CMP 11.08 by Key Media

MORTGAGEBROKERNEWS.CA ISSUE 11.08 | $12.95

TOP COMMERCIAL BROKERS Learn the secrets of commercial mortgage success from Canada's highest-producing brokers

NEW KID ON THE BLOCK New CEO Joe Rosati talks about what's next for Broker Financial Group

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THE TRUTH ABOUT SYNDICATED MORTGAGES Where the media – and the regulators – have gotten it wrong

TARGETING FOREIGN BUYERS Industry pros react to Vancouver's recently passed foreign buyer tax

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ISSUE 11.08

CONTENTS

TOP COMMERCIAL BROKERS COVER STORY

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ISSUE 11.08

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CONTENTS

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UPFRONT

04 Editorial

A month of big changes in the mortgage industry

38 FEATURES

44 44

CHARTING THE COURSE

Now at the helm of Home Trust, Martin Reid outlines the lender’s vision for maintaining its legacy

Unclear terminology has led to a vilification of syndicated mortgages in the media – and the head of one private lender says it’s up to the industry to set the record straight

INDUSTRY ICON

Joe Rosati, the newly minted CEO of Broker Financial Group, discusses the network’s big plans for the future

The pros and cons of exclusivity agreements

10 News analysis

Is Vancouver’s new foreign-buyer tax targeting the wrong people?

12 Commercial update

The housing market takes on new importance in Canada’s economy

48 PERSONALITY & PERFORMANCE

Understanding your employees’ unique personality traits can help you build a higher-performing team

16 Opinion

How brokers can build on the strides they’ve made with consumers

FEATURES 50 Becoming a remarkable communicator

Are you guilty of one (or more) of these conversational mistakes?

PEOPLE 42 Broker insight

Ron Lefebvre reveals why he doesn’t bother competing on rate

52 FEATURES

BOOST YOUR PRODUCTIVITY

Feel like you can’t ever get on top of your work? Follow these three steps for an instant improvement in productivity

08 Head to head

14 Market update

FEATURES

PEOPLE

A new survey reveals that brokers aren’t on the radar of young buyers

Vancouver’s commercial real estate is keeping pace with the residential sector

FEATURES

SYNDICATED MORTGAGES

06 Statistics

54 Career path

James Laird has made big waves in the mortgage industry in less than a decade

56 Other life

Shaping hockey’s future stars with Don Stoddart

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

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UPFRONT

EDITORIAL

The season of change

hat an exciting time to be alive – or, perhaps more accurately, what an exciting time to be covering Canada’s mortgage industry. We won’t even get into the recently passed foreign homebuyer tax in Vancouver. We let a couple of experts duke that one out later in the magazine. Instead, let’s talk about all the changes our industry has seen in the past month alone. Mortgage Architects lost its longtime leader, Albert Collu. At press time, we still aren’t sure where he’ll end up, but it’ll be a big win for whichever company inevitably scoops him up. Don’t worry about MA, though – they’ve been left in Dong Lee’s capable hands. That departure came mere days after it was announced that Paul Therien – formerly of Centum – had joined DLC’s ranks in a senior role. And what about Broker Financial Group and RMA’s recent partnership?

Broker Financial Group and RMA’s recent partnership will certainly draw the attention of brokers looking to join a major network – or make the switch Is this a sign of things to come for other smaller networks? Both companies swear the partnership has nothing to do with trying to compete with the big guns, but let’s be real for a second. It will certainly draw the attention of brokers looking to join a major network – or make the switch. For this issue’s Industry Icon feature, we spoke to BFG’s new CEO, Joe Rosati. That interview took place prior to the partnership, but there were some telling statements in that conversation that teased the announcement, which came a few days later – and perhaps, dare we say it, further big moves for the fledgling network? You be the judge of that. The team at Canadian Mortgage Professional

www.mortgagebrokernews.ca ISSUE 11.08 EDITORIAL Editor Justin da Rosa Writers Joe Rosengarten Libby Macdonald Ephraim Vecina David Keelaghan Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Arash Fazelipour Warren Kennaugh Georgia Murch Dermot Crowley

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

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11/08/2016 6:21:01 AM

UPFRONT

STATISTICS

Reaching future buyers

WHY NOT MORTGAGE BROKERS? Before mortgage brokers’ services were explained to the young future buyers surveyed, less than a third had the intention of consulting one before buying. Even after explanations, misunderstanding and confusion reigned among those unlikely to opt for a broker.

The youngest Canadian homebuyers are largely uninformed about who mortgage brokers are and what they do

11% I have heard bad things about working with brokers AWARENESS OF brokers and the role they play is low among young Canadians gearing up to buy their first homes – that’s the conclusion of the most recent edition of Mortgage Professionals Canada’s semi-annual report covering the state of the residential mortgage market across the nation. The report peers into the future of the industry by polling the upcoming cohort of

$37,000

Amount of average savings among imminent buyers

would-be buyers, many of whom revealed they have no idea what brokers do, and thus have no plans to engage one. That’s the bad news; the good is that once these potential buyers – classified in the report as those under 40 who are not currently homeowners, but expect to purchase their first property in the near future – are informed on the role of brokers, the likelihood of uptake goes up considerably.

53%

Percentage of would-be buyers who are aware of new federal down payment minimums

63%

Percentage of buyers for whom this has no impact their plans

14% I don’t trust brokers or the process of working with a broker

35%

15% I don’t think a broker could provide me with much value

Median anticipated cost of ownership as a percentage of income

Source: Mortgage Professionals Canada, “The Next Generation of Homebuyers,” June 2016

WHO KNOWS WHAT?

THE BENEFITS OF USING A BROKER

Next-gen buyers admit their comprehension of brokers’ services is low – almost three-quarters of respondents declared themselves to have partial, weak or even no understanding.

Respondents to the survey – both those who planned to consult with a broker and those who did not – saw the most important benefits associated with using a broker to be a specialization and expertise, along with getting the best rates. Experts in mortgages

26%

39%

Get the best rates Full/good understanding Partial understanding Weak/no understanding

18%

Help you negotiate a better deal

10%

Have access to more lenders 35%

Source: Mortgage Professionals Canada, “The Next Generation of Homebuyers,” June 2016

Convenient, one-stop shop

9% 8%

Source: Mortgage Professionals Canada, “The Next Generation of Homebuyers,” June 2016

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22% I don’t want to deal with a lender I am not familiar with

17% I don’t think a broker could get me a better deal

25% The thought of using a broker just doesn’t cross my mind

18% I don’t want to go through the effort of finding a good broker

29% I would rather deal directly with a lender

19% I don’t understand what services brokers provide 41%

I don’t want to pay for the broker’s services, directly or indirectly

22% I don’t understand how brokers are compensated

Source: Mortgage Professionals Canada, “The Next Generation of Homebuyers,” June 2016

KNOWLEDGE IS KEY

SOURCES OF FINANCING

Ignorance of what brokers do is a serious barrier to next-gen buyers even considering availing their services. Once the benefits of using a broker are fully explained, those likely to consult one jumps from 36% to 75%.

Unsurprisingly, almost all future buyers surveyed said they will need to secure a mortgage before purchasing their first home.

Future homebuyers likely to use a broker: 59%

75%

Timing is everything: 64%

63% 51%

36%

31%

Mortgage only Mortgage and other credit No mortgage

62%

Before the broker’s Once aware of a Who have a good or Imminent buyers Mid-term buyers Distant buyers role is explained broker’s services full understanding of likely to use a likely to use a likely to use a what a broker does broker broker broker Source: Mortgage Professionals Canada, “The Next Generation of Homebuyers,” June 2016

Source: CREA, June 2016

www.mortgagebrokernews.ca

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UPFRONT

HEAD TO HEAD

Should clients have to sign exclusivity agreements? Some brokers see them as a way to be compensated fairly for their work, but others argue they erode trust with clients

Mal Eccles

Leon Dennis Johnson

“I do not believe there is a need for exclusivity agreements. They are not seen by regulators as protecting the consumer – they trigger complaints by borrowers who claim to be unwittingly trapped by brokers into accepting inferior financing. However, I do not object to brokers who choose to use them if that is the business model they opt for. I see exclusivity agreements as a choice between client and broker to enter into a specific working relationship. If they both believe this is a beneficial, then they may choose to enter into such a contract.”

“Personally, I’ve never used such an agreement. I’ve spent enough years in sales to understand that not all sales opportunities lead to closed deals. Different prospects will disengage at different times in the sales process for reasons that are beyond your control. With that being said, though, I believe that effectively qualifying prospects and creating a clear understanding of the expectations of both parties at the outset of the relationship will produce a low rate of recession. Ultimately, the key is being on the same page as the client.”

Mortgage broker CIR Mortgage Corp.

Owner TorontoMortgageKing.com

Rob Campbell

Mortgage broker Broker Financial Group “I think it’s crazy that you have to pay a retainer to speak to a lawyer on a legal matter, or even pay a consulting fee to have a dentist look at your teeth for two minutes, but we as a profession expect to be compensated after putting in time and resources for a client. Should we charge upfront for a standard AAA residential deal? No. But should we be able to enforce a contract that was signed by a client after they decide to not take our deal two days before closing? Absolutely.”

‘BULLETPROOF’ VICTORY AN EXAMPLE TO OTHERS A recent small claims court ruling has reignited the industry debate about exclusivity agreements. The ruling, which saw a mortgage broker walking away with both his initial broker fee and legal fees after facing a client who initially refused to pay, has many in the industry cheering. The client, who was looking to arrange a second mortgage, had already been in touch with another broker and apparently believed there to be no onus on him to pay once he opted for the first quote. In this case, the victor, speaking after his win, cited the ‘bulletproof’ contract the client had signed as instrumental in enforcing the agreement. While in this one instance, the broker emerged triumphant as the result of the efforts of his legal team, other brokers feel at the mercy of a capricious client’s whims – hence the newly revived debate as to whether these sorts of agreements should be standard industry-wide.

8 www.mortgagebrokernews.ca

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UPFRONT

NEWS ANALYSIS

Foreign buyers hit hard in Vancouver The city has levied an additional 15% tax on foreign buyers to attempt to curb escalating prices – but will it have the desired effect?

IN LATE July, British Columbia Finance Minister Mike de Jong announced a 15% land transfer tax for all Vancouver real estate purchased by foreigners, effective August 2. Speculation has since abounded regarding the impact it will have on the desirability of real estate in Vancouver among wealthy foreigners. However, Omer Quenneville of Real Estate Homeward, who also operates in Hong Kong, a city that has seen its own foreign buyer tax implemented, argues that the effects will be minimal. “They did the same thing in Hong Kong, but … it’s [15%] there. Anyone outside Hong

in February 2014, Quenneville suggested that Canada adopt a tax on foreign purchasers of real estate, similar to the one in Hong Kong. “It’s called ‘stamp duty’, but it’s basically the same thing [as a land transfer tax],” Quenneville said at the time. “The way they do it is they charge similar to what the provincial government charges here, about 2.5% every time you purchase a piece of property. “What gets really interesting is if you do not have a Hong Kong address – in other words, a foreign investor – you have to pay an additional, I believe it is 18%. So all these foreign investors who are pushing the market up and

“The UK government now takes up to 28% ... in June 2015, they saw one of the largest declines in housing prices in months” Dr. Sherry Cooper, Dominion Lending Centres Kong who wants to own property [has to pay that]. It does seem to have worked,” Quenneville says. “The problem here is that they’re adding a 15% tax, but our dollar has fallen almost 30%, so it’s still a bargain compared to what it was a couple of years ago.” Still, he argues the tax is a good idea – in fact, in an interview with MortgageBrokerNews.ca

making a bundle would have to pay a significantly higher land transfer tax.” As to what impact Vancouver’s recently announced tax will have, Quenneville argues that the current low Canadian dollar will still entice plenty of wealthy foreign buyers. However, the fear is that average foreign buyers – those young professionals, students

and immigrants who just want to become Canadian citizens and own their own homes – will be most affected, even those who purchased pre-build homes years prior to the tax implementation date. Dustan Woodhouse, a mortgage broker with Dominion Lending Centres, recently outlined such a scenario on his personal blog. “International student? Foreign (i.e. American) worker on a temporary visa, with your permanent resident status application pending approval? You, my friends, are out of luck,” Woodhouse wrote. “Just like one student we know of whose parents were assisting her on the purchase of a $400,000 condo to live in during her remaining six years of studies. Contract entered into three months ago, completing in about four months. Boom! $60,000 extra please, in addition to the $140,000 minimum down payment required, or else forfeit your $80,000 deposit to the developer. If she completes, the government

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TAXES ON FOREIGN BUYERS ACROSS THE WORLD

Australia A fee of $5,000 just to make an offer on a new home costing up to $1 million, plus an extra $10,000 on every million-dollar increase in purchase price

