CMP 13.04 by Key Media

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Which brokers rose to the challenge by increasing their volume in a tough market? BECOME A COMMERCIAL EXPERT How to find – and grow – a niche in the commercial mortgage sector

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LATE TO THE PARTY? Private lenders weigh in on the CSA’s proposed crackdown on syndicated mortgages

TURN FOLLOWERS INTO LEADS Brokers reveal how they’re using social media to find new clients

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the proof is in the numbers.

Dominion Lending Centres Group is Canada’s #1 mortgage company by volume and with these lenders

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ISSUE 13.04

CONTENTS

TOP BROKERS

SPECIAL REPORT

Amid hot-and-cold markets, rising interest rates and increasing regulation, Canada’s 75 best brokers still managed to achieve impressive volume

UNLOCKING VALUE OFTEN REQUIRES SPECIAL KEYS. Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $2.2 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $5M to $100M. Blake Cassidy or Pierre Leonard | 800 494 0389 | www.romspen.com

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ISSUE 13.04

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CONTENTS

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UPFRONT 04 Editorial

How brokers can make the most of this year’s renewal whirlwind

UPFRONT

44 42

NEWS ANALYSIS The CSA’s recent attempts to regulate syndicated mortgages have been met with mixed reviews from private lenders

Commercial brokering presents a unique opportunity to become an expert in a specific property type

PEOPLE

INDUSTRY ICON

Newton Connectivity Systems head Geoff Willis reveals how he plans to make Velocity the broker channel’s go-to tech tool

Household debt is rising, but mortgage holders remain responsible borrowers

08 Head to head

Will foreign buyer taxes just keep increasing?

12 Technology update

Tips from brokers who have achieved social media success

16 Opinion

More taxes won’t solve BC’s affordability crisis

PEOPLE

FEATURES

ZERO IN ON A COMMERCIAL NICHE

06 Statistics

47 Career path

UPFRONT

Helping people take control of their finances has been the cornerstone of Chris Nichilo’s career

48 Other life

Industry marketer Jackson Middleton hits his targets at his axe-throwing range

BROKER UPDATE Brokers call for more stringent oversight of banks’ mobile mortgage specialists

SPECIAL SECTION

PRIVATE LENDING GUIDE

PEOPLE

BROKER INSIGHT

Doug Adlam of Champion Mortgage describes how he reinvented the traditional brokerage model

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

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UPFRONT

EDITORIAL

Up for renewal

obody said 2018 would be uneventful for mortgage professionals. Brokers spent the first quarter adjusting to OSFI’s latest B-20 guidelines, and they’re likely to stay busy – according to CIBC Capital Markets, 47% of Canadian mortgage holders are due for renewals this year. But what strategies will be at play? Touching base with lenders to compare various products and solutions is paramount, but so are sound marketing strategies. One broker told CMP that her brokerage has ramped up its marketing efforts to let clients know that, this year, there’s ample opportunity to refinance a mortgage or switch lenders – or even purchase a new home. The halcyon days of favourable insurance rates appear to be behind us, so clients might need to adjust their expectations where refinances are involved. However, the new landscape opens the door to another possibility: A client might be able to secure a better interest rate by selling their home and using that equity to buy a new home, after paying off non-mortgage debt.

The days of ‘one size fits all’ lending are over, and while coaching clients on their finances can be awkward, it’s nevertheless imperative The new mortgage landscape has catalyzed debate within the broker channel about whether to prioritize positive cash flow or the lowest possible interest rate for borrowers. Is a structured budget more important for families, or is paying their mortgage off as quickly as possible their best path forward? Canada’s near crippling household debt load, in tandem with new market realities, lends credence to the former strategy. However, there’s also a good argument to be made for securing the best rate possible, which allows borrowers to pay off their mortgages faster and enjoy a reprieve from the weighty burden of debt. It’s part of every broker’s job to sit down with clients to ascertain what their expenses are, what they’re comfortable paying each month for their mortgage and how much they’re able to save for retirement. As one broker pointed out to CMP, the days of ‘one size fits all’ lending are over, and while coaching clients on their finances can be awkward, it’s nevertheless imperative. The team at Canadian Mortgage Professional

www.mortgagebrokernews.ca ISSUE 13.04 EDITORIAL Writers Neil Sharma Joe Rosengarten Libby Macdonald Ephraim Vecina Heather Turner Hannah Go Copy Editor Clare Alexander

CONTRIBUTORS Kam Brar Paul McGill

ART & PRODUCTION Designer Loiza Caguiat Production Manager Alicia Chin Advertising Coordinator Ella Dayandante

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Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss

19/04/2018 9:39:03 AM

CENTUM is a lot like coffee DEPENDABLE FRESHLY POURED

A robust platform with quick support

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New cutting-edge websites and CRM systems

A recognized brand for consumers and industry

ENERGIZING

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Our tools and support will bring your business to the next level

We have an array of tools that will work for your unique taste

WARMING Our strong focus on relationships keeps you feeling warm and cared for

Let’s chat! We will put the coffee on! Opportunity@centum.ca | centumcanada.ca/franchises ®/™ Trademarks owned by Centum Financial Group Inc. © 2018 Centum Financial Group Inc. The intent of this communication is for informational purposes only, and is not intended to be a solicitation to anyone under contract with another mortgage brokerage operation.

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UPFRONT

STATISTICS

A good risk

MORTGAGE DELINQUENCIES LOW – AND GETTING LOWER

Debt in general may be on the rise, but mortgage holders are the best of borrowers WHILE PERSONAL debt levels in Canada are high – by the second quarter of 2017, Canadians owed a record $1.70 for every dollar of disposable income – mortgage holders represent a good risk. The latest research from CMHC found that consumers with mortgages are more likely to have good credit scores and less likely to declare bankruptcy than those saddled with other forms of consumer debt. “Despite rising monthly debt obligations in the second quarter of 2017, mortgage holders continued to manage their overall

Even as home prices spiked in the country’s leading markets, mortgage delinquencies were falling. Between the second quarter of 2016 and the same period in 2017, the number of mortgages that were at least 90 days past due dropped by 7.3%. Consumers are also much less likely to fall behind on mortgage payments than they are on other forms of credit such as auto loans and credit cards.

debt fairly,” said Maxim Armstrong, manager of housing indicators and analytics for CMHC. “On the whole, signs of vulnerabilities for the Canadian housing market and financial system remained low.” Mortgages are, in fact, a shrinking piece of the overall personal debt picture. According to CMHC, new mortgages represented a declining share of the amount of outstanding debt in Canada in the second quarter of 2017, and the average debt per consumer with a new mortgage also fell.

KEY Q2 2016 Q3 2016 Q4 2016 Q1 2017

66.5%

83.3%

Overall consumer debt attributable to mortgages

7.3%

Mortgages held by consumers with very good or excellent credit scores

Year-over-year decline in number of new mortgages written

Q2 2017

2.4%

Year-over-year increase in average monthly mortgage payment

Source: Mortgage and Consumer Credit Trends, CMHC, February 2018

BIGGER MONTHLY BURDEN Mortgage delinquencies have fallen even as monthly payments have risen. In the second quarter of 2016, Canadians were paying an average of $2,385 a month for all debt; by the same period in 2017, that figure had climbed to $2,429. $1,500

Mortgage holders aren’t just conscientious about paying off their mortgages. They also exhibit a lower rate of delinquency in other forms of debt than consumers without a mortgage. DELINQUENCY RATES, Q2 2017

Q2 2016 Q2 2017

$1,210

$900

$1,181

$1,200

RESPONSIBLE BORROWERS ACROSS THE BOARD

Mortgage holders Auto loans

Consumers without a mortgage

0.45% 2.78%

Mortgage

Auto loan

$456

$447

Lines of credit

$214

$73

$211

$72

$300

$476

$474

$600

Credit card Line of credit Home equity line of credit

Credit cards

0.42% 0.86% 0.90% 1.90% Source: Mortgage and Consumer Credit Trends, CMHC, February 2018

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1.89% 1.86%

1.92% 1.89%

1.57%

1.56%

1.57%

Delinquency rate by type of credit

1.61%

1.86%

2.0%

1.5%

0.0%

Mortgages

0.69% 0.65%

0.68%

0.67%

0.16%

0.17%

0.16% 0.16%

0.16%

0.32%

0.34%

0.36%

0.34%

0.5%

0.36%

0.66%

1.0%

Home equity lines of credit

Credit cards

Auto loans

Lines of credit

Source: Mortgage and Consumer Credit Trends, CMHC, February 2018

LESS LIKELY TO GO BUST

SCORE CARD

The proportion of mortgage borrowers with a high likelihood of bankruptcy has dropped off sharply over the past two years. The number of bankruptcy-prone mortgage holders fell 0.6% between the second quarter of 2016 and the second quarter of 2017.

Year-over-year, more mortgage holders improved their credit scores than those without mortgages.

MORTGAGE CONSUMERS WITH A HIGH BANKRUPTCY LIKELIHOOD 7.0%

Worsened their score

Maintained their score

Improved their score

6.5% 22%

29%

6.0% 5.5% 5.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 2017 Source: Mortgage and Consumer Credit Trends, CMHC, February 2018

21%

26%

Mortgage holders

Consumers without a mortgage

49%

53%

Source: Mortgage and Consumer Credit Trends, CMHC, February 2018

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UPFRONT

HEAD TO HEAD

Is the sky the limit for taxing foreign buyers?

BC’s foreign buyer tax recently jumped from 15% to 20%. Are further increases inevitable?

Alex McFadyen

Mortgage broker DLC Canadian Mortgage Experts “Given the recent implementation of an increased tax to 20%, we’re likely to see the government hold off on any other changes for the immediate future. It wouldn’t be surprising to see an increase again in the future, though at some point the cost of restricting foreign buyers could also significantly reduce demand and cost much more for Canadians by reducing house values. This might also restrict building, thus negatively impacting new supply and raising rental costs. Ultimately, the government would be smart to consult the industry and those in the know before making any more changes.”

Davelle Morrison

Mike Lloyd

Sales representative Bosley Real Estate

Team leader DLC Canadian Mortgage Experts

“Continually taxing foreign buyers discourages investment and movement to the province. It almost says, ‘I’ve given up on making housing affordable for locals, so instead I’ll scapegoat this segment of the population.’ The government should prioritize increasing the housing supply. Perhaps approvals for new condos take too long or include too many government charges. Perhaps developers should be allowed to build more storeys (i.e. low-income housing could be made a condition of building higher). Affordability is the issue our government must work to solve.”

