CMP 7.3

Fi

na li st s

Pa an ge n 32 o u

march 2012 / issue 7.3 / $6.95

Private lenders look to cash in with brokers page 24

FINANCE Weighing the LOC options

PROFILED Northwood’s Allan Kates

MARKETING Quality conversations

nc

ed

!

TM TM TM TM

Take Take the the first first step step towards towards aa

giant leap giant leap in your career. in your career.

With innovative programs, sales incentives, and value added benefits, HLC helps empower Withto innovative sales incentives, and value added benefits, you achieve programs, more. If you’re ready to discuss your career optionsHLC withhelps HLC,empower call the you to achieve more.

If you’re ready to discuss your career options with HLC, call the Regional Sales Director in your area.

Regional Sales Director in your area.

Grant Bennett British GrantColumbia Bennett

Dodi Kozak Alberta Dodi Kozak

Mark Buller Ontario South & West Mark Buller

• 1-866-978-9919

• 1-866-443-9427

• 1-866-236-5765

Nicole Bernier Quebec Nicole Bernier

Angelo Froudakis GTA & Ontario East Angelo Froudakis

Geoffrey Woodford Atlantic Canada Geoffrey Woodford

• 1-866-264-8571

• 1-866-702-4994

• 1-866-217-5159

British Columbia • Grant.Bennett@hlcmortgages.com Grant.Bennett@hlcmortgages.com •• 1-866-978-9919

Quebec • Nicole.Bernier@hlcmortgages.com Nicole.Bernier@hlcmortgages.com •• 1-866-264-8571

Alberta • Dodi.Kozak@hlcmortgages.com Dodi.Kozak@hlcmortgages.com •• 1-866-443-9427

GTA & Ontario East • Angelo.Froudakis@hlcmortgages.com Angelo.Froudakis@hlcmortgages.com •• 1-866-702-4994

Ontario South & West • Mark.Buller@hlcmortgages.com Mark.Buller@hlcmortgages.com •• 1-866-236-5765

Atlantic Canada • Geoffrey.Woodford@hlcmortgages.com Geoffrey.Woodford@hlcmortgages.com •• 1-866-217-5159

3877337 Canada Inc. is a subsidiary of CIBC Mortgages Inc. and carries on business as HLC Home Loans Canada (“HLC”) except in Quebec, where it carries on business as HLC Logis Concept and is licensed a mortgage agency.

HLC Home is licensed/registered Ontario as a in mortgage under 3877337 Canada Inc.Hypothèques is a subsidiary of CIBC Mortgages Inc. and as carries on business as HLC Loans Canada in (“HLC”) except Quebec,brokerage where it carries Licence #10423, in British ColumbiaLogis and Nova Scotia asis alicensed mortgage broker, in Alberta as aHLC mortgage brokerage and ininNew Brunswick as a credit broker. under on business as HLC Hypothèques Concept and as a mortgage agency. is licensed/registered Ontario as a mortgage brokerage TM HLC Design is in a trademark of CIBC. Licence #10423, British Columbia and Nova Scotia as a mortgage broker, in Alberta as a mortgage brokerage and in New Brunswick as a credit broker.

TM

HLC Design is a trademark of CIBC.

44

contents / issue 7.3 NEWS & VIEWS 10 | Round-up The latest market news from the world of property, economics and mortgages 14 | Analysis What are the implications of tighter mortgage regulations

Peter Kinch explains that brokers working with investors must look at the nuances and differences offered to them in the form of lines of credit

Cover Story 24 | Full Steam Ahead With a shift in the stated income lending space, suddenly private lenders are looking forward to a very busy year, and brokers that utilize their services will now be able to help more potential clients

16 | Viewpoint What MortgageBrokerNews.ca visitors are saying about the departure of TDFS 18 | Product News A round-up of the latest industry product launches to keep you up-to-date 20 | The Big Story A compilation of the top quotes from our weekly multimedia broadcasts 22 | This Time Last Year Taking a new look at what made the headlines this time last year

issue

7.3

ANYONE CAN DOTHE SLAM DUNKS.

FEATURES 32 | 2012 Canadian Mortgage Awards The time has come to once again recognize the best of the best in the Canadian mortgage industry (in 21 categories!) with the announcement of this year’s Canadian Mortgage Award finalists.

44 | Not all lines of credit are created equal In the latest feature from our sister magazine Canadian Real Estate Wealth, Peter Kinch explains that brokers working with investors looking for extra leverage to make their next investment must look at the nuances and differences offered to them in the form of lines of credit MARKETING 48 | Realtor Marketing Secrets: In his latest instalment, Doren Aldana explains that the follow-up phone call is about asking good quality questions, listening, taking notes and offering them a prescription to cure their pain

Blake Cassidy

800 494 0389 | romspen.com

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada. With $1 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $2M to $60M.

$35,000,000

Condominium Construction Facility VICTORIA, BC $11,000,000

Condominium Development Site TORONTO, ON $7,500,000

19 Serviced Industrial Lots EDMONTON, AB

License # 10172

contents / issue 7.3

52 | Stats This month’s statistics round up looks at residential sales and prices across Canada

columnS

54 | Broker For Allan Kates and Northwood Mortgage, a strong team is the key to being successful and that includes brokers as well as external partnerships

62 | Guest They may not be for everyone, but the freedom and security of a reverse mortgage could be the perfect fit, depending on your clients’ tolerance for risk and their expectations for the future

56 | Insight Mortgage industry associations are leading the charge in getting out the message that more mortgage rule changes are not the answer to rising debt levels

Twitter.com/ CMPmagazine

Expert mobile half page ad_with border.pdf

profiles

Like Us on Facebook Canadian Mortgage 17/02/2012 5:47:37 PM Professional

regulars 60 | Favourite Things 63 | CMP Service Directory

58 | Provider Private lender, Fisgard Capital offers more competitive and accessible mortgage products than conventional lenders.

18 NE W !

Expert Mobile

technology for your

C

M

Y

phone that is

CM

MY

CY

to use.

CMY

K

Contact your Regional Sales Manager to learn more about Expert Mobile

© D+H 2011. All rights reserved.

D+H and its logos are trademarks of D+H Limited Partnership.

2 | mortgagebrokernews.ca

https://m.expert.dhltd.com

Bill Watson

November 25, 1956 - January 4, 2012 William ‘Bill’ Watson was a pioneer in the mortgage brokerage industry. Well respected in his community for integrity and genuine care for others, Bill lived by the motto of pay it forward.

On top of his numerous professional accolades, Bill was the 2011 recipient of the Lifetime Achievement Award from the Alberta Mortgage Brokers Association (AMBA) for his contributions to the industry.

The Mortgage Centre family is proud to have known Bill as both a colleague and trusted friend. By re-launching our highest honor as The Bill Watson award, we hope to pay tribute to his legacy and raise the bar for those who follow in his footsteps.

The Mortgage Centre is a division of CIBC Mortgages Inc., a member of the CIBC group of companies. ® The Mortgage Centre is a registered trademark of CIBC Mortgages Inc.

contents / Editor’s letter

Achievement is in the air With spring comes melting snow (if there’s any left), warmer weather, longer days and, the muchanticipated release of the Canadian Mortgage Award finalists.

After thousands of nomination submissions were gone over, the cream of the mortgage broker industry has risen and 21 winners will be honoured for their achievements at the sixth annual event, to be held June 1 at The Carlu in Toronto.

The complete list of finalists can be found starting on page 36 (The Lifetime Achievement award recipient will be revealed the night of the awards.) This is the must-attend event of the mortgage industry and tables are going fast, so make sure to visit www.canadianmortgageawards.com to book your attendance.

In this month’s cover story (Full Steam Ahead, page 24) we discover that the outlook for the private lending sector is looking up this year as brokers scrambling to help stated-income and BFS clients in the wake of some lenders tightening their programs, are starting to reach out to private lenders.

“From a private lender’s standpoint, I can’t help but be a little happy,” says James Pell, underwriting manager at Spectrum Canada Mortgages Services in Burnaby, B.C. Other issues discussed in this issue include a recent report outlining the importance the housing and mortgage market has on employment and economic activity in Canada (page 14), the nuances and differences offered in the form of lines of credit (page 44) and how to make sure that follow-up phone call to a potential Realtor partner will result in business for you (page 48). You also notice a new Stats section in the back section of the magazine where we will highlight relevant data from the worlds of property, economic and mortgages.

So, as always, I encourage you to contact us with any news related to the broker and mortgage industry or just to share your opinions on how we’re doing. It is exciting times for our industry and we look forward to helping you and your business navigate them.

Cheers.

John Tenpenny, Editor

connect

Contact the editor: john.tenpenny@kmimedia.ca

4 | mortgagebrokernews.ca

COPY & FEATURES Editor John Tenpenny Associate Online Editor Vernon Clement Jones SUB-EDITOR Rachel Naud

ART & PRODUCTION Design Production Manager gRAPHIC dESIGNER

Angie Gillies Alicia Chin

SALES & MARKETING

NATIONAL SALES MANAGER Trevor Biggs SALES MANAGER, Mortgagebrokernews Scott Clarke Marketing and Communications Julia Comitale PROJECT COORDINATOR Jessica Duce

CORPORATE PRESIDENT & CEO Tim Duce OFFICE/TRAFFIC MANAGER Marni Parker Events and Conference Manager Chris Davis

Editorial enquiries john.tenpenny@kmimedia.ca Advertising enquiries trevor.biggs@kmimedia.ca Subscriptions tel: 416 644 8740 • fax: 413 203 8940 subscriptions@kmimedia.ca KMI Publishing 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 mortgagebrokernews.ca Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as CMP magazine can accept no responsibility for loss.

B R O K E R F O C U S E D . B R O K E R L O YA L .

You’ve just met with your new clients.

You need a lending partner, not a competitor.

More than ever, Canadians are shopping for mortgages. To provide brokers with a significant advantage, we offer: • Competitive rates • More compensation choices • Superior customer service • A broad range of mortgage products • Status programs with unique advantages As your lending partner, our job is to help you grow your market share.

To learn more about how Street Capital can assist you, contact your local RVP today.

Tel: 647.259.7873 • Toll Free: 1.877.416.7873 • www.streetcapital.ca ™ Trademark

of Street Capital Financial Corporation. FSCO Licence No. 11428

Quotables

“Some people are not always prepared to pay the premium. They are going from four to five per cent to getting quoted six to seven per cent in lender fees. I wish I could quote lower but we’re a private lender and the brokers should have warmed them up to this ahead of time.”

Private lender James Pell, discussing the need for brokers to temper their clients’ expectations Page 24

“Whatever their preference, your senior clients will profit from a careful consideration of their current and future financial situation. So show them all the options and let them know that it pays to plan ahead.”

Gary Morrison, advocating reverse mortgages as an option for some broker clients Page 62 6 | mortgagebrokernews.ca

“It’s going to get tougher.

TDFS had a whole different product line from Equity Trust and Home Trust. It was a niche area in the market and no one else is doing the line of value on B or C credit.”

Mortgage agent Michael Marini, a mortgage agent, commenting on the departure of TDFS from the lending landscape Page 16

Home ownership can open the door to many new opportunities.

Which ones can an Equityline Visa unlock for your clients? ®

*

Whether it’s to improve their home, manage their business or consolidate debt, help your clients use their home equity to secure a flexible line of credit, through an Equityline Visa. Yet another way Home Trust helps you open more doors when opportunity knocks.

For more details, talk to your business development manager or visit www.hometrust.ca/broker.

MORTGAGES

I

CREDIT

I

VISA

I

DEPOSITS

*Visa Int./Home Trust Company, licensed user of mark. ® Registered trademark of Home Trust Company.

I

www.hometrust.ca

There are three ways we make deals happen:

1.

2.

3.

Ok, there’s only one way.

At Bridgewater Bank, every deal we make is driven by service. Unlike the big banks, our focus is serving brokers. So when they have questions or special requests, we’re nimble enough to get back to them fast. In fact, we have dedicated service teams that treat them like partners. And, we’ll go out of our way to find solutions for brokers and their clients — no matter how challenging or unique the situation. To us, deals are more than just numbers on a page. They’re about turning a house into a home.

1-888-837-2326 • bwballstarportal.ca

News / Round-UP

remaining on the mortgage that was used for the calculation. interest rates

Bank of Canada may end the rate wars regulations

Borrowers win clarified penalty terms After class-action suits and a lake of client tears, the federal government moved recently to force banks to clarify their prepayment and penalty terms.

“The Code is to ensure that federally regulated financial institutions (lenders) provide enhanced information in respect of credit agreements secured by mortgages where a prepayment charge could apply (mortgages) to assist borrowers in making decisions about prepayment of their mortgage,” reads the Mortgage Prepayment Information section of the country’s new Code of Conduct for Federally Regulated Financial Institutions.

“The information that will be provided under this Code is in addition to existing information provided by lenders to borrowers.”

Under the terms of those new requirements, when borrowers tell a lender they are prepaying the full amount owing on a mortgage or even a specified partial amount, the lender must in writing provide the applicable prepayment charge, along with a description of how the lender calculated the prepayment charge.

That responsibility goes beyond informing clients about whether penalty calculations rely on a certain number of months’ interest or an interest rate differential.

In fact, if the lender used the IRD to calculate the prepayment charge, it must inform the borrower of the outstanding amount on the mortgage, the annual interest rate on the mortgage, the comparison rate used for the calculation, and the term

If the banks aren’t prepared to put the brakes on rising mortgage debt, the Bank of Canada may soon be, hinting that it could raise its key overnight rate as soon as this summer. stats

36%

– of Canadians say they believe their own personal financial situation will improve, compared to 38 per cent in 2011 and 45 per cent in 2010 Source:

RBC Canadian Consumer Outlook Index

“The heightened uncertainty around the global economic outlook has decreased in the weeks since the Bank released its January Monetary Policy Report (MPR),” read the Central Bank’s announcement maintaining its benchmark rate at one per cent. “With tentative signs of stabilization in European bank funding and sovereign debt markets, conditions in global financial markets have improved and risk aversion has decreased.”

THE ALTERNATIVE LENDER You NEED To kNow Hali Strandlund

Fisgard is one of the largest private alternative lenders in Western Canada and is dedicated to supporting mortgage brokers and their clients. We provide competitive products, flexible lending guidelines and dedicated customer service.

Having a good relationship with you, our broker clients, is critical to the success of our business. Fisgard’s creative, knowledgeable and experienced underwriting team wants to see all of your deals that don’t fit the typical “bank box”.

Chances are that Fisgard can fund these deals, and fund them quickly. We are here for you and we’re here for your clients.

Call your underwriter today.

Call 866.382.9255 or visit www.fisgardmortgage.com

10 | mortgagebrokernews.ca Fisgard Capital Corporation | 3378 Douglas Street, Victoria BC V8Z 3L3 | www.fisgardmortgage.com

www.centum.ca

Make dreams come true...

The CENTUM Network is helping children experience the magic of a wish by supporting its national charity, The Children's Wish Foundation of Canada.

When someone’s looking out for your best interest, dreams can come true.

Join the network that looks beyond rate. Allison Taylor at 1.888.928.1338 or allison_taylor@centum.ca The CENTUM Network is Canada’s Premier Mortgage Broker Organization and one of Canada’s largest networks with over 260 locally franchised offices with more than 2,500 mortgage professionals on Centum.ca.

Independently Owned and Operated. ®/™ trademarks owned by Centum Financial Group Inc. © 2012 Centum Financial Group Inc.

News / Round-UP non-banks

property

Xceed extends broker commission program

Homes sales seen rising, prices falling in 2012

Xceed has extended its bonus offer of an extra 25 bps for brokers until the end of June despite criticism from brokers that it is unsustainable.

While prices are higher this year, lower interest rates will keep buyers active, according to the Canadian Real Estate Association’s latest quarterly forecast.

“Friends of Xceed” receive 115 basis points for each three-year deal and 135 bps for a five. The offer, which started in December, coincided with the company’s return to the broker channel in September 2011 and was originally intended to end on February 29.

CREA predicted that home sales activity in Canada will remain relatively unchanged in 2012 from last year, although average prices will be lower in two years than they are now.

President and CEO Michael Jones said the decision to extend it was based on the positive reactions from brokers and the business they were sending the company.

“The quality of the business we have been getting through the front door has pleasantly surprised us,” he said. “We’re happy to be establishing new relationships with brokers.”

He answered some brokers who charge the offer is unsustainable.

“There’s nothing gimmicky about paying more money to brokers who bring us good business,” he said. “It’s not sustainable forever, but it’s a good way for brokers who perhaps haven’t worked with us before to get to know us.”

0.3% 0.3% 1.1% 0.9%

Percentage growth in home resale activity predicted for 2012 Percentage decline in home resale activity predicted for 2013 1.1% Percentage decline in the national average home price predicted for 2012 Percentage rise in the national average home price predicted for 2013

MortgageBrokerNews.ca Reader Poll How will the possible sale of FirstLine affect the broker channel?

Positively 10% Negatively 61% Not at all 28% A Non-Bank Lender Providing: Construction, Bridge and Equity Financing Recent Transactions:

$1,020,000 FIRST MORTGAGE LAND & CONSTRUCTION LOAN FACILITY 3,399 sq. ft. custom home Mississauga, Ontario

For Lending Inquiries Please Contact:

Michael Carragher

Tel: (416) 635-0221 Fax: (416) 635-1713 1244 Caledonia Road Toronto, ON M6A 2X5 mcarragher@FirmCapital.com Firm Capital Corporation Ontario License #: 10164

www.FirmCapital.com

12 | mortgagebrokernews.ca

$6,250,000 FIRST MORTGAGE BRIDGE LOAN FACILITY 26 loft condominium units

Toronto, Ontario

$3,250,000 FIRST MORTGAGE TERM LOAN FACILITY

95,127 sq. ft. free standing industrial building with two storey office area in front section of building

Waterloo, Ontario

Funding For:

         

Residential & Commercial Construction Land & Development Financing Inventory Housing Loans Infill Construction Financing Bridge & Equity Financing Investment Properties Multi-Residential Alternative House Lenders 1st & 2nd Mortgages Loan Sizes $200,000-$50 Million

CANADA’S #1 MORTGAGE NETWORK WITH 37 CMP AWARD NOMINATIONS!

VERICO Canada

VERICO Financial Group Inc.

