MORTGAGEBROKERNEWS.CA ISSUE 12.10 | $12.95
TOP BROKERAGES Find out which Canadian mortgage teams took centre stage this year IS IT TIME TO LOCK IN? Brokers debate variable versus fixed in the wake of the latest rate hike
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BROKERS AND LENDERS: STRONGER TOGETHER Equity Financial Trust head Michael Jones on the need for broker-lender collaboration
THE VERICO ACQUISITION Industry players react to the network’s sale to M3 Mortgage Group
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ISSUE 12.10
CONTENTS TOP BROKERAGES SPECIAL REPORT
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These 48 Canadian brokerages – which grossed a combined total of $14 billion last year – prove that working as a team can lead to stellar results
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ISSUE 12.10
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CONTENTS
twitter.com/CMPmagazine plus.google.com/+MortgagebrokernewsCa facebook.com/MortgageProfessionalCA
UPFRONT 04 Editorial
The industry reacts to the Bank of Canada’s surprise move
06 Statistics
14
The mortgage insurance sector is undergoing a major contraction
BROKER NETWORK UPDATE
12 Technology update
08 Head to head
How has a cooling Toronto market affected clients?
UPFRONT
44 10
What will the sale of Verico to M3 Mortgage Group mean for the industry as a whole?
NEWS ANALYSIS
Equity Financial Trust’s Michael Jones outlines how brokers and lenders can work together to advance the industry
18
Why embracing change is no longer an option, but a necessity
47 Career path
After the Bank of Canada’s latest rate hike, is it time for brokers to start directing clients toward fixed-rate mortgages?
INDUSTRY ICON
16 Opinion
PEOPLE
UPFRONT
PEOPLE
RBC blazes a trail in fintech with AI-driven products
PEOPLE
44
Early jobs spent building homes catapulted Len Lane into the business of financing them
BROKER INSIGHT
Christine Buemann chats about the big opportunities that come with operating in a small town
48 PEOPLE
OTHER LIFE
On the ice with Olympic curling hopeful and mortgage broker Kirk Muyres
2
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5/10/2017 9:09:08 AM
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5/10/2017 8:30:25 AM
UPFRONT
EDITORIAL
Taken by surprise
I
t was the rate hike that shocked the world. OK, that’s clearly an exaggeration – but it’s fair to say the majority of brokers were caught by surprise when the Bank of Canada increased its overnight rate target to 1% in September. After all, most experts – including 27 out of 33 economists polled by Reuters ahead of the decision – had predicted the central bank would hold off for a few more months to see how its July rate hike had impacted markets. Surprise decisions like this leave a bad taste in the mouths of those who pride themselves on offering the best possible advice for clients. As one broker pointed out following the decision, mortgage brokers look less than stellar in the eyes of clients when they themselves are wrong about where rates are headed. One Big Six bank voiced its displeasure following the decision – but not because of the rate hike itself. In a research note, BMO chief economist Doug Porter said he agreed with the BoC’s decision, but chided the bank for giving little to no indication it was leaning toward another rate increase.
Surprise decisions like this leave a bad taste in the mouths of those who pride themselves on offering the best possible advice for clients Now that the increase has come to pass, though, what does it mean for homebuyers? It appears, perhaps, a shift in mortgage product preference is on the horizon. According LowestRates.ca, the number of Canadians who applied for fixed-rate mortgages jumped in August – 59.3% opted to lock in ahead of the BoC’s latest decision, up from an average of 43.4% since 2014. That trend is only expected to grow now that the overnight rate has gone up again. Of course, as brokers know, there is much to consider when choosing between variable and fixed rates. As another broker pointed out, people have been worrying for the past nine years that the time to lock in could be around the corner. Each time, however, variable still has proven to be a cheaper option. Has that trend now passed? Only time will tell. The team at Canadian Mortgage Professional
www.mortgagebrokernews.ca ISSUE 12.10 EDITORIAL Editor Justin da Rosa Writers Joe Rosengarten Libby Macdonald Ephraim Vecina Heather Turner Copy Editor Clare Alexander
CONTRIBUTORS
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5/10/2017 8:32:09 AM
UPFRONT
STATISTICS
Insurance’s dramatic dip
PROVINCIAL WINNERS AND LOSERS
Last year’s rule changes have eroded purchasing power, reducing demand for mortgage insurance LAST OCTOBER’S mortgage regulations – specifically the one requiring a stress test for buyers with less than 20% to put down, who are thus obliged to insure their mortgages – have taken a bite out of the mortgage insurance sector. Many of these buyers have responded by scraping together larger down payments or forgoing home purchases altogether, eliminating their need for insurance.
According to CMHC, the country’s insured mortgage market has shrunk by around a third during the last 12 months. In the second quarter of 2017, the agency provided mortgage loan insurance to 78,607 units, a 33% decrease from the 117,463 units insured in the same quarter of 2016. On the upside, CMHC noted that it had seen an improvement in the quality of its mortgage loan insurance portfolio.
Ontario and British Columbia homeowners appear to have been most affected by the new regulations: The proportion of insured loans dropped by around 5% in both provinces in the second quarter of 2017 compared to the same period last year. In Quebec, however, more homeowners were able to secure insured loans in 2017 than in 2016; the proportion of insured loans there rose 13.5% during the same period. Percentage of insured loans Second quarter 2016 Second quarter 2017
$17.4 billion $26.9 billion Total amount of mortgages insured in the second quarter of 2017
Total amount of mortgages insured during the same period in 2016
$184,603
British Columbia Q2 2016 15.3%* Q2 2017 10.1%
$207,384
Average insured loan amount during the second quarter of 2017
Average insured loan amount during the same period in 2016
Source: Mortgage Loan Insurance Business Supplement, CMHC, 2017
INSURED LOANS DROP
BORROWING LESS …
CMHC insured 33% fewer loans during the first six months of 2017 than the same time a year before, prior to the introduction of the stress test requirement.
CMHC’s data supports the claim that the latest mortgage rules are driving buyers toward lower-priced homes. The proportion of insured loans fell at every price point except for homes priced below $200,000, which saw a 10.2% increase in the number of mortgages insured by CMHC. 1.0%
NUMBER OF LOANS INSURED
217,725
1.3%
Over $1,000,000
6.2%
143,976
18.9%
25.2% January to June 2017
Source: Mortgage Loan Insurance Business Supplement, CMHC, 2017
6
$600,000 – $850,000 $400,000 – $600,000
20.0%
14.8% 37.7%
Q2 2017
$300,000 – $400,000 $200,000 – $300,000 $200,000 or under
0.5%
4.9%
$850,000 – $1,000,000
27.5%
Q2 2016
January to June 2016
0.2%
HOME VALUE
17.7%
24.2%
Source: Mortgage Loan Insurance Business Supplement, CMHC, 2017; distribution based on loan amounts, not number of loans
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Alberta Q2 2016 14.5% Q2 2017 12.7%
Newfoundland Q2 2016 1.0% Q2 2017 0.6%
Quebec Q2 2016 23.1% Q2 2017 36.6%
Saskatchewan Q2 2016 2.6% Q2 2017 2.2%
Manitoba Q2 2016 2.5% Q2 2017 2.2%
Ontario Q2 2016 37.2% Q2 2017 32.1%
Prince Edward Island Q2 2016 0.2% Q2 2017 0.2%
New Brunswick Q2 2016 1.1% Q2 2017 1.1%
Nova Scotia Q2 2016 2.0% Q2 2017 1.8%
Source: Mortgage Loan Insurance Business Supplement, CMHC, 2017; distribution based on loan amounts, not number of loans
A HIGHER DEBT LOAD
Almost three-quarters of insured loans issued in the second quarter of 2017 were for an amortization period of between 20 and 25 years. Meanwhile, 25- to 30-year amortization periods, relatively popular in 2016, dropped by nearly 12%.
Insured loans taken out in the first half of 2017 also showed a noticeable trend toward higher debt service ratios. January to June 2016 January to June 2017 Less than 30% 16.9% 14.4% 30%–35% 19.9% 18.7% 35%–40% 33.4% 33.9% 40%–44% 29.9% 33.0%
1.1%
0.4%
1.0%
3.3% 4.1%
AMORTIZATION 5–10 years 10–15 years
25.7%
2.2%
0.1%
0.6%
4.5% 2.2% 13.9%
15–20 years
Q2 2016
20–25 years 64.4%
25–30 years 30–35 years
Q2 2017 75.5%
More than 35 years Source: Mortgage Loan Insurance Business Supplement, CMHC, 2017
DEBT SERVICE RATIO
… AND REPAYING SOONER
Source: Mortgage Loan Insurance Business Supplement, CMHC, 2017
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UPFRONT
HEAD TO HEAD
Has the downturn in Toronto affected your clients? Brokers have been witnessing the consequences of the provincial government’s market-cooling measures
Eric Iankelevic
Daniel Vyner
James Laird
Mortgage agent Sherwood Mortgage Group
Manager of business development New Haven Mortgage Corp.
President CanWise Financial
“Yes, it has – in both positive and negative ways. Because the mad rush to purchase is over, buyers can demand reasonable conditions, insulating them from nasty surprises when applying for financing. On the negative side, borrowers who purchased new homes at the peak of the market have experienced issues selling in a slower market. In several cases, buyers felt compelled to accept lower prices than anticipated, resulting in them requiring higher mortgages to cover the difference. In extreme cases, some were unable to sell their homes and had to seek alternative solutions or extensions to their new purchases, causing much anxiety.”
“We’ve noticed both direct and indirect complications. This has been reflected in properties being appraised at lower values than the accepted purchase price from earlier in the year, and in subsequent appraisals dropping even further in a period as short as 30 to 60 days. Consumers are opting to breach contracts, vendors are providing takeback mortgages, and we’ve seen cases where purchasers were forced to take credit card cash advances to complete the purchase. There have also been instances of the ‘domino effect,’ where simultaneous transactions were placed in jeopardy.”
“As home prices soften, there is a greater risk that the appraised value will come in below the purchase price. If the transaction is still conditional, then the buyers can walk away from the deal or try to negotiate a lower price. If the deal is firm, then the buyers are contractually obligated to continue with the transaction. If the buyers had planned on the minimum down payment, then they will need to come up with the shortfall. If the buyers were planning on putting exactly 20% down, then they can either pay high-ratio insurance or come up with the shortfall.”
SHOCK TO THE SYSTEM It seems April was the last hurrah of the Toronto market’s dizzying ascent: The average sales price for all home types hit $920,791 before the Ontario government released its measures designed to address affordability on April 20. According to the Toronto Real Estate Board, Hogtown’s average home price in August came in at $732,292, around 20% lower than at the market’s peak. But a levelling out could be on the horizon. “The relationship between sales and listings in the marketplace today suggests a balanced market,” said Jason Mercer, TREB’s director of market analysis. “If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation.”
