CMP 13.10

MORTGAGEBROKERNEWS.CA ISSUE 13.10 | $12.95

2018

BROKERAGES Discover what Canada’s best brokerages are doing to set themselves apart from the pack

TECH PROGRESS MARCHES ON

Are brokers in danger of being replaced by apps and call centres?

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STATE OF THE UNION

What you need to know before sending commercial deals to credit unions

NOT A DEAL-BREAKER

How to find solutions for clients who have bruised credit

4/10/2018 6:58:35 AM

WHEN A MORTGAGE DEAL IS SUBMITTED FOR REVIEW, THE UNDERWRITING PRACTICES EMPLOYED MUST REMAIN CONSISTENT. As a mortgage broker, you want the right answers from your underwriter, every time. MCAP delivers the information you need, straight. That’s why brokers across Canada rely on us.

Contact your MCAP Business Development Manager or go to www.mcap.com/brokers today.

MCAP Service Corporation | Ontario Mortgage Brokerage #10515 | Ontario Mortgage Administrator #11692

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ISSUE 13.10

CONTENTS

2018

BROKERAGES

22

SPECIAL REPORT

Discover the strategies Canada’s leading brokerages used to fund millions of dollars’ worth of mortgages amid a challenging lending environment

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www.mortgagebrokernews.ca

1

License # 10172

4/10/2018 7:02:48 AM

ISSUE 13.10

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/MortgageProfessionalCA

50 42

UPFRONT 04 Editorial

Autumn brings a cooler market to Vancouver

06 Statistics

How the B-20 stress test has impacted consumers’ buying plans

08 Head to head

FEATURES

44 FEATURES

ALL ABOUT THE COMMUNITY Credit unions can be a great option for commercial funding – but there are a few nuances brokers should keep in mind when packaging deals

PEOPLE

INDUSTRY ICON

CHANGING THE CONVERSATION A less-than-stellar credit history doesn’t have to be the end of the road for prospective borrowers

Could brokers eventually be replaced by call centres?

12 Technology update 14 Broker update

When brokers are ready to retire, should they consider selling their books?

46

16 Opinion

Tighter mortgage rules have been good for brokers who are plugged into the alternative and private channels

FEATURES

SETTING THE RECORD STRAIGHT

Finastra’s Tim Rye discusses the latest developments at the mortgage tech provider

FEATURES 44 Good to grow

CMP chats with Merix Financial’s Boris Bozic to get the scoop on the lender’s new offerings

PEOPLE 55 Career path

Lorne Andrews has never shied away from taking risks

FEATURES

48

5 BENEFITS OF SELLING REVERSE MORTGAGES How HomeEquity bank’s reverse mortgage can help boost business

2

10 News analysis

Financial institutions are doubling down on fintech investment

DLC president Gary Mauris tells CMP how he plans to maintain the network’s dominance going forward

18

Brokers continue to be wary of syndicated mortgages

56 Other life

Broker and baseball coach Peter Kampe hits it out of the park

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

www.mortgagebrokernews.ca

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thecentumnetwork@centum.ca | thecentumnetwork.ca ®/™ Trademarks owned by Centum Financial Group Inc. © 2018 Centum Financial Group Inc. The intent of this communication is for informational purposes only, and is not intended to be a solicitation to anyone under contract with another mortgage brokerage operation.

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UPFRONT

EDITORIAL

Moderation comes to Vancouver

I

f you’re a Vancouver-based broker, now might be a good time to encourage your clients to reignite their home-buying plans. Numbers released by the Real Estate Board of Greater Vancouver in August showed that detached home sales decreased 37.1% compared to the same month in 2017 – which means buyers are firmly in the driver’s seat. One broker told CMP that only a few years ago, putting in an offer with subjects was a non-starter. However, he described this summer’s market as rejuvenated, as buyers who had been biding their time on the sidelines are finally plunging in.

But how long will the good times roll? Well, buyer activity in a rising-rate environment with stringent mortgage qualification rules will be nothing like the frenzy of years past, signifying a market in the midst of moderation. It’s taken some time, but sellers have adjusted to new market realities, and they’re lowering their asking prices, much to the delight of buyers.

