MORTGAGEBROKERNEWS.CA ISSUE 16.02 | $12.95
2021
Canada’s 20 best independent brokerages offer a blueprint for branching out on your own
MIXING BUSINESS AND FAMILY
What you should know before bringing a family member into the fold
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FIGHTING RACISM IN THE BROKER CHANNEL
Where the industry is getting it right on diversity and inclusion – and where it still needs work
ANOTHER BLOW TO ALBERTA
How will the Keystone XL pipeline cancellation affect the province’s market?
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ISSUE 16.02
30
UPFRONT 02 Editorial
In the race to implement new tech, lenders can’t leave brokers behind
04 Statistics
Key data that should be on your radar this month
06 News analysis
FEATURES
19
AN ONLINE CAFÉ FOR BROKERS
Community Trust opens the doors to a new virtual hub for brokers
INDUSTRY ICON
The financial industry gave broker Graeme Moss a second chance at a career – and now he’s making sure credit-challenged borrowers get another shot, too
CIBC warns that Canada’s housing market could be in for another shift as the pandemic abates The commercial segment appears to be headed for a big rebound in 2021
TOP INDEPENDENT BROKERAGES
PEOPLE
08 Bank update
10 Commercial update
SPECIAL REPORT
The leaders of some of this year’s Top Independent Brokerages talk to CMP about the joys and pitfalls of building their own brands
Local experts weigh in on how the cancellation of the Keystone XL pipeline could affect home sales in Alberta
FEATURES
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LEADERS OF CHANGE
CMP checks in with four industry leaders who have stepped up to fight racism to find out how the broker channel can do better
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12 Opinion
Five things to consider before going into business with a family member
FEATURES 26 Change agent
How title insurance provider FCT has rolled with the punches of COVID-19
28 Full coverage
Why lenders can benefit from an expert review of borrowers’ insurance policies
38 The fight for visibility Four ways to make your online presence known
PEOPLE 40 Other life
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For 100 Brokers Who Care founder Sabeena Bubber, giving back is a way of life PEOPLE
FROM DABBLER TO DYNAMO Broker Alex Lavender’s rapid success is a testament to the power of perseverance
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UPFRONT
EDITORIAL
Don’t forget about brokers
I
n the rush to capitalize on today’s ultra-competitive markets, private lenders have thrown their arms around tech with the sort of warm embrace you’d expect to be reserved for reuniting with loved ones after months of lockdown. The technology that powers mortgage deals has become an increasingly important differentiator. Not every private lender has access to the same technology, but borrowers have strong expectations – for everything from Amazon deliveries to same-day instant e-transfers, they want speed and security. Just an hour can make all the difference in the home-buying process, making it vital for lenders to be able to quickly import applications and have deals reviewed and approved as fast as possible. Josie Milanetti, director of underwriting at Canadian Mortgages Inc., told MortgageBrokerNews.ca in February that tech’s importance has only increased since the onset of the pandemic. It’s a change that’s likely to remain, even when COVID-19 is firmly in our rearview mirrors.
It doesn’t matter how good your systems are if you can’t get the deal over the finish line “One of the great things about having the right technology in place is that we can keep people safe,” she said. “We collect documents electronically, no-contact appraisals have been implemented, and we encourage our broker partners to use virtual signatures. I don’t really see that changing in the future.” However, amid the rush for efficiency, it’s also crucial that lenders understand the key role that brokers still play in their business and offer the right support. As Milanetti explained, some mainstream lenders are looking to funnel deal submissions through a pool of unknown underwriters. But lenders that truly want to stand out in the market will assign underwriters and BDMs directly to their broker partners to strengthen relationships and ensure they have a better understanding of clients. After all, it doesn’t matter how good your systems are if you can’t get the deal over the finish line. By working together to turn deals around quickly, both the lender and broker can come out of the transaction looking great to borrowers. It’s vital that lenders never lose sight of giving brokers the support they need to get things done quickly – and in a way that will ultimately strengthen relationships. The team at Canadian Mortgage Professional
www.mortgagebrokernews.ca ISSUE 16.02 EDITORIAL Managing Editor Paul Lucas Editor Clayton Jarvis News Editor David Kitai Writers Ephraim Vecina Pete Miller Copy Editor Clare Alexander
CONTRIBUTORS Neil M. Beaumont Nicola Moras
ART & PRODUCTION Designer Joenel Salvador Production Coordinators Loiza Razon Kat Guzman Ella Dayandante Client Success Coordinator Cole Dizon
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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
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Ready for VIRTUALLY anything! No more zoom style meetings, conferences or networking. Here comes a whole new level of digital innovation. thecentumnetwork@centum.ca | thecentumnetwork.ca ®/™ trademarks owned by Centum Financial Group Inc. (C) 2020 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 MORTGAGE DEBT REACHES A RECORD HIGH
IS CANADIANS’ BORROWING SPREE SUSTAINABLE? Historically low interest rates have inspired a spate of borrowing that a significant portion of Canadians might not be able to afford, according to a recent analysis by MNP, which found that 28% of Canadians have taken on more debt as a direct result of the pandemic. And the borrowing spree might not yet be over – only a relatively small percentage of respondents to MNP’s survey were confident that they had the financial means to handle regular expenses or major events in 2021 without taking on even more debt.
ADDITIONAL TYPES OF DEBT TAKEN ON DURING COVID-19
$1.66 trillion
15%
Total household mortgage debt balance in Canada as of November 2020
15% 10% 10%
8%
5%
$2.4 trillion
3%
Total household credit debt in Canada as of November 2020
3%
0% Credit cards
$28.7 billion
Total volume of mortgages originated during the third quarter of 2020
Money from friends/family
Lines of credit
Bank loans
Payday loans
CANADA LEADS THE G7 IN HOME PRICE GROWTH Not even a pandemic could put the brakes on Canada’s housing market. Real estate price growth in Canada outpaced every other G7 nation in the third quarter of 2020; annually, prices were up 17.1% nationwide. Price growth is expected to be slightly muted but still strong in 2021 – CIBC predicts prices will rise by 11.2% this year, while RBC projects an 8.4% jump.
ANNUAL HOME PRICE GROWTH AMONG THE G7 NATIONS, Q3 2020 10%
8.27% 6.99%
8%
4.70%
6%
7.4%
3.45%
4%
Annual pace of growth in national mortgage debt in November
2%
4
2.17%
1.15%
0% Canada
Source: Statistics Canada
2.94%
Germany
France
United States
United Kingdom
Italy
Japan
Sources: US Federal Reserve, Canadian Real Estate Association
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SAVINGS HAVE BALLOONED DURING THE PANDEMIC
CANADIANS’ CONFIDENCE IN THEIR ABILITY TO HANDLE FINANCIAL MATTERS IN 2021
The economic uncertainty caused by COVID-19 prompted Canadian households to save nearly 15% of their disposable income in 2020, according to Finder.com. That’s nearly five times what Canadians saved in 2019, but the trend isn’t expected to last. The quarterly savings rate had already dropped to 10.9% in the fourth quarter of 2020 and is expected to fall to 9.9% in Q1 2021.
50%
40%
43%
CANADIANS’ AVERAGE ANNUAL SAVINGS AS A PERCENTAGE OF DISPOSABLE INCOME
30%
16% 14%
29%
12%
25%
20%
10% 8%
10%
6% 4% 2%
0%
Can handle life-changing events without further debt
Can cope with loss of Can cover living expenses for the next employment/reduced hours year without going further into debt
3.0%
14.8%
9.9%
5.4%
2019
2020
2021*
2022*
0%
*Projected
Source: MNP Consumer Debt Index, January 2021
Source: Finder.com analysis of OECD data
RENTING TRUMPS OWNING IN MAJOR CITIES
INFLATION EXPECTED TO PICK BACK UP The effects of the COVID-19 pandemic drove inflation in Canada down to an average of 0.7% for 2020 – its lowest level since 2009. However, economists expect it to begin climbing back toward 2% – the Bank of Canada’s target for healthy inflation – in 2021.
ANNUAL INFLATION RATE
The gap between the cost of owning and renting a condo intensified in the nation’s major urban markets last year, according to data from CMHC. The gap was most severe in Toronto, where the cost of condo ownership is now nearly double that of renting.
