memorial Award was renamed to recognize.

Volunteer Award

Mary Neary, CFF Bank Never saying no, Mary Neary sits on numerous AMBA committees, volunteering countless hours to industry events. Often taking on the lessthan-glamorous tasks, Neary always smiles and laughs her way through it all. Her dedication, support and expertise provided to industry professionals and the Association have helped make AMBA successful.

Turn to page 32 for

Past AMBA Award Winners

Partner Award

Heather Wytinck, Optimum Mortgage Heather Wytinck learned quickly to partner herself with great people. Starting her career in the industry many years ago, Laurentian Bank brought her to Calgary. There, she was introduced to the mortgage industry and learned the majority of her underwriting skills from the now-late Bonnie Bell.

Wytinck moved to Bridgewater Bank as an underwriter and then underwriting manager. It was through the guidance of two great mentors, Bill Patton and Eric Stewart, that she was able to further her career and eventually move into business development. After working with numerous lenders, Wytinck found her home with Optimum Mortgage in 2010. She considers herself blessed to have been involved with a number of brokers she met in her early years, Clarence Lee, Dennis Pedersen, Croft Axsen, and Phil McDowell, to name a few.

Wytinck is also a proud mother and has been a long-time AMBA Events Committee member.

30 Summer 2015

Emcee ndlund Hali Stra

Ambassador Award

Paul Bojakli, Quantus Mortgage Solutions Paul Bojakli has more than a decade of mortgage industry experience. A past president and director of AMBA, Bojakli worked hard to develop relationships with other provincial associations, as well as with the past president of CAAMP. A well-respected member of the industry and a proud father, Bojakli was also part of the Broker Advisory Committee to RECA, and assisted in the writing of the Mortgage Associate Program for AMBA. He has also sat on advisory boards for industry leaders, including CMHC, Genworth Financial, Merix Financial and MCAP. Five years ago, he and a partner started Quantus Mortgage Solutions, which they've grown rapidly into one of the largestproducing brokerages in the province. He works hard to ensure the Quantus team has an impact on the industry in multiple ways, including things like as the annual softball tournament Quantus hosts for all their industry partners.

Leadership Award

Sandra Fisher, Verico iMortgage Solutions A 27-year veteran of the mortgage brokerage industry, Sandy Fisher is the broker owner of Verico iMortgage Solutions and a proud mother. Her never-give-up attitude is contagious. She has a rare gift of simplifying the complicated world of mortgages, and has created a team of professionals that are some of the best in the business.

Fisher is currently involved with the President's Advisory Council within the Verico Canada network.

Thanks for the centrepieces.

The 40th Anniversary-Mentorship Award Brian Gentles, TMG The Mortgage Group Alberta

In honour of our 40th Anniversary, AMBA added a special one-time Mentorship Award, courtesy of Street Capital Financial.

This award recognizes a member who represents a member brokerage which has demonstrated long-term commitment to the betterment of the mortgage industry through mentorship of associates and fellow brokers.

Brian Gentles is a 15-year veteran who puts in a tremendous effort to help new agents at his brokerage adapt. Gentles goes out of his way to meet with potential new brokers considering getting into the mortgage industry and explains the ins and outs of the business to help them determine whether or not it is for them, and if it is, that they have the right information to ensure their success.

Gentles takes every new agent under his wing at TMG, creating and organizing an onboarding course specifically designed for both new agents and those new to TMG, delving into everything from the different types of lenders to mortgage insurance, compliance, best practices and much more.

He does this several times a year. And on top of that dedication, he is readily available to new brokers who have questions, whether it’s to discuss files or how to package a deal, or what lenders to consider based on circumstances.

Gentles does all of this selflessly, purely to help others and further careers other than his own. Amazingly, he is still a top performer himself who runs a small team of brokers. Gentles is the very definition of a coach and mentor.

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A Look Back

Past AMBA Award Winners

An initiative started by the Board of Directors, AMBA’s first Awards were held in 2006, at the Capri Centre in Red Deer. The awards were established to recognize AMBA’s outstanding members who best exemplify the finest standards of professional practice and accomplishment.

The Awards Committee was formed to determine a transparent process for individuals to be nominated for an AMBA Award, and feedback was gathered from the membership to structure a format and determine the criteria for each award.