8 www.mortgagebrokernews.ca
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2017-07-05 10:20 5/10/2017 8:34:33 AMAM
UPFRONT
NEWS ANALYSIS
Fixed or variable? Some mortgage brokers think now is the time to advise clients to choose a fixed rate, but the majority still argue variable is the way to go THE BANK of Canada surprised the market in September when it increased its target for the overnight rate for the second time this year, raising it to 1%. In a statement, the BoC explained its decision by saying that “recent economic data have been stronger than expected, supporting the bank’s view that growth in Canada is becoming more broadly based and self-sustaining. Consumer spending remains robust, underpinned by continued solid employment and income growth. There has also been more widespread strength in business investment and in exports. Meanwhile, the housing sector appears to be cooling in some markets in response to recent changes in tax and housing finance policies.” The move was met with surprise from brokers and economists alike. Prior to the decision Reuters polled economic forecasters; 27 of the news outlet’s 33 experts
Porter, chief economist for the Bank of Montreal, wrote in his latest research note. “On the contrary, we have been agitating for a more hawkish stance for nearly a year, and believe the case for rate hikes is strong. Unfortunately, we heard absolutely nothing about that case from the bank over the past two months. And therein lies the issue.” “Ahead of every FOMC meeting,” Porter continued, “we are asked to grade the Fed’s communications policy since the prior meeting. On the Bank of Canada, many would be tempted to give them an F in this case. We think that harsh judgement is wrong – we would give them a zero. As in, there was no communication since the last meeting.” Unsurprisingly, a Bank of Canada representative defended the move, saying the data prior to the decision indicated a 50% chance of a hike. Still, what’s done is done, and unsurpris-
“We believe the case for rate hikes is strong. Unfortunately, we heard absolutely nothing about that case from the bank” Doug Porter, Bank of Montreal guessed the bank would stick to the 0.75% rate it set in July. The move was so surprising that one Big Six bank chastised the central bank for its lack of communication prior to the announcement. “To be absolutely clear, we have no problem with the bank raising rates,” Doug
10
ingly, the big banks quickly followed suit by raising their prime rates. RBC was the first to respond, raising its prime rate by a quarter percentage point to 3.2%. TD, BMO, CIBC and Scotiabank quickly followed. Because prime rates impact variable rates, Canadians currently holding variable-rate
mortgages saw upticks in their housing costs, which begs the question: Is now the time to encourage clients to go fixed? It depends on who you ask. “The variable rate is certainly riskier, especially given what most people are predicting as far as interest rates go,” says James Laird, president of CanWise Financial. “But, looking back to 2009, there have been many times where there’s been perceived momentum on the upside of rates, and then something happens and that momentum stalls out and rates stay low. Now, like ever, we’re saying that if you can afford the increased risk of a variable rate, history has shown that nine times out of 10, it’s the cheap way to go.” Of course, there’s no one-size-fits-all solution when it comes to mortgages; every client, every market and every neighbour-
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BROKERS ON RATE MortgageBrokerNews.ca polled brokers on whether they now plan to steer clients toward fixed-rate products. Here’s what they had to say:
53%
Will still recommend variable rates
12%
Will recommend a fixed rate after the next Bank of Canada decision
35%
hood presents unique needs. “If you’re comfortable with a bit more risk, [variable] is still an appropriate option,” Laird says. “You still start three-fourths of a
A recent MortgageBrokerNews.ca poll found that the majority of brokers share Laird’s opinion that variable rates are still the best option in most cases. Of the 436 brokers
“If you can afford the increased risk of a variable rate, history has shown that nine times out of 10, it’s the cheap way to go” James Laird, CanWise Financial point lower than the best fixed rates. There’s still a decent amount of runway. But if your finances are very tight and you can’t afford the exposure to a rising interest-rate environment, you should certainly take the fixed. You get value from knowing what your monthly payments will be.”
who took part in the survey, more than half said they would hold off on recommending fixed-rate products to their clients. There were some brokers who appeared spooked by the recent rate hike, but not enough to favour variable rates just yet – 12% said they would start advising clients to lock
Will start recommending fixed rates
in a fixed rate after the next Bank of Canada rate hike. But is that prospect on the immediate horizon? Again, opinions differ, but one industry association believes the bank won’t raise rates again until next year. “We anticipate that the Bank of Canada will hold off on further rate increases this year and assess how higher rates are impacting the economic and inflation outlook,” the British Columbia Real Estate Association said in a statement. “However, in the bank’s recent communications, it has very clearly left the door open for more aggressive tightening, should the current torrid pace of economic growth continue.” Until then, brokers must ask themselves whether variable rates can still outperform fixed rates, or if that era has truly ended.
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UPFRONT
TECHNOLOGY UPDATE NEWS BRIEFS Analytics, Big Data and automation most promising developments
A recent survey from US-based real estate tech firm Imprev found that industry executives expect significant opportunities to emerge in the next half-decade from analytics, automation and Big Data. Sixty-five per cent of respondents to the Imprev Thought Leadership Survey said predictive analytics was the most promising tech development for the industry, while the same proportion named marketing automation, and 64% favoured Big Data. “They clearly anticipate investing … in tech that can provide a hard ROI, which means avoiding the latest fads,” said Imprev CEO Renwick Congdon. “They’re under more pressure to deliver results and need proven marketing infrastructure to make that happen.”
Online transactions slowly replacing face-to-face
A recent report from HSBC Bank found that face-to-face transactions with mortgage brokers and real estate agents are declining in popularity, amid an ever-growing number of deals being made via online channels and apps. The bank found that 29% of Canadians deal with agents completely or mostly online, a proportion rapidly catching up to the 39% of respondents who deal with agents completely or mostly offline. Another 32% used a combination of face-to-face meetings and online transactions. Meanwhile, 27% of respondents said dealing with other people is their biggest pet peeve when buying a home.
Young workers will drive the industry’s tech transformation
Canada’s young professionals and entrepreneurs are crucial to the evolution of the nation’s financial system,
according to RBC CEO David McKay. In a recent speech, McKay stressed the need for the financial sector to incorporate state-of-the-art technology into all aspects of its process so that it can survive and thrive in the digital age. McKay added that tech-savvy millennials hold the key to ensuring that disruptive innovation works in the present fiscal environment. “Youth today have never been more prepared to solve these challenges, to transform the economy,” McKay said. “We need to leverage that incredible resource.”
RECO’s online education program deemed ineffectual
In a white paper calling for an overhaul of the Real Estate Council of Ontario’s mandatory continuing education program, the Ontario Real Estate Association said the quality of brokers’ education has deteriorated since RECO took over the curriculum in 2013 and moved it completely online. “Content is infrequently updated and puts too much emphasis on convenience over important industry information,” the OREA said. “There is also no pass-or-fail requirement for the CE program, meaning a registrant could answer every question incorrectly and still make it through the course.”
New app lets consumers monitor rates in real time
With mortgage rates constantly in flux, one real estate investor saw the need for a tool to better manage changing information. Monitor My Mortgage [M3] is a free mortgage app that gives homeowners the ability to stay on top of the market with real-time interest rate alerts, which allow them to take advantage of the best mortgage options available. “It redefines how people can and should think about their mortgage – as an investment they control, versus a monthly payment dictated by lenders,” said M3 founder Brent Hughes.
RBC leading in consumeroriented fintech RBC’s labs collaborate with clients and academia to develop new ideas for techenabled banking In recent announcements, the Royal Bank of Canada demonstrated that it is continuing to blaze a trail in the realm of high-tech financial solutions for Canadians. The first week of August, RBC announced that it will enable bill payments using Apple’s personal assistant, Siri. The updated RBC Mobile app will allow iPhone and iPad users to ask Siri to pay their bills. Bundled with this was the launch of Interac e-Transfer payments within iMessage, which will facilitate person-toperson money transfers without leaving the iMessage window. “By offering bill payments through Siri and P2P transfers through iMessage, we’re providing more convenient solutions to support our clients’ payment needs,” said RBC executive vice-president Sean Amato-Gauci. “By giving clients the ability to seamlessly and conveniently bank using voice commands, we’re delivering simple and innovative solutions.” Also in August, the bank pilot-launched two new AI-powered digital services that support financial insights and consumer savings. The first, NOMI Insights, is designed to monitor spending, plan for upcoming or projected expenses, and notify RBC Mobile users when a particular payment is higher than usual. “NOMI Insights can also tell you when monthly spending in a certain category is unusual so you can make informed decisions about your
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spending habits,” RBC said. “For example, NOMI Insights may notice that you’ve been dining out more than usual in a given month, or your transportation costs have increased.” The second service, NOMI Find & Save, incorporates predictive technology to help RBC Mobile users “find pockets of money in [their] cash flow and automatically move that money into savings.” Currently under final testing, both NOMI services are scheduled for a full launch this fall.
“[These apps] are always thinking a few steps ahead to help ensure our clients’ finances are in order” “[These apps] are always thinking a few steps ahead to help ensure our clients’ finances are in order,” said Neil McLaughlin, group head of RBC’s personal and commercial banking. “We’re one of the leading voices on artificial intelligence in Canada, and these new digital capabilities are examples of how our clients are benefiting from our advancements in AI.” The products are the latest offerings from RBC’s innovation labs, which continuously collaborate with clients, other fintechs and representatives from academia to devise and test new ideas intended to streamline banking. “We’re committed to providing clients with exceptional experiences when, how and where it’s most convenient for them,” Amato-Gauci said, “including exploring ways to integrate into social networks and digital platforms that are essential to their everyday lives.”
Q&A
Jason Georgopoulos Mortgage broker/owner DOMINION LENDING CENTRES ESTATE MORTGAGES
Years in the industry 18 Fast fact A car aficionado, Georgopoulos races his McLaren sports car in his spare time
Building an online presence As an industry veteran, what changes have you seen between when you started and now? When I started, there was no such thing as social media. Back then, just using the internet and operating an online platform were already big changes. Now, we would be hard-pressed to do anything without the use of the internet. In terms of clients, the internet helps them do so much more, such as educating themselves and shopping for rates. This is way different from the situation before, when they had to rely almost exclusively upon the banks for this information.
What part do mortgage professionals play in this environment? The industry moves so fast. Even with internet access, there’s no way that anyone could be up to speed on all the changes, all the time. I think brokers can especially help when it comes to educating people on the fine print associated with mortgages. I can give the pros and cons of a particular product without sugar-coating anything and then let the clients make their own choices. From my experience, that kind of assistance definitely holds a lot of value for clients.