DIFFERENCE IN COST BETWEEN OWNING AND RENTING A CONDO
3%
7%
Edmonton
2%
86%
1%
56%
Vancouver
Toronto
0%
2015
2016
2017
2018
2019
2020
2021*
2022* *Projected
Sources: Statistics Canada, FocusEconomics
Sources: Better Dwelling, CMHC
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UPFRONT
NEWS ANALYSIS
What’s in the pipeline for Alberta? Industry players weigh in on how the cancellation of the Keystone XL pipeline might impact mortgage demand and home values in the province
COVID-19 HAS created no shortage of opportunity for market observers to begin howling yet again about the long-rumoured Canadian housing crash. The chances of the housing markets in all 10 provinces tanking simultaneously are slim, but most experts believe that if any single provincial market were to experience a massive sell-off triggered by a painful decrease in home values, it would most likely be Alberta. Alberta might no longer be the jewel of the Canadian economy, but its population of more than 4.4 million makes it the country’s fourth largest housing market. Because
would have created an estimated $30 billion in additional revenue for Alberta, shouldn’t result in any pronounced economic pain. “If production continues to grow and pipeline capacity doesn’t keep up, the absence of [Keystone] XL points to ongoing pressure on the pricing of Alberta oil,” Porter says. If production stabilizes, however, and new pipeline capacity comes on-stream, Porter believes the overall impact “may not be nearly as negative longer term.” But does the cancellation of a project that would have supported the province’s main economic driver pose a threat to the stability
“This is the second time Keystone has been cancelled, so it’s just not cutting as deep as people might expect” Brett Turner, Redline Real Estate housing demand has historically been tied to the state of the province’s oil industry, many are wondering what US President Joe Biden’s recent cancellation of the Keystone XL pipeline will mean for Alberta’s homeowners and the brokers who serve them. According to BMO chief economist Doug Porter, the scrapping of the project, which
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of Alberta’s housing market? The local experts CMP spoke to all said no. Brett Turner, a Realtor at Redline Real Estate who owns several investment properties in Calgary, says many in Alberta thought the cancellation of Keystone XL was a done deal the moment Biden was elected, and he’s seen no panic among his clients regarding
their ability to make their mortgage payments. “That wave happened in 2016,” he says. “Anyone who panicked about being overleveraged and not positioned for cash flow got out then. This is the second time Keystone has been cancelled, so it’s just not cutting as deep as people might expect.” Mark Herman, a Calgary-based broker with Mortgages Are Marvellous, adds that “pretty much anyone” who purchased a home in Alberta in the last five years has been dealing with decreasing home prices. Most buyers who put 5% or 10% down on their homes, he says, are now underwater. “But they need to live somewhere, and things are good enough that they can still make their mortgage payments,” he adds. “Owning still lets you have pets, paint the walls and turn the music to 11 when you want to. This is a temporary part of the standard eight-year Alberta business cycle, and most are used to it by now.” Tiffany Young, who operates a real estate investment group in Edmonton alongside her Realtor husband, shares this pragmatic view. “This announcement is quite similar to maybe 50 others we’ve had over the years, where it seems like it’s going to be a massive
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THE ALBERTA MARKET AT A GLANCE Alberta’s housing market appears more than able to handle the cancellation of Keystone XL; CREA has predicted strong gains in sales and prices for 2021.
Average price growth in Alberta 8%
7.4%
6% 4%
4.0%
2% 0% -2%
-2.4%
-4%
2019
2020*
2021*
Sales activity growth in Alberta 18%
17.8%
16%
deal, but really, when we look at the overall view of it, it’s really not,” she says, adding that much of the work on Keystone XL would have taken place in the US, meaning its benefits “weren’t going to be felt in Alberta for a few years anyway.” Herman is more concern about the effects of COVID-19, noting that investors in the province’s short-term rental market could be headed for a bust if international travel doesn’t resume.
“We do notice, when there are many projects going on, that we get calls from professionals who have relocated for work and that they buy larger, executive-style homes,” Herman says, adding that two years ago, when the Trans Mountain pipeline expansion project was given approval, his brokerage “funded more than $6 million in mortgages in less than three weeks for employees at the companies involved.” Overall, both Young and Turner believe
“This is a temporary part of the standard eight-year Alberta business cycle, and most are used to it by now” Mark Herman, Mortgages Are Marvellous “We have many Airbnb owners who are having a tough time covering mortgages,” he says. “The travellers for business and holidays are not there with the lockdown.” While homeowners might not suffer any ill effects from Biden’s Keystone XL plugpulling, there will be lost opportunities for the province’s mortgage brokers.
the good outweighs the bad when it comes to Alberta’s real estate fundamentals. “Calgary’s population is growing faster than Canada’s and is tied for fourth fastest in the country, ahead of Vancouver, Toronto and Montreal,” Turner says. “We have low rental stock here, so investors who purchased properly are enjoying solid occupancy and low
12% 8% 4% 0% -4%
-0.2%
-0.2%
2019
2020*
2021* *Projected Source: Canadian Real Estate Association
vacancy right now.” Young’s optimism for the housing market stems in part from Alberta’s rapidly diversifying economy. “Over the last seven, eight years, we’re more diversified, not only in different industries, but in oil and gas,” she says. “We’re really getting into this green energy stuff in Alberta, where these companies are having to switch gears.” Alberta brokers should have plenty to keep them busy in 2021 – and if not, Herman says there’s always business to be had in Calgary’s previously oversaturated condo sector. “In 2020, we did a record number of condos,” he says. “If brokers love doing two times the work for smaller condo mortgages, that entire messy ball of string can be unwound just enough to hang yourself with.”
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UPFRONT
BANK UPDATE NEWS BRIEFS Canadian banks urged to disclose data on race and income
Business groups have called on the Canadian government to compel Canadian banks to disclose race, gender, income and neighbourhood data to ensure more equitable credit and loan access. The collection of such information is common at US banks, which have tracked this kind of customer information for more than 40 years. “Four of our six big Canadian banks own US banks and have, for decades, followed the US law in the US, but they have not done anything up here to track and disclose discrimination,” Duff Conacher, co-founder of Democracy Watch, told The Canadian Press.
RBC predicts healthy home price growth for 2021
RBC’s latest housing market forecast has projected an 8.4% increase in Canada’s benchmark price this year, to $669,000. The bank expects the greatest gains in British Columbia, Central Canada and parts of Atlantic Canada; only Newfoundland is projected to experience a price drop in 2021. “The aggregate benchmark price increased 8.5% in Canada in 2020, or almost five times the rate of 1.8% in 2019,” RBC said in its report. Underpinned by tight supplydemand conditions in most areas of the country, the bank expects “this solid momentum to be sustained in 2021.”
Laurentian Bank makes new appointments to executive team
Laurentian Bank has announced three new senior executive appointments. Yves Denomme has been named EVP of operations, charged with overseeing the bank’s corporate logistics and operations
teams as they work to streamline customer processes. Adam Swinemar has joined the bank as the SVP of digital banking, responsible for leading digital adoption priorities. Sébastien Bélair has been appointed EVP and chief human resources officer, tasked with managing the strategy for empowering employees to work collaboratively in an inclusive workplace.
BMO signs United Nations sustainable banking pledge
BMO has signed the UN’s Principles for Responsible Banking, which aim to create an environmentally sustainable banking system. BMO’s participation commits it to aligning its business strategy with the UN Sustainable Development Goals and other frameworks in pursuit of a netzero carbon economy. “Banks have a critical role to shape and finance a more sustainable future,” said Darryl White, CEO of BMO Financial Group. “The work we do with our clients and stakeholders to understand and mitigate the impact of our operations and financial activity is an important part of how we’ll achieve it.”
New platform links business owners with lenders
LendX Financial has rolled out a platform that enables clients to obtain commercial mortgages and business loans from a range of lenders, including TD Bank and Scotiabank. LendX assists businesses looking for commercial financing and construction loans, with a focus on office expansions, new development, restructuring, mergers and acquisitions. LendX said its platform particularly caters to small businesses looking for new or improved locations “that will enable them to efficiently increase operations or provide a higher service level.”
CIBC warns of another market shift The end of remote work could derail booming secondary real estate markets, according to the bank’s economists
The unprecedented strength of secondary and tertiary real estate markets – a phenomenon triggered by COVID-19’s remote work revolution – is likely to wane once the pandemic subsides and employees once again return to the office, according to a recent CIBC analysis. “Should COVID fade into the background, as is expected, the vibrancy of cities will return, and so will the demand for housing within them,” CIBC economists Benjamin Tal and Royce Mendes wrote in a mid-February report. “The question for many employers is not if they will end work-from-home policies. Rather, it’s simply a question of when they will require employees to return to the office.” In an interview with Bloomberg, Tal said the work-from-home trend, while a boon for Canadian employees – and Realtors and mortgage brokers working in smaller markets – is ultimately unsustainable. “It will probably continue over the next few months,” he said, “but let’s picture our lives a year from now, 10 years from now. A huge amount of labour will go back to the office. A lot of that would be in big cities. All of a sudden, you find that you have to commute maybe two or three times a week,” potentially adding hundreds of dollars to a household’s monthly expenses and making an ‘affordable’ rural life much harder to maintain. But some industry players, like RateSpy founder Rob McLister, don’t see the remote work revolution winding down any time soon.