UK 18% to 28% on capital gains for properties that are not primary residences

Singapore 18% sales tax

Hong Kong 15% tax, plus 10% to 20% on any home sold within three years of purchase

wins ($60,000 in new tax revenue). If she cannot raise the extra $60,000, the developer wins ($80,000 deposit forfeited).” The impact has already been felt. The Land Title and Survey Authority’s website crashed

In a research report shared with CMP, Dr. Sherry Cooper, chief economist with Dominion Lending Centres, analyzed the effects of foreign buyer taxes in two major markets. “In 2014, a study revealed that 50,000

“They’re adding a 15% tax, but our dollar has fallen almost 30%, so Canadian real estate is still a bargain” Omer Quenneville, Real Estate Homeward on July 28, as thousands of people attempted to close deals prior to the August 2 implementation date. A record of more than 8,400 applications was anticipated. And while the long-term impact of the new tax is not yet known, there are similar programs in other countries that can be looked at to glean some wisdom.

homes in London were vacant, while Londoners were struggling to find affordable housing,” Cooper wrote. “According to CBC Business News senior writer Lucas Powers, UK citizens have long been concerned about ballooning home prices, especially in London. Lawmakers there have responded with a large capital gains tax. In Britain, the tax is between 18% and 28%

on the capital gains from residential real estate that is not a primary residence. Foreign non-resident owners were not subject to this tax. In a effort to level the playing field, as of April 2015, the government now takes up to 28% at the point of sale on foreign-owned residential property. In June 2015, they saw one of the largest declines in UK housing prices in months – and of course, Brexit is currently wreaking havoc on prices as well.” Meanwhile, foreigners hoping to purchase a piece of Swiss real estate have even more hurdles to jump. “It is even more difficult for non-resident foreigners to buy residential property in Switzerland,” Cooper wrote. “Each year the government assigns quotas to each of the country’s 26 cantons. If approved, foreigners must use their Swiss dwelling personally – not for rental. In addition, each canton has authority to impose additional far-reaching restrictions.”

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UPFRONT

COMMERCIAL UPDATE NEWS BRIEFS BoC says lending conditions tighter in second quarter In the results of its Senior Loan Officer Survey, released in early July, the Bank of Canada found that lending in the country has become much stricter in the second quarter of 2016. Tighter business lending conditions predominated among corporate borrowers, along with small businesses and commercial borrowers in the Prairie region. In particular, the energy segment was the hardest hit among all borrower categories in Canada. “Lenders also tightened nonprice conditions for small business and commercial borrowers,” the BoC said. “There was a slight easing in price conditions for small businesses.”

Councillor cited for ‘improper’ transactions Toronto city councillor Mark Grimes was reprimanded for engaging in improper transactions with two separate developers. One case involved Grimes allegedly making last-minute revisions to an agreement with a developer, leading to cash benefits that were $100,000 lower than originally agreed upon. The second case concerned Grimes’ appearance in a promotional video for another developer two years ago. “Although he stood to gain no financial advantage from any of these interactions … the councillor’s actions were improper uses of his authority,” said integrity commissioner Valerie Jepson.

Apartment owners wary of new tax BC’s new foreign buyer tax might help cool down Vancouver housing, but commercial property owners have voiced concerns about the impact of the new levy on apartments. “I don’t know that

foreigners are speculating on apartment blocks,” said Edmond Luke, a partner at international law firm Fasken Martineau. “I don’t know if it was intended, but this act also applies to multi-family residential buildings like apartments.” An estimated 3% of Vancouver apartments belong to overseas nationals. According to CBRE, $120 million has been spent by foreigners on Canadian apartments during the first half of the year.

Lender considering redirecting deal to Canada

Cushman & Wakefield executive managing director Brian Kriter recently announced that his company will call a general meeting with clients to discuss post-Brexit repercussions. Kriter noted that his recent consultation with an Asian commercial real estate lender, which is contemplating redirecting a deal worth millions of dollars from London to North America, is representative of an emerging trend. “You have this phenomenal amount of capital that’s looking to be placed in commercial real estate, and it’s very fluid,” Kriter said. “Foreign investors view Canada as an island of certainty.”

Enigmatic Chinese real estate mogul dominates BC real estate

Sun Commercial Real Estate founder Kevin Sun has purchased and sold more than $500 million in BC properties, and raised in excess of $200 million from investors. The Chinese property tycoon supposedly left mainland China a few years ago in connection with a banking scandal that involved irregular loans discovered via a nationwide audit. Sun Commercial representatives have denied the allegations. Despite having founded Sun Commercial, Sun remains elusive, having never consented to interviews and appearing in only one public picture since he arrived in BC.

Vancouver foreign investment exceeds $1 billion New data shows that 72% of foreign investment in commercial real estate went to Vancouver Citing data released in late July, CBRE revealed that foreign investment in Canadian commercial real estate exceeded $1 billion in the first quarter of the year alone, and that 72% of that amount was invested in Vancouver. Meanwhile, CBRE numbers revealed that $2 billion in foreign money flowed into Canadian markets, representing approximately 19% of the $10.6 billion in commercial real estate investments. Leading the charge are wealthy Chinese, who purchased an estimated $1.3 billion worth of Canadian commercial real estate in the first half of 2016. Buyers and investors from the mainland represented 65.4% of the deals across the country in the same period, CBRE said. Observers said that this overheating, which is gradually coming to resemble the situation in the city’s residential real estate segment, could be attributed to the less stringent lending environment at present. “There’s so much money chasing so little product, and there’s so much money available by lenders,” said David Goodman, principal of the Goodman Report. “We’re not just talking about the Canada Mortgage and Housing Corporation; we’re talking about conventional lenders that are offering phenomenal terms. The world recognizes that Vancouver is a place where it’s safe. They can park their money, sleep well at night. There’s stability here, and there’s massive immigration growth.”

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The resultant pricing arms race has led to cap rates for A-class office spaces at a high of 4.5% in the second quarter of 2016. In comparison, industrial cap rates stood at 4.5% to 5%, while retail remained at 4.25% to 5%. “Investors are counting on increases in capital value as opposed to earning an annual yield,” said Chris Blanchette, a managing director at Colliers International in Vancouver. “I’ve been in this business for 43 years, and I can remember a day when apartment buildings would trade at 8% and 9% cap rates, and now we’re well under 3% in many locations.

“There’s so much money chasing so little product, and there’s so much money available” Certainly in the more popular locations, we’ve seen trades at 2% to 2.5%. We’re seeing outside investors coming in and buying properties here at very low cap rates because there is a significant demand to get into the Vancouver marketplace.” This prevailing climate of cheap credit stood in stark contrast with tighter lending conditions for oil & gas for the second quarter of the year, according to the Bank of Canada.

Q&A

Dale Bilton

The commercial segment in Ontario

President DOMINION LENDING CENTRES COMMERCIAL AND RESIDENTIAL MORTGAGES

Years in the industry 20+ Fast fact Bilton spent 20 years working as a commercial banker prior to transitioning into the mortgage industry

What are the unique challenges that commercial mortgage brokers face? A lot of commercial buyers and Realtors do not realize there are considerable differences with commercial mortgages, as opposed to residential – many of the clients, their only exposure has been residential. The learning curve from residential is major, and even though we see a lot of the residential agents trying to do both, few master being a residential and commercial mortgage agent successfully. The requirements for commercial mortgages are very different from residential – for example, the time to close a lot of deals takes many months, sometimes over a year. Getting an AACI appraisal, Phase 1 or Phase 2 environmental report, building inspections, and other engineer reports are just a few. If the Realtor is not experienced in commercial, this again is another learning curve, getting them to understand. The next challenge is knowing which lenders are the correct ones to take the deal to. Often when a residential agent comes to me with a commercial deal to co-broker, they have tried to do the deal themselves and usually have approached totally wrong lenders. Commercial lenders have often advised me that they are not impressed when their time is wasted. Based on your transactions, what are you seeing from overseas buyers and investors in Ontario? Any overseas buyers need to ensure their investment funds are properly brought into Canada, and need to be able to show a clean flow of where the funds came from. What do you think about the increased participation and prominence of wealthy foreigners in Canadian markets? I am excited to work with out-of-country buyers who have shown a good record of investment properties in their homeland. Many of these buyers have very strong reserves to inject, and assuming there are no restrictions on getting their funds into Canada, we are here to help them obtain financing for their Canadian investments. Is a punitive tax on foreign buyers of commercial real estate in Ontario – similar to the recently implemented levy on overseas buyers of Vancouver homes – viable or even sensible? I personally hope Ontario does not implement similar tax as BC has done. I don’t think it is needed here, and it would discourage good investors from buying in Ontario. What’s your advice to those who are planning to participate in Ontario’s commercial market? Anyone looking to be an investor in the Ontario commercial market firstly needs an experienced commercial Realtor, and secondly an experienced commercial mortgage broker. After developing a good rapport with each, they need a lawyer who is also comfortable with commercial law. Once they have this base, the other requirements will be provided from these three professionals.

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UPFRONT

MARKET UPDATE

Housing now a ‘prime mover’ of the economy New statistics reveal that the housing market and bank lending make up almost 20% of the economy

$103,000, outstripped only by the incomes of dentists and senior government managers. “This is obviously problematic because soaring house prices need to be underpinned by an abundance of well-paying jobs and rising paycheques,” said Aaron Hutchins, a Maclean’s analyst and market observer. At the same time, Hutchins pointed to a troubling trend of homeowners earning more than those in employment, citing figures from BC mathematician Jens von Bergmann, which showed that Vancouver owners netted $25 billion in the previous year alone

“Real estate has become the country’s biggest industry at 12.4% of GDP”

Canada’s lively real estate segment is one of the few things keeping the economy afloat as the country experienced one of its slowest GDP growth rates on record, according to numbers released by Statistics Canada in late July. Together, red-hot housing markets and vigorous bank lending now account for around 20% of the economy, a proportion that last manifested back in the early 1960s. Two years since the oil crash, Canadian real estate grew by 6.8% in May compared to 24 months earlier, contributing 0.8% to national GDP growth in the same period. Brokers’ fees

NEWS BRIEFS

also went up by 15% in that interval. “Real estate has become the country’s biggest industry at 12.4% of GDP, or 13.2% if you include leasing,” said a Bloomberg analysis. The flip side of the real estate tale, however, is the accompanying growth of home prices and household debt, now at record highs and outpacing income increases in all but the highest-paying vocations. Only judges earned more than homes in Vancouver, where the annual price growth last year was pegged at $193,000. Meanwhile, Toronto annual price growth in 2015 stood at

Construction up in Vancouver and Toronto

CMHC recently reported that the pace of construction accelerated in Vancouver and Toronto in June amid ever-growing demand. Updated numbers showed that the annualized pace of housing starts went up by 17% month-over-month. “Overall, June saw housing starts pick up pace in Canada, bolstered by apartment construction in Ontario – especially new condo construction in Toronto’s downtown core,” said CMHC chief economist Bob Dugan. Together, Vancouver and Toronto comprised 37% of new construction.

(compared to employees’ $18 billion). Not helping matters is the dismal performance of the energy, mining and engineering construction segments. The slowdown has had a significant impact on the purchasing power of domestic would-be homebuyers. “The decline in resource production, coupled with the fall in engineering works, has shaved about 1.7% off Canadian GDP in the two years through May,” Bloomberg said in its analysis. The downturn has thrown policymakers, investors and industry players into a loop of uncertainty – while the Bank of Canada is projecting a strong rebound in the remainder of the year, others predict there’s a good chance that BoC governor Stephen Poloz will cut rates by October to stimulate the economy.

Government estimate of foreigners ridiculed

The BC government’s July announcement that only around 3% of homebuyers in the province were foreign nationals drew ridicule among industry professionals at the recent Asia Real Estate Association of America [AREAA] conference, as reported by the South China Morning Post. “My intuition says it has to be much higher [than 3%] just based on the number of people and the number of deals being done at this conference,” said Michael North, COO of Pacific Royalties, which puts Asian buyers in touch with North American real estate.

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Q&A

Steven Levine

Montreal residential real estate in focus

Certified mortgage broker TRUE NORTH MORTGAGE HYPOTHÈQUE

Years in the industry 6 Career highlight Winning the CMA for Best Newcomer in 2013, and being nominated for Mortgage Broker of the Year in 2015 and 2016

What are the foremost concerns among Montreal mortgage brokers in the current economic climate? In terms of economic concerns, we really don’t have many of those. However, brokers here have to deal with political stuff, especially the 1995 referendum in which Quebec was thinking about separating from the rest of Canada. Back then, a lot of people left Montreal, and Toronto started seeing a boom at around that time. People got scared off, and any time the Parti Québécois comes back in, there’s talk about that referendum again. It creates instability, and if people are concerned about what the future can bring in Quebec, it hinders the growth of Montreal’s housing segment. It’s a reality here, unfortunately.

