CMP 5.8

www.mortgagebrokernews.ca

August 2010, 5.8

relationship makers A Review of the Industry’s CRMs

SPECIAL FOCUS Working with first time buyers

FEATURE Social networking with social media

NEWS ANALYSIS The HST and the real estate market PUBLICATIONS MAIL AGREEMENT #41261516

54 niche series/ working with first-timers Over the next few months CMP magazine will explore a variety of niche markets and how mortgage professionals can work within these areas to increase their business. This month we focus on first-time homebuyers

5.

08 issue

cover story

24 Relationship makers All brokers need to organize their client contacts to keep in touch. And every brokerage tries to provide its agents with the best. Heather Li explores the industry’s CRM programs

Romspen Investment Corporation

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contents 8

PROFILES

Letters & comments from mortgagebrokernews.ca: Some of the best stats and comments from CMP’s website.

70 Provider: Canada Guaranty -- the country’s only 100-per-cent Canadian-owned private mortgage offers lenders a new alternative for mortgage insurance backed by the financial strength of its ownership group, the Ontario Teachers’ Pension Plan and National Mortgage Guaranty

NEWS 10 DLC names new spokesperson, suing RBC, HST amendments for broker commissions, Alberta housing construction, China Bank coming to Canada

71

BUSINESS 24 Facebook: Your new calling card: Online social networking sites, such as Facebook, Twitter and LinkedIn, have exploded over the past year.

Heather Li shows how brokers use these tools to market to a bigger, broader audience 32 Networking for net worth: Word of mouth is the best form of advertising, and social media provides access to its online cousin 38 News Analysis: The HST and the real estate market 60 Spend money to make money: With it growing increasingly difficult to generate a reliable flow of leads through referral networks, in Austria even established brokers are purchasing leads from lead providers.

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66 7 secrets for converting more leads into closed deals What would happen to your income if you were able to increase your lead to closed deal conversion rate by just a measly five per cent?

Insight: After a career in the military that took him across the globe, Shawn Selanders, is now broker and owner of Dominion Lending Centres the FIRM

72 Broker: Donna Mullen defied the standards and built her business in an area where financial education for the everyday person was limited. Heather Li shows how by going small, Mullen made it big

PRODUCTS 78 Guest Column: Sabeena Bubber, broker/owner of Verico by Integré Mortgage Partners Inc. in North Vancouver, B.C.

regulars 20 International News 30 This time last year 79 CMP Service Directory

We put you front and centre

in your local market.

When you join most superbrokers, you give up your local personality in favour of a faceless national brand. But at The Mortgage Centre®, we understand that your success is based on your relationship with your local market. Even though we maintain Canada’s longest-established national franchise network, we make sure all our programs and marketing tools spotlight you. To learn more about the exceptional independence we offer, contact sales@mortgagecentre.com The Mortgage Centre is a division of CIBC Mortgages Inc., a member of the CIBC group of companies. ® The Mortgage Centre is a registered trademark of CIBC Mortgages Inc.

Editor’s Letter

Editor addresses concerns over low rate story New York columnist Jimmy Breslin once said, “rage is the only quality which has kept me, or anybody I have ever studied, writing columns for newspapers.”

There has been a lot of controversy recently about an article posted on our website with regard to low mortgage rates. Some of the comments have bordered on rage. There have been suggestions that the article is basically an advert for a broker; that the posting of a low rate is immoral and unethical; that posting rates will kill the industry.

All of these points are valid. It has always been my position to never interfere with web postings and forum chat because it is a place for interested parties to express their opinions, their concerns and even their rage about what is happening in the industry.

The reason the article was posted was to share with members of the broker community what one company is doing. We also posted an article about TMG’s 20th Anniversary – some might say we’re promoting that company.

Web comments are common and we like to read them because it lets us know what is important to the industry. It’s not often we get telephone calls and I got one from a broker in Calgary who was upset about the posting and asked that it be removed. The broker felt that it was a blatant advert promoting one company. Not only that, but that the content of the article was unethical and basically illegal.

When I get calls, I take them seriously. That someone felt strongly enough to make a phone call to an editor to express concern…and anger.. .means that we hit a nerve and it is something that needs to addressed.

It basically comes down to one question: What is news?

News has two priorities: it must be current and it must mean something to people with the objective of informing an audience. It’s about telling people what’s going on in their community – in this instance, the broker community. When I see a press release or a news item come across my desk I think about our readership – is it something of interest to them? Clearly, the sheer number of comments and the strong emotions that were provoked by the posting shows there certainly was interest.

Then I look at the intent of the item. In this case it was clear to me that the marketing department was trying to get a message out to consumers about their low rates but because we are not a consumer site, I felt that it would be of interest to other brokers to know what one company was doing – for better or for worse.

My Calgary caller asked if his company had a new process that they wanted to get free press about would I print it – probably. It may not get him any clientele because, as I said, we are not a consumer site. But if any company is doing something out-of-theordinary, then I believe other agents and brokers might be interested.

If a press release or article is simply about a company promoting themselves, then no, it’s not of interest to our readers – unless they are offering something unique to the marketplace, like for example, offering mortgages for condos on the moon. In this case the company was talking very specifically about the having the “lowest” mortgage rate.

I see that is as something of interest to readers and it definitely was informative.

The other reason I posted the article was because of the nature of the message.

There are strong opinions in the industry surrounding the issue of brokers offering such low rates. Brokers and agents are concerned that this type of offering hurts the industry and I felt the issue deserved some attention and discussion.

I appreciate all the comments and calls about this posting and I think it deserves an article in a future issue of CMP magazine. I welcome e-mails and phone calls from anyone who would like to speak to me about this particular issue or, for that matter, any other issue that we could cover in upcoming issues of the magazine.

I can be reached at 416-644-8740 ext. 250 or via e-mail at gina.monaco@kmimedia.ca or you can send your comments on this thread.

‘Til next time, rage on!

Gina Monaco Editor Gina.monaco@kmimedia.ca

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5.

08 issue

“

The word is on the Street.

Street Capital works with us to get our deals done. They make us feel like valued clients and partners.

Andrea Wadden Bedford, NS, CEO Status

Street Capital is broker friendly and broker exclusive, they are very supportive and a valued partner for INVIS. Kevin Boucher Newmarket, ON, CEO Status

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Street Capital is a big reason for our success during our first year and will be an integral part of our brokerage’s aggressive goals for the foreseeable future. Whether it’s underwriting, sales support or the efficiency of the closing department, Street Capital truly understands how to help us grow our business. Bottom line: Street Capital gets it.

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Talk to your RVP for more details, including how to become a Street approved mortgage professional.

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Quotables

“First, you need to understand the difference between value and price.

Simply put, price is what you pay, value is what you get. As a general rule people are willing to pay a higher price for higher value.”

- Doren Aldana, mortgage coach, on how to close more deals. Page 66

“If you want to use it [Facebook] to build your business for the long term, you should follow a topic that is very broad and bubble it down to the fact that you are in the mortgage business.”

- Nolan Mathias, broker, Mortgage Architects in Calgary, Alta. On using the social media to increase business.

Page 24

“Meet them face to face.

Put the numbers into plain and simple language so they can be read and understood. Be there for them as soon as any questions arise.”

- Sharon Vander Duim, mortgage broker for Dominion Lending Centres in Bowmanville, Ont., on how to work with first-time homebuyers. Page 54

August 2010 Publications Mail Agreement #41261516 Postmaster: Return undeliverable addresses to KMI Publishing, 100 Adelaide Street West, Suite 300, Toronto, Ontario M5H 1S3

EDITOR

Gina Monaco

Staff Writer

Heather Li

Staff Writer

Shane Buckingham

NATIONAL SALES MANAGER

CEO

Tim Duce Mike Shipley

Marni Parker

SUB-EDITOR

Rachel Naud Jacqui Alexander

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Editorial enquiries gina.monaco@kmimedia.ca Printed by Solisco imprimeurs-printers www.solisco.com

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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 CMP magazine can accept no responsibility for loss

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Choices.

At Macquarie Financial, brokers choose their compensation.

Ask about our commission options.

We’re on Your Side!

Call 1 877 462 3788 www.MacquarieFinancial.com

Macquarie Financial Ltd. (MFL) is not an authorized deposit taking institution for the purposes of the Banking Act (Cwth) 1959. MFL’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MFL, unless noted otherwise. MFL is not regulated as a bank or other financial institution or as a holding company thereof.

Readers Write Web comments

Kudos for CMP I just wanted to take a moment to give you our sincere thanks for running mine and Gregory’s submitted photo in this month’s (June, 5.6) CMP magazine. It was a real thrill to open in up and see it! I also want to say that I thought the issue as a whole was just excellent. CMP is a quality publication and I think a great resource for the mortgage industry.

-Wayne Campbell, Invis, Capital North Mortgages, Prince George, B.C.

What about the broker who is very successful but does not want to reveal their volume? Maybe they are conservative and want to keep their volume info to themselves. There are lots of very successful brokers out there that do tremendous volume but fly under the radar.

-Anon

On mortgage fraud People in the mortgage brokerage industry are constantly being painted with a lack-of-ethics brush (sometime correctly) but bank employees and mortgage specialists have their own issues. Most Top 50 website buzz notably the cash-back scam where the borrowers Since a few brokerages (MI, MA, INVIS) made don’t even see it. The banks internal audit requests to brokers to completely opt out of the ‘stated volume’ contest, it will be interesting to department should be taking a much closer look at this file. see not only who is in the Top 50, but what their reported volumes are. Let the brokerages, if -Kevin Power they choose to, provide the real numbers for their top folks. Further, many of the true top producers Lesson learned: Read before signing anything..too also refrain from the survey because it puts a bad.. it all boils down to common sense.. never sign target on them and places undue competition on or agree to anything that is too good to be true.. their business. read facts, do background checks.

- AB Guy - Rock Shukoor CMP

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News Industry

Toronto woman paying for mortgage fraud A Toronto woman is being ordered to pay RBC $95,000 after failing to realize she was being tricked into a mortgage fraud.

Angela Isaacs accepted $6,000 to co-sign a stranger’s mortgage and signed the documents without reading them, reported the Toronto Star.

Madam Justice Anne Molloy of the Ontario Superior Court of Justice also decreed that Isaacs owes 6.3 per cent annual interest on the $95,000 loss from June 26, 2008, until the debt is paid and, within 30 days, $13,500 of the bank’s legal fees.

“She took the risk and got stung,” said Molloy during the ruling. “That is her own responsibility, not the fault of the bank.”

In late 2004, Isaacs was discussing her financial woes with her then common-law husband in a Tim Hortons coffee shop. She was earning $35,000 a year at a full-time job and raising three young children.

A stranger named Mike told her she could receive $4,000 for co-signing a mortgage for six months so a man with a poor credit rating could buy a house. Later Isaacs decided against it but was persuaded after she was offered $6,000.

Isaacs clued into the scam when RBC started sending her late payment notices for a $280,000 mortgage on a house she owned with a man supposedly named Mark Forrest. CMP

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Matt Daniels, Ottawa Mortgage Advisors, Kanata, ON ...TMG allows me to maximize my income, including the ability to take full advantage of volume bonuses with the deal centre.

The company is large enough to provide excellent support, training, lender relations and promotional/advertising tools.”

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Vice President, Residential Mortgages First National Financial LP

WE ARE PASSIONATE ABOUT THE SERVICE WE PROVIDE. “As the hallmark of our organization, service is the number one priority at First National. The opportunity to partner with an organization that shares our dedication to providing exceptional service has been instrumental in meeting the needs of our broker partners. Canada Guaranty's commitment to having all calls answered by an underwriter allows us to address the needs of our brokers that much sooner.”

– Scott McKenzie, Vice President, Residential Mortgages

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

News Industry

Alberta man jailed for multi-million-dollar Jones victims mortgage scam can sue RBC for $40 million An Alberta man was sentenced to three years in prison for a $3.9-million rural mortgage scam that included 32 separate fraud charges over two years.

In the Edmonton courtroom on Wed., June 23, Eugene Charnczuk, 40, was also ordered to pay approximately $1.3 million to the Canada Mortgage and Housing Corporation, Genworth Financial, CIBC and TD Canada Trust, reported the Edmonton Sun. “White-collar crime is a serious matter, which should have serious consequences,” said Richard Marceau, Court of Queen’s Bench Justice.

The scam involved persuading so-called straw buyers to give up their names and credit information along with a $5,000 fee. Charnczuk and his co-accused James Steinhubl bought 31 residential lots in the Warburg and Empress townships of Alberta with the info, leaving the tricked loan applicants to pay for the fraudulent mortgages. CMP

65%

first-time homebuyers who expect to pay less than the asking price for their home

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Victims of the three-decades long Earl Jones ponzi scheme were granted permission to pursue a $40-million class-action lawsuit against the Royal Bank of Canada in the Quebec Superior Court.

Over almost 30 years, Earl Jones cheated 158 victims of at least $50 million, and operated his cash-flow con with an RBC account. But the victims are now suing RBC for not acting “in a prudent and diligent fashion” when monitoring the account.

Other financial institutions may be scrutinized as fraud participants too.

“There are others who turned a blind eye: 30 mortgages that were crafted with documents that would not have been accepted under normal circumstances,” said Kevin Curran, whose mother is one of Jones’s victims.

Curren’s mother had a $150,000 mortgage that was altered last minute to $350,000 with a 20-year term, though she was an 80-year-old woman on a fixed pension income.

In February 2010, Jones pleaded guilty to two counts of fraud and was sentenced to 11 years in prison at the minimum security penitentiary, Ste. Anne des Plaines. CMP

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News

mortgages in the press

Industry

HST takes effect in Ontario and B.C.: Effect on broker commissions?

The federal government released two documents on CRA 250, which amends the definition of financial services that could result in applying GST/HST to mortgage broker commissions.

Canada Revenue Agency released a revised and expanded version of Notice 250 on Wed., June 30, a day before the new harmonized sales tax became effective in British Columbia and Ontario.

Examples nine and 10 deal specifically with mortgage broker activity.

The department of finance also released revised and expanded explanatory notes to the legislative changes proposed in Bill C-9 in financial services and the application of GST/HST. Clause 55 deals with definitions.

Visit CMP’s news page to see CRA’s notes in full at: http://www.mortgagebrokernews.ca/news/ applying-gsthst-to-mortgage-brokercommissions/43845 CMP

Banks lower fixed mortgage rates by 0.1 per cent end of June CIBC took 0.1 percentage points off a number of its residential mortgages on Sat., June 26, the weekend the G20 summit was held in Toronto, dropping its benchmark posted five-year fixed rate to 5.89 per cent.

RBC Royal Bank, TD Canada Trust and Bank of Montreal also lowered most of their posted fixed-term mortgages by one-tenth of a point on Thurs., June 24.

The banks left their variable-rate mortgages the same. CMP

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DLC signs Don Cherry for new fall TV ads Dominion Lending Centres has signed on Canadian hockey commentator Don Cherry for its new TV commercials, launching September 2010.

Cherry is best known as being the “flamboyant yin” to Ron MacLean’s “yang” on the Coach’s Corner segment on Hockey Night in Canada, the most watched sports telecast in the country.

Cherry was also recently named one of the top 10 Canadians of all-time on the CBC program, “The Greatest Canadian,” which polled the nation’s citizens at large.

In May 2010, Reader’s Digest Don Cherry and Gary Mauris ranked Cherry as one of the most trusted Canadians, which is fitting for DLC’s goal to educate Canadians on their financing needs.