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“It’s not for everyone, but countless companies have discovered that work-fromhome works,” McLister says. “That, and a desire to slash expensive office space and keep employees happy, will make remote working a long-term trend.”
is population growth through immigration, which Tal and Mendes noted has brought in 60,000 more people in the past year than what was estimated by the federal government. That potential undercount could be even larger; Tal and Mendes pointed out that
“The vibrancy of cities will return, and so will the demand for housing within them” However, McLister agrees that rural real estate’s time in the sun will likely be shortlived. “The exodus will end at some point, and people will start absorbing the supply in urban centres,” he says. “When that happens, potentially this year or next, any price weakness should correct itself.” Another factor that could cause demand to flow back to properties near urban cores
growth might be overdone,” Tal and Mendes wrote in their report. With the Liberal government aiming to bring in around 401,000 new permanent residents this year, Tal and Mendes concluded that population growth and demand for housing, particularly in urban centres, “is coming back.”
federal tallies don’t include those who were allowed to remain in Canada on expired visas when the borders closed. “The better population numbers make the case that fundamental demand for city living wasn’t as bad as perceived, and some of the fears surrounding downside risks for real estate tied to urban population
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UPFRONT
COMMERCIAL UPDATE
A strong start to the year Strong year-end numbers and positive sentiment point to a good 2021 for the commercial sector
the 200-bps mark.” However, the firm noted that other commercial assets, including offices, lodging, non-essential retail, and student and senior housing, continue to demand premium rates, reflecting the extended bout of uncertainty COVID-19 has unleashed. However, some of those sectors could experience a relatively rapid change in fortune in 2021, judging by recent data from Colliers International. The firm’s recent 2021 Global Investor Outlook revealed that 98% of the
“I do think there is going to be a big uptick in activity this year compared to 2020”
In the last quarter of 2020, Canada’s commercial market saw “favourable” deal flow and intensified competition, leading to sustained downward pressure on credit spreads, according to the CMLS Mortgage Analytics Group. In the latest edition of its Commercial Mortgage Commentary, CMLS said that despite the overall downward trajectory observed during the fourth quarter, “mortgage spreads have lagged the recent drop in benchmark BBB corporate debt … The result is that the liquidity premium offered by commercial mortgages
NEWS BRIEFS
has increased once again after approaching its long-run average at the end of Q3.” For the commercial market’s most soughtafter asset types – multi-family, industrial and logistics – CMLS noted that pricing came down to as low as 150 to 160 basis points over Government of Canada bond yields. “Similarly, lender sentiment indicated a relative increase in risk appetite overall,” CMLS said. “Loans appeared to be priced competitively for most asset types, with the bulk of origination spreads coming in around
Lockdowns could lead to mass small business closures
The most recent COVID-19 lockdowns have prompted the Canadian Federation of Independent Business (CFIB) to warn that the number of small businesses forced into permanent closure by the pandemic could run much higher than its initial estimate of 160,000. “There are lots of zombie businesses out there right now whose future is just not clear,” said CFIB president and CEO Dan Kelly. “We think that we’re just at the tip of the iceberg, and as the spring rolls on, the debt is going to choke the life out of many of these businesses.”
investors it surveyed said they’re planning to expand their commercial real estate portfolios this year. “I do think there is going to be a big uptick in activity this year compared to 2020, and a large part of that is because we saw a major fall-off between 2019 and 2020, so we’re regaining some ground there,” said Roelof van Dijk, Colliers’ senior director of national research and analytics. “We have a lot of investors who are looking for yield, and when you’re looking at a solid core office asset, a solid industrial asset or multi-family, these represent great opportunities for buyers. That’s why there’s so much capital looking for those opportunities.”
Institutional Mortgage Capital launches new fund
Institutional Mortgage Capital has launched the Active Mortgage Fund, an open-ended fund it describes as “a conservatively managed investment fund that invests in a well-diversified range of core and core-plus commercial mortgages.” According to CEO and chief investment officer John Ho, the fund is particularly well suited to current conditions. “We continue to experience a strong appetite from institutional investors for commercial mortgages to enhance portfolios in a low interest rate environment,” he said.
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Q&A
Matt Rachiele Managing director; SVP, investment sales, Canada COLLIERS INTERNATIONAL
Years in the industry 2 Fast fact Twenty-three per cent of the commercial real estate experts Colliers International surveyed said they expect to increase their footprint in the market by at least 20% in 2021
Expect big things in Canada’s commercial space How much of a gulf is there between what sellers are expecting for their commercial properties and what buyers are looking to pay? Bid-ask spreads started to converge, sort of across the board, in the back half of 2020. I think if [a gulf] exists most broadly anywhere, it’s going to be back in that retail/hospitality space. We just haven’t seen that roll over. There’s a lot of interest in opportunistic buys on those asset classes, but so far, we haven’t seen a lot of vendors capitulate because they’re getting enough provincial, federal or lending support to get through at the moment. When it comes to things like industrial, core office and the like, they’ve been trading. How close will 2021 activity in the commercial market get to pre-2020 levels? For most major markets in Canada, 2019 was a highwater mark, so it’s better to look at three- and five-year averages. If we’re actually at 50% [growth] year-overyear, we’re probably going to be falling more in line with slightly above what that five-year average was. Don’t forget, part of that is pent-up deal activity. If you’re an investor who’s hoping to swoop in and score some deals, are you going to have to show your lender that you have a plan to revive the property before you get it funded? I don’t think we’re seeing lenders race to the door to provide new money to fresh names at the moment. I’d say that relationships are king in periods like this,
Building permits decline in the commercial sector
The total value of building permits across Canada decreased in December, according to the latest figures from Statistics Canada, including monthover-month declines in new permits for commercial, industrial and institutional buildings. The total value of new commercial permits in December fell by 9%, while the value of industrial and institutional permits decreased by 24.4% and 6.1%, respectively. Meanwhile, building permits in the residential sector edged down just 0.9% to $6.4 billion in December.
and I think banks have done an exceptional job of supporting the long-term relationships of theirs through [the pandemic]. The other element to that is that banks are not set up to operate assets. They do not want to force their tenants into a foreclosure and then end up being thrown the keys to something they have no business operating. I think we’ll potentially see more of the [Brookfield Asset Management] model, though. Brookfield has started to put equity into tenants in certain retail spaces. In fact, they’ve raised significant funds on the side to do more of that. What advice would you give to commercial mortgage brokers who might be viewing the 2021 market with uncertainty? I would say it’s important to keep in mind that lenders always think in terms of risk-adjusted return on capital. If you’re negotiating on rates, think about what that looks like over the curve. Even if there’s some sticker shock initially, if you can show a path of greater returns slowly stepping up over the course of time – something that’s more palatable to a lender – that’s going to help their RAROC math. And I’d think about tightening up durations. To the extent that you can do a shorter-term deal and revisit on more attractive terms out two or three years instead of trying to push for five-plus, it may be in your best interest because you may get a far more palatable deal once things normalize again.
Vancouver commercial market set to thrive in 2021
Commercial real estate in Vancouver – particularly the office segment – is well positioned to return to a balanced market during the second half of 2021, according to a recent analysis by Avison Young. The city’s commercial vacancy grew from 4.4% at the end of 2019 to 7.5% by the end of 2020. However, Avison Young noted that “a reversal of the impacts of pandemicrelated policies and precautions is antici pated to take root in the second half of the year, with a corresponding improvement in metrics such as vacancy and absorption.”
Office real estate expected to rebound in 2021
Commercial real estate executives don’t foresee office properties suffering from overwhelming vacancies or dramatically falling rents in 2021, according to a recent Altus Group survey. While 57% of Altus’ survey respondents said they expect office tenants to reduce their space requirements, most believe the amount of occupied space will fall by less than 20%. When it comes to office rents, most respondents expect any rent decreases be below 10% for both highand lower-quality office buildings in 2021.
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UPFRONT
OPINION
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All in the family Running a mortgage business alongside a family member can be a dream scenario – if you plan carefully for the inevitable complications, writes Neil M. Beaumont MY SON, Zack, and I operate our own financing company, where we provide clients both deposit and refinance loans. After reflecting on our most recent year in business, I thought to myself, “Are other people considering working with a family member but feeling concerned about what that might entail?” I’m sure you’ve heard numerous stories about families working together, but I’m here to tell you that it can be very rewarding – provided the tasks are approached in a clearheaded manner and the family members involved have a plan in place to manage expectations and avoid conflicts. I formed Deposit Financing with two other partners back in 2017. At that time, Zack was working for First National as a fulfillment specialist. As the to-do list at Deposit Financing quickly piled up, I began considering bringing someone else on board to help operate and grow the company with me. After approaching Zack, he decided to jump into this partnership with me without knowing what lay ahead. We lived and worked under one roof in the beginning, and the majority of our time was consumed with developing ideas and strategies to grow our business. Being both Zack’s dad and his work partner brought some competing perspectives – and some communication challenges – to the table. (I fully admit that I have some attention span issues and work sporadically throughout the day; Zack tends to do the opposite.) Looking back, though, I wouldn’t change
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anything. Working with my son has gotten Deposit Financing where it is today. Our initial challenges soon evolved into solutions, allowing us to become partners and grow a successful business together. If you’re considering working with a family member, there are a few things you should think about first: Have a plan to separate family and business affairs. It’s hard to be at a family event
ender of relationships. What’s your plan, as a team, if things unfortunately turn sour? Make a business plan that plays to each other’s strengths. Will there be a role where someone has the final say? If so, establish who that will be. Since I have been in the industry for more than 20 years and have built an extensive network of brokers, it was a clear choice for me to handle presentations and relationship-building. This allowed Zack to handle inquiries and complete the tight turnarounds when we receive a file. Be upfront about your expectations. There are so many areas that need to be discussed so that family members know what to expect of themselves and each other. Is one family member working elsewhere or pursuing a second career/side hustle? How many hours per day/week of work are being required? How will you communicate with each other? Will you be working together under one roof or remotely? How will you split the pay and ownership? How will you handle business conflicts? It’s important to sort through those conflicts productively and remember why you started this partnership in the first place. As the old saying goes, you
“Being both Zack’s dad and his work partner brought some competing perspectives – and some communication challenges – to the table” and not have business enter the conversation. Will you have a ‘no work talk’ agreement at outside events? (Good luck with that!) Understand why you want to work with a family member. This is an important one. For me, doing so was an excellent opportunity to work with my son (and, of course, I thought the business would do well with him on board). When I was growing up, my dad ran a lumber yard where we worked together. He fired me a few times but always took me back. Nepotism has its benefits. Have an exit plan if things don’t work out. Money (and money-related resentments) can be both the root of all evil and the
can’t grow a garden without weeding it once in awhile. Despite the inevitable ups and downs, operating a family business has been an incredible experience for me and my son. If you’re contemplating working with a family member and have more questions, don’t hesitate to reach out. As mortgage brokers, we’re all one big family. Neil M. Beaumont and his son, Zack, are partners at Deposit Financing, a BC-based lending company that helps people gain access to their home equity before their sale or refinance completes. He can be reached at neil@depositfinancing.ca.