A CMHC report released last month revealed that foreigners represented a minuscule proportion of private owners in Montreal. Based on your own transactions, how often do foreign buyers or investors participate in the Montreal market? Domestic buyers are more active here because of the language barrier. The main language in Quebec is French, with English as the second language. If you want to advertise or get a job in Quebec, you definitely need to know French. In addition, Vancouver is more attractive to foreign buyers because the climate there tends to be the most compatible for overseas nationals, especially

Agent to help Canada-bound Americans

A US-based real estate agent is assuring Americans wary of either candidate winning in the November 2016 presidential elections that he will help them move to Canada, and even sell their homes for them. Charleston, South Carolina-based agent Jeff Cook recently installed eight billboards across the city with the tagline “Moving to Canada? We can sell your home.” “We’ve had a lot of people threaten [to move]. November comes around, the election happens – we’ll really see if they put their money where their mouth is,” Cook said.

Homes earned more than Canadians

Asian investors. In Montreal, the climate is completely different; temperatures here are quite nice during the summers, but when winter comes around, we can see minus-30-degree weather and large snowstorms.

Organizations such as Sotheby’s Inter national Realty Canada have predicted a possible increase in Montreal home sales due to foreigners who want to avoid Vancouver’s new tax. What are your views on such projections? It depends on what their goals are. If a foreign buyer is saying, “Hey, we have a lot of cash and we just want to dump it here to see growth,” that’s another thing altogether. Maybe the climate factor won’t bother them too much, but for anyone who is looking for a place to live at least for part of the year, I don’t think Montreal will be on the radar as much as other places. For investors who want to put their money in a market that’s poised to grow, however, Montreal could be interesting, just because Vancouver and Toronto cannot keep going up like they have been. Will Montreal experience a boom, though? Only time will tell.

What would be your advice to buyers in a market that still enjoys relatively affordable prices, especially when compared to those in other major Canadian cities? My advice is: It's time to buy. It doesn’t get any better than having nice low rates and affordable prices – and both of them go hand in hand.

BMO’s chief economist put into perspective the staggering rate of growth in residential real estate prices in Canada’s most in-demand cities over the past 12 months. “Your home made more than you did last year,” Douglas Porter told The Globe and Mail. According to CREA data, the average sale price of a Canadian home grew 11.2% year-over-year in June 2016, up to $503,301. “In contrast, average weekly earnings among all industries, including overtime, over the past year were $953.16,” Porter said.

Vancouver costlier than London or New York

Average home prices in Vancouver now far exceed those of homes in the London or New York metropolitan areas, according to data released by Knight Frank Research late in July. The average cost of a home in Vancouver’s overheated mainstream residential market is now at $917,800 (US$694,934), compared to $617,700 in London and $467,900 in New York. “Given the level of prices, it’s hard to imagine people in Vancouver earn enough [to buy homes],” said Charles St-Arnaud, a senior economist at Nomura International.

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UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email mortgagebrokernews@kmimedia.ca

Where do we go now? Arash Fazelipour outlines what the mortgage industry must do next to further the advancements brokers have already made MOST MORTGAGE brokers who have been in the industry for some time can agree that they are coming across more diversified business from clients who are incomequalified, have great credit and are more sophisticated. Clients are not just looking for residential mortgages but are pursuing mortgage financing for rental properties, commercial ventures, investments and more. This is a far cry from the age-old stereotypical belief that mortgage brokers provide service only to individuals who are self-employed or have a poor credit rating. We can applaud ourselves for this change in consumer attitude, which is a direct result of mortgage brokers stepping up their game. These days, clients look to us as industry experts who are able to give them unbiased advice, excellent service and the best rates (without haggling down from the oh-so-ambiguous posted rate), all of which is delivered with professionalism and a dash of the human touch. Nonetheless, in order to stay relevant in this industry and to keep up with growing and changing business demands, we must continue to improve our front-end service to clients as well as our back-end business operations. Mandatory education is a great starting point. However, the main focus of the education for our industry has been on simply meeting FSCO requirements for licensing. So you passed the course and became a mortgage agent, but now what? The education component does not provide any insight on how to run the day-to-day operations of a mortgage office, nor does it emphasize the front-end service component that is abso-

lutely necessary to stay competitive. In my experience, clients switch from banks to brokers due to a lack of service from the banks – they simply become fed up. To respond to this new pocket of business, we must continue to focus on being a serviceoriented industry, even after the deal is done. By investing in and boosting our backend business operations, we are also better equipping ourselves to be able to provide outstanding front-end service to clients. We can do this by offering broad training services and by providing courses that focus on practical components, taught by veteran

through CRM software • The importance of staying connected to clients via email blasts and newsletters that provide mortgage and real estate updates • The importance of a user-friendly online presence • The importance of optimizing online assets for mobile engagement • How to maintain an active social media presence and marketing effort The success behind our long-running and thriving business can be attributed to having systems in place that allow us to service our clients and database in an efficient and personal manner. As a result, the bulk of our business comes from return customers and referrals. If our office is not taking the time to maintain our database, we stand to lose clients and business. Investing in back-end business operations through the use of different forms of technology, software and social media has helped our office be consistent in our process, provide superb service and maintain our online social media presence. The return on investment has been tenfold. All in all, we should be proud of ourselves, as we have made great strides for the mortgage brokerage business as a whole.

“By boosting our back-end business operations, we are better equipping ourselves to provide outstanding front-end service to clients” brokers in collaboration with national and provincial bodies such as Mortgage Professionals Canada and IMBA. Those who have had success in the industry could provide invaluable help training new brokers on how to operate a proper business structure. Didactic methods could include expert advice, experience, case studies and instruction on the use of different forms of technology. Under this umbrella, new brokers could learn: • How to run a proper mortgage office day-to-day • How to maintain client relationships • How to use and maintain databases

Consumers are far more educated and aware of the benefits of using the services of a mortgage broker to connect to multiple options. We have positioned ourselves as being better able to provide exceptional customer service, unbiased advice and competitive rates compared to individuals’ own banks and the institutions they have been dealing with for years. We need to keep this up in order to see greater increases in our market share.

Arash Fazelipour is an Ontario-based mortgage broker with more than 10 years of experience in the industry. He’s currently the president of MyTerms.ca.

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11/08/2016 7:03:53 AM

PEOPLE

INDUSTRY ICON

FROM BANKER TO BROKER Joe Rosati was recently appointed the head of the industry’s newest broker network – and since that time, his company has already made some big moves

JOE ROSATI, the new CEO of Broker Financial Group, got his start in the industry in 1982, when trust companies were the leaders in providing mortgages for Canadians. “I was with Guaranty Trust until the early 1990s,” he says. “I went to work for Montreal Trust in 1991, and that was also during the real estate bust. In 1993 – late ’93, early ’94 – Scotiabank bought Montreal Trust. At the time, Scotiabank did not source any business through the mortgage broker channel. I was responsible for introducing it to them and showing them there was value in originating mortgages through the channel.” Rosati left Scotia in 2008 and took a chance on the broker channel, holding a number of different leadership roles. And he hasn’t left since – unless you count a brief sabbatical. “I left Scotia to go to MCAP and was the regional vice president until 2011, at which time I went to the Independent Mortgage Brokers Association as their executive director. I was the very first executive director for them,” he says. “From there, I took a sabbatical for a year to travel with my wife. We went mostly to Europe and the Caribbean. We also threw in Disney World and Universal. It was a great year.” Indeed – but now he’s back. After a short stint with Home Trust, Rosati was appointed CEO of Broker Financial Group in May, less than a year after the fledgling network was established.

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“I’m excited about the future of BFG,” he says. “We have developed a proprietary technology called Scarlett, which really gives our brokers the tools for everything from an online application to a CRM to a deal management system and task management system – really the nuts and bolts brokers need from end-to-end. Technology is going to be the future of our industry, and those are the tools we

ating factor for RMA, according to the network’s executives. And BFG may not be done there. “We’re also looking at partnerships and acquisitions,” Rosati says.

Future trends Rosati stresses that new technological capabilities must extend to consumers as well. “People

“I think competition is strong not only with the banks, but there are other sources that are going to come into this industry – disruptors. It’s going to be a challenge in the A space as the mortgages become more and more cookie-cutter transactions that can be done over the internet” need to give our brokers the ability to compete in the marketplace.” And it appears the rest of the industry agrees. Shortly after Rosati spoke with CMP, Broker Financial Group entered into a partnership with Real Mortgage Associates [RMA], an established broker network with a strong presence in Ontario. BFG’s focus on technology – and its proprietary system – was a big motiv-

are finding their mortgages online, and you need to have the capability to get to them and allow them to find you,” he says. Along with this increased dependence on technology, Rosati also believes regulation will be front and centre for brokers going forward. However, he posits that it may not be a bad thing, as it may lead to growth in different sectors.

PROFILE Name: Joe Rosati Company: Broker Financial Group Title: CEO Years in the industry: 34 Career highlights “Introducing the mortgage broker channel to Scotiabank and helping them grow. Being the first, inaugural executive director of the broker association, and now being the CEO of a growing, national brokerage. Taking on these new opportunities has been exciting for me.”

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PEOPLE

INDUSTRY ICON JOE ROSATI’S CAREER TIMELINE

1993 “With the tightening of the regulations that has been happening over the last couple years with OSFI and the mortgage insurers … the A space continues to shrink,” Rosati says. “It’s moving clients to B and sub-prime. I think it’s a growing trend; I think [the B space is] about 20% of the market, and I could see it getting to 30% of the market.” The broker channel has dealt with its fair share of challenges over the years, and yet it’s done nothing but thrive. Perhaps one reason for that is that brokers have been able to identify and prepare for those challenges. The future will be no different, Rosati predicts – and one

of the criticism, coming under fire for everything from falsified documents to (erroneous) knocks against non-bank lenders. “It really put a bad light on mortgage brokers, I think unfairly in some cases,” Rosati says. “[Fraud] can occur in any channel, and brokers seem to have taken the brunt of it.” As a result, he believes it’s important for the industry to do what it can to rehabilitate its image. “I think that all brokers – from executives all the way on down to individual mortgage brokers and agents – really need to speak out against fraud,” he says. “If we know that it’s

“I think that all brokers – from executives all the way on down to individual mortgage brokers and agents – really need to speak out against fraud. If we know that it’s happening around us, I think we need to call it out” challenge brokers should get ready for is an increase in competition. “I think competition is strong not only with the banks, but there are other sources that are going to come into this industry – disruptors,” he says. “There was a media article the other day about robo-mortgages. I think we’re really just talking about the A space. It’s going to be a challenge in the A space as the mortgages become more and more cookie-cutter transactions that can be done over the internet.”

Fighting fraud Last year was a tough one for brokers, and the industry’s image took a beating, Rosati acknowledges. There was an increasing focus on fraud in the industry and, perhaps unfairly, the mortgage broker channel bore the brunt

happening around us, I think we need to call it out.” The Ontario Securities Commission recently launched a whistleblower campaign to compensate individuals who step forward and identify fraudsters – and Rosati believes that’s something that could potentially help the mortgage industry as well. “I think the regulators need to step up to the plate and snuff it out,” he says. “I’m not sure they always do everything they can. I understand there are legal issues, and they have to be careful because these are people’s careers, but I think we let some get away with it, and it hurts the industry as well. We definitely need to be more vigilant and really show to the industry at large that we take this seriously.”

Director of national sales Scotiabank

2008 Regional VP, Eastern Canada MCAP

2011 Executive director Independent Mortgage Brokers Association of Ontario

2015 VP of national sales Home Trust

2016 CEO Broker Financial Group

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11/08/2016 7:05:43 AM

DONG LEE MBA, AMP PRESIDENT

For 11 years, in my role as Vice-President, I have learned from some of the best in the mortgage brokerage industry. Now, as President, I’m excited to lead Mortgage Architects into its next chapter of growth.

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11/08/2016 7:05:48 AM

FEATURES

COVER STORY: TOP COMMERCIAL BROKERS

TOP COMMERCIAL BROKERS For the fifth year in a row, CMP highlights the highest-producing commercial brokers across the country

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STRETCHING FROM relatively sedate Montreal to the molten-hot market of Vancouver, this year’s Top Commercial Brokers truly have a nationwide reach. Many on this list have been bolstered by the thriving commercial markets of the Lower Mainland and the GTA, but others in Calgary, Manitoba and Quebec have overcome regional challenges to post impressive numbers as well. What unites them all is a fantastic level of skill in their chosen profession – each person on this list expects to increase their deal volume in 2016, despite Canada’s volatile economy.

Together, our Top Commercial Brokers funded a combined loan volume of $1.17 billion in 2015 – so clearly there are plenty of deals still out there to be made, regardless of market location or increasingly stringent lending rules. From brokers in Vancouver and Toronto who look to capitalize on their success with expansion plans, to those in cities like Calgary who are finding new ways to add value for clients, the commercial brokers on this list are excelling in their roles and building an industry that will continue to thrive in the years ahead.