DLC members will have access to advertising templates on their intranet, life-size Don Cherry cut-outs for their offices, and video for websites to take advantage of the company-wide campaign. CMP

June housing sales fall sharply Residential housing sales fell significantly across Canada and the average resale price decreased after months of record-setting gains.

The Canadian Real Estate Association reported that home sales fell by 8.2 per cent in June compared to May, led by lower activity in Toronto and Calgary. Sales dropped in 70 per cent of the markets surveyed.

“The housing market is becoming more challenging for sellers,” said CREA president Georges Pahud to The Globe and Mail.

The national average resale price was $342,662, down one per cent from May’s record of $346,881. But prices are still 4.9 per cent higher than they were last June. CMP

News

Industry

first-time homebuyers in B.C. more likely to buy a condo First-time homebuyers in British Columbia are more likely to buy a condo instead of a house, compared to the rest of the country.

Thirty-seven per cent of British Columbians who bought a home in the past two years or intend to buy in the next two said they bought or will buy a condo, according to a TD Canada Trust report. This compares to 21 per cent of those surveyed nationally who bought or planned to buy a condo.

Also across the country, 58 per cent expected their first home to be a detached house, while in B.C., only 36 per cent of respondents bought or intended to buy a detached home.

“In B.C., it’s all about lifestyle and affordability,” said Barry Rathburn, manager of mobile mortgage specialists with TD Canada Trust on Vancouver Island, to the Vancouver Sun. City residents often want a condo to be near work or have a water view, added Rathburn. The price range of detached homes in places like Vancouver average close to $800,000, which makes buying a house a difficult task for most first-time homebuyers. CMP

Investment in Alberta housing construction up New investment in Alberta housing construction totalled $698.9 million in April, up from $431.8 million. In the singlehome sector alone, investment jumped to $588.8 million this year from $304.7 million a year ago, all numbers according to Statistics Canada data.

“In the spring of 2009, if you look at all the housing statistics -- the housing starts and the housing prices -- that really was the low ebb,” said Todd Hirsch, senior economist at ATB Financial in Calgary, to the Calgary Herald. “So if we’re comparing that period of 2009 to where we’re at now, it wouldn’t be surprising to see a pretty big jump.”

The housing market for the remainder of the year is likely to be “fairly subdued,” added Hirsch.

“That’s because we are seeing mortgage borrowing costs expected to rise, already rising somewhat,” he said. “And there’s just a little bit more market uncertainty at the moment. People might be holding back just a little bit.” CMP

Alberta’s first-time homebuyers better at bargaining First-time homebuyers in Alberta appear to negotiate better than all other Canadians, as the province reported 71 per cent will pay less than the asking price for their home compared to 65 per cent nationally. The numbers come from the first TD Canada Trust Homebuyers Report, which surveyed Canadians who purchased their first home in the past two years or intend to buy in the next two years.

Also, 95 per cent of Albertans surveyed said they are putting in as much as they can afford for a down payment versus 88 per cent nationally. And 65 per cent have saved or going to save for their home purchase within the next two years. Still, only 25 per cent will have more than a 20 per cent down payment, while the rest will need their mortgages insured by companies, such as the Canada Mortgage and Housing Corporation.

“It is important to be realistic about what you can afford as a down payment and what that will mean for both the type of home you buy and for your mortgage payments over time,” said Farhaneh Haque, regional sales manager for mobile mortgage specialists at TD Canada Trust. “First-time homeowners should consider a larger down payment because a 10 per cent or greater down payment will make a big difference.”

Also in Alberta, the top activities before buying a home included getting pre-approved for a mortgage, learning about mortgage options, calculating closing costs and speaking to a mortgage lender before shopping for a home. CMP

mortgagebrokernews.ca

15

INVIS AND MORTGAGE INTELLIGENCE

Celebrating 10 Years of Industry Leadership

Saying You’re #1 Is Easy…

Being #1 Takes Effort.

At Invis and Mortgage Intelligence we lead the Canadian mortgage brokerage industry in volume, volume per agent and income per agent, as noted by Filogix.

While it’s great to be #1, we’re working hard to stay #1.

Whether they’ve been with us 10 months or 10 years, our brokers receive unparalleled backing – efficient weekly payroll, the industry’s best compliance, expert deal support, free customized marketing, competitive compensation, a great corporate culture, the list goes on and on…

In short, we’re all about real support from real people. We really enjoy what we do – helping our brokers achieve greater success.

Now that’s something to celebrate!

ADVERTORIAL

What our brokers have to say 2010 marks the 10th anniversary of both Invis and Mortgage Intelligence. Here’s what our mortgage professionals have to say about partnering with Canada’s top brokerages: I’m proud to say that I’m one of the original Invisians and remain so because Invis has allowed me to determine my own destiny as a mortgage broker and business person.

I’m provided with branded mortgage and insurance products and the marketing materials to promote them. I’m provided with competitive compensation, group benefits, and accurate and timely payroll. I also enjoy the team spirit demonstrated by my colleagues as we share ideas and varied paths to success. All of this under the umbrella of a reputable and award-winning national broker firm.

Bill MacDonald, Halifax, NS, Invisian since 2000

10 01 NUMBER

YE ARS

With 35 years in the mortgage brokerage business, I have seen it all, good times and tough times. The best move I ever made was to join Norlite in 1996 which eventually became MI. With the support I received from MI, and our great compensation package, I have had my most profitable years in the business. MI has been great for me, and I will never consider a change.

Bryan Guertin, Mississauga, ON, With Norlite (which became MI) since 1996

The support from MI such as regional manager support, idesk intranet, cutting-edge CRM program, etc. allows me to not have to worry about day-to-day administration and lets me concentrate on what I do best... assisting Canadians with their mortgage needs. It’s great to be part of such a special group of people.

Randy Winger, Stevensville, ON, with MI since 2002

I chose Invis back when Dave Nichol was still CEO because it had a good balance between full-service corporate structure while still maintaining an entrepreneurial spirit. That culture is still evident today and is even more relevant in today’s marketplace.

Arlene Demars, Red Deer, AB, Invisian since 2001

Let’s talk

These days, our industry is changing fast. Invis gives me the very latest info, tools and tips to help me improve my game. And they keep me up-to-date with regulatory changes.

Mario Sita, Burlington, ON, Invisian since 2000

I recommend joining a team of professionals who not only are forward thinkers, but have the power of two very strong companies to assist you when competing for business.

John Parato, Burlington, ON, with MI since 2006

Learn more about joining our broker teams at www.invis.ca & www.bettersupportcanbeyours.com

Head Office: 5770 Hurontario Street, Mississauga, ON L5R 3G5. Invis FSCO 10801 | MI FSCO 10428.

News Industry

China bank to compete in Canada Industrial and Commercial Bank of China (ICBC), the world’s largest bank by market value, is moving into Canada and will offer a wide range of retail and corporate banking products, including mortgages and commercial loans.

ICBC purchased six branches in Canada formerly owned by Bank of East Asia, and will start its Canadian expansion through those storefronts, reported The Globe and Mail. The main consumer target will be the prime growing markets of newcomers from China and businesses dealing with both China and Canada.

“We consider it the best time to launch the banking business in Canada,” wrote Mingqiang Bi,

CEO of the Canadian operations, in an e-mail to the Globe. “While countries across the globe were hit hard by the financial crisis, Canada withstood many of its shocks. We are inspired and impressed by Canada’s sound and stable banking system and supervisory regime.”

Initially, ICBC will focus on Toronto and Vancouver, and there is roughly 1.4 million Chinese people living in Canada.

“In the past few years, the number of new immigrants from Mainland China increased sharply, which is a huge retail banking potential market to be explored,” added Bi.CMP

Chinese citizens take Canadian real estate tour Thirty Chinese citizens are taking a $5,500 real estate tour of Toronto and Vancouver in August in hopes that they will spend at least half a million dollars on downtown condos during the 10-day visit.

The trip has been designed by Ricky Zhang of TransAsia Investment Partners, a Chinese company created to help residents buy properties abroard, particularly in Canada, as reported by The Globe and Mail.

“With the rising risk of the bubble bursting in the Chinese real estate market, there is a

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demand for overseas real estate for diversification, safety and relatively high rental yield,” said Zhang.

Zhang intentionally set the tour price high to ensure investors are serious. “They stay in four-star hotels, eat $30 meals,” he said. “I am not sure if this a really high standard in Canada, but in China it is only affordable by the upper class.”

The potential Chinese buyers include a farmer, an engineer, a furniture maker and a caterer. CMP

30%

how much house sales in Vancouver dropped in June from May

Quebecers most likely to stay in first home forever Quebecers are most likely to live in their first home for their entire life even though, compared to other provincial residents, they look at the least amount of homes when shopping for the first time. This was reported by the first TD Canada Trust Homebuyers Report, which surveyed Canadians who bought their first home in the past two years or are planning to buy in the next two years.

The average Quebec homebuyer will view 10 homes versus 13 nationally.

Twenty-six per cent of Quebecers also said they never plan on selling compared to 16 per cent nationally.

Quebecers are the least likely in Canada to worry about affording their home if interest rates rise (47 per cent versus 59 per cent across the country). One hundred per cent of Quebecers surveyed said price was the most important deciding factor when buying a home, followed by home features and layout of the home. CMP

257 Windsor’s housing starts for 2010 by June; the highest level in four years

Canadians top foreign buyers for U.S. property Canadians were the top foreign buyers for U.S. properties from March 2009 to March 2010.

The Chicago-based National Association of Realtors released a study that showed Canadians bought 23 per cent of homes sold to citizens of other countries, as reported in The Globe and Mail. Canadians spent about $9.5 billion on U.S. real estate.

Mexicans were second with 10 per cent, followed by the United Kingdom (nine per cent), China (eight per cent) and Germany (seven per cent).

“Although international purchasers from a wide variety of countries are present throughout the United States for a variety of reasons, proximity to the home country and the convenience of air transportation are believed to be important considerations in selecting the buying location,” the report stated.

There were, however, several financing hurdles noted anecdotally in the report’s appendix. One read, “Canadian buyer had U.S. job, earning over $100,000 per year, yet bank took over four months to decide if they would provide him with a $150,000 mortgage. This process should have been much more of a no-brainer.” CMP

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International

U.S.: Lowest 30-year fixed mortgage rate in Freddie’s history In the U.S., the average rate for 30-year fixed mortgage loans dropped to 4.69 per cent from 4.75 per cent last week. Recorded by mortgage company Freddie Mac, it is the lowest rate seen since Freddie Mac started tracking rates in 1971.

Rates for 15-year and five-year mortgages also dropped. The average for 15-year fixed mortgages fell to 4.13 per cent, the lowest on record dating to September 1991, down from 4.2 per cent the week before. Five-year adjustable-rate mortgages were averaged at 3.84 per cent, down from 4.89 per cent a week earlier, reported the Washington Post.

One-year adjustable-rate mortgages hit 3.77 per cent, the lowest since May 2004, down from 2004.

But despite the falling rates, the housing market is still facing major problems. New-home sales collapsed in May, the economy is still dealing with high unemployment, and many people do not qualify for new mortgages under the tightened lending rules. CMP N.Y. mortgage-rescue companies issued warning letters More than 30 supposed mortgage-rescue companies have been sent cease-and-desist letters from the New York attorney general’s office over illegal and deceptive practices.

The 31 companies promise to help at-risk homeowners and were added to a list of more than 180 companies that have already been warned, reported the Associated Press.

Andrew Cuomo says his office received numerous complaints from customers that included misleading practices, such as demanding fees upfront, not providing written contracts and false advertising.

Cuomo advised consumers to contact the Department of Housing and Urban Development for free mortgage help. CMP

u.k U.K.: FSA issues more fines to fight mortgage fraud The Financial Services Authority in the U.K. issued fines totalling more than £179,000 (approximately

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13.8%

u.s.

Russia’s home loan rates average, which is more than twice the level of inflation

C$279,000) last week, as it continues its fight against mortgage fraud.

The English government regulator also banned six brokers, three of whom worked for Neale Morton IMS Ltd., with offices in Gateshead, Tyne and Wear. Neale Morton, the principal and director of the firm, has been prohibited from trading and was fined £130,192 (approximately C$203,000) for his knowing involvement in fraud.

Morton submitted applications for himself using false income details and allowed his firm to be used for mortgage fraud by advisers and customers. CMP

china China stocks fall among third-home mortgage speculation In China, property investors were hoping the limit of purchasing two homes was being lifted but the Chinese banking regulator insisted this was never the case, causing China’s stocks to fall amidst the speculation.

“It’s hard to believe that the government would reverse its crackdown on the property industry so quickly and anyone who hoped so is now disappointed,” said Zhang Ling, a fund manager at Shanghai River Fund Management Co., to Bloomberg News. The shanghai Composite Index, which tracks the bigger of China’s stock exchanges dropped by 1.6 per cent, which is its biggest decline since June 29.

Rumours about the real-estate curbs were splashed in newspapers, driving property prices down for the first time in 16 months. A recent China Daily headline read, “Third-home mortgages back in some big cities.” The paper reported that banks in Shanghai, Nanjing and Hangzhou were giving out loans prompting their counterparts in Beijing and Shenzhen to also reopen lending to anyone wanting to buy a third home. These supposedly available loans required a down payment of 50 per cent or more with extremely high interest rates.

However, the government said in a statement that its restrictions on property ownership have not changed, and commercial banks need to and should be carrying out the policies strictly. CMP

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News

Appointments

appointments

Bank of Canada adds another Goldman Sachs alum Mark Carney’s former colleague, Tim Hodgson, will soon become a special adviser to the Bank of Canada.

Hodgson, CEO of Goldman Sachs Canadian operation, will spend 18 months as a special adviser to BoC’s governor beginning in September.

“If you want to catch mice, then you need someone who really understands how the mice think and act,” said Ian Lee, Carleton University MBA head, of the appointee.

As the central bank’s senior representative in charge of communicating with market players, Hodgson will help push the bank’s agenda past competing Bay Street interests and will work with regulators on new standards for the capital banks that are required to hold as a cushion.

Before working in government, Carney spent over a decade at Sachs and worked with Hodgson for two years at Goldman in New York. CMP

Mortgage Architects announces the hiring of Suzanna Stefanec as national director of products. Stefanaec has been described as incredibly knowledgeable, the best resource in the industry and a “product guru” by her brokers.

Stefanec earned the respect, loyalty and admiration of brokers, lenders and insurers across Ontario in her role as regional vice-president for the province. New brokers and experienced veterans alike look to Suzanna for advice and guidance. Her information has helped to propel Mortgage Architects’ brokers in Ontario to stellar business results. Now planners from across Canada will have a chance to build their businesses with Stefanec’s help.

At Equitable Trust, the following appointments and promotions have been made:

Declan Murphy

Merix exceeds $10 billion in mortgage originations Merix Financial surpassed $10 billion in mortgage originations today since the company first started.

This was achieved in less than five years, quicker than any other lender in the industry.

“Thank you for believing in our company,” wrote Boris Bozic, Merix founding president and CEO, in a press release to its approved originators. “Many of you took a chance on us when we first launched.

Imagine a trailer fee lender with no assets under management being selective with whom it wanted to do business with! Lots of people thought we were crazy, that it could never sell. Not only did it sell, many of you this year are realizing the power of trailer fees because you are earning significant annual income on your book of business with Merix.”