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PEOPLE
INDUSTRY ICON
SECOND CHANCES Fair Mortgage Solutions founder Graeme Moss has spent the past 20 years listening to his clients’ challenges and providing hope where it seems in short supply
IN 1998, after completing a long, arduous recovery from a devastating health emergency, Graeme Moss re-entered the working world, taking an entry-level position with CIBC. It was his first job in six years. Instead of making his prolonged absence from a structured work environment the focus, the bank took into account the full picture of Moss as a candidate, giving appropriate weight to his entrepreneurial drive and the honours designation he received while taking the Canadian Securities Course. In CIBC’s eyes, Moss deserved a second chance. More than 20 years later, the idea of granting second chances remains the driving force behind Moss’ own brokerage, VERICO Fair Mortgage Solutions. “Richard Nixon – and I am not a conservative or a Republican – said you don’t know how tall and gorgeous the mountains are unless you’ve been in the lowest valley. And I think that’s true,” Moss says. “If you look at the average person, it’s amazing what they’ve gone through. No matter what those twists and turns are, the key thing is to give them a solution or an idea right now because you never know how that’s going to go.” Moss’ philosophy is that no matter how desperate or miserable or stressed out clients might feel about their financial situations,
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there’s almost always a workable solution. But pulling that solution together requires getting a comprehensive picture of clients’ situations in a respectful, compassionate, judgment-free manner. “I think, in finance in general … if there is a problem, a lot of people view it as, ‘It’s the client’s problem. They’ve got to live with it.
While careful underwriting and clever deal placement are at the heart of that, Moss thinks the continued success Fair Mortgage Solutions’ clients have in paying off their mortgages has less to do with numbers and more to do with loyalty: After not being made to feel guilty about their past mistakes, after being provided a roadmap for escaping
“If you look at the average person, it’s amazing what they’ve gone through. No matter what those twists and turns are, the key thing is to give them a solution or an idea right now because you never know how that’s going to go” To hell with them,’” Moss says. “The answer is not dwelling on ‘Why?’ and ‘What got you here?’. It’s ‘What can we do?’” Moss revels in helping credit-challenged clients, who have already heard a chorus of no’s from lenders, receive that final yes. Despite choosing to work with the kinds of borrowers that lenders aren’t exactly tripping over themselves to hand money to, Moss’ default rate is virtually non-existent.
what previously felt like a hopeless situation, they simply don’t want to let Moss down.
Branching out As reinvigorating as his time at CIBC was, it wasn’t long after Moss began specializing in mortgages for the bank’s national sales division that he began to feel reined in by corporate life. “What I realized was that a larger
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PROFILE Name: Graeme Moss Title: Founder and broker Company: VERICO Fair Mortgage Solutions Location: Hamilton, Ontario Years in the industry: 21
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PEOPLE
INDUSTRY ICON
corporate environment was not necessarily a good fit for me,” he says. “[It’s ] a lot of rules, a lot of restrictions. You don’t have a lot of freedom.” But the appeal of mortgages remained strong. Moss began a short stint at Invis in 2000, receiving his agent’s licence in 2001. Prior to making the jump, he was constantly reminded of the risks associated with leaving a steady bank gig for a commission-driven position with a brokerage – but Moss had bigger priorities than securing a pension. “It was a gamble,” he says. “But I’d rather have the freedom to do what I want than to be confined. I often think, if I had stayed in
to get away with it. “You’ve got to be careful about it,” he says. “It’s a real fine line. If a lender is incorrect or they’ve done something a little bit unprofessional, I will try to resolve it with that lender, but fixing it is usually a cooperative thing.” Convincing lenders to play ball with clients who have painted themselves into tight fiscal corners requires an equal amount of finesse. Moss says the Fair Mortgage Solutions strategy for getting lenders on board involves positioning deals with the right lenders and providing them with an unvarnished but fair story of a client’s financial history and their ability to repay.
“All of our appraisals are fairly conservative. The client knows that we want the best thing for them, and we want the best thing for that lender” the branch network, where would I be? So many things have happened because of that one move.” The gamble paid off – Moss’ income doubled in his first year at Invis. A few short years later, he founded Fair Mortgage Solutions and has been calling his own shots ever since.
The fighter Although Moss is thoughtful and softspoken, he has also earned a reputation for his willingness to go to the mat to ensure his clients get a fair shake from underwriters. He’s no stranger to approaching underwriters in person in cases where he thinks they’ve made an especially egregious error. He admits that being assertive with underwriters won’t work for everyone – not all brokers have the track record or demeanour
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“All of our appraisals are fairly conservative,” Moss says. “The client knows that we want the best thing for them, and we want the best thing for that lender.” In talking to Moss about his clients and their seemingly bottomless supply of trials and tribulations, it’s clear that he takes their deals seriously. But even a sensitive broker like Moss knows that only so much can be done when it comes to providing second chances. Eventually people have to take the baton and run the rest of the race themselves. “If I was emotionally attached in a deep way to every client, I wouldn’t be able to function,” he says. “It’s almost like being a doctor. You prescribe something; you resolve something; you say, ‘Do A, B and C.’ Ultimately, that is up to the patients. Sometimes they take their time in doing what you suggest, but they get it done.”
GRAEME MOSS’ INDUSTRY ACCOLADES
2012
Finalist for Broker of the Year (Fewer than 25 Employees) at the Canadian Mortgage Awards
2014
Winner of Alternative Lending Broker of the Year at the CMAs
2015
Finalist for Best Community Service Effort at the CMAs
2016
Finalist for Alternative Lending Broker of the Year at the CMAs
2018
Finalist for Private Lending Broker of the Year and Alternative Lending Broker of the Year at the CMAs
2019
Finalist for Alternative Lending Broker of the Year at the CMAs
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APRIL 29, 2021
CONGRATULATIONS TO THE 2021 FINALISTS! CMP is pleased to announce the finalists of the 15th annual Canadian Mortgage Awards. The array of mortgage professionals and organisations across the 19 categories is a true representation of excellence in the mortgage industry. They are to be congratulated for their outstanding achievements, innovation and leadership over an extraordinary year. Winners will be revealed and celebrated at the highly anticipated virtual awards show on April 29. For the full list of finalists, visit
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SPECIAL REPORT
2021
For some brokers, going it alone is a gamble not worth taking. But this year’s crop of 20 Top Independent Brokerages proves there’s more than one way to play – and win – in the Canadian mortgage space
CONTENTS
PAGE
Feature article .............................................. 20 Methodology ................................................ 20 Top Independent Brokerages 2021 ........... 24
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SPECIAL REPORT
TOP INDEPENDENT BROKERAGES
GOING THEIR OWN WAY INDEPENDENCE. Even just saying the word feels good. It reminds us that the potential to live a life free of interference from a controlling entity – a micromanaging boss, a distant corporate overlord, a mean older sister – is real. But as intoxicating as the thought of independence is, putting it into practice can be another story, particularly in the mortgage broker channel, where the gravity created by the country’s largest networks shapes how so much of Canada’s mortgage business is done. Competing with the major
networks for market share can be a Sisyphean task for independent brokers – a ceaseless effort to push their brand to the top of Mount Mortgage. But the benefits speak for themselves. In addition to the satisfaction that comes from working free of network influence, operating as an indie can open the door to unique marketing strategies, new tech and a company culture that reflects a broker’s own philosophy. In a successful independent brokerage, these components combine to create a special variety of loyalty among
METHODOLOGY CMP’s annual Top Independent Brokerages list identifies the leading companies in Canada’s thriving independent brokerage community, which makes up approximately 5% of the country’s overall mortgage market. Brokerages were invited to submit online nominations addressing key areas such as volume, broker statistics, challenges faced, the steps taken to overcome obstacles and how they stand out from the competition. All submissions were verified to ensure the brokerages nominated were not members of a network or cluster group and had been in business for at least one year. CMP’s editorial and research team then carefully reviewed each nomination, distilling the large number received to a shortlist of 20 outstanding independent brokerages.