* Best Advertising * Best Branding * Employer of Choice * National Broker Network of The Year

Setting

THE STANDARD! ®

CONGRATULATIONS TO ALL VERICO FINALISTS! Amy Wilson

Chris Doughty

Cindy Faulkner

* Best Newcomer: Individual

* Commercial Mortgage Broker of The Year

* Mortgage Broker of The Year: Fewer Than 25 Employees

VERICO Brokers For Life

VERICO The Mortgage Wellness Group

VERICO Coastal Mortgages

Dan Mass

Don MacVicar

Geoff Parkin

* Mortgage Broker of The Year: Fewer Than 25 Employees

* Mortgage Broker of The Year: More Than 25 Employees

* Best Community Service Effort

VERICO Canada First Mortgage

VERICO Premiere Mortgage Centre

VERICO Select Mortgage Corp

Gordon Hone

Graeme Moss

Jackie Bowen

* Alternative Lending Broker of The Year

* Alternative Lending Broker of The Year

* Best Newcomer: Individual

VERICO Armada Mortgage Corporation

VERICO Fair Mortgage Solutions

VERICO Primex Mortgages

Jessi Johnson

Julie Angstadt

Karen Gibbard

* Best Internet Presence * Mortgage Broker of The Year: Fewer Than 25 Employees

* Best Newcomer: Individual

* Mortgage Broker of The Year: Fewer Than 25 Employees

VERICO Jessi Johnson Mortgage Team

VERICO Bob Hanscom Mortgage Agency

VERICO Gibbard Hoffart Financial Group

Kevin Stones

Luisa Hough

Rita Matthews

* Commercial Mortgage Broker of The Year

* Mortgage Broker of The Year: Fewer Than 25 Employees

* Mortgage Broker of The Year: Fewer Than 25 Employees

VERICO The Mortgage Wellness Group

VERICO Exclusive Mortgage Professionals Ltd

VERICO Bob Hanscom Mortgage Agency

Scott Dawson

Sean McCormick

Trish Pigott

* Best Internet Presence

* Alternative Lending Broker of The Year

* Mortgage Broker of The Year: Fewer Than 25 Employees

VERICO Paragon Mortgage Group

VERICO Capital Mortgages

VERICO Primex Mortgages Inc.

VERICO Boomerang Financial

VERICO Canada First Mortgage

VERICO Clear Trust Mortgages

VERICO Coastal Mortgages

VERICO JESSI JOHNSON MORTGAGE TEAM

VERICO Primex Mortgages Inc.

VERICO CML Canadian Mortgage Lender Inc.

VERICO Gibbard Hoffart Financial Group

* Best Branding

* Best Customer Service from An Individual Office * Mortgage Brokerage of The Year: Fewer Than 25 Employees

VERICO Tom Brothers Financial * Best Newcomer: Mortgage Brokerage Firm

* Mortgage Brokerage of The Year: Fewer Than 25 Employees

* Best Newcomer: Mortgage Brokerage Firm

* Best Newcomer: Mortgage Brokerage Firm

* Best Customer Service from An Individual Office * Best Branding * Best Newcomer: Mortgage Brokerage Firm * Mortgage Brokerage of The Year: Fewer Than 25 Employees

* Mortgage Brokerage of The Year: More Than 25 Employees

* Mortgage Brokerage of The Year: Fewer Than 25 Employees

VERICO One Link Mortgage

* Mortgage Brokerage of The Year: More Than 25 Employees

AND CONGRATULATIONS TO ALL CMP AWARD FINALISTS!

CANADIAN MORTGAGE AWARDS

JOIN US TODAY! WWW.VERICO.CA/WELCOME

Scan the QR code to Learn More

FINALIST 2012

The Carlu, Toronto June 1st, 2012 WWW.CANADIANMORTGAGEAWARDS.COM

News / analysis

Mortgage red tape What would tighter mortgage rules mean?

The latest report from CAAMP contends that the housing and mortgage sectors are important engines for economic growth and any artificial constraints could produce a housing market downturn stats

A new report by CAAMP Chief Economist Will Dunning is bringing that point home.

It identifies all the way that the Canadian housing sector is a significant economic driver.

Housing and mortgage activities, along, “could account for more than 1.35 million direct and indirect jobs (about eight per cent of total Canadian employment,” writes Dunning. “The housing and mortgage industry has been particularly important to job creation these past five years.”

The report estimates that from 2006 to 2011, 18 per cent of all job creation occurred as a direct and indirect result of growth in the housing and mortgage sector.

The report also stresses the soundness of that growth.

1.1%

– decrease in mortgage interest cost for November (2011) after falling 1.3% the month before Source: StatsCan

“The Canadian housing economy is safe and stable,” writes Dunning, contrasting it to the U.S. sector.

At the peak of the U.S. housing boom, approximately 20 to 25 per cent of all U.S. housing sales were for investment purposes, says the report, but in contrast, “CAAMP estimates that two per cent to three per cent of Canadian home sales nationally are investment properties.”

Murphy has taken that message directly to finance committee members. The reception has been largely positive.

“We want to make sure key decisionmakers are aware of the importance of these issues,” he said, “and not take any measures that unnecessarily reduce housing activity thereby damaging the economy.”

Employment Impacts of Housing and Mortgage Activity

1.35 million Number of direct and indirect jobs attributed to housing and mortgage activities

18%

Percentage of job creation between 2006 and 2011 as a direct and indirect result of the housing and mortgage sector

$17 billion

Estimated additional economic activity between 2006 and 2011 created by rising home values or 1.2% of total GDP in Canada

Over 600 Million Lent since 1997

80% Member of CAAMP, AMBA, MBABC, BBB.

6.75%

OFFICES IN VANCOUVER, CALGARY, EDMONTON, TORONTO & ATLANTIC PROVINCES

Hugh Doggett 14 | mortgagebrokernews.ca

5.75%

905.299.6951

905 824.7095

hdoggett@capitaldirect.ca

News

News / comment InternatIonaL

& Viewpoint u.s.

90.6% 52.1%

inspectors have found problems; appraisals showed a home was worth less than the bid; a buyer lost a job before the closing.

U.S. housing market worse than thought More than two years after the recession The number of Americans who bought previously officially ended, many people can’t qualify for occupied homes rose in October. But the National loans or meet higher down payment Association of Realtors says it overstated more than requirements. Even those with excellent credit three million sales during and after the Great Recession, and stable jobs are holding off because they fear showing the housing market was weaker than Percentage of that home prices will keep falling. Sales are also previously thought. homeownership being hurt by a decline in first-time buyers, who The private trade group says sales rose four per TDFScosts, departure spells big loss for brokers including are critical to reviving the housing market. cent in October to a seasonally adjusted annual rate of mortgage payments, Sales have fallen in four of the five years 4.42 million. That’s below the roughly six million homes “It boom was awent niche area in the market opportunities utilitiesborrowing and property since the housing bust in 2006. a year that economists say are consistent with a healthy High-ratio taxes that take up a and no one else is doing therates line of have prices and record-low mortgage housing market. But it’s ahead of 2008’s revised sales, for B and so-called “C” clientsDeclining typical household’s value on B or C credit.” essentially disappeared with news haven’t been enough to boost sales. now considered the worst in 13 years. monthly pre-tax The trade group revised its sales from 2007 to 2010 Toronto Dominion will fold its At the same time, home construction has income in Vancouver begun a gradual comeback andoffered should add to the down 14 per cent, from more than 20.6 million to nearly non-prime The company up to 90 lending arm, a broker and Toronto, economy’s growth in 2011 for the fi rst year since 17.7 million. Among the reasons for the lower figures, per cent loan to value for clients “shocked” by the decision said. respectively (RBC the Great Recession began in 2007. Last month, the Realtors group says: changes in the way the Census with credit scores below 500.

Economics Housing builders broke ground on an annual rate of Bureau collects data, population shifts and some sales Comparable offers from leading TD Financing Services Home Inc. homes, Trends and 685,000 the government said recently. being counted twice.

Affordability Report) alternative players top out atand 85 per will stop accepting new applications That was a 9.3 per cent jump from October The Realtors consulted with government and cent, but more commonly run recent fastest pace since April 2010. private housing experts, including the Federal Reserve, from March 31, according to athe Most economists home will keep the Department of Housing and Urban Development, betweensay 75 and 80prices per cent. bank statement. falling, by at least five per cent, through 2012. the Mortgage Bankers Association, the National Many don’t foresee a rebound in prices Association of Home Builders, mortgage giants Fannie spokesperson Mohammed The move now leaves a hole in theforecastsTD until at least 2013.

Mae and Freddie Mac and CoreLogic, a California-based Nakhooda said the decision was lending landscape that other B lenders The high rate of foreclosures has made data firm that first raised doubts about the annual made after a regular review of aren’t likely to fill, charge brokers. resold homes cheaper than new ones. The the numbers earlier this year. company’s risk management policies. median price of a new home is roughly 30 per CoreLogic has estimated that the Realtors group “It’s going to get tougher,” said cent above the price of one that’s been occupied overstated sales in 2010 by at least 15 per cent. before – twice “Ultimately the normal markup.

The changing numbers could affect how economists Michael Marini, a mortgage agent it wasInvestors decided are it was taking advantage of thepart discounts. view the trade group’s data. It could also affect companies with Dominion Lending Centres not a core of our focus building market is strugglinghe even that use the figures for hiring and expansion plans. a franchise business,” told Funds, who frequently directed The housing as the broader economy has improved in Sales are measured when buyers close on homes. clients to the company. “TDFS had a MortgageBrokerNews.ca. “To remain recent months.

But many deals are collapsing before that point. competitive have required grew atwould an annual pace of two us One-third of Realtors said they had at least one contract whole different product line fromThe economy to increase our risk profile; Equity Trust and Home Trust. per cent in the July-September quarter. Many scuttled in October, up from 18 per cent in September. webetter concluded not economistssomething expect slightly growthwas in the Contracts are being cancelled for several reasons: October-December quarter.

Banks have declined mortgage applications; home within our riskCMP appetite.”

Each issue we select a story from MortgageBrokerNews that has got the industry talking and publish the best responses. This month – the departure of TDFS from the lending landscape

The story:

THE BEST APPRAISERS IN CANADA ARE CERTIFIED AND REGULATED BY

LOOK FOR THE PROFESSIONAL DESIGNATIONS

DAR & DAC

THE CANADIAN NATIONAL ASSOCIATION of REAL ESTATE APPRAISERS CALL 888-399-3366 or FIND AN APPRAISER at WWW.CNAREA.CA

28 16 | mortgagebrokernews.ca mortgagebrokernews.ca

Steve the Broker

This is no big loss to me or any of the hundreds of brokers that I know.

Who really used them? Private mortgage lenders can fill this void.

Lisa How can you say this is no loss? Even if you didn't use them, isn't it good to have choice and options available? It seems like whenever a lender pulls out of the market, people comment ‘no loss, I didn't use them anyway.’ Based on comments like that, it’s no wonder our industry has trouble growing market share.

Mike I think the majority of you are not seeing the trend happening here. The BoC along with mortgage insurers and schedule A lenders have a great fear of a decline in the real estate market. The fear is that there will be a loss in equity as a result of a decline in home prices. This is becoming a self-fulfilling prophecy. Lenders like TDFS leaving the market reduce competition, but also reduce the need for privates and alternative lenders to risk their money with high LTVs. This is simply one more adjustment that will lead to others making it tougher to put deals together, even in the private lender market.

Jim A.

TD and the other major banks are trying ways to ensure they keep their current customers with them – from offering better rates to taking away clients from brokers when the client is about to be renewed. I think as a mortgage broker then we must try to focus on the lenders that deal with the mortgage broker community exclusively. This way when the big banks see that we have a lot to offer them compared to their so-called mortgage specialists they will be more keen on ensuring we are taken care of by respecting our business and ensure the clients we refer to them are ours and not theirs.

Terry I have never placed a client into any of those seven or 10-year so-called rate specials, nor have I chosen any lender that pays anything more than the minimum commissions. And, it is simply because I care for my clients. I believe in quality, not quantity, because I also believe if you do your business on quality alone, it will bring in the quantity of clients from their referrals alone. Helping consumers is my passion and I become almost emotional when they feel everything sits well with them, knowing that I have taught them about credit and finally, closed the deal for them.

Bill Funny to see how little some "professional" mortgage specialists know about the industry and how to leverage the strengths of each lender.

The fact that TDFS is no longer originating business hurts many of us in the industry. TDFS helped me close a ton of extra business. Maybe instead of bashing a company that you know nothing about, you should be looking to gain knowledge and provide your clients with a truly invaluable service. For those who know the business, this is a sad day and my thoughts go out to the good people who may be without a job... good luck to you all.

Product / Round-UP

PRODUCT NEWS

A bite-sized guide to the industry’s newest products as they come out of the box Who: D + H What: Expert Mobile

•

The facts: Expert Mobile v1.0 Expert Mobile offers a subset of Expert functionality for Blackberry®, iPhone®, and Android™ mobile devices. Quickly create new prospect applications, view lender submissions and responses, use your recent applications list, search for existing applications and quickly contacts your customers via email or phone.

No new logins are required to use Expert Mobile. Access the site using the same login credentials (firm code, login id, and password) used for the desktop application.

What they say: We have just under 5,000 Expert users rolled out with Expert Mobile and all responses were positive, which tells us that (a) we made the right choice going down the mobile road, and (b) there is a market for these types of tools in the broker space.”

– Jerry Lo, senior director of broker services

Who: Merix Financial What: BFS and Rental Program The facts: Merix confirmed it will continue to offer both the Business-forSelf (alt-A) and Rental Program, with the following changes:

18 | mortgagebrokernews.ca

• • • • •

• • • •

Rental Program: For LTVs greater than 65 per cent to 80 per cent: Customer will now pay insurance premium. Insurance premium may be added to mortgage amount.

Rental interest rate premium to be reduced to 5 bps from 20 bps No changes to credit guidelines 40-year amortization available for LTVs less than 80 per cent Business for Self Program (Alt A): For LTVs greater than 65 per cent to 80 per cent: Customer will now pay insurance premium. Premium may be added to mortgage amount.

BFS interest rate premium to be reduced to 5 bps from 20 bps No changes to credit guidelines 40-year amortization available for LTVs less than 80 per cent Fully qualified business-for-self applicants with confirmable income will not require insurance or the rate premium.

Multiple insurers are available to Merix Originators and their clients. This allows for the flexibility to use multiple programs to find the best solution for the end consumer. Furthermore, the reduction in rate premiums almost neutralizes any cash flow impact from these changes. Under certain instances, monthly cash flow actually improves for some borrowers!

Speak to your DBD to examine these changes in detail.

What they say: “It was important to Merix to continue to offer those products – BFS and Rental – so originators can

continue to offer them to their clients. We don’t want to be known just for BFS and rental product, but want all of an originator’s business.”

– Jason Kay, VP of corporate development and sales

Who: Mortgage Alliance What: My First Mortgage The facts: My First Mortgage, offers customers a competitive rate and also includes: all the legal costs and title insurance, as well as home insurance coverage for six months and six months of creditor life insurance coverage. The new product will be offered exclusively through Mortgage Alliance brokers agents and is currently available to all Ontario residents with plans to roll out the brand nationally in the near future.

What they say: “We wanted to focus a product that will help grow our brokers’ business amongst our most important consumer group and that will appeal to our brokers’ Realtor partners.”

– Michael Beckette, president and CEO

LAUNCHING A NEW PRODUCT?

Want it to be considered for inclusion on this page, send the details to the editor: john. tenpenny@kmimedia.ca

COVER

News / appointments LENDERS ON BROKERS

The VERICO network has added two brokerages its stable –Vivid Mortgage Inc. in Vancouver and Ottawa Mortgage Advisors.

“We have three brokers now, including myself, and I hope “ to add another one or two this year and between another 10 to we strive to hire dedicated and service excellence50 brokers in the next five years,” says VERICO Vivid oriented senior underwriters thatMichael understand Mortgage owner/broker Sjerven. our broker partner’s business ”Michael Sjerven “I want my business to be recognized by both consumers and brokers as a reputable place to shop for a mortgage,” he says.

“I plan to use Internet and socialpartners media, paired traditional our value proposition for our broker whichwith clearly states methods such as regular and exceptional communication with our clients and database, using newsletters, underwriting and business development service standards. In addition, weand introduced phone calls thank youExpress cards.” 4.3 in January 2011, in partnership with D+H that enables brokers to have real time access to deal and condition statuses through Matt Daniels and ChristaExpert.

Tessier are the owners of VERICO Ottawa Mortgage Advisors and have over 20 years of Turnaround times experience in the industry.

Street understands that our broker partners have a client waiting for an approval and that we “Overimpact the lasttheir five years wetohave expanded from an office of directly ability look professional to their21 full-time agents and administrative three to currently having clients.

WeTessier. strive to hire staff,” says “We plan to continue our growth over the dedicated and with service next five years our focus being on quality training, Categories (in order of 2011 excellence-oriented senior importance) education and providing our agents with right tools to assist underwriters that understand with their success.

We also have plans to open additional our broker partner’s Turnaround times 3.96 locations across Ottawa surrounding areas. ” business. We believe we’ve built the right team to provide Underwriterowned supportand 3.93 a fast and personalized “Ottawa Mortgage Advisors is independently underwriting experience operated and it’s exciting tofor be a part of Network that stands Street broker behind us whilepartners. supporting our brandOverall and success,” service says Daniels.

3.99

ING Direct

CHANGE +/Tessier 2010 Christa

3.56

+0.40

3.55

+0.38

3.75

+0.24

Interest rates Capital the Financial Corporation announced the WeStreet understand competitive Interest Rates 3.76 4.54 -0.78 appointments of Chris Laing to the position of credit manager, pressures our broker partners and Nina Labate regional are facing.

We’veas strived to vice-president sales, Street Options Matt Daniels BDM support 3.93 4.25 -0.32 offer the best rates to our Program. broker partners balancing that with service excellence. We “Joining Street Capital is a terrific opportunity for me to be Product Range 3.65 4.25 -0.60 believe that by offering brokers involved in a new lending program from the ground up. I am rate specials on terms that excited to use my fullwith experience in alternative leading and to Satisfaction credit may be more suitable for a 3.89 community.”