Buyer activity in a rising-rate environment with strict mortgage qualification rules will be nothing like the frenzy of years past This scaling back will also relieve pressure in Vancouver’s suburbs, where homebuyers priced out of the city’s single-family detached market have gone in search of affordability. As more buyers find themselves able to purchase houses in the city’s core, it could lead to an uptick in migration from the suburbs – many of the families who had been pushed to the fringes of the Lower Mainland will undoubtedly want to move closer to work. That should also soften prices in surrounding markets.

These latest sales stats shouldn’t be misconstrued, though. Prices will not plummet; they will continue to increase incrementally. And while the federal government appears satisfied with the cooling of Vancouver’s market, the provincial government, which has not been shy about intervening, is the wild card. Should it decide that more intervention is necessary to help solve the affordability crisis, expect prices to keep on softening.

The team at Canadian Mortgage Professional

www.mortgagebrokernews.ca ISSUE 13.10 EDITORIAL Writers Neil Sharma Joe Rosengarten Libby MacDonald Ephraim Vecina Heather Turner Hannah Go Copy Editor Clare Alexander

CONTRIBUTORS Bryan Jaskolka

ART & PRODUCTION Designers Pia Marie Tandog Joenel Salvador Production Manager Alicia Chin Advertising Coordinator Ella Dayandante

SALES & MARKETING Associate Publisher Trevor Biggs Vice President, 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

neil.sharma@keymedia.com

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, Bengaluru

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

MORTGAGE PROFESSIONAL AMERICA chris.anderson@keymedia.com T +1 720 316 7378

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

4/10/2018 6:56:43 AM

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UPFRONT

STATISTICS

Stressed right out CALGARY

As stress tests have limited their options, consumers have been forced to update their home-buying plans SINCE THE initial stress test on insured mortgages was introduced in late 2016, consumers have been gradually lowering their expectations. Mortgage Professionals Canada estimates that the increasingly stringent regulations have kept up to 100,000 Canadians from buying their preferred home.

Those affected by the stress test have an average gap of $29,000 between what they want to purchase and the size of the mort-

gage they can qualify for.

In response, potential purchasers have been setting their sights on smaller properties or delaying their purchases to save more for a down payment. Nearly a third of consumers surveyed by MPC said they believe the stress test could force them to buy in a different neighbourhood, while almost 40% said the stress test is driving more borrowers to alternative lenders.

77% 89%

VANCOUVER

8% 20%

18%

Buyers who could afford their preferred house at the posted rate but would fail a stress test

35,309

Number of homes across Canada that are now beyond the reach of median-income buyers

$28,750

Average increase in down payment needed by buyers disqualified by the stress test

1.2%

Decrease in homeownership rate in Canada between 2011 and 2016

Report on the Housing and Mortgage Market in Canada, Mortgage Professionals Canada, July 2018

MAKING THINGS DIFFICULT

LOCATION, LOCATION, LOCATION

Nearly a third of consumers surveyed by MPC agreed that the stress test will make it harder for them to buy a home.

The stress test is also affecting where prospective borrowers might end up living.

More than 70% of respondents told MPC it would have at least a moderate impact on their ability to purchase a home in their preferred neighbourhood.

HAS THE B-20 STRESS TEST MADE IT MORE DIFFICULT TO BUY A HOME? 29%

Agree

HOW WILL THE STRESS TEST AFFECT YOUR ABILITY TO BUY IN YOUR PREFERRED NEIGHBOURHOOD?

39% 32%

Neutral

32%

39%

29%

Moderate impact

Negligible impact

Disagree Significant negative impact Source: Report on the Housing and Mortgage Market in Canada, Mortgage Professionals Canada, July 2018

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Source: Report on the Housing and Mortgage Market in Canada, Mortgage Professionals Canada, July 2018

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FEWER AFFORDABLE OPTIONS Across the country’s major population centres, the proportion of affordable houses is shrinking. That’s partly due to runaway price growth, but it’s also attributable to tighter regulations that have reduced the size of mortgages consumers can qualify for. At last year’s posted mortgage rate of 2.79%, prospective homeowners earning the median income in Vancouver would have their pick of 20% of the city’s listed properties. Today, at the stresstested rate of 5.34%, that same homeowner could only afford 8% of the homes on the market.