5th consecutive CMP Top Independent Brokerages list
TOP INDEPENDENT BROKERAGES BY PROVINCE
BC
3
Alberta
1
Ontario
15
Quebec
1
15 repeat winners in 2021
85% of this year’s winners have been independent from the beginning
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clients – which is, after all, what the mortgage business is all about.
Why go independent? For several of this year’s Top Independent Brokerages, eschewing the networks is all
about freedom. “Being independent allows us to truly create our own company,” says Jesse Abrams, co-founder and CEO of Homewise Solutions. “From strategy to acquisition, we have the autonomy to develop every facet of our busi-
“From strategy to acquisition, we have the autonomy to develop every facet of our business, including our brand and client experience” Jesse Abrams, Homewise Solutions
ness, including our brand and client experience. We are also not beholden to anyone but ourselves, our lender partners and our customers, which enables us to hire likeminded team members who are focused on growth and not settling for the status quo.” For Elan Weintraub, director and broker at five-time Top Independent Brokerage Mortgage Outlet, freedom from network influence means more leverage in attracting and retaining quality staff. “We can make decisions quickly, without a sign-off from a mothership,” Weintraub says, citing as an example Mortgage Outlet’s decision to not charge new agents desk or
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SPECIAL REPORT
TOP INDEPENDENT BROKERAGES
WHAT’S TOP OF MIND FOR INDEPENDENTS IN 2021? These are the issues this year’s Top Independent Brokerages are most concerned with as they head into another unpredictable year. COVID-19’s impact on the economy
The impact of significantly reduced two-year T4 averages
Urban exodus
Further technological advancements
Stronger penalties and restrictions for foreign real estate investors
Less common-sense lending, leading to increased scrutiny and friction in mortgage transactions
More assistance for first-time homebuyers
franchise fees, demand five-year commitments, or charge penalties if an agent decides to leave the company. “Another strategy is transparency,” he says. “We share ‘secret’ lender commissions, which can’t always be done as a franchise.” Walking his own path has had intangible benefits for Tim Hurlbut of TNT Mortgage, another of this year’s Top Independent Brokerages. In addition to being able to advertise TNT’s services to the public in a way that allows him to be true to himself, Hurlbut says going indie has done wonders for his health. “With no boss/manager/overlord, my blood pressure has dropped 60 points,” he says. “There is a pep in my step, and happiness abounds.”
The business advantages Of course, autonomy doesn’t carry much value if it doesn’t result in a steady stream of funded deals. Crystal Foti of four-time Top Independent Brokerage Canadian Northwest Mortgage Corporation says independent brokers have the latitude to create customized solutions for clients who need them.
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known for its constant churn. Weintraub says Mortgage Outlet has been free to create its own corporate culture, which he describes as “conversational, confident, fun and educational,” rather than imposing one decided on at the franchise level. “We shout ‘Go MO!’ every time we can,” he says. “This doesn’t necessarily align with a large corporation that has formal language and tone. We also have a clear strategy and long-term vision for MO, and it doesn’t necessarily match that of a big brand.” Jerome Trail, principal at two-time Top Independent Brokerage The Mortgage Trail, says the freedom from a large head office gives independent brokerages the ability operate without the “politics and redundancies” often associated with corporate structures. But he insists that even the most attractive corporate culture won’t be enough
“The flexibility of independence allows us to create an experience for the client, not just another banking transaction” Tim Hurlbut, TNT Mortgage “Being independent allows you to tailor your services, even in situations that require a policy exception,” says Foti, who’s known to her clients as The Mortgage Chick. “You don’t need to ask permission to make that exception. You have maximum latitude to exercise your creative and analytical skills, make the decision on the fly, and be much more responsive to clients’ needs.” It’s a perspective Hurlbut shares. “Indies get to control the full customer experience from beginning to end,” he says. “The flexibility of independence allows us to create an experience for the client, not just another banking transaction.” Independent brokerages can also benefit those on the other side of the desk, generating loyalty among agents in an industry
for agents to hang their hat on long-term. “Corporate culture and training do not determine if you have the get-up-and-go,” he says. “You either have it or you don’t. The ones who have it do well in this business. The others ... not so much.” Trail also notes that independents have one distinct advantage over their network counterparts in a key area: compensation. “We don’t have to worry about covering the overhead of any organization other than our own,” he says. “For an agent, the same choice can be made. Do they want to help cover the overhead of the broker and the head office?” According to Foti, the financial benefits of independence don’t end there. Working for an indie allows agents to keep better track
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SPECIAL REPORT
TOP INDEPENDENT BROKERAGES
2021
8Twelve Mortgage Corporation Toronto, ON
Mortgage Outlet Toronto, ON
Bespoke Mortgage Group
Mortgage Partners Corporation
Blue Pearl Mortgage Group
Mortgage Savvy Toronto, ON
Canadian Northwest Mortgage Corp. Abbotsford, BC
Obsidian Mortgage Corporation Toronto, ON
Capital Lending Centre
Ontario Lending Solutions
CYR Funding
Planipret Mortgage
GreenFlow Financial
Syndicate Lending Corporation
Homewise Solutions
Taurus Mortgage Capital
KeyRate Corp.
The Mortgage Trail
Millennial’s Choice Mortgages
TNT Mortgages
Etobicoke, ON
Surrey, BC
North York, ON
Thornhill, ON
Toronto, ON
Toronto, ON
Ottawa, ON
Concord, ON
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Bradford, ON
Ancaster, ON
Saint-Eustache, QC
Vancouver, BC
Markham, ON
Toronto, ON
Medicine Hat, AB
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THE BENEFITS OF INDEPENDENCE According to the leaders of this year’s Top Independent Brokerages, there are plenty of advantages to going it alone.
Freedom from corporate oversight
Control over branding and marketing
Ability to create a unique company culture
Potential to develop proprietary technology
More transparency with regard to commissions
Ability to provide tailor-made customer service
Lower or no fees for brokers and agents
Opportunity to specialize
“Initially, we faced several obstacles trying to sign up with various lenders. But over the years, we have been able to prove ourselves” Inam Qureshi, Syndicate Lending Corporation of their commissions and have greater transparency into a brokerage’s overall operations, she says, while running one provides owners the opportunity to “build an asset that can be sold or leveraged in the future, which an agent can’t do when part of a network.”
Making a go of it Surviving as an independent business of any kind almost always involves chisel-
ling away market share from established national brands – a feat that’s every bit as difficult as it sounds. George Hugh, president and CEO of four-time Top Independent Brokerage Taurus Mortgage Capital, says the key to maintaining a successful independent brokerage is to present clients with a value proposition that separates you from your competitors. “I find that people just want to go out
and sell to make money,” he says. “You really need to spend the time to develop your own brand and offering before you start selling. To compete, you must have a differentiating strategy.” At Taurus, for example, the main focus is building long-term wealth for clients. Having a specific value offering, Hugh says, allows him to concentrate on “making my client aware of why they came to me for a mortgage. They come to me for my experience, not because I can get them a mortgage.” Proving the legitimacy of your business model to lenders can also be quite challenging, says Inam Qureshi, founder of threetime Top Independent Brokerage Syndicate Lending Corporation. “Initially, we faced several obstacles trying to sign up with various lenders,” he says. “But over the years, we have been able to prove ourselves. We are extremely thankful to our lending partners who have given us this opportunity to stand on our own feet today.” Because independent brokerages are built from the ground up, Hurlbut says new relationships play a critical role in their survival. “Every new lender you sign up, team member you hire and customer you service is integral to growth and learning, so ensuring that you develop strong relationships with your lenders right off the bat is paramount,” he says, encouraging brokers looking to follow the independent path to be patient. Hugh agrees. “As an independent, building your business on your own takes more time,” he says. “It has taken me a little longer to build, but it really gave me a chance to better understand where I can gain efficiencies, better service my clients, etc.” Independence has also provided Hugh with the opportunity to continue growing at a pace he’s comfortable with. “I have been able to use 100% of my revenues to invest back into my company and people,” he says. “Being an independent has allowed me to develop a differentiating strategy that has put me in a position to grow going forward.”
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SPECIAL PROMOTIONAL FEATURE
TITLE INSURANCE
Change agent CMP talks to FCT CEO Michael LeBlanc about how the company has adapted to the changes COVID-19 has brought to the industry THOUGH IT’S the unquestioned leader of the Canadian title insurance space, much of the work FCT does comes together behind the scenes. To bring the company’s efforts into the spotlight, CMP caught up with CEO Michael LeBlanc to find out how FCT has approached the challenges of the past 12 months.
CMP: Success in the mortgage industry is often associated with an ability to adapt to a changing marketplace. What are some of the adaptations FCT made in the last year? Michael LeBlanc: At FCT, we have always been committed to innovation. We’re invested in finding new solutions and streamlining processes through the use of data and technology. The pandemic presented an opportunity for us to adapt and drive opportunities from the unforeseen circumstances we were faced with. We created robust virtual identification and closing processes and made modifications to our policies that reflected our customers’ difficulties in attaining the documents needed to complete real estate transactions. We also had to adapt as a team and recognize that, for a number of employees, remote work
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wasn’t ideal. We worked hard to understand and alleviate our employees’ concerns and adjusted our business model to continue to operate without interruption.