“At first blush, it seems like an easy tax because no one’s going to defend [those who pay it], but there’s been pushback from some sectors. It’s assumed to be a rich person’s tax, but young couples who want to move to BC who are just starting out are being affected by it. Canadians related to those who are coming in will have stories about how it’s hurting people as well. This hike is probably the last time the government will touch it; they have gotten it in without much pushback, though further increases could make foreign immigration slow down severely.”

FOUR OUT OF FIVE VOTERS CAN’T BE WRONG Released in late February, BC’s provincial budget included a raft of changes intended to cool the nation’s hottest market, including raising the levy on foreign buyers from 15% to 20% and expanding its reach beyond Metro Vancouver. The move has proved popular with the public – immediately after the tax hike was announced, 81% of respondents to an Insights West poll said they believed increasing the foreign buyer tax was a good or very good idea. In addition, an equal number of respondents said they backed the idea of expanding the tax to areas outside of Metro Vancouver.

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UPFRONT

NEWS ANALYSIS

CSA rankles with proposals The CSA is looking to modify the rules governing syndicated mortgages in a bid to protect investors, but is its effort missing the mark?

THANKS TO a few rotten apples, syndicated mortgages have become tainted by their association with fraud. Now the Canadian Securities Administrators is lobbying authorities to enact a new set of rules to govern mortgage syndication. The CSA has recommended removing any jurisdictional prospectus and registration exemptions that currently apply to syndicated mortgages, in addition to amending the offering memorandum to provide investors with greater disclosures, including property appraisals by qualified and independent bodies. While there is consensus that a few crooked agents preyed upon unsophisticated investors, the mortgage industry is far from convinced that the CSA’s proposals are necessary. Given the recent slew of government intervention in the mortgage and real estate

major problems caused by a few bad actors,” says David Mandel, president of First Source Mortgage Corporation. Mandel points out that the bad actors in question disguised syndicated equity investments as syndicated mortgages and duped unwitting, unsophisticated investors. “These investments are actually securities and should have been caught by the CSA several years ago when they made their entrance onto the corporate construction financing stage,” he says. “The CSA has showed up a little late to the party. The mortgage industry has adequately dealt with the loopholes in disclosure to better protect consumers.” On the other hand, private lender Wasah Malik of King Lending Capital welcomes the proposals, believing more, not less, oversight is necessary for syndicated mortgages. He

“These investments should have been caught several years ago … The CSA has showed up a little late to the party” David Mandel, First Source Mortgage Corporation industries, announcements like the CSA’s seem to induce more sighs than solace. “The trouble with the regulatory changes proposed by the CSA is that they are reacting to a few bad apples with a broad brushstroke that affects a whole industry, rather than taking a direct look at the cause and effect of

already adheres to some CSA recommendations, like providing investors with a prospectus and offering memorandum. “Now everybody will be forced to do that for their investors, which is good, which is necessary,” he says. “I do that with every private mortgage, whether there’s one investor on it or

a syndication of investors. We provide those documents, those disclosures and risk assessments, for every single deal.” Malik concedes that predatory players present a minimal, though not insignificant, risk, but he believes investors’ money should always be protected. Moreover, he adds, what’s the harm in mitigating risk? “Once you get one bad player, it becomes a cycle, and you have to control that,” he says. “[The proposed oversight] isn’t a bad thing; it’s an amazing thing, because you’re still working hard to protect borrowers and investors. When someone is investing in something, they should have full disclosure of what they’re investing into.” Mandel isn’t convinced, though. He believes that, in a fit of atonement, the CSA is trying to enforce more instructive protocols

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SYNDICATED MORTGAGES: THE UPS AND DOWNS In 2014, the FSCO opened an investigation into syndicated mortgages linked to Fortress Real Developments; ultimately, the regulator sanctioned eight parties (four brokers and four brokerages) for their involvement selling syndicated mortgages linked to the developer According to the FSCO, the syndicated mortgage market exploded from $3.7 billion in 2014 to $6 billion in 2016 In March, the CSA proposed regulatory changes to syndicated mortgages, including removing prospectus and registration exemptions, and requiring property appraisals from an independent, qualified appraiser The same month, Ontario’s budget capped individual investments in syndicated mortgages at $60,000, a rule that’s set to go into effect in July

on all private lenders, irrespective of how clean their track records are. “That the CSA may [force] well behaved

offering memorandum for a $300,000 residential first mortgage at 65% LTV, or a 75% LTV $50,000 second mortgage?”

“Once you get one bad player, it becomes a cycle, and you have to control that. [The proposed oversight] isn’t a bad thing” Wasah Malik, King Lending Capital conventional private lenders to provide either a prospectus or an offering memorandum, or both, for simple first- and second-mortgage syndications is very troubling,” he says. “Syndication simply means more than a single investor. Can you imagine the industry fallout from a requirement to provide a prospectus or

Ultimately, syndicated mortgages carry risk, but how much does vary. According to Ron Butler of Butler Mortgage, unsophisticated investors who become involved with complex syndications are essentially clay pigeons. “There are people who are not sophisticated about mortgage lending, getting involved in

very exotic projects of multi-million-dollar high-rise condominium projects,” he says. “Up until recently – the last 10 years or so – no mortgage broker has considered that sort of syndication appropriate for unsophisticated individuals and people with no prior experience with mortgage lending.” Technology might offer a panacea. Bridge financing platform Fundscraper is seeking to reduce risk in this sector by combining smaller minimums from more investors and automating candidate suitability assessments. “The only reason we can take capital from someone is because we’ve done a suitability assessment,” says Fundscraper founder and CEO Luan Ha. “I’d say an algorithm could assess your suitability better than a human being who’s prone to errors … and all sorts of misinterpretations of data.”

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UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS Mogo reports slight dip in year-end revenue for 2017

Mogo Finance Technology released its fourth-quarter and full-year 2017 results in mid-March, reporting total annual revenue of $48.7 million, down 2% from 2016. The digital broker’s stock has declined by 26.2% so far in 2018. However, gross profit increased by 7%, while gross margin rose to 67% (up from 62% in 2016). Last year, Mogo formed a new subsidiary, Mogo Blockchain Technology, which will serve as the backbone of the company’s blockchain operations, but this could prove to be another speed bump for the company in light of ongoing volatility in the global cryptocurrency market.

RECO considers allowing property purchases via cryptocurrency

The Real Estate Council of Ontario is mulling whether to allow consumers to use Bitcoin and similar currencies in property transactions. While cryptocurrencies are currently not considered legal tender in Canada, they are allowed in private sales between individuals. “While we recognize the merits of new forms of currency in the age of evolving digital commerce, RECO, as a regulatory body, must ensure that all business transactions between consumers and real estate salespeople, brokers and brokerages adhere to the Real Estate Business and Brokers Act,” said RECO registrar Joseph Richer.

Government to look into new tax regime for fintech companies

Finance Minister Bill Morneau recently revealed that the government is looking into whether a new tax regime is needed for technology companies, including the fintech segment and cross-border corporations such as

Amazon, Google and Netflix. The issue was discussed at a Group of 20 meeting in Buenos Aires, in light of the European Union’s proposed levy on online companies. “We are looking at it carefully because we need to understand what, if anything, happens to our tax base based on a changing of the economy towards a different business model,” Morneau said.

RBC launches initiative to improve mortgage transactions

In an attempt to improve the client experience, RBC announced in late March that it will allow eligible external developers and clients to access some RBC data to build and test new digital applications. RBC will offer access to five application programming interface [API] portals based around credit card rates and fees, mortgage amortization schedules, and more. “We have the opportunity to increase connectivity, create new tools and experiences for clients, and enable open and innovative collaboration to improve the future of banking,” said Sumit Oberai, RBC’s senior VP of digital technology.

Fintech mentorship program will aid industry startups

Insurance firm Aviva Canada and innovation hub OneEleven have announced the next class of startups that will benefit from their InsurTech growth program. Among the beneficiaries are rate comparison site RateHub and MapYourProperty, an intelligence platform that provides real estate and land development information to allow borrowers to streamline their risk diligence processes by as much as 50%. The program, which will run for four months, offers one-on-one mentoring sessions with Aviva Canada, along with feedback from OneEleven community experts.

How brokers are leveraging social media Brokers who have found new clients via social media channels share their tips for fostering online connections In this day and age, social media is ubiquitous, especially for businesses trying to expand their reach. Many brokers are finding that platforms such as Facebook, Twitter and Instagram are crucial for staying in touch with existing clients – and reaching new ones. Ryan Dennahower, co-founder of Bespoke Mortgage Group, has found that highlighting rave reviews is one of the keys to successfully marketing his services on social media. “I primarily use my Facebook business page for reviews,” he says. “After closing, I’ll follow up directly to ask clients to post a review on my Facebook page, and then I’ll take that review and share it on my Instagram and even my personal Facebook page to draw more attention to the services I provide to my clients.” Personalization has also been an important factor in standing out from the competition, and for that, Dennahower relies on Instagram videos. “I’ve found that with that personal touch, people absolutely love it,” he says. “The thing I love about Instagram is you have Instagram Stories, where you take a short video – maybe a 30-second video in your car or at the office – and post it, and you get your material out there really fast, as opposed to perfecting it or editing it. I post things regarding products we have access to, [like] purchasing … a second home with 5% down. I found that when I started doing videos and posts about new products, I got tons of messages from people

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asking, ‘Hey, how is that possible?’ or ‘How do I go about doing that?’ I’ve been able to convert quite a few of the leads into live pre-approvals and live deals.” Dennahower has only been using Instagram in a professional capacity since the beginning of the year, but he’s already seen his business surge.

“I’ve been able to convert quite a few of the leads into live pre-approvals and live deals” “Even in the short timeframe … the amount of referrals, questions and leads I’ve gotten through those social media platforms has been surprisingly good,” he says. Collin Bruce of Edmonton-based DLC Mortgage Mentors is another broker who has made social media a priority in the last year, hiring Chatty Girl Media to handle his social media presence. Bruce also partnered with Oilernation, a popular Edmonton Oilers fan site, to run cross-promotion campaigns. “We gave away the new Oilers jersey in October, and we were trending on Twitter,” Bruce says. “We’ll get a lot of messages in the inbox. I’m running a promotion right now that I just boosted, talking about the interest-rate savings versus the penalty paid on an adjustable-rate mortgage, and I’m sure we’ll get a lot of clients from that.”