3.50 +0.39 stay connected with the mortgage broker said policy client’s needs that we enable Laing. broker partners to grow their business.

Broker support 3.54 2.95 +0.59 Labate is an industry veteran with more than 20 years of mortgage experience in both the lender and broker segments IT/technology 3.40 2.87 +0.53 ING Direct and was the 2011 CMP Canadian Mortgage Award-winner for Kim NinaLuxton, Labate BDM. Transparency of Director, ING DIRECTBest Lender 4.26 4.00 +0.26 commission structure Broker Sales “I am thrilled to be a part of the dynamic team at Street Capital. Street’s strong focus 2011 has turned outservice to be is a critical on broker customer component to their ongoing OVERALL 3.83 success,” 3.28 says Labate. +0.55 another dynamic yeartoincontinuing the “I am looking forward that focus by partnering with mortgage brokers to mortgage help them industry. grow theirCanadian revenues through the alternative lending channel.”

News analysis / MULTIMEDIA

the topic

Broker outlook for 2012 Dan Balfour: “I see 2012 as being another excellent year. Interest rates have never been lower and that creates a huge opportunity for me and for my clients to take advantage of these all-time low rates. They can break their existing mortgages, refinance, pay off their debts, so there is a huge market brokers can go after. On the real estate side, because rates are so low, home-buying power has never been higher, so people who want to buy a home need to take advantage of it now because two or three years from now those rates are going to be much higher and they may not qualify anymore. It’s going to be another great year despite the doom and gloom south of the border and in Europe. There are problems, no question about it, but those problems actually translate into opportunities for us because of the interest rate climate being the way it is.”

Lisette Amalfi: “The last couple of years have posed challenges for us and our business, but I do think the public is becoming more aware of who we are and what we’re doing. I think we now have the opportunity to start looking at not just what we offer in comparison to, for example, the bank, we have start looking at what we offer as a value to our client base. And I think 2012 is going to really have mortgage brokers and mortgage agents looking at what value-add they too have other than a mortgage product to offer to consumers.”

Scott Ede: “From our perspective out in Calgary, what we’ve got in the marketplace right now is 20 | mortgagebrokernews.ca

The

Big Story Every week, MortgageBrokerNews.ca rounds up influential figures to discuss the major issues in the mortgage industry.

You can watch these videos online in the Broker News TV section of our website, but here we bring you the highlights from last month’s clips the banks fighting against us with interest rates and trying to do different things. Our challenge right now is the market is starting to change again. The toughest part is the interest rates and the fact that we’re beating each other up on a daily basis. What we have to do going forward is make sure that we’re telling the public what we do, making sure they understand what an AMP is, making sure we’re better than what the banks are doing, which isn’t very hard.”

Walter Monteiro: “One of the things we have to focus on is not being so interest rate-driven and focus on showing clients how they can eliminate debt as opposed to just managing it.”

Karen Monteiro: “We’re really focusing on education for our clients. We believe it’s not all about rate and the clients, that’s all they really know to talk about, they don’t know all the moving parts of a mortgage and what’s important and what can impact them at the end of the day. We’re also focusing on valueadded services where we are developing a benefits program for all of our clients that will give them across-the-board savings, anything to do with homeownership.”

News analysis / MULTIMEDIA

the topic

Potential amortization changes John Panagakos: “My opinion is that there are a lot of factors in play on banks and insurers from external sources and are not indicative of what is happening in Canada. We’re already seeing changes around rental properties, insured mortgages, stated income and self-employed. There is a lot of fear-mongering going on that’s not reflective of what is going on in the marketplace.”

David Smith: “What’s true is that the government is very concerned with the debt levels in Canada, yet they can’t raise rates for all kinds of reasons. So, what can you do but make it more and more difficult to qualify. Amortization is nothing compared to what they’ve instituted. There’s no doubt that it’s a challenge, but for those of us who have been around for a long time; we didn’t used to have stated income, we didn’t use to have new immigrant financing, we didn’t used to have all these vehicles and we still made a good living. In the long run, it’s going to be good for mortgage brokers because I think you’re going to see a lot of introduction of secondary private financing again and people are going to need us to come up with alternatives to what was formerly available in order to fund their clients.”

James Robinson: “Whether you have a 30-year mortgage or a 25-year mortgage, you borrow based on your monthly payment. If you lose your job or interest rates go up, the affect that’s going to have on your personal finances is not driven by the amortization, it’s driven by the monthly payment. If the government’s objective is to look after Canadians’ financial well-being, they need to take a look at consumer credit. I recently had a customer in my office who brought me his credit card statement that had a disclosure on it that said if he made his minimum payment every month it would be paid off in 121 years and 10 months. That’s not prudent lending and that needs to change. People need to be approved for consumer credit exactly the same way they are for mortgage credit.”

A new spirit in mortgage lending Dedicated to mortgage brokers at equity financial mortgage services we deliver a new level of responsiveness and common sense lending to the ontario mortgage broker community.

EquityFinancialTrust.com/Mortgage

Toll Free: 1.866.393.4891

TrusT. Leadership. performance. © 2012 equity financial Trust company

mortgagebrokernews.ca | 21

News / this time last year

This time Last year C M OR HE TG CK AG O EB UT T R OK HE ER NE W N EW S.C A

MARCH 2011, 6.3 www.mortgagebrokernews.ca

SPECIAL FEATURE COMMERCIAL MORTGAGES

MORTGAGE AWARDS 2011 A COMPLETE LISTING OF ALL YOUR FINALISTS

Equity Financial Trust now accepting deals from brokers Canada has a new entry in the mortgage lending field as Equity Financial Trust received final regulatory approval to become a deposit-taking institution and will immediately begin accepting applications for alternative residential mortgages.

“Deals have already started to flow in,” Equity Financial Trust CEO Nick Kyprianou told MortgageBrokerNews.ca. “We had spoken to brokers over the past four weeks, getting them signed up and we started contacting them to let them know we are now accepting deals.”

PROFILED DWIGHT BAKKEN: INSPIRATIONAL

PUBLICATIONS MAIL AGREEMENT #41261516

6.3_Cover.indd 1

3/17/11 3:17:13 PM

Kyprianou indicated that EFT has already signed up approximately 200 individual brokers. On the deposit side, he said that EFT has signed up two large securities dealers and that the company is doing “nominee business only.”

“We’re actually over-capitalized right now, so we don’t need to go to the deposit market for another month or two. Our target for year one is to do $100 million in closed business and we think we should achieve that goal.”

According to Kyprianou, ETF will concentrate on the Alt-A and B mortgage market, which they estimate makes up around 10 per cent of the total Canadian mortgage market.

“We’re looking at people that are being underserved by the big banks,” he said. “But the real estate must be marketable, that’s the foundation of the underwriting model.”

ONE YEAR LATER Equity Financial Trust has met and surpassed its goals for its first year in the industry, including turning a profit almost a year earlier than expected.

“We became profitable earlier than expected,” said Equity CEO Nick Kyprianou. “It wasn’t expected to show a profit until the third quarter of 2012 but it started showing in January. From starting from zero

22 | mortgagebrokernews.ca

mortgage presence, to setting and exceeding our targets I think we’ve done a fabulous job. We’re very happy with the startup.”

Kyprianou said a focus on its strengths has given the company an advantage over other lenders that concentrate on A business.

“We are exclusively alt-A and B, we’re not stepping into the A space at all in the long term,” said Kyprianou.

Clients who had already been declined by another lender were less focused on rates than approval, which was an opportunity for the company.

The company earned CMHC approval in May 2011 but had yet to make any CMHC-insured loans and had no current plans to move into that area.

“We’re looking down the road at building critical mass and see CMHC could be useful as a retention strategy to take that risk weighting off the balance sheet,” Said Kyprianou Equity currently works in southern Ontario but there were long-term plans for extension, including the possibility of moving into the Ottawa market later this year.

“We already have offices in Calgary, Vancouver and Montreal but we’re not doing mortgage business there yet,” said Kyprianou. “When we decide to launch in those areas, it will be easy because we have the infrastructure in place, we just have to hire the people.”

He reinforced Equity’s commitment to working exclusively with mortgage. The company is currently working with 150 to 200 brokers and was focusing on controlled growth.

“We’re not trying to grow too fast. We’re focused on operational excellence and on giving really good service.

We are getting the same brokers sending multiple deals to us, which is a good sign.

“We’re looking forward to growing and continuing to support brokers.” – Caitlin Nobes

Structuring deals that work for your clients.

We appreciate your time,value your partnership and would like to create The Broker Experience™ that builds on our top notch service model that guarantees a: • customized solution, • consistent and clear pricing and, • satisfaction of closing a deal.

Contact your RBM for more information.

ONTARIO/QUÉBEC T: 1.866.407.0004 F: 1.866.407.5859

www.equitabletrust.com

WESTERN CANADA T: 1.866.940.1201 F: 1.888.440.1201

FULL STEAM

AHEAD With a shift in the stated income lending space, suddenly private lenders are looking forward to a very busy year, and brokers that utilize their services will now be able to help more potential clients

COVER / Private Lending Boom

When news came from the Canada Mortgage and Housing Corporation in January that its $600-billion insurance liability cap was closer to being reached, you can be sure many lenders took note. Surely, it meant some tightening was bound to happen somewhere. hen, word got out that the Office of the Superintendent of Financial Institutions was worried about “liberal” lending to the self-employed and recent immigrants based on stated income, comparing these types of loans to “non-prime loans in the U.S. retail lending market,” as MortgageBrokerNews.ca reported.

Lenders such as FirstLine, TD and Street Capital exiting from the stated income space followed, and when that happened, private lenders’ eyes, as well as their phone lines, lit up.

Rather than telling stated-income clients that they were out of luck, brokers were reaching out to the private lenders in their networks. And for those brokers who had yet to deal with a private lender, it seemed like the opportune time to start.

James Pell

“From a private lender’s standpoint, I can’t help but be a little happy,” says James Pell, underwriting manager at Spectrum Canada Mortgages Services in Burnaby, B.C. It’s a sentiment echoed from private lenders across the country that CMP spoke with, but while it may point to a banner year for business, tighter regulations on stated-income employees — traditionally a quality client who truly understands the value of maintaining a strong beacon score — it was a mixed blessing.

“From an entire perspective, I am a little concerned,” added Pell, explaining that in the last five to eight years, big banks suffered from a “disconnect between risk and pricing. They were putting everybody at rock bottom prices.

What I’m afraid of now is a slight swing too far the other way, where they tighten up the money flow too much and it impacts the market as a whole.”

While he hopes a happy medium is reached, others are a little more frank.

“I don’t think they should be focused on mortgage change rules at all,” says Hali Strandlund, president of Fisgard Capital in Victoria. “We live in a country where there are entrepreneurial people and I don’t want to say they’re being penalized, but the focus shouldn’t be on them but on consumer credit.”

That said, she stresses that it’s also important to make clear that this only affects lenders that insure through CMHC. Lenders that self-insure or go through private insurers such as Genworth or Canada Guaranty won’t necessarily be leaving the BFS space.

26 | mortgagebrokernews.ca

Hali Strandlund

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada. With $1 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $2M to $60M.

Blake Cassidy 800 494 0389 | romspen.com

$35,000,000

Condominium Construction Facility VICTORIA, BC $11,000,000

Condominium Development Site TORONTO, ON $7,500,000

19 Serviced Industrial Lots EDMONTON, AB

LOOKING FOR A BANK THAT SHARES YOUR CREATIVE VISION. GOOD LUCK WITH THAT. License # 10172

COVER / Private Lending Boom

Generally, the tighter the banks and credit unions are on their credit, the more opportunity there is for the professional private lender Dale Koeller, vicepresident of business development at Calvert Home Mortgage in Calgary, thinks that while it may be good for private business in the short term, he has “more fears that it could hurt our business in the long term because of real estate values and the Dale Koeller economy,” especially for BFS Canadians and people like pensioners who rely on their home equity. “If you’ve used your home as leverage to run your business, you might find yourself under water. It could have a tailspin effect,” he says.

That said, he’s not surprised because it is “the one lever the government has to fight the concern about Canadian debt.”

Brian Moskowitz

28 | mortgagebrokernews.ca

“CMHC is still working within its mandate,” agrees Adam Korbin, president of Instafund Financial Services in Vancouver.

Besides, “banks are keeping a close eye on their books and many have seen a big increase in BFS and new immigrants. It’s good that the banks are keeping within the

limits of their portfolios.”

Regardless of whether the growing concern over stated-income borrowers is justified or not, there’s one thing that is for certain: it will be a busy year for private lenders, and brokers that utilize their services will find themselves more able to help a larger portion of clients.

To be exact, 15.6 per cent of employed Canadians (2.63 million people) are identified as self-employed in the first quarter of 2011, the most recent period that Stats Canada has data for.

And if there is any misconception that BFS clients are riskier than first-time buyers, for instance, Strandlund is quick to shut it down. “We love the entrepreneurs,” she says, referring to them as Fisgard’s bread and butter.

“They treat a loan like a business. Instead of getting an NFS, they’re the first ones to call and say, ‘Hey, can you hold that cheque?’”

Where the government and some lenders see stated-income clients as higher risk, private lenders see an opportunity.

“Generally, the tighter the banks and credit unions are on their credit, the more opportunity there is for the professional private lender,” says Brian Moskowitz, president of Moskowitz Capital Management in Toronto, adding that BFS clients probably account for 50 per cent of his business already. “We’re filling the gap,” he says.

And while it’s too soon to report facts and figures of actual growth, most private lenders can definitely feel things are starting to get busy already.

Fisgard, for example, had to bring in an extra mortgage administrator from another part of the office to help with the increase in inquiries. At Spectrum, Pall is “seeing deals today that I wouldn’t have seen three or four months ago,” he says. “Ones that are surprisingly clean, too, so I’m surprised they wouldn’t have been picked up by an alternate lender or bank. And it’s not the odd deal here and there that just happened to fall through the cracks. It’s a noticeable amount.”

PREPARING THE DEAL, AND THE CLIENT With so many self-employed Canadians out there, even a broker who only focuses on first-time buyers is bound to see such a client come across their desk. In cases like that, it would be wise to bone up on what it takes to deal with a stated-income client, as well as working with a private lender.

“When income is no longer the main

Adam Korbin

News

aPPoIntments

We care about you, to give you the very best!

• 100% finder fees & 100% volume bonus paid to you • Virtual office on RmaNet.ca • Centralized Placement Unit gives you access to status & lenders

criteria for qualifying a client, brokers must educate themselves about the private market and learn where to get the best financing available for their clients,” says Instafund’s Korbin.

appointments

One way is to check the private lending tab on D+H Expert or to visit provincial regulators and broker that association websites. AnotherMortgage way is toIntelligence simply callannounced a Steve Heimbecker, Marg broker that already deals in the private space and askGreen, for Donna Ramsay and Concierge a reference to a dependable lender.

• Dividend-paying share ownership in Real Mortgage Associates Inc. • Annuity paying share ownership in RMA Properties Ltd Own shares in RMA that pay annual dividends and own shares in a commercial real estate portfolio with a target value of $10 million.

Mortgage Group are joining the company.

“Brokers have to look under some rocks to find outRamsay in Green in Mississauga, who the privates are in their area,” says Koeller.

Orangeville and Heimbecker in Waterloo, are equal owners in Concierge But the best way, adds Moskowitz, isMortgage to get outGroup. of the Concierge is aanew boutique office and put in some footwork.

“If I was mortgage brokerage firm that will focus on broker,” he says, “I would go to the different lenders and elite and experienced brokers, meet them, show myself, showoffering that I’m capable of exceptional needs-based assembling a professional package.” customer service. The goal is for Concierge Mortgage Group to have officesto, throughout Ontario.is From all the lenders CMP spoke the impression will operate as a that they always have time to pickConcierge up the phone or meet network partner with Mortgage face-to-face to answer questions.

Intelligence, developing its own brand while taking advantage of “Just ask, ‘can we meet you?’ ” says Moskowitz.

Mortgage Intelligence’s key “Absolutely. We’ll even go to their officelike and meet them. resources compliance, payroll, In the past, if someone shows exclusive initiativemortgage we’ve even products, andfor marketing. provided joint-marketing money them to advertise “Mortgage Intelligence offers the funds. The good brokers are proactive.” us competitive compensation and the support that Concierge Strandlund adds that picking up the phone should be needs to be successful,” the first thing a broker does if said theirHeimbecker. client is declined

from another lender. “If they get a decline from an institutional lender they need to give us a call right Mortgage away. We can quickly tell themTMG theThe scenario,” sheGroup says. is moving

l a e Ownership that makes R sense.

>

three of its regional leaders up the

As for actually dealing withcorporate a privateladder, lender,billing therethe move as in keeping with its philosophy of are some notable differences, particularly where there is promoting from within. Effective plenty of equity involved. In fact, brokers mayJorgenson even find Jan.1, 2012, Bud the parameters more flexible, assumed says Koeller.

“But where the position of VP for the there is less equity, it might bePrairie more difficult.”

Region; Gord Appel, VP, Alberta Region; and Gerald Krahn, Region.

Private lending, after all, isOntario not insured, so “These “by thatthree have already positive virtue there is more risk, and there is made a definite riskchanges in their respective regions,” said Mark threshold,” he says.

Kerzner, president of TMG. “Their dedication to TMG agents and MostTop: privates will have twobrokers criteriaisthey to for the Steve Heimbecker very need important Marg Green meet: IsMiddle: it Middle: secure, and can mortgage payments be made?

Donna Ramsay company’s long-term success. They Middle: Gordtwo Appel are a great the TMG And answering these questions takesasset moretothan just Bottom: Gerald Krahn family.” CMP the previous year’s notice of assessment.

Call Ron De Silva at 877-677-7778 ext: 5 for more information

www.rmabroker.ca

COVER / Private Lending Boom

So perhaps before a broker picks up the phone, there are a few things to consider.

While the tightening of lending to borrowers who rely on stated-income is sure to serve as a boon to private lending business in 2012, CMP asked what other sorts of market influences will have a great impact as well.

REGULATIONS

“The biggest issue on the horizon is tightening securities regulations,” says Dale Koeller, vice-president of business development at Calvert Home Mortgage in Calgary, referring to the fact that some provinces require mortgages to be regulated like securities. Compliance, he says, was a big cost and meant four or five securities courses, not to mention loss of business opportunities.