CMP: FCT is heavily focused on its core values. Can you tell us more about them? ML: FCT’s core values contribute to every decision we make. Our passion for integrity guides our relationships with our customers, employees and partners. We prioritize transparency in each of these relationships. Our passion to serve drives our unwavering commitment to our customers. Our team is genuinely happy to work at FCT, which is apparent in how we treat our customers, and I think that’s a big part of our success. Our passion to exceed fuels our constant search for new solutions, and our passion to innovate is evident in our ability to think differently.
CMP: How does an openness to change and innovation allow FCT to demonstrate leadership in the title insurance space? ML: In 1991, we became licensed to sell title
the space. From that day forward, our mission centred around continuous innovation. In the early days, we thought property owners would gravitate to the policy, as it contained extra protections they would appreciate. That never happened, so we had to begin looking at title insurance as a tool that would allow us to change real estate processes by introducing risk management to eliminate pain points. We’ve continued on that path, and while title insurance remains a very important part of our business, we’ve evolved into a financial
“Many companies think they need to disrupt the marketplace to be innovative, but we’ve recognized that innovation can be as much about enablement as it is about disruption” Michael LeBlanc, FCT services company, a transaction management company and a data company. Many companies think they need to disrupt the marketplace to be innovative, but we’ve recognized that innovation can be as much about enablement as it is about disruption. We focus on how we can enable our partners in what they do every day and provide our customers with intuitive, data-driven products that enable them to deliver the highest quality of service to their clients. FCT is the leading provider of title insurance solutions for Canada’s real estate industry. To learn more about what the company and its products can do for you or your clients, visit fct.ca/contact or call one of FCT’s many conveniently located regional offices.
insurance in Canada and were the first player in
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Are you ready for the future? As breakthroughs in technology continue to shape the real estate industry, we’re at the forefront of what’s possible. We’re focused on developing the most advanced property intelligence tools and data-driven solutions to improve the experience across the real estate lifecycle. We’ve always operated at the cutting edge of change and continue to search for new and innovative ways to serve you. Want to learn how we can take you and your customers into the future? Contact us today.
fct.ca | 1.800.307.0370
Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice. ®Registered Trademark of First American Financial Corporation.
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SPECIAL PROMOTIONAL FEATURE
INSURANCE
Full coverage Not all insurance policies are created equal – and some aren’t built very well at all. Canrisc Insurance Consulting Services helps lenders detect the gaps in coverage before it’s too late
HOW CANRISC CAN HELP Acts as an insurance broker liaison Assists lenders with selecting an insurance broker Assesses insurance quotes Reviews insurance policy wording and scope of protection Identifies coverage deficiencies
WHEN THERE are only a few companies in the market doing what you do, you need to do it well. That’s been the philosophy behind Canrisc Insurance Consulting Services for the past quarter-century. Mike Stauffer, one of the company’s risk management analysts, says Canrisc’s central goal might be simple, but it is critically important for the nation’s lenders. “Nobody wants to deal with the financial loss in the event of a worst-case-scenario insurance claim,” he says. “What we’re doing is making sure the lender is not at risk of that happening.” Canrisc plays a unique role in the real estate space, evaluating insurance policies
the replacement cost of the building could have come up short by $6 million. According to Tony Fredericks, who purchased Canrisc in 2016 and serves as the company’s CEO, the need for Canrisc’s services has increased as property owners’ insurance demands have intensified. “In the old days, all the lenders used to be concerned with is fire insurance, but now they require insurance for water damage, for example, and all-risk policies,” he says. “They want to be named on the policy, too, in case there’s a liability claim against the owner.” There are myriad ways in which inadequate coverage can come back to haunt
“Nobody wants to deal with the financial loss in the event of a worst-case-scenario insurance claim. What we’re doing is making sure the lender is not at risk of that happening” Mike Stauffer, Canrisc Insurance Consulting Services prior to closing to ensure there are no gaps in coverage for borrowers and their lenders. Stauffer estimates that property insurance falls short in at least 90% of the company’s policy reviews. “Sometimes it’s just misinformation provided to the broker, like square footage of the building,” he says. “I did a review the other day where the broker was told that the building was 60,000 square feet, and it was actually 110,000 square feet.” Without Canrisc’s review,
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lenders. If a home or commercial property burns down and a lender’s name is left off the insurance policy, only the owner would be compensated. Inaccurate information, like in the example above, can also leave huge gaps in coverage, as can oversights where environmental, bylaw or rental income coverage are concerned. “You might think that everything’s covered,” Fredericks says, “but you have to get into the details of the wording to make sure
Advises on the best insurance provider for specific industries Analyzes construction builder’s risk Recommends coverage enhancements Analyzes insurance clauses in loan agreements, leases and other contracts there are no unforeseen exposures or penalty clauses that might prevent the building from getting insured to 100% of its value.” Ensuring that a property gets the appropriate level of protection goes beyond just reading the fine print. When coverage comes up short, Fredericks and Stauffer waste no time finding a solution. The two recently got involved in a case where an owner was denied flood coverage. “The two of us actually tag-teamed it, made some phone calls, got in touch with some other companies and found some that would provide full flood coverage for that exposure,” Stauffer says. “Then we went back to the insurance broker and the lender and recommended that they reach out to a different insurance company to get the full coverage.” Going the extra mile is nothing new for Canrisc, Fredericks says. “That’s just something we do. The transaction demands it, and our clients deserve it.” Canrisc Insurance Consulting Services has been ensuring lenders and their clients are adequately protected against possible gaps in insurance coverage for 26 years. To find out more about the company’s services, call 905-428-2585.
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We Know Insurance In operation for over 20 years, Canrisc is Canada’s leading independent insurance consultant. The top choice among financial institutions and their solicitors, Canrisc is your most reliable resource for professional insurance expertise. Canrisc works with all parties involved in the insurance review process – Lawyers, Insurance Brokers, Mortgage Brokers, Insurers, and the Borrower to ensure full insurance coverage, alleviating any concern by the Lender.
FOR OVER 20 YEARS Canrisc has reviewed billions of dollars in loans for financial institutions across Canada.
Lender Support Our Lender Insurance Review Services are 100% fee-based. We do not sell insurance.
Visit us on the Web https://canrisc.com
Lending against commercial properties carries financial risk. No matter the overall funding strategy, lenders must ensure they cover their financial interests with adequate insurance. No lender wants to engage in a claim insurance battle, that may endanger profitability. Adequately insuring the risks associated with properties where you have financial interests, including liability exposures, can help protect your company.
Contact Us Today at 905-428-2585 or customerservice@canrisc.com Because you can’t afford the risk
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Canrisc Insurance Consulting Services (2016) Ltd.
23/02/2021 3:56:12 am
SPECIAL PROMOTIONAL FEATURE
ALTERNATIVE LENDING
A new online café for brokers Community Trust recently launched a virtual hub to better serve broker partners. The company’s leaders filled CMP in on how it works
COMMUNITY TRUST, one of Canada’s leading alternative lenders, has started off 2021 with some big news for its Canadian broker partners: the official launch of a new online broker hub, Community Trust Café. “Our goal was to deliver a personalized online experience that makes it easier for brokers to do business with us,” explains
lessly. “And that adds up to more time for them to spend with their clients, building those relationships,” Armstrong says. So, what exactly is Community Trust serving up at its online café? A complete menu of items for brokers to feast on, Armstrong says, which includes automatic deal tracking, a dedicated message centre, and instant and
“Now more than ever, brokers need every edge they can get – especially ones that allow them to work more flexibly, efficiently and, of course, remotely” Eric Larocque, Community Trust Grant Armstrong, Community Trust’s director of national sales. “And that’s what we’ve done.” Indeed, Community Trust Café is an online destination loaded with all sorts of features that allow the lender’s broker partners to work faster, easier and more seam-
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secure document management. “Of course, there’s also access to all the current rates, offers and promotions, as well as an information-rich resource centre, handy tools and calculators, and lots more,” he says. “And we’re not going to stop there. Our goal is to include more online services,
tools and information, all designed to make it easier for Canadian brokers to do business with us. And we plan to layer in our popular BariStar program, which rewards brokers for high performance, so that it’s easier than ever before for them to take advantage of it.” As for the unique name, Eric Larocque, head of sales and marketing at Community Trust, says it was the clear winner among the many the lender considered. “We wanted something that reflects the friendly, approachable reputation that has defined Community Trust throughout its long history,” he says. “The name, both inviting and neighbourly, most definitely reflects our company’s character. “You look forward to visiting it – much like your favourite neighbourhood café,” Larocque adds. “Because, like that café, this is a place that relieves your stress. It’s a place brokers will look forward to dropping by, because a few minutes spent there makes your day better.” After a year of development and several months of beta testing, the site recently launched with a national awareness campaign
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aimed at current Community Trust broker partners, as well as mortgage brokers who have yet to make their first deal with the alternative lender. “Because we wanted to put the wealth of features front and centre, we built our campaign around a chalkboard motif,” explains Chris Peace, marketing manager at Community Trust. “It not only reinforces our rather unique name and overall café theme, but also allows us to highlight a number of its services and benefits. And, like any great café, everything is always served up fresh because we’re constantly updating it all.” The online café is just the latest of several bold initiatives from Community Trust. Over the course of the past year, the company has also launched digital-based services such as InstaShare, which makes it easy for brokers to instantly share clients’ financial documents, and InstaValue, an online valuation service that eliminates the need for an in-person home visit. While the timing of all this ambitious
activity – during a global pandemic that has turned business as usual on its head – might surprise some, Larocque believes it’s actually been ideal. “While we didn’t have a crystal ball that allowed us to foresee COVID-19 and its unprecedented impact, the truth is that there has never been a time in which these sorts of initiatives are so desperately needed,” he says. “Now more than ever, brokers need every edge they can get – especially ones that allow them to work more flexibly, efficiently and, of course, remotely. They still have clients who expect them to deliver for them, and we’re determined to help these dedicated professionals do so. Community Trust Café is a huge part of fulfilling that commitment to our broker partners.” So, how does Community Trust plan on following up a year of unprecedented firsts? “Without getting into details, I will say that we have no intention of resting on our laurels,” Larocque says. “We don’t plan on changing the things that brokers have come
to expect from us, such as great service, personal connections, competitive rates and lots of ways to reward them for their trust in us. We are, however, already laying the foundation for even more ways to help Canadian brokers – and those clients they serve – to succeed with us.” Most notably, that push includes an emphasis on innovative solutions. “Over the past year or so, we have really shifted our focus to becoming a technology leader in our space,” Larocque says. “What we’ve accomplished during that time, with InstaShare, InstaValue, plus the launch of our café – it’s all just the beginning.” In other words, brokers would be wise to keep their eyes open for what’s to come from the alternative lender bold enough to launch a café unlike any other. To learn more about the Community Trust Café, visit communitytrust.com/cafe or contact your Community Trust BDM.