Q&A

Birgit Holm Mortgage consultant MORTGAGE ALLIANCE – VINE GROUP

Years in the industry 15 Fast fact Holm speaks four languages: English, German, Japanese and Russian

Technology, teams and trust How has technology affected the way you work as a mortgage professional? When I started way back in 2003, we were using fax. Technology really has streamlined everything. Work is now way more efficient, especially when I think back to how we used to do things with the tools we had. Now everything is paperless, and it has become far more organized for everyone involved.

What advantages and/or roadblocks have you encountered with the introduction of new technology? Now I get most of my documents via PDF files from my clients, to the point where I don’t need to meet up for the sole purpose of getting pages. All of my clients are from word-of-mouth networking – my clients are known to people I know. There’s a high level of trust fostered by that connectivity. Continuous learning is key [to adopting new technology]: learning how to put and operate all these apps on your devices, and learning how to incorporate these technologies into your workflow as seamlessly as possible. I used to send handwritten cards – which I still like to do – but now I have more touchpoints based on technology by reaching out to my clients on a regular basis. The efficiency and streamlined aspect definitely gives me more elbow room, more free time.

How has technology impacted your work-life balance? I set my own schedule. I just don’t answer calls after a certain time. My evening is my family time, and I just set up the parameters for myself, telling clients that I’ll call them back and asking them to send text messages instead. I just set the boundaries, and it works fine.

What advice would you give to those who are having trouble maximizing their technology use? I would suggest building a team and knowing each other’s strengths and weaknesses. Surround yourself with people who can support you in this area, and reach out to mentors who have demonstrated aptitude in these tools. Work with people who make you feel good, who support your growth.

In evaluating people who could help you build a technological base, what should you take into account? I’m a mother, and one of the characteristics that we often joke about is, “Would we feel comfortable leaving our kids with these people?” It’s the same mindset: Do you feel confident about these people? Do you feel them being supportive? If I can trust them with my children, I can definitely trust them with my clients.

Do mortgage professionals still bring something to the table that technology simply can’t offer? It’s the relationship with the client. That is everything; that is key.

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UPFRONT

BROKER UPDATE

Brokers demand more oversight for road reps Brokers argue that banks’ mobile specialists need the same regulation as the broker channel

for continuing education, the same requirements to protect the consumer, the same requirement to fill out paperwork that says they’ve deemed that the mortgage is suitable for the customer and why,” Matthey says. Daniel Johanis, a broker with DLC Mortgage Centre, agrees. “I wouldn’t necessarily say it’s the Wild West, but there should be some accountability and oversight,” he says. “It seems a little more difficult for them to make a

“If you’re going to have a sales force that is paid by commission ... why are they treated differently than us?”

The pressures placed on commission-based mobile mortgage specialists can negatively impact borrowers, many of whom end up being talked into unsuitable mortgages. That’s the view of Karen Matthey, co-owner of Verico The Mortgage Professionals, who believes mobile specialists operate under insufficient oversight. “If you’re going to have a sales force that is paid by commission, from a regulatory perspective, why are they treated differently than us?” Matthey says. “Why aren’t they required to get

NEWS BRIEFS

a mortgage agent’s licence? Why aren’t they required to have the same disclosure requirements that we do, to have the same onus to protect the customer that we do, in terms of choosing the best mortgage from their perspective? I don’t think it’s a level playing field.” Without these regulations, she argues, the focus for road reps is on securing a commission in order to earn a living, rather than putting consumers into financially sound mortgages. “They should have the same requirements

DLC’s Cooper: More parents are helping with mortgages

According to DLC chief economist Dr. Sherry Cooper, the ‘bank of mom and dad’ has become crucial for buyers in major markets like Toronto and Vancouver, but that could be putting many Canadians’ retirement in jeopardy. “A lot of [parents] are taking out home equity loans to help their young adult kids get into their first home,” Cooper said, “and that puts pressure on their financial stability and their ability to assure financial retirement, so any way you look at it, it makes demand for housing far more difficult.”

living, and that’s where the conflict comes into play. Are you putting clients’ best interests first, or are you trying to close a sale for the sake of closing a sale?” Mobile mortgage specialists have significantly fewer products they can sell, he adds, which means they tend to be aggressive about upselling and cross-selling other products such as life insurance. “Banks are at a disadvantage when it comes to offering products that may be in clients’ best interests because, compared to mortgage brokers, [who have] over 50 lenders at their disposal, a bank only has one suite of products,” Johanis says. “With road reps, their tactic is basically, ‘We’ve got all the sales papers out and ready – just sign.’ It’s almost like a done deal.”

Brokers must look at clients’ risk tolerance

Amid the possibility of further interest rate hikes, CanWise Financial president James Laird stressed the need for brokers to help clients understand both their financial and psychological risk tolerance. He encourages households with high financial and psychological risk tolerance to “take advantage of the savings offered by a variable-rate mortgage.” Conversely, he says those with low risk tolerance should opt for fixed-rate mortgages “to avoid stretching themselves thin if their mortgage payments increase due to rate hikes.”

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Q&A

Gina Best

Navigating the waters of a new regulatory era

Co-founder MORTGAGE ALLIANCE WEST

Years in the industry 16 Fast fact In addition to her work as a broker, Best serves as a business coach for mortgage brokers, real estate professionals and service-based companies across Canada

What has the current lending landscape been like for you and your clients in Vancouver? The last few months have been very different. It’s almost as if we’ve gone back 10 to 15 years. Deals require much more legwork and lender knowledge than they used to. We’re still growing, and we’re still getting a lot of business done. It’s just that in the last five or six years, the pace of change has been dizzying for brokers and clients alike.

In your view, what has contributed to this vastly different environment? One of the factors is of course the market, especially since everything changes once you go beyond a purchase price of $1 million. Considering the red-hot market, these transactions are becoming increasingly commonplace. Of course, another important aspect is government regulation. This provides formidable challenges for would-be buyers, especially in a market like Vancouver.

What have you found to be the most significant challenges in the current regulatory regime? I think one of the biggest challenges is the $1 million purchase price that is increasingly apparent in Vancouver. With the last round of changes, the milliondollar cap has hurt a lot of people.

Quebec’s banks keep broker channel at bay

For Canadian mortgage brokers, Quebec might as well be a different country. Kim McKenney of DLC The Mortgage Source says brokering mortgages in Quebec is decidedly different than in English Canada, especially because the province allows trading basis points for referrals. “It has a lot to do with the strength of the banks,” she said. “Their relationships with Realtors in Quebec have been strong, and they’ve typically paid 50 basis points to Realtors for referrals, so that’s a really tough one for brokers to compete against.”

Let’s be honest here: It completely took away the level playing field, because when the government implemented the million-dollar cap, it took out a lot of the monolines. Now when you have purchases of over $1 million, they’re all conventional; you don’t have a choice anymore. You don’t have nearly as many options as you have if you’re buying lower than $1 million. The government essentially took away options from clients buying in that price range. Right off the bat, the rules limited the role of traditional monoline lending, and people have ended up paying more for their purchases of over $1 million. I’m not against the stress test by any means, but I do think it’s a bit aggressive.

What role have you played in helping your clients adjust to the new market realities? I think we have to accept that rates will go up. Brokers have a responsibility to steer our clients away from the worst possible outcomes. One of my biggest goals since I co-founded this business is to make sure that our clients will never be mortgage-poor. I don’t think it’s worth it to put every cent of income you have in your property, to the point where you won’t be able to do things like take your children to the movies. I understand the need for regulations, but I think the government just keeps putting more and more rules on the mortgage side without putting enough computation and thought on the possible impact at all levels.

Bidding wars much less prevalent now in Toronto

Samantha Brookes, founder and CEO of Mortgages of Canada, says that although new B-20 rules have made securing mortgages more difficult, the single-family market in Toronto has started to skew in favour of buyers. “I’ve been telling my clients to look for homes that have been sitting on the market for a while, because those people are willing to negotiate the price point because they need to get rid of the home,” Brookes said. “There’s more leverage if the house has been sitting for a while. Gone are the days of bidding wars.”

Broker warns of potential cannabis industry issues

According to Harry Tyson of DLC Commercial Core Financing, financing properties for the cannabis industry is not without its problems. Many major lenders, he said, are still wary about tarnishing their reputations by lending on cannabis-related projects. “I have done a building that has [cannabis production] in it,” Tyson said. “There are lenders who are not willing to take that … reputational [or] security risk, because the security around the building has to be very tight because people will want to steal what’s inside.”

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19/04/2018 9:31:13 AM

UPFRONT

OPINION

There’s no quick fix in BC Expanding the foreign buyer tax won’t solve the problems in BC’s housing market, writes Kam Brar

BRITISH COLUMBIA has arguably felt the brunt of Canada’s housing affordability crisis. Each year, more regions of the province become less affordable to the people who live and work in those communities. As mortgage brokers, we are faced with that reality every day as we work to make people’s dreams of homeownership come true. It comes as no surprise that the BC government’s 2018 budget focused heavily on housing initiatives. In addition to increasing the province’s foreign buyer tax to 20% of the property purchase price, the government also expanded the tax to include the metro areas of Victoria, Nanaimo and Kelowna, as well as the Fraser Valley. Along with Vancouver, where the tax has been in effect since August 2016, these regions are among the 10 least affordable places to buy a home in Canada. But will an expanded tax on these buyers really stabilize the market and curb demand? Looking at 18 months of data from Vancouver, Realtors’ and economists’ opinions on the tax’s effects range from “zero impact” to “minimal and temporary.” In the lending world, we have seen minimal effects on deals involving foreign buyers, who are usually coming with cash and purchasing properties that fall well outside normal lending parameters. After a brief dip in sales following the introduction of the foreign buyer tax, it appears the people making these purchases have decided this is simply the cost of doing business in their desired location. In Victoria in particular, the data just

doesn’t support foreign buyers as being the source of unaffordable housing. Although all levels of government have only recently started looking at homebuyer data with respect to residency, their findings have shown that non-residents generally make up only 4% to 6% of property purchases, both in number and value of sales. The proportion of foreign buyers also seems to keep pace with overall market trends. Since the provincial government seems to be ignoring the other 94% of home sales,

to feel the pressure of more stringent lending guidelines, combined with unaffordable rental situations that drive a desire to buy. As even B lenders become unable to meet the needs of these buyers, more of them will be pushed into the realm of private lending, which comes with its own challenges in BC. The recent Globe & Mail investigation into money laundering through real estate in Vancouver has spread misinformation and led to fears about taking on a private mortgage. The need to educate our clients will continue to grow, which can only happen if we have a solid understanding of the range of lenders and products available. It’s no longer enough to find financing; we must also reassure clients of the legitimacy of that financing. The ability to find lending solutions tailored to a local client’s situation will be the next thing that differentiates a merely competent broker from one who provides exceptional client service. One gap I identified locally was a lack of short-term financing solutions for borrowers facing the unique situations that come with a hot market and low inventory. Over the past two years, we have been able to complete deals for many home-

