CMP 12.01

MORTGAGEBROKERNEWS.CA ISSUE 12.01 | $12.95

HOT LIST Our annual guide to 45 of the industry’s most sizzling players

HOUSING MARKET FORECAST 2017 What effect will last year’s changes have on this year’s market?

00_OFC Spine-SUBBED.indd 2

BETTER BUSINESS THROUGH TECHNOLOGY Why you can’t afford to wait any longer to invest in CRM software

THE IMPORTANCE OF TITLE INSURANCE How to make sure your clients are protected from unpleasant surprises

26/01/2017 8:29:11 AM

Borrowers want

Insight

Savings

Advice

Convenience

Choice

Experienced partners

Peace of mind

Service excellence

Platinum Service from FCT

To learn how to differentiate your services, and for a list of participating lenders, visit u FCT.ca

I 1.855.500.3565

ÂŽ Registered Trademark of First American Financial Corporation. Services by First Canadian Title Company Limited.

17-005 CMP ad_v6.indd 1 01-03 IFC_Contents-SUBBED.indd 1

2017-01-13 11:17 26/01/2017 8:30:16 AMAM

11:17 AM

ISSUE 12.01

CONTENTS

28 HOT LIST 2017 COVER STORY

During a roller-coaster year for the mortgage industry, these 45 standout professionals managed to come out on top

HOW PLANS BECOME SQUARE FEET. Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $1.7 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $4M to $100M.

Blake Cassidy or Pierre Leonard | 800 494 0389 | www.romspen.com

DATE:

01-03 IFC_Contents-SUBBED.indd 1

DECEMBER 20, 2016_3:40 PM

License # 10172

LIVE: 7.5” x 2.875”

8.25” x 3.625” www.mortgagebrokernews.ca 1 x 4.125” TRIM: BLEED: 8.75”

AD NUMBER: ROM CMP 17 01

COLOUR: CMYK

AD / JOB TITLE: SQUARE FEET

CLIENT:

PUBLICATION / RUN DATE: CMP / JAN-FEB-MAR 2017 ISSUES

CREATIVE TEAM: BENSIMON/PARKER

ROMPSEN

B E N S I M O N PA R T N E R S 4 4 6 S PA D I N A R O A D , S U I T E 2 0 7, T O R O N T O , O N TA R I O , M 5 P 3 M 2 , C A N A D A

T E L . 4 1 6 5 9 7 9 7 0 0 FA X . 4 1 6 5 9 7 9 7 0 7

26/01/2017 8:30:24 AM

ISSUE 12.01

CONNECT WITH US Got a story or suggestion, or just want to find out some more information?

CONTENTS

twitter.com/CMPmagazine plus.google.com/+MortgagebrokernewsCa facebook.com/MortgageBrokerNewsCA

UPFRONT 04 Editorial

Always be prepared – especially this year

06 Statistics

A look back at the impact of 2016

48

08 Head to head

Exploring the disconnect between foreign buyer statistics and anecdotal evidence

FEATURES

44 24 FEATURES

FLIP THE SWITCH

FRAUD, FLAWS AND FOLLIES

Why title insurance is a must for every mortgage transaction

50

10 News analysis

Is the Vancouver market really in such a dire state?

C

12 Residential update

M

CREA warns of a continuing downward trend in home sales

Y

14 Commercial update

CM

How the rise of fintech might impact commercial real estate

16 Opinion

Technology is no longer merely an option for brokers. Find out how CRM software can help you stay in the game

New regulations could hurt the very people they’re supposed to protect

MY

CY

CMY

K

FEATURES PEOPLE

INDUSTRY ICON Calum Ross, one of Canada’s highestproducing brokers, offers his thoughts on preparing for the challenges that lie ahead

18

PEOPLE

BROKER INSIGHT For Xeva Mortgage’s Luisa Hough, the key to success is simple: good old-fashioned hard work

Home Trust unveils its new brokerfocused initiatives for 2017

PEOPLE 55 Career path

Greg Vorwaller ditched a law career for the excitement of the housing market

56 Other life

FEATURES

52

OFFICE POLITICS

When office politics start to feel like war, it helps to have a battle plan

2

22 A new year and a new commitment

Get tartaned up with bagpiper Ron Hall

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

www.mortgagebrokernews.ca

01-03 IFC_Contents-SUBBED.indd 2

26/01/2017 10:52:42 AM

200 King Street West, Suite 600 | Toronto, ON M5H 3T4 | FSCO 10406 xceedmortgage.com | mcanmortgage.com (888) 811-6660 | bdm@xceedmortgage.com

01-03 IFC_Contents-SUBBED.indd 3

26/01/2017 8:30:39 AM

UPFRONT

EDITORIAL

www.mortgagebrokernews.ca ISSUE 12.01

Winter is coming

T

hat’s the motto of House Stark, one of the Great Houses of Westeros, from Game of Thrones. And while winter isn’t literally coming – we’re currently in the middle of a not-very-harsh one – the meaning of the phrase is applicable to the mortgage broker industry today.

The saying is meant to inspire constant vigilance and preparation: One should always be ready for winter and prepare for the impact it will have on the land and its harvests. Brokers, similarly, must be on their toes this year as they prepare to face a new reality brought on by the tightest mortgage rules the industry has ever had to grapple with.

Brokers must be on their toes this year as they prepare to face a new reality brought on by the tightest mortgage rules the industry has ever had to grapple with These new rules, aimed at ‘safeguarding’ the housing industry, have made it harder for many buyers to qualify for mortgages. They’ve also placed barriers in front of insured mortgage providers who rely on portfolio insurance. The latter change was expected to have a major impact on mortgage brokers specifically because they rely heavily on those types of lenders. Now, many prospective homebuyers have had to delay buying, and many Canadian lenders must find additional funding sources.

Just as the industry wrapped its head around these changes, the CMHC announced an increase to its mortgage default insurance premiums. However slight that hike may be, it adds one more barrier for many Canadians to overcome in their quest for homeownership.

Still, we get the sense brokers and lenders alike spent the holidays preparing for this year – the winter of the mortgage industry, if you will – and are ready to face yet another challenge.

EDITORIAL Editor Justin da Rosa Writers Joe Rosengarten Libby Macdonald Ephraim Vecina Kimberly Banks Copy Editor Clare Alexander

CONTRIBUTORS Amanda Roy Cindy Tonkin

ART & PRODUCTION Design Manager Daniel Williams Designers Loiza Caguiat Randy Pagatpatan Production Manager Alicia Salvati Advertising Coordinator Kay Valdez

SALES & MARKETING Associate Publisher Trevor Biggs General Manager, Sales John Mackenzie National Account Manager Trevor Lambert Marketing and Communications Melissa Christopoulos Project Coordinator Jessica Duce

CORPORATE President & CEO Tim Duce Office/Traffic Manager Marni Parker Events and Conference Manager Chris Davis Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Global CEO Mike Shipley Global COO George Walmsley

EDITORIAL INQUIRIES

justin.darosa@kmimedia.ca

SUBSCRIPTION INQUIRIES

tel: 416 644 8740 • fax: 416 203 8940 subscriptions@kmimedia.ca

ADVERTISING INQUIRIES trevor.biggs@kmimedia.ca

KMI Media 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, Sydney, Denver, Auckland, London, Manila, Singapore

CMCA AUDITED

The team at Canadian Mortgage Professional

Canadian Mortgage Professional is part of an international family of B2B publications and websites for the real estate and mortgage industries MORTGAGE PROFESSIONAL AUSTRALIA sam.richardson@keymedia.com.au T +61 2 8437 4787

Correction: In CMP 11.12, Mackenzie Gartside was mistakenly identified as an Axiom broker. She is a Mortgage Centre broker.

4 www.mortgagebrokernews.ca

04-05_Editor's Letter-SUBBED.indd 4

MORTGAGE PROFESSIONAL AMERICA cathy.masek@keymedia.com T +1 720 316 0151

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

26/01/2017 8:32:48 AM

IT’S TIME FOR CHANGE

CENTUM Provides

With CENTUM, you can take your business to the next level.

SYSTEMS Best lead generation tool in the industry, The 15 Minute Mortgage.

PARTNER WITH THE BRAND THAT PUTS YOU FIRST.

CLOUT Relationships with major lenders, exclusive business benefits partners.

IMAGE Brand awareness, interactive online marketing library.

TRAINING Ongoing training, live webinars, national conferences.

SUPPORT Dedicated franchise support team.

1.888.928.1338

opportunity@centum.ca

®/™ Trademarks owned by Centum Financial Group Inc. © 2016 Centum Financial Group Inc. The intent of this communication is for informational purposes only, and is not intended to be a solicitation to anyone under contract with another mortgage brokerage operation.

04-05_Editor's Letter-SUBBED.indd 5

26/01/2017 8:32:54 AM

UPFRONT

STATISTICS

Movin’ on up into 2017 The year just gone will be remembered for its many changes and their effects on the market THE STORY in 2016 was one of regulatory reform at both the federal and provincial levels. As the year wound down, those regulations appeared to be starting to bite, as certain previously red-hot markets – most conspicuously Vancouver – reported decreased levels of activity. A noticeable knock-on effect was the upsurge in buyer interest late in the year in the GTA and Montreal, as would-be investors scared off by BC’s imposition of a 15% tax on

53%

of Canadians surveyed by Re/Max said they intend to purchase a home

47%

of those expressed interest in doing so within the next 10 years

foreign buyers sought new markets.

Also evident: the continuing tendency of regional markets close to the nation’s most expensive cities to attract ‘move-over’ buyers from the nearby pricier market, as well as ‘move-up’ buyers from within their own boundaries, as priced-out would-be city buyers strove to find the balance between the square footage they desired and the limitations of what they could manage financially.

30%

of Canadians plan to use their home to help fund retirement

42%

of millennials view owning a home as a retirement funding strategy

A YEAR OF UPWARD MOTION FOR AVERAGE SALE PRICE Even in a year where regulatory changes at both the provincial and federal level impacted activity, Canada’s markets ended 2016 with the average residential sale price on an upward trajectory almost across the board.

BRITISH COLUMBIA

(estimate)

2016

2015

Change

Victoria

$580,961

$518,153

12%

Greater Vancouver $1,020,300

$902,801

13%

Fraser Valley

$690,000

$577,507

20%

Kelowna

$493,887

$435,074

14%

ALBERTA

(estimate)

2016

2015

Change

Calgary

$402,335

$417,328

-4%

Edmonton

$1,020,300

$372,511

-2%

Sources: Re/Max Housing Market Outlook, 2017

VANCOUVER COOLS DOWN ...

The year to come is anticipated to bring a 2% increase in the average residential sale price across the country.

After major jumps in the average sale price over the last few years, the nation’s hottest market is cooling down.

That trend has been attributed not only to the notorious 15% foreign buyer tax, but also to a stabilizing of prices following a peak early in 2016. $1,200,000

2% 2%

8%

Anticipated rise in average residential sale price for 2017 Anticipated rise in Greater Vancouver average residential sale price in 2017

Anticipated rise in GTA average residential sale price in 2017 Source: Re/Max Housing Market Outlook, 2017

6

Average sale price, Vancouver

STILL TRENDING UPWARDS

$1,000,000

$800,000

$600,000

$1,020,300

$1,040,706

2016 (estimated)

2016 (forecast)

$902,801 $767,765

2013

$812,652

2014

2015

Source: Re/Max Housing Market Outlook, 2017

www.mortgagebrokernews.ca

06-07_Statistics-SUBBED2.indd 6

26/01/2017 12:37:16 PM

NEWFOUNDLAND

(estimate)

2016

2015

Change

St John’s

$279,356

$296,812

-6%

ONTARIO

(estimate)

2016

2015

Change

Windsor-Essex

$226,468

$201,115

13%

London-St. Thomas

$278,471

$264,435

5%

Sudbury

$256,801

$250,593

2%

PEI

(estimate)

2016

2015

Change

Kitchener -Waterloo

$382,697

$348,220

10%

Charlottetown

$231,010

$219,460

5%

Hamilton-Burlington

$535,520

$446,961

20%

Barrie

$409,356

$351,554

16%

GTA

$725,857

$622,217

17%

Kingston

$305,600

$298,000

3%

Ottawa

$370,940

$367,632

1%

MANITOBA

(estimate)

2016

2015

Change

Winnipeg

$288,500

$281,022

3%

SASKATCHEWAN

(estimate)

2016

2015

Change

Saskatoon

$351,032

$355,653

Regina

$318,785

$319,857

NOVA SCOTIA

(estimate)

2016

2015

Change

Halifax-Dartmouth

$287,916

$278,117

4%

QUEBEC

(estimate)

2016

2015

Change

-1%

Greater Montreal

$347,321

$337,263

3%

NEW BRUNSWICK

(estimate)

2016

2015

Change

0%

Quebec City

$265,095

$265,204

0%

Saint John

$177,567

$175,152

1%

Source: Re/Max Housing Market Outlook, 2017

... WHILE TORONTO HEATS UP

OPEN TO ALTERNATIVES

The GTA continued to be the site of significant activity in 2016; ‘move-up’ buyers drove demand for the most sought-after of properties, the single-family detached home. This trend is predicted to continue in the new year. $800,000

Facing a competitive market that may leave them priced out, many would-be homebuyers have said they’re willing to embrace unconventional home financing options.

Average sale price, Toronto

$725,857

$783,926

Willing to purchase a home with a family member 33%

$700,000

Willing to rent out a room in their home $622,217

22%

Willing to rent a room on a vacation rental site (such as Airbnb)

$566,626

$600,000

15%

$522,963

$500,000

Willing to purchase a home with a roommate 2013

2014

2015

2016 (estimated)

2016 (forecast)

Source: Re/Max Housing Market Outlook, 2017

9% Source: Re/Max Housing Market Outlook, 2017

www.mortgagebrokernews.ca

06-07_Statistics-SUBBED2.indd 7

7

26/01/2017 12:37:25 PM

UPFRONT

HEAD TO HEAD

Are there more foreign buyers than the data shows?

The CMHC puts foreign ownership in Canada’s hottest markets around 2%, but anecdotal evidence suggests it’s much higher

James Shinners Mortgage broker Mortgage Managers

“The October 2016 Hurun Report says that ‘China currently has 1,340,000 highnet-worth individuals [HNWI], defined as individuals with at least US$1.5 million.

Over the next three years, 60% of HNWIs intend to invest in overseas property.’

If even 10% of these 800,000 HNWIs purchase a property in either Vancouver or Toronto, that means that they could purchase 80,000 properties over the next three years, or about 26,600 sales per year. If half bought in Vancouver, that would be 13,300 sales. Therefore, about 23% of Vancouver sales in 2015 could have been made to HNWIs. That number sounds more plausible.”

Dustan Woodhouse

Ronnie Kartman

“I suspect CMHC data is closest to the truth. The brokers and Realtors I am close with represent more than $1 billion in annual transaction volume; we discuss foreign buyers periodically, and few see more than a single foreign buyer transaction per year.

Much of this topic’s coverage is based on anecdotes in which ‘new-to-Canada’ buyers are perceived (in sales centres) to be foreign buyers – an unfortunate error.