www.mortgagebrokernews.ca
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FEATURES
SECTOR FOCUS: DIVERSITY AND INCLUSION
Leaders of change Seriously confronting racism in the Canadian mortgage space requires active, ongoing effort. CMP spoke with four leaders who are tackling the issue head-on to find out what the industry can do to make real headway WHEN IT comes to eliminating racism – defined as any act, intentional or not, that makes individuals feel diminished in any way because of their race or cultural background – in the Canadian mortgage industry, it’s clear that more needs to be done. The conversation around racism, cultural bias and the damage caused by these two rancid
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pollutants is rapidly evolving, and it has left some of the country’s brokerage networks in the dust. Saying the right things – “We’re done talking; it’s time for us to listen,” “We value all of our employees,” “We have a diverse staff ” – is essentially meaningless without concrete action to back it up. With that in mind, CMP reached out
to members of the Canadian mortgage community who, either on their own or through their companies, are actively advocating for a more accepting environment for Black, Indigenous and people of colour (BIPOC) within the industry. Their work provides insight as to what can be done to move the industry further in the right direction.
www.mortgagebrokernews.ca
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MAHIMA PODDAR AND KERRY ANN POORMAN SVP and group head, personal banking Underwriter associate
KARIM MORGAN Executive assistant, office manager and chief diversity officer
Equitable Bank
MERIX Financial/Paradigm Quest
What is Equitable Bank doing to fight racism and let its BIPOC employees know they are in an environment that values and accepts them? Mahima Poddar: The work of identifying and removing systemic barriers in the workplace needs to happen at all levels in all organizations, because it exists everywhere. One key first step is to listen. Ask your BIPOC employees, LGBTQ+2S employees, women on staff and co-workers with disabilities if they feel that they are being heard, believed, honoured and amplified. If you’ve not yet handed over the proverbial mic because you’re scared of what responses you might get, then your org needs to look inward, stat! Bias shows up well before any company’s interviewing process, so ahead of an Indigenous hiring fair, for example, we make sure that our recruiters have taken multiple courses that educate them on Indigenous history and provide them with examples of ways to best honour Indigenous candidates. And when companies onboard employees from racialized communities, it is integral to honour their experiences. For example, when traumatic footage such as George Floyd’s murder is shown repeatedly on the news, it is critical to check in on the
mental health of Black co-workers. Certainly, justice- and equity-focused programs and employee resource groups are important, but it all must start with listening to – and honouring – the lived experience of our employees.
“Bias shows up well before any company’s interviewing process” How does it feel to work at a company that makes inclusion a priority? How does it impact your success? Kerry Ann Poorman: The commitment to making inclusion a priority is a key success factor for Equitable. It allows us to act from a place of mutual respect and appreciation. From my very first interaction with someone at Equitable, I felt seen. This was a huge relief. Too often, employers expect employees to behave in the same way in order to fit in. This becomes challenging and quite a heavy burden because we are all different, and being anything less than myself would not be very authentic. I’m able to bring my best self to work and achieve the best result because I feel included.
In your position as chief diversity officer, what are some of the antiracist/pro-diversity initiatives you’ve rolled out at MERIX that you feel are working? Karim Morgan: Our newly formed Diversity and Inclusion Committee provides oversight that ensures the right questions are being asked and as many points of view as possible are being considered, especially by the primary decision-makers. We are invested in the full exploration of which practices and policies foster the best, most inclusive workplace possible. We engage the work of scholars and experts from many backgrounds and rely on community leaders who offer anti-racism training and workshops. There is no set destination or defined formula when it comes to the work of pro-diversity; therefore, an organization that sincerely appreciates the importance of this work creates policies that ensure it continues through regular self examination, revision and adaptability.
What do you think is the industry’s biggest shortcoming in terms of improving outcomes for racialized agents and brokers? KM: The sticky floor syndrome – where
www.mortgagebrokernews.ca
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FEATURES
SECTOR FOCUS: DIVERSITY AND INCLUSION people of colour who are consistent and skilled at their roles are often not considered when opportunities for advancement arise – is the biggest shortcoming in many industries, including mortgage. Creating a path with opportunities for growth and advancement for those who are routinely passed over for promotions helps to addresses the issue of succession and ensures talent is continuously developed and retained. A clear plan outlining that an individual who has accomplished a certain level of success over a set amount of time is automatically a candidate for promotion is a possible, though small, approach to solving this issue.
“Companies that do not understand the importance of antiracism practices and fostering a prodiversity environment will ultimately render themselves archaic and obsolete” How seriously do companies need to take diversity and anti-racism in order to remain relevant to a clientele that is increasingly enthusiastic about these ideas? KM: Historically, when people feel unheard or unvalued, they create their own way, their own institutions and their own success. We have learned that companies that do not understand the importance of antiracism practices and fostering a pro-diversity environment will ultimately render themselves archaic and obsolete – and undesirable as employers. The strength displayed by a work environment that has a healthy culture of intersectionality will enable more ingenuity and longevity, often from its youngest and most diverse team members.
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KYRA WONG District vice-president Manulife
What role do you feel white people should play in improving the experiences of their racialized colleagues in the mortgage space? Kyra Wong: I think the starting point is caring enough in the first place to take the time and make the effort to educate ourselves so we know how to consciously show up and be better for our racialized
investing more than $3.5 million to promote diversity, equity and inclusion, both in the workplace and in the communities we serve. The goal is to increase the representation of diverse talent at all levels of the organization, create greater inclusion across the company through enhanced training, and to support organizations helping BIPOC communities. Manulife is proud to have been recognized as one of Canada’s Best Diversity Employers and to score 100% on the Human Rights Campaign’s Corporate Equality Index. As for myself, being a leader of change means going first, and I did this by creating the Magical Unicorn Project back in 2017. I advocate for change through social media posts, blogs, co-authored book contributions, keynote speaking engagements and personal interviews. No topic is off limits. The goal is to help women and minorities smash through the glass ceilings of inequality so that fair opportunities and the freedom to succeed can exist for all. The unicorn horn represents unity and is a statement of our collective humanity: We are one.
What can the mortgage industry do as a whole to ensure people of colour feel more accepted and understood? KW: An easy thing each of us can do right now is to make a commitment to actively
“I know the topic of racism can be very uncomfortable for people … but it’s important to openly embrace the discomfort” colleagues. I know the topic of racism can be very uncomfortable for people, myself included, but it’s important to openly embrace the discomfort so that we can grow our awareness and understanding and become the true allies that racial minorities need us to be.