“The people making these purchases have decided this is simply the cost of doing business in their desired location” that’s where our focus needs to be in the mortgage industry. The affordability crunch is partly coming from existing homeowners who are seeking to move up the property ladder. Housing prices bounced back in early 2017 and just kept on climbing. Unable to qualify for a mortgage large enough to finance a property that suits their new needs, existing residents can’t move, leading to a lack of resale supply – and the sky-high prices and bidding wars seen through most of last year. The majority of prospective homebuyers in BC will continue to face property prices that far exceed their income. They will continue to see a shortage of entry- and mid-level properties on the market. And they will continue

owners who otherwise would have failed to find a mortgage they could afford, all while keeping our investors happy and excited. While BC’s foreign buyer tax is making headlines, most people won’t feel any effect from its expanded scope. The real fix is madein-BC solutions that will allow people to continue to qualify for financing to purchase the property they love.

Kam Brar is the founder and owner of Victoria-based Auxilium Mortgage Corporation, along with his wife, Michelle. Brar has been a mortgage broker in the area for more than 10 years.

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19/04/2018 9:30:12 AM

PEOPLE

INDUSTRY ICON

LEADING THE TECH REVOLUTION With Geoff Willis at the helm, Newton Connectivity Systems is changing the way borrowers, brokers and lenders do business

GEOFF WILLIS might have one of the most influential jobs in the mortgage industry. As president and CEO of Newton Connectivity Systems, Willis has overseen development some of the most integral technology being used by brokers today. The company, aptly named after Sir Isaac Newton, developed Velocity, an automated data system that’s made compiling documentation a breeze for brokers and lenders. The company recently unveiled a Velocity-accessible secure portal for B lenders – a testament to Newton’s preeminence as a technological solutions provider in the mortgage industry. By allowing deals to come together faster and preventing more headaches than usual, Velocity has unarguably changed the industry. “In 2007, we started Origin Mortgages and started working on a market system for brokers, which eventually became Velocity,” Willis says. “It’s definitely a game-changer because it’s a better solution available to brokers. We need to do more with technology than just submit applications. It does everything from document management to workflow management, CRM, commission management. It has connection to a mobile app so you can carry your customer base in your pocket, and built-in MSM tech-

nology, so it’s really more than a whole bunch of individual tools. It’s an integrated tool that allows you to run your whole mortgage business with one system, and that’s the focus. We’re trying to build a better mousetrap for brokers.”

them, changed the name to Newton, which we launched in February 2017, and our goal since that time has been focused on creating more connection bridges with more lenders, because all brokers just want one platform to go to every lender. Now we’re just focusing on getting

“We’re probably, as an industry, a little behind the rest of the world with how we use technology ... So even though we have a good idea, it really doesn’t translate into a better customer experience with our lenders” Growth mindset Velocity hasn’t yet reached its goal of having the entire industry plugged in, but Willis hopes it can do so by next year. Of course, consolidation is part of that strategy – in late 2016, Dominion Lending Centres acquired Marlborough Stirling and rebranded it as Newton Connectivity Systems. “Marlborough Stirling struggled to get volume, but they had connection bridges already built to key lenders,” Willis says. “So we bought

everybody on Velocity – and when I say everybody I mean DLC, Mortgage Centre Canada and Mortgage Architects brokers.” Demonstrating that Velocity can, in fact, deliver volume will be key to attracting lenders to the platform, Willis says. “Our strategy to build more bridges now is that we can actually bring them volume. Everybody will be on Velocity by 2019. That’s one way to get lenders interested, because they’re realizing they’re going to receive deals by this date.”

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PROFILE Name: Geoff Willis Company: Newton Connectivity Systems Title: President and CEO Based in: Vancouver Years in the industry: 29 Career highlight: “The purchase of Marlborough Stirling in December of last year with DLC Group and launching Newton. Another one is building the mortgage sales force with Canada Trust in the ’90s.” Career lowlight: “After 11 years, I was asked to leave TD Canada Trust. You never want to be asked to leave. You always want to go out on your own terms.”

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PEOPLE

INDUSTRY ICON

Under Willis’ tutelage, Newton has taken the industry by storm, but that isn’t good enough for him. While he expects 2019 to be a monumental year for the company, the myriad steps along the way are crucial. “We have some new assets we’re launching in May that will make the distance between us and competitors far greater, in terms of taking some of the friction out of how we deal with clients and the collection of their documents, confirming their down payment, collecting their signatures,” Willis says. “It’s

industry, a little behind the rest of the world with how we use technology because we have to be connected to these lenders in order to do our job, and sometimes their systems are somewhat antiquated. So even though we have a good idea, it really doesn’t translate into a better customer experience with our lenders. They’re in a different place sometimes. “It’s changing, but it’s been an issue for a while,” he adds, “especially when in so many other areas of their life, it seems like technology has really supported [consumers], but then

“The key is to make sure you’re using technology as a tool, but that you don’t create it as a barrier for the people interaction that needs to take place ... That’s the unique quality that a broker brings” the journey the customer takes with the broker – we’re going to remove some of the friction that exists today.”

The human touch To explain Newton’s trajectory, Willis recounts his own decision to join the DLC network, the impetus for which was to develop a better software system for brokers. Like many mortgage professionals, Willis, a 29-year industry veteran, also spent time in the banking world. Beginning his career in 1989 with First Line Mortgages before moving on to found MortgageFinders, Willis eventually landed at TD Canada Trust. He was also involved in the creation of Origin Mortgages. Throughout his nearly three-decade-long career, he repeatedly noticed a need for streamlined technological solutions like the ones Newton has developed. “One of the things I learned is, because we as brokers deal with big institutions with their own legacy systems, we’re probably, as an

they come to the mortgage industry, and it feels slow and antiquated. It’s about being considerate and developing the right things. You have to make sure that your customers can avail themselves of all the tools available to them, but still give them that choice to deal with a person whenever they want.” Willis believes that while technology is a crucial tool for borrowers and brokers alike, the latter ultimately has a role that can never be automated. “The key is to make sure you’re using technology as a tool, but that you don’t create it as a barrier for the people interaction that needs to take place,” he says. “The number of zeros involved in the purchase of real estate or a mortgage makes people trepidatious already, so they need to know someone has their back. That’s the unique quality that a broker brings – that unbiased advice and that ability to convey their experience in something people generally don’t have a lot of experience with.”

GEOFF WILLIS’ PATH TO NEWTON

1989 1990

Starts as a mortgage development manager with First Line Mortgages

1991 Founds his own brokerage, MortgageFinders

1995

2000

Sells MortgageFinders to TD Canada Trust and becomes sales manager of its mortgage sales force

2005 Leaves TD Canada Trust; helps start Origin Mortgages

2007 Begins developing the Broker Operating System, now known as Velocity

2010

2012 Origin Mortgages becomes DLC Origin

2016 Marlborough Stirling is purchased by DLC

2017 Marlborough Stirling is rebranded as Newton Connectivity Systems and launches Velocity

www.mortgagebrokernews.ca

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SPECIAL REPORT

TOP 75 BROKERS

TOP BROKERS

Despite regulatory changes and fierce competition, this year’s Top 75 Brokers crushed last year’s numbers with double-digit increases in volume and loans funded

IN A YEAR marked by turmoil and uncertainty, CMP’s Top 75 Brokers proved that nothing could slow down their business. Collectively achieving nearly $8 billion in volume last year, this year’s Top 75 Brokers see only bigger and better things ahead – most expect to surpass their 2017 volume by the end of this year, if not sooner. Recognizing brokers from all markets, including the Top 20 Small Market Brokers, this year’s list contains both fresh faces and some repeat winners. These mortgage professionals come from all walks of life, but what they all have in common is the passion to help Canadians find the best financing for their every need.

THE TOP 75 BY THE NUMBERS

13.7

18,889

$7.78 billion

Average number of years in the business

Total number of deals done in 2017

Total funded volume in 2017

TOP 75 BY PROVINCE

METHODOLOGY To qualify for this year’s Top 75 Brokers list, brokers had to be employed as mortgage professionals, be able to write loans and have personally initiated all of their deals. They also had to provide a breakdown of their deals with verifiable lender contact information. Only residential deals were considered, and while back-office support in processing the loans was acceptable, no other parties could receive commissions on these deals.

Ontario

British Columbia

Alberta Nova Scotia

Quebec

Manitoba

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75 JASON GEORGOPOULOS

71 DUSTAN WOODHOUSE

Company: DLC Estate Mortgages Location: Ontario Total volume: $55.16 million Loans funded: 108

Company: DLC Canadian Mortgage Experts Location: British Columbia Total volume: $57.83 million Loans funded: 110

74 CHRISTIAN AMURAO Company: DLC Canadian Mortgage Experts Location: British Columbia Total volume: $56.12 million Loans funded: 144

CMP: What can lenders do to help brokers achieve even higher volume? Christian Amurao: I think it has been very challenging the last few years for the lenders, [and] I really empathize with them. That said, it’s pretty simple. Be clear about what they want, update us quickly and consistently on files, and finally, work together with the brokers to serve the clients so everyone wins.

73 WYATT TUNNICLIFFE Number of deals

Total funded volume

15,758

18,889

$7 billion

$7.78 billion

18%

2016

2017

2016

2017

Do you expect to fund more volume in 2018 than in 2017? YES

86%

Company: DLC Gold Financial Services Location: British Columbia Total volume: $57 million Loans funded: 161

CMP: What can lenders do to help brokers achieve even higher volume? Wyatt Tunnicliffe: Understand their products inside out. Sometimes an early ‘no’ is refreshing instead of taking time trying to ram a square peg in a round hole.