KEY Percentage of houses on the market that could be purchased at the median income today Percentage of houses on the market that could be purchased at the median income a year ago

OTTAWA

90% 95% MONTREAL

TORONTO

78% 87%

20% 43%

Source: Ratehub, September 2018

LOOKING TO THE FUTURE

FINDING AN ALTERNATIVE

Pessimism about the impact of the stress test was most marked among those who are not homeowners yet but expect to buy in the next five years. More than half of this group say they expect to face a significant negative impact as a result of the stress test.

HOW WILL THE STRESS TEST AFFECT YOUR ABILITY TO PURCHASE A HOME IN THE NEXT FIVE YEARS?

Almost two in five respondents agree that the stress test is forcing a greater proportion of potential buyers into the alternative lending sphere.

HAS THE MORTGAGE STRESS TEST PUSHED MORE BUYERS TOWARD ALTERNATIVE LENDERS? 39% 54% 7%

39% Significant negative impact

54%

Moderate impact

7%

Negligible impact

Source: Report on the Housing and Mortgage Market in Canada, Mortgage Professionals Canada, July 2018

Source: Report on the Housing and Mortgage Market in Canada, Mortgage Professionals Canada, July 2018

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UPFRONT

HEAD TO HEAD

Should brokers be selling syndicated mortgages?

Syndicated mortgages are notorious for their regulatory gaps.

Is this another that needs addressing?

Robert Mogensen

Mortgage consultant The Mortgage Advantage Financial Services “With high rates of return and potential fees, the concept of a syndicated mortgage can be very compelling to unsophisticated investors. However, the investors in a syndicated mortgage might not have the financial experience to fully vet an opportunity as thoroughly as they should.

Relying on a broker to assess the risk is fraught with problems in that a clear conflict exists between the broker and the investor. Because the broker only receives his or her fees should the deal actually proceed, the broker might lead the investor to believe the mortgage is more secure than is actually the case.”

Clinton Wilkins

Senior mortgage advisor Centum Home Lenders “While potentially capable, mortgage brokers should not be selling syndicated mortgages. One of the tenets of a mortgage broker is that he or she has expert knowledge of the products being sold. Syndicated mortgages are very complex and require deep knowledge of the investment industry, which most brokers don’t have.

Protecting the client’s best interests is foremost for a good mortgage broker.

To do this properly while selling syndicated mortgages would require sophisticated knowledge of the investment industry. Ultimately, a broker selling syndicated mortgages is not appropriate in most cases.”

Calum Ross

Wealth advisor, principal broker The Mortgage Management Group “I would not be capable of selling syndicated mortgages. First, I only have seven years of post-secondary education – including a bachelor of commerce and an MBA in finance, as well as investment courses, including the Canadian Securities Course – and don’t believe I have sufficient education to properly assess the risks associated with such products.

Second, even if I had the knowledge and experience required to properly evaluate the very complex nature of hybrid debt/equity investments with multiple tranches, I don’t ethically believe in selling what are essentially junk bonds, which is what qualified portfolio managers believe these instruments to be.”

RISKY BUSINESS Syndicated mortgages – a product in which a group of investors serve as the lenders on a mortgage – have gotten a bad rap thanks to the high-profile Fortress Real Developments scandal. In July, FSCO announced it was placing new requirements on brokers who deal with non-qualified syndicated mortgages, and the CSA has tabled a proposal to put these products in the hands of investment dealers rather than brokers. Many in the industry agree that something needs to be done to, at a minimum, weed out the bad actors in the syndicated mortgage space. “They take advantage of consumer ignorance, combined with a lack of transparency and total disclosure, to get people into syndicated mortgages ... where [they] don’t understand what they’re in,” real estate lawyer Bob Aaron told MortgageBrokerNews.ca.

8

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the proof is in the numbers.

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

All product and company names are trademarks™ or registered® trademarks of their respective holders.

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4/10/2018 7:06:10 AM

UPFRONT

NEWS ANALYSIS

Is a tech shakeup imminent?

Technology is disrupting myriad industries, and banks are increasingly searching for direct consumer access. Neil Sharma explains how these trends could reshape the mortgage industry over the next decade

CUTTING OUT intermediaries is common practice in the digital era, but are mortgage brokers vulnerable to becoming casualties of this trend? The broker channel has emerged in the Canadian market as an indomitable force on behalf of borrowers, but the pendulum could certainly swing back as banks continue to leverage technology to circumvent brokers.