“Most private lenders can’t exist without a higher level of scrutiny and this is driving up the cost of existence,” he says, adding that he’s met some private lenders that didn’t even realize they had to comply.

Not only will this reduce newcomers to the market, he says, but “because the barrier to entry is higher, we may even see some lenders leave the market because the costs are so much higher.”

COOLING OFF

It’s no mystery that the government has hinted it wants to cool the real estate market, which worries James Pell, underwriting manager at Spectrum Canada Mortgage Services in Burnaby, B.C. “I try not to be a soothsayer, but I think when the government does decide to cool the market, it will have an impact on private lenders, especially the ones that are being aggressive on LTVs, which he based on a very strong market.”

30 | mortgagebrokernews.ca

“One of the most important things is to have an absolute complete and comprehensive understanding of their client,” says Moskowitz, stressing that accuracy of information is critical.

Another thing is prepping the clients’ expectations, as most privates lend for up to a period of two years, have a lower LTV and rates tend to be higher (sometimes as low as 6 per cent, but also as high as 12 per cent and above).

“Some people are not always prepared to pay the premium,” says Spectrum’s Pell. “They are going from four to five per cent to getting quoted six to seven per cent in lender fees. I wish I could quote lower but we’re a private lender and the brokers should have warmed them up to this ahead of time.”

He also says that brokers don’t realize many privates are using the older two-lawyer system, and knowing small subtleties like that can help brokers be prepared for what to expect.

Another big difference when dealing with privates is their ability to think outside the box, especially when it comes to getting borrowers the LTV they need.

At Fisgard, it can be a little more complicated when LTVs get over 75 per cent, but it’s something Strandlund says they can help with by finding a smaller second, which could still be less expensive than having a client do one big refinance.

And if a broker is having a hard time explaining to clients how paying a higher rate on a second mortgage can actually save money, private lenders are more than willing to help.

“We can provide tips on how to deal with clients, how to sell it,” says Pell.

“Even though the rate may see high, when you look at long-term options it can be a benefit if the broker knows how to approach it. Compare this rate to credit card debt, for instance, and you’ll quickly see what the client will be saving.”

While working with a private lender takes more than just gathering and submitting, establishing relationships now will help business flowing, even when institutional lending gets tighter.

They are going from four to five per cent to getting quoted six to seven per cent in lender fees.

The planning started literally the week after last year’s Canadian Mortgage Awards, and the time has finally come to announce the finalists for 2012 ith thousands of nominations, this year’s Canadian Mortgage Awards, presented by Home Trust, are sure to produce the best of the best of Canada’s mortgage industry.

Brokers, brokerages, networks, lenders, underwriters and BDMs will battle for supremacy in 21 categories, including the National Bank Lifetime Achievement Award, which won’t be announced until the big night.

In terms of nominations, VERICO leads the pack with a total of 37, followed by Dominion Lending Centres with 22 and Mortgage Architects with 12. For the lenders, Street Capital Financial and Merix Financial with eight nominations each, closely followed by First National with seven. Home Trust Company received five nominations.

All of the categories will be awarded based on the judges’ deliberations, which is why it was important for us to ensure this year that only industry members were asked to participate. Obviously this creates a chance for any conflicts of interest to arise, so in these instances where a direct conflict does exist (i.e. a member of their own company is a finalist) they will not be voting in that category.

New this year, KMI Publishing and Events, which

produces the Canadian Mortgage Awards is proud to announce that PwC has been named as the event’s official auditor.

“As the nomination, finalist, and judging process grows in size and complexity we felt it was important to bring in a third party to verify the process and validate the results of this process,” says Chris Davis, events manager for KMI Publishing.

Which brings us to the judges, a group of esteemed professionals from all aspects of the industry who we are confident will use their good judgement to make the best choices.

They are: Hali Strandlund, President of Fisgard Capital Corporation; Rick Lunny, Managing Principal at Melrose Management Group; Dale Koeller, Senior Underwriter at Calvert Home Mortgage Investment Corporation; Fiona Campbell, a professional with over 20 years’ experience in the industry; and Suzanne LeValley, President, National Board of Directors at the Real Estate Institute of Canada (REIC). Again this year, Deepak Pershad, a marketing professional, with more than 30 years of experience, including many in the financial services industry will be serving as a judge for the Best Branding, Best Advertising and Best Internet Presence categories.

Canadian Mortgage Awards

And the nominees are ‌ D + H National Broker Network of the Year

Centum Financial Group Dominion Lending Centres INVIS-Mortgage Intelligence Mortgage Architects TMG The Mortgage Group VERICO Canada

Home Trust Mortgage Brokerage of the Year

Dominion Lending Centres Forest City Funding, London, Ont. Dominion Lending Centres The Mortgage Source, Ottawa, Ont. Mortgage Alliance S&R Mortgage Group, Calgary, Alta.

Mortgage Architects Sherwood Mortgage Group, Toronto, Ont. VERICO CML Canadian Mortgage Lender Inc., Calgary, Alta.

VERICO One Link Mortgage, Winnipeg, Man.

25 employees or more

ING DIRECT Mortgage Brokerage of the Year fewer than 25 employees

Bridgewater Bank Mortgage Broker of the year 25 employees or more

Avenue Mortgage, Winnipeg, Man. Dominion Lending Centres Homestead Financial, Waterdown, Ont. Dominion Lending Centres West Coast Mortgages, Coquitlam, B.C. Mortgage Intelligence, Regina, Sask.

VERICO Jessi Johnson Mortgage Team, South Surrey, B.C. VERICO Canada First Mortgage, Calgary, Alta.

VERICO Coastal Mortgages, Surrey, B.C. VERICO Gibbard Hoffart Financial Group, Vancouver, B.C. Anthony Contento, Mortgage Architects Sherwood Mortgage Group, Toronto, Ont. Bill Handsaeme, Dominion Lending Centres, Forest City Funding, London, Ont. Bill Nugent, Neighbourhood Dominion Lending Centres, Newmarket, Ont. Collin Bruce, Dominion Lending Centres Mortgage Mentors, Edmonton, Alta.

Don MacVicar, VERICO, Premiere Mortgage Centre, Mississauga, Ont. Jim Black, Dominion Lending Centres Mortgage Excellence, Lethbridge, Alta.

Scott Ede, Mortgage Alliance S&R Mortgage Group, Calgary, Alta.

Zamir Kassam, TMG The Mortgage Group, Vancouver, B.C.

The 2012 CMP Canadian Mortgage Awards Date: June 1, 2012 Venue: The Carlu, Toronto, Ont. Number of Awards: 21 Dress: Black tie Service: Four-course gourmet dinner and unlimited bar Table bookings: $2,800 for table of 10 or $312 per person.

Theme: The Roaring 20s For more details go to CanadianMortgageAwards.com

Here’s a team you should be part of Aamir Jamil, Abdul Jamal, Abdul Qaisar, Adarsh Lakhanpal, Adnan Qureshi, Adolfo Garces, Afshan Kamran, Afshin Nojaba, Afsoon Asgari, Ahmed Khan, Airat Omilabu, Ajith Hewapathirana, Ajmer Bains, Al Kassam, Alan Gordon, Alan Troyb, Albert Eldarov, Albina Colombano, Alec Villeneuve,

Our $100 Million Club

Aleksandra Gambelic, Alex Rodde, Alex Poff, Alex Katsambrokos, Alex Wang, Alexander Kardaras, Alexandre Khrolenko, Ali Etemadi, Ali Roshannejad, Ali Alizadeh, Alia Chamberlain, Alicia Wallen, Alina Solomes, Alireza Salehi, Alisha Shums, Allan Bowerman, Allan K. Chan, Allyson Bingham, Alpesh Kapadia, Alycia Kruse, Amandeep Poonia, Amandeep Mann, Amarjit A. Singh, Ameer Sha�i, Americo Santos, Amin Haji, Amir Nikzad, Amir Cheema, Amir-Reza Ghanadi, Amit Dhankhar, Amrik Gidda, Amrik Sidhu, Amy An, Ana Liza Dematera, Ananda Parthasarathy, Andrea Small, Andrea Rainbow, Andrew Rainbow, Andrew Reefer, Andrew Kempton, Andrew Ffrench, Andrew Persaud, Angela Epp, Angelo Cundari, Anil Sandal, Anish Khanna, Ankit Koacher, Anko Berghuis, Anna Panno, Anna Rainbow, Anna Oplocki, Annabelle Hatton, Annette Nunno, Annie Wong, Anthony Harte,

Antonino Galletta, Antonio Ruccia, April Dunn, Arash Doulatshahi, Archibald David, Arica Bryan, Arif Mian, Aristo Ariyaratnam, Arjumand Shahid, Arkadi Mikhalenia, Arlene Wynn, Armen Keshishian, Armenia Arjmand, Art Jimenez, Arthur Chester, Arti Shukla, Aruketty Ranganathan, Arulneswaran Chelliah, Arulrasa Nadarasa, Arun Jamasi, Arun Jain, Arun Bala, Asfand Malik, Asha Williams, Ashok Tewary, Ashok Rathod, Ashraf Koya, Ashwani Chand, Asif Ahmed, Asim Uqaili, Asma Shums, Asmeret Tedla, Atiya Fazalbhoy, Audie Odrigo, Audley Rainford, Avneet Mujral, Avtar Randhawa, Avtar Uppal, Ayyaz Shums, Azam Ali, Babak Zavalat, Babu Pirati, Bageerathy Paramasivam, Balbir Babra, Baldev Gill, Baljinder Sara, Baljinder Sekhon, Balraj Sharma, Balwinder Sran, Barbara Korcyl, Barnabas Khan, Barry Vincent, Baskaran Paramanathan, Behrooz Givehchi, Beren

Yousef, Bernard Leung, Bernard Georget, Betty Yee, Betty Szafraniec, Beverly Sadler, Beverly Bay, Beverly Chalk, Bhupinder Bajwa, Bhupinder Wahid, Bhupinder Waraich, Bijan Khatambakhsh, Bill Rogers, Bill Rainbow, Bill Cooke, Bin Li, Birgit Vaskina, Blair Alexis, Blair Pucely, Blossom

McCormack, Bob Lau, Bob Quinlan, Bob Zamani, Bob Bonham, Bogdan Muzychka, Bonnie Dagher, Brad Zavisha, Brad Frend, Bradley Levang, Bradley Rice, Brandon Grant, Brenda MacKay, Brenda Cameron, Brenda Dilley, Brenda Auger, Brenda Lee-Owe, Brennan Wood, Brett Nodwell, Bruce Zagrodney, Bryan Burick, Bryan Jones, Bushra Rajput, Cam McNaughton, Cameron Young, Candice Almog, Carlie Dagenais, Carlos Araujo, Carlos Unas, Carly Duduman, Carol King, Carole Sullivan, Caroline Jing, Carolyn Carter, Carolyn Ellis, Carrie Ko, Carrie Maxwell, Catherine Babcock, Cathie

Orfali, Cathy Gingras, Cathy Ducker, Cesar Ramos, Chad McKean, Chady Eldali, Chan Yin, Chandra Sharma, Chandrike Samarakone, Chanrith Yin, Charanjit Sharma, Charles Tsang, Charles Ekunwe, Cheryl Dammann-Kalyn, Cheryl Endersby, Cheryl Butler, Chris Alain, Chris Christodoulou, Chris

“The Industry Leaders”

Tsiantis, Chris Billings, Chris Stewart, Chris Kolednik, Chris Adams, Chris Gurr, Christian Lepsa, Christina Steplock, Christina Horvath, Christina Cable, Christine DuBois, Christine Bilan, Christopher Son, Christopher Dunn, Christopher Porter, Ciceal Levy, Cindy Duncan, Claudette Mcleary, Claudia Nunno, Clyde Bryant, Colby Gedak, Colin Shea, Colin Reid, Connie Materno, Cornell De Guia, Craig Noftle, Craig Hanson, Cristian Tarta, Cynthia Xu, Cynthia Baker, Cynthia Bryce, Cynthia Bentley, Dale Changoo, Dale Dyer, Dan Tieu, Dan Spinu, Dan Balfour, Dan Macor, Dana Tirlui, Dana

Mason, Danelle Poitra, Danial Mohammad, Daniel Masin, Daniel Mazzone, Danielle Harris, Danny Tulshi, Darcy Zeller, Darilyn Turnbull, Darlene Hinton, Darnelda Siegers, Darren Randall, Darren McQueen, Darryl McMillan, Darryl Dyck, Dave Alberda, Dave Fernandes, Dave Johnson, Dave Pahl,

David McPherson, David Kendall, David Leong, David Chung, David Mckay, Davinder Powar, Davinder Singh, Dawit Teweldeberhan, Dawn Peter, Dean Hunter, Dean Artenosi, Debbie Thomas, Debobrata Dey, Debra Vance, Deena Al-Salman, Deepa Krishnan, Deepinder Dhillon, Delio Oliveira,

Denielle Bostock, Denis Gilbert, Denise Marks, Dennis Brough, Dennis Gouveia, Dennis Choo-Kim, Derek Lambie, Derek Lacey, Desiree Thane, Dhayalini Rajah, Diana Yehya, Diana Turcotte, Dianne Anderson, Dilbag Sandhu, Dilbagh Randhawa, Dillon Pinto, Dilys Anne Hagerman, Dinesh Anand,

Dinesh Kumar, Dino Nunno, Do Truong, Domenico Bartolacci, Dominic Luciano, Dominic Mastrocola, Don Wilkins, Don Nicolson, Donald Hudson, Donald Smiley, Donette Grant-Anderson, Donna Williams, Drew Wideman, Duane Smith, Duran Grant, Durga Adhikari, Duy Nguyen, Dwayne Mans�ield, Edith Ortiz-Cal, Eduarda Pita, Eduardo Amaya, Edward Balao, Edward Young, Edward Boateng, Eehab Taliani, Efat Baheri, Ejaz Chowdhury, Ekpreet Aneja, Eleanor Casson, Elena Pouzanova, Elena Luburic, Elena Reyes, Elham Ma�i, Elisabeth Martin, Elizabeth Ferreira, Elizabeth

Henriquez, Elizabeth Fazekas, Ellie Vaziri, Elvin Manrique, Emerson Symister, Emi Khajehnoori, Emily Pinheiro, Emmanuel Akinwumi, Ena Oberoi, Enza Braga, Eric Hammond, Eric Akbar, Eric Kumar Emmanuel, Erika Van Nus, Erin Lawson, Erin Chadwick, Estephan Al-Farkh, Esther O'Toole, Esther Flink, Etin Imasuen, Evan Brown, Evangelia Makriyianakis, Evgenia Tulchinski, Fady Nasralla, Faisal Shah, Faiza Bhaidani, Fardin Feizi, Farhad Razmyar, Faria Abbas, Fariba Jafari, Farzad Khorrami, Fasih Urrahman, Fawad Rabbani, Fazel Azeem, Fazila Feroze, Fidel Arrubio, Florence

Soliva, Flowan Meredith, Frances Seward, Francisco Cano, Frank Bancroft, Frank Bedard, Frank Silva, Frank Basso, Fred Amal�i, Gabriella Pereira, Gabrielle Grant, Gail Eling, Garth Blackman, Gary Singh, Gary Bockus, Gary August, Gaurav Sahdev, Geetha Thushyanthan, Geoff Green, Geoff

Chislett, George Hartsgrove, George Gonzales, Georgina Fernando-Scott, Gerard Jones, Gerry Orr, Gianfranco Locantore, Gina Balys, Gina Best, Ginger Schuyler, Giselle Murphy, Glen Taylor, Gobi Thayaparanithy, Godefrey Clarke, Goldie Kang, Goldy Mathur, Gopal Dadar, Gord Clarke, Gord Johnston, Gordon Prokopenko, Goulia Vertlib, Grace Petronaci, Grant Wickenberg, Greg Davey, Greg Henry, Greg Gullekson, Greg Peace, Greg Gilmour, Gregg Hart, Gretchen Casey, Griselda Guerra, Grzegorz Kolodziejczyk, Guerline Israel, Guillermo Rodriguez, Gurbakhshish Buttar, Gurdarshan Ahluwalia, Gurmeet Gohalwar, Gurpal Sohi, Gurpreet Thind, Gurwinder Bajwa, Hamid Parsa, Hamid Gholami, Hani Faraj, Harbir Batra, Harbir Bhatti, Harbrinder Atwal, Harcharan Bhullar, Harcharan Kaur, Harinder Aashat, Harinderpal Gill, Haritha Samarajeeva, Harjit Singh, Harman Gill,

Harpal Sandal, Harpreet Bains, Harry Virk, Harry Hodgson, Harry Nastamagos, Harvinder Kahlon, Harwinder Bal, Hassan Mohsini, Heather Reid, Heather West, Helen Norman, Hem Sawh, Henry Fajardo, Herman Kuang, Hong Chang, Hugh Ferguson, Iain Palmer, Ian Mah, Ianina Raguimov, Ilia Kazatchkov, Indra Michael Xavier, Intakhab Khan, Iqbal Janjua, Iqbal Mann, Iraj Afshar, Irene Aruta, Irina Lazareva, Irshadul Islam, Iryna Lazovik, Isaak Panagiotidis, Isabelle Bertrand, Ishma Alvi, Ivan Magera, Ivy Cruz, J.P. Morrissey, Jack Tian, Jackie Dufault, Jacqueline Aquino, Jacqueline

Frederick, Jagdeep Singh, Jagjit Singh, Jamaluddin Muhammad, James Weber, James Young, James Haigh, James Stephenson, James T. Chan, Jami Berger, Jamie Tang, Jamie Adams, Jamie Johnston, Jan Henry, Jane Chen, Janet Whittle, Janet Pereira, Janet Gilkes, Janice Hume, Janine MacLean,

Ali Etemadi, Bill Rainbow, Cindy Duncan, Diane Descoeurs, Geoff Chislett, Gina Best, Isabelle Paquette, Jean-Pierre St-Vincent, Jeff Reitzel, Katie McDowell, Maryam Saniei, Michel Durand, Michelle Beet, Mohan Dhillon, Murray Wood, Nera Emmanuel, Randy Cowling, Richard Anderson, Scott Ede, Shawn Olma, Suresh Paramalingam, Susan Cowling, Victor-Hugo Pereira, Zena Shekarabi