Name

Page

Company

Ameerullah, Ameera

Canada Mortgage & Financial Group

Beckingham, David

Dominion Lending Centres Commercial Capital

Bennett, Andrew

Nexus Investment

Cotton, Vic

Avenue Financial

Durand , Michel Jain, Manish Jalili, Omid

24 36 28

Mortgage Alliance Commercial CBRE OMJ Mortgage Capital

Lavoie , Carl

CBRE

Mu, Tina

Dominion Lending Centres Acer Mortgages

Shopsowitz, Neil

Dominion Lending Centres Commercial Capital

Tyson, Harry

Dominion Lending Centres Innovative Mortgage Solutions

Wood, Brennan

Foundry Mortgage Capital

TOP COMMERCIAL BROKERS BY THE NUMBERS Total volume funded

$1.181 billion

Average funded volume per broker

$98.4 million

Total number of years in the business

176

Average years in the business

14.7

Total number of deals

252

Average number of deals

Average deal size

$4.69 million

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FEATURES

COVER STORY: TOP COMMERCIAL BROKERS DAVID BECKINGHAM

Dominion Lending Centres Commercial Capital Vancouver, BC Years as a commercial broker 29 Sales volume in 2015 $138 million Totals deals in 2015 18

CMP: You’re approaching your 30th anniversary in the business. What keeps you motivated? David Beckingham: I still get a great deal of pleasure out of loans and doing business with people. I’ve got a really competitive nature, and I love the challenge of taking a project from start to finish. CMP: Being based in Vancouver, are you concerned about media reports of a property bubble? Or do you think the city is more like the London or New York markets, and pretty much recession-proof? DB: I’ve been in the business almost 30 years,

and I’ve never really seen a downturn in the Lower Mainland. In the outer-lying areas of British Columbia, the markets have been very volatile before – we had a downturn in the ’80s, the ’90s and one again recently. The Victoria market, Vancouver Island, Kelowna – they are all becoming very buoyant as an offshoot of the Lower Mainland market. I think Vancouver is an anomaly, and I don’t think the market here is a bubble at all. CMP: The economy is very up and down because of the commodity markets. How does that affect your business? DB: The Albertan market is tenuous to say the least, so we are very concerned about that.

MICHEL DURAND Mortgage Alliance Commercial Toronto, ON

CMP: As a veteran of the industry, what are the major changes you have experienced since you first started in the business? DB: When I first started, there were no superbrokers. Also, now there is an onslaught of regulation – it started ever so slowly, and it’s creeping forward more and more all the time. I don’t see that as a bad thing, though. As you regulate more, it becomes more difficult to get into the business. But with change, things are good. CMP: How has it been adapting to the digital age? DB: When I first got into the business, we didn’t even have email; we corresponded with telex and fax. Now the technology that is available is unbelievable. The world has profoundly changed. CMP: So what’s the next step for your business? DB: We are the Western Canada representative for Dominion Lending Centres, and we do have plans to open more offices. We would like to have offices in Calgary, Edmonton and Winnipeg, so that’s next for us.

CMP: When did you start at Mortgage Alliance Commercial? Michel Durand: We opened up the first office in Montreal 10 years ago. That was followed by the Toronto office five years ago, and the Calgary and Vancouver offices four years ago.

Years as a commercial broker 23

CMP: Those are some pretty different markets. What are different challenges they present?

Sales volume in 2015 $269 million

MD: All markets tend to vary throughout the year because of different economic factors. Each is active in its own way. Our agents in all of the markets do quite well, though. In real estate, when the market is good, we do well, and when the market gets tighter, like

Totals deals in 2015 23

What has happened is that we have had a significant increase in the Lower Mainland, so what we lost in Alberta, we picked up in the Lower Mainland/Vancouver markets.

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in Calgary, we do even better because more people come to see us.

CMP: Has your business been affected much by the up-and-down economy since 2014?

CMP: How is the market in Montreal currently?

MD: We are busier than we’ve ever been. Last year was our best year to date, and this year is shaping up to be even better than that.

MD: On the commercial side – and I think it’s a very good thing – the lenders are being much more diligent. As long as the same rules apply across the board, the market will evolve.

CMP: You have been in the industry for 23 years. What major changes have you seen during that time?

CMP: It sounds like business is going well – do you have a specific target or goal for the coming year?

MD: Fintech and providing digital services to agents to allow them to be more effective. One of the things that has allowed us to grow quickly is our agents across the country have access to centralized underwriting. That means the agents spend more time closing deals and less time figuring out deals, which works out best for everyone.

MD: We are looking to expand our number of agents. Our business model is a little bit different than others. Our agents are referred deals through the office, and that volume of referrals has increased quite a bit – it has more than doubled over the last two years. It’s nice to keep everyone with a full belly, but we need more bellies to fill.

MD: It is our fastest-growing market right now. Our numbers are up 27% versus last year.

CMP: You have offices in Toronto and Vancouver. Does the talk about bubbles concern you at all? MD: We are aware of it, but it doesn’t really concern us. We adapt to what the lenders are concerned about, and they are lending more than ever. In certain markets, they are being more conservative, but good brokers are able to justify to lenders loans they might otherwise pass on.

CMP: How about regulation?

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FEATURES

COVER STORY: TOP COMMERCIAL BROKERS HARRY TYSON Dominion Lending Centres Innovative Mortgage Solutions Coquitlam, BC Years as a commercial broker 3 Sales volume in 2015 $55 million Totals deals in 2015 25

CMP: How has business been in the Lower Mainland? Harry Tyson: Buildings are being sold at very low cap rates, which means higher values, but the income from the property cannot support a significant amount of debt. In a recent case, the cap rate was 3%, and the income could only support a loan of 47%. CMP: What are the benefits and challenges of being in such a hot market? HT: There are benefits, but the problem right now is that a number of big institutions have already used their budgets for the year by June. Some of the bigger credit unions and different financial institutions have basic-

ally turned off the tap. For many of them, the amount of volume that occurred far exceeded their expectations, so they don’t have money available for new members. They are trying to keep whatever money they have for existing clients. So it makes it more difficult to get funding for clients.

CMP: What major difficulties have you encountered as a broker? HT: When you work for one of the financial institutions, you control the money. That eliminates the need for a middleman like me. At Vancity, I did the majority of the funding for clients. As a broker, you have to show your value in giving the clients different structures, which I couldn’t do as a lender with Vancity. CMP: Is regulation much different as a broker than it was on the lending side? HT: Not really. You need full disclosure on both sides. As a broker, you have to make sure to disclose all the information to both the borrower and the lender. For your relationship with the lenders, it’s imperative that the package you send them is correct and no details are missing.

CMP: As a relative newcomer to the industry, was it difficult to break into the commercial space and build a business? HT: I started as a mortgage broker in 2013, but prior to that, I had been working in commercial lending since 1987. So I had all that experience and contacts already. I had 20 years with Vancity before I made the switch.

CMP: Have your goals changed much in your three years as a broker? HT: My target was to get above $60 million. In 2015, I was close to that, and a couple of deals didn’t close until January, so I think in 2016 I’ll pass that mark. I’m at $45 million now, so I expect to reach that $60 million mark this year.

BRENNAN WOOD

CMP: You had a great year last year, business-wise. How has 2016 been going?

Foundry Mortgage Capital Toronto, ON

Years as a commercial broker 8 Sales volume in 2015 $120 million Totals deals in 2015 15

CMP: Why did you make that change? HT: I had an opportunity to move over to DLC, so I just thought it was the right time. There were more opportunities to find funding sources for clients moving into brokerage.

Brennan Wood: We still are doing quite a few construction loans; obviously construction is very hot in Toronto. We are doing quite a few land loans, so a lot of our focus has been on the development side.

CMP: There are a lot of benefits to being in a market like Toronto, but what are the main challenges? BW: The reality is that while you are working with the banks, a lot of the time you’re competing against them for the same clients. So it’s a funny relationship – best friends

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one day and mortal enemies the next. You have to be able to differentiate yourself and show clients the benefits of dealing with a broker rather than directly with a lending institution.

a lot since then. In 2008, obviously there was a real shortage of capital compared to now. Finding capital isn’t an issue now; it’s finding good deals. The level of due diligence banks take now is also a lot greater.

CMP: What made you decide to become a commercial broker?

CMP: Has technology changed how you work?

BW: I was a lawyer beforehand in Australia, and in 2008, the firm laid off my whole division. My family has been in commercial brokerage forever, so it was a business I understood. I had an offer to work with Mortgage Alliance, so I did.

BW: Well, I can work using my cell phone now; when I started, I had a BlackBerry Torch that sometimes worked, sometimes didn’t. Also, at the office we have an online project management tool that we can all share files on. I think the big difference is the importance of having a strong online presence.

CMP: How has the job changed most during your eight years in the business? BW: The underwriting criteria has tightened

CMP: You’re based in Toronto; is most of your business in the GTA?

BW: We go where the clients are. A few years ago, I was doing more work in Alberta, Manitoba and BC. Now it’s much more in the GTA, but I have clients right across Canada.

CMP: So do you have any expansion plans for the business? BW: Yes, we were touring office space last month. We are looking for something more centrally located in Toronto, around Yorkville or the Annex. When we started the business, it was three guys on a mission, and now we have an 11-person operation, and more people will be joining. I’m not looking to grow into a giant brokerage; I want to stay boutique and small and stay broker-focused. Everybody here wants to do deals. I would like to get over the $200 million mark soon, so that’s a personal target.

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FEATURES

COVER STORY: TOP COMMERCIAL BROKERS ANDREW BENNETT Nexus Investment Richmond, BC

Years as a commercial broker 36

people want to lend at. The biggest thing is educating the borrower. They always have great expectations, and they are usually the last ones to react to market changes. We still get people asking us for construction lending on recreational property, but there’s no market for that, and there hasn’t been for three years. CMP: So being able to adapt to the

Sales volume in 2015 $130 million Totals deals in 2015 18

economy’s health is key? AB: Yes. We are located in Richmond, but we are across the country. The only province we are not in is Quebec, and that’s only because I don’t speak French. CMP: What is the main focus of the

CMP: When did you first start your

business?

CMP: There have been many big changes since then. What sticks out for you?

AB: We do very little lending here. The lending that we do is primarily term lending. Most of the investors we represent are pension funds or institutional, so they want their money out for a longer period of time. We do some deals in Vancouver, but most are on Vancouver Island, Saskatchewan and Manitoba.

AB: There is always money there to lend. You just need to know what parameters

CMP: Does the Canadian economy

Andrew Bennett: Nexus has been going for 26 years; we started in 1990.

OMID JALILI OMJ Mortgage Capital Markham, ON

concern you as far as your business goes? AB: What you see is lenders are becoming much more conservative. Canada Mortgage & Housing is not really in the game anymore when it comes to term loans. We are getting loans conventionally that are a higher loan amount than with CMHC. There’s not that much difference in interest rates – you’re talking maybe 1%. They are almost becoming the insurer of last resort; you only go to them if you have to. CMP: So in that environment, is there a certain direction you want to take your business? AB: We are getting into other areas. Corporate finance, equipment leasing – we are getting more and more demands for that. We are going to continue to expand our business model. We work a lot with referrals and look after a lot of independent brokers out there. We enjoy having our independence – there are a lot of benefits in that. You are more in control of your destiny. You pay a lot of money for a franchise name, and I don’t think that is worth the money in the commercial space.

with little competition, as most brokers at the time focused on residential. Our expertise in the commercial markets led us toward specializing as commercial brokers and the nickname ‘Doctor Finance.’ CMP: What are your main challenges as

Years as a commercial broker 16 Sales volume in 2015 $60 million Totals deals in 2015 30

CMP: What made you go into commer-

cial mortgages rather than residential? Omid Jalili: I started in the industry as a residential broker, but most of my savvy clients started getting involved in real estate

development and commercial investments. I got married in 2003, and my wife was a commercial banking lender. She left her bank, and together we formed a boutique brokerage, OMJ Mortgage Capital. It was a perfect niche

a commercial broker in 2016? OJ: Banks and appraisal companies. They continue to be our biggest challenges. Banks have been more conservative over the last few years due to tighter lending policies. Another challenge is the appraisal companies, due to the dramatic increase in real estate pricing over the last year. There is a big gap between the market approach and income approach when it comes to property evaluation. Comparable sale prices have increased much more dramatically than actual rental income due to high demand for commercial properties and plazas in the GTA. CMP: Has your business been affected

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FEATURES

COVER STORY: TOP COMMERCIAL BROKERS by the volatility in the economy? OJ: When the market is strong, our business is strong, as investors are continuing to purchase property. When the market is weak, consumers still require financing, and our business is still strong. Consumers are always in need of funds, whether they are for a new purchase or an equity take-out. We have been busiest in the last three years due to all the development projects. CMP: How have you relied on changing

technology in your business?