Merix thanks its wholesalers, insurers, investors, technology suppliers and its employees and management team at Paradigm Quest Inc. for all their contributions to getting to this milestone. CMP

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Tony Bentes

Declan Murphy has been promoted from residential mortgage officer to residential mortgage underwriter. Tony Bentes joins as residential mortgage underwriter. Michael Raghubar joins as commercial mortgage officer, and Dominik Turek became a residential mortgage officer.

Also at Equitable Trust, Devika Kosmadia takes on the role of residential mortgage funder, while Mireille Janbazian and Lisa Ramkisson are new residential funding administrators.

Ron Swift, president of MCAP Service Corporation, is pleased to announce the appointment of Gino Tieri as vice-president, sales for MCAP Service Corporation.

Tieri brings with him a wealth of sales leadership and strategic planning experience. Most recently he was with Maritz Canada, a leading marketing services company, as director of the business development group. Tieri was with Maritz for seven years and led efforts specific to channel development and channel enablement with top clients in key industries, including mortgage and technology. Prior to Gino’s role at Maritz, he spent over 10 years with Xerox, Moore Corporation and Navigata Communications in both sales and sales leadership roles.

As the mortgage market changes, MCAP continues to evolve to better serve our broker customers by providing industry leading tools, processes and people.

News

Industry

TMG celebrates 20 years Started with little fanfare in 1990, The Mortgage Group was excited to celebrate its 20th anniversary in July. Currently operating in nine provinces and three territories, the national mortgage brokerage remains focused on supporting the broker channel and continued growth.

The company, initially named Kirk Capital Corp, was licensed by FICOM on July 27, 1990, and opened its first franchise in British Columbia under London, Ont.-based “The Equity Centre,” hiring four mortgage brokers.

TMG evolved out of Kirk Capital and expanded its operation with offices in Saskatchewan, Alberta, Ontario and Atlantic Canada.

“It is amazing to think that 20 years has already passed since we entered this industry,” said Grant Thomas, CEO, partner and co-founder of TMG. “We have so much we still want to do, in many respects we feel like we are just getting started. We work with an incredible network and I am looking forward to seeing what the next 20 years will bring.”

Today, TMG is one of the largest and most well-respected mortgage brokerages in Canada, having helped almost a quarter million Canadians find the right mortgage that best suits their financial needs.

“TMG provides exceptional value for brokers with unparallel support, training, service, technical advancements and lender relationships,” said Debbie Thomas, TMG partner and co-founder. “It is what has differentiated us in the past and will continue to be the core to our future.”

“TMG will not rest on our past success - we will maintain our strong focus on helping our brokers educate Canadian consumers on the value of using the services of a mortgage broker helping them to attract and keep customers for years to come,” says president, Mark Kerzner.

Throughout this summer TMG is planning various events and marketing initiatives celebrating its 20 years in the mortgage business. CMP

License #11127

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Business Social Media

facebook: your new 24

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Business

Social Media

Online social networking sites, such as Facebook, Twitter and LinkedIn, have exploded over the past year. Heather Li shows how brokers use these tools to market to a bigger, broader audience

S

ometimes, outside of the brokerage world, the word “mortgage” can conjure up scary thoughts and baffling scenarios for homebuyers and commercial real estate investors. Naturally, the first place everyone goes to help alleviate fear of the unknown is the Internet. That’s where you, as a marketing-savvy mortgage professional, should be too. But not just anywhere on the web.

The place to go is Web 2.0.

calling card

What is social media?

Web 2.0 is made up of user-driven, communityoriented sites such as Twitter, LinkedIn and Digg. It’s an ever-evolving online network that people merely figure out as they go along.

Twitter, for example, is the best, easiest and fastest-growing online social media tool out there.

To some mortgage brokers, who are only familiar with traditional marketing methods, the prospect of sending out a 140-character tweet can seem as daunting and confounding as a mortgage does to a newlywed couple. But it’s actually simpler than you think.

“Twitter is the big one for people who aren’t tech savvy,” says Angela West, creator and owner of Working Web Copy, a technology, social media and marketing copywriting company for the digital age. “It doesn’t require much work, it’s easy and quick to use, and lots of people are on it now.”

West advises if the World Wide Web 2.0 is new to you, that you shouldn’t get lost trying to stay on top of all the various social media sites, such as Tumblr and Posterous, two popular quasi-blogging tools. Instead pick one or two that you feel comfortable with and stick to it. She recommends the micro-blogging tool Twitter as No. 1, and the professional networking site LinkedIn as No. 2. She worries about using the social networking site Facebook. “Facebook ties too much into your personal life,” says West. But if you tailor your Facebook profile strictly to professional details, it won’t hurt you, as proved

by Nolan Matthias, a licensed broker with Mortgage Architects in Calgary.

Using online networking to maximum benefit Matthias, 27, and in his eighth year as an agent, views online social media as a tool to complement

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Business Social Media

a mortgage broker’s marketing strategies. “This is a relationship-based business where you should be out there meeting people face to face,” he says.

“But the benefit of using Twitter or Facebook to support your business is that people can silently follow what you’re doing professionally and educate them quietly in that way. So when the time comes to do a deal, you can talk more about their kids, family, sports, what they did over the long weekend. It’s not as much of a hard sell.”

Recently, Matthias ran into a high school friend who he hadn’t talked to in almost five years. They just happened to see each other on the street, briefly stopped to say hello and instead of trading business cards, said what many people say these days when they meet or become re-acquainted with someone, “Add me as a friend on Facebook.” They didn’t talk about work when they saw each other, but when they connected online, his friend saw on Matthias’s Facebook profile that he was a mortgage broker. “A couple of months later, he came to me because he was buying his first home,” says Matthias. “And after that, he referred another friend to me too.”

So your Facebook account doesn’t need to be rigidly professional, but as long as you maintain it like your business setting, it is another avenue to generate potential clients and keep your name top

more Web 2.0: Online bookmarking sites Another online tool social media expert Angela West recommends to connect with and draw in potential clients is the bookmarking site Reddit.

Stumbleupon, Digg and Reddit are places where anyone can post a link, image, article, video and more to specific categories, such as real estate. Then users vote on what links they like or dislike, and the items are ranked accordingly so super hot postings can go viral, i.e. spread to hundreds and thousands, and potentially millions of people in less than a day. So if you are already maintaining a blog, take 10 seconds to post each new writeup on Reddit.

The likelihood of your mortgage brokerage story going viral is slight, but the purpose is to build your brand, create a following and essentially market yourself for free to an audience that may not have been reachable through expensive ad buys. The other advantage to using Reddit, says West, is people on Reddit tend to be tech-savvy, tech-oriented, urban professionals who are in the burgeoning target market of young couples without kids, earning a solid double income. Your accessibility, authority and reliability only goes up by showing you can join the same playgrounds.

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the social media sites Facebook What started as a university students-only networking site quickly transformed into everybody’s instant calling card. Sign up with Facebook, and get a profile page where you can upload photos, update your “What are you doing?” status like a headline in a newsfeed, and “friend” other users so you can check in on their status updates, and exchange messages publicly on one another’s profiles or privately through direct messages.

LinkedIn This site has been described as “Facebook for professionals.” Your profile page essentially reads like your resume so other people in your industry can see your past work experience. When you link with other users, you can also ask people you’ve previously worked with or worked for to recommend you so potential future employers or clients can be referred to you.

Twitter It’s the micro-blogging site where each status update can only be 140 characters long. You follow users who interest you, and if you don’t make your account private, anyone can follow your updates too. You can search for keywords to see what people are talking about, and reply back to people to have conversations live.

of mind. For anyone who may think online social media tools are just for a younger generation, Marianne Hobson at 46 years old shows otherwise.

Hobson became a mortgage assistant with Mortgage Architects in 2001, and in 2007 became a licensed broker with Dominion Lending Centres in Waterdown, Ont. “I update my blog continuously and I’ve linked it to Facebook, Twitter and LinkedIn,” says Hobson. “I also use Facebook as a tool to get appointments with Realtors.” Before becoming a broker, she had no prior experience with Facebook. But she understood nearly everyone spends much of their work and social time online whether young or old, and found that she connected with people she may never have met otherwise.

In one case, she went to a client’s house to help them with a problem they were having. The clients were two teachers, and their Realtor got them into a situation where they owned two properties at once. “I fixed everything up for them. When I left their house, five minutes after I left, she posted on Facebook, ‘The world’s best broker just left my house,’” says Hobson.

“Right after she did that, I got two calls from two of her friends on Facebook.” They were also teachers Hobson wouldn’t have met before, and she ended up working to help them as well.

So even if you have your 200 friends and family on Facebook, if you were to ask them all to post that they know a great mortgage broker, chances

Business Social Media

are at least five people will contact you. Though Facebook works best for Hobson, she echoes social media expert Angela West’s advice that it’s best to focus on one or two online tools rather than being overwhelmed trying to master it all. “Concentrate on at least one of them continuously,” adds Hobson.

“Guaranteed, you will get questions, people contacting you for mortgages. You reach more and more people in minutes than you ever could in a lifetime in the old way of knocking on people’s doors and taking them out for coffee.”

Hobson notes that some people in her generation are wary of online social networking because they’re scared of information leaking out. “But if it wasn’t for Facebook, I wouldn’t have half my clients,” she says.

“People have to get over their fears, get on a computer and link themselves up. And it’s free clients. Your expense account is a lot less when you’re doing it this way.” She suggests to get started, take a day to set up an account, ask any kids you have or know to guide you through the beginning, and then play around with it. “It’s so easy,” she says. “You don’t have to be a rocket scientist.”

tweetiquette and twips for mortgage professionals A tweet consists of 140 characters, so the idea is to be short and to the point. Here are a few hints on how to do it right, and a couple of guidelines on how not to be annoying: • Add value. When linking to a story, write a short comment at the beginning on why you found it interesting and pique users’ curiosity • Give credit. RT signals you’re “retweeting” what someone else wrote. HT means you reworded it but “hat-tipped” to the original Tweeter • Be purposeful. No one cares that you ate a banana this morning (unless it was a REALLY, REALLY GREAT banana). Keep the branding relevant • But be human. If you have out-of-the-ordinary news, potential clients like to see a personal side, and will probably send an instant reply • Don’t spam. It didn’t work (well) for e-mail. It’s not going to work here.

• Be courteous. Keep up with who’s mentioning you, and always try to say “thanks for RTing” or “thanks for the follow” And for anyone who thinks 140 characters is limiting—each tip could have fit into a tweet.

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Keys to long-term success The best part about using Facebook is starting with the people you personally know to broaden your professional connections. But Matthias says if you want to use it to build your business for the long term, you should follow a topic that is very broad and bubble it down to the fact that you are in the mortgage business.

He and his fiancée Jen, also a licensed agent, run a blog called Calgary Foodies. The tagline reads, “Adventures of Two Mortgage Brokers with Taste.” “It’s about taking something broad, restaurant reviews, recipes, something that everybody needs and has an interest in, and subtly add in our business,” he says. “So when a reader does need a mortgage, our names will be on their minds, and we’ll grab them when they need our services.”

Matthias doesn’t necessarily think online social media is for everyone though. “If there are brokers who primarily connect with their clients face to face, and don’t spend a lot of time online, creating something like a Facebook page may actually hurt their business,” he says.

The difference between a Facebook page and Facebook account is people “like” a Facebook page so it essentially describes your popularity by the number of people following the page. But if you are not frequently updating, you won’t get many online followers and it causes a false impression of your reputation as a broker. While with a Facebook account, the number of “friends” you have isn’t necessarily an indication of your reputation as a broker. Instead it is just another way for potential clients to contact you, such as Matthias’s run-in with his old high school friend.

So just like any other marketing campaign you’d use, when it comes to attracting clients online, you need to invest the time. How much time is up to you, but just make sure there’s regular activity. West says one hour per week, even spread out by a few minutes each day, is enough to maintain an online presence. Don’t think once you’re online, you’ll get an immediate gain of new business though. “It’s another way of meeting people,” she explains.

“You might get lucky on your first go, or it might take six months to a year.” However, she’s quick to quip that the return on investment for a mortgage broker is much higher than that of a copywriter.

It’s obvious: when something new arises that seems terrifying, it pays to literally jump on to the Internet. And it isn’t as difficult to understand as a mortgage may be to an ordinary person. “You don’t need an advanced degree to use Twitter,” West laughs. All you need is a few free minutes each day. CMP

Top: Nolan Matthias Bottom: Marianne Hobson

KNOCKOUT MAILINGS If there was an Olympics of business-ask mailings, we think we’d own the podium. That’s because our mortgage planners – among the top performers in the industry – are a pretty demanding group. They want the best material: timely, relevant, sharp, and persuasive.

We deliver, with business-ask mailings that get the phones ringing. None of that “off the shelf ” library stuff.

What do we do that’s different? We pinpoint the best market opportunities: 2009:

“Even economic storm clouds have silver linings.”

(Everyone thought the world economy was collapsing.)

2010:

“Out-of-the-box thinking can combat rising rates.”

(Media frenzy was fuelling concerns over rising rates.)

lves:

se Our results speak for them “The ‘silver linings’ mailing didn’t swamp us, we were HAMMERED!” – Peter Majthenyi, Toronto

“Had a very good response for refinances from the business-ask letter! I got more deals than I expected from the mailing. Kudos to MA Marketing.”

– Kevin MacGregor, Calgary

“My business is up so much year-over-year because of the business-ask mailings, they keep us busy right through the summer.”

– John Cavan, Milton

Our planners have the highest standards in the industry, and that’s why Mortgage Architects has built the best value proposition anywhere.

Meini Ickert Vice President, National Sales

meini.ickert@mtgarc.ca 604.970.8650 778.218.2120

www.mortgagearchitects.ca © Copyright 2010, Mortgage Architects, all rights reserved.

The power of value.

News subhead

www.mortgagebrokernews.ca

ISSUE 4.8

talking back

The top 10 broker-friendly lenders

SPECIAL FOCUS BUSINESS SASKATCHEWAN ENTERS HOW CONTESTS CAN THE POST-BOOM WIN YOU MORE CLIENTS

PROFILED GERRY WALSH, THE ORIGINAL EAST COAST BROKER

2009

this time last year B.C. mortgage lenders see pre-approval upswing Last year, B.C’s lenders were reporting a significant upswing in mortgage applications after a rate increase.

“Since bottoming out at an average of 3.69 per cent for a five-year fixed term to a current average of 4.49 per cent for the same product, our members are finding that buyers, especially those sitting with low rate pre-approvals, are likely motivated to get out and bid on homes to make sure they can close on their mortgage within the next 60 to 90 days,” said Joe Santos, Mortgage Brokers Association of B.C. president.

The province also saw excess inventory being sold due to slowed building and indicators of price stabilization, signs that Santos said showed the real estate recession wouldn’t be as dire as projected.

“In the last quarter of 2008, we thought we were facing a potential doomsday scenario. But based on activity since the beginning of 2009, our worst fears are not being realized,” he said.

One year later, The B.C market started off fairly slow and the beginning of last year, with the emergency interest rates, the market really started to take off.

According to Mortgage Brokers Association of BC director Joe Santos, the province started to see a lot of refinance activities through March and April and then there was a lot of volume through May, June and July, which was a lot of selling off inventory.

In talking to some of my counterparts, business has slowed considerably. Everybody’s stating that it’s definitely a slower market this June than it was last year because of the cycle,” Santos said. “There’s new inventory coming on, a lot of the inventory that was on the market last year was gobbled up, both in single family and some of the condo projects.”

Last year, prices rose through the spring and summer into the end of the year, especially in B.C’s lower mainland. In the interior, including Victoria, prices stabilized and improved but didn’t rebound to previous levels. With more inventory on the market now, Santos says there’s a lot more options for purchasers in the greater Vancouver and Victoria areas resulting in reduced prices.