Jared Evans, Jas Dhaliwal, Jasbir Gaidhu, Jasbir Boparai, Jash Puniya, Jashwant Tekaram, Jason Gaukrodger, Jason Cattermole, Jason Ammar, Jason Collier, Jason Choi, Jaswant Mann, Jatinder Aujla, Jatinder Bedi, Jay Catlin, Jay Parekh, Jean Fleming, Jean Mann, Jean Paul Massamba, Jean-Paul

Guay, Jeff Balys, Jeff Zabel, Jeff Reitzel, Jeffrey Sindall, Jeffrey Stafford, Jelle Braaksma, Jennie Myers, Jennifer Huntley, Jennifer Belland, Jenny Hong, Jenny Ooi, Jerad Emmanuel, Jeramel Quincina, Jeremiah Panlilio, Jeremy Alexander, Jerry Best, Jianmin Chen, Jillian Pollard, Jim Reitzel, Jim

Cumberland, Ji-Yeon Hong, Joan Bruncke, Joan White, Joanne Pagliocca, Joanne Murphy, Joe Montefusco, Joe Magyar, Joe Singh, Joelene Hall, Joelle Roy Flynn, John Francis, John Daniele, John Murphy, John Finn, John Walsh, John Kanthasamy, John De Oliveira, John Langdon, Johnathon Bovin, Johnny Nunno, Jonathan Chan, Jordan Andrews, Jose Ramirez, Joseph Trun�io, Joseph Berros, Joseph Kang, Joseph Owusu-Boamah, Joseph Kanterjian, Joseph Scenna, Joshua Woollam, Josie Petruzzo, JPS Aulakh, Jude Gnanendran, Judith Virgo, Judy Schmitz, Julia Smirnova, Julia Bogatyreva, Kafeel Chaudhry, Kaiwan Irani, Kali McVeigh, Kalie Miller, Kalson Jang, Kamaljit Sandhu, Kamran Salimi, Kamran Etessam, Kandasamy Kiritharakuhan, Kandiah Kathirgamanathan, Kanwaljit Dhunna, Karanbir Gill, Karen Monteiro, Karen Cameron, Karen Thakur, Karim Premji, Kashmir Gill,

Kathy Leeb, Kathy Marziano, Katie McDowell, Kavinaa Sivalingam, Kay Kim, Keith Allan, Kelly Porter, Kelvin Ambedkar, Kemi Toriola, Ken Sutherland, Ken Marks, Ken Tam, Kendra Boutin, Kenneth Karlstedt, Kent Fox, Kent Brewer, Kevin Berry, Kevin Ferguson, Kevin Malaschuk, Kevin Lin, Kevin Le, Kevin Uong, Kevin Crigger, Kevin Jones, Khalil Bawari, Khalil Qazi, Khaza Chisty, Kian Kabir, Kianoosh Khajehnoori, Killan Hwang, Kim Grant, Kim Ann Dang, Kinderpal Sidhu, Kiranpal Khakh, Kirsty Hallwood, Komalpreet Sran, Krista Brian, Kristi Briltz, Kristin Scott, Kristy Sharma,

Krzysztof Szmyd, Kulbir Dhanju, Kuldip Singh, Kuljit Singh, Kulwant Dhaliwal, Kulwinder Gill, Kulwinder Virk, Kurt Gregory, Kwaku Gyetuah, Kyle Green, Kyung-Mook Kim, Lakhbir (Leena) Sohal, Lakhvinder Dhaliwal, Lakhwinder Sandhu, Lakhwinder Mander, Lanle Olukayode Ajayi, Lanny

McVeigh, Larry Rieger, Laura Thompson, Laura Wells, Laura Hughes, Lawrence Montgomery, Lawrence Hartigan, Lawrence George, Lawrence Rubin, Leah Armstrong, Leanne Ede, Leanne Shapkin, Leanne Binsell, Lee Sahatbakhsh, Lee Jenkins, Lee Brown, Lee Doyle, Leo Falkovsky, Lesley Mouck, Leslie Nielsen, Leslie Morrison, Leslie Penney, Li Li, Lian Tan, Lijoy Ulahannan, Lisa Insalaco, Lisa D'Avino, Lisa Manwaring, Lisette Amal�i, Liviti Clarke, Liza Terado, Lokanathan Sundaram, Lorraine Lambert, Lorrina Belluz, Lou Karmiris, Louis Mirabelli, Louis Lefebvre, Luma Yousif, Lynne Clegg, Madeleine Rodriguez, Maham Khamsei, Mahesh Bedi, Mahmood Akhtar, Mahmoud Hassan, Mahnaz Mahourvand, Mahnaz Javdan, Mahreen Najmi, Majid Seifollahi, Majid Nowroozian, Maksym Protskiv, Malkit Jhite, Mandeep Sangha, Mandy Sailland, Mandy Ardila, Mandy Smith, Manijeh Mellisefat, Manjit Singh, Manuel Dos Santos, Manuela Palermo, Manzeel Patel, Maqbool Nadeem, Marc Douglas, Marc Mahoney, Marcelle Tiqui, Marcello Tancredi, Marci Deane, Marco Gigante, Margaret Ledford, Margaret Corbett, Margot Bourque, Maria Demasi, Maria Villarin, Maria Manuel, Maria Jaramillo, Maria Troiani, Marianne Lepan, Marilyn Collison, Mario Panzini, Mark MacKinnon, Mark Avedesian, Mark Nysetvold, Mark Herman, Mark Buwalda, Marlen Silva, Marlon Yee, Martha Diaz, Martha Loranca, Martin Grif�ith, Mary Deleniana, Mary Omorogbe, Mary

Carandang, Mary Ann Guido, Marya Syed, Maryam Saniei, Mathan Markandu, Mathew Graham, Matt Dahmer, Maureen Houston, Maureen Spina, Maurice Kuo, May Sulit, MD Nazmul Haque, Meenu Saini, Megan Khani, Megan McLaughlin, Mehdi Noormohammadi, Mehran Alipour, Mehrdad Hajirvand, Melissa Beet, Meysam Soltani, Michael Gouchie, Michael Yasny, Michael Horne, Michael Nourishad, Michael Shamber, Michael Hylton, Michael Ross, Michael Bodo, Michael Mitchell, Michael Kloc, Michael Lord, Michael Iuorio, Michael O'Regan, Michael McCormick, Michael Krasner,

Michael Goss, Michel Durand, Michelle Mazzocchio, Michelle Beet, Mike Azimi, Mike McCalla, Mike Robinson, Mike Dawson, Mike Raghubar, Mike Murtha, Mike Moshkriz, Mike Waring, Mikhael Levin, Miranda Hoban, Mirza Baig, Mitchell DeCarvalho, Mohammad Kamran, Mohammad Qutub, Mohammad Hussain, Mohammad Ahmad, Mohammad Akbarzadeh, Mohammad Taj Raja, Mohammed Hossain, Mohan Poddar, Mohan Verdi, Mohan Dhillon, Mohinder Rai, Mohinder Pal Singh, Monica Jewer, Monique Amyot, Monny Abraham, Monty Dinally, Morshada Sharif, Muhammad

Ghumman, Muhammad Nawaz, Muhammad Javed, Muhammad H. Farooq, Mukesh Kakkar, Murray Wood, Murtaza Somani, Myles Mendes, Nadeem Ahmed, Nadine Walsh, Nahid Shafaat, Najeeb Sumrani, Nalindra Wijesundera, Nancy Adams, Nancy Ackert, Nancy Deol, Naomie Adey, Naresh

Shah, Narpinder Dhaliwal, Nasi Vaghef, Nasir Malik, Natalie Winsor, Natalija Stepanenko, Natasa Rakulj, Nathan Packianathan, Navin Katoch, Navjeet Begol, Navjot Padda, Nazanin Fartash, Neda Hosseini, Neil Bowman, Nera Emmanuel, Nesh Singh, Nick Dhaliwal, Nick Pavlov, Nicole Turcotte, Nicole Toy, Nicole George, Nicole Donylyk, Nidaa Damouni, Niki Cuthbert, Nina Nassirian, Nirmal Kapoor, Nisim Dudelzak, Noble Sahota, Noel Manucduc, Noemi Bumanglag, Noemia Mendonca, Nusrat Shah, Ogtay Askarov, Oleg Chinguirei, Olena Pichugina, Olga Levin, Oludare Ogunmola, Omid

Omidvar, Omid Valinasab, Oren Rozen, Orr Gomes, Osad Edokpayi, Owen Crampsie, Oxana Savenko, Paramanathy Suthahararajah, Paramjit Suri, Paramjit Athwal, Pardeep Joshi, Pari Manoochehri, Parisa Rahmani, Parminder Makkar, Parminder A. Sidhu, Parveen Sokhal, Parveen Kumar, Parvez Ahmed, Parvin Makhzani, Parvinder Singh, Patricia Porretta, Patrick Ireland, Patrick Cowie, Patrick Briscoe, Patrick Matthews, Paul Chappel, Paul Leslie, Paul Zombre, Paul Vymyslicky, Paul Lee, Paul Jackson, Paul Heiskanen, Paul Kundan, Paula Malgueiro, Paula Ferreira, Paula Brown, Paula

Sartipi, Paulette Frater, Pauline Pang, Pauline Wong, Pavel Farberov, Pawan Sharma, Pawan K. Sharma, Payam Ahangar, Peggy McLean, Peggy Chiang, Peter Mason, Peter Kritz, Peter Atawo, Peter Motem, Peter Tsang, Phil McDowell, Philip Sabetti, Philip Clinton Lee, Philippe Fonseca, Pirapa Sivalingam, Po Yuk Chan, Polina Gleb, Poonam Chauhan, Pragna Vashi, Pramod Chopra, Prashant Amin, Prathima Satishkumar, Praveen Bajaj, Preet Sidhu, Prem Khindri, Pritpal Singh, Priya Arumuga, Pushpinder Gill, Qaiser Rizvi, Quang Lam, Queenie Patalinghug, Quentin Code, Raana Sherwani, Rahul Kukreja, Rahul Bali, Raj Sekhon, Raj Kahlon, Raj Gupta, Rajanan Chandralingam, Rajeev Khurana, Rajendram Nandakumaar, Rajesh Parekh, Rajesh Tyagi, Rajinder Kaur, Rajiv Kapil, Rajneesh Aery, Rajpreet Toor, Rajvir Dahiya, Rajwant Gill, Rakesh Gupta, Ralph Shaw, Ram

Anandappa, Raman Saini, Ramandeep Atwal, Ramandeep Waraich, Ramesh Shanmugarajah, Ramin Asaadi, Ranbir Vinepal, Randy Cowling, Randy Chevrier, Ranjan Ramachandran, Rathees Paramalingam, Ravi Paramu, Ravikumar Kanagaratnam, Ray Raymond, Raymond Reid, Razieh

Salehi-Zamani, Reagan Burton, Regi Cort, Renuka Selvakumar, Rey Cuevas, Reza Moradi, Reza Soltani, Rezvan Katanforoush, Rhelda Baschuk, Richard Fleming, Richard Anderson, Richard Kennedy, Richard Balanoff, Rick Vaughan, Rita J. Amal�i Cruse, Robert Evans, Robert McKerral, Robert Charbonneau, Robert Decaire, Robert Allen, Robert Spagnuolo, Roberto Sosa, Roberto Arellano, Robin Akhtari, Robin MacDonald, Rocco Morra, Roderick Doris, Roger Grubb, Roger Winsor, Rohan Singh, Ron Zinger, Ronald Ephard, Rosanna Ho, Roshan Wignarajah, Roxy Acheson, Roy Houshmand, Roy Cleeves, Roya Seifollahi, Ruby Okoro, Ruby Dhunna, Ruby Javed, Rudy Denischuk, Rupert Ireland, Ruth Goldman, Ryan Sauve, Ryan Hon, Sabine Doherty, Saddique Khan, Saj Paleja, Salma Majeed, Sam Rahimi Fard, Sam Amid, Sam Lasby, Sam King, Sam Chaba, Samina Khan, Sandesh Kumar, Sandra O'Donohue, Sandra Ferreira, Sangeeta Airi, Sanjaya Peiris, Sanjeev Bhatti, Santosh Bains, Sarabjit Kaur, Sarah Park, Sarah Strauss, Sarah Beckerman, Sarah Rosser, Sarwan Kumar, Satyawan Grewal, Savanna Guo, Scott Smalley, Scott Wilcken, Scott Brennan, Scott Findlay,

Scott Ouellette, Scott MacLean, Scott Ede, Sean McDowell, Sean Syed, Sean Sullivan, Sean Morris, Sean Worthington, Sebastiano Spatola, Sebastien Ballin, Selvi Rajasekeran, Sepideh Makramati, Serena Lu, Serge Cabelguen, Serge Bogosyan, Sergio Vasques, Sergio Sabatini, Seyed Mirabedini,

Shadi Shahrestani, Shah Faisal, Shaheem Ali, Shahram Jalalizadeh, Shahram Soltanpour, Shaibal Dey, Shakeel Qazi, Shama Mandur, Shanmugampillai Selvakumaran, Shannon Fraser, Shannon Munro, Sharon Thompson, Sharuti Verma, Shaun Baptiste, Shawn Olma, Shawn Kumar, Shawn Matheny, Shawn Cabelguen, Sheika Francis, Shelley Black, Shelley Saint, Shelly Nicholson, Sherif Dawoud, Sherri Durnin, Sherry Donald, Sherry Hunley, Sherry Davis, Shila Khodadadshargh, Shilpi Pai, Shiraz Janmohamed, Shoaib Seathi, Shuja Meer, Simon Woo, Simona Bartosh, Socrates Henriquez,

Sonya Giambattista, Soongee Woo, Soumidh Mondal, Sritharan Nadarajasundram, Stacey Lunt, Stenson Arul, Stephanie Kirby, Stephen Lamptey, Steve Daigle, Steve Bryan, Steven Crawford, Steven Gilmour, Subaig Ghag, Subajini Jayadharman, Suganthini Saravanabavananthan, Sujata Sahgal, Sukhvinder Malhotra, Sukhwinder Singh, Sunil Uppal, Surajit Kanungo, Suresh Paramalingam, Suresh Shah, Surinder Paul, Surinder Parhar, Susan Cowling, Susan Anthony, Susy Foo, Suzanne Fedorink, Svetlana Kogan, Swarn Singh, Syed Abbas, Syeda Mansoor, Sylvester Nicholas, Tadek Kulisz,

Tahir Qureshi, Tammey Bayer, Tammy Pottie, Tannis Walters, Tanveer Rasheed, Tanya Rogalczyk, Tappinder Jhajj, Tara Gibson, Tariq Khatib, Tassadaq Qureshi, Tatiana Zehovoy, Ted Vergara, Ted Kang, Teresa Ferreira, Teresa Le, Teresa Borges, Terry Schug, Terry Janes, Tewolde Yohannes, Thakoordial Shivkumar, Theresa Hiltz, Tiara Falica, Timothy Smith, Tina Trama-Mayol, Tissa Ratnayake, Tom Konstantinidis, Tomasz Agacinski, Tomasz Pudlik, Tommy Vu, Tonia Power, Tony D'Avino, Tony Monteiro, Tou�ic Hassoun, Tracey Brown, Tracy Armstrong, Tracy Ouellette, Tracy

O'Brien, Travis Robichaud, Trevor Smith, Trevor Thomas, Tristan Kim, Twyla Procopio, Tyler Munro, Umer Wahid, Urszula Kudla, Utayan Ponnuthurai, Vanhxay Signothahack, Vanka Paterson, Varsha Sharma, Vasili Manolopoulos, Vaughn Daly, Vejai Omkar, Vera Zoryk, Vera Khomenko, Verle Sobrian-Carillo, Veronica Thompson, Vertille Lewis, Victor Freeman, Victor Chetcuti, Victoria Sia, Vijai Lingam, Vijay Aivalli, Vije Vijayakulasingam, Vijenthiran Vijayaratnam, Vikas Jain, Vikas Mahajan, Viktoria Speranska, Vince Vasco, Vincent Shank, Vinod Soni, Violeta Jacevic, Viraj Kapahi, Vishal Luthra, Vivien Lai, Viyalini Arulcodiventhen, Vladimir Rubanovski, Voltaire Depano, Wadie Ayad, Walter Monteiro, Wendi Bass, Wendy Goodsir, William Durfy, Wimal Navaratnam, Windy McCarty, Winston Williams, Wojciech Pianka, Wolfgang Frohlich, Won Kim, Yaniv Milman, Yelena Sitenko, Yitzchak Reznik, Yoganathan Sivagnanam, Yorley Manchola, Yousef Farzam-Kia, Yuri Rogovyi, Yvonne Dubois, Yvonne Brutus, Zahid Syed, Zahir Chowdhury, Zahirul Haque, Zahra Alavi, Zaina Esmail-Godinez, Zainatt Aslam, Zeina Chdid, Zena Shekarabi, Zubaidah Taliani,

Want to join the club?

www.mortgagealliance.com

Canadian Mortgage Awards Mortgage Broker of the Year fewer than 25 employees

Cindy Faulkner, VERICO Coastal Mortgages, Surrey, B.C. Dan Mass, VERICO Canada First Mortgage, Calgary, Alta.

Diana Zitko, Dominion Lending Centres West Coast Mortgages, Coquitlam, B.C. Jessi Johnson, VERICO Jessi Johnson Mortgage Team, South Surrey, B.C. Karen Gibbard, VERICO Gibbard Hoffart Financial Group, North Vancouver, B.C. Luisa Hough, VERICO Exclusive Mortgage Professionals Ltd., Surrey, B.C. Peter Majthenyi, Mortgage Architects, Toronto, Ont. Rita Matthews, VERICO Bob Hanscom Mortgage Agency, Edmonton, Alta.

Trish Pigott, VERICO Primex Mortgages, Coquitlam, B.C.

Best Commercial Broker of the Year

Wayne Barnes, TMG The Mortgage Group, Vancouver, B.C. Dale Bilton, Dominion Lending Centres, Commercial and Residential Mortgages. Ltd, Kitchener, Ont. Mike Chiu, Capital West Vancouver, B.C. Chris Doughty, VERICO The Mortgage Wellness Group, Barrie, Ont. Sandy Harington, IC Funding, London, Ont. Kevin Stones, VERICO The Mortgage Wellness Group, Barrie, Ont.