As the industry changes, AMBA will continue to work with the Awards Committee and its membership to create awards that represent the time.

Bill Patton Memorial Award

The recipients of the Bill Patton Memorial Award are members who have demonstrated long-term commitment to the betterment of the mortgage industry, and the associations’ core values of integrity, personal excellence, accountability and community.

2013

2010

2008

In 2014, the President’s Award was renamed the Bill Patton Memorial Award.

2014 Gary Siegle 2013 Everett Koeller 2012 Dean Koeller

2010 Pat Kelly 2009 Gary Siegle 2008 Bob Hutton

2007 Eric Stewart 2006 Brian Menges

Partner Award

The recipients of the Partner Award are non-broker members who have demonstrated commitment to the mortgage broker industry through promotion of the value of mortgage brokers to consumers, active involvement within the industry, committee or board work with AMBA, RECA, CAAMP or other related industry association(s).

2014 Derrick Leue 2013 Nancy Kamineski 2012 Jill Paish

2011 Tracey Robinson 2010 Mary Ann Krahulic

2010 Ryan Spence 2007 Bob Dubask

Leadership Award

The recipients of the Leadership Award are members who show leadership potential.

These aspiring and inspiring award winners have demonstrated active involvement within the industry, exemplify professional and ethical conduct in their business practices, and display positive promotion of the value of mortgage brokers to consumers.

2014 Douglas Whelpton 2013 William Charlton 2012 Larry Frondall

2011 Len Lane 2010 Gay Andrews 2009 Karen Blomquist

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Derrick Leue

2013

William Charlton

The recipients of the Ambassador Award are members who have demonstrated the associations’ core values. They represent the industry in some capacity on a committee, in communication with government and regulator, or been involved in an initiative(s) that supports the betterment of their community.

2011 Clarence Lee 2010 Hayley Whelpton 2009 Brian Gentles

2014

Pat Kelly

2013

Bob Hutton

2010

Nancy Kamineski Mary Ann Krahulic

2010

2009

2007 Tracey Manz

Ambassador Award 2014 Pat Kelly 2013 Todd Fralic 2012 Frank Hickey

Everett Koeller

2008 Michael Cameron 2007 Dave Trithart 2006 David McNabb

2011

Clarence Lee

Gay Andrews

2009

Brian Gentles

Karen Blomquist

2008

Michael Cameron

AMBA Award Winners badge now available.

The Award Winner badge is offered to all AMBA Award Winners to showcase their achievement with industry members and customers.

Contact hmazur@amba.ca to get your badge today.

Volunteer Award

The recipients of the Volunteer Award are members who have given back to AMBA in the greatest possible way, donating many personal hours for the betterment of the industry and association. These recipients have gone above and beyond in helping the staff accomplish the many tasks necessary to pull off flawless events or educational pieces.

2014 Paula Hutton

2014

2013

2013 Ryan Spence Paula Hutton

Lifetime Achievement Award

The recipients of the Lifetime Achievement Award are members who have demonstrated a commitment to the betterment of the mortgage industry and the association, spanning their entire career. They exemplify the association’s core values of integrity, personal excellence, accountability and community, and have gone above and beyond in helping develop the association and the industry for the mortgage brokers of tomorrow.

2011 William Watson 2009 Ed Dooley 2007 Bill Patton

2011

William Watson

Ryan Spence

2007

2009

Ed Dooley

Bill Patton

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Private Lender Proteccon:

Visit our booth at the 2015 AMBA Annual Conference!

Summer 2015

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Sponsors thank you to our

Title Sponsor

Gold Silver 速

Title Insurance Asset Protection Process Solutions

Bronze

34 Summer 2015

Marketing Made Easy: Three Steps To Building A Highly Profitable Repeat And Referral Business Ingrid Menninga, JOLT Marketing

There's a 95 percent chance that you are under-marketing your business. I get it. With so many competing tasks, it can be a challenging to decide what to do. But marketing is what makes your business grow. If you want to grow your business, you must up your marketing game.

The good news is there's a very simple three-step strategy for marketing.

STEP ONE: BUILD YOUR ONLINE PRESENCE TO ATTRACT REPEAT AND REFERRAL BUSINESS.

STEP TWO: USE PASSIVE LEAD GENERATION TO KEEP THE BUSINESS YOU HAVE. I'm not a fan of complicated, overly technical marketing. I like easy marketing. The easy route in is called ‘passive lead generation.’ It's automated, set up once and then it's done.