Mortgage apps are one platform banks are using to facilitate direct consumer access, but Ron Butler of Butler Mortgage sees another

would – it’s greater quality control because it’s all under one roof and you record the conversations. It’s cheaper to do, too.

“At the end of the day,” Butler adds, “there’s a reason why, if you want to talk to someone about your credit card, you don’t go to a branch, you use a call centre. It’s more convenient, and as time goes on, people will demand convenience.”

Technology has been disrupting innumerable industries, and Butler believes a shakeup of traditional brokering is nigh.

“The pure mortgage agent today – the plain vanilla mortgage agent – there will be tremendously fewer [in 10 years]” Ron Butler, Butler Mortgage disruptive scheme on the horizon.

“Banks have large commission sales forces that work independently of mortgage brokers,” Butler says. “In the case of RBC, CIBC and TD, they’re wildly successful, powerful entities in this marketplace. Would banks prefer to turn that sales force into a call centre? Of course they

10

“People will start to worry in three years or five years, we’ll see the numbers fall in an alarming way, and in 10 years there will be incredibly less of us,” he says. “That doesn’t mean some people won’t be working the call centres, because you have to have knowledge to talk about mortgages, but the pure mortgage agent today – the plain

vanilla mortgage agent – there will be tremendously fewer.”

However, it’s far from likely that brokers are facing complete extinction. While there could be fewer brokers in 10 years, those who survive the metamorphosis will have adapted to specialize in niches, like rental properties and foreign languages, especially as Canada’s immigration quota continues to increase. Butler believes that if Justin Trudeau should win another term next year, this could happen sooner than later.

“The mortgage industry will turn into people who work in specific languages and specialists like a subprime mortgage specialist or a rental expert, because those are specialized areas,” he predicts. “You need to be very knowledgeable to navigate those waters. But we’re talking a narrow scope – people who want to be comfortable in a language group, people who have credit impairment or some kind of income problem and don’t qualify, or people who want to buy

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THE BROKER CHANNEL IS STILL GROWING New technology might eventually displace some brokers – but licence renewal numbers from FSCO suggest that this hasn’t happened yet. Between 2016 and 2018, agent and broker licence renewals increased by an average of nearly 8%.

Agents Brokers/principal brokers 10k 9,960 9,190

8k 6k 4k 2k

2,599

2,456

0 2016

2018

LICENCE RENEWALS Source: FSCO

rental properties. That whole grouping represents only about 18% of mortgages in Canada, now that the mortgage rules have changed.”

Michael Maguire, a broker with Mortgage Wise Financial, believes clients will continue to

stand things,” he says. “That’s the way you should be dealing with your finances. You can’t just do it online and not get proper advice. How can a call centre understand your market and your own personal affairs unless you take the time

“[Clients] don’t understand what’s good and bad about a mortgage … we help borrowers figure out which terms are best” Michael Maguire, Mortgage Wise Financial appreciate the in-person experience of meeting a mortgage broker because the qualification process can be extremely convoluted for somebody who doesn’t understand mortgage brass tacks.

“This is the biggest investment of their life, so they’ll take the time to meet you and under-

to sit down and get to know somebody?”

Mortgage products have evolved to the point that brokers are more indispensable than ever before. Moreover, rate sites can engender false expectations, and borrowers often require explanations about why those low rates don’t apply to them.

“Now we have insurable mortgages versus conventional mortgages, qualifying rates, and it’s become a lot more complicated,” Maguire says. “Clients can see a rate online, but they don’t qualify for that rate for numerous reasons, and they always get pissed off about it. They also don’t understand what’s good and bad about a mortgage. There are mortgages with high penalties; there are mortgages with restrictions – we help borrowers figure out which terms are best for them.”

In addition, brokers can offer a level of care call centres can’t. “I call my clients every year and say, ‘These are the rates, and if you renewed today, this is what your payment would be,’ and I ask if they can increase their payment,” says Dianne Chafe of Oriana Financial. “If I do that every year, when their mortgage comes up for renewal in five years, they’ll already be making the payment based on whatever the rates are, so there won’t be any payment shock.”