“We’re certainly starting to see the edge coming off prices where they definitely have stabilized and we might start to see a minor adjustment. I wouldn’t

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anticipate anything major because interest rates are also starting to come back down again, which helps keep the market active. It’s definitely a balanced market moving towards a buyers’ market.”

New broker legislation drafted in Saskatchewan Last year, Saskatchewan’s Financial Services Commission was drafting regulations for new requirements brokers had to meet before getting a licence.

Education credits, two years of on-the-job experience and error and omission insurance were all proposed additions to the Mortgage Brokers’ Act. The new regulations aimed to increase consumer protection as Saskatchewan’s broker population grew.

“As our market boomed in the last two years, we’ve had so many new brokers come aboard and there hasn’t been a high level of screening. That can give a bad name to people who conduct good business and who have been in the financial industry for a long time,” said Saskatchewan broker Carrie Cardinal.

At the time of our article, the regulations had been sent out to industry members and published online for feedback. The next step was putting them through the province’s legislative process.

One year later, According to Jim Hall, superintendent of insurance at the Saskatchewan Financial Services Commission, the regulations have not been passed through the legislative process yet but are in the final stage of the process.

“I will be very happy when The Mortgage Brokerages and Mortgage Administrators Act, 2007 and the regulations come into force. The new legislation will be a substantial improvement over the current Mortgage Brokers Act and will provide greater consumer protection while allowing mortgage brokers and administrators to operate without undue restriction,” Hall said.

The biggest concern for brokers was having to disclose the commission they received from a lender to a borrower on a particular mortgage transaction.

The regulations haven’t had to face any particular hurdles so far, but regulators have had to modify their existing licensing systems and processes to accommodate the new requirements. Hall is developing new licensing kits and instructions for applying a licence together with draft disclosure documents in anticipation of the legislation coming into force later this year. CMP

Feature

SOCIAL NETWORKING

Networking

for net worth Word of mouth is the best form of advertising, and social media provides access to its online cousin. Tim Neary from your sister publication MPA in Australia searched out expert opinion to determine exactly how to use social networking to grow your business

I

n this increasingly competitive world, if someone offered you a way to keep your clients close and attract new prospects every day, you’d jump at it, right? And if it was overwhelmingly inexpensive, that would be even better.

Well, all of this is possible through the latest marketing trend called the social media.

One of the ways that social media benefits small-to medium-sized businesses is by making it easier to interact with both prospective and existing customers, says Michael Lam, director at Vovia Online Marketing.

“But make sure that you interact as a person, rather than a corporation, in order to appear genuine and build up trust ,” he says.

The great equalizer Easily, the biggest benefit the social media offers to small and medium sized businesses is creating a level playing field.

“It’s just as easy for an independent business to set up and use social media tools as it is for big business. Joining these networks is usually free, so the only costs to setting up a leading social media presence is a bit of your time,” Lam says.

This can take many forms such as social networks, blogs, discussion forums, and more. The common element is that the sites are a platform for

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SOCIAL NETWORKING

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users to communicate and share, whether it be thoughts, opinions, photos, or videos. In particular, applications like Facebook or Twitter provide a unique opportunity to solicit ideas and opinions from potential and existing customers and build up a loyal brand following.

In addition, both of these social networks allow you to build up a following which can be used for marketing purposes.

“You can announce new products or sales promotions although directly marketing through social networks is usually frowned upon so it must be done subtly,” says Lam. For brokers, LinkedIn might be a broker’s best bet as a business-oriented social networking site.

“It offers loads of features beyond just building a profile,” says Lam. ‘With LinkedIn you can join groups related to your industry, post job and find jobs, answer questions which demonstrates your expertise and can generate recommendations from former clients.”

One site that is often overlooked is Yahoo!

Answers. People post questions to the site, users submit their answers, and the best response is voted to the top of the page. This can be another great way to demonstrate your expertise. Plus you can place a link to your site, so you can drive traffic back to you.

Blogs are another great way to increase your business footprint. Writing one can be an extremely effective way to promote your brand and drive search-engine traffic. But if you don’t have the time to maintain a blog, you can still leverage its power says Lam. “One way is to approach popular blog sites about your topic and offer to contribute a guest post. This gives you exposure to blog readers, while providing the site with fresh, original content.”

The principal difference between a corporate blog and standard web content lies in the character of its content, and the style in which the content is disseminated and made available. Rather than the formal style of traditional websites’ marketing-driven copy, the blog should be written in a personable style, which provides a platform for the business to create a persona,” say Robert Beerworth, managing director at the web design and development firm Wiliam in Australia.

Google me The primary reason for a business to put a blog in is to generate qualified traffic to the website.

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corporate blogging: the golden rules 1. The content must always benefit the reader 2. Avoid content that is promotional or sales-driven 3. Make sure the URL is yours. Having a blogspot. com or wordpress.com address is not going to help you since all the backlinks which are improving SEO are improving blogspot.com’s or wordpress. com’s SEO, not yours 4. The objective is to get people reading your content – that way, they are more likely to call.

5. Never ignore comments and feedback. If people can see you are dealing with sticky issues they are perfectly happy. If not, it can backfire.

6. Keep it succinct. If a lot has to be said, that’s OK, but don’t go on forever.

7. Using supporting imagery and diagrams will generate a lot more traffic.

8. Stick with it. The effort will pay off in four months when the leads start to come in.

Most corporate websites have a very low amount of traffic, “says Beerworth. “There is no reason to visit the site; what’s been written is just not interesting. Yet with a blog you can be producing interesting, topical, funny and useful information on a regular basis.”

And that starts to attract traffic. Since being ranked first in Google is the most important goal for any website, blogs are a great way to get you there by generating good quality organic links.

“If you are writing interesting things, users will reference you and link to you, and that benefits your search engine optimization,” says Beerworth.

Search strategy Having plenty of content in the search engines is the first component. And referencing certain key words is the next – the more you use certain words, the more likely Google is going to reference your content. And having outside people link to your blog site is the key component. Commenting on his own blogging activity, Beersworth says because Wiliam has written so many blogs over the years, thousands

Feature

SOCIAL NETWORKING

of people link to them now looking for an opinion or advice. “This derives more traffic and improves our Google ranking,” he says.

All of a broker’s business objectives can be met through a blog since it allows you to write very targeted content.

“When consumers search for a mortgage broker they search through a number of criteria, and inevitably one of those is going to be geographical. Let’s say someone is looking for a broker in Surrey Hills or Kalgoorlie (Australia) or wherever it happens to be. If you have lots of content about a deal that you just brokered in your area, or information on trends you are seeing in your area, or that there was a great piece of news in the local press about your area – then when someone does that search, you are going to be the first they will find.”

“ customers are more likely to make contact with a broker who is happy to talk and is making a clear effort to immerse themselves in the industry ” “Corporate blogging means you are more likely to be found for the kinds of search terms that people are looking for. And you can start to put into your content the sorts of words and phrases that you think are relevant, and over time you are building this repository of content that puts you into a fairly unassailable position

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SOCIAL NETWORKING

compared to your competitors, who are failing to do it,” says Beerworth.

Another spinoff is that you display your approachabiolity and experience. You want people to contact you on the basis that they will get the best home loan at the right price.

Customers are more likely to make contact with a broker who is happy to talk and is making a clear effort to immerse themselves in the industry. They probably won’t take action if they come across a name and contact phone number.

“Blogging says a lot about you and it forms a one-to-one relationship. Consumers recognize the effort and get a real feel for the writer, so when they pick up the phone they are much more comfortable with who they are talking to,” says Beerworth.

“ blogging says a lot about you and it forms a one-to-one relationship ” Web years Blogs take several months before they start to produce the sorts of results – like the traffic, contacts and other enquiries – that make a difference. It might be a medium to long-term strategy but that doesn’t mean it’ll take “real” years to get the results.

“But almost inevitably the business gives up before then because it loses patience,” says Beerworth.

It does take patience to ride through those initial few months where there is no gratification. But if you put the effort in, the return will come. “Stick to it, and six months in expect to be saying things like, ‘why didn’t I do this earlier?’ Or even, ‘how many blogs can I do?’

“Businesses really start getting into it because they start getting phone calls from other audiences like the media as well as from potential new clients,” he says.

Writing a blog a day is probably overkill.

Instead, aim to write one blog a week. Less frequently than that is also OK, but the rule is that only quality posts are allowed.

There is already a lot of rubbish out there, Beerworth says, and people only want to read good content.”

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One of the tendencies with blogs, because the business is doing it for traffic, is that posts are put up with little thought of the content. “The attitude is, ‘well I did it.’ “But, says Beerworth, “if people aren’t going to read it, it’s not going to help them form an opinion. And it’s not going to lead them to wanting to talk to you. Then you are losing a lot of benefits.”

For a quality blog that is different the test is this: Ask if someone would pay to hear you say this?

Blog content should avoid talking about what you do, and instead focus on how you do it. Good corporate blogs often invite debate, but Beerworth thinks doing this is rarely a good idea for small-and medium-sized companies because there is rarely a large enough community of people following that kind of business. Rather, for them he says, the blog should be used as a way of disseminating information.

“The strategy here should be to position yourself as a thought leader by commenting on breaking challenges and transactions in the industry and providing real benefit-driven content to users,” he says.

Big enough There is no such thing as a business that is too small to benefit from the social media phenomenon, but there might be practical impediments to small businesses if they are not committed.

With small-to medium-sized businesses struggling to do everything all the time, it is the smartest way to grow a business, says Beerworth.

“It produces the most qualified traffic in the most effective way. Somebody that types in ‘Sydney broker’ wants a Sydney broker, and if you are there talking about fixed versus variable interest rates for example, and giving commentary, then you are going to stand out as the person to contact,” he adds.

The real issue is not whether the small-or medium-sized business would do well from having a blog on its website, but is whether or not it can maintain it.

‘In fact, it is small businesses who reap the most benefits.” CMP

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News Analysis

hst the

and the

real estate market We are now past the dreaded July 1st deadline and HST is no longer a concept but a reality for people living in B.C. and Ontario. There was much angst and worry that the advent of the new harmonized sales tax in both provinces, when combined with rising interest rates, would lead to a dramatic slowdown in our housing markets. Peter Kinch examines the aftermath of the tax and predicts the long-term outcome

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s of July 1st, when HST came into effect, interest rates were on the rise and sure enough, the real estate market came to a grinding halt compared to the headier days of spring. The real question is; ‘how much of the current market conditions are a factor of HST and how much of the current market is due to rising rates and misleading headlines?’

What happened?

Let’s take a look at some of the facts and put a little perspective on this. It was just over a year ago that the entire global economy was on the brink of collapse. It was feared that the global recession would turn into the next depression.

Everyone you spoke to was quick to tell you about how much they had already lost in their home, and one actually sold their home at a loss.

Everywhere you turned the message was one of doom and gloom. And how did governments around the globe react? They started spending

News

Analysis

money and, at the same time, tried to get consumers to do the same. The end result was that the economies in every country in the world experienced deficits. The other result was record low interest rates.

Now let’s look at Canada in particular. First of all, the country had one of the strongest economies going into the recession but we were not immune to global economic influences.

However, since homeowners and businesses were not significantly overleveraged, Canadians were able to take full advantage of record low interest rates. We started spending and spending in a way that surprised even the most optimistic of economists. In fact, by the end of 2009, the fears were no longer about recessions, but about another pending housing bubble. Prices in virtually every part of the country, and especially Vancouver and Toronto, had not only rebounded, but in some cases set new records.

This amazing rebound was in large part fuelled by two things: large government spending and record low interest rates. When you combine this, with the fact that Canada did not have a true fundamental reason for being propelled into a recession, it is easy to see how we were able to exit it so fast. However, all good things must come to an end. Record low interest rates, by definition have nowhere to go but up, and once the provincial governments realize they don’t need to keep spending their way out of the recession, they will need to find a way to pay for their newfound debt. And so, the governments of Ontario and B.C .are faced with the difficult task of trying to convince an unsympathetic public that a new harmonized sales tax is necessary to make up for the spending spree that got us out of the recession.

And this is where it gets interesting. The past spring was one of the strongest spring markets in recent history for the real estate industry. Why? Well, let’s think about it: • We are exiting a recession with strong economic fundamentals.

• Consumer confidence is strong.

• Canadians and Vancouverites in particular are feeling proud of their country/city following the Olympics.

• Interest rates are at record lows.

Take all of this and now add a spring market – which, by definition, is stronger than a winter or summer market. Also add the fact that consumers are being bombarded by the media with warnings about the tax hike. By adding the incentive to save money, Canada had one of its strongest spring markets in real estate history.

“ prices in virtually every part of the country, and especially Vancouver and Toronto, had not only rebounded, but in some cases set new records ” How will the HST affect real estate?

The answer is twofold. On the one hand, the advent of HST will have very little real impact on the real estate markets and home values, namely because the new tax is only applied to new homes over $525,000. The sales of existing homes, which make up a far greater percentage of the market, will not be greatly and we will begin to see very creative measures by contractors and developers to help offset the real cost of the extra tax on new home sales.

However, from an emotional perspective the impact will be strong and unpredictable.

There were three reasons why the spring market was so strong: • Fear of rising rates • Fear of impending HST • It was a spring market The inference is that rising rates and HST will cause the market to slow down and, in some cases, that is exactly what appears to have happened. But let’s take a look at these fears and see what is really happening.

Rising rates Are rates going to go up? Of course they are. But, are they going to skyrocket - not exactly. The reason the Bank of Canada (BOC) lowered rates to historic levels in the first place was to get us spending and buying and it worked. We literally

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News Analysis

spent our way out of the recession. The reason for raising those rates is to keep a lid on inflation. The BOC has an inflation target of two per cent. When there’s concern that inflation may run past two per cent raising rates will keep it in check.

Currently, the Canadian economy is strong and will probably grow beyond the two per cent mark, which will justify a slight rise in rates.

However, just as we saw during the past two years, Canada’s economy is not immune to what goes on beyond its borders and is, in fact, largely dependent on the global economy.

The result: The BOC will raise rates slightly over the summer but be unable to continue to do so into the fall without risking an economic slowdown. Rates will rise – but not to the degree that matches people’s fears.

“ rates will rise – but not to the degree that matches people’s fears ” HST Many consumers in Ontario and B.C. rushed to get into the market before the HST came into effect. The truth is that the new tax – whether warranted or not, was not sold to the populace very effectively – especially in B.C. In fact, it caused confusion, anxiety and fear among consumers, and none of those emotions are conducive to building consumer confidence.

The reality is that the new tax should have a short-term impact on consumer spending but it won’t last. However, the emotional impact of the new tax will be much stronger and unpredictable.

The result: A population lacking consumer confidence and is uncertain will typically do nothing. The confusion, anxiety and fear, largely a result of poor education on the government’s part, will result in consumers holding off on large purchases until they see the real impact of the HST. The summer market Every real estate market has an ebb and flow and the spring is always busier than the summer. In fact it is quite natural for home

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sales to slow in the summer months simply because people are on holidays.

What should happen?

The reality is that the real estate markets in both B.C. and Ontario should see a slight softening over the course of the summer with prices coming off about three per cent from their spring peaks.

This may be slightly increased by the very real fact that interest rates will have risen another quarter point and the additional cost of the HST thus making real estate that much more expensive in what are already Canada’s most expensive markets and, therefore, that much more unaffordable. These prices should settle over the course of winter, only to rebound in the spring of 2011, once Canadians realize that HST is here to stay and they have adjusted to the new reality.