CMP: How would you describe your business in 2017? Dustan Woodhouse: Many people asked me during 2017 – a year of 91 hotel nights, 43 flight segments, and dozens of conferences and workshops – how my mortgage business was doing. Well, here is the math: down by almost 50% [compared to] the previous few years.

70 STEVE D’SOUZA Company: DLC Origin Client First Mortgage Solutions Location: British Columbia Total volume: $58.56 million Loans funded: 136

69 NARISH MAHARAJ Company: DLC Mortgage Mentors Location: Alberta Total volume: $58.75 million Loans funded: 182

CMP: How can lenders improve their service to brokers? Narish Maharaj: Turnaround time in both underwriting and documentation. The quicker we approve and close, the less likely we are to lose clients to banks or competitors.

72 MICHAEL JAMES Company: DLC Mortgage Evolution Location: British Columbia Total volume: $57.27 million Loans funded: 109

14% NO

CMP: What are the biggest challenges facing the industry? Michael James: Marginalization of broker services in the marketplace by automation and lenders [that threaten] to eliminate this source of origination.

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SPECIAL REPORT

TOP 75 BROKERS

68 JANNA DAWDY Company: RMA JC Mortgages Location: Ontario Total volume: $58.87 million Loans funded: 184

With more than two decades of experience in the banking and financial industry, Janna Dawdy has formed hundreds of lasting professional relationships with her clients and has stayed true to her core values of serving all of her clients with a professional work ethic, honesty and an unwavering desire to find the best solutions for their individual needs. She offers other brokers some advice on how they can grow their own business: “Stay consistent to your business plan and your marketing year after year. Even when you think it’s not working or going unnoticed, it will. It can sometimes take two to three years to see the fruits of your labour, but you will see the rewards if you stay consistent.”

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67 GAYLE FOCKEN Company: DLC ClearMortgage.ca Location: British Columbia Total volume: $58.88 million Loans funded: 181

CMP: What is the biggest challenge facing the industry? Gayle Focken: The stress test – it will decrease the amount of mortgages funded this year.

66 FERNANDO ZILLI Company: DLC Tribeca Mortgages Location: British Columbia Total volume: $59.18 million Loans funded: 137

CMP: What can lenders do to help brokers achieve even higher volume? Fernando Zilli: Offer innovative products and policies that make it easier for individuals to purchase their first home.

65 DEBORAH WHITE Company: DLC White House Mortgages Location: British Columbia Total volume: $59.76 million Loans funded: 195

62 TODD PAYZANT Company: Neighbourhood Dominion Lending Centres Location: Ontario Total volume: $61.01 million Loans funded: 222

CMP: What are your keys to growing your business and achieving such impressive volume? Todd Payzant: Word of mouth and keeping in touch with past customers.

CMP: What is the biggest challenge facing the industry? Deborah White: The ever-changing rules and the misperception by consumers who are not educated enough and believe media hype.

64 PAUL MEREDITH

63 CHAD OYHENART

Company: Verico CityCan Financial Location: Ontario Total volume: $60.57 million Loans funded: 150

Company: DLC Canadian Mortgage Experts Location: British Columbia Total volume: $61 million Loans funded: 137

CMP: What is the biggest challenge facing the industry? Paul Meredith: One of the biggest challenges we have in this industry is educating the general public on exactly what it is we do, which is an ongoing problem. There is a large portion of the population that still doesn’t understand what a mortgage broker does and how we can help them.

CMP: What can lenders do to help brokers achieve even higher volume? Chad Oyhenart: Continue to find ways to create value for brokers through new products and creative lending solutions.

61 JORDAN D’HAESE Company: Verico Jayman Financial Location: Alberta Total volume: $61.16 million Loans funded: 153

CMP: How can lenders improve their service to brokers? Jordan D’Haese: Provide access to more B products.

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SPECIAL REPORT

TOP 75 BROKERS 60 SCOTT H. BENTLEY Company: Verico Premiere Mortgage Centre Location: Nova Scotia Total volume: $61.30 million Loans funded: 195

CMP: What can lenders do to help brokers achieve even higher volume? Scott Bentley: Have joint marketing initiatives and collaborative efforts to promote our industry, and continue to reward efficiency.

59 PHILIPPE BREAULT Company: Verico CanWise HypothĂ¨ques Location: Quebec Total volume: $61.50 million Loans funded: 207

CMP: What are your keys to growing your business and achieving such impressive volume? Philippe Breault: Hard work and good knowledge of the products of my lender partners.

58 BRANDON WOODWARD Company: Mortgage Financial Corporation Location: Ontario Total volume: $61.59 million Loans funded: 203

CMP: How can lenders improve their service to brokers? Brandon Woodward: Rates have become next to impossible in terms of providing accurate information to clients. Streamlining this to become as simple as possible will allow us to have more accurate and effective client conversations.

56 CORY LARKIN Company: DLC Canadian Mortgage Experts Location: British Columbia Total volume: $62.60 million Loans funded: 155

CMP: How can lenders improve their service to brokers? Cory Larkin: Implement more programs for high-net-worth applicants, selfemployed applicants and investors who have rental portfolios. CMP: What are your keys to growing your business and achieving such impressive volume? CL: Having a strong database of clients who refer their friends and family, as well as specializing with investors.

57 DION BEG Company: Butler Mortgage Location: Ontario Total volume: $61.78 million Loans funded: 197

CMP: What can lenders do to help brokers achieve even higher volume? Dion Beg: I feel the monolines are doing the best they can in this ever-changing market, and I am very grateful for the BDM support we have. Banks could consider offering their full suite of property-secured products through the broker channel; thereâ&#x20AC;&#x2122;s a lot of untapped value we could bring to them if only we were able to offer those products.

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55 DEREK MACLEAN

52 NICK KAAKI

Company: Verico Capital Mortgages Location: Ontario Total volume: $63 million Loans funded: 190

Company: DLC The Mortgage Source Location: Ontario Total volume: $63.21 million Loans funded: 203

CMP: What are your keys to growing your business and achieving such impressive volume? Derek MacLean: Some keys to growing my business include hiring great staff who are adaptable and can implement a strong business plan and system, as well as leveraging the use of new technology and tools to grow business while increasing efficiency. Cultivating strong referral sources is also essential.

55 DENNY SEGAL

CMP: What advice would you give other brokers looking to grow their business? Nick Kaaki: Understand all the new rule changes and be able to communicate them to the customers, while still providing them the best service and the best product to fit their needs.

Company: DLC Origin Mortgages Location: British Columbia Total volume: $63 million Loans funded: 110

CMP: What can lenders do to help brokers achieve even higher volume? Denny Segal: Be flexible and use common-sense underwriting criteria.

55 HARMAN ARORA Company: Dominion Lending Centres House Location: Alberta Total volume: $63 million Loans funded: 167

CMP: What can lenders do to help brokers achieve even higher volume? Harman Arora: Be flexible with amortizations.

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SPECIAL REPORT

TOP 75 BROKERS 51 SHARNJIT SINGH GILL Company: Verico Superior Mortgage Location: British Columbia Total volume: $63.72 million Loans funded: 115

CMP: What are your keys to growing your business and achieving such impressive volume? Sharnjit Singh Gill: Eighty-five per cent of our business comes from repeat customers and referrals. We educate each of our clients; this way, they become our ambassadors and refer many more clients. We create value in our service to every client.

50 KEN LANKIN Company: The Mortgage Centre – Your Mortgage Professionals Location: Ontario Total volume: $65 million Loans funded: 280

CMP: What is the biggest challenge facing the industry? Ken Lankin: Obviously the new rules affect all, but being able to adapt by creating a solution and making it happen will be our focus.

47 GEOFF LEE Company: DLC Entrust Mortgage Services/ GLM Mortgage Group Location: British Columbia Total volume: $67.27 million Loans funded: 206

CMP: What are your keys to growing your business and achieving such impressive volume? Geoff Lee: Prompt communication – returning all phone calls and emails within 90 minutes – and customer service, and having a great support team.

49 CECILIA RAMOS Company: Verico Ultimate Mortgage and Finance Solutions Location: Ontario Total volume: $66.43 million Loans funded: 162

CMP: How can underwriters improve their relationship with brokers? Cecilia Ramos: I find more and more that many underwriters find reasons to decline a deal rather than looking for ways to make it acceptable for approval. I think management should implement some sort of real accountability from the underwriter’s end. CMP: What are your keys to growing your business and achieving such impressive volume? CR: I embrace challenging applications – I receive more referrals due to my problemsolving abilities. Also, I always look for opportunities when there is change. Change is never-ending; therefore, opportunities don’t cease either.

48 DILMOHAN ANEJA Company: DLC Truwest Mortgage Location: British Columbia Total volume: $67.07 million Loans funded: 125

46 MARK GOODE Company: Mortgage Man DLC Location: Ontario Total volume: $67.93 million Loans funded: 392

CMP: What can lenders do to help brokers achieve even higher volume? Mark Goode: Communicate better with brokers and truly be our partners.

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19/04/2018 10:11:32 AM

45 JOSEPH PARK

44 JEFF ATTWOOLL

39 SKYE McLEAN

Company: Verico JP Mortgage Services Location: Ontario Total volume: $68 million Loans funded: 120

Company: Verico Equity Care Mortgages Location: Ontario Total volume: $70.66 million Loans funded: 242

Company: Axiom Mortgage Solutions Location: Alberta Total volume: $76.61 million Loans funded: 205

CMP: How can lenders improve their service to brokers? Joseph Park: BDMs should be educating brokers with more in-depth training based on real case studies.

CMP: What is the biggest challenge facing brokers? Jeff Attwooll: The shortage of balance-sheet lenders – brokers need greater selection for uninsured conventional mortgages.

CMP: What are the biggest challenges facing the industry? Skye McLean: The new rule changes that went into effect in January and large rate buy-downs from other brokers.

43 EITAN PINSKY Company: DLC Pinsky Mortgages Location: British Columbia Total volume: $73.03 million Loans funded: 148

CMP: What advice would you give other brokers looking to grow their business? Eitan Pinsky: Treat Realtors well, be their friends and support them in their business.

42 LUISA HOUGH

41 BILL MACKLEM

Company: Verico Xeva Mortgage Location: British Columbia Total volume: $74.17 million Loans funded: 160

Company: DLC Macklem Mortgages Location: British Columbia Total volume: $74.52 million Loans funded: 199

CMP: What is your key to growing your business? Luisa Hough: [Xeva’s] underwriting centre allows me to focus on my clients and spend more time with my referral sources.