OJ: Everything is more smartphone-friendly and web-based – from our website to social media to online marketing. Also, technology in our industry is being used to facilitate smoother transactions and improve communication with past customers and lenders. CMP: What advice would you offer to a

young broker entering the commercial space? OJ: My advice is to get mentored by an industry veteran, as commercial deals are more complicated. It requires deep analysis of tenants, cash

AMEERA AMEERULLAH Canada Mortgage & Financial Group Mississauga, ON

flow and financial statements. In the commercial industry, knowledge is strength. CMP: What are the main targets for

your business going forward? OJ: I want to continue to excel in providing our clients with sound advice and ensuring their deals gets packaged for approval while negotiating the best rates and terms for them. Also, I want to maintain strong relationships with our lenders, both institutional and private, as well as growing our online presence in the market.

also safer. In Vancouver and Ontario, that market is much more inflated because of international investment coming in, so there could be a collapse. CMP: Where do you see a lot of inter-

national investment? Years as a commercial broker 6 Sales volume in 2015 $102 million Totals deals in 2015 23

CMP: Did you work in residential before

AA: The Chinese investors are investing $1 billion in developing a trade centre. They are also proposing to build an airport. We are currently facilitating a large hotel deal in the Niagara Region for $220 million. We’re also working a world-class mixed-used project inclusive of a speedway in Fort Erie, which is over $500 million that will generate substantial revenue, create jobs and boost the economy. CMP: In regard to the markets in

Ameera Ameerullah: I started as a mortgage agent in 2001, mainly on residential.

my brokerage a lending company, so I want to fully understand the commercial side of the business. Commercial also allows you to do more internationally if you want.

CMP: What are the main differences

CMP: Is your business mainly located in

between the two?

the GTA?

AA: Well, commercial deals take longer to close. The due diligence process is much longer. The asset classes and the way you structure the deals are very different. A commercial deal could be a construction loan or a hotel or a mining project, whereas in residential, the structure of the deals is pretty much the same.

AA: No, it’s across Canada: Vancouver, Calgary, Manitoba and of course Ontario.

AA: I think the markets there will slow down in November and December. When inflation happens, the government comes up with extra rules to limit borrowing. But as far as the real estate market crashing, I don’t see that happening anytime soon.

CMP: The markets in Toronto and

CMP: You mentioned international

Vancouver receive a lot of the media’s focus. What is it like in Manitoba now?

opportunities – are you looking to expand outside Canada?

AA: It is actually coming up well. The government there is very involved with the First Nations, so there are a lot of community projects happening. Also, there is a lot more condo construction happening now in the province. It is cheaper to invest money and

AA: Yes, I would like to expand my business in the United States in particular. Right now we are looking at Ohio, New York and Florida – those are the main areas for both residential and commercial projects. We do deals already in condo construction and hotels in those areas.

becoming a commerical broker?

CMP: So do you prefer commercial? AA: I still do some residential, but I like doing commercial because it educates me more about real estate. I eventually want to make

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FEATURES

COVER STORY: TOP COMMERCIAL BROKERS TINA MU

CMP: How is business so far this

year?

Dominion Lending Centres Acer Mortgages Vancouver, BC

TM: For 2016, my volume has increased substantially. At the end of June, I already had $65 million, so I hope to increase my 2015 total a lot.

Years as a commercial broker 4

CMP: You’re based in Richmond, BC. Is your business mainly in the Lower Mainland?

Sales volume in 2015 $50 million

TM: I would say 99% of my business is here. For now, I have no plans to move outside of this market. There is a lot of activity here, and I will be able to increase my volume here.

Totals deals in 2015 20

CMP: What challenges are there in being in such a hot market? CMP: What is your background in the industry? Tina Mu: I worked with CIBC for 10 years in commercial lending. In 2010, I became a mortgage broker, but that was mainly in residential. In 2012, I switched my business focus from residential to commercial. CMP: Why did you leave lending to

become a broker? TM: There is a lot more potential with this business. If you are working for the bank, your earning potential is very limited;

also, there are no surprises until the day you retire. CMP: And why the switch from

residential to commercial? TM: My background is on the commercial side, so I knew that very well. I started with residential because I wanted to establish my business. My passion has always been with the commercial side, though; in 2012, the banks changed their residential lending policies, and a lot of clients were looking for commercial property, so I made the change.

TM: A lot of smaller financial institutions are short of funding as the real estate market has gone up. Some deals, you have buyers who are negotiating with the seller for quite some time, but the lenders don’t agree to funding. CMP: Are there any other targets you have for this year? TM: My target is $100 million and above for funding volume in 2016. I have a plan to increase my marketing capability and go out and get more deals.

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FEATURES

COVER STORY: TOP COMMERCIAL BROKERS NEIL SHOPSOWITZ

Dominion Lending Centres Commercial Capital Vancouver, BC Years as a commercial broker 11 Sales volume in 2015 $70 million Totals deals in 2015 32

NS: Originally I was a real estate lawyer in Ontario. When I first started as a broker, I did a fair amount of residential but gradually phased out of that. As a residential broker, it’s very competitive. Unless you are very well networked and you have a source to send you a deal, it’s challenging. Also, you are selling an undifferentiated product for the most part. Everybody gets the same rates. Commercial is much different. The nature of the deals and knowing who the right lenders are for certain sales, knowing what you can do on certain properties and certain markets – it requires a lot more skill. CMP: Has what you do as a commercial

CMP: Is the majority of your business

concentrated in Vancouver? Neil Shopsowitz: It’s really across Canada, but the bulk is in British Columbia, Alberta and Saskatchewan. CMP: How has business changed in

Alberta and Saskatchewan since the oil crash? NS: In Alberta, it is a lot more challenging to get anything done unless it’s in Calgary or Edmonton. The theme would be similar in Saskatchewan for Regina and Saskatoon. It’s a lot more difficult to get things done.

Alberta and Saskatchewan, Vancouver continues to be one of the hottest markets in the world. What challenges does that present? NS: Probably the biggest challenge on the Lower Mainland is with income or investment properties. Properties sell at such a high multiple of income, so investors cannot necessarily get the loan-to-value they want. Commercial properties are financed by income, so the income of the property has to support the loan. Managing the clients’ expectations is a real challenge.

CMP: Do you have any expansion plans

as you look to 2017?

commercial space?

CARL LAVOIE

CMP: You’ve been in the commercial brokerage business 30 years now. How is 2016 going, business-wise?

CBRE Toronto, ON

Carl Lavoie: Year-to-date, I’m on $96 million for loan volume from 10 deals.

Years as a commercial broker 30 Sales volume in 2015 $63 million Totals deals in 2015 16

NS: Rules tightened up way more after 2008. There was a period when the commercial side was very quiet, but that also created a lot of opportunities. We had depressed prices and record-low interest rates, which continue to be really low.

NS: You always have to market yourself. If you don’t and you get complacent, your business can dry up pretty quickly. You have to be constantly out there. It’s hard to forecast. Any type of deal can come in at any time – you just never know from day to day.

CMP: Have you always been in the CMP: Contrary to what is happening in

broker changed much in your 11 years in the business?

CMP: Have you ever been involved with the residential side of the business? CL: I started off as a residential lender with Bank of America in the ’70s. CMP: What are the main differences between the two? CL: You deal with businesses rather than individuals, so the dollar figures are higher

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with commercial deals. When you’re buying a house, you’re doing it for your family, while a professional investor is simply thinking about the dollars. I think both of them are very stressful, though. CMP: You’re based in Toronto. Is most of your business in the GTA? CL: It’s all over Canada, but I would say 80% of my business is in the GTA. CMP: Does the talk of a bubble worry

you? CL: Real estate does not always go up – we saw that in the ’80s, the early ’90s, the early 2000s. In the early ’90s, real estate values dropped for two main reasons: overbuilding in the ’80s, and the major reason was that

liquidity dried up. The restructuring of worldwide banking by the BIS meant that lenders stopped lending, and then we had a bubble. But right now we have so much money in the system. Private individuals are sitting on tons of money. The elderly have tons of money, and that is going to be petering down through inheritance. Also overseas investment from places like China – I am currently negotiating a deal with an investment buyer; he is coming to Canada to buy a $100 million portfolio. CMP: Foreign investment has been a

major factor in Vancouver’s market getting so hot. Is the same happening in Toronto?

CL: Sure. And it’s not only from China, either, but the Middle East, Mexico, Europe, the US. CMP: Why do foreign buyers see Toronto property as a good investment? CL: It’s stable and it’s growing. The population growth in Toronto is 5% to 10% every year because of migration. It’s what Richard Florida calls a city-state. Certainly the GTA, including Kitchener/Waterloo, is one of those nodes that competes favourably with anywhere in the world. CMP: What other targets or goals do you have for 2016? CL: I’m paid by fees I generate ... so I would like do at least 10% more than last year.

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FEATURES

COVER STORY: TOP COMMERCIAL BROKERS MANISH JAIN

CBRE Toronto, ON

Years as a commercial broker 3 Sales volume in 2015 $54 million Totals deals in 2015 15

CMP: You’re relatively new to the business. What made you decide to go into commercial brokerage? Manish Jain: This is my first job since I finished school at Ivey. I met my current partner, Carl Lavoie, by chance, and he asked me to come work with him. I don’t think I would have been interested in residential real estate. CMP: Why is that? MJ: Residential is a need – it is housing, and it’s a very emotional process for people. Commercial is more of an investment class,

like dealing with stocks or bonds. It’s a totally different world. People you meet in commercial are usually successful businesspeople who are looking for ways to protect or grow their capital. CMP: So it has a steep learning

curve? MJ: Yes, it’s really an investment asset class. I think anyone who can do this job could be working as a stockbroker or a financial analyst. CMP: What are the main challenges of

VIC COTTON Avenue Financial Calgary, AB

Years as a commercial broker 7 Sales volume in 2015 $70 million Totals deals in 2015 17

being a commercial broker in the GTA right now? MJ: Well, you have to be able to justify very high prices on everything and make the lenders comfortable with that. I think the biggest challenge, though, is working with extremely tight timelines. All the deals are so competitive on the buying side that we as brokers have to arrange financing in a short period. CMP: Is there anything that really surprised you about the business? MJ: The fact that some of the people at the top, really high-powered executives, are extremely kind and generous with their time. The reason is because if someone is smart and talented, and they are kind to people, they tend to do very well. CMP: What goals do you have going forward? MJ: I would like to make more strategic partnerships. At this point, my main goal is to help expand our team and help build a good support structure for processing deals. We recently added an analyst to our team. I would also like to build more repeat clients as opposed to one-offs. I would also like to move more into the publication side and write more about the industry.

CMP: How has the Calgary market been this year? Vic Cotton: I think I’m in one of the most challenging markets in Canada right now for commercial financing. Most of the banks that have their head offices outside of Calgary have actually frozen funding for offices here. So the challenge is to deal more locally, with credit unions or a treasury branch – they have sort of filled the gap. What we used to do in the past is no longer what we can do in the present. It takes twice as long to close a deal, and there are a lot more underwriting requirements on commercial transactions in Calgary. Right now the downtown market is 20% to 30% vacancy in office space. That doesn’t

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include people who are trying to sublet their own space. CMP: So how do you get funding in such an environment? VC: I have been working with the banks to formulate a plan for when buildings come up for refinancing. We have buildings downtown where the financing is up for renewal, but the building has extremely high vacancy. So we worked out a program with the banks where they will now offer things like taking the existing financing interest-only, and they will provide principal-on-interest holidays while the buildings stabilize. CMP: Can you see a recovery anytime soon?

VC: All statistics show that we are probably not going to see a recovery for three years. That’s the office component. In the retail component – with shopping centres right now, there is huge activity with a lot of buying and selling. The challenge is qualifying companies and individuals for these purchases because of the banks’ increased underwriting requirements. As a broker, we have strong relationships with the VPs of the banks and credit unions, and that provides an advantage over a client simply walking in themselves. CMP: You operate in Edmonton as well. Is there a big difference between it and Calgary right now?

the oil & gas services were in Calgary. You don’t have that concentration in Edmonton, but I think it often trails Calgary. You couple the downward trend of oil & gas with the new federal and provincial government, and you have a perfect storm of difficulty for the Alberta market. CMP: So are you looking elsewhere for loan volumes? VC: I’m actually projected to increase to $80 or $90 million this year. We are bringing in some associates who are focusing on business outside of Calgary. The majority of my time now is servicing existing clients because their need for me has never been greater.