Fear and confusion will be replaced with knowledge and acceptance. They will see that rates have not risen as much as they feared and that even a full percentage higher is still very cheap money. And so, consumer confidence will rebound as it should and the spring of 2011 should recapture the losses of the fall and summer and the market will continue as it always has. That is what should happen.

What may happen?

We will have to wait and find out, but I can guess one thing. The headlines in papers all across the country will start comparing month over month comparisons showing the impact of HST and rising rates. Canadian consumers will see a drop in real estate prices and mistake, what is in fact a natural occurrence of the summer market, with the implementation of the HST and rising rates.

Fear and confusion will replace confidence and what should be a three per cent drop could be misinterpreted as a rebounding recession.

Canada has some of the strongest economic fundamentals in the world. We are the envy of the global banking community. Our real estate is very strong. We know that rates will have to rise, but we also know that they can’t go up too much too fast. We know that HST is now here. But we also know that we are resilient by nature, and although this will have an impact on the cost of housing, it is not as great as some would have us believe and we will learn to adjust. Here’s hoping knowledge replaces fear and that Canadian consumers recognize the difference between a summer market and a false recovery. CMP

Peter Kinch

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OF THE HERD

ONTARIO’S With Ontario’s new mortgage brokering legislation now in effect, not even two thirds of the province’s mortgage professionals were registered with the Financial Services Commission of Ontario (FSCO) by the July 1 deadline

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s of the Canada Day deadline, almost 3,300 mortgage agents from across Ontario found themselves in contravention of the new provincial act, putting themselves at risk for reprimand by the provincial regulator.

With an estimated 9,000+ agents in Ontario, this translates into approximately 37% who failed to hold approved licences by the deadline.

Ontario’s mortgage agents were bombarded with stern notifications CAAMP, IMBA and FSCO in June, enforcing the fact that, after July 1, mortgage agents not registered under the new Mortgage Brokerages, Lenders and Administrators Act 2006 are forbidden to practice in Ontario.

The low number was a surprise to some.

After all, the act was designed to improve the mortgage brokering profession by implementing educational requirements, mandatory errors and omissions insurance, and introduce a whole slew of other factors to ensure the safety of consumers and, consequently, improve customer confidence.

www.canadianmortgageprofessional.com

The fact that such a low number of agents took the steps to proactively stand behind it led some to believe that a large percentage of Ontario’s mortgage agent population didn’t care about the best interests of the industry. Others said there were a number of factors at play.

Agents being agents Up until a week before the deadline, Jeff Atlin, vice president and chair of government relations for IMBA, had only received a handful of queries regarding the new act. That number escalated in the week leading up to the mandatory changes – signifying that many mortgage agents weren’t apathetic, they were merely disorganized.

“It seems mortgage professionals tend to do things last minute – so, in many ways, it doesn’t surprise me,” he said. “On the other hand, I am surprised that there isn’t a stronger sense of urgency.”

While the lack of urgency might be disturbing, Phil McDowell, president of AMBA, said it’s not uncommon. Alberta

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relationship makers

All brokers need to organize their client contacts to keep in touch.

And every brokerage tries to provide its agents with the best. Heather Li explores the industry’s CRM programs

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he most important job of a mortgage broker is to build and maintain relationships with clients. With all the possible ways a broker can develop a lead now, from online to print campaigns to newspaper ads to referrals, the number of potential clients coming in can be overwhelming. This is where a CRM (customer relationship management) strategy comes in.

Generally, the concept is the same among brokerages: to provide an all-inclusive web-based program where a broker can store contacts in one place, sort them however they like, auto-fill personalized marketing campaigns and be linked to Filogix so agents can avoid double entry. Heather Li demoed most of the major CRM programs to get an insider’s look at how each brokerage has designed and packaged its own.

mortgagebrokernews.ca

Every brokerage likes to say its system is the best but the reality is each can be the best tool you’ll ever work with or the most frustrating. What it depends on is how much time you, as an agent, want to invest in learning, and take advantage of the training your brokerage provides because all the brokerages give tremendous support to their agents. You just have to ask!

To give you a better idea of what may work for you, the following pages offer an overview of each brokerage’s CRM system. You can compare the main components and see what kind of unique features each brokerage provided, according to its company philosophy.

But the best part about the CRMs is they’re about people. Just like any good relationship, brokerages are always looking to improve based on what their agents say they want.

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Centum + CRM program: The Centum Equity Builder + Built by: inContact Software Inc. + Launched: 2009

Contact database: The Centum Equity Builder has a two-way automated link with Filogix. Using your unique firm and ID codes in Expert, the Equity Builder can retroactively add all your past client broker transactions that were entered into Filogix but you may not have stored in a client database.

And because the platform syncs mortgage applications with your database, you don’t need to enter any information twice.

Mortgage applications: Since the Equity Builder is synced with Filogix, you have the option of filling out a mortgage application within the program and pushing it into Expert. Or if you prefer to fill it out in Filogix, the transaction will be automatically pulled into your client database. The Filogix fields are identical to Centum’s contact info fields.

Marketing campaigns: Because of all the fields available in the contact database, you can create narrow lists for target campaigns. For example, you can narrow down all your contacts born in September with a mortgage renewal coming up within three months. The Equity Builder has over 120 e-mail templates to choose from, including anniversary letters, rate sheets and promotional contests. You also have the ability to design your own and insert contact merge fields so it will automatically personalize the information. You can also create print campaigns, and the program will print your mailing labels as well.

Notifications: You can receive e-mail notifications that a client’s renewal date is approaching—or any other kind of notifications you want to create. The Equity Builder will then offer an e-mail template that is automatically filled with yours and the client’s information. You just hit send.

More contact features: If you were storing your contacts in another program such as Outlook, you can export the information into an Excel file and import it into the Equity Builder so now your contacts are managed in one place.

What else is provided: Centum has developed an advanced sales mentoring video and a social media sales mentoring video to teach the proven techniques that generate leads. “If you look at an agent’s job, most of their time is spent on getting leads. That’s what they do every single day,” says Bill Jamieson, Centum’s vice-president of operations. “These videos show them how to market to a lead and turn those leads into a client.”

Mortgage Alliance + CRM program: MortgageBOSS (Broker Originator Software Solutions) + Built by: Mortgage Alliance, in-house + Launched: End of 2007

Contact database: BOSS is synced with Filogix so mortgage applications can be entered in either system then pushed to the other to avoid double entry. BOSS is a fully integrated system that works in a hierarchical structure. If you are a regional manager or a franchise owner with agents working under you, you can see their contact lists.

Mortgage applications: Since BOSS is synced with Filogix, you can fill out a mortgage application within the program and push it into Expert. Or you can fill it out in Filogix, and the transaction will be automatically pulled into your client database. “We believe that the application is just a part of the relationship with the client, built over a lifetime,” says Michael Beckette, Mortgage Alliance president. You can also flag and see what stage a deal is in from in progress, to approved, to closed.

More contact features: In the individual contact view, there is an icon where you can begin to create a deal from the client information.

Marketing campaigns: BOSS allows you to create contact lists based on any selection of fields and More filters. You can select provided e-mail and mail merge templates that will automatically fill the information for personalization.

Integrated system: Within BOSS, once a deal is complete, you can submit it to head office for

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More contact features: If you were storing your contacts in another format such as Excel or Word, and even Mortgage Alliance’s BOSS or from Filogix’s Expert, Axiom’s SmartCRM will map the data perfectly to your new client database.

Mortgage applications: As you fill out the application, the program intuitively figures out whether you need more fields based on what you entered in the preceding field. “It’s very approachable and unintimidating,” says Gordon Ross, Axiom partner. Also, if there is an error in one of the fields, such as a missing digit or character in the postal code, the field will be highlighted in red when you move to the next one.

This way, you know as you go along if something is wrong rather than waiting till the end when you click submit.

Why it isn’t synced: Axiom does not automate syncing with Filogix because sometimes an agent may not necessarily want to change the information in Expert. “What if you were playing auditing, and the system provides a checklist of the around with an application?” says Ross. “Testing required documents that need to be attached before what a co-applicant would look like or something you can hit enter. BOSS also includes a balance like that. You wouldn’t want it to sync with statement tool, payroll record, “We designed BOSS Expert because it’ll wipe out the old data.” But you to be business-in-a-box,” says Beckette. can push an application into Expert when you “Everything you need is in one spot, and you’re choose to. seeing everything in real time.”

Marketing campaign: Agents can enrol their clients Notifications: You can receive e-mail notifications in the SmartTouch campaign where everything is that a client’s renewal date is approaching—or any done for you and it is customized with a broker’s other kind of notifications you want to create. information so it looks like it’s coming directly from you. E-newsletters are sent out once a month to all What else is provided: Mortgage Alliance has also the clients in the database. “Axiom has a staff created an offline mortgage application program copywriter who creates original, compelling launched in January 2010 that is in a test phase. If material,” says Ross. “They are presented in brokers don’t have Internet access, this program bite-sized, succinct, paragraph-deep news snippets sits on their desktop and saves applications offline. that can be expanded if the person wants to Once you are connected to the Internet, the read more.” program can go online and submit the info to Filogix, where because of BOSS’s syncing process, More marketing strategies: Info sheets are sent the client info will be automatically pulled into out that may compare the current rate versus the your BOSS contact database. market rate, and is filled in with how much money a client could possibly be saving. “This is intended to encourage dialogue with the broker and strengthen that relationship,” says Ross. Axiom Axiom also tries to design original campaigns that will have a more lasting impact on a client. For + CRM program: SmartWorks example, it recently sent out a three-page postcard shaped as a teabag to the clients with tea affixed, + Built by: Axiom, in-house and inside it read: “In the time it would take you to + Launched: Beginning of 2006 enjoy a cup of tea, you could have reviewed your mortgage and saved thousands of dollars.”

Contact database: Axiom provides an online application code that can be inserted on your What else is provided: Axiom has different design website or a referrer’s site, such as a Realtor. skins available for a client’s personal profile that is Whenever someone fills out the application, all the attached to your website. The Google logo that information automatically comes into the Axiom changes every day above its search engine inspired SmartApplications CRM function. This way you Axiom to create special profile layouts that change can contact the lead and fill in any other More depending on a significant occasion happening, information that the person may have left out. such as St. Patrick’s Day or Halloween.

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Verico

RMA

+ CRM program: Microsoft Outlook Add-In for Verico CRM

+ CRM program: inContact CRM Central + Built by: inContact Software Inc.

+ Built by: Verico with a Microsoft technology expert + Launched: September 2009

Contact database: Instead of creating a brand new system, Verico found that since most people already use and organize everything in Outlook, it would create a special Verico CRM toolbar to add to the popular Microsoft organizer. “We’re not trying to be better than another software company,” says Sean Widdess, Verico’s national sales manager. “Instead we wanted to ‘mortgagize’ what everyone already uses.” Once the toolbar is installed, an agent can go into Filogix and export its application information into a file on your desktop. That file can then be imported into your Outlook contact database where the Verico Add-In has created More columns to fit the extra mortgage fields.

More contact features: Since your Outlook contact database now has the extra mortgage fields, you can filter and create lists based on relevant mortgage information.

Marketing campaign: Verico has custom-designed templates, newsletters and website available. “But we are not a superbrokerage. We are a group of independents,” says Widdess. “So we leave it up to the brokers to use what they want.” The creation of mortgage fields within Outlook means you can merge those fields into any mail or e-mail campaign you want, and it’ll automatically fill in for personalization.

What else is provided: Verico has found more brokers want automated marketing campaigns. So, for the future, Verico is planning to initiate a CRM program where an agent can send head office a contact database, and it will send out all the marketing initiatives on the agent’s behalf but still make it look like it’s coming straight from the broker.

Marketing campaign: RMA brokers operate completely independent and use whatever contact database they choose. For marketing, RMA head office has created a customized campaign with inContact. So if a broker chooses to use the done-for-you CRM Central, inContact will retrieve all your clients’ information from Filogix and run a five-year automated marketing campaign for you. The client receives various notices a year including a mortgage anniversary letter, a birthday card, a spring and fall newsletter and a calendar.

More marketing: At the end of every month, inContact connects with Filogix to pull any new client information. It will then send you a notification, and ask if you want to enrol the clients in the automated campaign. If the broker responds yes, an invoice is sent to you and your client will begin receiving various marketing materials with your information on it.

Mortgage Architects + CRM program: Client Monitor + Built by: Mortgage Architects, in-house + Launching: September 2010

Contact database: Client Monitor will automatically receive web mortgage applications into its database, where a broker can enter additional information about the client that focuses more on the person and the relationship.

Client Monitor will also automatically and retroactively retrieve customer data from Filogix, including the status of the deal, so a broker can revisit forgotten leads and incomplete applications.

More contact features: If you have an old customer database you want to insert into Client Monitor, if you are not tech savvy, you do not have to worry about doing it yourself.

Instead, you will just send it to head office and the database will be imported for you.

Mortgage applications: When Client Monitor retrieves the applications from Filogix, it matches the information with any existing customers in the database so there isn’t a duplicate file. For any unmatched files, it

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Dominion Lending Centres + CRM program: AutoPilot Media + Built by: iMambo and propriety rights purchased

by DLC + Launched: 2007

Contact database: Within AutoPilot Media, your contacts are stored in an address book either by entering it manually or importing an existing database. Client information is also automatically uploaded from any online mortgage application tool you have set up.

From this address book, any type of list can be created based on the fields that are filtered for customized e-campaigns.

appears as a new client. The dashboard is organized so you take care of your work list first, then try to follow up with any incomplete applications (“new clients”) and manage your completed applications through the approving process. Applications can be directly submitted to Filogix through Client Monitor.

Marketing campaign: Each client belongs in a “bucket,” such as first-time homebuyer, equity rich, retiring and challenged credit. This way relevant educating material is sent to each specific group. “We believe in a customer-centric approach over a deal-centric attitude,” says Alice Chan, Mortgage Architects senior vicepresident. “Everything revolves around the customer.”

More marketing strategies: Mortgage Architects has an in-house auto-marketing campaign that includes a thank-you card, seasonal postcards, e-cards, a twice-yearly newsletter and a threeyear subscription to the quarterly Style at Home magazine with a “compliments of” label on the front cover.

What brokers said: “Every time a CRM mailing goes out, we notice a spike in business. We were off CRM for approximately nine months and believe it cost us over $10 million in business.”

–Rose Baldin, Oakville, Ont.

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Marketing campaigns: At DLC, the company philosophy is that print campaigns will no longer exist and that its brokers believe in the green movement of being paper-free. So every brokers’ clients, through AutoPilot Media is enrolled in an automated e-campaign where each person receives an updated rate sheet every two weeks and an e-newsletter on the first of every month. DLC’s director of public relations and communications Cindy Freiman (who is also the former editor of CMP magazine) personally creates the original

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content for the newsletter, which also features a button to automatically translate the content from English to French.

More marketing: On every DLC broker’s personal website, there is a media player on the home page that features a video of the broker, contact info, a subscribe to newsletter or forward to a friend option and a request literature feature. When a user fills out the request literature information, she is sent all mortgage information to her e-mail at any time of day and it looks like it’s coming directly from the broker.

Extra feature: In AutoPilot Media, a broker can see all the e-campaigns that were sent out and what happened to each one, including whether it was read, deleted or the e-mail address does not exist anymore. “Our brokers love this because they can see how effective the material is and if it’s hitting the right people,” says Kevin Cochran, DLC regional director based in Toronto.