CMP: What is the biggest challenge facing brokers? Bill Macklem: Having branch networks realize we are working with them to achieve goals, not competing against them.

38 LENA OHANJANIANS Company: Verico Ultimate Mortgage and Finance Solutions Location: Ontario Total volume: $77.32 million Loans funded: 165

CMP: How can lenders improve their service to brokers? Lena Ohanjanians: Come up with more lending products to assist newly selfemployed buyers.

37 ISEELA IBRAHIMI 40 PAULA ROBERTS Company: DLC The Roberts Group Location: Ontario Total volume: $75.37 million Loans funded: 173

CMP: How can lenders improve their service? Paula Roberts: Quick turnaround with approvals and not over-conditioning files. CMP: What is the biggest challenge facing brokers? PR: The forever-changing rules that affect the qualifications of strong clients.

Company: DLC Customized Lending Solutions Group Location: Ontario Total volume: $80 million Loans funded: 172

CMP: What advice would you give other brokers looking to grow their business? Iseela Ibrahimi: Provide a high-quality client experience [by tailoring] your approach to the client’s needs, profile or characteristics. Also, ask for referrals from clients and referral sources alike.

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SPECIAL REPORT

TOP 75 BROKERS 36 TRACY LUCIANI PRICE Company: DLC Forest City Funding Location: Ontario Total volume: $80.04 million Loans funded: 271

CMP: What is the key to your success? Tracy Price: Teamwork makes the dream work.

35 DREW DONALDSON Company: Verico SafeBridge Financial Group Location: Ontario Total volume: $81.90 million Loans funded: 115

32 VIKTOR SCHAEFER Company: Verico One Link Mortgage & Financial Location: Manitoba Total volume: $85.05 million Loans funded: 323

CMP: How can lenders improve their service to brokers? Viktor Schaefer: Get access to balancesheet lenders and offer better long-term interest rates.

CMP: What can lenders do to help brokers achieve even higher volume? Drew Donaldson: Greater availability of better-priced one- to four-year terms and more access to rental, stated income, conventional pricing and mortgages above $1 million. More HELOC offerings, combined with a first mortgage, are also desperately needed in this channel. CMP: What are the biggest challenges facing the industry? DD: Rising interest rates, fewer niche programs, the next recession – always ‘when,’ not ‘if’ one will occur – and more government regulation: I see all these as challenges. Having said that, this industry is resilient, and I have high hopes for the future based on the current people involved and the innovation that will take place.

34 MICHAEL WANG Company: The Mortgage Centre – Focal Mortgage Location: Ontario Total volume: $82.62 million Loans funded: 190

33 PEARL KWAN Company: DLC Origin Location: British Columbia Total volume: $82.86 million Loans funded: 114

31 TRACY VALKO Company: DLC Forest City Funding Location: Ontario Total volume: $85.23 million Loans funded: 283

CMP: What are you focusing on to grow your business? Tracy Valko: This year, I am focusing on setting my team apart by being a source of expert information for clients, partners and the community. We are working on putting together different kinds of seminars – for first-time buyers, credit repair, etc. – to set us apart.

CMP: What advice would you give other brokers looking to grow their business? Pearl Kwan: Know the products of different banks thoroughly in order to act competently in front of clients. Knowing different products well helps me to efficiently get clients the mortgages they need.

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30 ANNE BRILL Company: Centum Metrocapp Wealth Solutions Location: Ontario Total volume: $88 million Loans funded: 189

CMP: How can lenders improve their service to brokers? Anne Brill: Review documents more quickly and get back to us in a timelier manner, rather than waiting until the last minute to change or add conditions required.

29 SERGUEI TOTROV Company: DLC Your Mortgage Choice Location: Ontario Total volume: $90.89 million Loans funded: 234

CMP: What can lenders do to help brokers achieve even higher volume? Serguei Totrov: Provide more training and keep us informed about any changes.

27 ENZA VENUTO

28 SUSIE INGLIS

Company: Centum InTouch Mortgage Solutions Location: Ontario Total volume: $95 million Loans funded: 150

Company: DLC Mortgage Evolution West Location: British Columbia Total volume: $94.50 million Loans funded: 170

CMP: What can lenders do to help brokers achieve even higher volume? Susie Inglis: Allow all programs and exceptions that the branches can make available to brokers.

CMP: What can lenders do to help brokers achieve even higher volume? Enza Venuto: Provide more feedback, be visible and give us more information on how we can close more deals.

26 BRIAN HOGBEN Company: Verico Mission 35 Mortgages Location: Ontario Total volume: $100 million Loans funded: 343

CMP: What can lenders do to help brokers achieve even higher volume? Brian Hogben: Provide more tools to help underwriters and fulfillÂ ment officers complete files faster and know what works for them. CMP: What are your keys to growing your business and achieving such impressive volume? BH: I keep in constant contact with clients and perform financial checkups annually.

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SPECIAL REPORT

TOP 75 BROKERS 25 ANGELA CALLA Company: DLC Angela Calla Mortgage Team Location: British Columbia Total volume: $108.47 million Loans funded: 276

CMP: What can lenders do to help brokers achieve even higher volume? Angela Calla: Continue to provide solutions and reach out to their niches.

24 BARRY BABOOLAL Company: DLC National Location: Ontario Total volume: $109.57 million Loans funded: 264

20 JAMES LOEWEN

CMP: How can lenders improve their service to brokers? Barry Baboolal: Communication is key. Lenders need to clearly communicate with brokers what changes they have made to their current policies.

Company: Loewen Group Mortgages Location: Ontario Total volume: $115.91 million Loans funded: 329

23 JOE SAMMUT Company: Mortgage Architects Location: Ontario Total volume: $112.62 million Loans funded: 217

22 VU LE Company: DLC Clear Trust Mortgages Location: British Columbia Total volume: $114.98 million Loans funded: 232

CMP: What is the biggest challenge facing the industry? Vu Le: The new rules laid out by the recent 2018 BC budget in regard to cooling off the Lower Mainland real estate market.

21 DAVE GRIFFIN Company: DLC Griffin Financial Group Location: Ontario Total volume: $115 million Loans funded: 452

CMP: What are your keys to growing your business and achieving such impressive volume? Dave Griffin: Always being available for my clients and making sure their best interests are kept at the forefront.

19 DALIA BARSOUM Company: Streetwise Mortgages Location: Ontario Total volume: $116 million Loans funded: 257

CMP: What are your keys to growing your business and achieving such impressive volume? Dalia Barsoum: Focusing on delivering high-quality advice and service to our clients, having great relationships with the lenders and the partners we work with, and leveraging technology and process efficiencies in everything we do.

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18 KYLE GREEN

14 PAUL GAZZOLA

Company: DLC Homeline Mortgages Location: British Columbia Total volume: $118.45 million Loans funded: 253

Company: Guelph Mortgage Architects Location: Ontario Total volume: $140.83 million Loans funded: 490

CMP: What is the biggest challenge facing the industry? Kyle Green: As the supply of money seemingly continues to shrink, banks continue to pull products from the broker channel, but not the branch channel. As a community, we need to find more and more sources of funding for complicated deals.

CMP: What is the biggest challenge facing the industry? Paul Gazzola: I personally believe one of the biggest challenges is lending partners being limited by funding restraints and therefore being pigeonholed into a space where everyone needs the business to survive and stay in the channel.

17 MAX AFZALIMEHR Company: Syndicate Mortgages Location: Ontario Total volume: $119.82 million Loans funded: 195

CMP: How can lenders improve their service to brokers? Max Afzalimehr: The broker channel needs new products to empower all brokers in helping their clients. Lines of credit in second position, second mortgages offered by A lenders and equity programs are a few programs the industry could benefit from.

16 VARUN CHAUDHRY Company: Mortgage Architects – Kraft Mortgages Canada Location: British Columbia Total volume: $121.39 million Loans funded: 150

CMP: What can lenders do to help brokers achieve even higher volume? Varun Chaudhry: Try to come up with some good, innovative lending products and understand what a mortgage broker is looking to achieve. Sometimes I have seen one lender being stubborn while another lender would look at the deal. In the meantime, a broker could lose the deal and client’s confidence. Also, as brokers, we are still lacking good rental products, which seem to be going away from the broker channel.

15 JASON FRIESEN Company: Verico Premiere Mortgage Centre Location: Ontario Total volume: $134.98 million Loans funded: 249

CMP: What can lenders do to help brokers achieve even higher volume? Jason Friesen: It isn’t on the lenders; we have to constantly adapt to the new realities of the market.

13 MACKENZIE GARTSIDE Company: The Mortgage Centre – Mackenzie Gartside & Associates Select Mortgage Location: British Columbia Total volume: $142.98 million Loans funded: 379

CMP: What are your keys to growing your business and achieving such impressive volume? Mackenzie Gartside: Hiring great staff and developing systems to manage client relationships.

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SPECIAL REPORT

TOP 75 BROKERS

12 JOANNA LANG Company: Outline Financial Location: Ontario Total volume: $146.28 million Loans funded: 220

After graduating from the University of Toronto, Joanna Lang began her career as a financial advisor with TD Canada Trust before becoming a mortgage specialist in 2004. Upon discovering her passion for working with people and helping them manage financial risks, Lang and her husband established The Lang Team, now Outline Financial, in 2012 to provide mortgage and insurance services to clients. Currently, Lang considers the qualifying rules for large loans and self-employed individuals to be the biggest hurdle in the industry. Despite the challenges, Lang continues to grow her business by learning how to build a better company and regularly bringing on new agents.

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11 NICK L’ECUYER Company: Verico The Mortgage Wellness Group Location: Ontario Total volume: $149.64 million Loans funded: 481

CMP: How can lenders improve their service to brokers? Nick L’Ecuyer: The true partners in this business are doing a great job of supporting the mortgage broker community. The pain we are currently feeling is short-term, but having true partners in the business will allow us to get through it.

10 SHABBIR PATEL Company: DLC A Better Way Location: British Columbia Total volume: $156.88 million Loans funded: 246

CMP: What can lenders do to help brokers achieve even higher volume? Shabbir Patel: Provide competitive products like a rental offset policy and a stand-alone rental program.

9 CHRISTINE XU Company: Moneybroker – Mortgage Architects Location: Ontario Total volume: $159.85 million Loans funded: 320

CMP: What are your keys to growing your business and achieving such impressive volume? Christine Xu: Being honest and upfront.