If you don't have automated systems in your business, such as automatic monthly newsletters and done-for-you social media, you will lose more business than you would ever care to know about, simply because you didn't keep in touch.

If you want to attract repeat and referral business, you have to have the right online presence. Why? Because referral clients will pass your name along and they will go to Google to look you up. Make sure they're seeing search results that make them want to contact you.

You need to use passive lead generation, starting now. Yes, right now! Stop losing business because you don't have this set up.

The basics you will need for your online presence are:

The last step in your marketing magic is to do some active lead generation. This is the kind of marketing that you're actively working at, like hosting First Time Home Buyers Seminars.

A) A good website B) Social media sites that are updated regularly with high-quality content.

The key with social media is not just to be on Facebook, Twitter and LinkedIn, it's to post consistently. A good starting point is three times a week. The goal of your social media is to stay top of mind. If your clients don't remember you, they can't refer you, right?

Keep in mind you need to post the right stuff. People don't go to social media to get ‘sold to.’ They go there to be entertained and engage with friends. More and more, they are catching up on news and getting educated, even on mortgages. In 2014, Canadian Mortgage and Housing Corporation (CMHC) found that more than 22 percent of online mortgage consumers used social media to gather information about mortgages. That number has increased 90 percent every year, and there's a big audience — 93 percent of online Canadian's use social media.

STEP THREE: USE ACTIVE LEAD GENERATION TO GET NEW FRESH LEADS QUICKLY.

My personal rule is you want to do the same thing at least five times to get good results. Don't just host one seminar, host many! First, you can host your own seminar and advertise it to your email list. Then, you do one with a referral partner and get them to advertise it to their email list and bring you a whole new audience. For each referral partner, host a separate seminar.

You can quickly build a whole new list of leads.

Just remember, those leads are going to: A) Look you up online to make sure they like what they see; and B) Need to be reminded gently about what you do via your passive lead generation in order to become repeat and referral business.

That's why you need all three of these steps in place for this super simple marketing strategy!

Ingrid Menninga is the founder of JOLT Marketing, the company behind Mortgage Bulletin: Canada's leading "Done for You" Social Media service for Mortgage Brokers. To get a 14 day FREE trial of Mortgage Bulletin, email info@mortgagebulletin.ca

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Member Profile

Mark Pullin Born and raised in Calgary, Mark Pullin graduated from Springbank Community High School in 1977.

Success was soon realized when Mark purchased his first business before his 18th birthday.

For eight years, Mark worked with First Calgary Credit Union and also had a successful 15-year career selling real estate. Mark has been involved in the banking, real estate and lending industries for 35 years and in 2002, Mark and Dianne Pullin founded Cedar Peaks Mortgage Services.

Today, Mark and Dianne live in Elbow Valley and each have one child, both married. One resides near Washington, D.C., and the other in Toronto. As ‘young’ empty nesters, with the exception of their cat Chico, Mark and Dianne enjoy golf (getting the most out of their Elbow Springs membership), exploring new culinary experiences at home, drinking nice wines and spending time at their cottage in Radium, B.C., whenever possible.

What are a few of your hobbies?

During the winter months, I enjoy playing and watching curling.

However, watching and following the NFL is my passion (Go Steelers!). I try to get to one NFL game each season with Dianne.

In the summer, my passion for curling (and NFL) is replaced by golf in Calgary and Radium.

Please tell us a little about your company …

Cedar Peaks Mortgage Services was established in December 2002 as a private lending company, mostly by the vision and determination of Dianne. We On The started operating out of our Signal Course Hill home. However, growth and increasing staff requirements forced us to move to our current Glenbrook location in 2008.

Cedar Peaks employs one part time employee, three full time employees, and Dianne and myself.

What is your experience with AMBA?

Go Steelers!

How did you get started in the business?

After almost 15 years in real estate, it was time for a change and a new challenge. As a result of my banking and real estate careers, I had acquired an immense amount of real estate knowledge and had built a loyal and long-term portfolio of clients. With the combined work experience of both Dianne and myself, mortgage lending was a natural transition. Soon thereafter, Cedar Peaks Mortgage Services was created.

What do you love about mortgages?