Complementary tool: AutoPilot Media is embedded in the personal website management system. All DLC brokers own their domain names.

Mortgage applications: Currently, AutoPilot Media is not linked with Filogix but a new CRM is being designed that will automate a seamless connection to the broker’s Expert data, and synchronize deals every two hours.

What else is coming up: DLC’s new CRM will have pre-built set of reports based on their Expert data to monitor relevant information, such as “Closings This Month” and “PreApprovals Expiring This Month.”

What brokers said: “Every time the AutoPilot Newsletter goes out, I get at least 15 phone calls or e-mails with questions that result in referrals. I guarantee I have at least two more funded deals per month as a result of the

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Cover CRMS

ongoing communication to all my clients and business partners.” –Claire Drage, DLC Home Capital Solutions

The Mortgage Group + CRM program: The Mortgage Group Dashboard + Built by: The Mortgage Group, in-house + Launched: Ongoing improvements

Contact database: A client manager within the customized broker websites allows you to create multiple client lists for any customized e-campaigns you want to send out.

Marketing campaign: There are pre-designed marketing letters available that are filled with the necessary information, whether it’s your own, the client’s or both. Marketing letters are

built so that you can edit the text and add your contact info. Marketing Fact Sheets are templates with the ability to add your contact information. There are letters also targeting your referral sources. “The idea is to touch your whole sphere of influence, not just the clients,” says Mark Kerzner, TMG’s president and chief operating officer.

More marketing strategies: In-house predesigned newspaper ads and three-fold brochures are available and are in legal compliance with the company. It simply requires your photo and contact information to be filled in, and the finished product is ready in a few seconds. If you wanted to, there are designers on hand to create a custom ad with you. There is also an automated CRM program in place where you can enrol your clients for print letters, where they will receive seven touches every year for five years.

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Cover CRMS

Invis and Mortgage Intelligence + CRM program: To be named + Built by: NetSuite with Invis-MI + Launched: August 2010

Applicant database: The data is pulled from Expert every two hours and files all applications under the respective applicant name, so a client is not receiving multiples of the same e-mail or print campaigns. Also, the way the applicant view is set up, all applications can be managed plus additional profile information can be added that is more focused around building the relationship with the client.

More applicant features: Every piece of information on the mortgage application is set up on a special search page so you can narrow down exactly what you are looking for. The detailed searches can be saved under a name the agent creates for future reference.

And more marketing: A media player can be purchased to attach to your e-mail signature, e-newsletter or website. The player includes your personal video, where TMG’s professional camera crew comes to you and films your video. The video is uploaded to the media player, and it also features a “request literature” option so any inquiring users can automatically receive mortgage information from the broker almost immediately.

Dashboard features: The Mortgage Group believes a great CRM begins with great education and training for the broker. The dashboard includes global news, mortgage tips, videos with guest lenders and Realtors that are broadcasted live on Thursdays and archived for reference, and an online library with lender information, such as underwriting guidelines, for easy access.

Help and support: TMG’s dashboard includes a chat room for instant help and resourcing from one another across the country online. There are also internal forums on various mortgage topics for brokers to discuss and answer one another’s questions, and can even go as broad as suggesting what books are good to read. “It’s a peer-to-peer community,” says Kerzner.

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Dashboard features: The global search bar mines the entire program so, for example, if you are looking for an applicant name, you don’t need to go into the applicant tab to search for it. The help bar also instinctively knows where you are in the program. If you are working on an e-mail template and type searching into Help, it will automatically pull up help guides for e-mail templates. You can still search for help guides outside the designated area you are in, but this intuitive system increases efficiency.

More dashboard features: The home page can be customized to whatever an agent prefers. All tools can be moved around and any colour scheme can be selected. There is also a calendar provided within the dash so an agent can view all upcoming activities.

Marketing campaign: With this CRM program, applicants can be grouped however an agent desires so targeted e-mail or print campaigns can be sent appropriately.

More marketing strategies: Invis-MI provides a corporately fulfilled, automated e-mail and paper campaign to agents’ clients if they choose to purchase the package. It is designed completely within house.

What else is provided: Your contacts, calendars, e-mails and tasks can all by synced to Microsoft Outlook so whenever you send an e-mail from the CRM, it will show up in Outlook, and vice versa. Your personal website can also be managed from the CRM dashboard so you do not have to go to multiple sites to take care of your multiple business needs. CMP

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NICHE SERIES First-time Buyers

Over the next few months CMP magazine will explore a variety of niche markets and how mortgage professionals can work within these areas to increase their business. This month we focus on first-time homebuyers. In a recent Canadian Real Estate Association survey, 41 per cent of homebuyers in 2010 and 2011 are first-timers. Nick Lypaczewski spoke to a few brokers to find out what is the most effective way to reach and work with this market

Guiding the

first-time homebuyer will create clients for life Sharon Vander Duim

Mortgage Broker, Dominion Lending Centres, Bowmanville, Ont.

CMP: How does a broker’s approach with a first-time homebuyer differ from a broker dealing with someone with home-buying experience?

I think you really need to take your time to understand what you’re doing for a customer. A lot of people will listen to their friends and families who don’t have the proper information. Brokers need to make sure their customers make an educated buying decision by taking time to explain the process and quelling their fears - walk them through the transaction from start to finish and after the transaction closes.

CMP: What are some of the problems brokers face when dealing with first-time home-buyers?

Sometimes customers try to purchase too high – it’s the home they want but they really can’t afford it. Or they lack the down payment. The client jumps ahead and gets overexcited and gets emotionally attached to the property before doing the financing part. The others will over-think the situation and analyze it too much because they’re too afraid and then wait too long.

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CMP: What tips can you offer brokers to get first-timers through the process?

Take the time with them and be available. Put the details in writing so that they understand what they’ve got. Meet with them about all the closing costs to prevent unwelcome surprises. Have a complete file upfront so you’re not stressing out clients at the end of the deal. Walk them through the process and be there for them for any type of question they’ve got about their house.

CMP: How would you recommend a new broker who’s trying to cater exclusively to first-timers go about doing so?

Advertise through social media such as Facebook where the young people are doing their business.

Young people are their own community, they talk and they refer. Hit the clients in that age group where they operate.

CMP: What are some of the problems consumers experience when buying their first home?

Sometimes people don’t look at realistic price ranges. Clients build pricing fixations in their mind by setting a cap on what they want to spend, but by educating clients and telling them what they

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NICHE SERIES

First-time Buyers

service your client and stay in touch with them because their needs are changing constantly.

the 2010 mortgage consumer survey

CMP: How do you market to first-time homebuyers?

• A large proportion of first-time homebuyers research terms and conditions (84 per cent), compare the costs of different interest rate scenarios (71 per cent) and check for competitive interest rates (65 per cent).

Make sure you emphasize that you’re a specialist in that area. Offer seminars or information sessions. Put them on your mailing list. There are all kinds of marketing information you can send them. I love first-time homebuyers and you get a lot of referrals for their friends.

• First-time buyers consult a great deal with various third parties and mortgage professionals prior to obtaining their mortgage. They consult with mortgage lenders (59 per cent), family and friends (58 per cent), mortgage brokers (48 per cent) and real estate agents (44 per cent) for advice.

• More than three-quarters of first-time buyers reported they received advice on mortgage terms and conditions, as well as whether to take a variable- or fixed-interest rate.

• First-time buyers also report that mortgage brokers and mortgage lenders are more influential to their mortgage purchases.

• Ninety per cent of first-timers feel that they made their mortgage decision with a good understanding of the mortgage options available to them, • Eighty-five per cent said they had a good understanding of how much mortgage they could afford before buying, and 75 per cent feel that the process of getting their mortgage was easy and straightforward.

• Just under half (46 per cent) of first-time buyers took out their mortgage with the institution they were dealing with at the time while 58 per cent of repeat buyers did not change lenders when obtaining their most recent mortgage.

• Almost 90 per cent used the Internet to search for information on mortgage options.

Released in April, 2010 by the CMHC

can really qualify for and afford, you can offer them a wider range of options. I really think that buyer education is key.

CMP: How can brokers ease any fears a first-time homebuyer may be feeling?

Meet them face to face. Put the numbers into plain and simple language so they can be read and understood. Be there for them as soon as any questions arise.

CMP: How can a broker turn a first-time homebuyer into a lifetime client?

Keep in contact with the client and provide an annual checkup on their mortgage product because their lifestyle will change over time. Update your client’s information and remain a part of their financial plan. Taking out a mortgage today and not talking or reviewing with the client for five years is a thing of the past; you really need to

Bob Donaldson

Mortgage Associate, Invis, Medicine Hat, Alta.

CMP: How does a broker’s approach with a firsttime homebuyer differ from a broker dealing with someone with home-buying experience?

I think the broker has to explain a lot more and help the client understand a lot more to get past the myths of loans and mortgages into the real truths of loans and mortgages. Constant communication and letting the client know that they’re not on their own versus a third- or fourth-time homebuyer kind who likes to do their own thing and get it over with. The first-time homebuyer likes to have a lot of communication with their broker.

CMP: What are some of the problems brokers face when dealing with first-time home-buyers?

I would go back to the myths. Explaining to them what the truths are about the mortgages and how your credit works, how things affect your credit. You have to start from the beginning, explaining to them their credit reports, their assets and their liabilities.

Sometimes they’ll come in thinking they can get a mortgage with just a smile and a handshake.

CMP: What tips can you offer brokers to get first-timers through the process?

Give as much information as possible in the most clear and concise way. Give them tips, give them websites. I have a blog myself to help first-time homebuyers, so they can read the blog, get some tips from there, they can give me a call.

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NICHE SERIES First-time Buyers

BMO survey • First-time home-buying men (44 per cent) are more likely than women (28 per cent) to consider a fixed-rate mortgage • Sixteen per cent of first-time home-buying men, compared to only eight per cent of women reported that they have been caught up in a bidding war • Seventy per cent of men say they are more likely to consider offering more for a home based on its location, compared to 57 per cent of women

I have an e-letter as well. Keep yourself infront of them all the time, even after they’ve bought their place, always keep in contact.

CMP: How would you recommend a new broker who’s trying to cater exclusively to firsttimers go about doing so?

Be out there in the community; don’t hang out in your office. Go out to the barbecues, the community events and the parades. Be available for these new homebuyers. Send out some newsletters to the condos and apartment buildings around town and offer first-time homebuyer seminars.

CMP: What are some of the problems consumers experience when buying their first home?

Their credit might not be as established as the banks would like. The banks like a high credit rating but they like to see trade lines, which are your credit cards and things like that.

Sometimes a client comes with a beautiful credit score but they only have one credit card and they’ve only had it for six months. The banks want to see some stability there for credit. Additionally, with all these new rules implemented in April, they have to qualify at a higher rate than what they’re actually going to be getting. Someone could be getting a 3.75 per cent rate but they’ve got to qualify at almost six per cent and that can be a challenge too with the debt ratios.

CMP: How can brokers ease any fears a first-time homebuyer may be feeling?

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Communication. Listen to the consumer, listen to their concerns. If a broker comes in thinking they know everything and can settle them down, it might not be very effective. The best thing to do is just to close your mouth and listen to the concerns of the buyer. After they’ve talked, you can talk your way through the process. Everyone is different, so it’s a matter of hearing them and dealing with their issues one on one.

CMP: How can a broker turn a first-time homebuyer into a lifetime client?

Followup is a beautiful tool. Constantly keep in contact, call the client or send a “thinking of you” card on the anniversary of their mortgage. By the time they get that five times in a row, the fifth year they’re going to be calling you. Keep in contact with your articles or your blogs and even send a birthday card.

CMP: How do you market to first-time homebuyers?

Teaming up with a Realtor who deals with a lot of first-time homebuyers is helpful. You can do open houses with these Realtors where you can pre-qualify people coming through. If you’re in a team, that helps out a little bit more too, especially with referrals. And, of course, find a way into the magazines and newspapers so your name is constantly out there.

Lou Salveno

President, VERICO The Financial Forum Ltd., Vaughan, Ontario

CMP: How does a broker’s approach with a first-time homebuyer differ from a broker dealing with someone with home-buying experience?

Essentially, from my perspective, when I’m dealing with a first-time buyer I like to walk them through the entire process, from beginning to end, the whole real estate/mortgage cycle.

Generally what we do is start with an inquiry with the client.

CMP: What are some of the problems brokers face when dealing with first-time home-buyers?

Personally, I like dealing with first-time homebuyers. The first-time buyer will generally be more excited to be approved and are generally more willing to listen to your advice because they’re unspoiled. You don’t have to teach an old

NICHE SERIES

First-time Buyers

dog new tricks. They understand that you’re a professional and you’re trying to guide them in the right direction for the greater good of the deal and for the greater good of themselves and their future.

CMP: What tips can you offer brokers to get first-timers through the process?

Just know your products, know your lenders and know, not just the mortgage process, but the entire closing process. Because your clients, especially first-time buyers, are going to rely on you more than anybody else in the transaction to guide them. You, as the mortgage broker, are the go-to guy for all the advice that’s required.

The lawyer is obviously very knowledgeable, as would be a real estate agent, but I think the mortgage broker has to be the quarterback of the transaction.

CMP: How would you recommend a new broker who’s trying to cater exclusively to first-timers go about doing so?

He would have to put himself out in the market as somebody who is knowledgeable in that market and who, again, is not selling them a mortgage so much as being able to provide the client with a service and that service is: “I’m going to be your liaison between your lender, your lawyer and your real estate agent. I’m going to walk you through this entire mortgage cycle.” It’s not about the best rate, it’s about the best professional advice and courtesy you can provide the client.

CMP: What are some of the problems consumers experience when buying their first home?

There could be credit problems, there could be income problems and there could be downpayment problems. Those are the three branches that I see and everything else is leaves of those branches; they’re kind of variations of those issues.

CMP: How can brokers ease any fears a first-time homebuyer may be feeling?

In my case it’s a little easier because we have so many years of experience and we’ve assisted thousands of first-time buyers over the years. For somebody who’s new to the market, basically, ease their fears by explaining to them all of the benefits that are available to first-time buyers and all of the information and data that’s available to help them understand the process. Once you’re in the circle it’s not as difficult to buy a house as it is when you’re outside of the circle.

CMP: How can a broker turn a first-time homebuyer into a lifetime client?

Treat them well and gain their respect. Make yourself the go-to person for all of their financial advice. So when they’re looking for anything to do with financing, be it a loan or any type of investment in the future they will know that you’re the guy to call. You have to create an ongoing marketing plan, you have to touch base with your clients on an ongoing basis whether it be electronically or by written material, or by telephone or in-person meeting. You have to keep in contact with your client, that’s a must. CMP

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SPECIAL FOCUS Lead Generation

Spend mo

to make m

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oney to

SPECIAL FOCUS

Lead Generation

money

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SPECIAL FOCUS Lead Generation

With it growing increasingly difficult to generate a reliable flow of leads through referral networks, in Australia even established brokers are purchasing leads from lead providers. Our sister publication in Australia asked those in the know how to buy business without breaking the bank

T

here are as many ways to buy a lead as there are to skin a cat. Unless it is likely to convert into an application the lead may cost far more than it’s worth.

And while buying leads is a good way to bring business through the door, according to Dr. Adir Shiffman, CEO at Miston Holdings, host to the website Helpmechoose.com.au and Mortgageleadsaustralia.com.au, the golden rule in this business is: the more reliable the lead provider, the more reliable the lead.