VC: The oil & gas head offices and a lot of

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11/08/2016 9:37:06 AM

SPECIAL PROMOTIONAL FEATURE

PROFILE

Charting the course Martin Reid has never been one to back down from a challenge, but in taking on the role of Home Trust’s CEO, he follows in the wake of Home Trust co-founder and alternative lending pioneer Gerald Soloway. Here, Reid reveals his plans for maintaining the Home Trust legacy and provides insights into his vision for the company in the coming years CMP: You’ve been with Home Trust for nine years – six of those as president – so those familiar with the company likely already know you, but could you tell us a bit more about your history prior to Home Trust? Martin Reid: Before joining Home Trust, I spent over 20 years in the capital markets, primarily with Deutsche Bank and Dundee Securities. With Deutsche, I worked in both Canada and New York, serving as treasurer of Deutsche Canada before moving on to [become] director of market risk for the Americas. It’s also fairly well known that shortly before joining Home Trust, my family and I engaged in a planned sabbatical that somehow became a two-year sailing voyage, taking us to many parts of the world. This was around the time of the first Pirates of the Caribbean movie, and I guess my sons – and myself to some degree as well, I must confess – got a bit caught up in the pirate thing. Of course, all pirates must have an earring, so one day my sons and I decided to get earrings together, and I continue to wear a small diamond stud to remind

myself of that wonderful time in our lives.

CMP: What was it that convinced you to join Home Trust? MR: A former colleague was working with Home Trust, and he took every opportunity to tell me about the firm’s phenomenal leadership team and the dynamic growth the company was experiencing. Looking into the company a little closer, I could see this was a tremendous opportunity to be part of an industry leader poised to do even greater things, so I accepted an invitation to meet with Jerry Soloway and several other senior leaders. I remember being very impressed with the enthusiasm and the dedication expressed by these individuals, and I knew rather quickly that I wanted to be a part of this company. I also recall Jerry asking me several questions about my sailing trip, and it was only after I’d been with Home Trust for a while that I learned that Jerry had told the hiring committee that anyone who could manage an extended family adventure on a small sailing boat certainly had the right temperament and skills to navigate the hectic environment at

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Home Trust. Still, I’d like to think that my years of financial market experience also played a part in the committee’s decision.

CMP: It’s fair to say that Home Trust is largely responsible for creating the alternative mortgage space to meet the needs of specific borrowers. How do the principles developed back in Home Trust’s early days stand up to today’s realities? MR: Many of the principles that drove Home Trust’s early growth had their origins in the real estate crisis of the early 1990s. This was a challenging time for all lenders, but Home Trust emerged from this period in excellent shape, and with a strong and growing balance sheet, together with a mature business model that continues to serve us very well today.

“Early on, Home Trust understood the axiom that it is not the actions of the borrower that causes a loss for the lender. Rather, it is an inaccurate evaluation of the underlying collateral that leads to a material loss” www.mortgagebrokernews.ca

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11/08/2016 7:30:05 AM

SPECIAL PROMOTIONAL FEATURE

PROFILE

Early on, Jerry and the Home Trust leadership understood the axiom that it is not the actions of the borrower that causes a loss for the lender. Rather, it is an inaccurate evaluation of the underlying collateral that leads to a material loss. Borrowers failing to maintain payments obviously cause the lender to suffer arrears, but it is an inflated evaluation of the property’s value that ultimately results in a loss to the lender in the event of a default. This is why the Home Trust process places so much emphasis on performing accurate property appraisals and site inspections. Our mortgage professionals have a deep understanding of the markets in which we operate, and we continue to maintain strict policies on all aspects of mortgage originations, collections and repossessions.

CMP: In your address at the annual general meeting this past May, you mentioned that while you and Jerry Soloway were different personality types, your vision and priorities were very similar. Could you elaborate a bit more? MR: Anyone who knows the two of us will certainly agree that Jerry is very outgoing, while I tend to be a little more subdued and reflective. Each of these traits have their own pros and cons, and Jerry and I both felt our two styles complemented each other very well.

But even though our approach may differ slightly, our message was always very much in alignment and centred on our preoccupation with customer service and a robust and consistent approach to risk and compliance management.

CMP: There are some obvious challenges facing the industry now with respect to certain real estate markets and the pressures facing Canada’s important energy sector. How do you feel these will impact Home Trust over the next six months to a year? MR: Yes, there are specific economic challenges ahead, but there is never really a time when this isn’t the case. In difficult times, we worry about the impact of rising unemployment and weak growth, while in better times, we worry about inflation and rising prices. As leaders, it is our responsibility to never make assumptions and to always be prepared for the worst. For instance, the current level of frothiness in the Toronto and Vancouver real estate markets means that we must be prepared for an eventual downturn, even if it translates into little more than a levelling off from the present levels. Overall, we continue to see the markets as healthy but recognize the need to be ready to make adjustments as necessary. Looking at the larger economy, despite

“As leaders, it is our responsibility to never make assumptions and to always be prepared for the worst. Overall, we continue to see the markets as healthy but recognize the need to be ready to make adjustments as necessary” 40

what is happening in parts of Western Canada, overall, the country is still enjoying relatively strong fundamentals with good employment numbers and strong demand for single-family homes. In fact, there continues to be a severe shortage of singlefamily homes on the market, and demand will likely continue to outpace supply for the remainder of the year.

CMP: What is your top priority for 2016? MR: My top priority for this year is to continue to work on optimizing our service levels. Following the broker origination problems last year, we have been very open and transparent regarding the actions we’ve taken to ensure this does not happen again. Without a doubt, this event was one of the greatest challenges in my time at Home Trust, and I take great pride in how, as a company, we acted quickly and resolutely to acknowledge and address the matter. As part of our service enhancement plans, we also implemented a series of internal changes, including a realignment of our originations and underwriting teams. We are seeing the benefits of these moves now, but we still have some work to do to get our service levels back to where they need to be for our broker partners, and while we’ve made great progress, I’m personally committed to further improvement. Other tangible moves we’ve made to better serve the broker community include the launch of both Spire, a performancebased broker compensation program, and Loft, a web portal designed to make it easier for brokers to connect to Home Trust and manage all their deals. I am very excited about these initiatives and believe both programs will continue to build on the service commitments we’ve made to our broker partners.

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11/08/2016 7:30:09 AM

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PEOPLE

BROKER INSIGHT

It’s about value, not commodity CMP caught up with Ron Lefebvre to talk about getting into the industry, his secrets to success and the challenges of finding work-life balance

CMP: How did you get into the mortgage industry? Ron Lefebvre: It was a combination of my passions for real estate and working with numbers that got me into the mortgage industry. I was contemplating going to university to get my accounting degree and was in the process of applying for school when my mortgage broker and a good friend of mine who’s a real estate agent both said that I’d do well in the business. That’s when I decided to get my licence, give it a try and see where it went – that was in 2009.

CMP: So what was it about the mortgage business that convinced you to abandon the accounting degree? RL: I do like the challenge, but I mostly enjoy being able to help people and see the satisfaction they get at the end of the transaction. The feeling of helping people into their first home or first investment property – and knowing they’ve gone into it with a whole lot more knowledge than they originally had – is really what drives me to keep on doing it.

CMP: You’ve achieved much success since you entered the industry. What’s your secret? RL: Knowing my value proposition inside and out and then targeting clients that I think would appreciate it. I’ve never been one

to sell myself on the commodity, which would be rate; I sell myself on my expertise and my ability to help my clients know exactly what type of mortgage is best for them. When my clients call me, I don’t just say, ‘Here’s the mortgage you’re approved for, now off you go.’ We go through a strenuous series of questions to get to know the client, to understand their needs and what their life will have in store over the next one, three, five and 10 years. We then find the mortgage that is most suited to their lifestyle.

CMP: What’s the most challenging part of the business, in your opinion? RL: The most challenging thing is dealing with a client who is taking advice from someone who is not qualified to give that advice. It’s also challenging dealing with people who don’t want to learn and people who have a hard time trusting professionals.

CMP: How can brokers differentiate themselves from the competition? RL: Educating people. Brokers are able to provide clients with education on the difference between each lender, and they should be doing that. We’re able to present five different fixed-rate mortgages and their different terms and conditions, and then work out which is the best for that client. If you walk into your bank, you can’t get that.

CMP: Do you feel there’s anything that more brokers should be doing? RL: Yes – servicing their clients postmortgage. That’s one thing that I’ve done since day one – keeping in touch, and not just with regular mailers and marketing pieces. Brokers should truly keep in touch with their clients and do annual reviews to see if there is an opportunity to save them money. I do several deals a year just by reviewing

LEFEBVRE ON DIVERSIFICATION “I’m starting to see brokerages offer ancillary products to mortgages, such as life insurance products, financial planning services, and home and auto insurance. That’s the shift I’m starting to see – we’re starting to be able to offer more products to our clients. I think it’s definitely a good time to be in the industry. I got into the business when the market had completely crashed. When I look at the environment that we’re in right now, there’s so much more opportunity.”

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RON LEFEBVRE’S CAREER HIGHLIGHTS

2004 Gets a job as a heavy equipment mechanic for a construction company in Edmonton

2009 Becomes a mortgage broker and funds just more than $20 million in his first year

2011 Achieves $28 million in volume

“Brokers should truly keep in touch with their clients and do annual reviews to see if there is an opportunity to save them money. I do several deals a year just by reviewing my clients’ mortgages.” my clients’ mortgages. It’s a win-win because I’m saving my clients a ton of money and, in turn, I’m funding new mortgages. I find that a lot of brokers are too focused on chasing that next deal instead of focusing on their existing clients.

CMP: What do you get up to in your spare time? RL: I’m married with a young family – I have

a three-year-old son, a one-year-old son and a third on the way in September, so I try to focus a lot of my efforts on work-life balance. When I go home, I literally shut work off; I’m there to spend quality time with my family. I also like to golf and spend time hiking in the mountains. I try to make sure that my time away from work is actually quality time and that I’m not looking at my emails and checking my phone.

2012 Wins the Best Newcomer Award at the Canadian Mortgage Awards

2013 Achieves $45 million in volume

2016 Named to CMP’s Top 75 Brokers list for the fourth year in a row

2016 Selected as one of CMP’s Young Guns for the second consecutive year

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SPECIAL PROMOTIONAL FEATURE

SYNDICATED MORTGAGES

Setting the record straight about syndicated mortgages The recent media spotlight on syndicated mortgages has left the public (and regulators) confused about what they really are – and, writes David Mandel, it’s time for the industry to change that perception IN APRIL, Dana Flavelle, a reporter at the Toronto Star, sounded the alarm on ‘syndicated mortgages’ – largely, if not wholly, based on her investigation into the pooled mortgage investments offered publicly to finance projects by Fortress Real Developments. A few days later, Maclean’s magazine came out with an article entitled “Just how safe is the ‘safe’ world of syndicated mortgages?”, which also raised concerns about so-called syndicated mortgages. The media – and even some of our regulators at FSCO and the OSC – have imputed ‘high risk’ into the broader meaning of syndicated mortgages. This could pose a very dangerous proposition for our industry. These groups make little differentiation between mortgages syndicated for the purpose of providing mezzanine lending for development projects and all other syndicated mortgages. Therefore, in the minds of non-industry participants, it appears that all syndicated mortgages are created equal. This could have major consequences for our industry if not addressed.

What is a syndicated mortgage? A syndicated mortgage is, quite simply, any mortgage in which two or more individuals participate as lenders in a single mortgage.

That mortgage could rank as a first charge (‘mortgage’), second, third, fourth, or even fifth or higher charge on the security of real estate. The words ‘syndicated mortgage’ do not define or relate specifically to any of the risks associated with a mortgage investment, including risks associated with and governing the rights of each of the participants in the mortgage. In fact, the term does not speak to risk whatsoever. A syndicated mortgage can

syndicated for that purpose. So why define the development/construction/preconstruction mortgage investment for a development project as a syndicated mortgage? Why not use the term pooled mortgage investment [PMI]? Perhaps the reason is because it was simpler, or perhaps because it sounds sophisticated enough for those who sell them to investors to diminish the real risks associated with early-stage real estate development loans. Regardless,

This neglect to properly differentiate syndicated mortgages from mezzanine mortgage loans is to the detriment of the public, and potentially the future of our private mortgage lending industry be a mortgage on a home, a trailer park, a cottage, an apartment building, an industrial building, a hotel, a cemetery, a farm, development land, or a residential or commercial condominium. Yes, it could be for the development or construction of any one of these types of property as well, but it does not specifically or necessarily have to be

there is a large disconnect between what the media – and possibly many of our regulators – know or say about the risks associated with syndicated mortgages. None of them seem to properly address mortgage risk among different types of syndicated mortgages, or else they are purposely avoiding this important issue.