How have social media platforms impacted the way you conduct your business? I think it’s a must now to have a social media presence. Nowadays, the first thing anyone would do upon getting a broker’s name is to Google it – and they are going to see what that broker is putting out there, what kind of messages are associated with that name. Having a well maintained social media presence gives you the kind of credibility that says, “This person is in that business, and he takes that business seriously.” For me, it’s not so much about getting new customers, but rather about building that online credibility.
How has technology affected your day-to-day schedule? Technology has definitely helped me organize my business. Even something as simple as a shared calendar with my team has become invaluable. As a business owner who has 17 agents working for me, one of the things that has helped me with time management is the chat groups we’ve been able to set up on WhatsApp. As opposed to me having to answer mortgage inquiries from 17 different staff members, we now help each other in a more social environment that saves at least an hour of our time every day. Also, as much as I’m experienced in the industry, I don’t have all the answers; often, one of my agents can actually help more effectively in a particular situation.
What are your thoughts on the fear that technology is replacing brokers? I don’t think these fears are warranted at all. Because the market changes so quickly, there will always be a place for mortgage brokers in terms of interpreting the numbers. Data is just data, and it’s the interpretation of that data that ultimately helps people make the right financial choices for their situations.
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UPFRONT
BROKER NETWORK UPDATE
M3 Mortgage Group acquires Verico After the initial shock, brokers expressed positive sentiment about the network’s sale
through the industry, but on the whole, brokers appeared to view the move as a win-win. “I think there are now two formidable groups having merged, which I think is healthy,” James Laird, president of CanWise Financial, told MortgageBrokerNews.ca. Mortgage agent Adma Maher of Assured Mortgage Services agreed that only positives will emerge from the transaction. “I believe that in this industry, as in any industry, you need big players – professional go-getters, people that are able to build their
“People should look at it as a good thing that our industry is getting stronger”
In mid-September the Verico network announced its sale to Montreal-based M3 Mortgage Group. No sale price was disclosed. “We believe that the time is right in the industry for positive consolidations that result in the necessary scale to provide Verico members with access to superior financial products, technology, and customer acquisition and retention advantages,” said Verico CEO Colin Dreyer in a statement accompanying the announcement, adding that the
NEWS BRIEFS
acquisition “will have no direct impact on the network or any of the member firms. In addition, the Verico brand, management team, systems and network agreements remain in place.” M3 has become a major player in the Canadian residential mortgage industry; this latest acquisition follows prior purchases of Invis and Mortgage Intelligence, Multi-Prêts, and Mortgage Alliance. The announcement sent shock waves
DLC economist weighs in on recent rate hike
In an analysis following the Bank of Canada’s decision to raise its target overnight rate to 1.0% in early September, Dominion Lending Centres chief economist Dr. Sherry Cooper noted that the bank’s decision was driven by several compelling factors, including 4.5% GDP growth in the second quarter and a below-target inflation rate. Cooper cautioned that “tighter monetary policy portends further increases in mortgage and other lending rates,” but added that it would be premature to consider the current climate the new normal.
clientele and their business and get their names out,” Maher said. “People should look at it as a good thing that our industry is getting stronger.” Meanwhile, Wasah Malik, a private lender with Mortgagepedia, pointed out the upside for consumers. “They have access to greater things and offer more products,” Malik said. “The bigger the brokerage, the better the rates they offer because of the volume of business. You, as a customer, would get a better mortgage interest rate with banks. Customers get offered perks, too, but ultimately they will have access to enhanced products and rates. When you have two big players [merging], that’s going to make the company, and companies around them, stronger.”
Verico broker combines tech solutions
Verico MortgagePal broker Jason Henneberry has two of his cuttingedge tech solutions, Niche Sheet and LenderSpotlight. The combined service allows brokers to search a complete database of lender underwriting guidelines and policies to determine the most suitable lender, product and rate. “We are creating the industry’s most advanced mortgage product and rate filtering system, enabling brokers to quickly search more than 50,000 data points to find the most suitable mortgage products for their clients,” Henneberry said.
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Q&A
Karen Fritz
Networks benefit brokers and consumers alike
Mortgage broker CENTUM ALTERNATIVE MORTGAGES
Years in the industry 15 Fast fact Prior to becoming a broker, Fritz worked for RBC in various management capacities
What issues influence your local market of Collingwood, Ontario, the most? We have a lot of self-employed individuals in the area, so that is a significant challenge. Also, location – because we’re considered a smaller, tighter community, many of the properties here tend to be in outlying areas, and that poses a slight difficulty for some lenders. A broker who operates here really has to work to understand the area and the unique requirements of each lender. I have access to a lot of lenders, because a specific property’s profile and needs will definitely not fit every lender.
What’s your approach in building these connections? There’s no cookie-cutter method. Since I need a wide variety of lenders that do particular property types, I have to understand and keep up-to-date on these institutions. Eventually, once I’ve corresponded with them enough, I send them the deals that I know they would like, and we then cooperate to make it work for the client.
Why did you choose to join the Centum network? Centum is very much in touch with social media. Also, they are highly community-oriented. These attributes give them plenty of exposure to the market realities
Financing scarce for tiny homes, says Centum broker
While tiny homes are becoming fashionable among Canadians searching for greater affordability, a Centum broker pointed out their pitfalls in a recent blog post. “Cities are having difficulty with zoning, and some are requiring the tiny home be placed on a foundation and connected to utilities,” wrote broker Dragana Jovanovic. “Yet, tiny homes are often placed on wheels for ease, as most tiny-home owners do not own land.” Jovanovic added that mortgage options are slim “due to the square footage, lower cost and inability to have security for a lender.”
on the ground. They really stand behind their slogan, “Looking out for your best interest.” The driving reason why I became a mortgage broker in the first place is that I saw the hardships of good people who no longer fit the banks’ profile, and I grew to understand that they couldn’t get any help. I believe that the diligence and excellence that Centum embodies is the best fit for my desire to help these individuals.
How has being part of a network helped you? I think that a lot of it comes down to the individual broker’s skill set and understanding of what to do. That said, being with a network like Centum will definitely give a massive advantage in terms of updated market information and new product knowledge that can be picked up along the way. One’s individual abilities are central to professional success, yes, but a network can help brokers use these skills to their fullest potential and assist clients in the most effective way.
Based on your industry experience, what advice would you provide to brokers who are just starting out? I would suggest to anybody considering this industry to align themselves with seasoned professionals who can provide valuable guidance and feedback. There’s a massive learning curve here – and there’s no better place to help with that than a network.
DLC broker talks cap rate compression
In a recent blog post, Allan Jensen of DLC The Mortgage Source discussed recent cap rate compression and real estate investment risk, specifically the idea that low cap rates mean that investors are impervious to risk. “I am starting to think that there is a continued bifurcation in the market,” Jensen wrote. “Offshore investors have a different take on ‘risk-free’ investing, it seems. They are often larger players, likely have greater access to less expensive funding, and perhaps more importantly, have a longer-term investment horizon.”
Brokers come together to fight tax changes
Nearly three dozen associations, including the Canadian Mortgage Brokers Association, have banded together to create the Coalition for Small Business Tax Fairness. The group aims to be a unified voice opposing a proposal that would change the way small businesses – including mortgage brokers – are taxed. “Mortgage brokers are small business owners who employ others – however, the proposed new tax measures will force many to terminate those employees or shut down business,” said the CMBA’s Samantha Gale.
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email mortgagebrokernews@kmimedia.ca
Acclimatizing to change Embracing change must be a priority, writes Duncan Hannay, as no one in the industry can afford to stand still THE ALTERNATIVE mortgage market has grown significantly over the past several years as a result of regulatory changes aimed at stabilizing the Canadian housing market. These changes have forced lenders, brokers and insurers to evaluate their business practices and remain agile in an ever-changing environment. The dynamic nature of the industry has made both prime and alternative lending solutions a necessity for Canadians looking to purchase or refinance their homes. The continual evolution of policies and guidelines is inevitable. Dating back to 2013, we saw the initial implementation of the B-20 guidelines, followed by B-21 in 2014 and, most recently, changes to insurance rules in October and November of 2016. These new policies were implemented partly in response to a number of Canadian urban housing markets that have been experiencing prolonged periods of house price appreciation. This appreciation has led to concerns
from observers and market participants, resulting in an increased focus on the stability of the domestic housing market. Rather than resisting change, it is important to embrace it in an effort to move our industry forward. Collectively, we need to acknowledge that regulatory changes are implemented to protect consumers, businesses and Canadians at large. Changing guidelines have reinforced the importance of lenders, brokers and insurers working in partnership to find the best solutions for Canadian borrowers. With further changes expected this fall, it’s crucial for brokers to understand the solutions that their lender partners can provide. Working with a lender that can service clients with a broader spectrum of mortgage solutions will help to ensure business continuity in times of regulatory change. As lenders, it is vital that we continually evolve our products and programs to meet the needs of Canadians.
Accepting that lending practices have changed is the first and most important step. For both lenders and brokers, this involves altering our frame of mind in relation to how we approach each deal. Yes, one might say that the days of ‘slam-dunk deals’ are gone, but closing ourselves off to the unique opportunities present in today’s marketplace is a blinded approach. We can all benefit from relinquishing the past and transforming our practices to succeed and grow our businesses in the future. Placing a focus and attention to detail on the application and submission to the lender is paramount. All mortgage applications need to make sense, and providing a strong rationale on every transaction allows for a more seamless approval process. Although the impact of the pending B-20 changes is not fully clear at this time, we must unite as an industry toward our collective goal of maintaining and growing our businesses. The past year has demonstrated the criticality of strengthening our partnerships, keeping the lines of communication open and accepting change. If there’s one thing that both lenders and brokers should take away from the past several years, it’s that pivoting your business focus is vital in any changing market. No one in our industry can afford to stand still. Duncan Hannay is president and CEO of Street Capital Bank of Canada and Street Capital Group. He has more than 25 years of experience in the financial services and technology sectors.
Read Canadian Mortgage Professional UPFRON
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DOWNLOAD YOUR FREE APP FROM THE iTUNES STORE TODAY
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We work for you, not the lenders.
JOIN OUR TEAM! Join a team of mortgage professionals and franchise owners and benefit from the support of one of Canada’s longest established mortgage brokerage networks. Since 1989, we have maintained an environment that supports and empowers you to grow your business your way. What are you waiting for?