MCAP Alternative Broker of the Year

Andre L’Ecuyer, Neighbourhood Dominion Lending Centres, Petawawa, Ont. Craig Ferrier, Combined Mortgages, Edmonton, Alta.

Fred Testa, INVIS, Toronto, Ont. Gordon Hone, VERICO Armada Mortgage Corporation, Maple Ridge, B.C. Graeme Moss, VERICO Fair Mortgage Solutions, Hamilton, Ont. Jared Morrison, Alta West Mortgage, Calgary, Alta.

Nick Hamblin, Ideal Mortgage, Halifax, N.S.

MORTGAGE SOLUTIONS THAT ARE AS SMART FOR YOUR CLIENT AS THEY ARE FOR YOU

What’s in it for you? > A unique product portfolio including our award winning All-In-One Banking™. > Niche product lending allowing you to meet a variety of your client needs; including mortgage solutions for first time homebuyers, rental properties, new immigrants, non-residents and more 1. > An incentive program built on your feedback, including reward options such as: $2,0002 towards marketing, $15,0003 travel voucher towards a trip of lifetime, rate discounts up to 15 BPS, free appraisals, great cashback offers, and more!

Contact your local BDM or email mortgagebroker@nbc.ca

TM National Bank All-In-One is a trademark of National Bank of Canada. 1 Financing shall be subject to the credit approval by National Bank. 2 $2,000 marketing fee is a one-time reward for the first 65 deals or $20M funded in the fiscal year. 3 $15,000 trip paid for every 125 deals or $40M funded in the fiscal year. The fiscal year is from November 1, 2011 to October 31, 2012.

36 | mortgagebrokernews.ca

Wouldn’t it be nice?

ZERO monthly marketing fees Consider how much you’ve spent on marketing fees over the last year. Wouldn’t it be nice to use that money to build your personal brand?

Those fees could pay for our high-touch customer contact program for 30 deals every year, giving each client 45 touches over 5 years, which include premium magazines and gifts, thank you card, seasonal e-messages, timely and persuasive business solicitation letters.

Wouldn’t it be nice to market YOU, not just your company!

www.BoldResources.ca

Canadian Mortgage Awards Sean McCormick, VERICO Capital Mortgages, Stittsville, Ont. Stuart Pocock, TMG The Mortgage Group CMAC Mortgages, Calgary, Alta.

Genworth Best Newcomer - Individual

Julie Angstadt, VERICO Bob Hanscom Mortgage Agency, Lloydminster, Sask.

Jackie Bowen, VERICO Primex Mortgages, Coquitlam, B.C. Ron Lefebvre, INVIS, Edmonton, Alta.

Jeff Parsons, Dominion Lending Centres The Mortgage Shop, Windsor, NL Scott Rawkins, Dominion Lending Centres Total Mortgage and Leasing, West Vancouver, B.C. Amy Wilson, VERICO Brokers For Life, Edmonton, Alta.

Best Newcomer Mortgage Broker Firm

Dominion Lending Centres Canadian Mortgage Experts, Surrey, B.C. Mortgage Architects –Masters, Belleville, Ont. Quantus Mortgage Solutions, Calgary, Alta.

Syndicate Mortgages, Toronto, Ont. VERICO Clear Trust Mortgages, Vancouver, B.C. VERICO Jessi Johnson Mortgage Team, South Surrey, B.C. VERICO Primex Mortgage Inc., Coquitlam, B.C. VERICO Tom Brothers Financial, Markham, Ont.

CMHC Best Lender Underwriter

The Mortgage Centre Canada Best Lender BDM

Erin Anaemaet, Home Trust Company, Toronto, Ont. Paul Brown, First National Financial, Toronto, Ont. Jason Galea, AGF, Toronto, Ont. Michelle Gosal-Campbell, Merix Financial, Toronto, Ont. Becky Kim, Merix Financial, Vancouver, B.C. Ken Lee, Street Capital Financial, Toronto, Ont. Robert Sanita, First National Financial, Toronto, Ont. Jenna Sherrit, First National Financial, Vancouver, B.C. Janice Tinker, Radius Financial, Toronto, Ont. Silvana Vaccarella, Scotiabank, Hamilton, Ont. Stacey Willams, Merix Financial, Vancouver, B.C. Randy Binstock, Home Trust Company, Cambridge, Ont. Jim Fitzgerald, Radius Financial, Toronto, Ont. Trevor Gordon, ING DIRECT, Halifax, NS Rachelle Gregory-Marshall, Merix Financial, Toronto, Ont.

Attendees will have a roaring good time After bringing down the house in 2010, one of Canada’s top comedic talents, Jessica Holmes returns to host the 2012 Canadian Mortgage Awards, which will feature a Roarin’ 20s theme.

This year the CMAs is proud to present two musical acts; smooth & sultry jazz duo, iSPY will be playing the Radius Financial cocktail party; and The Jade Monkeys, one of Toronto’s best classic rock, soul, and R&B bands, boasting a line-up of some Toronto’s best studio musicians will be helping you dance the night away at the Merix Financial After Party Meet The Sugar Shakers, an all-girl 1920’s Charleston Flapper dance group who will mingle and perform throughout the evening, as well as Charlie Chaplin and other 1920s characters PLUS Star Awards winners, A2D2 will shock you with a surprise performance at the end of the night.

MEMBERS OF OUR DEDICATED TEAM At Canada Guaranty, our National Sales Team is dedicated to ensuring you receive the personalized service and support you need to find the right solutions for your clients.

As a valuable resource, with a wealth of industry experience, market knowledge and insight, each Account Executive is committed to helping you succeed.

Contact your regional Account Executive to learn more about the value-added solutions we offer, including:

YOU MAY RECOGNIZE: From left to right:

Darren Kirk, VP, Regional Sales Mike Klassen, Regional Director (Atlantic) Barbara Hale, Account Executive (AB) Sheldon Ford, Account Executive (ON) Maria Pimenta, Senior VP, Sales & Marketing Mary Putnam, VP, National Accounts

Mobile Tools

Casey Archibald, Account Executive (BC)

■

Continuing Education & Training

Selma Granger, Account Executive (ON)

■

The Homeownership Solutions Program

■

Our Comprehensive Product Suite

■

For more information, please visit canadaguaranty.ca or contact your dedicated Account Executive, today.

Canada Guaranty Mortgage Insurance Company 877.244.8422 I www.canadaguaranty.ca

Lisa Nikiforuk Bell, Account Executive (BC) Marco De Paolis, Account Executive (ON) Sabrina Smith, Account Executive (QC) Cathy Tucker, Account Executive (Prairies) Andy Charles, President & CEO

Canadian Mortgage Awards Chris Hoeppner, Street Capital Financial, Fraser Valley, B.C. Jamie Leamont, Merix Financial, Winnipeg, Man. Eden McNichol, First National Financial, Calgary, Alta.

Cheryl Murtagh, Street Capital Financial, Calgary, Alta.

Harry Singh, The Equitable Trust Company, Toronto, Ont. Cathy Tompkins, FirstLine Mortgages, Vancouver, B.C.

Strategic Information Technology Best Newcomer - Lender Underwriter

Jen Bean, Scotiabank, Edmonton, Alta.

Cam Bordignon, Merix Financial, Toronto, Ont. Nitin Grover, ING DIRECT, Toronto, Ont. Carol Maglione, The Equitable Trust Company, Toronto, Ont. Giselle Miranda, Street Capital Financial, Vancouver, B.C. Paul Onarati, Home Trust Company, Toronto, Ont. Michelle Wise, Paradigm Quest, Toronto, Ont.

Radius Financial Best Newcomer - Lender BDM

Mike Ayoub, Home Trust Company, Toronto, Ont. Paul Campbell, ICICI Bank, Toronto, Ont. Dario Carpino, Street Capital Financial, Toronto, Ont. Renee Dadswell, AGF, Toronto, Ont. Joe Flor, The Equitable Trust Company, Toronto, Ont. Cathy Godin, Home Trust Company, Calgary, Alta.

Jeff Hayashi, Merix Financial, Toronto, Ont. Tiffany Pedersen, Street Capital Financial, Toronto, Ont.

Best Internet Presence

Best Advertising

FNF Canada Best Branding

HomEquity Bank Employer of Choice

Canadian Mortgage Trends Dominion Lending Centres VERICO Jessi Johnson Mortgage Team Merix Financial Mortgage Architects VERICO Paragon Mortgage Group Centum Financial Group Dominion Lending Centres The Equitable Trust Company Mortgage Architects VERICO Canada Centum Financial Group Dominion Lending Centres INVIS-Mortgage Intelligence VERICO Jessi Johnson Mortgage Team Mortgage Architects Syndicate Mortgages TMG The Mortgage Group VERICO Boomerang Financial VERICO Canada Centum Financial Group Dominion Lending Centres First National Financial Fisgard Capital Corporation Pacific Mortgage Group Paradigm Quest Street Capital Financial VERICO Canada

Think reverse mortgages are expensive?

Think again!

With CHIP Home Income Plan’s new low rates, homeowners 55+ can now access up to 50% of their home equity at rates comparable to other home equity lending products.

But unlike these other products, with the CHIP solution: • no payments are required, until homeowners choose to move or sell • no income, credit or medical qualifications are needed • funds can be received as a lump sum or over time, giving your clients the flexibility they need

Why not tap into the potential of the growing seniors market and recommend CHIP? You’ll receive a referral fee, and we’ll look after all the paperwork for you.

To find out more, or to partner with CHIP, contact us:

1-866-536-2447 www.chipadvisor.ca

In addition, clients maintain ownership and control of their home.

CHIP Home Income Plan is provided by HomEquity Bank, a Schedule I Canadian Bank. HomEquity Bank is a wholly-owned subsidiary of HOMEQ Corporation, a TSX-listed company. TM Trademark of HomEquity Bank.

Canadian Mortgage Awards Merix Financial Best Customer Service Individual office

Best Community Service Effort

Invis Mortgage Intelligence Best Industry Service Provider

Averbach Mortgages TMG The Mortgage Group, Vancouver, B.C. Dominion Lending Centres West Coast Mortgages, Coquitlam, B.C. VERICO Jessi Johnson Mortgage Team, South Surrey, B.C. MortgageBrokers Alberta.com, Calgary, Alta.

VERICO Coastal Mortgages, Surrey, B.C.

Grant Mackenzie, Canadiana Financial, Toronto, Ont. Scott Ede, Mortgage Alliance S&R Mortgage Group, Calgary, Alta.

Brian Nason, Mortgage Architects, Hamilton, Ont. Geoff Parkin, VERICO Select Mortgage Corp., Surrey, B.C. Deb White, Dominion Lending Centres White House Mortgages, Vernon, B.C. Diana Zitko, Dominion Lending Centres West Coast Mortgages, Coquitlam, B.C. Superstar Mortgage Broker/Power of Choice Coaching Inc. First National Financial JOLT Marketing MCAP Service Corporation Paradigm Quest Strategic Information Technology Limited Street Capital Financial

Tough deals wearing you down?

Seeing more customers with challenging income and credit situations?

Having difficulty with “out-of-the-box” applications? n Frustrated with restrictive lending criteria? n Ready to expand your client base beyond the traditional borrower? n n

We are the home of Sensible Lending® and have mortgage options suitable for most borrowers. (TSX:CWB)

Serving brokers in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan.

866.441.3775 www.OptimumMortgage.ca

42 | mortgagebrokernews.ca

Questions? Comments? Deals?

Contact your regional business development manager or our underwriting centre at 866.441.3775

BROuGht tO yOu By

BROuGht 31st May – 1st June 2012, tO yOu By

The Carlu, Toronto

CMP IVE US ExCL353 ) $ 1 Y S MA (END

ST

DE: O CO PROMMPR C

BUSINESS CANADA’S ONLY INDEPENDENT LOPMENT OF THE EVENT COMMITTED TO THE DEVE INDUSTRY CANADIAN MORTGAGE BROKER

NETwORK & LEARN ABOUT

+ high level Look forward to hearing from 30 st informative speakers during some of the mo and interactive workshops!

s: A y Collateral Charge Mortgage and for – s panel of lenders and broker DA ONLINE need VIEw FULL CONFERENCE AGEN against – take up the issue and the et of THEMORTGAGESUMMIT.COM for broker education on every fac w. ww ted by those complicated deals. Presen an and orm Gordon McCallum, David O’G Grant MacKenzie. t Know y what’s Your VAP? If You Don Peter will You Survive?: Presented by Kinch Brokers y Bridging The Gap Between tum And Realtors: Presented by Cen Financial

EARN UP TO 8 AMP CE UNITS

Included in this exclusive event: • Access to 20+ Sessions • Networking Breakfast & coffee breaks • Networking luncheon & drinks receptions • Delegate lounge sponsored by Centum Financial Group

David O’Gorman President, MortgageLand Inc.

Gordon McCallum

Broker / President, First Foundation Residential Mortgage

Grant MacKenzie

CEO, Canadiana Financial

PLUS!

Let our dedicated event meeting tool Synced handle your schedule and book one on one meetings with other delegates

www.THEMORTGAGESUMMIT.COM Platinum Sponsor

Delegate Lounge Sponsor

Coffee Sponsor

Silver Sponsors

Bronze Sponsors

FEATURE / Lines of credit

In the latest feature from our sister magazine Canadian Real Estate Wealth, Peter Kinch explains that brokers working with investors looking for extra leverage to make their next investment must look at the nuances and differences offered to them in the form of lines of credit 44 | mortgagebrokernews.ca

FEATURE / Lines of credit

While the government worries over the ‘lifestyle subsidizer’, the broker and savvy real estate investor recognizes that this period of historically low rates creates a unique opportunity to leverage home equity into wealth-creating real estate investments. Brokers and investors understand that in order to purchase cash-flowing rental properties they will need to either come up with the down payment themselves or attempt to find a joint-venture partner.

The simplest and least expensive source of capital (outside of cash on hand) is home equity. As such, it is common for almost every investor to set up a line of credit on their home in addition to their mortgage as a way of converting home equity into increased net worth. But a lot of investors do not understand that not all lines of credit are created equally.

Two types There are two different types of lines of credit (LOC) in the Canadian mortgage market and it is critical for a savvy real estate investor to understand the difference.

One is a traditional ‘static LOC’ and the other is a ‘re-advanceable mortgage/LOC combination’. On the surface, the two may appear similar, but what makes them different is critical to an investor.

1

The Minister of Finance and the Governor of the Bank of Canada have both recently expressed concerns recently over the amount of household debt that Canadians have been carrying. Indeed, one of the predictable results of an economy in which interest rates are kept low for an extended period of time is that consumers will find it hard to resist the temptation of borrowing beyond their means. Although it is true that there is an increased trend among Canadians to access equity in their homes as if it were an ATM, it is important to point out that there are two very distinct differences between those who borrow to support lifestyle and those who leverage to increase wealth.

A static LOC is the LOC that most homeowners are familiar with and one that the majority of banks and lenders have been offering up for years. It is, quite simply, a line of credit that is placed behind the first mortgage. If a homeowner has more than 80 per cent of equity in their home they can apply to access that home equity (up to 80 per cent) in the form of a line of credit.

The challenge with a static LOC – also known as a home equity LOC or HELOC – is that it is static – meaning that if the amount of equity you have in your home were to increase over the course of the mortgage, the maximum amount of money that you would be able to draw out would remain the same, regardless of how much you may have reduced the original mortgage amount by.

Over the past few years the amount of Canadians who have taken out a line of credit on their home for anything from home improvements to vacations abroad has increased to the point that the government has raised a caution flag. And so far in 2012, there is no indication that the government will back down on its cautioning.

For example:

Brokers and their real estate investors, however, need to be aware of who the government is really targeting: the homeowner who is using their home equity as a means to subsidize their current lifestyle of consumption. The government should be concerned with these behaviours, but they should not be confused with the prudent investor who recognizes that utilizing home equity is an excellent way to increase net worth.

80 per cent of home value = $320,000

Home value = $400,000 Mortgage amount = $250,000

Amount of accessible home equity = $70,000

mortgagebrokernews.ca | 45

FEATURE / Lines of credit

In the preceeding example a HELOC can be arranged for $70,000. This in itself is a fairly straightforward transaction and one that the majority of Canadians undertake when arranging for a LOC. However, let’s assume that the homeowner in the above example took advantage of every pre-payment privilege available to him or her and also had excess cash available through employment bonuses or commissions. Let’s further assume that this homeowner was able to pre-pay as much as $50,000 over the next two years of their mortgage and were now at a point where they wanted to access some of the additional $50,000 in built-up equity to purchase an investment property. Unfortunately for our investor, since the product they chose was a static HELOC, the majority of lenders would require them to re-apply to have the limit on their HELOC increased.

Utilizing a re-advanceable mortgage/LOC allows an investor to build up funds toward their next down payment simply by making their mortgage payment every month and allowing it to accumulate in their LOC over time.

Aside from the inconvenience of a new application process, which could be declined if there were any changes in employment (such as shifting from an employee to being self-employed or simply having a spouse go on maternity leave), your investor would also be subject to additional legal and appraisal costs – all this because they did not get the right advice in the first place.

in the line of credit is increased by that same $50,000. In other words, every dollar of equity that is paid off one’s mortgage is automatically re-advanced to their line of credit. There is no need to re-apply to have it readvanced – it is done so automatically. And the best part is that any time one uses money from their line of credit for an investment that has the intention of making money – the interest on the line of credit is taxdeductible – a process that is commonly referred to as the ‘Smith Manoeuvre.’

2

What they should have arranged is a re-advanceable mortgage/LOC combination. The difference is simple and obvious, but unfortunately many Canadians are still not familiar with the fact that they exist. As the name suggests, a re-advanceable mortgage is created in such a way that every dollar of equity that is created by paying down the mortgage portion of the loan is re-advanced to the line of credit.

The proper use of this product is critical for the real estate investor as it addresses two critical areas that often concern them. The first and most obvious is the fact that access to money for down payments is one of the biggest obstacles to the real estate investor. Utilizing a re-advanceable mortgage/LOC allows an investor to build up funds toward their next down payment simply by making their mortgage payment every month and allowing it to accumulate in their LOC over time. The second, less obvious advantage of this product is that it should forever eliminate the argument among couples over whether they should use a particular lump sum of money to pay down their mortgage or invest.