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The proper name for these high-risk mortgage investments for real estate development or construction is ‘mezzanine mortgage loan.’ A mezzanine mortgage loan can be defined as a mortgage relating to or denoting secured, higher-yielding loans or mortgages that are subordinate to bank loans and other secured loans but rank above equity. This neglect to properly differentiate syndicated mortgages from mezzanine mortgage loans is to the detriment of the public, and potentially the future of our private mortgage lending industry. All types of real estate can be mortgaged. One financial structure for funding a mortgage is syndication – hence, the term ‘syndicated mortgage.’ Other financial structures to facilitate mortgage investments and funding

are PMIs, which are facilitated by a mortgage investment corporation [MIC] or mortgage trust structure. However, the risk associated with a mortgage investment is defined by the underlying asset securing the mortgage, the terms of the mortgage contract or charge, the history and experience of the borrower, the creditworthiness of the borrower and guarantor, the availability of proper property insurance and title insurance, the expertise of the lawyer closing the transaction, the location of the property, the availability of debt coverage, the key underwriting data (including loan-tovalue ratios, loan-to-cost ratios and real equity rather than appraisal surplus), and more than a dozen other factors. The act of syndication or other pooling of funds has little to do with defining the

risk of a mortgage investment, except for the required use of a document or agreement to govern the rights and actions of the participating investors. Mortgage syndication more specifically refers to a structure for bringing several investors together in a single mortgage investment secured by real estate. The investor has direct participation in choosing each individual mortgage investment. A PMI, on the other hand, refers to a pool of mortgage investments where the investor generally has little, if any, say in the mortgage investments funded. In a PMI, the investor relies on fund managers to oversee all mortgage investments. Let’s not forget that banks, credit unions and trust companies syndicate mortgages between themselves, and even with private mortgage lenders. For them, the sharing or syndicating of mortgages is largely practiced to limit exposure to a single borrower, or to stay within lending limits set by institutional regulators. The fact that these mortgages are syndicated has nothing to do with the risks of the actual mortgages themselves. The media, however, has propagated the definition of syndicated mortgages to include high-risk mezzanine mortgage lending for high-rise residential condominiums and other early-stage real estate development projects. The articles noted earlier spoke of a number of specific mortgage syndications, but did so in some cases without qualification or reference to a required broader definition. A simple first or second mortgage on a residential home funded by a syndication of a mortgage broker, his friend and a few family members is nothing like the syndicated mortgages such as those portrayed by the media in recent articles. Not only is the public being trained to accept this definition of syndicated mortgages, with high risk imputed, but it appears the regulators may have as well. This is misleading and has consequences for the private mortgage industry in Canada, which often syndicates investor money to fund mortgage investments, or pools funds in a PMI such as a MIC or mortgage trust.

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SPECIAL PROMOTIONAL FEATURE

SYNDICATED MORTGAGES

COMPARING RISK To better understand how risk varies, let us compare the ‘capital stack’ of these very different mortgages. EXAMPLE 1 A simple syndicated residential or commercial first mortgage On the title after closing: First mortgage The borrower’s equity: Typically 15% to 25% or more EXAMPLE 2 A mezzanine mortgage loan for development of a multi-residential building (or what the media is currently calling a ‘syndicated mortgage’): On the title after closing: • A first mortgage (land or construction) • Possibly a second mortgage (could be for land servicing) • A third mortgage securing the city for completion of development works • A fourth mortgage securing a deposit insurer (allows the builder to use the proceeds of purchaser deposits in reduction of otherwise borrowed funds to be included in the construction budget) • The ranking of the subject mezzanine syndicated mortgage could become a fifth ranked mortgage – or fourth if the deposit insurer will agree to postpone behind the mezzanine mortgage loan • In sixth place may be a mortgage to secure the borrower’s equity, if any The borrower’s equity: Often 0% to 20% – this will vary depending on prior charges and where the project is in the development/building process

Where’s the harm? The risk profile of the two mortgages outlined at left is not remotely alike. However, the media may have the public buying into the more risky of the two scenarios as the definition of a syndicated mortgage investment – and likely the regulators are too. FSCO recently singled out syndicated mortgages as an “area of concern.” The Maclean’s article mentioned earlier candidly quoted FSCO saying that, while compliance among mortgage brokers has improved in recent years, it intends to conduct a more detailed investigation of syndicated mortgage transactions over the next 12 months, “given

Competition will be largely diminished, and private lending rates will rise, to the detriment of all consumers. This includes, but is not limited to, the house-buying consumer who needs a second mortgage or a shortterm bridge loan, the small builder whom the banks won’t lend to, the small businessperson seeking their own office, and anyone who has been turned down by an institutional lending system that has moved away from commonsense lending to automatic credit scoring and adjudication. And what about those seniors or retirees who, on limited savings, require a higherthan-GIC rate of return to keep a roof over

Unless we as an industry speak to the media, the deceived public and the regulators, we can be assured that future legislation, regulations and oversight will be applied with a broad brushstroke the significant risk syndicated mortgage investments pose to consumers.” In addition, a recent mandate review of FSCO for the Minister of Finance recommended that “the government should require that documents issued to raise capital for syndicated mortgage investments be subject to the same level of regulation as the securities regulator applies to other offering documents used to raise capital in the province.” Unless we as an industry speak to the media, the deceived public and the regulators, we can be assured that future legislation, regulations and oversight will be applied with a broad brushstroke. Reporting requirements, red tape and costs will become prohibitive for small lenders, and established, successful, lower-risk private lenders and mortgage syndicators will be annihilated. The result will be detrimental – this robust economic stimulator of private mortgage lending through syndications will cease, and only a few larger lenders will survive.

their heads and food on the table? There is a huge population of elderly investors who rely on participating in lower-risk, common-sense syndicated mortgage investments provided by trusted mortgage brokers. The ramification of a further failure to educate the public, the media and our regulators of the improper use of the term ‘syndicated mortgages’ is huge. When you combine this with a potential large-scale failure by any of the companies the media has focused on, this could spell the demise of private lending as we know it. It is therefore up to us to educate the media and the public, and preserve a very important part of our industry and economy. David Mandel is the president of First Source Mortgage Corporation,a private commercial real estate mortgage lender and syndicator offering flexible term and construction lending solutions serving mortgage brokers and agents in southern Ontario.

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FEATURES

PERFORMANCE

Understanding personality and its role in performance When it comes to performance â€“ a topic that is constantly on the agenda of most modern businesses â€“ there are a number of different approaches, explains behavioural strategist Warren Kennaugh

ONE APPROACH to performance is to focus on the talent â€“ we are told that if we are serious about improving performance, we need to find and keep talented individuals who will somehow elevate everyone else around them. As a strategy, however, this is not very effective. Enron is an example of a company that took the talent solution to heart, and look what happened to them. Plus, this approach is expensive, timeconsuming and divisive. It puts a huge amount of pressure on the individual who is supposed to single-handedly turn things around, and at the same time alienates the rest of the workforce, who are clearly viewed as second-class citizens. The alternative approach is to focus on team performance with the understanding that if everyone lifts their game just a little, then collectively, performance improvements will materialize. Teams may even be sent on team-building or training programs to help facilitate this outcome.

Polarities, not problems What we first need to appreciate is that individual performance and team performance are not separate problems to be solved; rather, according to consultant Barry Johnson, they are polarities to be managed. Polarities are

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ongoing, chronic issues that are unavoidable and unsolvable. And often, attempting to address them with traditional problemsolving skills only makes things worse. Team versus individual performance is a classic example of a polarity. When faced with performance problems, most business leaders will favour one type of intervention over the other – hire more talent or invest in team-building. The reality, however, is that elevated performance is dependent on individual contribution and collective effort, not one or the other. Too much focus on individual performance may drive greater individual initiative and creativity, as well as fewer and shorter meetings, but it may also simultaneously activate the downside of individual focus – operating in silos, increased internal competition, and no shared goals or synergy. Too much focus on team performance, on the other hand, may create more cohesive units, but at the same time decrease innovation, increase conformity and slow down decision-making. By seeing team and individual performance as two separate problems, we engage in the ‘polarity two-step’ – we recruit expensive, talented individuals to solve the individual performance issue, only to inadvertently impair team performance by doing so. And when we ‘solve’ team performance by facilitating greater cooperation and cohesion, we can inadvertently stifle the high performers in the team. This endless swing from individual to collective focus and back again is timeconsuming and costly. And, perhaps most importantly, it continues to ignore the importance of personality on performance.

Personality and performance When we look at individuals, we see a seemingly infinite array of complex and unpredictable thoughts, emotions and behaviours. This apparent randomness is often so daunting and confusing that personality is considered fodder for the ‘too hard’ basket. So it’s little wonder that everyone sticks with performance improvement theories that are based around individual or collective behaviour. However, behaviour is massively influenced by personality. Sure, if you want to get

people to do different things or get them to do those things better, you can occasionally alter that behaviour through rewards, incentives or threats, but it’s usually unsustainable. When no one is looking or the bonus cheque has been banked, they will revert to type and go back to doing what comes naturally to them based on their own unique personalities. When we uncover specific personality markers – namely, ‘inside,’ ‘bright side’ and ‘dark side’ characteristics – we give ourselves the power to orchestrate fit. Fit is the key to elevated consistent performance. The more our natural strengths, characteristics, skill

the right time and in the right place most of the time. By contrast, an average or inconsistent performer is not aware of exactly what those behaviours are, so they are either deployed inconsistently or deployed in a role or environment that doesn’t need or value those particular behaviours. As a result, performance is often down to chance. This is why sports are so littered with superstitions. In the absence of any real insight into what makes a player good or bad, they fall back on lucky socks and quirky pre-game routines. What we so often fail to appreciate is

Elevated performance is dependent on individual contribution and collective effort, not one or the other set and values fit with what is required in the role and fit with the culture and organization itself, the higher the performance will be. ‘Inside’ personality characteristics help to identify what naturally motivates and inspires us. Clearly, if what we are required to do in our role is something we are already motivated by or value, then incentives or threats are unnecessary. ‘Bright side’ personality characteristics describe us on our best days. These are our natural strengths and dispositions, which can indicate behavioural strengths. And our ‘dark side’ characteristics are the behaviours that show up when we are under pressure or stressed – they can easily derail our career unless we know about them and take steps to mitigate their impact. What I’ve found across more than 3,000 profiles of elite performers and by working in this area for over 23 years is that everyone has four or five behaviours that evolve as a result of their unique personality. These patterns of behaviours are the way we have learned to ‘get along,’ ‘get ahead’ and ‘make meaning’ in the world, and we will use those same four or five behaviours consistently. The only difference between a high performer and everyone else is that a high performer knows what their bespoke behaviours are, or simply deploys them innately at

that behaviour is behaviour, and it rarely changes. Whether that behaviour manifests as a value-adding asset or a career-limiting liability largely depends on how and where it’s used and, therefore, whether we achieve fit or not. High performance is not so much about what you do; it’s about how you do what you do, why you do what you do and where you do what you do. In fact, the only important consideration regarding what you do is what you do to screw things up. We don’t need performance coaches to foster talent in every separate area of our life. What we need is a genuine awareness and understanding of our ‘inside,’ ‘bright side’ and ‘dark side’ characteristics so we can match the best of who we already are to a role and environment that values that contribution. When we do that, the result is consistent, repeatable high performance.

Warren Kennaugh is a behavioural strategist who works with elite corporate leaders, gifted professional athletes and world-leading teams. He is a speaker, researcher and consultant who is the author of FIT: When Talent and Intelligence Just Won’t Cut It. Find out more at www.warrenkennaugh.com or wk@ warrenkennaugh.com .

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FEATURES

COMMUNICATION

The 10 most common blocks to becoming a remarkable communicator How can you become that person who leaves their mark on others through inspirational and memorable conversations? Georgia Murch reveals what to avoid REMARKABLE CONVERSATIONS are those that people can’t stop talking about. We remember the clarity, ease and the great outcomes that come about. Often those people we have the most inspiring conversations with are also, unsurprisingly, the remarkable leaders – of people, of projects or ideas. We all know someone who is brilliant at communicating. At a dinner party, their profound input may silence all diners. At the work table, somehow their contribution seems to be worth more. So, what are some of the faux pas that prevent the less impressive communicators from doing it well? After 20 years of working with people and leaders, this is where I too often see people limit themselves, their relationships and the outcomes they are looking to achieve.

Having ‘yoursations,’ not conversations

One of the greatest gifts you can give someone is not your advice, but your undivided attention. To listen – really listen. The goal is to expand the conversation, not to narrow it. A good conversation is like a tennis rally – back and forth. For communicators taking up more of the airtime in a conversation, it is time to learn that these are known as ‘your-

sations.’ Yoursationalists could practically have these discussions without the other person present.

Making little effort to search for the ‘real truth’

Coming to a conversation or business deci-

sion thinking you have all the facts is as pointless as going to relationship counselling on your own. When you’re the only one contributing, or are only prepared to listen to your side of the facts, you are more likely to reach flawed outcomes as a result. After all, you’re only focusing on number one rather

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than considering all the factors and opinions surrounding you. It is a combination of what you know plus what they know that leads to great decision-making, remarkable outcomes and deepened relationship-building.

developed the courage or the right interpersonal skills to discuss the real issue. Or sometimes we interpret the issue incorrectly.