What is Manulife doing to fight racism and promote diversity in the industry? KW: Manulife and John Hancock are
seek out new friendships with people in the industry who are racial minorities. Many of us are guilty of having a circle of friends who look just like us. That’s not a criticism, just a reality. It’s normal for people to seek out what looks and feels familiar to them. But by embracing relationships with racial minorities, not only can we make them feel more accepted and included, we can also expand and enrich our own inner worlds by connecting with cultures and experiences that differ from our own.
www.mortgagebrokernews.ca
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PEOPLE
BROKER INSIGHT
From dabbler to dynamo Alex Lavender eased himself into the mortgage game – but once he saw the life-changing potential of being a broker, he was all in
THE JOURNEY of becoming a mortgage broker is different for everyone. Some dive in headfirst; some ease themselves in little by little. CENTUM Home Lenders agent Alex Lavender chose the latter route. While still a student at Toronto’s Ryerson University, Lavender had unsuccessfully attempted to turn his considerable earnings as a server into his first property purchase. While disappointing, the experience of being denied funding also piqued Lavender’s curiosity. “I wasn’t really given any insight into why,” he says. “I thought I made good money. I had the down payment. I had good credit. So it put me on a journey of trying to find out a bunch of information.” Lavender took his education a little further than most probably would have been willing to go and got licensed as a mortgage broker prior to graduating from Ryerson in 2015. He entered a white-hot Toronto market in April and was immediately exposed to the harsh realities of trying to make it as a part-timer: With no name recognition, no reputation and limited funds for advertising, every day can feel like a losing battle. But after a friend allowed Lavender to assemble his mortgage and that first commission cheque cleared, he realized what the hard work and long hours were all about: a better life for him and his clients. “That was really
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the start of my career,” he says. After a move to Halifax in 2016, Lavender soon found a home on Clinton Wilkins’ powerhouse CENTUM team. Since then, he has leaned heavily on his own experiences as a thwarted mortgage applicant in assuming the role of educator for his clients, carefully laying out their options at each stage of their mortgage adventure and providing an explanation when their requests hit a snag. “There is a big lack of available information out there,” Lavender says, adding that while borrowers might be doing more online research than ever, there’s little guarantee that the information they’re arming themselves with is actually up-to-date or that the sources they’re consulting are accurate. “They’re getting all this information, but it’s often incorrect.”
To better prepare prospective homeowners for the rigours of the mortgage process, Lavender spent a significant portion of the last 18 months writing his first e-book, Mortgages for Millennials, in which he provides answers to the most common questions he’s asked by consumers. Finishing the book during a historically busy year required a 5 a.m. wake-up call every day. “I like keeping busy,” Lavender says. “That’s what keeps the lights on.” “Busy” hardly does justice to the current state of Lavender’s business, which grew by roughly 65% year-over-year in 2020. While an increased focus on alternative and private deals helped fuel the surge, Lavender says the key was simply being available. “Some days were 14 hours,” he says. “Most days were 12.” But after a slow entry into the mort-
MAKING A MARK WITH CONSUMERS One of the reasons Alex Lavender’s business flourished in 2020 was his longstanding commitment to providing a smooth and aesthetically pleasing online experience. Now that Canadian consumers are accustomed to conducting their mortgage research online, Lavender says brokerages need to think hard about how their websites appear to first-time visitors. “Consumers know right away what looks like a garbage website and what looks high-quality, and they’re going to associate that with your business,” he says. “I think it’s even more important than a storefront presence.”
www.mortgagebrokernews.ca
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FAST FACTS: ALEX LAVENDER
BROKERAGE CENTUM Home Lenders
LOCATION Dartmouth, NS
YEARS IN THE INDUSTRY 4
SPECIALTIES Client education, first-time buyers, alternative/private buyers
“I’m all about pushing through, because when I started out in the industry four years ago, I went about five or six months without making a dollar” gage industry, being overwhelmed by client demand isn’t something he’s going to complain about. “I’m all about pushing through, because when I started out in the industry four years ago, I went about five or six months without
making a dollar,” he says. “I was so broke, and I remember saying, ‘One day, I’ll be so busy I won’t know what to do with myself. I hope that day comes.’ Now when I think back to that, I’m like, ‘This is what you wished for. You have it.’”
AWARDS AND ACCOLADES Named New Agent Entrepreneur of the Year by CENTUM, won CENTUM’s Optimus Platinum and Optimus Gold awards, and was named a CMP Young Gun in 2019
LITTLE-KNOWN FACT Lavender’s first business was selling ‘Tornado Potatoes,’ spiral-cut spuds on a stick, at events across Ontario when he was 19
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FEATURES
MARKETING
The fight for visibility It’s becoming more important for businesses to not only have an online presence but also be seen above the rest. Nicola Moras explains how to win at being visible
THE FIGHT to be seen online, to be visible, has never been more fierce than it is now. Business owners especially have been somewhat forced to embrace the online world in their marketing and delivery of services. This has meant new learning for those owners who have relied on local area marketing in the past.
ensure that you have an audience to market to. It will mean you are able to have a consistent conversation with that audience, and they’ll be more likely to buy from you. What you need to determine is how to establish yourself as being different, as a business that can be trusted. There are far too many charlatans who have come out
When you assume the position of an industry leader before you even begin to dial up your visibility efforts, you’ll have more confidence to show up and do what needs to be done Shockingly for some, your potential customers and clients are spending more and more time online. In fact, recent data indicates that most of us will probably spend more than 100 days online this year. That’s almost a third of the year online. For businesses, this presents a great opportunity to carve out your patch of dirt on the internet and really own it. This will
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of the shadows and taken people for a ride. As a result, every customer’s BS detector is on heightened alert these days, and they’re a lot slower to trust. This begs the question: How do you create more visibility when everyone is wrestling for the click, the comment, the like and the share? Follow these four steps so you can win the visibility fight and soar.
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Assume the position of industry leader
Confidence breeds confidence, and you know it. You’ve seen people online, and you’ve felt drawn to them. This is usually because someone who is confident in what they’re saying and sharing is magnetic. When you assume the position of an industry leader before you even begin to dial up your visibility efforts, everything else becomes easier to implement. You’ll have more confidence to show up and do what needs to be done.
www.mortgagebrokernews.ca
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everyone. You don’t need to appeal equally to the teens and the silver foxes, or to the coffee moms and corporate career chasers. The more specific you can be about who you want to be visible to, the easier it is to get on their radar. When you know exactly who your niche is, you can start to create content specifically for them. For instance, if you know your niche is a 35-year-old woman with two children who hates her body, your business might provide a total workout and meal plan solution that has her falling in love with her body postchildren, without feeling stressed and overwhelmed. Or if your niche is a 43-year-old man who now has time and wants to start a hobby making wooden rocking horses, but he’s having trouble knowing how to set up his workspace and equipment, you can create content for him specifically. When you know who your audience is, you’ll get results faster. They are likely to joke that you have cameras in their house. (Yes, this is a good thing. Just don’t go installing any cameras!) You’ll be inside their heads, and they’ll love this.
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2
Show what makes you different
This is not about your unique selling proposition. This is where you need to determine what makes you different as people. If you’re a solo entrepreneur, this is going to be pretty easy, because you are what makes you different than everyone else. For those of you with larger-than-you businesses, you and your team are what make you different. Take stock of your history, why you exist and the stories you interlace through all that
you do. It’s ever so important to share these online on your pages and websites. People are slow to trust these days, given the sheer volume of fraudsters, but when you start sharing your stories and what makes you different, it helps your audience see you as a company they can trust. This is because they start to see the human beings behind the logo.
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Own your niche When it comes to visibility online, you don’t need to be visible to
Be consistent and persistent
Visibility takes time, but when you are consistent with your efforts, it will pay off. Be aware that you have to play the long game, as well as the short game, for visibility growth. This is not dissimilar to joining a gym. You have to keep going to achieve results. Haphazard attendance will reap haphazard results. Create different types of content and share it multiple times daily. You’ll be visible in no time. Nicola Moras is an online visibility expert and the author of Into the Spotlight, a guide to help you step up your online visibility, become a rock star in your industry and make your business thrive.
www.mortgagebrokernews.ca
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PEOPLE
OTHER LIFE
TELL US ABOUT YOUR OTHER LIFE Email mortgagebrokernews@kmimedia.ca
In 2021, 100 Brokers Who Care hopes to expa nd its reach by lau nching regional chapters across the cou ntry
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Current number of members of 100 Brokers Who Care
$156,000 Total amount the organization has raised to date
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Causes supported by 100 Brokers Who Care so far
TAKING CARE When broker Sabeena Bubber reached out to help a friend five years ago, she had no idea she was laying the foundation for one of the industry’s most beloved philanthropic organizations THE SEEDS of 100 Brokers Who Care were sown in 2016, when Xeva Mortgage broker Sabeena Bubber started a GoFundMe page to help out a single, self-employed friend whose 6-year-old daughter had drowned. “My friend suffered from PTSD and had no idea where the funds for the funeral would come from, let alone the need to just get by for the months while she recovered from the loss of her only
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child,” Bubber says. That GoFundMe page eventually grew into a Facebook group, which brought in $30,000 in donations in a mere three weeks – approximately $7,000 of which came from brokers across Canada. “I realized the power of social media – people who didn’t know me or my friend wanted to help her after this horrific accident that took her daughter’s life,” Bubber says. “If people out there could
help her, then there may be brokers out there who have friends, family or clients who needed help.” Over the past five years, the organization has donated more than $150,000 and has grown to the point where its name is now a misnomer. “We are going to be rebranding to Hundreds of Brokers Who Care as we continue to grow,” Bubber says. “There is no cap on membership.”
www.mortgagebrokernews.ca
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Everybody has a story
And a mortgage application doesn’t tell it all Let’s partner and ask the right questions to truly understand your client’s story. Together, we can develop the right financial solution. To see the whole picture, visit hometrust.ca/realstories
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