In the example below, the $50,000 that was used to reduce the mortgage would be automatically readvanced to the client and made available to them in their line of credit.

Mortgage

LOC

$250,000

$130,000

$50,000 $200,000

$70,000

stats

$215 billion The original mortgage would be structured exactly the same with $250,000 set up as a mortgage amount and $70,000 made accessible in the LOC. The difference with the re-advanceable mortgage is that as the $50,000 of equity is paid off the mortgage, the accessible equity

46 | mortgagebrokernews.ca

– estimated value of The Canadian HELOC Market

Source: CAAMP

Proper utilization of this product will allow your clients to do both. Simply apply the excess cash onto a principal residence mortgage, thereby reducing immediate mortgage costs, and then have those same funds re-advanced to a line of credit where it can remain indefinitely available until such time that an investor is ready to invest. It should be noted that there

News

Industry FEATURE / Lines of credit

Your trusted news source

is absolutely no additional cost to having the limit on your line of credit increased. A person only pays interest on the amount of money they access and only when it is accessed.

first-time buyers, or mortgages that start under a have expanded their unsecured lending products.

It is for this reason that investors looking to access potential equity for specific price (remember restrictions in 1992 when What our government fails to realize is that the purposeslending of investing always use this tool instead of refinancing the first-time buyer program was implemented? unsecured has ashould larger impact on cash with a brand new mortgage.

If the entire amount of equity were to be Should we look at something similar?) When “Red flow than mortgage lending. Particularly when accessed in the form a mortgage, oneto would principal Ed” Clark at TDand was screaming for more home ownership hasofalready beenthen proven be be paying government controls on mortgage lending, what more affordable renting most areas interest paymentsthan on the entirein amount from the very start of the mortgage. he was really saying was that lenders can’t police (Vancouver is currently a rare exception). What they (government) dopurpose see is the most powerful When used for the of making an investment themselves. that has the If bank A will do the deal why can’t bank B? If Johnny jumps off the bridge, would you lobby group in the country saying “it’s mortgage intention of making money, not only is this a prudent tool for tax purposes jump off a bridge? What kind of people do we have lending that is the issue.” but it is also a tool that will help add to –an investor’s net running worth. our banking system? The real culprit in Paul Therien this whole mess is the least regulated and that is As we spring and summer markets, you’ll credit card debt. Put some sense back in the They justmove don’tinto get the it, do they?

Economics 101, saysremember, system, theas boots to the credit card lenders, cool off atohot market by making it more difficultare to using continue read headlines about how Canadians their put homes borrow, heat a cooling by loosening ATMs and we up should all beeconomy cautious about accessing toounderstanding much equity inthat our it will impact the economy especially retail goods. Gradually up lending.

We areour cooling off inYour manyinvestors, markets,on the significantly, homes to subsidize lifestyles. other hand, will be tighten the mortgage underwriting “standards” that were never as hot as Toronto and Vancouver. utilizing the right tool to access equity to purchase properties that have that have been perverted over the last 10 years.

Canadian institutional (read bank) mortgage enough flow to the roll, debtlike on the subject and pay Will there be the pain? No doubt about it. But an lendingcash has been onservice a 10-year drunks on aproperty interest on the line of credit.

But don’t worry too much about what you read pain now, beats an agonizing pain bender, abetted by their “drinking buddy” CMHC. I uncomfortable in the headlines, they’re talking about agree that a 30-year amortization is the tooother long aguys. later. time in general, but maybe it should be allowed for – GTA Broker

Peoples Offers Choice:

CMHC & Conventional Mortgages for:

Single Family Alternate Equity Lending:

Multi-Family Rental Properties Senior’s Housing Projects Commercial Properties Construction Projects

Competitive Rates Equity Take Outs Purchases No Minimum Beacon Homeowner or Rental Flexible Income Verication Renewal Fees Available

Vancouver

®

Calgary

Suite 1115-Bentall Two 555 Burrard Street, Box 231 Vancouver, BC V6C 3K4 Fax: 604-683-2787 Email: vancouver@peoplestrust.com

Suite 955 808-4th Avenue SW Calgary, AB T2P 3E8 Fax: 403-266-5002 Email: calgary@peoplestrust.com

CMHC/Conventional Financing Brian Kennedy 604-331-2211 Jonathan Wong 604-331-2218

CMHC/Conventional Financing Dennis Aitken 403-205-8203 Daniel Stewart 403-205-8202

Toronto Suite 1801 130 Adelaide St. West Toronto ON M5H 3P5 Fax: 416-368-3328 Email: toronto@peoplestrust.com CMHC/Conventional Financing Michael Lombard 416-304-2078 Ady Steen 416-304-2089

Single Family Financing Tom Wollner 604-331-2210

19

mortgagebrokernews.ca mortgagebrokernews.ca | 47

Business / marketing

Realtor

marketing secrets In his latest instalment, Doren Aldana explains that the follow-up phone call is about asking good quality questions, listening, taking notes and offering them a prescription to cure their pain

48 | mortgagebrokernews.ca

Business / Marketing

In my last article, I walked you through the second of my seven steps for building a strong, profitable partnership with top-producing Realtors. More specifically, I showed you how to grab the attention of top-producing Realtors in your area by using a unique, outrageous, 3-D mail campaign – otherwise known as a “Shock ‘n’ Awe” campaign. Now that you’ve got their attention, here’s the next step ...

be for you then, but may I ask you one more question before I let you go?” They’ll always say yes. Then you say, “May I ask why you said no? Is there any reason in particular why attracting more quality listings and selling them fast for top dollar is not of interest to you right now?” And then just let them answer.

STEP 3 – Follow-up by phone

I guarantee you they won’t be saying those benefits are not of interest. Instead what they’ll say is something like, “I’m already working with somebody, I already have a mortgage broker, blah, blah, blah.” That’s where you say, “OK, no worries. I can appreciate that. It wasn’t my intention to step on any toes. In fact, I’m not even asking you to pull away from your existing relationships.

All I’m asking is, if I could show you how to take your business to the next level by attracting more quality listings and selling them faster for top dollar, would you be open to meeting with me for 30 minutes sometime in the next week or two?”

As a general rule of thumb, you’ll always increase your conversion rates on your direct mail campaigns if you follow-up by phone about a week after you send each mail piece. To do this effectively, it’s helpful to have a good script to keep you on track. Here’s an example of what you might say when you start doing the follow-up calls: “Hi, is Ralph there please. Hi Ralph, this is John Smith calling from ABC Mortgage. I just sent you a strange dynamite stick with a letter crammed inside that shared some powerful information on how I can help you explode your sales. Do you have a brief moment? I’m just curious, did you get a chance to scan over the letter?” If they say no, you say, “No worries, I’ll just give you a quick rundown right now if that’s OK.” If they say yes, you say, “What did you think of what you’ve read so far?” And then no matter how they respond, you ask them the basic qualifying question (BQQ).

The formula for the BQQ is: If I could _______ (benefits offered to prospect), would you ____ (take a specific action)? For example, you might ask, “If I could show you how to attract more quality listings and sell them faster for top dollar, would you be open to meeting with me for 30 minutes in the next week or two?” And then you just shut up and let them answer the question.

How they answer that question will determine if they qualify for your time or not.

Because if they say “no” they’re probably not the right fit. However, before you let their “no” disqualify them, say this: “No worries, this may not

As you can see, all you need to do to overcome that all-too-common-objection is simply empathize with them, let them know you understand their concern, address the concern and then ask them the BQQ for a second time. If you follow this formula, you’ll be pleasantly surprised how many times you’re able to turn each NO into a YES. And here’s the best part: Rather than relying on the whim of the Realtor to throw you a lead every once in a while, this new approach focuses on adding unique value by showing them how to attract listings they wouldn’t have attracted otherwise, attract buyer leads for those listings they wouldn’t have attracted otherwise, and in doing so, all those new leads are technically yours since you’re the one who helped them originate them in the first place.

As you can see, all you need to do to overcome that all-too-common-objection is simply empathize with them, let them know you understand their concern, address the concern and then ask them the BQQ for a second time. mortgagebrokernews.ca | 49

profile

Business / marketing

PROVIDER

communicating the main objective of the meeting. To accomplish this, you might say something like, “Just so you know, my primary purpose for this initial meeting is to learn more about your business so we can identify the With predictions swirling lowest around hangingabout fruit and the hidden opportunities for “ the future of the economy in 2012, Lombard breakthrough. Then, provided you’re sufficiently believes Peoples Trust is well-positioned. there’s nothing that slows we can schedule a second meeting where I “Our business modelimpressed, hasn’t really down the process more can give you a detailed changed from last year. We expect the real custom-tailored proposal on how to take your business to the next level. Fair enough?” than not having as much estate market to remain strong and we expect to continue to operate in our main So, as you can see, it’s not about giving them a sip information as you can possibly spheres of CMHC-insured and conventional with a fire hose – talking about how great you are. It’s all So, you no longer have to be stopped by that same have or not having a clear business. We also expect pricing to remain about asking good quality questions, listening, taking old objection Realtors give you, that they’re already understanding of the deal or competitive and we’re up-to-date with notes and if it makes sense to do so, offering them a working with a mortgage professional. Why? Because current market pricing and where we the borrower prescription cure their pain. you’re offering something unique and compelling that need to be to be competitive, but wetodon’t ” one else is offering. You’re positioning yourself as see any major changes to the market no Michael Lombard Now for the next step… an irreplaceable, indispensable asset on their team, next year.”

“Most of up the commodity-selling instead ofour justbrokers another pick replaceable Expectations of the brokers Peoples phone and say,rates ‘This is best the deal I’ve Since most of dealsinfo with are rather straightforward, so-called “best and service.”

STEP 4: Follow up by email got. Does it makeare sense andtocan I the herd, it according to Lombard: understand thea deal. your competitors content follow We’ve covered lot of ground so far so let’s recap. At Learn more send you some It’s not “There’s nothing that slows down the doesn’t take thatinformation?’ much to rise above theamediocre this point, you should have compiled a “Top 100” list of from Doren at situation where your deal is sent process more than not having as much majority and stand out from the clutter. award-winning Realtors in your market area, sent them The Mortgage through a channel and reviewed by information as you can possibly have or not Summit. at least one postcard or letter and followed up by phone an analyst, at Peoples you’re dealing having a clear understanding of the deal or www.TheMortgage But we’re not done yet.

A good follow-up script a week later to book “discovery” meetings. Since you’re directly with the underwriters.” the Summit.com borrower.” CMP should always set clear expectations by on the phone with the Realtor anyway, you might as

turn each NO into a

YES

License #11127

50 | mortgagebrokernews.ca

mORtgagEbROkERnEws.ca

55

Cover

The Year ahead

well ask for permission to send them weekly marketing tips via email. Almost everyone will say yes.

Once you’ve got their verbal permission, then you can follow-up by email with helpful tips for growing their business – not sales pitches, but tips. reality out there instead of trying to After sell around then kinds peopleofwill testing it, various email formats, I’ve found video tips to be more effective than trust email us.” content. In other words, the email text is designed to compel the reader to click the static But any efforts the industry may link to watch the video. I call this “teaser copy” because it’s designed to tantalize, intrigue and undertake as a whole will have no pique curiositybrokers enough to make effecttheir if individual don’t dothem want to click the link.

OK, there you have it.

I’ve just given you four killer content ideas for your video tips that will their parts, which means giving grab your Realtors’ attention and get them banging down your door, eager to learn more. clients the best value-added service, improving efficiencies and funding ratios with andwalk of course, In my nextlenders, article, I’ll you through step five of my seven-step formula for building placing clients with the right lenders for their needs.

“Focus the best the Just inoncase youinterest wereofwondering, here are a few sample topics of client first and foremost,” said email“We tipsarethat get Realtors’ attention: Therien. at awill crossroads: we either go back to being the person you Source: Mortgage Insights: go1. to when banks sayExpired no as itListings was How tothe Profit from Highlights from CAAMP’s Fall 2011 252. How years ago, or become truly trusted to Get Your Referral Partners to Promote You consumer and industry surveys advisers to our customer and move up (CAAMP/Martiz Research Canada) 3. How to Turn FSBOs to a Flood of Buyer Clients to the next level.” CMP 4. How to Convert More of Your Listing Presentations into Signed Listing Agreements

48

morTgagebrokernews.ca

Business / Marketing

strong, profitable partnerships with top-producing Realtors. You’ll learn the critical ingredients necessary for conducting highly successful Realtor meetings that lay the foundation for long-term, loyal referral partnerships. Stay tuned…

71%

About the Author:

Doren Aldana is considered by many to be Canada’s leading Mortgage Marketing Coach. Since 2005, he has of homeowners say they been dedicated to helping mortgage are in attract a good position to professionals more clients with less effort, regardless of market weather a potential downconditions. For a free online turn inworkshop the housing on “Howmarket to Turn Your Realtors’ Listings into a Flood of Red-Hot Mortgage Leads,” visit: UltimateRealtorMarketingSystem.com.

mortgagebrokernews.ca | 51

STATISTICs / RESIDENTIAL LISTINGS

National picture

at-a-glance This month’s round-up looks at residential resale activity and home prices across Canada National resale housing activity improved in February after having declined in January, while prices continued to inch upwards. The latest Canadian Real Estate Association (CREA) data revealed that home sales rose 1.4% from January, while actual activity was up 8.6 % from February 2011 levels.

The number of newly listed homes also rebounded 1.9 % on a month-overmonth basis in February, reaching the highest level since May 2010. A rebound in new listings in Toronto and Montreal, Canada’s two most active markets, offset a retreat in new listings in Vancouver, Canada’s third largest market. With both sales and new listings having risen, the national sales-tonew listings ratio, a measure of market balance, was little changed in February (53.3%) compared to January (53.6 %) and remains firmly in balanced market territory.

British Columbia Average Home Price:

$576,916 Year-over-year change:

-1.8%

10

$131,839

$134,607

$139,154

$141,442

$143,282

$145,835

Sault Ste. Marie (ON)

Yorkton & District (SK)

Annapolis Valley (NS)

Chatham-Kent (ON)

Timmins (ON)

Moncton (NB)

$91,739 Cape Breton (NS)

$129,497

$86,650 Yarmouth (NS)

Northern Nova Scotia

$84,581 Northern New Brunswick

$356,980

Hamilton-Burlington (ON)

$453,966 Mississauga (ON)

$363,233

$464,570 Victoria (BC)

Okanagan-Mainline (BC)

$502,508

$504,441 Fraser Valley (BC)

52 | mortgagebrokernews.ca

Toronto (ON)

$578,663

$591,798 Oakville-Milton (ON)

York Region (ON)

$625,184

Expensive Regional Markets

Fort McMurray (AB)

Greater Vancouver (BC)

$806,094

Most Least

British Columbia

Avg. Price

Greater Vancouver Fraser Valley Victoria Okanagan-Mainline Kamloops

$806,094

North West Territories Average Home Price:

$386,700

$504,441

Year-over-year change:

$464,570

1.4%

$363,233 $338,505

Newfoundland & Labrador Average Home Price:

$258,965

Yukon

Year-over-year change:

Average Home Price:

7.7%

$342,872 Year-over-year change:

14.5%

Prince Edward Island Average Home Price:

Saskatchewan

Quebec

Average Home Price:

Average Home Price:

$263,489

$264,733

Year-over-year change:

Year-over-year change:

$155,137 Year-over-year change:

15.7%

5.2%

4.8% Alberta Average Home Price:

$359,721

Manitoba

Year-over-year change:

Average Home Price:

2.2%

$243,192 Year-over-year change:

9.5%

AB/SK/MB

Avg. Price

Fort McMurray Calgary Edmonton Alberta West Saskatoon

$625,184 $405,687

Ontario Average Home Price:

New Brunswick Average Home Price:

$156,507 Year-over-year change:

$390,901

$329,820

Year-over-year change:

$304,457

8.6%

3.6%

Nova Scotia Average Home Price:

$222,620 Year-over-year change:

$297,628

7.5%

Ontario

Avg. Price

Quebec & Atlantic Canada

Avg. Price

Oakville-Milton York Region Toronto Mississauga Hamilton-Burlington

$591,798

Montreal Halifax-Dartmouth Nfld. & Labrador Quebec City Gatineau

$320,243

$578,663 $502,508 $453,966 $356,980

$265,230 $258,965 $253,915 $235,901

The best

of both For Allan Kates and Northwood Mortgage, a strong team is the key to being successful and that includes brokers as well as external partnerships

worlds Independence runs deep at Northwood Mortgage, but it doesn’t interfere with making good business decisions, such as the one to join a national brokerage network after 22 years as one of the largest independent brokerages in Ontario.

“Northwood Mortgage is a phenomenal success story,” says Allan Kates, VP of sales at Northwood.

He says the move to join VERICO Canada is about adding value and being able to take advantage of programs that the brokerage couldn’t undertake efficiently on its own – specifically technology such as CRM systems, online training and mobile apps.

“These are things where we wouldn’t recoup our investment,” says Kates, who has spent 10 of his 13 years in the mortgage industry at Northwood. “We get to enjoy the fruits of their labour.”

Additionally, VERICO has lender programs and attractive trailer models which will be available to Northwood Mortgage and they’re always looking to add partnerships that benefit the network, says Kates. “When a network does more than $12 billion in mortgage volume, a lot of companies want to jump onboard and do business with them.”

As far as he’s concerned, partnering with VERICO gives Northwood Mortgage the best of both worlds.

“They allow us to be fully independent,” he says. “They help our business, they don’t run it.”

Allan Kates

This decision was not entered into lightly, says Kates. “Our Northwood Mortgage name has cost us millions of dollars to build up and we see this as a good partnership.

profile / broker

Calum Ross makes the move to VERICO “Verico promises to provide value-added benefits on an on-going basis, which is demonstrated in our agreement with them.”

Brand name As a large brokerage with 160 agents, Northwood has built its name and its business on branding and innovative programs for its agents. It all starts with branding and building a business that is stronger than its individual parts.

According to Kates, Northwood Mortgage is one of the strongest names in the GTA, with the brokerage spending about $1 million every year on marketing in print, over the radio and on the Internet.

The brokerage has also been a pioneer in the business by offering underwriting/mortgage placement to its agents since 1994, a service for which they don’t charge their agents. “So when our lenders get our deals, they’re quality deals and they deal with three people, not 160, which allows us to get great pricing, better turnaround times and higher closing ratios,” says Kates.