Often missing from this debate is the consideration that foreign buyers built this amazing country’s colourful tapestry that we all benefit from. Foreign buyers spawned generations of Canadians.”

“The percentage of foreign buyers in recent years has been both underestimated and under-reported. The signs of this are obvious: a 16% to 17% increase in Toronto property values in one year? Does anyone really believe that the doubling, tripling and quadrupling of those huge condos along the lakeshore was created by thousands of Canadians all winning the lottery?

Vancouver’s immediate downward prices in response to the new foreign ownership tax point to price vulnerability for Toronto. If things start to even slightly go south, just watch how quickly they will want out. Be afraid – be very afraid!”

Mortgage consultant DLC Canadian Mortgage Experts

President WeRenovate.com

CMHC SAYS FOREIGN OWNERSHIP IS LOW According to recent CMHC figures, overseas buyers own less than 2.3% of condo units in Toronto, while the figure in red-hot Vancouver was 2.2%. These markets represent the highest concentrations of foreign ownership in the country, according to CMHC data released late last year, and both markets were subject to a decline in international buyers compared to the year before. But for such an apparently low number, offshore investors have an outsized profile – ‘the foreign investor’ was the shadowy, faceless figure that won the dubious honour of being named the Canadian Press’ business newsmaker of the year for 2016.

8 www.mortgagebrokernews.ca

08-09_Head to Head-SUBBED.indd 8

26/01/2017 8:36:37 AM

STAY Deal Connected MCAP Service Corporation | Ontario Mortgage Brokerage #10515 | Ontario Mortgage Administrator #11692

08-09_Head to Head-SUBBED.indd 9

26/01/2017 8:36:36 AM

UPFRONT

NEWS ANALYSIS

Vancouver’s not done yet Reports of the Vancouver market’s death have been greatly exaggerated, according to industry veterans IT SEEMS only fitting to kick off a story about Vancouver’s real estate market with the oft-cited (if a bit inaccurate) quote attributed to Mark Twain. If you read reports at face value, you’d be led to believe that Vancouver’s real estate market is on a downward spiral that will result in the erosion of home values and, as a result, current homeowners’ equity.

That may not be entirely true, however.

“If you look at the recent sales stats, we have decreasing supply, and you’ve still got 40,000-plus people per year migrating into BC,” says Dustan Woodhouse, a broker with Dominion Lending Centres Canadian Mortgage Experts. “Those 40,000 people all have to live somewhere. And we are not building at the pace to account for that.

“Not only that,” Woodhouse continues,

price decreased 2.2% year-over-year to $897,600. That’s not much of a downturn, but any decline in the once seemingly unstoppable market has caused some concern among pundits.

One of those is investment advisor Garth Turner, the notorious housing bear who has garnered a massive following by declaring pending housing market doom for years. Of course, he has yet to be proven true, but he seems to think this year is finally his.

He recently published examples of Vancouver homes that sold below asking, as sent to him by a reader. One originally listed for $1.87 million but sold for $849,000, and another originally listed for $668,000 but is now down to $599,000. A third example was eventually pulled due to the source “erring” in his research.

“With the Lower Mainland, it’s the same old story it’s been for years, and that story is supply and demand” Dustan Woodhouse, DLC Canadian Mortgage Experts “but we can’t build detached houses for all those people. We don’t have the land to spread out on to build vast tracts of detached houses. So, again, the supply is finite on detached houses, so the price pressure on those is going to remain constant.”

Still, it’s hard to ignore the market’s end-of-year stats. The average composite

10

Still, these were enough for Turner to sound the death knell for Vancouver real estate. “Three real-life examples of what’s actually happening on the ground in what was, until a few months ago, not only the hottest real estate market in Canada but the steamiest on the planet,” he wrote on his blog. “It was fed continuously by the vola-

tile fuel of cheap rates, lax lending by outfits like Vancity, pro-housing policies, rampant local speculation and Realtor-inspired [fear of missing out], using Chinese dudes as the catalyst for panic buying. As average house prices soared way beyond the ability of average families to buy in, it was only a matter of time before the inevitable occurred.”

But Woodhouse isn’t sold. “Some guy picked three listings to look at, and he looked for the ones that fit his narrative,” he says. “One he had bad intel on, so he had to pull that.”

For his part, Woodhouse remains bullish.

“At the end of the day, there have been some restrictions put in place, but I think that with the Lower Mainland, it’s the same old story it’s been for years, and that story is supply and demand,” he says. “There’s no way you’re going to see a 25% drop in value on detached homes. Not in Vancouver.”

Is Vancouver’s housing market expected

www.mortgagebrokernews.ca

10-11_News Analysis-SUBBED.indd 10

26/01/2017 8:41:23 AM

AVERAGE VANCOUVER HOME PRICES IN 2016 January $1,083,177 February $1,104,133 March $1,093,267 April $1,091,767 May $1,055,495 June $1,026,207 July $1,007,687 to perform at the same pace it has over the past couple of years? No. But it’s certainly not time to call it in just yet.

Royal LePage predicted a housing market correction for Vancouver in 2017 due to both

deal,” says Phil Soper, president of Royal LePage. “It would represent a market crash because the price appreciation has been moderate. In Vancouver, when you see prices rising at the rate they have been

“Rather than rising by 26%, you’re going the other direction by 8.5%. It is a significant change, but it’s not unexpected”

15% foreign buyer tax goes into effect August $833,065 September $864,566 October

Phil Soper, Royal LePage a softening market and the heavy hand of the provincial government, which has implemented a number of housing rule changes aimed at slowing the market. The good news, however, is that the market is well prepared to handle it.

“If were to call for an 8.5% correction in Ottawa or Montreal, that would be a huge

$891,705 rising in the mid- to high 20s, 8.5% in that context seems moderate.

“Think of it this way,” he continues. “In relative terms, rather than rising by 26%, you’re going the other direction by 8.5%. In market terms, that’s a significant market turnaround. It is a significant change, but it’s not unexpected.”

November $895,084 December $897,600

www.mortgagebrokernews.ca

10-11_News Analysis-SUBBED.indd 11

11

26/01/2017 8:41:29 AM

UPFRONT

RESIDENTIAL UPDATE NEWS BRIEFS CREA forecasts significant contraction for BC in 2017

In its latest housing outlook, CREA predicted that annual sales in British Columbia will decline by 12.2% this year and that average sale prices will drop by 7.8%. “This largely reflects an anticipated decline in single-family home sales activity at the higher end of the market – particularly in the Lower Mainland,” CREA said in its report. “Transactions … are anticipated to remain strong, but fall short of this year’s record levels due to deteriorating affordability, an ongoing shortage of affordably priced listings for single-family homes and tightened mortgage regulations.”

Average wage earners in a tight spot for down payments

An average wage earner in Canada will now need twice as long to save up for a down payment compared to 15 years ago, according to a recent study by Mortgage Professionals Canada. The study found that a 20% down payment for a median-price residential property is worth approximately 102 weeks at the average Canadian wage, although because first-time buyers will be unable to allocate every paycheque toward saving for the down payment, it will actually take them far longer than two years to save. Observers attribute this development to the combination of continuous increases in home prices and stagnant income growth.

Small-space living makes a comeback due to high prices

Micro-condominiums are becoming an increasingly popular option among Canada’s young buyers, according to the CMHC. Single-detached home construction fell in 2016, accompanied

by increased demand that has led to overall higher costs in this housing type. However, CMHC added that while condo starts might see a slight decline in 2017 – in part due to a reduced number of millennials and young families buying in the wake of stricter mortgage rules – 2018 should herald a massive rebound in condo construction due to intensified demand for more affordable housing, especially among first-time buyers.

House price increase in 2016 was sharpest in 10 years

The latest data from CREA reveals that the national average price of Canadian residential properties across all types was up 14.4% over the past year, up to $581,400. This represents the fastest pace of price growth in the previous 10 years, almost reaching the 2006 heights of 14.43%. A major contributor to this increase was the consistently strong performance of the country’s two hottest real estate markets, CREA said. Last year, the Vancouver composite home price average reached $908,300, while Toronto’s hit $689,100.

Toronto will remain a seller’s haven in 2017 The Toronto Real Estate Board recently announced that the average sale prices of homes in the city jumped by 20% year-over-year in December, a development that has been accompanied by sustained low levels of inventory in the GTA. This confluence of factors will help Toronto keep its status as one of Canada’s strongest seller’s markets, taking into account healthy immigration numbers and the ever-increasing demand from wouldbe buyers. Officials warned that the situation could trigger a feverish level of competition in the city’s most desirable neighbourhoods.

National sales flag amid new rules The slowdown in home sales is expected to last for much of 2017, CREA warns A strong first half of the year, followed by a major slowdown in the final months, characterized the Canadian housing market in 2016, the Canadian Real Estate Association said in its latest report. According to figures released mid-January, actual (non-seasonally adjusted) home sales nationwide declined by 5% year-over-year in December 2016, on the heels of tepid 2.2% growth in sales activity from November to December.

“Sales set a new annual record last year,” CREA president Cliff Iverson said in the organization’s report. “However, tightened mortgage regulations are expected to contribute to lower sales activity this year, though the extent to which they will weigh on housing markets across Canada will vary.”

CREA chief economist Gregory Klump added that the overall Canadian economy will see less benefit from residential sales this year compared to 2016.

“New regulations mean that in order to qualify for a mortgage, homebuyers will either have to save longer for a bigger down payment or purchase a lower-priced home,” he said. “In urban centres where the latter are in short supply, that’s likely to translate into fewer sales.”

In a recent analysis, Royal Bank of Canada chief economist Craig Wright and senior economist Robert Hogue agreed that the new mortgage rules will have a major impact on sales activity this year.

“Rule changes also are poised to restrict or alter the pricing of certain mortgage options

12 www.mortgagebrokernews.ca

12-13_Residential Update-SUBBED2.indd 12

26/01/2017 8:43:14 AM

available in the marketplace, similarly constituting further impediments to ownership for some buyers,” the economists told The Globe and Mail.

Accompanying these developments was a 3% month-over-month decrease in the number of new listings across the country, according to CREA. Around three-fifths of all

“Rule changes are poised to restrict or alter the pricing of certain mortgage options” local markets suffered declines, but the most significant cases were in Calgary, the GTA and BC’s Lower Mainland.

Sales transactions via MLS nationwide rose by 2.2% from November to December, gaining back less than half of the 5.3% drop suffered between October and November.

CREA attributed that decline to the revisions to federal rules governing mortgages and qualifications. Prices saw a similar slump in December 2016, when the national average price for homes posted the smallest yearover-year increase in two years.

While activity in BC and Ontario still managed to carry the national average price upward over the course of 2016, Greater Vancouver’s influence has faded somewhat over the past few months, due in large part to the 15% tax imposed by the provincial government upon foreign buyers starting in August 2016.

Q&A

Lorraine Sato Vice-president of mortgage operations EQUITY FINANCIAL TRUST

Years in the industry 40+ Fast fact An online survey by Equifax found that 8% of Canadians had falsified information on their own credit applications, 13% believed it was OK to tell ‘little white lies’ on their mortgage applications, and 16% considered mortgage fraud a ‘victimless crime’

Due diligence needed to combat fraud In a study released earlier this year, credit reporting agency Equifax revealed that instances of mortgage fraud in Canada have risen alongside the runaway prices in the country’s most in-demand real estate markets. Equifax reported that the number of potentially dishonest mortgage applications has grown by 52% over the past four years. Many of these flagged applications originated from Ontario and British Columbia, both of which play host to Canada’s most expensive housing markets.

Bank-based lenders provided around 90% of the red flags, and the most prevalent incidences of fraud involved identity theft and money laundering. Many would-be buyers also provided falsified or tampered tax returns, bank statements and employment documents in an attempt to qualify for larger mortgages.

What are your views on the recent Equifax study about mortgage fraud in Canada?

Fraud has always been an issue, but it does appear that it has increased in the past year. Employment, income and bank statement fraud are the biggest concerns. We have seen mostly fraud for shelter, where documents are misrepresented in order to qualify for a mortgage.

What effect do these incidents have on how mortgage brokers and lenders conduct business?

More due diligence is required on all deals, which equates to more time spent on each file. Fraudulent documents are sometimes difficult to detect, but we look out for red flags in the file that could alert us to the potential for deceit – for example, the stated income not matching the client’s age and occupation.

How would you advise your clients to mitigate the worst effects of the affordability crisis and prevent them from resorting to fraud?

We obtain our mortgages through mortgage brokers, and we have a process to approve brokers and ensure that they have the same values as Equity, with the understanding that fraud is not tolerated. Manipulating income for a client to qualify for a mortgage hurts everyone.

What steps can mortgage brokers take to fend off attempts at dishonesty or misrepresentation?

Knowing your client is the key. Only deal with known and reputable referral sources. Ensure that client applications are thoroughly reviewed and that they make sense. Document the ‘story’ and highlight any credit issues or income discrepancies. Brokers should review documents, conduct Google searches and make calls to validate income and employment. It reflects poorly on the broker if the lender finds fraud or misrepresentation in a file.

www.mortgagebrokernews.ca

12-13_Residential Update-SUBBED2.indd 13

13

26/01/2017 8:43:15 AM

UPFRONT

COMMERCIAL UPDATE

Fintech drives new uses of office space As financial services firms integrate with technology, they’re also reshaping office space demand

and a sense of community to fit in with their highly collaborative way of working.”

For the financial services industry, this means “the focus will shift from simply gaining the most effective use of office space toward how the office can be used as a tool for attraction and retention of the best talent,” Wong said, adding that strategies could include launching satellite offices and innovation centres situated in nearby tech hubs and universities.

“The focus will shift toward how the office can be used as a tool for attraction and retention of the best talent”

Disruptive technology has proven to be a central motivator of paradigm shifts across various industries, and nowhere is this more apparent than the changes that have overtaken the financial services sector.

In a recent analysis, commercial real estate services provider CBRE noted that the integration between finance and technology has led to drastic changes in how the concept of a workplace is treated, from the classic ‘cubicle farm’ setup to a more free-flowing model.

NEWS BRIEFS

“In the digital era, banks, insurance firms and wealth managers are all set to look, feel and act more like technology firms,” said Ray Wong, CBRE’s head of research for Canada.

“This means that financial services companies will increasingly need to hire new talent within software development, creative industries, digital media and data science. This highvalue talent has an even higher expectation for their office environment, and they want a workplace that offers a variety of work settings

REITs mix portfolios amid uncertainty

In an uncertain global market, Canada’s real estate investment trusts have begun betting on hybrid projects.

Toronto’s RioCan REIT, for example, recently announced a partnership with Calgarybased Boardwalk REIT to develop an 11-storey mixed-use residential rental tower within RioCan’s Brentwood Village Shopping Centre in Calgary. The development will feature around 120,000 square feet of residential space in 165 apartment units, along with a 10,000-square-foot at-grade retail podium.

The Toronto commercial real estate market in particular will benefit from this windfall.

As a leader in the national financial services sector with more than 243,000 fintech employees, the city is expected to account for approximately 50% of all new job growth in the industry over the next few years.