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PEOPLE
INDUSTRY ICON
IN GOOD FAITH Michael Jones, president of Equity Financial Trust, has held numerous leadership positions for various lenders. And he’s confident brokers and their lending partners will help lead the industry toward a better future
MICHAEL JONES is no stranger to the lending side of the mortgage industry, having been involved in real estate financing since the early 1980s. His experience in residential mortgage funding dates back to 1996, when he ran CIBC’s access program. From there, he moved to Xceed Mortgage Corporation, where he served as president and COO. “[We] built an organization that relied 100% on mortgage brokers to generate near- and non-prime single-family mortgage applications,” Jones says. After Xceed was sold in 2013, Jones began doing consulting work with Equity Financial Trust; in less than a year, he had taken the reins as Equity’s president and CEO. He’s been there ever since, helping to position Equity as a go-to lender for brokers looking to place clients in the near- and non-prime mortgage sector. “I think the biggest attraction for me to the mortgage industry is that there is a very well developed mortgage broker infrastructure that allows an institution such as Equity Financial to generate large, profitable volume of singlefamily mortgage applications, commitments and funding without having to have an existing brick-and-mortar bank branch network in place,” Jones says. “It allows us to focus on the mortgage broker as a key partner for us – and I mean the word ‘partner’ in every sense. Not just somebody who is an agent on a particular
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transaction, but somebody who is going to help us achieve our goals, in return for which we will help them achieve their goals.” Jones takes pride in the fact that his company works so closely with and actively promotes the broker channel. “We think it has brought much-needed competition to the prime singlefamily business,” he says, “and it has proven to
the same time, that customer is going to depend on advice from the mortgage broker,” he says. “So the broker is in a bit of a tricky situation where they have to balance the interest of the lender and the interest of the customer. And the more sophisticated the mortgage broker is in doing that, the more successful they are going to be.”
“I think the days when this was just a transactional business where you just push a piece of paper, and CMHC and [the lender] give you back an approval in sometimes less than a minute – those days are gone” be a very effective and dependable source of near- and non-prime single-family mortgage applications – not just for us, of course, but also for our competitors.”
Fostering relationships Looking to the future of the mortgage industry, Jones foresees a much closer relationship between customers and mortgage brokers than there has been in the past. “Where the mortgage broker may be selling a product on our behalf to the customer, at
Jones admits it’s going to become more difficult for brokers to balance those interests, but those who do it well will be even more successful in the years ahead. “I think the days when this was just a transactional business where you just push a piece of paper, and CMHC and [the lender] give you back an approval in sometimes less than a minute – those days are gone,” he says. “I think the day when you create value for the customer by giving them an honest appraisal of what their options are, what limits they can expect,
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PROFILE Name: Michael Jones Title: President and CEO Company: Equity Financial Trust Company Based in: Toronto Years in the industry: 35 Career highlight: “The year in which Xceed crossed $1 billion a year in funding in the near- and non-prime business. We did it by [focusing] on getting as much of our business as we could from as few broker houses as possible. The funding ratio we were able to achieve with people whom we trusted and who trusted us demonstrated just how effective the channel could be.” Career lowlight: “Some of the issues related to the ability to fund mortgages in 2008, when the problems south of the border washed up onto our border. Even though there was no equivalent problem in Canada, we all got affected by it.”
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PEOPLE
INDUSTRY ICON
what they can hope to gain – not just at closing, but also 12 or 24 months from now when they’ve perhaps been able to improve their credit rating, for example – that’s what that path might look like. Those customers will come back to mortgage brokers for that advice because it will have made a big difference in the way they manage their financial affairs.”
Storms ahead The biggest challenges the industry currently faces – and will continue to face – are the ones posed by escalating prices in certain markets, according to Jones.
the threat posed by fintech, but in our space, every deal is different,” he says. “Every deal has a story. I do think the process by which we close a deal will become more efficient, and technology will play a role there. But I don’t think you’re ever going to replace the role of the mortgage broker in giving advice to the customer, and it’s going to be very difficult to replace the human underwriter in assessing all the risks in a file. “The underwriter and the broker may use more technology than they have in the past,” he adds, “and they may use more technology to make intelligent decisions about how best
“Every deal has a story. I do think that the process by which we close a deal will become more efficient, and technology will play a role there. But I don’t think you’re ever going to replace the role of the mortgage broker in giving advice to the customer” “In cities such as Vancouver and Toronto, house prices are rising more quickly than incomes are rising, so it’s creating affordability issues,” he says. “That’s a big challenge for us. Our hope is that that will self-correct at some point, because there just won’t be sufficient income to drive those prices up any further, and we’ll get back to some balance as far as affordability is concerned.” While many lament the impact of technology as another challenge, Jones believes it will help enhance the client experience while also making it easier for brokers and lenders to do their jobs. As for fears of automation eventually replacing brokers altogether? Jones isn’t worried. “I know there has been a lot of talk about
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to serve the customer and protect the lender than they have in the past, but I don’t think it’s going to replace either of them anytime soon.” In Jones’ opinion, tackling the challenges ahead will require all parts of the industry to come together for the good of the customer. “I think they need to work with lenders such as Equity and our competitors to create an environment that is one where customers will get valuable advice and one where lenders can depend on the information that is presented to them – either indirectly through the customer or directly from the broker,” he says. “[If we] can depend on that information as being valid and supportable, [it will] bring to the industry a cloak of respectability that it hasn’t always had in the past.”
EQUITY FINANCIAL TRUST AT A GLANCE
FOUNDATION Equity Financial Trust began in 1990 and became a regulated trust company in 2006; it entered the mortgage market in 2011
SPECIALTY It’s one of the few federally regulated trust companies in Canada that focuses on alternative mortgages
OWNERSHIP Equity Financial Trust is a subsidiary of Equity Financial Holdings, which trades on the TSX under the symbol EQI
ACCOLADES In CMP’s 2017 Brokers on Lenders survey, the company earned two gold medals, two silver and one bronze from brokers
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79134
We Stand for All Canadians Together we’ve made a major impact helping thousands of Canadians feel the pride of owning their own home, even when they thought it wasn’t possible.
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FEATURES
SPECIAL REPORT
TOP BROKERAGES CMP shines the spotlight on 48 brokerages that are outperforming the competition and shaping the course of today’s mortgage industry
AMID CHANGING regulations and an evolving real estate marketplace, mortgage brokers have had to learn to navigate murky waters while maintaining exceptional customer service. But as the popular saying goes, “teamwork makes the dream work,” and these 48 brokerages truly are a testament to the fact that coming together as a team can better enable mortgage brokers to make the dream of homeownership come true for thousands of Canadians. Collectively funding more than $14 billion in 2016, these brokerages represent the top teams in Canada’s mortgage industry. Their insights provide a unique glimpse into what it takes for a team of brokers to consistently reach new heights.
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www.mortgagebrokernews.ca
TOP BROKERAGES INDEX COMPANY Blue Pearl Mortgage Group Canada Mortgage & Financial Group Canadian Mortgages Inc. CanWise Financial Centum Champions Centum Metrocapp Wealth Solutions CYR Funding DLC Acer Mortgage DLC Canadian Mortgage Experts DLC Capital Region DLC City Wide Mortgage Services DLC Centre-Ouest DLC Clear Trust Mortgages DLC Denova Group DLC Elite Lending Corp. DLC Entrust Mortgage Services
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CRUNCHING THE NUMBERS: CMP’S TOP BROKERAGES
820
Average number of transactions per brokerage
$21.7 million Average volume per broker/agent
30
Average number of agents per brokerage
10
Average number of years in business
$295 million Average volume funded per brokerage
WHERE ARE THE TOP BROKERAGES HEADQUARTERED? Ontario
53%
British Columbia
20%
Alberta
14%
Quebec
4%
Newfoundland & Labrador
4%
Nova Scotia
2%
Saskatchewan
2%
COMPANY DLC Hilltop Financial DLC Home Capital Solutions DLC HT Mortgage Group DLC Mortgage Evolution DLC Mortgage Excellence DLC Primaria Mortgages DLC Regional Mortgage Group DLC Service First Mortgages DLC The Valko Team DLC White House Mortgages Finevo Lending Group Loewen Group Mortgages Mortgage Approvals Ottawa Team Mortgage Architects Big City Financial Neighbourhood Dominion Lending Centres RLH Mortgages
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COMPANY The Mortgage Centre DurhamMortgage.com The Mortgage Centre Mountainview Mortgage The Mortgage Centre Pilrock Mortgages The Mortgage Centre RDM Financial Consultants The Mortgage Centre Rock Capital Investments The Mortgage Centre YourMortgageYourWay.ca TMG The Mortgage Group – Airport Drive Verico Advent Mortgage Services Verico East Coast Mortgage Brokers Verico Excel Mortgage Canada Connection Verico Premiere Mortgage Centre Verico Streetwise Mortgages Verico The Mortgage Advisors Verico Tribe Financial Group Verico Ultimate Mortgage and Finance Solutions Verico Xeva Mortgage
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FEATURES
SPECIAL REPORT
VERICO TRIBE FINANCIAL GROUP
DLC HT MORTGAGE GROUP Grande Prairie, AB
Burlington, ON
Led by three managing partners with more than 12 years of experience, Tribe Financial Group launched just over a year ago with only five agents; today, the brokerage has grown to a team of 18 people. The company’s aim is to provide personalized financing solutions to clients while keeping both their short- and long-term goals in mind. It also ensures its clients are continuously educated and updated with regular blog posts about matters such as regulatory and rate changes. Tribe does its best to live up to its name by making sure that everyone grows and develops as a team through weekly training and education sessions. The managing partners themselves are involved in the training programs and also actively provide ongoing mentorship to agents in order to equip them to perform and earn at top levels. In 2016, the team funded more than 200 loans for a volume of $250 million.
HT Mortgage Group has a strong team of agents who are deeply rooted and invested in their communities through their involvement in various nonprofit organizations. HT Mortgage Group’s agents have also built strong referral relationships with Realtors, financial planners, lawyers, accountants and builders, all of which contribute to the brokerage’s value-added proposition for its clients in terms of home-buying, financing and money management. The brokerage considers its mentorship program – in which new agents are assigned to shadow one of the four partners in the firm – to be its competitive edge. The partner coaches the new agent on best practices both in the office and in the industry as a whole, which saves them from learning by trial and error. Partners also provide guidance on concerns such as file structuring, lead generation and client objection resolution. “We’ve been a Dominion Lending Centres brokerage in our community for 10 years and have a team of caring, intelligent, hard-working agents,” says broker Megan Lemay. “Each of our agents is active in our community in a different way. Together, our agents have 80 years of cumulative experience, which has been such a blessing with all the guideline changes over the last couple years.”
CENTUM CHAMPIONS Mississauga, ON
The team at Centum Champions had an excellent 2016, surpassing its 2015 volume by $41 million. Led by owner and broker Sanjeev Gupta, Centum Champions closed 275 deals last year, amounting to $125 million.