Having a need to be right

We all have a view of the world based on our upbringing, culture, faith, community, age, etc. This then forms how we perceive information, people and circumstances. These lenses, or boards of directors [BODs], skew how we see things. The BODs tell us that our interpretation of life, people and situations

When your desire to win the conversation or need to be right dominates the agenda, then you are likely to steer the conversation in the way you need with no real regard for the damage along the way. If you are not prepared to be honest with yourself,

Letting the ‘board of directors’ in our head do the thinking

A good conversation is like a tennis rally – back and forth. For communicators taking up more of the airtime in a conversation, it is time to learn that these are known as ‘yoursations’ then how can you expect others to be honest with you? Being right becomes a lonely existence in which very few people trust you and even fewer want to work with you.

Not placing enough value on making others feel ‘safe’

Maintaining safety in a conversation is the difference between an outcome and an outbreak. When both parties feel safe enough to be honest with each other is when you reach the best outcomes and preserve – or in some cases restore – great working relationships. When we feel stressed or unsafe in a conversation, physically or emotionally, we have a stress reaction and show fight-orflight behaviours. This leads to an unhealthy exchange that gets worse rather than better.

Neglecting to highlight the real issue

Most people don’t feel confident enough to go straight to the heart of the problem. As a compromise, they sugarcoat it or walk around it in the hope that the other person will do the heavy lifting and see the truth hidden underneath. This could be because we have not

is the right one. But what if they are wrong? They often are. These BODs in our head dramatically influence how we approach conversations before, in the moment and after the fact. They take away our objective thinking and often steer us away from ideal outcomes.

Taking others at face value

Leading with opinions and feelings, not just the facts

Because of our internal board of directors, we often decide whether someone is right or wrong based on our own perceptions. We look at someone’s words and behaviours and judge them. We only see what they say, what they do and how they look. But this is not who they are. This is often only a small percentage of what’s going on for them. We don’t make the time to consider this.

Often we find it difficult to decipher the difference between the facts and our own opinions and feelings. So we lead with our feelings and opinions in a conversation and wonder why things go wrong. Therefore, it’s easy to understand that when we open

conversations with our ‘facts,’ it’s logical that the other person is not going to effectively take the new information on board.

Using honesty as an excuse to verbally assassinate

Those four words: “I’m just being honest.” They seem to give some people permission to say precisely what they think. When we practice this type of honesty, not only will we see our trust and respect bank being depleted, but also the ‘discretionary effort’ bank, too – regardless of whether we are friends or work colleagues. It will seem as if we don’t want to go the extra distance for these people anymore. They have hurt us. It’s our own moral compass that we need to take ownership of.

Not knowing how to selfmanage in the moment

Are you a lover or a fighter? Do you run and hide or always have to have the last word? Either way, knowing how you react puts you a step ahead when it comes to self-management in a loaded conversation. Most people don’t recognize their reactions until it’s too late. Alternatively, if they do, many have not yet developed a ‘toolkit’ to be able to self-manage in the moment. If conversation is the relationship, then how we manage ourselves during that interaction is everything. While the above 10 are the most common blocks to creating outstanding communication, they are not mountains to climb. The good news is that people can learn the skills and self-awareness to create outstanding relationships and become the people that others want to follow. I have seen it happen, and it creates a shift in cultures that is tangible.

Georgia Murch is an expert in teaching individuals how to have tough conversations and create feedback cultures in organizations. She is the author of Fixing Feedback and a highly engaging speaker. For more information, visit www.georgiamurch.com or email georgia@georgiamurch.com.

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FEATURES

PRODUCTIVITY

How to boost your productivity in three easy steps To truly work effectively today, writes Dermot Crowley, it’s critical to harness the power of technology and to use it in a coordinated way to manage three core aspects of your work – your actions, your inputs and your outcomes

WE ALL complain about being busy: too much to do, too many emails, too many meetings. Our modern workplace demands so much from us. Technology promised us an increase in productivity that never really eventuated. You may have all of the high-tech productivity tools at your disposal to help you plan your time and manage your priorities, but are you really leveraging this technology to meet the challenges of the 21st century workplace? Are you working smart?

Centralize your actions

Most of us made the transition from paper planners to electronic calendars more than a decade ago. We have one place where we centralize all of our meetings, and we collaborate with other people’s schedules using an electronic scheduling system. Yet, when it comes to the other side of our activity management and task management, most of us are still very reliant on paper systems, and tend to manage our priorities in fragmented, ineffective piles – piles of emails in our inbox, piles of paper on our desk, piles of actions in our notepad and piles of thoughts in our head. No wonder we are stressed, reactive and behind the eight-ball. One of the most powerful ways of getting

in control of your priorities is to embrace technology and centralize all of your tasks into the task system that sits alongside your calendar in your scheduling tool. Most organizations use Microsoft Outlook, Lotus Notes or Google Calendar as their email and scheduling tool. All of these tools have powerful task systems built into them, yet few people use electronic task systems to manage

for managing your actions, you need to think about how you deal with inputs. You probably receive many inputs every day – emails, paperwork, phone calls, interruptions, meeting actions. Inputs present a number of challenges for the modern worker. First, there is the volume. Where a few years ago, 100 emails per day was a lot, now 300 per day is common.

The secret to staying on top of your incoming work is to treat your inbox like a mailbox. It is simply where you receive emails their priorities. It’s time to pull yourself into the 21st century! The benefits are huge. You will be able to schedule tasks by date and create action lists for specific days. This will ensure you manage your priorities more proactively, and will help you to balance your meeting and task workloads. Best of all, as many of your actions are driven by email, you will be able to schedule emails into your task list or into your calendar for action at the appropriate time.

Organize your inputs Once you have a solid system in place

Second, the way most people tend to manage these inputs is problematic. Many of us have hundreds (if not thousands) of emails piled up in our inboxes. We desperately try to stay on top of the pile, marking emails unread or flagging them to maintain visibility of the emails that still need our attention. But it just causes stress, reactivity and missed deadlines. The secret to staying on top of your incoming work is to treat your inbox like a mailbox. It is simply where you receive emails. It should not be used as a to-do list or a filing system. It should be cleared to zero at least once per week. When you process your

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emails, be decisive. Delete what you don’t need. File the things you are finished with but feel you need to keep (and remember that a few well thought-out folders will be quicker and more effective than a complicated filing hierarchy). Delegate anything that is not a good use of your time. Most importantly, schedule your actions into your task list or calendar rather than keeping them highlighted in your inbox. This will give you greater control over your actions, as you will be managing the priority within the context of your time.

Realize your outcomes

How often do you feel like your job has become a series of endless meetings and emails? What about the time you need to work on the really meaningful work? That time just seems to evaporate or get stolen by somebody else’s urgent crises. While meetings and emails are a critical way of getting stuff done, your ability to deliver in your role requires more. It requires time to think, to plan and to work on

the activities that are driven by your outcomes, rather than just your inputs. Many executives I work with complain about not being able to find time for the important work. But you will never find time for this – you have to make time in your schedule. You need to proactively schedule time for the important stuff and then protect it fiercely. You should protect it from the other people who want to steal your time away, but also from yourself, as it is easy to procrastinate over the more complex work that contributes to our outcomes. The best way to create a connection between your outcomes and your actions is to invest time in personal planning. Sometimes we need to stop doing and take some time to plan and prioritize. Having a robust weekly planning routine in place is a good way to build a habit around this. Each week, review last week, organize next week, anticipate what is coming up and realign your priorities with what you are trying to achieve – your outcomes.

Tools like Microsoft Outlook are seen as email clients, but they are so much more. They are designed to help you manage your actions, inputs and outcomes. If they are used in a coordinated way, they can give you the leverage you need to stay productive in the modern workplace. Nelson Jackson once said, “I do not believe you can do today’s job with yesterday’s methods and be in business tomorrow.” I would also suggest that we cannot do today’s job with yesterday’s tools and be in business tomorrow. Technology has contributed to our productivity challenges over the past decade, and it can also be a part of the solution – but only if we learn to use it in a smart way.

Dermot Crowley is a productivity thought leader, author, speaker and trainer. He is also the author of Smart Work. For more information, visit dermotcrowley.com.au or email dermot. crowley@adapttraining.com.au.

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PEOPLE

CAREER PATH

CAPTAIN OF HIS OWN SHIP If there’s one strand that runs through James Laird’s career to date, it’s a desire to chart his own course

2004

While pursuing a business degree at Queen’s University, GETS AN Laird owned and operated a painting INTRODUCTION franchise in his hometown of Ottawa TO BEING AN during the summers; the practical ENTREPRENEUR real-life experience offered him a taste 2006 of entrepreneurship that informed his TRAVELS THE WORLD career to come “Today, I still rely on the lessons I learned running my An exchange semester in Australia at a university on the aptly named Gold painting company” Coast lent itself to surfing and trips to Fiji, as well as a sojourn in Europe in the two months between the end of the Northern academic year and the 2007 beginning of the Southern equivalent PURCHASES OXFORD FRANCHISE “That eight or nine months to see the world was the least caught up in work I think I’ve ever been” After graduating with honours, Laird deferred an offer to become a chartered accountant with PriceWaterhouseCoopers in favour of exploring entrepreneurial opportunities; he ultimately chose to buy an Oxford Learning 2008 Centre franchise with a partner BUYS INTO TRUE NORTH “I knew that the accounting route would always be there, so I decided to explore A presentation on the business pitch show Dragon’s Den exposed Laird to True the small business world” North Mortgage at a time when the Calgary-based startup was still a one2009 location, two-employee affair. Despite having no mortgage experience, Laird EXPANDS TRUE NORTH made a deal to buy 24% of the company in late 2008 – an inauspicious time for investing in housing In Laird’s time as COO of True North, the brokerage grew to nine “The credit crisis did cause me to reconsider; locations in five cities across Canada, with more than 30 fullhowever, I executed the buy-in after a time staff. The company was named one of the fastest-growing conversation with my dad. He said, ‘This in Canada and won Mortgage Brokerage of the Year at the CMAs down cycle won’t last forever. You should “There were challenges – when I was 24, I actually had to hire a still go for it’” broker to work for me so that the brokerage could be licensed in Ontario – and I had to do the same in Quebec”

2014

LAUNCHES CANWISE FINANCIAL Laird launched Canwise with a staff of five, operating out of Toronto. Still less than two years old, the ‘technology-enabled brokerage’ has expanded to four offices across Canada and a full-time staff of 28

“I still believe in a full-service brokerage, not a do-it-yourself setup. Some models are trying to get the consumer to do everything from start to finish. We take [the consumer] from the initial research stage to close”

2010

CO-FOUNDS RATEHUB INC. Laird’s knowledge of the industry provided the impetus and much of the setup for the comparison website; he put the shareholders together and helped co-founder Alyssa Richard get the technology company off the ground “Consumers were doing more and more mortgage research online – our inquiries were coming in through our web application forms; fewer were coming in through our physical locations. I thought to myself: Who’s not going to research online when they’re doing their mortgage?”

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Insuring what matters most.

National Bank offers title insurance on mortgage loans including the All-In-OneTM to protect from unforeseen events.

Talk to one of our experts, or visit nbc.ca/mortgage for complete details.

TM National Bank All-In-One is a trademark of National Bank of Canada. Financing is subject to credit approval by the National Bank. Certain conditions and restrictions apply.

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PEOPLE

OTHER LIFE

ON ICE Seeing his young charges excel is Don Stoddart’s reward for his years of volunteer work DON STODDART’S involvement with the Brampton Canadettes Girls Hockey Association began when the mortgage broker checked a box on the form asking for volunteers when enrolling his four-year-old-daughter in hockey. “That was 17 years ago,” says Stoddart, who has been president of the association for the last five years and holds the record as the longest-serving board member.

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

That simple form led to roles as diverse as treasurer and ice scheduler, as well as a 16-year coaching stint, where he trained kids as young as four – including, in those early days, his own daughter. (“It turned out pretty good,” he says. “She’s down in the States on an NCAA scholarship.”) It’s demanding work, especially as one of Stoddart’s initiatives, the Brampton Canadettes scholarship program, which recognizes achievements in academics and athletics with financial assistance for post-secondary education, necessitates year-round fundraising. But, he says, the kids make it all worthwhile. “It’s so nice to deal with young people who have everything in front of them. It’s so nice to know you’re impacting their lives in a positive way. I do it for the kids.”

Number of Canadettes who have gone on to the NCAA or CIS

$20,000

Amount raised yearly for the Canadettes’ scholastic assistance program

600

Number of games played at the Canadette-hosted Easter Tournament

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