8 WIN LUI Company: DLC Clear Trust Mortgages Location: British Columbia Total volume: $177.25 million Loans funded: 347

CMP: What are your keys to growing your business and achieving such impressive volume? Win Lui: Providing quick turnaround time and always keeping the client and referral sources up-to-date on the status of the application.

7 LEV KESELMAN Company: Verico Paragon Mortgage Location: British Columbia Total volume: $179.63 million Loans funded: 355

6 SHAWN STILLMAN Company: Mortgage Outlet Location: Ontario Total volume: $194.82 million Loans funded: 425

CMP: What advice would you give other brokers looking to grow their business? Shawn Stillman: Hire the right people – without my team, these volumes would not be possible. We try to build a positive environment where people love to work and add fun to the mortgage process. CMP: What is the biggest challenge facing the industry? SS: Increased fraud with increased regulations. With fewer people qualifying for A mortgages, the urge for borrowers to commit fraud increases.

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SPECIAL REPORT

TOP 75 BROKERS 5 ELVIS HUI Company: DLC Guaranti Mortgages Location: British Columbia Total volume: $205.80 million Loans funded: 347

In late 2012, Elvis Hui started his mortgage career with zero banking or financing experience. Six years later, he is one of the nation’s leading brokers, making his third consecutive appearance on CMP’s Top 75 Brokers list. Since moving to Canada in 2006, Hui has been active with Light and Love Home, and his family volunteers with the organization weekly. When asked about the biggest challenge facing the industry, Hui points to consumers’ tendency to use banks for mortgage financing due to a lack of understanding about how mortgage brokers can help them. To combat that issue, Hui educates individuals about the value brokers can provide through his WeChat blog.

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4 SCOTT TRAVELBEA Company: DLC Travelbea & Associates Location: British Columbia Total volume: $213.06 million Loans funded: 453

1 DAVE BUTLER

CMP: What are your keys to growing your business and achieving such impressive volume? Scott Travelbea: We develop a personal borrowing plan for each of our clients while offering the highest level of service. Someone is always available to answer their questions. CMP: How can lenders improve their service to brokers? ST: Work with us on more common-sense lending instead of black-and-white decision-making.

3 COLLIN BRUCE Company: DLC Mortgage Mentors Location: Alberta Total volume: $343.77 million Loans funded: 1,105

CMP: What are your keys to growing your business and achieving such impressive volume? Collin Bruce: This was our toughest year! We really had to diversify and increase our referral sources, builder business and advertising. Alberta is now out of the recession. With all of our extra deal sources, we expect to have a record year in 2018. CMP: What is the biggest challenge facing brokers today? Collin Bruce: Monoline lenders competing with banks on conventional financing.

2 SHAWN ALLEN Company: Verico Matrix Mortgage Global Location: Ontario Total volume: $389 million Loans funded: 487

CMP: How can lenders improve their service to brokers? Shawn Allen: Many times I have gone through a deal with a BDM and they advise me to submit, and then it gets declined by underwriting staff. It would be helpful for BDMs to be more in touch with the underwriters so that the funding ratios remain above the 50% threshold.

Company: Butler Mortgage Location: Ontario Total volume: $425.86 million Loans funded: 1,132

Hailing from a family of mortgage professionals, Dave Butler funded $17 million in the first year of his mortgage career; 15 years later, he is the number-one broker on CMP’s Top 75 Brokers list. Since he started in the industry, Butler has steadily increased his volume and units funded every year. He operates a referral-only business, refraining from advertising or operating on rate sites, focusing instead on the customer experience. “The biggest challenge facing our industry is the fact that the customer experience is not the focus anymore,” he says. “Nowadays, the broad focus appears to revolve around churning out mortgages as if they are something that comes off a conveyor belt. Unbeknownst to those brokers, that’s the whole reason why our industry exists – because many years ago, banks stopped focusing on the customer experience, and it created demand for mortgage professionals who would give clients a different experience than the banks.” Butler credits a lot of his success to his team, which has adopted the ‘customer first’ mentality he has always prioritized. That team now includes Butler’s son, Skyler, who began working at Butler Mortgage in May 2017.

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SPECIAL REPORT

TOP 75 BROKERS

TOP 20 SMALL MARKET BROKERS LARGE MARKETS might get most of the attention, but mortgage brokers in Canada’s smaller markets are also funding impressive volumes. CMP’s Top 20 Small Market Brokers list recognizes the brokers and agents who have the highest total funded volume in small markets – those who did at least 80% of their deals in MLS-identified cities, towns or regions where the average home price is less than $320,000.

14 MICHELLE McCULLOUGH Company: Invis Location: Prince George, BC Total volume: $39.6 million Loans funded: 152

$1.04 billion $887 million

13 ROBERT JENNINGS 3,839

4,006

Total number of deals in 2016

Total number of deals in 2017

Company: Verico East Coast Mortgage Brokers Location: St. John’s, NL Total volume: $40.2 million Loans funded: 150

Total funded volume in 2016

Total funded volume in 2017

12 TYLER YATES 20 DEANNE WHELAN

17 MITCH THIBODEAU

Company: Verico East Coast Mortgage Brokers Location: St. John’s, NL Total volume: $21.29 million Loans funded: 90

Company: Verico The Mortgage Professionals Location: Kingston, ON Total volume: $24.8 million Loans funded: 98

11 JANET MACDONALD

19 RAQUEL WELCH

16 LISA J. GRYBA

Company: Verico The Mortgage Professionals Location: Kingston, ON Total volume: $21.44 million Loans funded: 88

Company: Verico One Link Mortgage & Financial Location: Steinbach, MN Total volume: $29.2 million Loans funded: 134

18 LYNDA RIDDELL

15 MATTHEW WHEELER

10 RIEL SYRENNE

Company: Verico Premiere Mortgage Centre Location: Halifax, NS Total volume: $31.95 million Loans funded: 125

Company: TMG The Mortgage Group Location: Saskatoon, SK Total volume: $50.56 million Loans funded: 188

Company: The Mortgage Centre – Sarick Financial Group Location: Peterborough, ON Total volume: $21.45 million Loans funded: 83

Company: Verico The Mortgage Wellness Group Location: Sarnia, ON Total volume: $40.37 million Loans funded: 171

Company: Mortgage Alliance Kingston Mortgage Solutions Location: Kingston, ON Total volume: $43.46 million Loans funded: 184

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9 GERT MARTENS

3 MARK GOODE

2 VIKTOR SCHAEFER

Company: DLC HT Mortgage Group Location: Grande Prairie, AB Total volume: $50.75 million Loans funded: 184

Company: DLC Mortgage Man Location: Orillia, ON Total volume: $67.93 million Loans funded: 392

Company: Verico One Link Mortgage & Financial Location: Winnipeg, MB Total volume: $85.05 million Loans funded: 323

8 KEVIN LIDDIARD Company: DLC Easy Street Mortgages Location: Niagara, ON Total volume: $52.59 million Loans funded: 187

7 DEBORAH WHITE Company: DLC White House Mortgages Location: Vernon, BC Total volume: $59.76 million Loans funded: 195

6 TODD PAYZANT Company: Neighbourhood Dominion Lending Centres Location: Sudbury, ON Total volume: $61 million Loans funded: 222

5 SCOTT H. BENTLEY Company: Verico Premiere Mortgage Centre Location: Halifax, NS Total volume: $61.3 million Loans funded: 195

4 KEN LANKIN Company: The Mortgage Centre â&#x20AC;&#x201C; Your Mortgage Professionals Location: Niagara, ON Total volume: $65 million Loans funded: 280

1 DAVE GRIFFIN Company: DLC Griffin Financial Group Location: Peterborough, ON Total volume: $115 million Loans funded: 452

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19/04/2018 10:09:14 AM

PEOPLE

BROKER INSIGHT

A fresh approach to mortgages Doug Adlam of Champion Mortgage tells CMP why he started a new type of brokerage – and how he’s making it work CMP: What made you first get into the mortgage broker industry? Doug Adlam: My parents started real estate business in Mississauga in 2001 and later added mortgages as a complementary service. I started helping them grow the business while I was at university, mainly helping out in marketing and branding. Then in 2007, I worked on a business plan for taking a different approach to the mortgage business and the brokerage structure. I launched a new mortgage business in January 2008.

CMP: How is your structure different? DA: In 2008, the typical mortgage brokerage was modeled after real estate – you had a principal broker and then a bunch of mortgage agents who do their own thing. Those agents were responsible for finding their own business, meeting with clients, taking applications, understanding underwriting rules and preparing all of the paperwork for approvals – everything right through to the closing and then all of the after-close customer service support. I thought that model wasn’t really a business because it is essentially made up of a lot of individual businesses, which are the agents who work with the company. I saw that it could be done in a different way. The mortgage process is extremely complicated from beginning to end, and I thought it would be a good idea to find professionals with individual areas of expertise – skills

like bringing in new business, client relations, adjudicating and underwriting mortgage files, documentation support, problemsolving, and [ensuring the] accuracy of mortgage signing packages.

CMP: How has Champion Mortgage been able to keep growing? DA: I attribute it to a really strong foundation and a clear vision. When we first started out, the goal was – and still is – to be the benchmark for mortgage brokering, to be the new standard. We wanted to create a new and better way of doing things. We’ve been able to accomplish that through open communication with our clients and asking for feedback. We aren’t so egotistical that we think we have figured it all out, and we realize the only way you can survive in any business is to continue to innovate and reinvest in your team and your customers’ experience.

CMP: Which markets do you focus on, and how has business been so far this year? DA: Our primary markets are Missis-

sauga and Guelph, although our biggest market share is in the Guelph area and the surrounding towns of Kitchener, Cambridge and Waterloo, and right through to the GTA. We are definitely seeing a stall on the real estate side in our markets in terms of new listings and purchases. However, they are happening, and it has not completely stopped. In the last two weeks, we have done more pre-approvals than in the previous 90 days, so it has seen a pickup. I think Canadians are starting to see that the feared fallout of the economy hasn’t happened and that there are still great homes available.

CMP: What tips would you give to brokers who want to grow their books of business? DA: Be honest with yourself about the level of service you are providing your current clients after they have set their mortgage up. Ensure that you are keeping your clients informed about all of the changes how they might be impacted. Start to have discussions about what might happen if interest rates continue to go up. Start to look for

ADLAM ON THE CURRENT STATE OF THE MARKET “Canadians have had to readjust their homeownership goals. Between interest rates going up and rules changing, those trying to buy their first homes, in particular, have had to move their goal away from buying a 2,000-square-foot detached home and think maybe about a townhouse, a semi or even an apartment condo. It has taken a while for purchasers to change their philosophy, but this is the new reality.”