VERICO STREETWISE MORTGAGES Woodbridge, ON
Armed with more than 40 years of combined finance experience, Verico Streetwise Mortgages focuses on providing tailored mortgage strategies and lending advice to investors, entrepreneurs and homebuyers in the GTA. Specializing in investment property financing and self-employed mortgage financing, Streetwise closed 200 deals in 2017. Using a proprietary planning process known as Goals-Based Financing, Streetwise has enabled clients to create multi-property investment portfolios to achieve their cash flow and retirement goals. “Working with other trusted advisors in the areas of legal, accounting, insurance and investment strategy, we supplement the financing advice with other relevant advice to ensure that financing fits within the client’s overall financial plan,” says a team member. Streetwise is currently working on developing Streetwise Academy to offer agents tools and resources to help them take their mortgage business to new heights.
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DLC REGIONAL MORTGAGE GROUP Red Deer, AB
Now in its 20th year of operation, Regional Mortgage Group remains one of the top 20 offices within the DLC network, having funded more than $266 million in mortgages last year. The company extends its resources to help fund other dreams as well. Over the past 14 years, Regional Mortgage Group has raised more than $2 million for children’s charities and local organizations, including the Kids Cancer Care Foundation and Central Alberta Women’s Emergency Shelter. The brokerage also regularly organizes activities such as fundraising golf tournaments and breakfast programs for schools within the Red Deer community. Following the recent completion of succession planning, Regional Mortgage Group’s innovative team of new leaders is looking forward to being equally client- and broker-centric, keeping in mind the challenges that both groups face in today’s market.
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FEATURES
SPECIAL REPORT
TOP 10 BROKERAGE BY VOLUME
DLC CLEAR TRUST MORTGAGES Vancouver, BC
A combination of collaborative culture, continuous learning and supportive leadership has made Clear Trust Mortgages successful. As head of the team, Robert Afan has instilled in his brokers the importance of fostering trust in clients by always looking after their cost concerns and ensuring that they are educated in the process. He has also set up a nurturing and empowering work environment for brokers, encouraging them to work as a team and not think of each other as competitors –
DLC DENOVA GROUP Mississauga, ON
“If you want to go fast, go alone. If you want to go far, go together.” That’s the motto of Denova Group, which focuses on the long run by building a culture that treats brokers and clients as family and doing everything it can to meet their needs. With access to more than 50 top lending institutions in Canada, Denova Group places all types of mortgages, including purchases, refinances, equity take-outs, debt consolidations, renewals and mortgages for the self-employed. In the past year, the company has funded more than $250 million in just over 500 deals. Denova takes great care in building strong relationships with its lenders and providing a solid support structure to its brokers, organizing regular ‘lunch and learn’ sessions with lenders to ensure the team stays up-to-date with the latest policies and capitalizes on niche products.
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something that’s quite rare in the industry. Clear Trust Mortgages specializes in institutional lending, alternative lending and private lending, while also operating a commercial mortgage arm. To provide full support to its brokers, the company regularly conducts training, including orientation and bi-weekly lender workshops, joint sales calls, one-on-one focus coaching sessions, and IT support. In 2016, the Clear Trust team closed 2,000 deals and funded well over $700 million.
DLC HOME CAPITAL SOLUTIONS Stoney Creek, ON
Managed by owners Trevor Daly, Sarah Makhomet and Jonathan Tillger, DLC Home Capital Solutions has already come a long way since opening its doors in January 2016, when Daly merged his brokerage with Makhomet and Tillger’s operation. Offering all types of mortgages, including residential, commercial, industrial, agricultural, CHIP and private lending, Home Capital Solutions has more than 80 agents across nine offices in Ontario. The brokerage also takes time to serve its communities by supporting programs such as Hamilton Food Share, the Stoney Creek Chamber of Commerce, the Stoney Creek Run Club and the DLC Bikes for Kids program. “Our brokerage strives to be top of mind when clients are considering their mortgage options by building solid relationships with our lenders and providing our agents with access to the best resources in the business,” a team member says. “We are working toward a unified goal at Home Capital Solutions, relying on our agents’, brokers’ and lenders’ knowledge and expertise to create an exceptional financial service experience for our clients.”
www.mortgagebrokernews.ca
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TOP 10 BROKERAGE BY VOLUME
DLC CITY WIDE MORTGAGE SERVICES Vancouver, BC
For the second year in a row, City Wide Mortgage Services has landed a spot on CMP’s Top Brokerages list, both times ranking in the top 10 by volume. Guided by teamwork and its SPIRIT [service, professionalism, integrity, responsibility, impressive, thankful] vision statement, City Wide takes pride in being a small, close-knit family of mortgage brokers. “We care about the success of our clients and our agents, and it shows,” a team member says. City Wide’s dedication has paid off – last year, the brokerage funded an average of nearly $20 million per agent.
DLC PRIMARIA MORTGAGES Vancouver, BC
“Expert advice, first-class service and undoubted trust” are the three foundational pillars of Primaria Mortgages. With a team made up of four female brokers with budding families – two of whom have joined the business within the last year – working together closely has become a necessity and something that has set the brokerage apart from its competition. “We pool our resources, knowledge and experience to ensure every client has full confidence in the Primaria experience,” one broker says. “Business is important, and so is family. We believe
we are stronger together and that, as a team, we truly can have the best of both worlds.” In 2016, with just two brokers, Primaria funded more than $81 million in deals over 170 transactions. In between funding loans, the brokerage spends time giving back to the community by partnering with local charities.
DLC CAPITAL REGION Edmonton, AB
Even with a relatively small team of six, DLC Capital Region was able to achieve nearly $140 million in volume last year across more than 400 transactions. In 2016, the four agents who were on the team at the time each averaged an annual volume of $34.5 million. Catering to every type of deal and client, Capital Region specializes particularly in first-time homebuyers and newcomers to Canada, working with the nation’s largest banks, credit unions, trust companies and financial institutions to offer the best rates, products and services.
LOEWEN GROUP MORTGAGES Burlington, ON
Despite being a small team of six, Loewen Group Mortgages has been recognized year after year at the Canadian Mortgage Awards for its incredible service to clients. Most recently, Loewen Group received the award for Best Customer Service from an Individual Office at the 2017 CMAs. With more than 350 five-star reviews on Google, Loewen Group prides itself on “valuing our clients before, during
and after they close” and “with continued support throughout their mortgage term.” Closing more than 423 deals worth over $135 million in 2016, the brokerage far exceeded its 2015 achievement. Equally dedicated to giving back to the local community, Loewen Group has teamed up with Food For Kids to help children who are without a sustainable food source.
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FEATURES
SPECIAL REPORT TMG THE MORTGAGE GROUP – AIRPORT DRIVE Saskatoon, SK
Despite being run by four young brokers in their late 20s to mid-30s, this brokerage has a wealth of experience – the brokers hold a combined 38 years of experience, which helps them get deals approved faster without the stress. Since 1990, TMG The Mortgage Group has helped a quarter-million Canadians find the right solutions to suit their financial needs, earning a respected reputation with lenders and clients as a leading-edge mortgage expert, supported by more than 700 accredited mortgage professionals spread across major metropolitan cities and regional areas. Award-winning leaders in mortgage innovation and technology, TMG has developed proprietary tools and software for efficient sourcing and managing of financing solutions. From global TV appearances and up-to-the-minute industry news to informative introductory videos, TMG is widely considered a mortgage education resource.
DLC MORTGAGE EXCELLENCE Lethbridge, AB
DLC THE VALKO TEAM Kitchener, ON
Broker and owner Tracy Valko has led DLC The Valko Team for the past nine years and has grown her business tremendously over the last five years. Together, the team is on track to fund nearly $80 million this year, surpassing the $77 million benchmark it set in 2016. For the past two years, The Valko Team has received the Consumer Choice Award for Favourite Mortgage/Lending Company in the Cambridge-Kitchener-Waterloo area. “Our office works to separate ourselves from our competitors with our outstanding service and community relations,” Valko says. “We are always in touch with our clients with useful market information, and we hold several events that are free for our clients and community, including an outdoor movie in the park behind our office and a free skate each winter. We support a different charitable organization with each event and put time aside throughout the year to volunteer with Children’s Services, the House of Friendship, Operation Christmas Child and the Juvenile Diabetes Research Foundation.”
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The team at DLC Mortgage Excellence has been focusing on increasing every associate’s quality of life by developing a comprehensive underwriting team. “We are concentrating on providing agents with stress-free vacation time, as well as total client care when unforeseen circumstances takes an agent away from their business,” a team member says. “A great example of this was earlier in the year, when one of our top agents unexpectedly had to leave his business for a week because he was having a baby two months earlier than expected. Our underwriting team stepped in to all of his deals so he could take the time to be with his family. He then went back to his office without having to catch up on everything he missed. The great part was that his clients didn’t even notice a difference!” The brokerage’s “stress-free” culture has certainly paid off – last year, Mortgage Excellence funded 670 loans worth more than $187 million. “Our goal at DLC Mortgage Excellence is to give each agent the best experience,” the team member says, “not only for their clients, but also for their family.”
www.mortgagebrokernews.ca
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5/10/2017 9:00:28 AM
INTRODUCING THE NEW
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FEATURES
SPECIAL REPORT VERICO THE MORTGAGE ADVISORS Ottawa, ON
THE MORTGAGE CENTRE PILROCK MORTGAGES Vaughan, ON
The Mortgage Centre Pilrock Mortgages was founded just last year, but its owners have already accumulated a wealth of knowledge and experience in more than two decades in the industry. The brokerage aims to help agents build a solid career in mortgages and achieve their long-term goals as they work hard to fulfil the goals of their clients. The owners themselves offer unlimited support and knowledge, and are always eager to help agents transition into a new role in the industry. Recently, Pilrock Mortgages acquired the MCC-Mortgage Knights, a team of close to 30 agents with volume in the $150 million range. This year, Pilrock Mortgages is on track to fund more than $200 million, surpassing its 2016 volume of $155 million.
THE MORTGAGE CENTRE DURHAMMORTGAGE.COM
Founded by mortgage brokers and business partners Matt Daniels and Christa Tessier, The Mortgage Advisors is one of Eastern Ontario’s fastest-growing brokerages. Driven by a vision to create an “atmosphere of excellence where everyone succeeds,” the brokerage was recently a finalist for Mortgage Broker of the Year (25 Employees or More) at the 2017 Canadian Mortgage Awards. The Mortgage Advisors have also earned top-tier volume status with several lenders, ensuring priority service, competitive rates and top-notch products for their clients. In addition to relying on “support, support, support” to propel the brokerage ahead of its competition, Daniels and Tessier have adopted an open-door policy and hired a dedicated director of sales in an attempt to stay ahead of the learning curve in an everchanging industry.