“In the last two major development cycles, 2009–2011 and 2014–2017, banks and related groups comprised 31.1% and 42.0% of all pre-lease commitments, respectively, in the new office towers,” CBRE reported. “With an additional 10,000 financial services jobs forecast to be added in Toronto by 2020, its position as a dominant occupier within the Toronto office market is expected to continue.”

Commercial sales set to beat 2007 record

Real estate firm CBRE announced in December that Canada is on track to beat the $32.1 billion annual record for commercial sales set back in 2007, after the national market saw a massive jump in the third quarter of 2016. Sales of office space, apartments, land and other commercial properties reached $11.2 billion in the quarter. CBRE predicted that 2016 will notch more than $35 billion in commercial deals; Calgary regional director Greg Kwong attributed the boost to investors looking for stability in a low-growth environment.

14 www.mortgagebrokernews.ca

14-15_Commercial Update-SUBBED2.indd 14

26/01/2017 8:44:14 AM

Q&A

Ameera Ameerullah

Foreign capital is crucial for the commercial sector

CEO CANADA MORTGAGE & FINANCIAL GROUP

What do you think of the increasingly important role that foreign capital is playing in Canadian commercial real estate?

Years in the industry 16

Foreign capital injected into the country will increase economic growth, bridge relationships with Canadians – resulting in more jobs within Canada – and strengthen our dollar. Foreign investors will account for a record amount of commercial property purchases in Canada this year. We saw the same trends last year, spurred by a weak currency, according to a forecast from the world’s largest real estate services firm.

In particular, infrastructure is a big focus for the federal government, and we need to keep our doors open to international capital, which can stimulate growth in Canadian real estate.

Career highlight Achieving commercial sales volume of $102 million (from 23 deals) in 2015

What are the unique situations and challenges faced by commercial mortgage brokers in your market of Mississauga?

Commercial lending is itself unique, as the property and land involved in each situation is far more diverse when compared to residential lending. In terms of Mississauga, commercial lending tends to have clusters of development within hub areas. There’s a lack of lenders and cooperation from banking institutions to fulfil loan requests.

It becomes even more complicated when you have foreign investors who are used to land development being done via a totally different process. Lenders have funding limits, restricted lists of builders they work with and other mandated restrictions that make it challenging

Canadian banks relatively shielded from shocks

While Canadian interest rates might increase this year, RBC CEO Dave McKay believes the country’s banks will not suffer mortgage losses as a result.

Speaking at the recent RBC Capital Markets Canadian Bank CEO Conference, McKay pointed to healthy inbound immigration and a high demand-to-supply ratio in leading markets as key factors that will keep real estate healthy. BMO CEO Bill Downe agreed with the assessment, saying that Canada’s robust banking system will prove resistant to the worst effects of such a shock.

to secure interest from a lender on a small builder’s project in Mississauga versus a project in Toronto.

Based on your transactions, how do these challenges affect the actions of buyers and investors in your area?

Although the federal government encourages inter­ national investment, there are stringent guidelines that can jeopardize a transaction. At Canada Mortgage & Financial Group, we have found that many international investors tend to purchase with cash instead of leveraging their funds into various asset classes.

Investors want to diversify their portfolios, but lending guidelines restrict their options to do so.

What is your advice to hopeful investors who are planning to break into the competitive commercial market?

It is essential to ensure that you have a secured alter­ native to your initial thought process. One shouldn’t hesitate to make an offer with a request for a vendor-take back mortgage, obtain a 60- to 90-day due diligence period and hire a reputable marketing team.

It’s also important to work with a Tarion-approved builder that is favoured by lenders. Finally, before committing to purchase, ensure that you retain the services of a mortgage professional to handle the budgeting stage, the loan structuring and the exit strategy. Working with the right builder and a trusted mortgage broker will ensure that the investor’s initial vision becomes reality.

Vancouver malls among best commercial spaces

The Retail Council of Canada has reported that Vancouver has some of the country’s best-performing malls in terms of revenue. As of August 31, 2016, the Oakridge Centre was the second most productive mall ($1,537 per square foot), while the CF Pacific Centre ranked third ($1,523 per square foot). A leading driver for this strong performance is the lower per-capita mall space compared to other major economies like the US. Also, higher product costs due to taxes and duties help Canadian malls earn more, the Council said.

Yuan monitoring might affect sales in Canada

The Chinese government’s new rules on exchanging yuan into foreign currency could lead to a slowdown in Canadian real estate markets, economist Andy Xie warned. The guidelines were implemented to moderate the outbound flow of funds; authorities now require documentation that provides details on the reasons for currency conversion and when the money will be used. Xie is concerned this might lead to a “sharp” decline in markets such as Canada that are dependent on foreign capital.

www.mortgagebrokernews.ca

14-15_Commercial Update-SUBBED2.indd 15

15

26/01/2017 8:44:45 AM

UPFRONT

OPINION

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

Give us a break Regional markets will suffer most from the effects of recent rule changes, writes Amanda Roy GOOD INTENTIONS don’t always lead to good results. The rule changes to mortgage insurance eligibility introduced by Finance Minister Bill Morneau are a perfect example of this.

The changes were meant to cool down overpriced housing markets, particularly in Vancouver and Toronto. In those two major Canadian markets, the inflation of housing costs has been an ongoing concern because so many homes are selling for more than a million dollars. However, earlier rule changes had already precluded homes over $1 million from mortgage insurance, so this latest set of guidelines will actually have minimal impact on the markets they were intended to fix.

Instead, these changes will drive mortgage rates up over time and eliminate choice for the Canadian consumer as big banks take more control over the country’s lending.

Markets like Calgary will suffer most from the effects of these rule changes – the same markets that have already felt the pinch from the increased down payment measures introduced almost a year ago. Those changes on home purchases over $500,000 required a down payment of more than 5%. At the time of those changes, CIBC World Markets predicted that the increased down payment measures would affect Alberta the most, dropping new home sales in Calgary by 10% and Edmonton by 7%. Nationally, the country would only be affected by a mere 4%.

Sorry, Alberta, but the hits keep on coming.

One of the new changes implemented requires borrowers to qualify at the benchmark rate, which is much higher than the contract rate on five-year fixed-rate mortgages. This will affect

16

first-time homebuyers more than any other group, reducing their borrowing power by roughly 20% and potentially squeezing them out of the market altogether.

The provincial government in British Columbia has just decided to offer first-time buyers interest-free loans for their down payments in order to counter the effects of Mr. Morneau’s restrictions. Premier Christy

credit and a strong income. This may deter people from upgrading and slow renovation activity. Overall housing demand will likely be reduced, and sales of new and resale homes will be lower than they would have been without these new rules.

The rule announcements have left monoline lenders scrambling to obtain investors for their non-insured mortgage portfolios. Many have found partners, but with lenders already cautious about the province of Alberta, the fear is that the underwriting on these refinance and rental properties will be far more stringent in our province without low-ratio insurance. Not to mention, all lending partners (banks and monolines) now have increased cost structures.

All of this will have a compounding negative effect on the economy. The anticipated slowdown in new home construction that is likely to occur due to the required stress test and higher lender capital costs will only compound the issue. Perhaps it would have

“Earlier rule changes already precluded homes worth over $1 million from mortgage insurance, so these guidelines will have minimal impact on the markets they were intended to fix” Clark’s action should create more jobs through increased housing activity and spawn economic growth for the province.

That sounds like something Alberta could use. The past couple of years have been tough for Albertans, who have been working less overtime and have seen bonuses reduced or eliminated altogether. Those who have worked diligently to save enough funds for down payments are now being told that they no longer qualify for their dream home.

Instead of a single-family detached for their growing family, they’re forced to keep renting, or perhaps settle for a condo they will quickly outgrow.

Because of the changes to the low-ratio mortgage rules, existing homeowners looking to refinance their properties are being told that the best rates available are no longer applicable to them, even if they have perfect

been prudent to implement some form of regionalization for the rule changes.

On the bright side, Albertans are resilient.

Regardless of the current state of the economy, most are of the opinion that things will get better and that the present situation is only temporary. An agreement made by OPEC and non-OPEC producers to curtail oil production, along with the new pipeline announcements, should help bring Alberta out of its slump. Add to that the rebuilding of Fort McMurray, and there is reason for optimism.

Of course, the biggest hope of all is that maybe Mr. Morneau will see the error of his ways.

Amanda Roy is the executive director of the Alberta Mortgage Brokers Association.

She’s been with the organization for more than six years and has a background in communications and journalism.

www.mortgagebrokernews.ca

16-17_Opinion-SUBBED.indd 16

26/01/2017 8:45:41 AM

16-17_Opinion-SUBBED.indd 17

26/01/2017 8:45:43 AM

PEOPLE

INDUSTRY ICON

GOOD BUSINESS SENSE A great experience as a client drew Calum Ross, one of the country’s most successful brokers, to the mortgage industry

CALUM ROSS was working at a bank and studying for his MBA when he had his first experience with the mortgage broker channel.

“Initially I started out in a bank management training program,” says Ross, who’s currently a wealth advisor and the principal broker at Verico Mortgage Management Group.

“They were paying for my MBA, and I came across the mortgage broker channel more by accident than anything else. At the time, I was working for the Bank of Montreal, my mom was [with] RBC, and I got introduced to a mortgage broker. The broker was able to get the deal turned around a lot quicker for me.”

As a first-time buyer, Ross was dealing with all the usual stresses of that first purchase, but his broker helped smooth out the process.

He admits being surprised by the industry and, indeed, what its professionals are capable of achieving.

“Here I am as a commerce graduate, thinking how do I not know about this mortgage broker concept?” he says. “At the time, I was looking at a career in the investment industry, but I realized a lot more people needed debt advice than investment advice, and that’s what got me interested in it.”

So Ross decided to put his business training to use and take a chance by becoming a mortgage broker.

18

“When I was in business school in the entrepreneur class, the thing that struck me was the idea that most businesses don’t actually create a new product or service – they take an existing one and do it better,” he says. “At that point, in the mortgage broker channel, I thought I was going to do well, and I thought if I didn’t take the risk and make the jump in the early days of my doing my MBA part-time, I probably never would. So I made the jump.”

“It’s very clear that the credit capital markets are going to be under a lot of scrutiny in the next little while,” he says. “We have huge amounts of consumer debt, huge amounts of government debt, and there’s going to be a lot of debt aversion stuff coming forward.”

As a result, brokers who have lax processes and procedures are going to have a hard time staying on top of the mortgage channel in the next few years, Ross argues.

“When I was in business school in the entrepreneur class, the thing that struck me was the idea that most businesses don’t actually create a new product or service – they take an existing one and do it better” Challenging times ahead It turned out to be the right choice. Ross has since been recognized as the country’s top broker, as well as one of its highest-funding professionals. As someone who has ascended to the highest echelons of the industry, he’s got a few ideas about how it will shift over the next few years.

“People have to get really real about credit rules,” he says. “They’re going to get tightened up, and regulation and paperwork is going to become a much bigger deal. I think the people who run very tight ships are going to be rewarded.”

Another key to the channel’s continued success, Ross says, is that brokers and lenders

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 18

26/01/2017 9:00:45 AM

PROFILE Name: Calum Ross Title: Wealth advisor and principal broker Company: Verico Mortgage Management Group Years in the industry: 18 Career highlight: “By far, the biggest career highlight is all the thank-you cards I get from clients. On my real tough days, I don’t look at my awards room.

I’ve got a little folder – my ‘pick-me-up’ folder – and it’s got all the handwritten thankyou notes I’ve received from clients. That’s really what we do this for.”

Career lowlight: “Shortly after [being named highestproducing broker of the year by CMP] in 2010, we became too sales-focused, and I realized that even though in the external world we had done extremely well, behind the scenes we weren’t following the core values and the principles that had made us successful.”

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 19

19

26/01/2017 9:00:51 AM

PEOPLE

INDUSTRY ICON CALUM ROSS: CAREER HIGHLIGHTS

1999 must continue to help each other thrive for the good of the industry as a whole.

“We have to make sure we, as brokers, make it profitable for lenders to do business with us,” he says. “There are too many people, in my opinion, that have too short-term a perspective. They’re more concerned with generating a commission, but unless we create value for our clients and make it profitable for our lenders to do business with us, the long-term value proposition will be impacted.

get more popular,” he says. “I think people need to realize they can’t be in both spaces simultaneously. You can’t spend so much time with clients, give them all kinds of tools, and still offer the lowest rate. You can’t run your business that way.”

People have to be very mindful of the markets they serve, and also the markets they target, Ross says, because it’s impossible to be all things to all people.

“I have always focused specifically on

“People have to get really real about credit rules. They’re going to get tightened up, and regulation and paperwork is going to become a much bigger deal. I think the people who run very tight ships are going to be rewarded” “Lenders are a very important part of our market,” he adds. “We have to be very, very cognizant of making sure the model is one that they want to be in.”

Find your niche As the winner of the Canadian Mortgage Award for Broker of the Year in 2014, Verico’s Broker of the Year for 2016 and one of the youngest-ever recipients of CIBC’s Lifetime Achievement Award, Ross clearly knows a thing or two about running a successful business. And when it comes to success, he argues, there is such a thing as doing too much.

“I think there’s going to be, more than ever before, a real difference between the price versus advice space – the rate aggregators and the online lending model are going to

20

helping clients with borrowing to create wealth – real estate investors and borrowing to invest – and the luxury home segment,” he explains.

“I have never deviated from those segments.

It’s always been about supporting longer-term wealth and the luxury market. I’ve never gone into the harder place market or the commercial space. Focus on a few tiers, be great at those, and you’ll be fine.”

No matter what, brokers must always continue to invest in themselves and the channel as a whole, Ross believes.

“If we don’t continue to grow our skill set and we don’t continue to grow the value proposition that we bring to consumers, as well as the way that we work cohesively with our partners – our clients and our lenders – then we’re always at risk.”

Enters the mortgage industry as broker/owner of a franchise with The Mortgage Centre/CIBC Mortgages

2006 Becomes head of real estate finance for the Real Estate Investment Network

2010 Wins CIBC Lifetime Achievement Award and earns the number-one spot on CMP’s Top 50 Brokers list

2011 Funds $170 million in volume in a single year

2012 Starts Calum Ross Mortgage

2014 Wins Outstanding Customer Service and Broker of the Year awards at the Canadian Mortgage Awards

2016 Is named Verico’s Broker of the Year

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 20

26/01/2017 9:00:55 AM

EQB_C

YES YOU CAN

Your clients can purchase or refinance their mortgage with up to a LTV of 85%* with our "Yes You Can" Mortgage.

Charge

Fee

Mortgage Payment Ask your RBM about it today!

Ontario 1-866-407-0004 Atlantic Canada 902-880-2843 Western Canada (BC) 1-866-505-6886 Western Canada (AB, SK, MB) 1-866-940-1201 *Subject to lending area. Up to 80% LTV provided

by Equitable Bank. Exceptions/limitations and some considerations may apply.

equitablebank.ca

EQB_CMP_Ad_FullPg_12.01.indd 1 18-21_Industry Icon-SUBBED.indd 21

2017-01-18 11:51 AM 26/01/2017 9:01:02 AM

SPECIAL PROMOTIONAL FEATURE

SERVICE

A new year and a new commitment A promise to provide a more timely response to new Classic Mortgage applications is just part of Home Trust’s efforts to better serve the broker channel.