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FAST FACTS: DOUG ADLAM

President and mortgage broker at Champion Mortgage

Has been in the industry since 2003; started Champion Mortgage in 2008

Specializes in first-time homebuyers and debt consolidation

“We aren’t so egotistical that we think we have it all figured out, and we realize the only way you can survive in any business is to continue to innovate and reinvest in your team and your customers’ experience” partnerships with financial planners who can help clients budget appropriately and plan for increasing interest rates. It’s also important to ensure you have the right partnerships with the right lenders. If things continue to get difficult in terms of rules and house prices, it’s crucial to have relationships with lenders that have enough products – and the right products – to help and protect your clients. Really make sure you look at the fine print. Take the time to

examine the standard charge terms and really understand the mortgage you are providing to your client.

CMP: What do you get up to in your spare time? DA: I spend the winters in the hockey rink. I referee junior hockey – that includes everything from university hockey all the way down to Junior C. In the summer, I spend time up at the family cottage.

Received the 2015 Canadian Mortgage Award for Best Customer Service from an Individual Office

Is part of CMHC’s Broker Advisory Group

Active supporter of many local and international charities and a member of the Rotary Club of Guelph

www.mortgagebrokernews.ca

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19/04/2018 9:26:33 AM

SPECIAL PROMOTIONAL FEATURE

COMMERCIAL SERIES

Zero in on a commercial niche

The Financing Hub’s Paul McGill outlines how the broad diversity in the commercial sector gives brokers the ability to become an expert in a single property type

IN RESIDENTIAL brokering, specialization typically means focusing on A or Alt-A borrowers, business-for-self borrowers or perhaps new-to-Canada borrowers. Brokers usually don’t specialize in just condos or single-family houses or duplexes. That’s because the vast majority of residential lenders don’t have stated preferences for property types. Frankly, there’s little need to because the purpose is always the same – for people to live in them. This is not the case in commercial lending. Commercial buildings tend to have specific tenants, uses and characteristics. An office building, for example, would not be used as a multi-tenant retail outlet. A large warehouse would not be rented out to 35 families to share, just as no company would rent all the units in an apartment building to set up their manufacturing operations. If you’re thinking about moving into commercial brokering, you should consider taking advantage of these unique subset characteristics and focus on one pocket of the business, rather than spreading your efforts over multiple property types. Property owners tend to build their investment and lending strategies around these common elements. Most smaller multi-family property owners, for instance, don’t often have a cluster of office buildings mixed in with their portfolio. The good news for brokers

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looking to build a market niche is that people within these commercial subsets tend to know each other. They have the same issues, so they belong to the same associations and attend the same conferences. As a residential broker, you’ve probably taken the time to learn how to assess and present your borrower’s income in the best possible light. Where there are issues with that income, you do your best to show your lenders solutions that help compensate for the negatives. If you’re planning to make the move to commercial brokering and its higher rewards, you need to put that same effort into learning

how to assess and present a building and its income potential.

Single focus = better results In the previous issue of CMP, I talked about how to use your applications to tell the best possible story. When you focus on a specific niche, the selling points

you identified in past submissions (or variations on those points) will come back time and again. Each time they arise, your answers will get stronger, increasing your potential to close the deal. Lenders in the commercial mortgage market tend to have very specific acceptance criteria. That’s one of the key reasons why the

The upfront work you’ll be doing will bring faster returns because it will be targeted at a smaller but more relevant group

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SPECIAL PROMOTIONAL FEATURE

COMMERCIAL SERIES

Leverage the knowledge you’ve acquired about your niche. As you gain more knowledge, you can size up an opportunity faster and more accurately Financing Hub platform exists – so you as the broker can spend less time shopping for the right lender. By focusing on one niche, you’ll gain a better knowledge of exactly what you should be presenting to lenders, where their outer edges are and what unspoken criteria they’ll use to make their final decisions. That advantage alone will allow you to close more deals. By narrowing your focus, you’ll learn who’s who within your niche market – who the leaders and influencers are, and who you want to do business with. The upfront work you’ll be doing will bring faster returns because it will be targeted at a smaller but more relevant group.

Where to start Once you’ve narrowed down the property type and size you’re going to focus on (e.g. office buildings with between six and 40 units), where do you go from there? Let’s start with conferences. Did you know there are more than 75 real estate conferences

being held over the next 12 months? They can be found in cities all across Canada. Add in the small local forums, and those numbers grow even further. Already this year, I have been to three of the larger conferences, where I met property owners, lenders and other industry participants. But interestingly, I rarely meet more than a handful of mortgage brokers at these conferences. Imagine being in a conference with 300 property investors and lenders, and you are one of the very few mortgage brokers in the room. With all those conferences and local forums to choose from, you’ll find the one your target clients are going to. Now let’s go back to the who’s who in your niche. Commercial real estate ownership takes a team: commercial Realtors for both the purchase and as leasing agents postacquisition, commercial lawyers, property managers, construction and maintenance support, even structural engineers. All of these people are working with, and looking for, the same clients you are. It’s a broad pool of potential referral partners. One last suggestion for pulling business from your subset: Leverage the knowledge you’ve acquired about your niche. As you gain more knowledge, you can size up an opportunity faster and more accurately. Use that. For example, when you see a property in your area go up for sale, contact the Realtor with potential financing estimates. If you identify an issue with the tenant situation, advise the Realtor so they can work with you and the prospective buyer to get it solved so it doesn’t become a reason for a funding decline. It won’t be long before you’re known as the expert among the group of professional property investors you want to work with.

Paul McGill is president of The Financing Hub, which is dedicated to delivering effective digital solutions for commercial real estate financing.

www.mortgagebrokernews.ca

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More Options. More Lenders. More Solutions.

The Financing Hub Brings Online Technology to the Commercial Mortgage Application Process Discover More:

www.TheFinancingHub.com In exclusive partnership with MERIX Financial

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PEOPLE

CAREER PATH

OUT OF THE BOX

Whether in business or life, Chris Nichilo has never hesitated to push the envelope A year spent working on a Disney cruise ship gave Nichilo an insider’s view of how the magic was created. He realized the principles Disney was founded on could be applied to any business “Disney was a life-changing experience for me. It taught me to fully appreciate what goes into creating a memorable customer experience. The foundation of everything I do in my business came from what I learned on the ship”

1999

BRINGS THE MAGIC

2007

COMES OF AGE

2000

TAKES THE STAGE Nichilo travelled the world as part of a Backstreet Boys tribute act in which he played Kevin. Not only did he perform, but after a band coup displaced their management, he also turned his hand to co-managing, promoting and producing the show “I did the audition on a whim and ended up on what became a four-year tour. It was my first experience as an entrepreneur”

2009

INVENTS THE METHOD

Closing in on 30 and feeling like he wasn’t properly equipped to manage money, Nichilo began asking a lot of questions in the name of getting a better handle on his own finances “Everyone gave me a different answer, and I thought, ‘Maybe no one really knows – perhaps there’s a need for this kind of learning.’ It was the beginning of a 10-year journey of self-education”

The culmination of Nichilo’s financial self-discovery was his creation of The Method, which he describes as “a two part strategy that any Canadian can use to pay their mortgage off in half the time [and] reduce interest costs by as much as 65%.” He began teaching it to others free of charge “The Method took a long time to develop, but it was worth it because it truly makes a difference”

2016

WINS RECOGNITION

2013

LAUNCHES MAGNETIC After spending six years as a mortgage agent, Nichilo decided he was ready to strike out on his own and launched Magnetic Capital Group, a mortgage brokerage and administration company committed to using The Method

“I figured the only way to be able to do things my own way was to open my own brokerage. We teach people two things: how to manage their largest debt – that’s The Method – and how to leverage this wealth”

Nichilo saw his hard work pay off when Magnetic was acknowledged as a national financial literacy leader by Mortgage Professionals Canada “It was a big deal for us; they were recognizing a body of work that was almost a decade long. Being recognized by your peers and the largest [mortgage industry] organization in the country is very humbling”

2017

LAUNCHES THE MORTGAGE EXCHANGE Nichilo’s most recent enterprise is a marketplace where borrowers, lenders and mortgage professionals can buy, sell and trade their interests in private mortgages “It’s a mortgage exchange, like the stock exchange. If [consumers] want to participate in private mortgages, there’s no real place to do that. We created a place where that business can be done in a predictable manner. We can help put a deal together to create a win-win situation” www.mortgagebrokernews.ca

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19/04/2018 9:24:34 AM

PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email mortgagebrokernews@kmimedia.ca

ea rd s g o , b : is le u r “T h e s e co n d id la p n e h ” f irst, t y o n e e ls e, t h e n e ve r jo k e s n Mid dlet o

Number of axes Middleton has available at his axe-throwing range

AN AXE TO GRIND When he’s not promoting the country’s leading brokers, Jackson Middleton can often be found flinging an axe

JACKSON MIDDLETON’S decision to take up axe-throwing was cemented when he saw a notification on his Instagram feed that some friends had joined an axe-throwing range. “I thought, ‘Is that even a thing?’ Middleton recalls. “I looked up and said to my bud, ‘Do you want to start an axe-throwing range?’, and he said, ‘Yeah.’ Middleton, who runs Kilted Media, a marketing company that works exclusively with mortgage professionals, was in the unusual position of being able to follow up on that impulse. He lives in a converted elementary school on Vancouver Island with his wife and four children, and the family had found

165

Score of a perfect axethrowing game

Age of Middleton’s oldest axe-throwing customer; he landed an axe

no use for the school’s 3,000-square-metre gymnasium. That all changed on St. Patrick’s Day 2017, when Middleton opened the VanIsle Axe range. At the range – which is currently on a brief hiatus – axe-wielding teams can compete in ‘frames’ (“like bowling, but way cooler,” Middleton says), culminating in a final round where direct hits on the dots above the target can change the outcome drastically. “You can suck all game and then crush the clutch and win,” Middleton says. However, he’s noticed that “half the groups that come in don’t even keep score; they are here to have fun.”

48 www.mortgagebrokernews.ca

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19/04/2018 9:18:59 AM

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19/04/2018 9:19:06 AM