Ajax, ON
In 2016, DurhamMortgage.com received the Employer of Choice Award at the Canadian Mortgage Awards – a direct reflection on the hard work and dedication of its staff, agents and brokers, not to mention the team’s incredibly low turnover. Every agent and broker maintains an open-door policy and a strong willingness to help support each other, and the brokerage’s leadership is dedicated to building and maintaining a familyfocused work environment. DurhamMortgage.com strives to ensure that all its member agents have a fair and flexible work environment that complements their lifestyle needs by providing work-from-home options and support for their business needs, such as access to work supplies, an office for privacy and appointment ease, and front-desk staff to help direct calls and keep them informed of any changes with policies, rates or business meetings. Since starting out, DurhamMortgage.com has increased its administrative staff to accommodate its agents’ needs. Learning and development consists of focused monthly meetings to discuss goal development plans and procedures in accordance with current events in the market; the meetings often include guest speakers from various industry organizations.
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DLC MORTGAGE EVOLUTION Lower Mainland, BC
“Two heads are better than one” at Mortgage Evolution. Together, Susie Inglis and Denise Devante lead 28 agents at the brokerage that has been servicing British Columbia’s Lower Mainland for the past 16 years. Last year, Mortgage Evolution’s team funded 845 deals worth $407 million.
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DLC ELITE LENDING CORP. Vancouver, BC
DLC Elite Lending Corp. considers its service a perfect blend of professionalism and friendship – its agents seek to gain a thorough understanding of clients’ mortgage needs and lifestyles and set the right expectations before recommending the most fitting mortgage. Agents also make sure to regularly touch base with clients, regardless of any update from the lender, to ensure they remain attuned to the clients’ needs. Internally, the company strives for a ‘work hard, play hard’ culture, maintaining a balance between work and personal life while encouraging collaboration and interdependence among its team members.
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FEATURES
SPECIAL REPORT DLC ENTRUST MORTGAGE SERVICES Chilliwack, BC
Entrust Mortgage Services has been servicing the mortgage needs of its community for nearly a decade, and it closed out 2016 with more than $436 million in loans funded across 1,300 deals. Even during a challenging year, the Entrust team’s productivity never wavered. “Our brokers are experienced folks who know how to put deals together,” says owner Steven Brouwer. “We have the knowledge and the will to help each and every client out, no matter how complex. The team is about the customer experience, and that leads to more referrals. Our key strategy is treating people how we would want to be treated. Every phone call and every conversation is important, and the only way to put deals together is with knowledge and hard work. Finding a home for every mortgage is not easy, so we make sure that all our brokers know the lender guidelines and policies, ensuring us the ability to place that mortgage with an appropriate lender.”
MORTGAGE APPROVALS OTTAWA TEAM Ottawa, ON
DLC SERVICE FIRST MORTGAGES Newmarket, ON
Jason Anbara leads the Mortgage Approvals Ottawa Team, which offers mortgage services for everything from purchases and refinances to investment and commercial loans. In 2016, Anbara funded 129 loans worth more than $37 million. In addition to being a top 1% mortgage agent in Canada, Anbara proudly serves the Ottawa community through various charitable events.
As its name implies, service comes first at Service First Mortgage, and that’s evident in the brokerage’s 2016 gains. After achieving $180 million in volume in 2015, the office funded a total of $200 million across 600 transactions last year.
RLH MORTGAGES Laval, QC
With team leader Ryan La Haye at the helm, RLH Mortgages closed more than $196 million in mortgages last year. Since 2006, the RLH team has striven to provide the best rate and products to meet clients’ needs. In addition to providing financing options, RLH also offers debt management advice and consultation, as well as in-depth economic analysis of markets to help clients determine which product to choose and which conditions to favour. RLH also provides coaching for brokers – including psychological coaching, transformational language, economic education and financial planning strategies – to add value to the borrower experience.
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CANADIAN MORTGAGES INC. Thornhill, ON
Funding $185 million in 2016, Canadian Mortgages Inc. [CMI] prides itself on being a one-stop shop that offers “quality service, integrity, honesty and team support” to meet its clients’ needs. Recognizing the tools needed to build a successful team, CMI’s employees operate under the motto: “Your success is our success, and together we will build it.” Led by president and principal broker Alan Jaskolka, who founded the brokerage in 2005, CMI now consists of more than 40 agents and staff members and has four additional businesses – CMI Lending, CMI Mortgage Investment Corporation, CMI Capital and CMI Residential – under its umbrella.
Email lender notes, application, and credit bureaus to:
deals@vwrcapital.com D IMITRI K OSTUROS
Chief Operating Officer dimitri@vwrcapital.com
P AULA H UTTON
BDM - Prairies paula@vwrcapital.com
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FEATURES
SPECIAL REPORT TOP 10 BROKERAGE BY VOLUME
NEIGHBOURHOOD DOMINION LENDING CENTRES Newmarket, ON
VERICO EAST COAST MORTGAGE BROKERS St. John’s, NL
Established just six years ago, East Coast Mortgage Brokers [ECMB] still considers itself a relatively new player in the industry, catering primarily to first-time buyers in Newfoundland & Labrador. The team at ECMB has a combined experience of more than 70 years in financial services, including commercial finance, finance planning and investment advice, in addition to mortgage lending. Locally, ECMB is part of the St. John’s Board of Trade. The company is also actively involved in various community causes, such as the local Rotary Club, the Ronald McDonald House, the Make-A-Wish Foundation, and Big Brothers and Big Sisters. In December 2016, ECMB was honoured with the Board of Trade’s Community Service Support Award.
DLC WHITE HOUSE MORTGAGES Vernon, BC
Since Deb White started White House Mortgages 12 years ago, the brokerage has grown to 23 brokers across six locations throughout the British Columbia interior. Based in a small community, the brokers at White House Mortgages have the ability to really connect and grow with their clients. This has also allowed them to be an integral part of the community, whether through volunteering or by being active members in various community organizations and initiatives. This level of dedication has made White House a household name and a go-to expert for mortgage and money management.
Founded in 2009 by Bill Nugent and Gary Meger, Neighbourhood Dominion Lending Centres [NDLC] has since grown into one of the top-performing mortgage teams in Ontario, boasting more than 66 agents across the province. For the past eight years, NDLC has been number one or two within the entire DLC network in terms of volume and number of mortgages funded. Nugent and Meger have 60 years of combined mortgage brokering experience and share a common vision of providing their agents with the best tools, ongoing education and support to ensure individual success. Operating under the motto of “high trust, high touch and high tech,” NDLC provides agents with regular sales meeting and events, fulltime IT support, competitive splits and volume bonuses, and more. Reflecting its dedication and commitment to clients, referral partners and employees, NDLC was named Mortgage Brokerage of the Year (25 Employees or More) at this year’s Canadian Mortgage Awards.
CANADA MORTGAGE & FINANCIAL GROUP Mississauga, ON
Canada Mortgage & Financial Group [CMFG] is an established brokerage and lending firm well known for its leadership and mortgage originations in Canada. The team has developed alternative products that are not accessible through institutional or subprime lenders, including Purchasers Deposit Fund, Shariah Equity Fund and Purchase Assignments, which enables a higher successful rate of borrowing. Founder Ameera Ameerullah and her team are known for their deal structuring and execution. Ameerullah has been recognized by CMP as a Woman of Influence and Top Commercial Broker, and was the 2017 Canadian Mortgage Award winner of Best Alternative Lending Broker in Canada, in addition to several other accolades. “The most important quality we retain, as well as look for in others we work with, is respect,” Ameerullah says. “I think this simple word says so much. Respect is how you treat yourself, family and people you encounter every single day. Respect transcends into more qualities than you can imagine. It often says so much without saying anything at all.”
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CANWISE FINANCIAL Toronto, ON
James Laird launched CanWise Financial just three years ago after serving as COO and partner of True North Mortgage. In the short time since its launch, CanWise has already been recognized as a top-performing brokerage and was recognized as Best Newcomer, Mortgage Broker Firm at the 2017 Canadian Mortgage Awards. “Our 2016 volume grew by 142% over 2015,” Laird says. “We continue to focus on the technology and team that will provide the customer with as efficient a mortgage transaction as possible.” Understanding that consumers value their time, CanWise has made a conscious effort to assemble a team of highquality professionals to deliver concise, knowledgeable service and great mortgage rates. “Everyone on the CanWise team is knowledgeable and experienced, and truly cares about helping Canadians with their mortgage,” Laird says. “We continue to develop and invest in technology in order to make the process as efficient as possible.”
Hello neighbour… We just moved in.
DLC HILLTOP FINANCIAL Langley, BC
Boasting a small, dedicated team, Hilltop Financial takes pride in its ability to maintain enough volume to meet the needs of different types of clients. From residential mortgages to private and commercial deals, Hilltop Financial strives to be Langley’s “hometown one-stop shop” for mortgages. The company actively participates in community volunteer efforts, which have contributed immensely to its success and branding in Langley.
Hi there neighbour, allow us to introduce ourselves. For mor than 30 years, Kokanee Mortgage has been a trusted partner in alternative lending throughout smaller cities and towns in Western Canada. Today we’re excited to announce that we are now expanding into Ontario. To learn more about our new expanded lending areas, or sign up for our newsletter updates please visit us online at www.KokaneeMortgage.com or call us at 1 844 KOKANEE.
We’ll make it happen.
www.mortgagebrokernews.ca
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FEATURES
SPECIAL REPORT THE MORTGAGE CENTRE MOUNTAINVIEW MORTGAGE Burlington, ON
BLUE PEARL MORTGAGE GROUP Surrey, BC
With access to more than 50 of Canada’s top lending institutions, Blue Pearl Mortgage Group places all types of mortgages, including home purchases, renewals, refinances, construction mortgages, commercial mortgages, reverse mortgages, debt consolidations, and mortgages for self-employed individuals and those with bad credit. In addition to helping British Columbia and Alberta buyers secure financing, the company added Ontario to its portfolio in May 2017 and is looking forward to growing this market through the expertise of president and CEO Nitesh Prakash, who spent several years of his finance career in the Toronto area. “Blue Pearl Mortgage is not your average brokerage firm,” a team member says. “We pride ourselves on being different compared to the average brokerage. Since the inception of Blue Pearl Mortgage Group, we knew we wanted to build a unique team with a high-performance culture with a deep commitment to our clients and have the ability to be organic and go with the flow, and create a brand and image that best fits within our team and clients. Our core values and team culture allow for a fun and exciting environment, and that energy is passed on to our clients, making them feel they are part of our unique culture.”