Executive vice-president Pino Decina explains

as possible. However, in order to accomplish that objective, we require your assistance to ensure we have the information we need to complete an effective review.

To help our broker partners understand what we need as part of the initial application, we’ve recently hosted a series of webinars and other learning opportunities. These sessions provided information on how to put together deals that include the necessary details to enable our review team to process each file. We’ve also participated in a series of broker-sponsored training conferences designed to provide on-staff brokers with this same information. If you’d like to have a Home Trust representative meet with your team, please contact your business development manager for more information.

Preparing for an increase in Alt A business WELCOME TO 2017! I hope everyone had an enjoyable holiday and is looking forward to a sensational and prosperous new year.

I can tell you that everyone at Home Trust is excited about the opportunities that lie ahead for our clients, our company and our industry. We’ve made great progress on a number of internal initiatives, and based on the successful implementation of these new programs, I have some exciting news I’d like to share with you. But first, I’d like to provide you with a quick update on Home Trust’s journey over the past year and a half.

I’m sure most of you recall Home Trust’s HIP+ transformation program. HIP+ launched as a multi-phase project that kicked off a comprehensive review of our internal processes. Based on our findings, we have since introduced a series of procedural and workflow enhancements to realize the opportunities revealed by our review.

I’ve provided several updates on our progress in earlier articles in this publication, as well as other direct communications we’ve sent out to all our broker partners. Now I’d like to tell you about the completion of another major milestone that we believe will

22

dramatically enhance our service offering to the broker community.

The Home Trust service level commitment Home Trust is launching a new service level commitment designed to ensure that, for all Classic mortgage applications you submit to Home Trust, you will receive a confirmation

I know this has been a long time in the works, and I do appreciate your patience as we’ve completed the process changes and other enhancements necessary to bring this all together. I am confident – and hope you will agree – that our actions will help ensure we never lose sight of the fundamentals of service excellence, great quality and maintaining a sharp focus on the needs of the customer.

Our goal is to provide a commitment on approved applications back to you as quickly as possible. However, in order to accomplish that objective, we require your assistance to ensure we have the information we need to complete an effective review that we’ve received the application and have completed the initial review within six business hours of receiving the deal.

Our goal is to provide a commitment on approved applications back to you as quickly

I’m also confident that these efforts will benefit us all and prepare our industry for the anticipated growth in demand for alternative mortgages in light of the latest round of regulatory changes.

www.mortgagebrokernews.ca

22-23_Home Trust-SUBBED.indd 22

26/01/2017 9:08:32 AM

The amendments to the Canadian mortgage rules announced late last year by the federal government – particularly around insurability and high-ratio loan criteria – place Home Trust in a strengthened position to provide for the needs of all of your clients. We remain committed to delivering a full suite of products and will soon introduce new products for refinances and conventional uninsured rentals. We are also renewing our focus on mortgage switches and transfers, and will have more details in the coming weeks.

Enhancing our focus on the client We truly value the work of our broker partners, and we want to provide more direct support to help you build your business.

One of the ways we pledge to address this is by providing information you can share with your clients. Sending out educational

content is an excellent way to build client relationships while providing a valuable service that helps inform the consumer about one of the biggest financial decisions they are likely to make.

With the launch of the Home Trust Mortgages Blog (blog.hometrust.ca) last June, we’ve compiled a series of articles ranging from discussions on general market conditions to specific topics such as how to improve your credit score. We encourage you to share these articles through your social media channels, as we believe helping borrowers become better informed reflects positively on our industry.

Finally, a few words about some refinements we’ve been making to the look and feel of our marketing materials and other printed and digital information. We’ve adopted a cleaner format that is easier to read and combined that with clear, strong,

consistent messaging. The use of black-andwhite imagery is also deliberate – unlike colour images, which can draw the viewer’s attention away from the foreground, blackand-white images encourage the viewer to focus on the subject of the image and the content of the material.

This is the perfect metaphor to describe the Home Trust approach. We cut through the background clutter to focus on each client’s specific circumstances and take the time to truly understand each individual story. We then draw upon our long-standing experience in serving the alternative market to provide the mortgage solution best suited to your client.

Pino Decina is the EVP of residential mortgages at Home Trust. To learn more about the latest Home Trust initiatives, visit www.hometrust.ca.

www.mortgagebrokernews.ca

22-23_Home Trust-SUBBED.indd 23

23

26/01/2017 9:08:43 AM

SPECIAL PROMOTIONAL FEATURE

TECHNOLOGY

Flip the switch CMP spoke to Daryl French of GoMax Solutions about some of the technological innovations that are enabling Canadian brokers to up their game

AS REGULATIONS continue to tighten and uncertainty spreads throughout the mortgage industry, Canada’s brokers are being forced to do whatever it takes to gain a competitive edge. In today’s market, consumers need knowledge and guidance more than ever, and brokers are under pressure to deliver it (plus everything else) in a timely manner.

It’s definitely a challenging era, and there are some measures that all brokers need to take to thrive in it, regardless of the state of their database or their organizational skills.

The first step: embracing innovation and making well researched investments in technology and software systems.

The importance of technology The need to pursue innovation in order to streamline business operations is nothing new. Back in 2004, Daryl French, a co-founding partner of GoMax Solutions, was managing a team of 35 to 40 agents and noticed that his team was struggling to stay on top of their database management and client relationships. French decided to take matters into his own hands.

“We decided to begin developing an automated customer relationship management [CRM] program as a way of helping our agents stay connected to their databases and better run their own businesses,” French says. “We quickly recognized that a system designed specifically for the industry didn’t exist, so we decided to fill that niche.”

French has continuously updated and improved GoMax’s CRM, and what started

24

www.mortgagebrokernews.ca

24-27_Go Max-SUBBED.indd 24

26/01/2017 10:50:32 AM

What would your dream mortgage software look like?

Go

Ma

xO

All-in-one Website and Mobile CRM Solution

ffer

s

Organise and Network your Client Lists, who to call, when to call Stay in touch with your database to Dramatically Improve Conversion Rates Manage Deals and Follow-ups with tasks Save Time and Automate Mundane Tasks Access your Clients from Anywhere, Anytime Mortgage specific marketing tools and content

www.GoMaxSolutions.com

Toll Free 1-877-492-5164

Contact us today to find out how we can make your business dreams become business realities

24-27_Go Max-SUBBED.indd 25

26/01/2017 9:34:43 AM

SPECIAL PROMOTIONAL FEATURE

TECHNOLOGY

IMPROVING CLIENT COMMUNICATIONS WITH A CRM TOOL Sally first started using GoMax a number of years ago. At first, she just sent out a newsletter via the system on the 15th of every month. Sally was regularly achieving open rates of 20% to 30%. Then she shifted her strategy and started to include a little bit of her own content in each communication, which takes her 10 to 15 minutes to create each month.

“She started to add a bit of information about what’s going on in her life as well as recent events in the mortgage world from her perspective, in her words,” says GoMax’s Daryl French. “Within six months, her open rates jumped up to about 60%. I was talking to her before Christmas, and she said her open rates are now upwards of 80% and that her database has more than tripled in size in two years. It just shows how much people relate to the personal touch.”

as providing a turnkey internet presence now gives brokers the ability to accept, track and manage mortgage applications, which in turn helps foster and build more meaningful, long-term client relationships.

“Some agents embrace the technology and think it’s the best thing since sliced bread, whereas others are still using spreadsheets or even written lists,” French says. “It’s always a challenge to get people to try new technology, but once they do, retention rates are very high.”

French puts some of the industry’s reluctance to embrace technology down to the way that many brokers view themselves: as salespeople and not businesspeople.

“A lot of people are still running their businesses with that brushfire management style; they’re so busy that the files in front of them right now are their only concern,” he says.

“They don’t have that longer-term view of things. If a broker is in the twilight years and wants to wind things down, a filing cabinet full of paper files is nowhere near as valuable as a book of business that has trailer fees and a CRM set up.

“That’s a true business model,” he adds.

26

“And I think the industry has been too slow to adapt to that business model.”

The personal touch One of the most significant aspects of a CRM tool is the way it enables brokers to stay connected with their clients, regardless of their workload or physical location.

Numerous studies have been conducted on the mortgage industry, and the vast majority find that Canadian clients want to hear from

follow up or have an annual mortgage review call. And, more often than not, those clients show their appreciation by referring a friend or family member.”

The GoMax CRM has built-in triggers that notify a broker of timely dates, including annual mortgage reviews, renewals and other key events within the mortgage life cycle.

“Having technology in place is one thing, but it’s the personal touches that make the real difference,” French says. “The system tells you who to call and when, but most importantly, why to call. It means that each call has a purpose, and clients really appreciate that.”

Another aspect of the system that French has worked hard to develop is a feature that enables brokers to send out customized content. “Most brokers are not used to, and don’t have time to, create personalized content for their clients; if we give them a blank page, they won’t know what to include,” he says. “We give them the information, whether it’s a newsletter or an informational pamphlet, which they can easily tweak and add a bit of their own personality to. We give them all of the content and the ability to add the personal touch.”

French is proud that GoMax’s CRM achieves the ultimate business goal: It makes life easier and allows brokers to concentrate on the areas of the business that need more attention.

“Brokers should think of technology as an

“Brokers should think of technology as an investment, not a cost. If you embrace technology, it will simplify your life” their brokers – they want more contact.

“Our end user, the client, is telling us they want to hear from us, but we’re not delivering that service,” French says. “That’s the biggest risk for people who don’t embrace technology solutions – disappointing their clients. I’ve been a broker for 24 years, and clients are always happily surprised when I

investment, not a cost,” French says. “If you embrace technology, it will simplify your life.

It doesn’t matter if you’re away on holidays or have 20 files on your desk. Communications get sent out regardless of what you’re doing, which creates consistency, and that’s what clients want. They want to hear from brokers, and this helps them do that.”

www.mortgagebrokernews.ca

24-27_Go Max-SUBBED.indd 26

26/01/2017 9:34:24 AM

It’s about me!

Join CMBA in your province today!

FOR MEMBERSHIP INFORMATION IN YOUR PROVINCE CONTACT: CMBA Western Canada 604 408 9989, Ontario 877 564 4622, ATLANTIC 902 222 7022 or email info@cmba-achc.ca

Your best mortgage advice comes from a mortgage broker.

Join Now! cmba-achc.ca Western Canada 877 371 2916

24-27_Go Max-SUBBED.indd 27

•

Ontario 877 564 4622

•

Atlantic 902 222 7022

26/01/2017 10:13:13 AM

FEATURES

COVER STORY: HOT LIST 2017

HOT LIST In what was a tumultuous year for the Canadian mortgage industry, these 45 industrious professionals managed to not just survive, but thrive

FROM BROKERING major deals and acquisitions to launching new businesses to flourishing amidst the latest round of mortgage regulation changes, each member of this year’s Hot List is at the top of their game. The 45 members of this year’s list are not just the biggest movers and shakers in the mortgage world, but also the people who are finding creative ways to push industry boundaries, embrace technology, and fund a high level of quality deals, day in and day out.

28

www.mortgagebrokernews.ca

HOT LIST 2 7 2017

HOT LIST INDEX COMPANY

PAMELA VERMA

PAGE NAME

Broker Financial Group

46

Joe Rosati

Vice-president

Canada Mortgage & Financial Group

30

Ameera Ameerullah

LEND AT EASE

CanWise Financial

34

James Laird

Champion Mortgage

44

Doug Adlam

CMBA

46

Ajay Soni

CMBA-BC

42

Tiffany Pedersen

DLC Canadian Mortgage Experts

36

Dustan Woodhouse

DLC Home Capital Solutions

44

Scott Nazareth

DLC Mortgage Mentors

36

Collin Bruce

DLC Regional Mortgage Group

40

Alim Charania

DLC Regional Mortgage Group

43

Dave McNabb

DLC Regional Mortgage Group

43

David Wild

DLC Regional Mortgage Group

43

Pam Pikkert

DocAssist/MortgagePal

41

Jason Henneberry

Dominion Lending Centres

36

Gary Mauris

Dominion Lending Centres

46

Paul Therien

Equitable Bank

44

Andrew Moor

Equity Financial Trust Company

34

Katte Cai

First Foundation

39

Gord McCallum

Fisgard Capital Corporation

42

Hali Strandlund-Noble

BRUNO VALKO

Fundever

40

Tom Chung

Vice-president of national sales

Home Capital Group

47

Martin Reid

RMG MORTGAGES

Home Trust

39

Reaza Ali

Home Trust

43

Helen Brito

Legislative Assembly of British Columbia

34

Mike de Jong

Lend at Ease

29

Pamela Verma

The Lion’s Share Group

38

Claire Drage

Merix Financial

30

Boris Bozic

Mission35 Mortgages

40

Brian Hogben

Mortgage Alliance Commercial Canada

39

Michel Durand

Mortgage Architects

43

Dong Lee

Mortgage Architects

42

Christine Xu

Mortgages of Canada

34

Samantha Brookes

My Better Mortgage

32

Rachael Beemer

Quantus Mortgage Solutions

44

Eden Simari

RMAI Financial Group

40

Ron De Silva

RMG Mortgages

29

Bruno Valko

Pamela Verma has only been on this side of the pond for five years, but she’s already been recognized in the industry for her initiative, leadership and dedication. “It’s very humbling,” she says, although she admits that 2016 was one of the harder years since she arrived from the UK. “Last year it was a real challenge to keep agents motivated, given the new rules.” Speculation about the new regulations was on everyone’s lips, and meetings and seminars were so dreary that Verma sometimes wondered whether her team would be able to proceed.

But you know what they say about lemons and lemonade: To combat the apprehensive mood, Verma says she “used every ounce of my positive energy to reinvigorate our agents” and developed a motivational training program in addition to Lend at Ease’s current training schedule. She has plans to continue that program, and to also work to educate more clients on how to get out of private lending territory and become an A borrower.

A true veteran of the mortgage industry, Bruno Valko is widely regarded for both his inventiveness and his expertise. He has been in the industry for more than two decades, and his ingenuity and business acumen have brought features and products to the market that today are considered staples, including the matrix mortgage and value (no-frills) mortgages.

In 2016, Valko guided RMG to a banner year, leading the company’s expansion from $6 billion in assets under administration in 2012 to more than $15 billion in 2016. Valko also grew funded volume for RMG from $4.2 billion in 2015 to $5.3 billion in 2016, and he managed a team that increased volume by 40% over the last two years, with a funding ratio of 76%. “It was through his direct leadership style and experience that the team was able to achieve these results,” a colleague says.

Valko was also behind the development of many events beneficial to brokers, and has been recognized for his contributions to the industry by CIBC chief economist Benjamin Tal, TMG president Mark Kerzner, FNF Canada and Genworth.

“Bruno is a dedicated family man, and at this point dedicates all his extra time to his daughter and son’s activities,” a colleague says. “Having said that, he attends all industry functions at the local and national level and is a supporter – by presence and sponsorship – of many industry events and functions.”