Northwood Mortgage also has a commercial/industrial division – run by a broker with more than 25 years of experience – that finances deals worth as much as $19 million.

In addition, agents have access to private funds through Northwood’s mortgage investment corporation (MIC). “We have plenty of money available for our agents to facilitate private transactions,” says Kates.

Through another arm of the brokerage – Northwood Mortgage Life – agents are able to offer clients their own policies.

Broker choice

leads. “[Agents] still go out and source business, but they get leads from us because of our $1 million marketing budget,” he says. They are fully independent agents, but enjoy the benefits of the lead program as well as underwriting.

More typical of what other brokerages do, Northwood Mortgage also has “outside agents” who work from their home or other office.

These agents generally do a high level of volume but also have the brokerage’s underwriters available to them upon request.

The training of new agents is another way Kates believes that Northwood Mortgage separates itself from the brokerage pack – employing a full-time trainer.

He adds that the underwriters also act as mentor to agents, helping them structure deals.

New agents have to submit a certain number of deals through the underwriters before they can choose not to.

“We have systems in place to ensure our people are up to speed and our lenders are protected so they don’t get low quality transactions,” says Kates.

He says what they do is unique and he says the proof is in what he hears from agents who come to Northwood Mortgage from other brokerages.

“Some of the agents we get from other brokerages come to us with little training. What happens is, the broker that brought them onboard doesn’t have the time to spend with them because they have to write deals to stay in business. The new agent doesn’t have the support system that they need in order to become successful.”

Another area of innovation at Northwood Mortgage is its distinct programs for agents, including those who are new to the firm and the industry.

To ensure that’s not the case at Northwood Mortgage, the company’s management team’s compensation is primarily based on the production of the agents. “They’re not chasing deals,” says Kates.

Agents can be “in-house” mortgage agents, according to Kates, which then entitles them to

“Our approach is that we’re much stronger as a team than we are as individual brokers.”

The Mortgage Management Group Inc., headed by Calum Ross, has joined the VERICO mortgage broker network.

Ross, a prominent figure in the mortgage broker community Calum Ross was ranked No. 1 in the CMP Top 50 broker list in 2010. He is regularly featured in the media as a mortgage expert including appearances on Canada AM, CTV, City TV and Inside Toronto Real Estate. He is the mortgage columnist for New Homes and Condos magazine and The Condo Guide and is regularly quoted in newspapers such as the National Post, The Globe and Mail and The Toronto Star. He holds both a B.Comm and MBA in finance and recently completed the Comprehensive Leadership Program at Harvard Business School.

“VERICO Canada is the only brand in the marketplace that serves as a true partner to mortgage originators supporting the growth of their business, their brand, their way,” said Sean Widdess, national sales manager, VERICO Canada. “With the new partnership between Calum Ross, his team, and VERICO Canada, we have re-enforced the level of value that the VERICO Brand offers to those mortgage originators that are looking to elevate their business to the next level of success.”

mortgagebrokernews.ca | 55

Profile / insight

Mortgage advocates Mortgage industry associations are leading the charge in getting out the message that more mortgage rule changes are not the answer to rising debt levels Canada’s mortgage industry associations have sounded the alarm, urging Ottawa to abandon any plans in the works to introduce yet more mortgage rule changes because of the CMHC’s much-talked about insurance fund.

Jim Murphy

Despite those efforts, brokers are increasingly worried the government will further tighten mortgage rules this year as a way of ratcheting down on household debt. CAAMP argues that as unnecessary.

“During the past week, there has been extensive media coverage and announcements affecting the mortgage industry,” wrote CAAMP in a message to its members, outlining its lobby efforts. “The issue of lenders and the mortgage insurance ceiling has nothing to do with lending practices, but rather liquidity and capital requirements.”

“Government has already tightened lending criteria significantly and mortgage volumes have decreased,” it says. “Arrears and defaults in Canada remain low and are declining, (and) homeowners have significant equity and are paying down their mortgages. As an industry, we are vigilant and caution against further measures that could precipitate a weakening of the housing market.”

Many of its members have offered the same analysis since CMHC warned lenders that access to that insurance fund for so-called bulk insurance to cover conventional mortgages might effectively be rationed as it comes within 10 per cent of its $600 billion cap.

$600 billion CMCH’s limit on mortgage insurance

It is also communicating regularly with the Minister of Finance’s Office in Ottawa, at the same time it moves to retain an Ottawa lobbyist.

CAAMP is using several routes to get an unequivocal message to Ottawa: lender underwriting has nothing to do with concerns about the CMHC’s $600 billion insurance cap.

“AMBA fully supports the initiatives by the national association in their efforts to advocate on the mortgage brokers industry’s behalf,” read a statement for the provincial association. “Government should consider the risk of limiting consumer choice when it comes to large financial transactions. AMBA believes that consumer choice is important to families who are managing their debt and with less choice comes higher costs.”

STATS

brokers to evaluate those facts and their implications.

“OSFI’s lender audits on NIQ (Non Income Qualified) products and news that the government guaranteed mortgage insurance ceiling is approaching its limit directly affect the type of mortgage products that can be offered and the way in which mortgages are funded,” says CAAMP, pointing to several lobbying efforts meant to protect the mortgage industry from another round of mortgage rule changes.

CAAMP is speaking with lenders, insurers and

56 | mortgagebrokernews.ca

It’s a message CAAMP is also hoping its individual members will take to their respective MPs, with the association having prepared a detailed set of messages for them to share with local media.

AMBA suggests that the government’s previous rounds of mortgage rule changes have been sufficient to slow down household debt. It’s worried any further changes would see consumers lose access to much needed mortgage credit options and be left with more costly options.

“Action taken in adjusting rules or policies has the potential of reducing liquidity in the marketplace and may cause a crisis where none existed previously,” wrote AMBA. “In considering mortgage rule changes, we urge the government to consider the risk of forcing consumers to higher interest-bearing credit such as personal lines of credit or credit cards as a result of less mortgage product options.”

It’s a message CAAMP is also hoping its individual members will take to their respective MPs, with the association having prepared a detailed set of messages for them to share with local media.

EARs y 6 L AL T

oU solD ! k NoW Boo

Table bookings noW open!

Book yoUR tABLE oNLINE NoW! Visit Us Online

www.canadianmortgageawards.com/book-your-table-now

Or Contact (416) 644 8740 jessica.duce@kmimedia.ca For more information on sponsorship opportunities please contact:

Platinum Sponsor

Trevor Biggs National Sales Manager (416) 644 8740 x 236 trevor.biggs@kmimedia.ca

Award Sponsors

Scott Clarke Sales Manager (416) 644 8740 x 237 scott.clarke@kmimedia.ca

Cocktail Party and Award Sponsor

Officially audited by

www.canadianmortgageawards.com

After Party and Award Sponsor

Another event organised by

Profile / provider

The future looks Hali Strandlund

bright

As a private lender, Fisgard Capital Corporation offers more competitive and accessible mortgage products than conventional lenders, says President Hali Strandlund.

What type of lending does Fisgard offer brokers?

Fisgard mortgage products range from residential first and second mortgage financings for those borrowers who do not fit into today’s conventional financing box to multi-million dollar commercial or construction loans.

One of Fisgard’s strengths is its innovative approach to difficult or unusual mortgage situations. This is a result of over forty years of successfully providing alternative solutions to Canadian mortgage consumers.

How does Fisgard differ from banks?

Fisgard’s philosophy of “full-spectrum financing” considers a wide range of mortgage situations and is a one-stop shop for mortgage brokers and borrowers.

Fisgard is a true balance sheet lender, lending our own money, not securitizing or leveraging our portfolio.

What is different for brokers when dealing with Fisgard?

Brokers turn to Fisgard when looking for competitive, flexible and creative shortterm solutions for their clients. There are a few key differences with Fisgard: • Equity Lender Our primary concern is the real estate security. The borrower must be able to show the ability to pay, but as long as the real estate is good the rest is flexible.

58 | mortgagebrokernews.ca

• Private means private We are a private company with experienced and knowledgeable staff and have total confidence in our underwriting decisions.

We offer products that are accessible, easy to understand and qualify for and flexible terms that are difficult to find in today’s conventional mortgage marketplace. You won’t find any costly and complicated IRD’s at Fisgard.

• Rates are not tied to the bond market We are not subject to the same rate fluctuations or rely on a spread to make our profits as most conventional lenders.

We set our rates and terms based on the level of risk we are taking, what a borrower is reasonably able to pay and the expectations of our investors. Common sense lending at its finest.

• Faster turnaround time All decisions are made ‘in house’ and brokers get their deals in front of a decision maker immediately. Our residential loan approval process includes an immediate response back to the broker that includes the name of the underwriter the application has been assigned to and a list of any information that may be missing but necessary to make a prompt decision. Most approvals are made within a few hours of receiving the deal.

• Concentrated team Brokers can easily build relationships with our underwriters and staff as they will work with the same team on all of their deals

• There is no ’box’ We can be flexible and creative. We do not impose strict requirements on what the borrower needs to prove in order to qualify. Our main concern is the value and marketability of the real estate security.

How has private lending and Fisgard come out of the recession?

High interest rates and appreciating real estate values that have driven private mortgage lending returns for almost 20 years are not sustainable in the current economic climate. Fisgard is a conservative Mortgage Investment Corporation (MIC) with established lending channels. We invite brokers to speak with our underwriting staff. We want the opportunity to earn their business. Fisgard is here to stay.

What does the future hold for Fisgard?

The future is bright for Fisgard. As conventional mortgage requirements and regulations tighten, Fisgard will continue offering mortgage products to borrowers on terms that are no longer available in the prime markets. Fisgard offers shorter terms, longer amortizations, flexible qualification and reasonable and fair prepayment terms. Fisgard fills the void left open by conventional lenders.

The only national publication for canadian real estate investors

looking for A resource to help your property investment clients?

Are you A property investor yourself?

Subscribe to Canadian Real Estate Wealth magazine or send your clients a gift subscription today!

Canada’s only monthly publication dedicated to Canadian real estate investors offers readers accurate, cutting-edge information to guide their investment decisions.

in every issue

• • • •

get industry predictions/forecasts from mortgage experts gain a better understanding of the distinctions between residential and commercial mortgages discover the advantages of the mortgage broker for the real estate investor learn key strategies and benefits of portfolio re-financing

45

n e w % of f ssta p r ic n d e!

help your clients succeed And grow your business At the sAme time!

12 issues for only $60 24 issues for only $105 + free book!

*See sub card for book choices and promo codes

Subscribe online: www.canadianrealestatemagazine.ca and enter the promo code on the sub card to get this special offer today! For bulk/group subscriptions please call 416-644-8740 Ext. 243.

Profile / favourite things

Favourite things…

Grant Brown

Mortgage Broker, Homeguard Funding Ltd. (VERICO), Newmarket, Ont. Hobby: Portage Camping Sport: Baseball

Book: Good to Great

Vacation: Hawaii Place: Home

Movie: Boondock Saints

Music: Reggae

60 | mortgagebrokernews.ca

Food: Fajitas Drink: Iced Tea

No Fluff.

Every day of every month CMP and Mortgagebrokernews.ca delivers top quality, relevant content that independent mortgage broker professionals use to improve their business – no filler – no fluff.

Maximize your marketing ROI with the leading independent voice of the mortgage brokering industry.

Contact.

Scott Clarke 416 644 8740 x 237 scott.clarke@kmimedia.ca Trevor Biggs 416 644 8740 x 236 trevor.biggs@kmimedia.ca

GUEST / column

Understanding

the risks They may not be for everyone, but the freedom and security of a reverse mortgage could be the perfect fit, depending on your clients’ tolerance for risk and their expectations for the future, says HomEquity

Senior homeowners have different needs than other clients. They look for stability, appreciate safety, and cannot afford to take risks with their finances. Simply, with limited income-earning opportunities and shorter time horizons, seniors need solutions that are predictable – no matter what life throws at them.

Today’s seniors are also living longer, saving less, and spending more than ever before. Often, their homes are their largest asset.

This presents an opportunity for mortgage professionals to provide this fast-growing market with solutions that will allow homeowners in their 50s and 60s or even older to create cash flow from the equity built up in their homes.

In today’s low interest rate environment, tapping into home equity with a secured line of credit seems like a no-brainer. It certainly is a growing trend amongst many Canadians. But, finding the right solution for your senior clients means looking deeper than today’s most attractive interest rate. It means understanding your clients’ need for long-term stability and providing them with a solution that fits.

HELOCs are an effective short-term borrowing option for qualified homeowners who can pay the interest and pay off the loan in the future. However, even for seniors that do qualify based on their income and credit scores, it’s important to understand that these products are not without their risks.

With a callable loan like a HELOC seniors take on the risk of non-renewal or cancellation. If bank lending policies change or their personal financial situation is altered by marriage breakdown, the death of their spouse, bad credit or loss of income, they may lose access to money, at a time when they need it most.

Keep in mind, today’s interest rates will not stay this low

62 | mortgagebrokernews.ca

Gary Morrison Director, Mortgage Broker Partnerships

forever. Rates will inevitably rise, and as they do, so will the cost of carrying the debt. Seniors are least likely to be able to afford higher interest payments as their income is generally fixed and their cash flow is tight.

For senior homeowners that aren’t comfortable with the uncertainty of HELOCs, a reverse mortgage could be the right long-term solution.

The interest rate premium charged on reverse mortgages provides Canadian seniors with a way to unlock their home equity without taking on monthly payments. It also affords them the flexibility to repay the principal and interest when they choose to or when they move or sell the house.

In many ways the reason why seniors choose a reverse mortgage over a line of credit is the same as the reason why first-time home buyers choose a three-year or five-year fixed-rate mortgage – it provides them with protection against life’s uncertainties.

With a HELOC they take their chances, and that’s why it costs a little less.

Some senior homeowners may be in a position to gamble a little and save a bit on rates with a HELOC. For others, the freedom and security of a reverse mortgage could be the perfect fit. It all depends on your clients’ tolerance for risk and their expectations for the future.

Whatever their preference, your senior clients will profit from a careful consideration of their current and future financial situation. So show them all the options and let them know that it pays to plan ahead.

service / directory

Banks

Bridgewater Bank www.bridgewaterbank.ca Ph: 1 888 837 2326 Page 8 and 9

FirstLine Mortgages www.firstline.com Ph: 1 877 658 3660 Inside Back Cover

The Money Source www.mymoneysource.ca Ph: 416 699 2274 Page 50 Commercial Lenders

HomEquity Bank www.homequitybank.ca Ph: 1 866 522 2447 Page 41

ROMSPEN Investment Corporation www.romspen.com Ph: 1 800 494 0389 Page 1 and 27

Fisgard Captial Corporation www.fisgardmortgage.com Ph: 1 866 382 9255 Page 10

Insurance

National Bank www.nbc.ca Ph: 1 888 483 5628 Page 36

Canada Guaranty Mortgage Insurance Company www.canadaguaranty.ca Ph: 1 866 414 9109 Page 39

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Page 7

Non-Bank Lenders

Capital Direct www.capitaldirect.ca Ph: 780 868-0550 Page 14

Genworth Financial Canada www.genworth.ca Ph: 1 800 511 8888 Outside Back Cover

ING Direct www.ingdirectbrokerteam.ca Ph: 1 800 574 5629 Page 19 Broker Networks

Equity Financial Trust Company www.equityfinancialtrust.com Ph: 1 866 393 4891 Page 21

Equitable Trust Company www.equitabletrust.com Ph: 1 866 407 0004 Page 23

Firm Capital www.FirmCapital.com Ph: 416 635 0221 Page 12

Optimum Mortgage A Division of Canadian Western Trust www.OptimumMortgage.ca Ph: 866 441 3775 Page 42

Centum Financial Group Inc. www.centum.ca Ph: 1 604 257 3940 Page 11

Dominion Lending Centres www.DominionLending.ca Ph: 1 888 806 8080 Page 15

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Page 47

Street Capital www.streetcapital.ca Ph: 877 416 7873 Page 5

TM

Home Loans Canada www.hlcmortgages.com Ph: 1 866 452 1821 Inside Front Cover

mortgagebrokernews.ca | 63

service / directory

Services

RMAI Financial Group www.rmaifinancial.com Ph: 1 866 955 7624 Page 29

INVIS Mortgage Intelligence www.invis.ca • Ph: 1 866 854 6847 Pages 37

Mortgage Alliance Company of Canada www.mortgagealliance.com Ph: 1 877 366 3487 Page 35

VERICO www.verico.ca Ph: 1 866 983 7426 Page 13

The Lions Share Group www.lionssharegroup.com Ph: 1 866 726 5159 Page 17

Best Points Travel www.bestpointstravel.com Ph: 1 800 551 8786 Page 51

Technology & Software

D+H Limited Partnership www.dhltd.com Ph: 1 866 345 6449 Page 2

Mortgage Architects www.mortgagearchitects.ca • Ph: 1 877 802 9100 Page 31 Real Estate

The Mortgage Centre www.mortgagecentre.com Ph: 1 800 423 0107 Page 3

Canadian National Association of Real Estate Appraisers www.cnarea.ca Ph: 1 888 399 3366 Page 16

For advertising inquiries contact Trevor Biggs: trevor.biggs@kmimedia.ca

Do you have news to share? is Your news s! our new

Have you held a recent event or made a new appointment? If so CMP wants to hear from you!

Send us your newsworthy submissions and photos, and you may find your story in a future issue of CMP or online at MortgageBrokerNews.ca.

Send your news to: john.tenpenny@kmimedia.ca

64 | mortgagebrokernews.ca

The hands on support of our Regional Business Managers is just one of the tools you’ll get as a FirstLine registered broker.

Call us today to get started.

Shane Lapointe 1.866.683.8072 FirstLine Mortgages is a division of CIBC Mortgages Inc. ÂŽ FirstLine is a registered trademark of CIBC Mortgages Inc.

Why wouldn’t you take advantage?

Introducing a new online resource designed to help you connect with the tools and helpful information needed to stay ahead of the competition.

The Genworth Edge Resource Centre offers a full suite of resources designed to enhance your professional skills, increase your brand awareness and build long lasting relationships with your clients.

Visit GenworthEdge.ca and take advantage!

The Homeownership Company Š 2012 Genworth Financial, Inc.