CENTUM METROCAPP WEALTH SOLUTIONS North York, ON
Last year was a standout one for Centum Metrocapp Wealth Solutions. Together, the team funded $117 million in loans in 2016, an impressive $42 million increase over its 2015 volume. They did it by sticking to the motto “provide a solution for every situation,” along with five other key tenets: ingenuity, thinking outside the box, hustle, teamwork and never giving up on clients. The Metrocapp team takes pride in going above and beyond to educate clients and help them meet their financial goals.
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Founded by Carolyn Callero and Anthony Spadafora, the Mountainview Mortgage team has nearly 75 years of combined history in financial services and the mortgage industry, enabling it to offer the best of both worlds. Across three offices in Ontario, the company’s specialists seek to maintain a hands-on approach toward clients while ensuring continuous innovation to find the most fitting solutions. Earlier this year, Mountainview was named a platinum Halton Hills Readers’ Choice brokerage by the Georgetown Independent/Acton Free Press.
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FEATURES
SPECIAL REPORT FINEVO LENDING GROUP Calgary, AB
With offices in Calgary, Toronto and Vancouver, Finevo Lending Group provides innovative financing solutions across Canada, focusing on referral partnerships within the financial planning industry while assisting with asset allocation and financing strategies. In April, the company changed its name from Heritage Lending Group after its principals purchased the business from Heritage Financial Group. As Finevo, the company hopes to introduce a fresh corporate identity and market presence, and move forward in the industry through rapid growth and expansion.
VERICO ADVENT MORTGAGE SERVICES Unionville, ON
TOP 10 BROKERAGE BY VOLUME
VERICO XEVA MORTGAGE Surrey, BC
Despite the ever-changing market over the last 12 months, Xeva Mortgage has experienced an incredible year of growth. Boasting more than 140 years of combined experience in banking and real estate, Xeva Mortgage funded $730 million in 2016. “One of our corporate mandates has always been to provide key support through education and mentorship to our brokers,” says CEO Trevor Hansen. “This was more critical than ever with the new lending restrictions introduced in October of 2016. Xeva Mortgage invests in not one, but two annual conferences each year for our agents. We recognize the value in continuing education for our agents and the positive effect this has on their clients. We also stressed the importance of our brokers becoming a trusted advisor to help educate clients on these confusing times in our industry. Finally, we moderate a weekly episode of Xeva TV, hosting our lender and industry partners. These episodes keep our agents updated on the latest product offerings and unique tools to support our brokers’ needs.” From Xeva’s inception, the firm’s Underwriting Centre and Mastermind Group have been instrumental in the team’s success. According to Hansen, the Mastermind Group “[keeps] our brokers focused, educated and motivated, along with finding a balanced lifestyle.” The Underwriting Centre has allowed Xeva’s agents to focus on their clients and referral partners while a team of underwriters handles their deals. “Xeva’s Underwriting Centre is highly utilized by 95% of our agents,” Hansen says, “which provides vast efficiencies and strong relationships with our lender partners.”
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“We always look to find value for our clients,” says Jim Tourloukis, president of Advent Mortgage Services. “Whether that means saving time or money, or assisting with mortgage strategies, our clients come to us for these reasons and always come out ahead.” Advent closed more than 760 deals in 2016, with a volume of $363 million, and Tourloukis credits his team for the brokerage’s success. “We always say what we mean and do what we say,” he says. “Given our limited human resources, we cannot afford to waste either our clients’ or our time. If we cannot help or if our offering is not the best for the client, we say so upfront.”
THE MORTGAGE CENTRE ROCK CAPITAL INVESTMENTS Orangeville, ON
Dwight Trafford and his team at Rock Capital Investments experienced 40% year-over-year growth in 2016, closing $170 million in volume last year. With more than 20 years of experience servicing the Orangeville community, Trafford and his team understand the unique needs of the area and its borrowers.
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DLC CENTRE-OUEST Montreal, QC
Location has been a key factor in the success of DLC Centre-Ouest. With an office located in the heart of downtown Montreal and led by owner and broker Elie Melki, Centre-Ouest offers residential, commercial and private funding. In 2016, Centre-Ouest’s funded volumed totalled $156 million, surpassing its 2015 total.
THE MORTGAGE CENTRE YOURMORTGAGEYOURWAY.CA Toronto, ON
VERICO EXCEL MORTGAGE CANADA CONNECTION Kitchener, ON
In addition to serving Ontario borrowers with their financing needs, the team at YourMortgageYourWay.ca is also dedicated to an excellent cause. As part of The Mortgage Centre’s network of more than 1,200 agents and brokers, the brokerage has partnered with Make-A-Wish Canada to make children’s dreams come true by raising more than $4,100 at a fundraising event in support of the charity. Apart from its charitable efforts, the team at YourMortgageYourWay.ca strives to be “the best-run mortgage brokerage in Ontario, with honest and professional advice that our clients can count on.” Driven by the core values of integrity, exceptional customer service, education, a family-friendly working environment, building lasting relationships, and adding value for clients and partners, the brokerage funded more than $146 million in mortgages in 2016.
For nearly a decade, the 13 agents at Excel Mortgage Canada Connection have operated out of Ontario, led by Vas Anton. In 2016, the brokerage funded more than $96 million across 270 transactions. By providing clients with “honesty and competence” while using advanced math techniques to minimize penalties, the brokerage has been able to differentiate itself from its competition.
www.mortgagebrokernews.ca
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FEATURES
SPECIAL REPORT THE MORTGAGE CENTRE RDM FINANCIAL CONSULTANTS
DLC ACER MORTGAGE Richmond, BC
Over the past six years, DLC Acer Mortgage has been growing rapidly by constantly watching market trends, building and expanding quality client relationships, and keeping abreast of policy and program changes made by lending institutions. Founder and president Tina Mu has more than 15 years of banking and finance experience, having arranged upwards of $1 billion in mortgages for her clients over the course of her career. Mu was also a finalist for Commercial Mortgage Broker of the Year at this year’s Canadian Mortgage Awards. Ranked as one of the top mortgage lending teams within the DLC network, Acer Mortgage’s six agents funded a total of $141 million across 104 deals in 2016.
CYR FUNDING Thornhill, ON
In business for 43 years, CYR Funding sources financing for all types of properties across Ontario, working under the motto: “as long as it makes sense, we can do the deal.” CYR strives to be the best source of deals for its clients and source of learning for its agents. Its broker of record, Rena Malkah, is a past president of the CMBA and has served on its board of directors.
Oakville, ON
Winner of The Mortgage Centre’s Top Franchise Award for 10 years, and home to the first and second top-producing agents in the MCC national franchise system, RDM Financial Consultants has proven itself to be one of the very best mortgage offices in the network. Thanks to its team of experienced professionals, who have strong lender relationships and a solid understanding of the mortgage business, RDM has been able to adjust to changing market conditions over the past year. In addition, the brokerage has made efforts to standardize and streamline processes to ensure agents and brokers can dedicate their time to developing their client base. “We focus on putting the clients’ best interests first,” says Brenda Landry, RDM’s chief administrative officer. “While it may appear that the agent won’t always thrive with this reasoning, the reward comes from clients who trust us with their repeat business and the referral of family and friends. Our mortgage agents/brokers are highly experienced, tenured professionals who have long-term, established relationships within the market, which provides a continued source of business.” Taking a hands-on approach allows RDM agents to become well versed in clients’ financing needs. “We get to know them personally because we want them to feel like family,” Landry says. “The goodwill we build with our clients always comes back to us in a positive manner.”
MORTGAGE ARCHITECTS BIG CITY FINANCIAL Calgary, AB
In 2016, the team at Big City Financial completed 300 trans actions worth $100 million – a 30% increase in volume over 2015. Last year, Matthew Kee joined Braden Gabert as business partner at the firm, bringing further knowledge and expertise to Big City Financial’s clients. According to Gabert and Kee, “Big City Financial works very hard on creating a team-based atmosphere. We are all about our agents. We strive to help them grow and be successful in both life and business.”
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www.mortgagebrokernews.ca
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PROVIDING PROVIDING AUTHORITATIVE AUTHORITATIVE PROVIDING AUTHORITATIVE
PROPERTY PROPERTYDATA DATA PROPERTY DATA TO TO MORTGAGE MORTGAGE BROKERS, BROKERS, LENDERS LENDERS & INSURERS & INSURERS TO MORTGAGE BROKERS, LENDERS & INSURERS
Mortgages Mortgages on Title on Title Mortgages on Title
Equity Equity Estimate Estimate Equity Estimate
Value
Neighbourhood Neighbourhood Profile Profile Neighbourhood
purview.ca/brokers purview.ca/brokers | purview.ca/lenders | purview.ca/lenders purview.ca/brokers | purview.ca/lenders
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Ownership
Fraud Fraud Check Check Fraud Check
Property Property Value Value Property
Sales Sales History History Sales History
Ownership Ownership
Profile
Corporate Corporate Sales Sales Corporate Sales
416.643.1027 416.643.1027 | 1.855.787.8439 | 1.855.787.8439 416.643.1027 | 1.855.787.8439
5/10/2017 9:03:42 AM
FEATURES
SPECIAL REPORT VERICO ULTIMATE MORTGAGE AND FINANCE SOLUTIONS Richmond Hill, ON
One of this year’s top-performing brokerages, Ultimate Mortgage and Finance Solutions is making its first appearance among CMP’s Top Brokerages after funding $500 million in loans in 2016. Given the restrictions caused by regulatory changes, Ultimate Mortgage experienced an increase in private financing and Alt-A transactions in 2016. “Thanks to the relationships we’ve forged over the years with our lenders and the resources we have through Verico, we’ve been able to maintain productivity by offering financing options to those who need them,” says principal broker Anthony Quintieri. Aimed at educating clients so they can make informed decisions regarding their mortgage needs, the team at Ultimate Mortgage and Finance Solutions focuses on providing true solutions, rather than simply arranging a mortgage. “By keeping in touch, keeping our clients informed and by providing options to improve their financial situation,” Quintieri says, “we maintain and often exceed our productivity from the previous year.”
VERICO PREMIERE MORTGAGE CENTRE Toronto, ON
Funding 4,083 loans worth $1.23 billion in 2016, Premiere Mortgage Centre has once again proved itself one of the best-performing mortgage brokerages in the business. For the past 10 years, Premiere Mortgage Centre has thrived on a single core strategy: supporting and assisting the growth and plans of each individual broker and agent. “Their success is our success,” says executive vice-president Kerri Reed. “We provide the strong pillars that they need to build a healthy business for themselves. We stand beside them on their journey.” Despite a difficult year for many in the industry, Premiere Mortgage Centre managed to find opportunities throughout 2016 amid ever-changing regulations. “Our agents and brokers worked hard to educate themselves, as well as their referral partners and clients,” Reed says. “They hit the road and went face-to-face, back to the basics of true relationship-building [and] educating on what the new rules truly mean. Knowledge is the key to success.”