Sherwood Mortgage Group

31

Eric Iankelevic

Street Capital

46

Kim Weishuhn

TMG The Mortgage Group

32

Sally Kwan

True North Mortgages/THINK Financial

35

Dan Eisner

Verico Advent Mortgage Services

44

Jim Tourloukis

Verico Dreyer Group Mortgages

47

Meryll Dreyer

Verico Mortgage Management Group

32

Calum Ross

Verico Xeva Mortgage

38

Bernadette Laxamana

www.mortgagebrokernews.ca

29

FEATURES

COVER STORY: HOT LIST 2017 BORIS BOZIC

AMEERA AMEERULLAH

President and CEO

Founder and CEO

MERIX FINANCIAL

CANADA MORTGAGE & FINANCIAL GROUP

At the end of 2016, National Bank announced it planned to use a third-party model for its mortgage funding, specifically through mortgage process outsourcing firm Paradigm Quest. As part of the agreement, Paradigm will only originate mortgages in the broker channel under the Merix Financial brand. Orchestrating this kind of deal with one of the Big Six banks is huge, and Merix Financial president and CEO Boris Bozic says Merix is “delighted the bank had this confidence in us. It adds to our list of institutional partners, lets Merix offer new products and lets us support mortgage brokers more than ever.”

A former broker himself, Bozic launched Merix Financial in 2005 and has worked his way into the Mortgage Hall of Fame. With more than $29 billion in funded mortgages and more than 200,000 customers across the nation, Merix consistently ranks as one of Canada’s premier lenders. Apart from the deal with National Bank, Merix had a busy 2016. The Lendwise brand formally launched NPX, an uninsured non-prime mortgage, which Bozic says will be enhanced in 2017 and beyond, and which could be just the beginning of a slew of new products designed to make Merix a “one-stop solution.” He’s hinted that 2017 will be another busy year for the lender, which has goals to digitize its business to increase its accessibility to consumers and simplify the lending process.

Although Bozic believes the role of brokers will change significantly in the coming years, he thinks the big guns in the industry will be able to face the consequences and outcomes. But the best way to do that, he says, is to become politically engaged and speak up in a unified way. “We must become far more politically involved,” he says. “As an industry, we’ve become far too reactive versus proactive.”

As the founder and CEO of Canada Mortgage & Financial Group, Ameera Ameerullah has funded successful projects in residential and commercial real estate, hotels, mines and power plants across North America, Costa Rica, Barbados and Africa. In 2016, she had the distinction of funding the largest residential construction loan on Home Trust’s books, as well as being the exclusive broker and advisor to the Turkish Chamber of Commerce. Canada Mortgage & Financial Group was also named one of CMP’s Top Brokerages in 2016, and Ameerullah was among CMP’s Top Commercial Brokers.

Ameerullah has a background in social services, which she calls upon for her other interests. She is the founder of the DavidAnn Foundation for HIV Aids & Cancer, Restore Humanity and The Homeless & Orphan Foundation of Canada, and she’s a supporter of Casey House, the North York Women’s Shelter, Covenant House, Providence Healthcare, Sick Kids Hospital and the Bowmanville Nursing Home.

THE BEST APPRAISERS IN CANADA ARE LICENSED & REGULATED BY

LOOK FOR THE PROFESSIONAL DESIGNATIONS

DAR & DAC

CANADIAN NATIONAL ASSOCIATION of REAL ESTATE APPRAISERS PROFESSIONAL

·

TRUSTED

·

ACCOUNTABLE

CALL 888-399-3366 or

FIND AN APPRAISER at www.cnarea.ca

30

www.mortgagebrokernews.ca

HOT LIST 2 7 2017

ERIC IANKELEVIC Mortgage broker SHERWOOD MORTGAGE GROUP

Last year, Eric Iankelevic received the Lifetime Achievement Award from Mortgage Architects [MA] for funding more than $500 million worth of mortgages, as well as the MA President’s Club Award for more than $100 million in annual mortgage funding. He was also the recipient of a Readers’ Choice Award from his local paper, the Thornhill Liberal.

He’s come a long way since working for the provincial government. “In 2008, I left my position at the Ontario Ministry of Finance as an associate director in the Strategic Asset Management unit to pursue my passion and interest in mortgages,” he says.

“Today, I am proud of my achievements and my ability to work with families to help realize their dreams and aspirations.”

www.mortgagebrokernews.ca

31

FEATURES

HOT LIST

COVER STORY: HOT LIST 2017 SALLY KWAN

CALUM ROSS

Mortgage broker

Mortgage broker

TMG THE MORTGAGE GROUP

VERICO MORTGAGE MANAGEMENT GROUP

Sally Kwan was Canada’s highest-funding female broker in 2016, but she takes a different approach to her success than some of the other people on this year’s Hot List. She doesn’t set goals for herself or her business; instead, she says the most important thing is for a mortgage broker to be diligent and disciplined every day. Sure, competition is fierce, but Kwan doesn’t view other brokers as her biggest challenge – rather, she sees every day as an opportunity to compete against herself.

“Contrary to a lot of people who set their goals, my goal is to do my best.

Right or wrong, I don’t set a target,” she says. “Be diligent every day. Just do your best and compete with yourself.”

Kwan didn’t see many easy deals in 2016; the one that she’s most proud of was a difficult commercial deal worth more than $100 million.

“There were some hiccups beyond our control, but we gave our best efforts over and beyond our duties and did our best to help the group of lawyers to solve their differences and help the client fund the deal,” she says. “I’m proud that we really pitched in to try to help cut down the red tape. Our clients were really appreciative.”

Kwan says her team has more than 100 years of collective experience, and she herself started in the business almost 20 years ago – and, she says, there are some things that haven’t changed much since then. “I really enjoy the business. I enjoy meeting people, talking to people and understanding their real needs instead of what they tell you.”

While Kwan believes the coming year will see some past mortgage trends resurfacing (such as the proliferation of more B deals than A deals), she also hopes that in 2017, brokers will show more strength when it comes to proving their value and worth.

“I think as an industry, we should consolidate our stand and have some representation with the government, and express to them that we would like a more level playing field,” she says. “And also stress our importance in playing a role to help the consumer – we’re experienced and licensed professionals who give value to consumers because we give them options. I hope we could, as an industry, emphasize that to the government regulatory organizations – hopefully they will understand our value to consumers. At the moment, I don’t see that, and my feeling is they’re coming down on our industry more than other industries.”

32

www.mortgagebrokernews.ca

2 7 2017

Not only is Calum Ross a past winner of the CMA for Mortgage Broker of the Year, but also Verico recently named Ross as its Broker of the Year, and his brokerage received the Top Choice Award for Top Mortgage Brokerage in 2016.

Ross specializes in showing clients how to use mortgage borrowing and home equity to support long-term financial goals. He was one of the brokers who called for tougher mortgage qualifications for borrowers seeking a five-year fixed rate, months before those regulations were changed.

Also in 2016, Ross published a book, The Real Estate Retirement Plan: An Investment and Lifestyle Solution for Canadians, which teaches Canadians how to use real estate as an investment and retirement solution.

RACHAEL BEEMER Principal broker MY BETTER MORTGAGE

Rachael Beemer may have a small team, but it’s mighty. A past winner of the CMA for Mortgage Brokerage of the Year, her goal is to do much more than help people get mortgages; it’s to help families become debt-free and financially independent. Beemer was a member of CMP’s Women of Influence list in 2016, partly due to her role in launching a successful radio campaign that significantly boosted Verico’s presence in her market.

FEATURES

COVER STORY: HOT LIST 2017 KATTE CAI Mortgage underwriter EQUITY FINANCIAL TRUST COMPANY

SAMANTHA BROOKES Founder and CEO MORTGAGES OF CANADA

Ask anyone about Katte Cai, and you’ll likely hear only good things: Her clients love dealing with her; she offers to help everyone while treating them with the utmost respect and best service; she pulls more than her own weight and does it with a smile. Cai has the stats to back up her reputation, too – she’s funded more volume and acquired more new business than any other underwriter at Equity; in one year, she has grown business by more than 200%. She’s also helped Equity with its sponsorship of the Daily Bread Food Bank.

JAMES LAIRD President CANWISE FINANCIAL

By their very nature, startups are challenging and uncertain. But to James Laird, those are positive traits, not negative ones. Laird broke off from True North Mortgage in late 2014 to start CanWise Financial, and has since grown it into a national brand.

“I definitely love the early stages of business,” he says. “I love getting things off the ground; I love the challenge and the high stakes. I feel like I thrive in that environment, and I can sometimes get a bit bored when there’s not that challenge and that kind of do-or-die type of situation.”

Laird is especially proud of CanWise’s performance in 2016: The company closed about $940 million worth of mortgages, versus $386 million in 2015. CanWise now has 28 full-time employees at its offices in Montreal, Toronto, Calgary and Vancouver, and for Laird, looking ahead to 2017 isn’t going far enough.

“I want to get to $5 billion of funded volume by 2021, and that comes with continuing to focus on technology that allows a more efficient customer experience for consumers and also allows our staff to execute their job in a more efficient way,” he says. “As we build out each piece of technology, we’re always considering how it’s going to help the consumer, how it’s going to help us internally to deliver and execute, and how it’s gonna help our lenders in getting a high volume of good-quality of mortgages like they desire. I think what’s going to continue to play a huge role in our industry is technology enabling efficiency across all the different stakeholders in the industry.”

Laird, who is part-owner of mortgage comparison site RateHub, is familiar with the pace of modernization in the Canadian mortgage industry, and thinks the digital revolution is just beginning to make the mortgage experience more efficient for consumers.

“Consumer behaviour in Canada is changing, but it’s slow,” he says. “Most mortgages in Canada are still originated in an in-person environment, either with a bank branch or a mortgage broker in-person, and you can be extremely successful doing that, and that’s how most of the billions of dollars are funded today. But it’s slowly changing. Banks are still dominant, and I think brokers who operate in person still have lots of runway, but then there’s also opportunity for people within the industry to focus on the changing consumer, the younger consumer, who understands technology, is comfortable with technology and prefers an efficient transaction over an in-person, more time-consuming transaction.”

34

www.mortgagebrokernews.ca

Samantha Brookes has more than 14 years of experience in the mortgage business, but only recently has she started making major waves in the industry. Brookes is at the helm of Mortgages of Canada, one of the fastestgrowing full-service mortgage brokerage firms in Canada. While some brokers are all business when it comes to lending and dealing with clients, Brookes offers a more compassionate approach to both mortgages and investing. She’s appeared in numerous media outlets, including BNN, The Globe and Mail, Rogers Television and the Huffington Post. She’s also the creator and host of Samantha TV, a mentor, a motivational speaker, and has numerous film credits as an actress and stuntwoman.

MIKE DE JONG Minister of finance LEGISLATIVE ASSEMBLY OF BRITISH COLUMBIA

Anyone who didn’t know who Mike de Jong was when 2016 started certainly knew by the end of July, when the British Columbia finance minister and government house leader unveiled a bill that would impose a 15% tax on foreign buyers in Vancouver – the first measure introduced to address controversial foreign buying practices in the city and cool off its overheated housing market.

“While investment from outside Canada is only one factor driving price increases, it represents an additional source of pressure on a market struggling to build enough new homes to keep up,” de Jong said when introducing the bill.

“This additional tax on foreign purchases will help manage foreign demand while new homes are built to meet local needs.”

HOT LIST 2 7 2017

DAN EISNER CEO TRUE NORTH MORTGAGE/THINK FINANCIAL

When Dan Eisner appeared on Dragon’s Den to pitch his idea of mortgage stores staffed by salaried employees, the dragons didn’t bite. The public did, however, and Eisner continues to defy the odds with the success of his innovative storefront model. Over the past decade, True North Mortgage has opened more than 10 retail locations, and in 2016, Eisner launched THINK Financial, his own CMHC-approved lender, which provides residential mortgages.

“You’ve got to find your competitive advantage – and whatever that is, really focus on it, and clients will be drawn in,” he says. “We use rates, and we’re very rate-focused. We don’t get distracted by B deals.

We don’t do commercial deals.

We don’t look at those; all we care about are those triple-A clients.”

www.mortgagebrokernews.ca

35

FEATURES

HOT LIST

COVER STORY: HOT LIST 2017

2 7 2017

GARY MAURIS

COLLIN BRUCE

President and CEO

Mortgage broker

DOMINION LENDING CENTRES

DLC MORTGAGE MENTORS

For Gary Mauris, the head of Canada’s largest mortgage network, 2016 was an exceptional year: DLC brought Mortgage Architects, Capital Partners and Marlborough Sterling into the fold, and launched an insurance brokerage, InsureLine. Meanwhile, Mauris himself appeared on Face the Nation with Prime Minister Justin Trudeau, was awarded the 2016 Tri-Cities Chamber of Commerce Business Leader of the Year Award and was inducted into the Mortgage Hall of Fame. “Honestly, I don’t know how I’m gonna top it,” he says.

For Mauris, this industry recognition comes after 11 years of defining his place in the mortgage world and finding himself and his company in the crossfire of competitors and the broader industry time and time again. “To finally see that changing and getting the confidence and have people really start to embrace and endorse you – it’s quite flattering, actually,” Mauris says. “It’s kind of surreal. You kind of pinch yourself and just think, ‘Hey, look what we built.’ And the good news is, we’re at the bottom rung of the ladder; we’re just starting. There’s so much more for us to do. We’ve got great support in the industry now, our voice is being heard, and that’s incredibly encouraging.”

Apart from his obvious pride in DLC, Mauris is also extremely proud of his charity work with the I Am Someone Campaign to End Bullying, as well as Bikes for Kids, which in 2016 facilitated the gift of new bicycles for more than 2,000 kids on Christmas morning. “Making a difference and using your influence is, in my opinion, incumbent on being successful,” Mauris says. “It’s really cool being number one; it’s cool to do what we’ve done in the Canadian mortgage space, but it’s way cooler to make a difference in the lives of others.”

The only cloud that sits over his year is the fact that the Canadian government failed to address the house of cards that is unsecured, high-interest debt – something Mauris confronted Prime Minister Trudeau about directly. But when it comes to the frenzy that the tightened mortgage regulations brought in 2016, he’s not one for negative sentiment.

After all, he says, the difference between someone who’s ordinary and somebody who’s extraordinary is knowing that they’re always going to be in a climate of change. Given that context, he only worries about what he can control and what’s within his immediate power.

“Our space has dramatically changed and looks significantly different now than it did 10 years ago, and it’s going to look significantly different in the next 10 years,” Mauris says.

“I promise you that we will never sit on our laurels. We are going to continue to innovate and create, look for opportunities, and aggressively pursue them. Period. It doesn’t matter what anvil they throw us.”

When it comes the mortgage landscape in 2017, Mauris describes himself as “cautiously optimistic,” but is quick to point out that the Canadian mortgage industry is made of resilient individuals who have a knack for adapting.

“We are aggressively running into the eye of the storm to find opportunity and come out on the other side even stronger,” he says. “If there is a good business that we think makes sense and that is a nice fit and that is core to our existing businesses, then we’re buyers. Verico, if you’re selling, call me.”