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UPFRONT

TECHNOLOGY UPDATE NEWS BRIEFS Nobul portal revamps user interface and adds blockchain

Real estate tech platform Nobul Corporation has announced a thorough redesign of its online marketplace, focusing on user interface and search improvements. Users will now have the option to specify which agent services they require and have the ability to screen and meet real estate professionals they’re interested in working with. Another important part of the revamp is the integration of blockchain technology, which Nobul said will “bring a new level of transparency and auditability to a traditionally opaque and disputed business.”

National Bank inks alliance with fintech venture

National Bank of Canada has announced the formation of a partnership with online lender Thinking Capital.

According to the bank, the partnership will help increase the reach of its small business loan service. The agreement gives National Bank access to Thinking Capital’s systems and platforms, thus allowing it to process loan applications and approvals entirely in-house. “Rather than reinventing the wheel, we have a clear strategy to provide innovative solutions to the marketplace by partnering with fintech providers,” said Mario Desautels, National Bank’s SVP of business solutions.

Property developers still wary of emerging technologies

In a recent survey of more than 400 real estate executives worldwide, the Altus Group found that new technologies are still being met with uncertainty by property developers. Many observers have heralded process automation as

a significant cost-saving advancement, but 56% of the property developers surveyed anticipate little to no impact from this technology, and only 22% said they expect it to cause major disruptive change. Meanwhile, 45% of developers expect little to no impact to their industry by augmented or virtual reality, while 65% feel the same way about 3D printing.

Mogo attributes impressive growth to millennials

Mogo Finance Technology recently announced that it has surpassed 700,000 users on its platform – and the company credits its success to adoption among millennials.

“Consumers, driven by millennials, are looking for digital solutions that are not only engaging, but also make it easier for them to get in control of their financial health,” said Mogo founder and CEO David Feller. “Unlike many singleproduct apps and solutions, the Mogo platform was built to offer our members convenient access to multiple financial products within one app.”

Fintech summit coming to Toronto in December

On December 5, fintech companies, alternative finance platforms and institutional investors will convene at the AltFi FinTech Summit in Toronto’s MaRS Discovery District. This is the first time the summit will be held in Canada; over the past few years, Toronto’s status as a prime destination for financial and intellectual capital has placed the city at the centre of the fintech revolution.

“We’re always on the lookout for the next fintech hotspot for our summit series, and Toronto fits the bill,” said AltFi executive director David Stevenson.

“A mixture of exciting local firms and progressive regulatory thinking has the market poised to take off.”

Investment in fintech soars Consumer preferences and evolving regulations are making fintech more enticing for a number of financial institutions

Consumer attitudes and a shifting policy environment have led to a record-breaking amount of fintech investment in the first half of this year, according to KPMG’s Pulse of Fintech report, published in mid-August.

KPMG found that there were more than 50 fintech deals in the first half of 2018 alone – almost as many as the whole of 2017, which currently holds the record as the busiest year for Canadian fintech. The first two quarters of 2018 saw approximately $263 million invested in fintech venture capital, mergers and acquisitions nationwide.

“Evolving customer expectations, recent changes stemming from the 2018 federal budget, as well as expected changes coming via the review of the Federal Financial Sector Framework, including the Bank Act, are clearly spurring increased activity in the Canadian fintech sector,” said John Armstrong, KPMG’s national industry leader for financial services in Canada. “As financial services regulation in Canada continues to evolve, we are bound to see an even greater increase in activity in the space.”

The explosion of fintech investment “indicates buyers are focused on getting in early on new technology,” Armstrong added.

“Canadian fintech hubs are maturing at a rapid pace, and large financial institutions have recognized the need to

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invest in the space to meet the evolving needs of their customers.”

One of the most active areas of fintech investment is artificial intelligence research and development. “A number of banks have acquired companies in the AI space, in part as a talent grab in order to fuel their own innova-

“We are bound to see an even greater increase in activity in the space” tion activities,” Armstrong said. “Investors and financial services companies have both recognized the massive opportunities presented by AI to automate processes such as regulatory compliance and reporting.”

AI and other tech innovations certainly remain high on the radar of Canada’s major financial institutions. In late August, both Scotiabank and BMO announced that they’re looking into incorporating new technology to improve efficiencies, lower costs and accommodate Canadians’ increasing preference for online and mobile transactions.