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CANADA’S #1 BROKERAGE BY VOLUME
DLC CANADIAN MORTGAGE EXPERTS Surrey, BC
In a year riddled with regulatory changes, DLC Canadian Mortgage Experts [CME] rolled with the punches by staying focused, which resulted in the brokerage closing 2016 with impressive numbers. Topping this year’s list of Canada’s best brokerages with the highest volume, CME funded a whopping $1.36 billion in 2016, or an average of $16 million per agent – a massive increase over the average $13 million per agent in 2015. How did the firm achieve such impressive numbers in such a constrictive market? According to owner and broker Mike Lloyd, it all came down to “focusing on individual accountability, execution of our business plans, strengthening our lender relationships and providing the necessary coaching for our team members to stay focused.” Overall, Canadian Mortgage Experts takes pride in being a team that thinks like a large extended family, Lloyd says, by helping each other when needed and having fun doing it. With a leadership team made up of brokers, Canadian Mortgage Experts has been able to stay connected to the market, as well as current issues, trends and solutions. Even while dedicating their time to supporting borrowers’ needs, CME brokers also find time to support local charitable initiatives. Most recently, the brokerage has been a proud supporter of Breakfast for Learning and Bikes for Kids, donating more than $25,000 so far to the causes.
www.mortgagebrokernews.ca
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25/04/2014 5/10/2017 4:29:10 9:04:03 AM
PEOPLE
BROKER INSIGHT
Small town, big business Mortgage broker Christine Buemann tells CMP why she prefers operating in the small community of Prince George, BC
CMP: How did you get into the mortgage broker industry? Christine Buemann: I’ve always been
lutely love being a mortgage broker. I am a complete mortgage nerd.
interested in real estate and had always used a mortgage broker myself, which was something unique in my community in northern BC. I had always seen the value of a mortgage broker, but it hadn’t even crossed my mind to become one. Then I was going through a transitional time, trying to find out what I wanted to do. I happened to have a friend who is a broker, and he opened the door for me. The rest is history. I’ve now been a broker for seven and a half years.
CMP: How has your market in northern BC been performing lately? CB: The market here has been completely
CMP: How would you describe your time in the industry? CB: It helped that I went in prepared and with realistic expectations. My broker friend encouraged me to save up enough money to account for not making any income for the first six months because everything would be going toward expenses. My experience has been different than most in that I worked really hard to build my business and then had two babies – although there are probably a lot of women who can relate to that. My husband works out of town a lot, so it was a unique experience. That part I was not prepared for, although I don’t know if you can be! In general, the industry is gratifying in the way I thought it would be, and I abso-
44
different than Vancouver. Increases have been slow and steady, and my average mortgage last year was for $239,000. Since the transitional stuff that has happened in the last 12 to 18 months, we are starting to see a spike in prices now more than ever. I’ve been investing in Prince George for over a decade, and we are now starting to see the overflow from the Vancouver market. We are getting investors who see they can buy a nice house for under $300,000 and get really good cash flow.
CMP: What made you decide to pursue your career in a relatively small community? CB: I love operating in a smaller town. Buyers and sellers work together to reach an
agreement, and it’s not as cutthroat. I work exclusively by referrals and never usually do advertising, apart from the occasional radio ad just to create brand recognition. Referrals are huge in smaller communities because everyone knows everyone. I feel there is more pressure to exceed expectations because you know one bad review can be more impactful. The transactional part of the business here is definitely different, and I value that, but the broker-versus-bank dynamic is different here, too. We have far fewer brokers – we are a town of 80,000, and there are maybe a dozen of us. It’s really because of a lack of recognition around what mortgage brokers do – that’s the biggest challenge we face. Up here, brokers really support each other because there are so few of us. We get along well because we have to.
CMP: What’s the secret behind your success in the industry? CB: I think it’s to do with having the
BUEMANN’S TIPS FOR BUILDING RELATIONSHIPS “At the beginning of your career, put yourself out there. When I first started, I sent an email to every single Realtor in Prince George and then followed up asking if they wanted to go for lunch or grab a coffee. I also went to all of their open houses. Also, be humble. I feel sometimes in our industry, we can come with a jaded perspective of how relationships should be, but if we approach them by being humble and kind, it’s easier to build those relationships.”
www.mortgagebrokernews.ca
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FAST FACTS: CHRISTINE BUEMANN
Based in Prince George, BC
Part of DLC Canadian Mortgage Experts
Earned her broker licence at UBC’s Sauder School of Business
“Referrals are huge in smaller communities because everyone knows everyone. I feel there is more pressure to exceed expectations because you know one bad review can be more impactful” ultimate goal of helping people. If you focus on the dollars and how it’s going to serve you, then often the returns will not be as plentiful. Focus on building relationships. Ultimately, that’s what this business is. Cultivating relationships with lenders is something that more brokers need to do, and it’s something that has helped me get
exceptions. I have been able to do deals that others haven’t just by leveraging those relationships. It’s also a part of due diligence: I know I can trust lenders, and they know they can trust me. Relationships with Realtors and clients are, of course, also crucial. At the end of the day, that is the most important aspect of the business.
Named one of CMP ’s Young Guns in 2017
Has been a real estate investor for a decade
Blogs regularly on mortgage and real estate topics
www.mortgagebrokernews.ca
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PEOPLE
CAREER PATH
MOVING ON UP
From working in construction to opening his own brokerage, Len Lane has always had his eye on the next step
1970s COMES TO
An Ottawa Valley native, Lane moved to Alberta at the age of 18, taking a series of jobs in hospitality and construction “The Ottawa Valley had high unemployment in those days, and Alberta offered a chance to work, so I spent $99 on a train ticket and headed for Alberta”
ALBERTA
1989 1994
CRACKS THE BOOKS For much of the ’90s, Lane pursued independent studies in sales and marketing, squeezing in night school between his full-time job and a side gig with a small chemical business “I always had something on the go”
2006
BECOMES A BROKER Feeling that mortgages were the only area of the business he had yet to conquer, Lane got his broker licence and made his name in Fort McMurray during the boom years
“I realized I had just spent the last 10 or 15 years building everyone else’s business – I was tired of building other people’s businesses, and I knew there was an opportunity to build my own business” 2016
TAKES IT TO THE NEXT LEVEL After five years, Lane decided joining DLC was the right move “Gary Mauris finally wore me down! After five years, we looked around and didn’t see the tools to take us to the next level; DLC had the tools that today are advancing our business. This year we will do at least $140 million in mortgages”
FINDS HOMEBUILDING Lane was introduced to the home-building world for the first time when a stint driving lumber trucks was halted by the imposition of a softwood tariff. Undeterred, he transferred his skills to a new sector “[The tariff] killed the lumber industry, which had a big effect on the trucking industry. I ended up driving for a concrete company and ended up running one of their plants; part of that was dealing with commercial sales of concrete to the home-building companies”
1995
GOES INTO SALES After years of working with homebuilders, Lane ultimately decides to enter the business himself, transitioning into sales “It became clear that without a civil engineering degree, there wasn’t much opportunity to progress in the concrete industry. One of the top salesmen in the home-building industry was an acquaintance of mine, and he asked if I wanted to come work with him”
2010
STRIKES OUT ON HIS OWN Just a few short years after getting his licence (and after earning more than $1 million in the first 30 months), Lane reached the goal that had been driving him from the beginning when he opened his own brokerage “I got into [mortgages] with one idea, and that was to have a brokerage. Finding the right team was part of it, and having some volume to make the move”
www.mortgagebrokernews.ca
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PEOPLE
OTHER LIFE
TELL US ABOUT YOUR OTHER LIFE Email mortgagebrokernews@kmimedia.ca
ve s sa y s h e lo M u y re s s ica l a s pe ct s t h e p h y oe uv ri n g t h e o f m a n n d ‘rock’ 44 - pou
7
Number of the world’s top 10 curling teams that are from Canada
ROCKING THE RINK When he’s not brokering mortgages, Kirk Muyres can usually be found on the ice
SASKATOON-BASED mortgage broker Kirk Muyres has been “striving to be the best curler in the world” since he was a child, not long after his father (who also played professionally in his youth) took him out to the curling rink for the first time. It’s a demanding pastime: Muyres typically spends two hours a day on the ice, in addition to gym time. He’s also on the road 100 or so days every year with the other three members of his team, competing in bonspiels across the country. The road
9th
Current world ranking of Muyres’ curling team
200
Estimated number of bonspiels Muyres has played in his life
trips are the run-up to this year’s Olympic trials in Ottawa, where Muyres and his team hope to qualify for a place at next year’s games. Ultimately it’s the camaraderie – and his delight in the precise nature of the sport – that draws Muyres to curling. “I love to be part of a small group of guys working together,” he says. “I love the sixth sense we need: throwing a rock 155 feet down a sheet of ice and stopping it within a few inches of where we want it to go.”
Photo credit: Anil Mungal/Sportsnet
48 www.mortgagebrokernews.ca
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WHEN A MORTGAGE DEAL IS SUBMITTED FOR REVIEW, THE UNDERWRITING PRACTICES EMPLOYED MUST REMAIN CONSISTENT. As a mortgage broker, you want the right answers from your underwriter, every time. MCAP delivers the information you need, straight. That’s why brokers across Canada rely on us.
Contact your MCAP Business Development Manager or go to www.mcap.com/brokers today. MCAP Service Corporation | Ontario Mortgage Brokerage #10515 | Ontario Mortgage Administrator #11692
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COMING TO TERMS WITH YOUR CLIENTS’ INSURANCE NEEDS
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43% 36%
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of Canadians say no one has approached them about insurance.**
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Call your MPP insurance Account Manager today to learn more!
* Source: LIMRA Life Insurance Ownership Household Trends, 2013. ** Source: Manulife Financial Advisors Focus Spring/Summer 2013. Mortgage Protection Plan® (MPP) insurance is underwritten by The Manufacturers Life Insurance Company (“Manulife”) and administered by Benesure Canada Inc. (“Benesure”). Credit Security Insurance Agency Inc. (“CSIA”) and its appointed agents provide insurance sales services. Benesure and CSIA are wholly-owned subsidiaries of Manulife. ® Registered trademark of Benesure Canada Inc.: used under licence. Manulife and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under licence. Manulife, PO Box 4213, Stn A, Toronto, ON M5W 5M3.
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07/2016 16.2098
The Manufacturers Life Insurance Company
5/10/2017 8:47:37 AM