In 2016, Collin Bruce was the number-one mortgage broker in Canada in terms of both volume and deals funded. As if that weren’t impressive enough, this is the third consecutive year he’s held this title – and it earned him a place at the head of CMP’s Top 75 Brokers list. A banker turned broker, Bruce leads a team based in Edmonton, Alberta. He credits his high volume in part to multiple streams of advertising – including television, radio, real estate publications, online and brokerage contests – which help keep his brokerage top of mind for potential clients when they’re deciding where to go to get a mortgage.

36

www.mortgagebrokernews.ca

DUSTAN WOODHOUSE Mortgage consultant DLC CANADIAN MORTGAGE EXPERTS

Regarded as one of the hardestworking brokers in the industry, Dustan Woodhouse consistently ranks among CMP’s Top 75 Brokers. Woodhouse is an author as well as a broker, and in 2016, he published the second and third books in his series, Be the Better Broker.

His life outside the office is just as full as his professional one: He’s an avid outdoorsman who enjoys hiking, biking and skiing, and he supports a number of charitable and nonprofit organizations, including Beat Street Feet, the BC Cancer Foundation, Breakfast for Learning, the British Columbia Lung Association and 100 Brokers Who Care.

THE SECRET OF GETTING AHEAD IS GETTING STARTED

WE HAVE THE MARKETING TOOLS YOU NEED

PERSONALIZED WEBSITES

UNIQUE PRINT MATERIAL

EXCITING E-MAIL TEMPLATES

PROFESSIONAL BRANDING

Begin your journey to incredible success with MA! visit JOINMA.ca today

© Copyright 2017, Mor tgage Architects Inc., All rights reserved.

FEATURES

COVER STORY: HOT LIST 2017 CLAIRE DRAGE

BERNADETTE LAXAMANA

Owner and CEO

Partner/broker

THE LION’S SHARE GROUP

VERICO XEVA MORTGAGE

Claire Drage has made it her business to work for the underdogs: first-time homebuyers, the self-employed, immigrants to Canada and those who have poor credit ratings. Her experience working with such a varied range of clients led her to found The Lion’s Share Group in 2010. She’s also the founder of The Mortgage Training Centre, a platform that delivers innovative training programs in an easy-to-use online environment, providing brokers the flexibility to learn at their own pace and in their own space. The goal is to help educate Canadian brokers, showing them effective ways to market and differentiate their businesses while increasing market share. In 2016, Drage expanded her training company and is now in partnership with Mortgage Professionals Canada. At the same time, she has increased her originations substantially, and is ranked in the top 5% of brokers nationally.

Bernadette Laxamana won Mortgage Professionals Canada’s Mentor of the Year Award in 2016, highlighting her leadership in the industry. As the education facilitator at Verico Xeva Mortgage, she supports Xeva’s team of agents with Xeva TV and Xeva Mastermind, Coaching & Mentorship. “Education and learning is a huge part of my life,” Laxamana says. “I like sharing what I know. Every day, I try to make a difference, and I make sure that somehow, some way, I do.”

Laxamana has been with Verico Xeva Mortgage since 2003, and over the past 13 years, she has expanded her services to include client appreciation events and monthly first-time buyer seminars. She’s been on the CMP Top 75 Brokers list for three years running; in 2016, she funded 198 loans for a total volume of more than $74 million.

38

www.mortgagebrokernews.ca

HOT LIST 2 7 2017

REAZA ALI Senior business development manager HOME TRUST

GORD MCCALLUM Founder, president and CEO FIRST FOUNDATION

Reaza Ali recently made CMP’s list of the industry’s best BDMs – and for good reason. During 2016, Ali stood out from the pack by being a terrific listener who brings patience and thoughtful consideration to every situation. He’s also gained a reputation as someone who looks at the big picture to gain a solid understanding of what his brokers need.

“I believe the most important services we provide are meaningful support and quality knowledge-sharing – not just with respect to services and products, but overall industry education as well,” he says.

“This knowledge-sharing can help guide brokers in meeting their clients’ needs, and at the same time, support client retention over the longer term.”

MICHEL DURAND President and principal broker MORTGAGE ALLIANCE COMMERCIAL CANADA

After winning Best Commercial Mortgage Broker of the Year at last year’s CMAs, Michel Durand and his team at Mortgage Alliance Commercial Canada [MACC] are set to do nothing but grow. “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,” he says. “It’s nice to keep everyone with a full belly, but we need more bellies to fill.”

Not only does Durand serve as the president and principal broker of MACC, he’s also the co-founder of Multi-Prêts Commercial; both companies service commercial mortgage needs for clients across the country. Durand is dedicated to improving the reputation of the brokerage industry, and works tirelessly at keeping all parties in the commercial mortgage field informed of the current issues and changes that affect both borrowers and lenders.

If there’s one broker who is consistently pushing the boundaries of the mortgage industry, it’s Gord McCallum.

In 2016, his company, First Foundation, launched its own bank branch to become a more holistic financial services provider.

“It’s one more thing that we’re able to do for our clients and the people in neighbouring communities,” McCallum says, “and so we’re very happy to have it available.”

First Foundation also launched layoff insurance in Alberta in 2016 as a diversified product line. “We wanted to do as much as we could help families in Alberta who were struggling, just to give them an added little bit of protection,” McCallum says. “We’re happy that people who needed it were able to have access to it and stay in their homes as a result.”

Helping Albertans was also a business opportunity, of course, but McCallum has a history of giving back to his community by supporting The Terra Centre, Habitat for Humanity and the Alberta Cancer Foundation, among others. McCallum says he wants to make sure his four kids know that helping others should come from the heart, as opposed being a good marketing tactic. “I think it should really mean something to them, and they should strive to make the biggest impact for the people who really need the services rather than for their own marketing efforts or optics,” he says. “I’d rather have better results than better optics.”

While the past year certainly had its challenges, McCallum says he faces even more heading into the new year, such as finding ways to clearly communicate how First Foundation can differentiate itself in the marketplace. But he’s proud of the company’s substantial success with its financial division, as well as in bringing together a new team.

“Because of what we’ve been able to build, I feel like all the main pieces are in place for us to scale up our operation now,” McCallum says, “so look for us to be growing in partnership with other brokers and people outside the mortgage industry.”

Also on the horizon for 2017 is the return of Canadian Mortgage Hangout, a web series McCallum regularly participates in, which features roundtable discussions on everything from technology shake-ups to the ramifications of the regulatory changes, which McCallum believes are anti-competitive and will limit choice. Still, he says, “I’m confident that brokers and our associations will continue to fight for that position, which is the competition and choices of benefit to the consumer.”

Furthermore, McCallum says he’s confident that “our lending partners and brokers alike will find good, creative, positive ways to deal with the changes that have been placed upon us. It’ll be really exciting to see what the new year brings in terms of innovation in the channel and access to new sources of funding and maybe new ways of securitizing things so that consumers continue to have good choices.”

www.mortgagebrokernews.ca

39

FEATURES

COVER STORY: HOT LIST 2017 RON DE SILVA CEO RMAI FINANCIAL GROUP

In 2006, Ron De Silva decided to launch a broker-driven and broker-focused network that operated under the guiding tenets of transparency and simplicity. Today, Real Mortgage Associates [RMAI] continues to operate by the same values, and got even stronger last year when it joined forces with Broker Financial Group [BFG]. Not only do the two companies get to share resources, but they also gain a competitive advantage in terms of volume and are better able to compete with the larger networks. For his part, De Silva is most excited about RMAI brokers being able to use BFG’s technology platform, Scarlett. “It will open up opportunities for them to add new revenue streams to their existing business,” he says.

ALIM CHARANIA Mortgage broker DLC REGIONAL MORTGAGE GROUP

BRIAN HOGBEN Mortgage broker MISSION35 MORTGAGES

Brian Hogben’s biggest challenge in 2016 was also his biggest accomplishment: “2016 was a tough year for change, as we went 100% independent with our own brand, Mission35 Mortgages,” he says.

“Making the change had a lot of moving parts, and even resulted in some people leaving our team.”

Mission35 Mortgages focuses not only on securing mortgages, but also on financial freedom, literacy and education through real estate and investment. “As our space becomes increasingly more competitive in 2017, we think that by adding an exceptional amount of value to our customers, we will be successful,” Hogben says. “We are doing this to create a community of like-minded individuals all with similar goals, and with ongoing education for our clients on real estate investment. We will be doing this through online education courses as well as monthly investment seminars on how to redefine your retirement.”

Hogben has also been working on a book, slated to be published this spring.

The title? Mission35.

40

www.mortgagebrokernews.ca

Accolades rained down on Alim Charania in 2016. Not only was he one of CMP’s Young Guns, but he also received DLC’s Platinum Award for funding an incredibly high volume of mortgages. As any broker in Alberta knows, the landscape there has been particularly challenging, and Calgary-based Charania has stepped up his game in order to help struggling clients secure financing.

Charania also coaches a youth hockey team and supports his community in various other ways, including organizing events. Like other members of this year’s Hot List, Charania is a standout player on social media; an expert voice in mainstream media outlets such as CBC, the Financial Post and the Huffington Post; and a strong advocate for the mortgage broker industry.

TOM CHUNG Head, technology division FUNDEVER

If there’s a theme to this year’s Hot List, it’s how technology is increasingly transforming the lending world. Tom Chung leads the technology division at Fundever, a fintech company that developed a digital platform to connect mortgage brokers with commercial lenders across Canada. The software streamlines the origination of commercial loans, acting as a marketplace where brokers can submit loan applications and only interested lenders will reply.

Chung is responsible for translating the company’s business objectives into technical requirements, and setting standards and processes to ensure business and technical product goals are met with efficiency. A former engineer and solutions architect at Trulioo, Chung assisted in growing the company into a global leader in electronic identity verification and a pioneer in the fintech space.

Fundever launched in November 2016, and Chung says the company “has since received a lot of great feedback, which helped us greatly in terms of refining our product.” Its greatest appeal is that it can help brokers increase efficiency, since they only have to provide a minimal amount of information when they submit an application.

The best part: the software is free to use and only available to licensed brokers.

HOT LIST 2 7 2017

JASON HENNEBERRY President DOCASSIST/MORTGAGEPAL

In 2016, mortgage broker Jason Henneberry hopped on the technology train and founded DocAssist, which helps Canadian mortgage professionals grow their businesses and free up more time through cost-effective administrative support functions, including document management, underwriting and fulfillment services. As it turns out, brokers were waiting for this kind of option.

“We’ve had a phenomenal response, with nearly 500 brokers signing up for our services in the first six months of operations,” Henneberry says. “It’s only been live for a few months, but the potential is clear.” Clear enough that Verico asked Henneberry to build and manage its submission desk, DealAssist, which officially launched in October 2016.

www.mortgagebrokernews.ca

41

FEATURES

COVER STORY: HOT LIST 2017 TIFFANY PEDERSEN

CHRISTINE XU

Events and communications manager

Mortgage broker and private lender

HALI STRANDLUNDNOBLE

CMBA-BC

MORTGAGE ARCHITECTS

SVP of residential mortgage investments and broker relations

Tiffany Pedersen joined the Canadian Mortgage Broker Association – British Columbia (formerly MBABC) after serving on the board of directors as a volunteer committee member. She was part of the teams that helped roll out the MBI certification and develop the national public awareness campaign advocating the use of a mortgage broker. She works to ensure that the organization’s events are well attended, informative and fun, and helped the industry raise more than $60,000 for Canucks Place Children’s Hospice. Pedersen is also a founding committee member of KARES [Kids at Risk Embracing Success], a national program that allows key industry partners to make a meaningful difference in the lives of Canadian at-risk youth.

Christine Xu was the most successful alternative broker by volume in Canada last year, and the second-highestfunding female broker. Her particular strength is working with new immigrants and those who speak Mandarin as their first language, as well as young entrepreneurs. The latter is of particular importance to her, since she owes her start in the mortgage business in part to the help that she received from a broker after she and her husband, both self-employed at the time, had been rejected for a mortgage. As a private lender, she’s also a vocal advocate for those borrowers who have fewer options available to them because they’ve been refused by A lenders, especially self-employed borrowers.

FISGARD CAPITAL CORPORATION

As the founding director and SVP of residential mortgage investments and broker relations at Fisgard Capital Corporation, one of Western Canada’s largest private MICs, Hali StrandlundNoble oversaw the company’s crosscountry expansion, which broadened its scope from British Columbia and Alberta to Ontario, Saskatchewan and Manitoba.

Strandlund-Noble is also a cofounder of Women in the Mortgage Industry, an online forum showcasing mentorship, leadership, industry education and discussions, as well as a co-founder of KARES, an organization that works to improve the lives of marginalized youth.

We would like to thank all our agents/brokers, office staff, lender and referral partners and of course, our clients! What a privilege it is to know and work with all of you. We are so proud of our amazing numbers . . . 700M in funded volume and over 2000 mortgages closed in 2016. Thank you for your confidence in us, your support in our abilities and your trust in our endeavours – we could not have achieved this without all of you!!!!!

We have an amazing team at DLC Home Capital Solutions and we are looking forward to an even greater 2017!!

Let’s talk . . .

For Golden Horseshoe contact Trevor - tdaly@dominionlending.ca For the GTA contact Sarah - smakhomet@dominionlending.ca For Toronto contact Jonathan - jtillger@dominionlending.ca They can be reached at 1-877-662-0225 HomeCapitalSolutions.ca

42

www.mortgagebrokernews.ca

HOT LIST 2 7 2017

DAVE MCNABB, DAVID WILD AND PAM PIKKERT Mortgage brokers DLC REGIONAL MORTGAGE GROUP

David Wild, Dave McNabb, Pam Pikkert and their team at DLC Regional Mortgage Group have been building on the success of their 2015 Canadian Mortgage Award for Best Community Service Effort of the Year. You don’t get a community service award without being an upstanding member of the community, and these three lead by example. McNabb opened Regional Mortgage Corporation in 1997, and the company has grown rapidly every year since. The group now boasts 40 full-time staff in three offices in Red Deer, Calgary and Spruce Grove, Alberta.

Wild has a background in dealing with consumers who have poor credit, and that makes him the ideal person to either help his clients get approved or come up with a game plan to put them on the path to mortgage approval. Pikkert’s foray into the world of mortgage brokering began with a “ghastly” experience applying for a mortgage through a bank, “followed by a terrific one with a mortgage broker.”

She recruits new agents to the company and takes great pride in finding people who match the calibre of the current team.

DLC Regional Mortgage Group and its staff have been very involved in the community in various ways, but their major charitable contributions have been to the Kids Cancer Care Foundation of Alberta and the Golf a Kid/Build a Kid to Cure campaigns.

HELEN BRITO

DONG LEE

Assistant vice-president of mortgage lending

President

HOME TRUST

MORTGAGE ARCHITECTS

At Home Trust, Helen Brito manages a stellar team of underwriters and service providers, and truly lives up to her leadership role. “The most significant accomplishment for me personally this past year was the implementation of a series of process improvement programs designed to improve our team’s efficiency,” she says. “The goal for these projects was to further elevate the level of service we provide to the broker community and improve the turnaround time on new mortgage applications. This is just one part of the overall service improvement initiatives Home Trust has completed this past year, the results of which have made it possible to provide a new service level commitment for our broker partners, as recently announced by Pino Decina, Home Trust’s executive vice-president of mortgage lending.”