“While better lead providers provide everything from financial history to the purchasing timeframe of the lead, there are still a lot of unscrupulous operators out there. These operators will ask consumers to fill out a form with the consumer thinking they are getting one thing, but what actually happens is their details are sold to a broker,” he says.

He says brokers must assess what the lead is worth based on the information it provides. “The importance of the data is actually increasing in the current economy on account of the tightening lending criteria. Getting a lead, for example, for the first-time homebuyer with no deposit and no savings is useless to a broker today,” Shiffman says.

“ while better lead providers provide everything from financial history to the purchasing time frame of the lead, there are still a lot of unscrupulous operators out there ” Do the math First up, Shiffman says, ask yourself what you think a reasonable amount of money is to pay for closing an approved loan application. Then work backwards from there. “A broker might say, ‘I think $500 or $700 is appropriate, given that I might make $2,000 in upfront commission, plus a trail.’”

The arithmetic will go like this: how many applications to get an appointment; how many applications to get an approval. And then the broker can work out an appropriate amount of money to invest in those leads.

“Understand that better leads cost more, but you’ll need less of them to work back to that $700 budget for one sale.”

While lead providers charge up to $400 for a firm appointment, normally the cost of a lead ranges from $25 to $70 depending on the nature of it and its likelihood of closing.

Value for money Differential pricing occurs mainly for two reasons. Shiffman says brokers should expect to pay more for leads that have a higher likelihood of closing, and more still for the ones that will result in substantial commission income when they do.

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SPECIAL FOCUS

Lead Generation

For instance, he says the most expensive leads are for people looking to refinance since they tend to close very well. “Generally, they have an existing credit line with the bank, and no issues with things like deposits and credit approval,” he says.

The other extreme is the first homebuyer with a small, or zero, deposit.”It will take more of these leads in order to get a closed application.

And the value of that loan and therefore the commission that is going to be earned is likely to be lower,” he adds.

Andrew Clark, CEO of Financial Services Online, says you never really know for sure what a lead will be worth until you get your hands on it.

But what he does know for sure is that one lead can have a differing value – depending on whose hands it finally does land up in. “The small operator is going to do better with the

“ always monitor your conversion rates as well as the quality of the leads that you receive to be sure of the true value to your business ” leads than the big aggregator because the closer the broker is to the person who pays the bill the better the result will be,” he says.

Clark agrees with Shiffman that brokers must be able to look at the form that people are filling out to qualify the lead before agreeing to buy it. “I am aware that there are some organizations that are simply asking people to complete a calculator which asks them how much they can afford to buy.”

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SPECIAL FOCUS Lead Generation

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New business, new blood There may be lots of ways to do it, but when business is tight there is a high premium on being able to generate new business.

Clark says relying on your own network for referral business gives you more control, but outsourcing it will deliver better results every time – as long as it’s done correctly.

Peter Green, a broker who set up lead generator Property Match Up, agrees with Clark’s assessment and adds that brokers generally rely on leads from two primary sources: referral partners and client referrals.

“But there are times when these leads can run low or even dry up.”

Furthermore, he adds that no matter how well brokers take care of their lead generation activity, it remains the lifeblood of any brokering business. Brokers are particularly vulnerable to a slowdown after a boom period as all their time is taken up with client meetings, so prospecting is neglected as a result.

“But by using a professional lead generation service, brokers can control their activity levels, so that could mean bolstering enquiry levels when referral activity drops off or otherwise increasing enquiry levels when a broker is looking to grow their business,” says Green.

“ but by using a professional lead generation service, brokers can control their activity levels, so that could mean bolstering enquiry levels when referral activity drops off or otherwise increasing enquiry levels when a broker is looking to grow their business ”

Eyes wide open Green adds that a number of options exist out there for brokers but you need to have your wits about you before signing on the dotted line.

Some agreements may offer their brokers leads either for a fee or for reduced commission.

Leads can also be bought from a number of lead generations companies

In the beginning Leads are usually generated according to three different categories.

Shiffman says the oldest and most traditional way of getting a lead is via referral – typically from either professional service providers or from real estate agents.

“We’re seeing that in this market any real estate agent of any real significance has a relationship with a broker, and is providing those leads to a mortgage broker,” he says.

The second comes from call centres set up to cold call consumers. What they are trying to do in most cases is set an appointment for a mortgage broker to come and see them – and then they’ll sell that appointment.

In the third category, leads are typically generated online where a consumer comes to a website looking for information about mortgages. “The website provides info about mortgages, and in return they generate a lead, which is then sold.” CMP

mortgagebrokernews.ca

on a fee-per-lead basis, but just be careful, Green says, not to let the fees get out of control.

“Sometimes the fees can be hundreds, even thousands of dollars once you take into consideration all associated costs,” he says.

Also, if you are paying for leads but not converting them it will effectively reduce the return on the leads that do end up as settled loans. To this end, Green’s advice is: “always monitor your conversion rates as well as the quality of the leads that you receive to be sure of the true value to your business.”

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Business Marketing

7

secrets

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for converting more leads into closed deals

Business

Marketing

What would happen to your income if you were able to increase your lead to closed deal conversion rate by just a measly five per cent? Doren Aldana shows you how small increases can boost your income and offers tips on how to get going

L

et’s say your average commission is just $2,500 per deal. That five per cent increase in your conversion rate would give you an extra $12,500 for every 100 leads generated. If you averaged 50 leads per month that would pad your wallet with an extra $75,000 per year! And that’s just the beginning.

Imagine if you could increase your conversion rate by 10 per cent -- that’s an extra $25,000 per 100 leads!

As you can see, just a slight increase in your conversion rates can add tens of thousands to your bottom line. It’s the little hinge that can swing open big doors to big profits with little or no additional effort. The question is, what specific proven strategies and techniques can you use to dramatically boost your conversion rates?

With that in mind, let me start off by giving you some quick ‘n dirty answers to seven important lead conversion questions:

1. How can I make the initial contact and build trust and rapport with the prospect so they feel comfortable doing business with me?

Start off by reminding them of the initial action they took that prompted your followup. This will remove any faulty notion that your call is unsolicited. For example, you might say something like, “Hi Mr. Prospect, this is John Doe calling from ABC Mortgage. We received a call from you on May 25th requesting a copy of our free report called ‘15 Homebuyer Mistakes and How to Avoid Them.’ I just wanted to confirm your mailing address before I mail it out to you. Did you have a brief moment?

By the way, I’m just curious, what inspired you to request this report? Are you in the process of buying a home right now?”

By using the power of questions you will position yourself as a trusted adviser instead of a pushy salesperson –the first attracts the latter repels!

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

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Business Marketing

“ there are definitely some power questions you can ask that will allow you to quickly weed out the weenies and keep the keenies ” 2. What are the right questions to ask to quickly determine if the prospect is a real deal or just a shopper?

Unfortunately, there is no “silver bullet” that works every time in every situation. That said, there are definitely some power questions you can ask that will allow you to quickly weed out the weenies and keep the keenies. The first step is to identify their needs. Here are a few probing questions you may find useful: • I’m just curious, what was it that inspired you to call the hotline?

• Can you tell me a bit more about your situation?

• What is it you are trying to accomplish?

Once you’ve identified their needs, motivations and hot buttons, the next step is to qualify them using what I call the Basic Qualifying Question (BQQ). Here is the simple formula: If I could _______(insert key benefit) would you _________(insert call to action). For example, you might ask a first-time homebuyer something like: “If I could help you get preapproved with the best rates and terms available would you be open to taking five minutes right now to complete a quick application over the phone?” If they say no to that question, they just sorted themselves out. Next!

3. How can I convert rate shoppers into closed deals and still make money?

I love this question. It seems to insinuate the need to lower your profit margin in order to get the deal. Notice that? Ouch! Don’t make that mistake! I’ve got a much more profitable solution that allows you to keep your dignity intact.

First, you need to understand the difference between value and price. Simply put, price is what you pay, value is what you

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get. As a general rule people are willing to pay a higher price for higher value. The question is, “How do you attach more value to your offer?” It’s all about education! It’s up to you to expand your clients’ buying criteria beyond the myopic focus solely on rate. Here are some other key criteria you can educate them on: • Total cost analysis (total interest paid over entire term) • Mortgage freedom date (time required to pay debt).

• Flexibility, terms and conditions (i.e. pay-down options).

• Tax savings • Closing costs To put all of this into perspective, here’s a sample script from an interview I did with the master of overcoming rate objections, Dale Vermilin: ‘Mr. Jones, look, I don’t know yet if I can beat those rates or not because the fact of the matter is, I haven’t taken a complete application nor have my competitors yet. I haven’t appraised your property. Nor have my competitors yet. I have not looked at your title report and nor have my competitors yet. And I have not verified your income or your credit score or your credit or your debt, nor have my competitors.

The fact of the matter is all of us are giving you estimates right now that ultimately don’t mean anything at this point.

But let me just ask you this simple question (and here’s where you convert the lead): ‘Mr. Jones if I could show you how my loan program not only gives you a great rate but at the same time can show you a way to lower your payments while increasing your cash, while decreasing your taxes, while potentially reducing your term, helping you retire earlier with a free and clear home, saving you hundreds of thousands in interest and saving you thousands upfront –would you be willing to give me 10 or 15 minutes at no cost or obligation to show you how?’

I’ll make you a guarantee, nine out of 10 dollars they’re going to say to you: ‘Well, how can you do that?’ And you just got their captive attention to take an application. Now, here’s the beauty, I never quoted the rate. Why? Because the truth of the matter is I can’t quote the rate to borrow.

Business

Marketing

4. How do I stand out from every other agent out there and win the client’s business, even if they already have a lender?

It’s all about WOW factor. It’s all about doing the things most mortgage brokers aren’t willing to do. It’s not rocket science. Let me give you a few examples: • Do everything I’ve taught from questions No. 1 to No. 3.

• Mail a thank-you card upon initial inquiry.

No one does this.

• Send them small gifts enclosed with your mailings – i.e. Starbucks or Tim Hortons card, movie tickets, etc.

• Connect them to your “million-dollar Rolodex” of first-class vendors.

Just doing a few of these things will make you shine like the sun!

5. How can I get more leads pre-approved?

Get better at communicating the value of being pre-approved. If they’re shopping for a home and they’re not pre-approved, let them know why it’s important to get pre-approved.

Don’t leave it to chance. Furthermore, it’s got to be EEEEZY (sic). If you make your prospects battle through traffic and meet you in-person just to get pre-approved – that’s a tall order! It’s no wonder they’re not beating down your door. Make it easy and you’ll get more of them.

“ mail your prospects, clients and referral partners a monthly client newsletter. It should look homespun and filled with valuable content that is fun, timely and newsworthy ” Take as much info as you can by phone, fax, e-mail or online app. Heck, fill in the online app for them while you’re on the phone.

If you still want to meet with them in-person to solidify the relationship, have them come in

“ it’s all about WOW factor. It’s all about doing the things most mortgage brokers aren’t willing to do ” to pick up something of value like an “Ultimate Homebuyer Success Kit” or to show them some loan options or how to improve their credit.

6. How do I get the fence-sitters to commit to buying or refinancing?

Get them pre-approved so they can lock in these record low rates for up to 120 days. Use a $200-500 off closing costs coupon with a time stamped deadline for 90 days out. Deliver this to them by mail along with your thank-you card or one of your strategic letters. And of course, if they don’t have a good Realtor be sure to recommend one!

7. What’s the best, most effective way to systematically stay in touch with my prospects so I become their only logical choice for financing?

You probably won’t like this answer but it’s the only system I know of that really works.

Take it or leave it, here it is. Mail your prospects, clients and referral partners a monthly client newsletter. It should look homespun and filled with valuable content that is fun, timely and newsworthy.

If you really want to supercharge your results, send the best articles in your newsletter as individual e-mails once per week. “But Doren, won’t my clients consider this info overload?” Only if your content sucks!

If it’s useful, valuable, timely and it’s written in a friendly conversational tone, they’ll love you for it!

Since 2005, Doren Aldana has been dedicated to helping mortgage professionals attract more clients with less effort, regardless of market conditions. For more information visit: www. freereferralsecrets.com . CMP

mortgagebrokernews.ca

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profile PROVIDER

The country’s only 100-per-cent Canadian-owned private mortgage offers lenders a new alternative for mortgage insurance backed by the financial strength of its ownership group, the Ontario Teachers’ Pension Plan and National Mortgage Guaranty

Canada Guaranty:

the New Choice in Canadian Mortgage Insurance Providers

N

o one will dispute that competition is a good thing. On April 16, 2010, Ontario Teachers’ Pension Plan and National Mortgage Guaranty acquired AIG United Guaranty, maintaining a threehorse race for mortgage default insurance in Canada. Appreciating Andy Charles the new company’s financial strength and stability of its ownership group, many mortgage professionals and lenders expressed their support for the launch of Canada Guaranty, currently the only Canadian-owned private mortgage insurer.

“We could not have asked for a better outcome.

The support of Ontario Teachers’ Pension Plan and National Mortgage Guaranty provides our company with the necessary Canadian financial strength, diversification and commitment to the industry, which makes our future prospects very bright,” says Andy Charles, president and CEO of Canada Guaranty. “Much of the company’s strength is derived from the team’s experience since entering the market in November 2006.”

It is the combination of Canada Guaranty’s experience and its 100-per-cent Canadian ownership that provides additional strength by insulating the company from potential future financial problems happening elsewhere in the world.

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“When you consider the impact of the recent financial crisis, Canada faired very well. One can appreciate, then, the value and importance of having established Canadian ownership going forward,” says Charles.

How will Canada Guaranty differentiate itself among competitors in the market?

“Service excellence,” says Charles. “As you increase competition, you need a mortgage insurance company that works hard to earn the business, so we need to come at it from a different perspective. We have to ensure that we’re designing good, sustainable products, and we need to make sure that our whole team is focused on customer service excellence,” he says.

Part of that competition starts with offering unique services, such as Canada Guaranty’s National Underwriting Centre. Instead of leaving lenders to manoeuvre through an automated phone directory, lenders have direct access to underwriters who can make decisions and immediately respond to the deal at hand.

“Busy professionals don’t have the luxury of time in today’s fast-paced environment,” says Charles. “We’re aware of the demands on today’s mortgage originators and are constantly looking for new ways to provide essential product and underwriting information in a convenient and easily accessible format. Our mobile tools feature provides mortgage professionals with the essential information right at their fingertips, which is another example of how we are taking mortgage insurance and making it better.” CMP

Profile

Insight

From the military to mortgages For a man who spent his career in the military, moving into mortgages was a leap of faith. CMP talks to Shawn Selanders about this career move

A

fter a career in the military that took him across the globe, Shawn Selanders, broker and owner of Dominion Lending Centres the FIRM, wanted a change.

After delving into land speculation, Selanders decided to pursue a career with daily self-fulfillment and more social aspects. While he has been primarily focused on residential and rental financing, Selanders has carved himself a larger presence in lending private funds for all real estate ventures. CMP caught up with Selanders and asked him a few questions about his drastic career change and brokering

CMP: What led you to such a different career path?

I was in the military for seven years and then got into land surveying. From there, I started up a real estate company with my wife. What I wanted to do was get into a job that was a little more sociable, getting out and seeing people, helping them do different things.

Brokering seemed to be the job; I met a few mortgage brokers and they seemed fantastic.

CMP: What was your job in the military?

Long and short of it, I was with the artillery but I branched out into weapons specialist and instructor, training guys with previous experience. I was stationed primarily in Canada but I’ve travelled throughout Canada, the United States and Europe with the military.