What I love is putting together a mortgage that requires private funds, creativity and thinking outside the box. When this is accomplished, it is both satisfying and rewarding because, at the end of the day, I have helped the referring broker, a borrower in need of a short-term solution, as well as our investors.

Steelers Stamp - catwalker / Shutterstock.com

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My experience with AMBA over the years has been nothing short of amazing. As a private lender, a large part of my business is derived from the brokerage community. Through sponsorship and attendance at many AMBA events, Cedar Peaks is able to provide the brokers with knowledge and information about private lending. Just as important is the opportunity to meet so many great people in the industry, many of which I am proud to call friends.

What is your vision for the mortgage industry?

Continued efforts are required to gain more public awareness and trust in using the services of a mortgage broker. There has been significant progress in this area over the last several years and the results of these efforts are finally being realized. As time has progressed, I am seeing a steady increase of professionalism in the industry.

In the upcoming years, I feel we will see more niche lenders and brokers entering the mix as there is a realization you can’t be a ‘master of all trades’.

As the fog of the recession dissipates, I feel our industry will find balance once again and success will be achieved through focus, integrity and of course constant hard work.

In such a competitive market, how do you stay ahead of your competitors and remain successful?

Our industry has a healthy competitiveness. Many of us do the same type of lending yet there is room for all of us. It’s not so much about staying ahead of them as it is about having a great relationship with them. We often work together and also have supported each other through industry and regulatory changes.

Constant communication, discussions and exchange of ideas with our peers has proven to be an invaluable part of our success.

Please share three fun facts about yourself.

1. I start each day with the mission of making someone laugh.

Laughter truly is the best medicine and it can break the intensity of a moment. I have a lot of fun with this even if it ends up that people are laughing at me and not with me.

2. My cat Chico helps me with my deals in the early morning. His favorite key is CAPS LOCK. If you receive an email response from me with suspicious Caps Lock in it, it was due to Chico’s contribution 3. I have become a commercial kitchen shopping expert. I have come home with more small appliances and gadgets that I truly felt we needed to have.

Thank goodness Dianne sees the humour in it.

Chico the co-pilot

Please share three facts about your company.

1. We are very proud of our longevity and loyal staff. The recession of 2008 and the implementation of Alberta Security Commission regulation resulted in many private lenders fading into the sunset.

We are still here better and stronger than ever!

2. Cedar Peaks is licensed in both British Columbia and Alberta.

We fund a wide variety of first and second mortgages in many sectors including: Residential, commercial, multi-family, development, and construction.

3. Our main source of deals is the broker network. I love this aspect of the business. Whether it’s doing a presentation at a broker’s office, working through a tough deal together, or mingling at an AMBA function, without you the broker, we would not be in business. Dianne and I sincerely thank you!

How long have you been an AMBA member?

I have been an AMBA member and active supporter since 2000.

Thank you AMBA for all you do.

What’s your favourite AMBA event?

My favourite AMBA event is the annual trade show and golf tournament. The trade show gives us an opportunity to meet so many industry members and answer questions about private lending or Cedar Peaks all in an 8’ x 10’ space.

The golf tournament gives me a chance for an extra golf game and to visit 17 hole sponsors which I find not only fun but a great learning experience. Cedar Peaks always sponsors a hole with Dianne and our team handing out beer and cigars.

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FACEBOOK.COM/ALBERTAMTGBROKERSASSOC

2015 AMBA Update

Follow AMBA on Facebook and Twitter for the latest on Events, Webinars and Industry Updates TWITTER @AMBA1975

Fall 2015 Broker of Record Meetings Calgary, AB

September 23, 2015

Lethbridge Lodge Hotel and Conference Centre Lethbridge, AB October 7, 2015

October 2015 Education Session with AMBA/CAAMP (Half Day) Marriott at River Cree Resort Edmonton, AB October 15, 2015 Registration opening in early September.

Marriott at River Cree Resort Edmonton, AB October 14, 2015

Hendrix Law WHEN NOTHING BUT THE BEST WILL DO!

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38 Summer 2015

December 2015 AMBA Annual General Meeting AMBA Office Atrium Suite 150 - 1209 59 Ave SE Calgary, AB December 3, 2015

AMBA Family Holiday Party Chestermere Recreation Centre 105 Marina Road Chestermere, AB December 6, 2015

SMART

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