Brito believes that in the coming year, more people will come to rely on brokers.

“Home Trust has always valued the partnerships we have established with the broker community,” she says, “and as we prepare for the new year, I am committed to strengthening these partnerships.”

After Mortgage Architects was acquired

by Dominion Lending Centres in 2016, Dong Lee stepped up to the plate to lead the company as president from his previous position as VP of operations.

He’s only been in the role for a few months, but with 20 years in the financial services industry under his belt, he has a wide range of experiences to draw on, including overseeing the strategic development of alternate mortgage delivery channels, playing a critical role in acquisitions and leading the integration of brokerage operations.

www.mortgagebrokernews.ca

43

FEATURES

HOT LIST

COVER STORY: HOT LIST 2017

2 7 2017

JIM TOURLOUKIS

SCOTT NAZARETH

Owner and president

Associate mortgage broker

VERICO ADVENT MORTGAGE SERVICES

DLC HOME CAPITAL SOLUTIONS

Although Jim Tourloukis isn’t the highestfunding broker in Canada, being second best in this category is nothing to sneeze at. Tourloukis is still a major player in the industry, and he can’t imagine it any other way. “There is so much business and opportunity in this industry that you can’t help but be successful as long as you are able to adapt and change with the market,” he says.

While all mortgage brokers are on the side of the consumer, Scott Nazareth took that mission one step further in 2016 by collaborating with developers and graphic designers to build Loanerr.ca, an online loan marketplace where consumers can “securely shop, apply and obtain home loan financing online.” Nazareth was also named one of CMP’s Young Guns in 2016.

“Scott is genuinely passionate about the real estate industry and has a bright future ahead,” a colleague says. “His acumen and leadership skills, along with a tenacity to develop a new way for Canadian homebuyers to understand and access a difficult housing market, are proof that he’s got a solid future to be developed for years to come.”

DOUG ADLAM

ANDREW MOOR

President and mortgage broker

President and CEO

CHAMPION MORTGAGE

EQUITABLE BANK

Doug Adlam and his team at Champion Mortgage received the Canadian Mortgage Award for Best Customer Service from an Individual Office in 2015, so they had a lot to live up to last year. And Adlam delivered, constantly challenging the company to raise the bar on client satisfaction. He specializes in first-time homebuyers and debt consolidation, guiding clients toward ways to maximize their equity, minimize their interest and manage their mortgages responsibly. He’s also part of CMHC’s Broker Advisory Group, and supports various organizations both within and outside of his community, including playing an active role in the Rotary Club of Guelph and Chamber of Commerce community events.

When you’ve been president of a company for almost 10 years, it’s sometimes hard to maintain positive momentum, but Andrew Moor, president and CEO of Equitable Bank, has managed to do just that. In 2016, Equitable made headlines for launching the all-digital/no-branch EQ Bank and offering an industry-high 3% no-fee savings account. “Each year, Canadians are leaving billions of dollars of interest on the table,” Moor said in a statement about the launch. “Our goal is to ensure they get the most out of their hard-earned money. Without the cost of traditional branches, we can focus on our customers first, helping them achieve their savings goals faster.”

Equitable Bank also received $50 million worth of capital in 2016 from OMERS, the pension plan for Ontario’s municipal employees, for common shares of the company.

EDEN SIMARI Mortgage agent QUANTUS MORTGAGE SOLUTIONS

A past winner of the CMA for Best Lender BDM of the Year, Eden Simari started out working on the lender side with First National Financial before joining Quantus Mortgage Solutions as a mortgage agent. She says her specialty is “reading fine print,” something most people hate. Rather than just helping to secure mortgages, she’s made it her prerogative to establish and cultivate long-term client relationships.

44

www.mortgagebrokernews.ca

BROUGHT TO YOU BY:

Join us in celebrating the best in the industry FRIDAY, MAY 12TH 2017 THE LIBERTY GRAND TORONTO

NOMINATIONS CLOSE FEBRUARY 24, 2017

LUISA HOUGH

Winner of the Street Capital Financial Corporation Award for Mortgage Broker of the Year (Fewer Than 25 Employees)

ANGELA FROESE (MOLYNEAUX)

Winner of the Broker Financial Group Inc. Award for Best Lender Underwriter of the Year

WE WOULD LIKE TO THANK OUR PARTNERS BROUGHT TO YOU BY:

EVENT PARTNERS

OFFICIAL PUBLICATION

ORGANISED BY

CANADIANMORTGAGEAWARDS.COM

FEATURES

COVER STORY: HOT LIST 2017 KIM WEISHUHN Manager of broker partnerships, Western Canada STREET CAPITAL

Underwriters are often the unsung heroes of the mortgage industry, but since Kim Weishuhn came onto the scene, she’s been recognized as one of the best in the business. Currently at Street Capital, Weishuhn comes from a banking background and became a broker five years ago, then made the transition to underwriting three years ago.

A past recipient of the CMA for Best Newcomer, Lender Underwriter, Weishuhn says that although stricter mortgage guidelines have put more pressure on underwriters, she still loves every minute of her job.

JOE ROSATI CEO BROKER FINANCIAL GROUP

As the CEO of Broker Financial Group [BFG], the channel’s newest network, Joe Rosati oversaw BFG’s joint purchase agreement with RMAI in 2016, which allows both companies to share technology, administrative resources, payroll, compliance and corporate relationships. “I think what it does for us is it gives us economies of scale as far as administration goes,” Rosati says. “We can leverage our efficiencies.”

Under Rosati’s leadership, BFG also embraced a technology known as Scarlett, which provides the nuts and bolts brokers need from end-to-end. “Technology is going to be the future of our industry,” Rosati says, “and those are the tools we need to give our brokers the ability to compete in the marketplace.”

AJAY SONI PAUL THERIEN Vice-president of training, Western Canada

President CMBA

DOMINION LENDING CENTRES

When Paul Therien left his long-held post as the head of Centum to join rival network DLC, he made headlines for shaking up the industry – but for Therien, the decision was driven by a need to shake up his life. “I was looking to make a lifestyle change, and I wanted to refocus my career, so when I sat down and really thought about the direction I wanted to take in my life and thinking about organizations that would allow this opportunity, Dominion was the first company I thought of,” he says. As VP of training for Western Canada, Therien now gets to focus on helping brokers grow their businesses.

46

www.mortgagebrokernews.ca

This is Ajay Soni’s second appearance on our Hot List, and he hasn’t taken his foot off the gas pedal yet. Soni completed his last term as president of the CMBA-BC in 2016 on a high note, having launched a successful and first-ever symposium on mortgage investing for the public. He also ensured that CMBA-BC’s advertising campaign promoting the use of mortgage brokers is as strong as ever by securing sponsorship of CBC and Global TV programming. Now president of the national CMBA organization, Soni will turn his focus to developing commercial mortgage and private lending courses for brokers.

HOT LIST 2 7 2017

MARTIN REID

MERYLL DREYER

CEO

COO

HOME CAPITAL GROUP

VERICO DREYER GROUP MORTGAGES

When Martin Reid assumed the role of CEO at Home Capital, Home Trust and CFF Bank in 2016, he was dealing with the aftermath of the broker falsification document controversy. Much of the year was spent regaining broker trust and essentially rebuilding the brand, in addition to implementing new tools that helped Home Trust remain a leading player in the alternative space. “The future of this organization is very bright,” Reid says, “and I am excited by the opportunity to bring the company’s outstanding products and services to even more Canadians.”

As the COO of Verico Dreyer Group Mortgages, Meryll Dreyer manages new programs and initiatives for the company. The Dreyer Group started off 2016 by being awarded the Consumer Choice Award for business excellence in the category of Mortgages in Vancouver.

Last year Dreyer also co-founded KARES [Kids at Risk Embracing Success], an organization that works to improve the lives of marginalized youth. It’s the first national program for the industry, and one that encourages professionals across the mortgage industry to participate. There are currently eight programs that address issues such as housing, financial literacy and drug addiction, and KARES also plans to launch a mentorship program.

“If you look at the size of our industry, even if 4,000 people give $10, that’s $40,000 a month,” Dreyer says. “We expect the average to be about $25 – that’s $100,000 per month. It’s incredible, really, when we all work together.”

The trusted partner for residential and commercial title insurance

When the pressure is on, you want to know that you’ve got the backing of a title insurance company that you can count on.

At Stewart Title, our focus is on providing the coverage and underwriting expertise you need to complete even your most complex transactions.

Learn more about our level of support, call (888) 667-5151 or visit stewart.ca.

© 2017 Stewart. All rights reserved.

www.mortgagebrokernews.ca

47

SPECIAL PROMOTIONAL FEATURE

TITLE INSURANCE

Fraud, flaws and follies Closing without title insurance is a major risk.

Here’s what your clients need to know about this important piece of the mortgage puzzle WHEN JOHN* received a notice that the mortgage on his investment property was in default and that the lender would be taking possession of the property, he was flabbergasted. He had owned the property for two years and knew that his mortgage was in good standing. Confused about the notice, he sought counsel. An investigation revealed that the title on John’s property was fraudulently transferred, and a new mortgage in the amount of $165,000 had been registered on the title. Mortgage funds were paid to the fraudulent transferee, who was now nowhere to be found.

Luckily for John, he was protected by an FCT title insurance policy. FCT coordinated and retained a lawyer on his behalf, and ultimately paid out $12,548 in legal fees to remove the mortgage from the title and transfer the title back to him. John retained his investment property while being spared the time, expense and stress of having to defend himself against the fraud.

Not all homeowners are as lucky as John.

Homeowners without title insurance who find themselves in a similar situation must engage their own lawyers and deal with the long and costly battle to regain ownership of their property.

As a mortgage professional, you want to help your clients ensure that their investment is secure and viable for years to come.

48

FCT’s goal is to increase your efficiency and reputation as a trusted advisor, while providing your clients with the best protection available. For more than 25 years, FCT has provided title insurance solutions that support simple and secure mortgage transactions. Your clients may not be equipped to deal with unexpected issues like a clerical mistake with the title registration, a forged document, an incorrect survey or a nonexistent permit that threatens their property ownership – but we are.

So what is title insurance?

Title insurance is a unique form of insurance. Unlike homeowner’s insurance, which insures the structure and its contents, residential title insurance protects the homeowner against actual loss as a result of challenges to the title (i.e. ownership) and other defects relating to the property.

When your client purchases a property, whether a single-family home, condo or cottage, they purchase the title. The registration of the title confirms that they are the rightful owner. Sometimes, however, that ownership might be challenged, or homeowners may be exposed to potential losses associated with title fraud, survey and title issues, or even pre-existing defects. Title insurance protects against all of these risks and much more.

What does title insurance cover?

A typical title insurance policy covers common issues (known and unknown) that may have happened both before and after the purchase. This is sometimes referred to as pre- and post-policy because the day the purchaser takes ownership of their home is generally also the effective date of the policy.

THE BENEFITS OF TITLE INSURANCE FROM FCT More and more homeowners are finding themselves in situations where they have to defend their right of ownership or deal with issues such as fraud and survey defects. Not only are these issues stressful and time-consuming to rectify, but the associated costs can be significant and potentially financially devastating. Comprehensive and cost-effective, title insurance will allow your clients to: Save time and money by reducing the number of costly searches required to meet most lenders’ requirements. With title insurance, you can complete the deal faster and with lower closing costs for your clients.

Close on time, as planned, regardless of known defects. FCT can easily customize coverage that is right for each unique situation.

Feel confident with comprehensive coverage and a no-fault claims process. FCT assumes the risk, responsibility and cost associated with defending the homeowner’s title, and provides quick and easy resolution in the event of an actual loss for a covered risk.

Differentiate your service offering by providing your clients with the best protection and service possible by partnering with FCT, the pioneer of the Canadian title insurance industry.

www.mortgagebrokernews.ca

48-49_FCT-SUBBED.indd 48

26/01/2017 9:35:57 AM

The most common issues covered under a typical homeowner’s title policy include, but are not limited to, the following**: • Real estate fraud and forgery • Survey issues • Encroachments • Zoning bylaw challenges • Building permit issues • Property tax arrears • Known and unknown defects Title insurance also provides the duty to defend as part of its coverage. This means that if there is ever a challenge to a matter covered under the policy, the insurer is responsible for paying all legal costs to defend the homeowner and their title. The cost of that defence does not reduce the amount of insurance under the policy.

How much does a policy cost?

For a low one-time premium, homeowners can purchase the protection they need for as long as they own their home, and the policy can even be transferred to their heirs in some cases. The actual cost of a policy is based on the value of the property and varies by prov-

ince. You can get a quote in no time at fct.ca/ quote or by calling us at 866-804-3122.

Does every homeowner need title insurance?

Absolutely! Homeowner claims are becoming more and more common, and nothing covers like title insurance.

In Ontario, both the owner and the lender are title-insured in approximately 90% of all residential real estate purchase transactions.

Most real estate professionals value the role of title insurance within a mortgage transaction.

The lender policy protects the validity, enforceability and priority of the lender’s mortgage on the title. The homeowner policy protects the homeowner against losses associated with title fraud, survey and title issues/defects, as well as challenges against their ownership.

In Ontario, licensed legal professionals must discuss all options to protect a homeowner’s interest in title during a purchase transaction. However, in many other provinces, it is less likely that the homeowner will obtain a title insurance policy – often there is only a lender’s title insurance policy in place.

Unfortunately, despite ongoing education efforts, many still question the value of title insurance for homeowners. As a result, homeowners are being exposed to unnecessary and potentially devastating risk.

As a broker, you can help ensure that each and every one of your clients understands the benefits of having a homeowner title insurance policy from FCT, and that they get the comprehensive coverage needed to protect their biggest asset. In doing so, you’ll create a satisfied, loyal client base that is happy to refer your services.

For more information, please visit www.fct.ca.

Founded in 1991, the FCT group of companies is based in Oakville, Ontario, and has more than 800 employees across the country.

The group provides industry-leading title insurance, default solutions and other real-estate-related products and services to approximately 1,250 lenders, 43,000 legal professionals and 5,000 recovery professionals, as well as real estate agents, mortgage brokers and builders nationwide. FCT has been recognized by Achievers as one of the 50 Most Engaged Workplaces in Canada since 2012 and was named one of the Top 50 Workplaces in Canada by Great Place to Work in 2015 and 2016. For more information on FCT, please visit www.fct.ca. * Name has been changed to protect the individual’s privacy **For specific coverage details, please refer to the actual policy

www.mortgagebrokernews.ca

48-49_FCT-SUBBED.indd 49

49

26/01/2017 9:36:08 AM

PEOPLE

BROKER INSIGHT

The value of good oldfashioned hard work Mortgage broker Luisa Hough talks to CMP about regulation changes, the importance of a solid team and what differentiates a great broker from the rest

CMP: How did you get into the mortgage industry?

Luisa Hough: I was a conveyancer before I became a mortgage broker. I spent years working with Realtors, mortgage brokers, banks and clients, and I watched how they were treated throughout the mortgage transaction. I thought that I could do a better job and take care of their financial needs and goals.