Shawn Selanders

CMP: What was your rank?

I was Master Corporal.

CMP: Did the military provide you with any tools that help you as a broker?

They teach you how to focus on certain things, how to handle situations and how to work with people, obviously. They’re not much for shooting a gun here in the broker office. For the most part, it’s dealing with people. In the military, what you’re taught, as an instructor, is to break a person down to build them up, but you have to learn each person’s individual attributes.

Moving forward in brokering, everybody for the most part sits down and listens to their clients but you have to listen in many different ways and work with them to try to stick-handle every issue they have.

CMP: How did you begin your career as a broker?

My wife was a Realtor at the time. I chatted with her about a career change and that’s what I chose.

CMP: How long have you been brokering for?

I started off at a small company in 1999 and moved to Mortgage Intelligence from 2001 to 2009. And then last year, I started my own franchise with Dominion Lending.

CMP: Which parts came easy when you began?

Drinking—hah. Well, you start off just like everybody else. You don’t really know anybody and you try to get around and market yourself. You chat with people and

while assessing their finances, it was easy to determine their wants and needs.

CMP: Did you have problems picking anything up?

No, for the most part it’s just a learning curve. Starting off as a mortgage broker, there isn’t much for education.

So when you start off, if you don’t have someone to guide you or help you, it is very difficult to move forward because you’re trying to learn as you go.

CMP: What does ‘the FIRM’ stand for?

Our franchise name ‘the FIRM’ stands for: Financial, Insurance, Real estate and Mortgages.

CMP: Your franchise won a number of readers’ choice awards, what exactly are these awards?

Just south of Calgary, there’s an area called the Foothills with a population of approximately 60,000.

The community newspaper there runs an annual readers’ choice awards and the community gets to vote on who they believe is the best in about 80 different categories.

CMP: To what do you attribute the recognition?

When I first got here about six years ago, I was the only brokerage in town. I did a lot of marketing, heavy, heavy marketing and advertising and got around and met people. I did a lot of newspapers advertisements, full-page ads. So it kind of made me forefront in everybody’s mind. People see the ads and they assume you’re the No. 1 guy. Also, I came in and put ads on 13 of my friends’ vehicles in town. At that time, the population was only 14,000, now its 21,000, but, at that time, it was a lot of vehicles driving around with that advertising on them.

CMP: Do you have any tips for new brokers?

Pair yourself up with a like-minded person. It’s hard getting together with somebody who either doesn’t want to help you or is disinterested. Get together with another broker and see if you can tag along, sit in their office and listen to them handle clients on the phone or in person. It’s a very good way to fast-track to learn what’s going on.

CMP: What are the key things to avoid when dealing with clients?

Being short with them. For the most part, don’t think about your commission, think about helping people first.

CMP: Can you draw any comparisons between the military and brokering?

You’re dealing with people all the time, people and their feelings. In the military, it’s like a big family. It’s kind of the same in the mortgage industry; we’re all a big family. You have to treat people with kid gloves and be well-aware that people have their own dreams, issues, problems and aspirations. So, in both, you just have to pay attention. CMP mortgagebrokernews.ca

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Profile Brokers

When the Canadian mortgage industry first started growing in the early 90s, the obvious place to make money was in the major cities.

But Donna Mullen defied the standards and built her business in an area where financial education for the everyday person was limited.

Heather Li shows how by going small, Mullen made it big

Teaching in

cottage country Y

ou may think the best place to be a mortgage broker is in a major urban centre, such as Calgary or Toronto, with a high-population density and many people always buying new homes. But more than 15 years ago Donna Mullen saw the underserviced cottage country of south Georgian Bay in Ontario as a prime opportunity.

“At that time in Wasaga Beach, there wasn’t a lot of competition for financial services,” says Mullen over Canada Day weekend, phoning me from her own cottage. “Banks had a monopoly. There was one bank and four real estate offices.” So Mullen scouted out the top real estate office and found they were willing to allow her to rent space to get started! This launched her mortgage brokering career, which started with Norlite Financial Services in 1994 and later became Mortgage Intelligence.

Prior to entering the mortgage business, Mullen spent years in various financial roles, starting in 1980 as a Bank of Montreal teller in Brampton, a suburb outside Toronto, to financing vehicles at a car dealership in her hometown of Collingwood, Ont., in the early 1990s.

She was attracted to starting a mortgage business in that area for two reasons. The first was because no one else was there. When Mullen approached Art Trojan, retired founder of Norlite and Filogix, to hire her, he remembers she was a real fireball. “I could tell that she was deeply committed to her new career and was looking for an opportunity to get it started,” he said.

But at the same time, Mullen recalls that Trojan was unsure if she could earn a substantial income in the Georgian Triangle beach cottage country. He asked why she didn’t just come to Toronto where there was obvious money to be made. She told him to let her worry about that, because the second reason she wanted to work in Collingwood was to

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Profile Brokers

mortgagebrokernews.ca

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Profile Brokers

educate homebuyers. “I get to bring a new service to a region, be honest with consumers, teach them and give them a choice,” says Mullen. “And as a bonus, I’m getting paid to do it.”

After training and receiving her broker’s licence in 1995, Mullen opened a storefront that year, associated with Norlite and quickly realized the advantages to a concrete store for her business. “I looked professional and built credibility in a very new industry,” says Mullen. “People can see that you are there when they go to the store or drive their kids to school, and slowly they begin to see that you offer the same services as a bank, and the referrals build from there. It’s human nature to fear the unknown, and back then, people thought brokers were a last resort but we are actually on the A side of financing a home.”

Mullen stayed with Norlite, and later Mortgage Intelligence until 2007 when she decided to go independent. “The industry started to change and was getting corporate, going national,” says Mullen. “I felt regional was better because our business can be more personalized.” And in addition to the personal touch, it turns out there was money to be made.

Today, Your Mortgage Store, Donna Mullen & Associates Inc., has five storefronts, serving Barrie, Midland, Wasaga Beach, Collingwood, Elmvale, Cambridge, Owen Sound, the Golden Horseshoe and Toronto. She has a carefully selected team of 10 agents, all with extensive background in financial services, who have contributed to funding $45 million in mortgages in the first half of this year alone.

Your Mortgage Store’s general manager Kevin Scott appreciates that Mullen’s first concern and priority is always the customer.

“Donna has a frightening memory for her clients’ phone numbers,” says Scott. “She always puts the client first and actually cares about them. If you walk through the streets with her here, she’s always being stopped by people who know her and want to talk to her because of the personal care she gives.” At Your Mortgage Store, Mullen believes educating the consumer is most important, and so she and her agents do not charge extra fees for the advice and guidance they provide.

Mullen acknowledges that the biggest challenge in the mortgage industry is continuing to educate the consumer. “I’m not looking to just make money,” says Mullen. “I

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“ it’s human nature to fear the unknown, and back then, people thought brokers were a last resort but we are actually on the A side of financing a home ” want longevity. It’s not necessarily about having the largest bank account, because I have always invested back in this business.”

She also volunteers her time to teach others at a younger age.

At the local high school in Collingwood that her daughter attends, a math teacher asked Mullen to come in to give a lesson on mortgages. It was the last three weeks of the school year, and Mullen knew it would be difficult to keep the attention of antsy Grade 12 students, dreaming about summer holidays. In any case, she prepared two packages that showed a breakdown of costs when financing a mortgage with a bank, and how it may look with a top rate composed by a broker. “They were amazed at the difference of how banks make money through amortization rates,” says Mullen. “I never saw a high school class so attentive for one hour and 20 minutes. It was the biggest reward I ever had. One student even said, ‘Can’t I just see you if I want to buy a house?’”

This educate-the-client-first attitude is what satisfies Mullen the most, and what has drawn her other agents to work for Your Mortgage Store. “Donna has a heart,” says Michele Hall, one of Mullen’s mortgage associates, based in Barrie, Ont. “She wants to see all clients do well and helps those who are struggling with debt. She builds a relationship with them instead of trying to get them in and out as quickly as possible.”

Next up, Mullen is preparing to expand her relationship networks by opening two new storefronts in the fall. Even through expansion, she builds slowly because she is focused on ensuring the company is a part of the community. Though bigger bucks may lie with the big cities, Mullen’s big heart proves there are some things worth more than dollar signs. CMP

Attention all MORTGAGE BROKERS

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CANADIAN REAL ESTATE MAGAZINE Preferred CMP Reader Rate Contact us NOW for more details!

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Profile

Favourite Things

Leslie Fallaise + Mortgage Broker + Redwood Mortgage Corporation + Mississauga, Ont.

Favourite Things Vacation spot Haliburton. I have lots of roots there because that’s where we vacationed when I was a little girl.

Food A good rib eye steak -- rare.

Hobby Computer Games

Celebrity Jane Seymour.

Place to be The rapids in Minden, Ont. (Haliburton)

Drink Gin martini, shaken with two ice cubes with a habanero olive

Music/band What a Wonderful World. The mixed version with Louis Armstrong is accompanied by Judy Garland

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BOOK The Lovely Bones by Alice Sebold.

Sport Cycling…now.

I used to run but I blew out my knees.

Movie Somewhere in Time. It’s a nice, slow romantic film.

FO P R ER T YO FE H U CT E R G CL I IE FT N TS

is a quarterly magazine designed to help first-time homebuyers through the process of buying their new home.

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IN OUR CURRENT ISSUE:

Benefits of using a mortgage broker, fixed vs. variable rate mortgage and tips from Property Virgins’ Sandra Rinomato

For subscription orders please call 416-644-8740 x230

www.yourfirsthomecanada.ca

Guest Column

Battling the chronic busyness demon Sabeena Bubber knows how to be busy, but after 10 years of it, she wanted more of her personal life back – the catch was she still wanted to be a top earner

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I

have been in the lending industry since 1993 and was licensed as a mortgage broker in 2005. In 2007 I established my own brokerage.

For the last five years I have run my business with one assistant. I do all of my own underwriting; I do all the applications and deal with all the Sabeena Bubber clients. One hundred per cent of my business comes through referrals and repeat clients. This has kept me extremely busy over the last number of years. I work long days and when I’m not working I have two young daughters who keep me busy.

I’m addicted to chronic busyness. I am busy generating new leads, busy working on files -- I always have to be busy and am always seeking more. It got to the point that when I wasn’t busy with mortgage business, I wasn’t able to relax.

Then I would seek out new business until I became so busy that I couldn’t keep up.

The last couple of years, my success rate started to decrease and I had become less satisfied with my work and my personal life was off balance. Here I was with a successful business that new brokers coming into the industry would kill to have, and yet it was making me unhappy. I had made so many sacrifices to get to this point but I was not willing to make those sacrifices anymore.

mortgagebrokernews.ca

I wanted to be the woman who is there for her family, there for her community and there for her clients. I have since realized that you never “arrive” at success - it’s a journey. I wanted to get my business to the level where I could earn more, contribute more to the community and work less.

I found a way and now I have the tools to do this. I hired a coach and mentor who specialized in helping mortgage brokers. Since he operated an extremely successful brokerage, he taught me how to spend more time working on my business instead of in it.

It’s been eight months since I started this journey with my coach, and already have learned so much, which has helped me get closer to my vision. I recently hired my first salesperson and I am in the process of training her to essentially be me to my clients.

I came to the realization in the last year that I can’t make this journey alone. In order to achieve my vision I need help. I leaned on my coach and my peers for support. There are many days that I question whether this is really going to work, but I know I can’t keep going the way I had been for the last 10 years. I need the support staff that can help me to help clients and give me the time I need to be truly successful.

As a broker in this industry, I’m sure there are many other brokers who have had similar issues to mine - chronic busyness, lack of balance and striving to get to that next level. I hope that by writing this I can show that where there’s a will, there’s a way and that anything is possible.

Sabeena Bubber is the broker/owner of Verico by Integré Mortgage Partners Inc. in North Vancouver, B.C. CMP

service directory

Banks

Insurance

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

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

Broker Plus Insurance Services Ltd www.brokerplusinsurance.com Ph: 1 877 242 8820 Page 63

HomEquity Bank www.homequitybank.ca Ph: 1 866 522 2447 Page 37

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Page 31

Canada Guaranty Mortgage Insurance Company www.canadaguaranty.ca Ph: 1 866 414 9109 Pages 11, 45 & 55

National Bank www.nbc.ca Ph: 1 888 483 5628 Page 56

TD www.tdfinancingservices.com Ph: 866 694 4392 Page 65

Macquarie Financial www.macquariefinancial.com Ph: 1 877 462 3788 Page 7

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

Merix Financial www.merixfinancial.com Ph: 1 877 637 4911 Page 49

Mortgage Protection Plan www.mppbroker.com Ph: 1 866 677 4677 Page 19

Broker Networks

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

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Page 50

Dominion Lending Centres www.DominionLending.ca Ph: 1 888 806 8080 Page 27

Non-Bank Lenders

Capital Direct www.capitaldirect.ca Ph: 780 868-0550 Page 18

Equitable Trust Company www.equitabletrust.com Ph: 1 866 407 0004 Pages 53 & 32

FirstLine Mortgages www.firstline.com Ph: 1 800 387 2020 ext. 6044 Inside Back Cover

Resmor Trust Company www.resmor.com Ph: 866 809 5800 Page 47

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

The Money Source www.mymoneysource.ca Ph: 416 699 2274 Page 23

Harbour Mortgage Corp. www.harbourmortgage.ca Ph: 416 361 3315 ext. 221 Page 59

INVIS www.invis.ca Ph: 1 866 854 6847 Page 17

Mortgage Architects www.mortgagearchitects.ca • Ph: 1 877 802 9100 Page 29

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service directory

Filogix Limited Partnership www.filogix.com Ph: 1 866 345 6449 Page 2

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

Mortgage Intelligence www.mortgageintelligence.ca Ph: 1 877 667 5483 Page 16 Commercial Lenders

ROMSPEN investment corporation www.romspen.com Ph: 1 800 494 0389 Page 1

Real Estate Institute of Canada www.reic.ca Ph: 1 800 542 7342 Page 35

Real Estate

Technology/Software

The Mortgage Group www.mortgagegrp.com Ph: 877 899 1024 Page 10

GoMax Solutions www.gomaxsolutions.com Ph: 1 877 492 5164 Page 15

Canadian National Association of Real Estate Appraisers www.cnarea.ca Ph: 1 888 399 3366 Page 67

Applied Business Software www.themortgageoffice.com Ph: 1 800 833 3343 Page 8

Services

Verico The Mortgage Practice Inc careers@vtmp.ca Ph: 905 458 4222 Page 12

CreditCRM

Credit CRM www.creditcrm.ca/cmp Ph: 1 877 256 8162 Page 51

Eprintagent.com info@eprintAgent.com Ph: 1 888 907 5550 Page 21

Got news?

Y Your

news n ews is our news!

Do you hav have a e news to share? r Hav Have ave you o held e d a recent event ve t or o made ade a new w appointment? appo t e t? If so, CMP W WANTS ANTS to hear ffr from om you.

Send us your newsworthy submissions and photos, and you may find your story printed in a future issue of CMP. Send your news to: gina.monaco@kmimedia.ca

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Help your customers do their homework.

Homeownership is often the biggest investment of a lifetime, so it’s important to educate your customers about the various costs of homeownership. Make sure they understand all the available mortgage options, the impact of rising interest rates and that purchasing within their means are the keys to success. We provide easy to understand homebuyer information about purchasing responsibly at www.HomeownershipHelp.ca

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