I had a personal desire to help people achieve financial success, and I believed the mortgage process was the way I could do that and have the most impact.

CMP: How would you describe your time in the industry?

LH: I became a broker in late 2004, so I’ve been in the industry now for just over 12 years, and I’ve seen lots of changes during that time. I’ve seen the markets go up and down and mortgage products come and go. During that time, there have been some challenges, but one thing that never changes is my love and passion for the industry and making a positive impact in my clients’ lives.

CMP: Where do you operate, and how did the market perform last year?

LH: I was born and raised in Vancouver, and the majority of my business dealings are in the Greater Vancouver area – some in Burnaby and a lot in Surrey/White Rock/

50

Langley. Although the market slowed down in the second half of the year, 2016 was my best year ever.

CMP: What are your thoughts on the recent regulation changes? Are they having any impact on your business?

LH: It’s difficult to say whether the changes have impacted my business. As of right now, I’m going to say no. But I do believe 2017 will determine if and how much the changes will affect my business.

As the rates have changed, I’ve gone into my database and my client and referral base and said, “Look, now’s the time to make a change to take advantage and lock you into a longer rate.” With the rates increasing over the last month, my focus has shifted more toward ensuring that clients are educated and understand how

the changes can and will affect them. Now more than ever, I believe it’s important for people to work with experienced and knowledgeable mortgage professionals.

Change is inevitable in our business, and it’s all about how we accept the change.

That’s something I’ve learned over the last 10 years. We all have to work harder and smarter to get things done, but I think there is so much business and opportunity in the industry. It’s all about how we approach it.

CMP: What’s the secret behind your success?

LH: I say this to everyone in the industry who will listen: I’ve learned that you have to be consistent, persistent and you have to expect to work hard. It’s not rocket science, but it is something that I really value.

HOUGH’S TOP TIPS FOR OTHER BROKERS Make sure you have a good mentor and a brokerage team that has your back.

Give value to your clients. Educate them and be there for them throughout the life of the mortgage.

They need to know that you’re there for them and looking out for their needs, not your own.

Be consistent. I spend a lot of time on my database, calling people just to see how things are and sending notes, birthday cards, lotto tickets and coffee cards throughout the year.

Have to access to an underwriting system, or at least hire your own underwriter or personal assistant. Again, that allows you to get out there and have face-to-face time with your clients.

www.mortgagebrokernews.ca

50-51_Broker Insight-SUBBED.indd 50

26/01/2017 9:37:12 AM

LUISA HOUGH: CAREER HIGHLIGHTS

2005 Co-founds Exclusive Mortgage Professionals

2010 Is named one of the Top 50 Brokers in Canada by volume by CMP

2011 Finalist for Broker of the Year at the Canadian Mortgage Awards

2013 Forms Xeva Mortgage, is named a Top Mortgage Professional by Vancouver Magazine and receives the First National Financial Outstanding Achievement Award

“I’ve seen the markets go up and down and mortgage products come and go ... but one thing that never changes is my love and passion for the industry” I believe my best-kept secret is my team.

They allow me to go out there and spend the time face-to-face with my clients and referral sources, which helps me to establish and maintain relationships. That’s a full-time job, especially when you’re in this fast-paced business. I do spend a lot of time on my business versus in my business.

CMP: What do you get up to in your spare time?

LH: After my kids, my husband and my work, I like to read and I love to travel. I get lost in my books, but I don’t get to do it as often as I like. I got to travel a few times this year, which was really good, and I’m going to Europe next summer.

2014 Wins Readers’ Choice Award for Best Mortgage Broker from The Now

2015 Xeva Mortgage wins Best Newcomer Brokerage at the CMAs

2016 Finalist for Mortgage Broker of the Year at the CMAs

www.mortgagebrokernews.ca

50-51_Broker Insight-SUBBED.indd 51

51

26/01/2017 10:46:59 AM

FEATURES

OFFICE POLITICS

Office politics: How to know if the hill is worth dying on Office politics can seem like war. If that’s what it feels like to you today, then the question you need to answer is whether this particular hill is worth dying on, writes Cindy Tonkin IT’S JUST A HILL. But it’s your hill.

It’s a strategic hill.

You don’t know if you want to be a hero.

And if you really need to be a hero to keep this hill, you could be dead already.

Let’s get concrete for a moment. This ‘hill’ could be that your boss caves every time a client criticizes your area, and you have to pick up the pieces, backtrack and rework things.

It could be that you need to take time off outside normal days, and your boss doesn’t believe in that kind of stuff.

Maybe you’re convinced that following current strategy will shut off the company’s main source of income.

It’s not about the hill, as such. It’s whether you will be the hero who takes the hill and goes out in a blaze of glory, or whether you will live to fight another day.

Here are five questions to help you decide.

Question 1: Who is your buddy?

In every good war movie, the hero has buddies. From The Magnificent Seven and The Dirty Dozen to Platoon and Saving Private Ryan, it’s the people supporting you to take the hill who make the difference. So

52

www.mortgagebrokernews.ca

52-53_BIZSTRAT OfficePolitics-SUBBED.indd 52

26/01/2017 9:40:39 AM

the first question to ask is: Who is your buddy? Who is on your side?

If you are the only soldier standing up to the corporate psychopath, the only one trying to fix the supply chain problem or to reconfigure the roster, then you need some buddies before you start your assault.

Question 2: Who will see?

The second question is: Who will see you?

And who should see you?

If you are behind enemy lines and are about to blow up the bridge before dawn, then it’s important that no one sees you.

On the other hand, if this assault is an action designed to flush out the friendly locals, make sure it’s visible enough that those who understand what your action means can find you.

In real-world terms: If you want to be seen, consider some well placed, strategically crafted questions at a work-in-progress meeting as a first salvo.

If you don’t, then ask the same question one-on-one, starting with the lowest-ranking person with power. Ideally you will gain an ally, and you won’t be blamed if they ask the question again themselves.

Question 3: What’s the escape route?

The third question is: What’s your escape route? Don’t blow up the bridge if you have no way of crossing it yourself – or at least blow it up from the side you want to end up on.

In corporate terms, this means you need to put your feelers out into the market.

Update your LinkedIn profile. But first turn off those notifications that tell your boss you’re updating!

And talk to headhunters. Often. Just in case. Don’t wait to be found. Have lunch with your old boss and colleagues. Renew your network – just in case you need more allies, a safe house or an escape route.

As a sidebar, if your boss is part of the problem, consider giving his or her name to the headhunter!

Question 4: What does reconnaissance tell you?

Before soldiers blow up any bridge, they go on a reconnaissance mission. ‘Reconnai­ ssance’ is French for recognition. It literally means ‘re-know.’

This isn’t just about your LinkedIn profile.

It may be your family who will get you through. Or your loyalty. Maybe it’s your ability to find the positive, transform people’s ideas or just that you are resilient. Find your strengths and play to them. And leave your

Maybe your strength is your ability to find the positive, transform people’s ideas or just that you are resilient. Find your strengths and play to them. And leave your weaknesses alone.

They won’t help you here So, if you have a political issue that you want to broach, a hill you have to take, go check out the territory. Re-know current policy. Re-know who supports it. Re-know the players in your industry.

• I s what you want already happening somewhere in your organization?

• Is it happening somewhere in your industry?

• How does what you want align with industry best practice?

• How do your systems and procedures support it (or not)?

Check out how big this hill really is. If you don’t know anyone to ask in your industry, then that’s a weakness you need to patch up pretty quickly.

Question 5: What are your special skills?

Every soldier has a special skill. Can you whistle, are you a ventriloquist, or do you have a friend in intelligence? Do you have a good heart, an eye for a bargain or a lot of great connections?

Ask yourself what makes you different – not just in terms of solving this political problem, but also in terms of your value to the organization. How can you use this special skill as leverage?

weaknesses alone. They won’t help you here.

There are also some things not to take into account in your assault. When considering whether or not to take this hill, these things should not come into the equation: • • • • •

I can’t afford to be a hero.

It’s not good for the team.

HR should look after me.

This shouldn’t happen.

Why me?

Every time you weigh the pros and cons of taking that political hill, assemble your buddies, make sure you’re seen (or not) by the right people, get your escape route clear, do some reconnaissance and work to your strengths. In the end, hills don’t matter.

Integrity, courage and connections within your platoon matter. Get to it, soldier!

Note: I have never been to war. All I know about war I have learned from my slim knowledge of war movies. Please take this metaphor in the way it is intended: as a tribute to soldiers who have worked hard and sacrificed their lives and livelihoods so that others may live better lives.

Cindy Tonkin is a corporate consultant who can help your team be more politically astute.

Find out more at www.cindytonkin.com.

www.mortgagebrokernews.ca

52-53_BIZSTRAT OfficePolitics-SUBBED.indd 53

53

26/01/2017 9:40:43 AM

ABLE CMP ROUNDTEADS BROKER H DEBATE IEW YEAR IN REV RN LEA LOOK BACK TO OKE RNEW S.CA MOR TGA GEBR 5 ISSU E 9.1 | $6.9

ART OF ZEN AND THE KERING MORTGAGE BRO

YOUR 2014 ALT. LENDING GUIDE

MORTG AGEBR OKERN EWS.CA ISSUE 8.12 | $6.95

So how do you stack up agains t the average broker? Read survey result the s

YOUR BROK ER

LIFESTYLE

REVEALED FUTURE FORE BLEAK FOR CAST BROKERS?

GETTING YOUR NAME OUT ... AND PROTECTIN

G IT

stry morrow's indu ers shaping to Today's lead

S ’ A D A LE N C I A H E C V WITH D ONLINE 28/01/2014

3:14:12 PM

ndd 2

_OFC_spine.i

000_CMP9.1

N R A T E N I N R T AWARDED P TY! PAR MULTIMMUNI CO R AND E K O BR E H T R FO

Over 14,000 Print Subscribers: Reach the mortgage industry with thought leadership Over ,000 Monthly Online Visitors: Grow your business with an engaged audience Daily Newsletters: Ensure constant brand recognition with direct inbox access to brokers

CONTACT:

Trevor Biggs, Associate Publisher KMI 416 644 8740 x 236 trevor.biggs@kmimedia.ca

CMCA AUDITED

MBN_Sales_FP_v1.indd 65 54-55_Career Path-SUBBED.indd 54

26/01/2017 4:29:10 9:42:18AM AM 25/04/2014

0 AM

PEOPLE

CAREER PATH

MAKING A GOOD CASE Greg Vorwaller has always relied on his analytical mind – and his standout career is proof of his ability to craft a compelling case

1982 GETS

DISCOVERED

Vorwaller’s first job, working with high-net-worth trust clients at Chicago’s Northern Trust Company, led to his ‘discovery’ by EB Smith Jr., a member of the firm’s founding family, who made Vorwaller part of his team “He had a sense that I had strong analytical abilities; he said I was too smart to be a lawyer [my previous career plan]. He took a bet on me. I learned at an early age about respect and self-determination”

1990

JOINS FIRST CHICAGO Recruited by First Chicago, Vorwaller was tasked with building a real estate capital markets advisory during a recession. He went on to oversee more than $1 billion in sales. One standout transaction was the $5.5 million sale of an office building the bank had given up on selling “I take pride in that – it took about six months to make the sale. We left no stone unturned to find that buyer”

1993

GETS RECRUITED BY CBRE In the midst of a recovering real estate market, Vorwaller was approached

by CBRE to take the position of senior vice-president and regional manager of investment properties for the Midwest “We were known as the go-to people in the Midwest for selling class A and B office buildings – we developed that distinction”

1998

MOVES ON UP Within five years of joining CBRE, Vorwaller was promoted first to president of investment properties and then to COO of capital markets. In that job, he was able to grow gross investment sales revenue from $125 million to more than $1 billion, moving CBRE to the number-one position in global investment sales. He also met another important mentor, Ray Wirta “He’s one of the brightest analytical thinkers I’ve had the opportunity to work with, and he does what he says he’s going to do”

2014

RECOGNIZES WHAT MOTIVATES HIM As a managing director of Trekker Property, Vorwaller oversaw a boutique investment company – and more importantly, had time to stop and think

“Basically, I sat back and reflected on what drives me, and I realized that it wasn’t to be good or big – it was the sense of accomplishment that comes from adding value, from taking a company from good to great”

2011

NEGOTIATES A RECESSION Brought onboard to Cushman & Wakefield as global head of capital markets to return the firm to a position of industry prominence, Vorwaller turned his attention to driving improvements in culture, talent, leadership and focus.

Despite the 2011-2012 European debt crisis, Vorwaller returned the firm to double-digit margins in 2013; under his stewardship, Cushman & Wakefield moved from sixth by market share to third “It was a very scary time. It was a learning experience with some pain and frustration, but I was enjoying myself”

2015

MOVES OVER TO TREZ CAPITAL In mid-2015, Vorwaller took on the role of president of Trez Capital, one of Canada’s largest private commercial lenders. He has great plans to take the company to new heights this year “It takes about 18 months to develop the right cadence with a new situation – 2016 was a foundation-setting year; 2017 will be the breakout year”

www.mortgagebrokernews.ca

54-55_Career Path-SUBBED.indd 55

55

26/01/2017 9:42:25 AM

PEOPLE

OTHER LIFE

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

PIPE UP For broker Ron Hall, playing the bagpipes is about more than just the music RON HALL’S childhood was accompanied by the skirl of bagpipes from the daily practice of his world-class competition-level bagpiper father. As a child, Ontario-based Hall even took lessons himself, but he mainly encountered the pipes during the summer weekends the family spent at highland games, which he remembers as “a safe environment where a young kid could run around like an idiot.”

Hall himself decided to learn to play in his 30s; two years of practice later, he played in public for the first time, at a Remembrance Day parade in 2013. Since then, the mortgage agent for Dominion Lending Centres Altra has played the bagpipes in many parades, in competitions and at the highland games events that crowd the summer weekends in Ontario.

These days, Hall says bagpiping takes the place that, for him, used to be occupied by hockey. “It’s recreational and competitive, and I enjoy the camaraderie,” he says. “Apart from having skates on your feet, piping is the exact same thing: a group of people getting together with the goal of being good in a competitive setting – and afterwards, we drink.”

7,000

Approximate size of the largest audience Hall has ever performed for

10

Parades in which Hall has played over the last three years

100

Estimated number of lessons Hall has taken

56 www.mortgagebrokernews.ca

56-OBC_Other Life-SUBBED.indd 56

26/01/2017 9:43:24 AM

56-OBC_Other Life-SUBBED.indd 57

26/01/2017 9:43:32 AM

r

Making Mortgaging Great Again For the past 30 years, we’ve navigated a changing economic environment, mortgage industry and the needs of homeowners. Together, we continue to help thousands of Canadians build a bright future.

See how we’re Making Mortgaging Great Again with new prime products, expanded alternative solutions and improved service.

Talk to your BDM today to learn how we are Making Mortgaging Great Again or visit go.hometrust.ca/MMGA

58083_CMP_EN_Print_8.25 x 10.75_2017.indd 1 56-OBC_Other Life-SUBBED.indd 58

2017-01-18 4:26 26/01/2017 9:43:37 AMPM