“We spent over $3.1 billion on technology last year. The number this year will be even higher than that,” said Scotiabank CEO Brian Porter. “[It’s] really important to digitize the bank [and] make it easier for our employees to service our customer base – and with that should come the benefit of lower costs.”

Q&A

Tim Rye Head of Canadian lending technologies FINASTRA

Years in the industry 24+ Fast fact Outside of the office, Rye nurtures his long-running passion for hockey, countryside hiking and ATV/ snowmobile adventures

Optimizing the user experience How has Finastra been doing recently?

Finastra is continuing to make significant strides toward our goal of establishing ourselves as the number-one open platform for financial services. For Canadian mortgage technology, our recent focus has been on getting back to our roots though investment in our core platforms, introducing innovative new features and functionality, and opening up our connectivity infrastructure.

In June, Finastra acquired Malauzai, a provider of mobile and internet banking solutions for community financial institutions, further enabling digital transformation for community banks and credit unions. In August, Finastra closed a deal with Teranet to divest the collateral management solutions business, allowing for further focus and investment to centre on our core Canadian businesses, including mortgage technology.

What challenges have you seen the Canadian mortgage industry struggle with in regard to technology?

Optimizing deal processing though the use of technology has been a common challenge. Consumers increasingly expect a seamless experience, but at the same time, the complexity of completing the transaction has increased. Brokers must maintain and monitor multiple apps or software tools. Re-entering or moving data between them can be a significant operational burden. At the same time, consumers are increasingly concerned about how their personal data is used and stored.

We have been focusing significant development effort on driving efficiencies for lenders and brokers by working to build secure two-way communication within our technology ecosystem. It’s also clear that one solution doesn’t fit all when it comes to brokers or lenders. As a result, we felt it was important to focus on platform configurability, essentially offering à la carte service via secure, open banking connectivity platforms.

How will your offerings change the way your clients go about their business?

The expansion of our connectivity and launch of our open API marketplace will be a game-changer. Mortgage professionals will be able to submit deals and procure pertinent documentation and services using a single platform. More broadly, Finastra’s global product offering centres on helping clients transform and digitize their end-client experience to manage the complexity of the transaction into the seamless consumer experience. The opening up of our connectivity infrastructure now allows mortgage professionals to run their businesses using their choice front-end systems.

What can brokers look forward to from Finastra?

Further expansion of our connectivity and growth of our mortgage marketplace. We are in the throes of creating a one-stop shop that caters to the needs of mortgage professionals to get deals done as efficiently as possible.

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UPFRONT

BROKER UPDATE

Should brokers sell their books?

As more brokers retire, they’re opting to sell their businesses – but that’s not always the best path

because they don’t think there’s anyone out there who can deliver their clients an equal experience to what they delivered. The truth is, yes, there is.”

However, Adlam cautions that selling books isn’t easy. “It comes down to how active the owner is in owning the brokerage,” he says.

“The question is, does the brokerage function and run without that owner? If it does, the business is worth something. If it doesn’t, then it’s not worth pursuing.”

“The question is, does the brokerage function and run without that owner?

If it does, the business is worth something”

As a significant number of brokerage operators near retirement, many have been quietly selling their books. While some owners have succession plans in place – whether that’s bequeathing the business to a family member or hiring and training young blood – many are simply opting to sell.

“The sale of books is becoming more and more common; it happens a lot, but usually quietly,” says Doug Adlam, a mortgage broker and principal of Champion Mortgage. “I think in the next five to 10 years, we are going to see a

NEWS BRIEFS

big shift for those willing to believe that there is value in their database and their book of clients.

We’ve already seen a number of mergers and acquisitions at both the small and larger scales in the Canadian mortgage industry, and I think we’ll continue to see more.”

Adlam notes that a broker’s value is predicated on four pillars: trust, reputation, systems and service. “These four parts are why the client continues to come back to them,” he says. “There is opportunity and value in those books, but a lot of mortgage brokers ... don’t think [there is]

DLC buys majority stake in Founders Advantage Capital

Dominion Lending Centres has taken control of Founders Advantage Capital Corp. with its purchase of a majority stake in the company. “What we’re doing is rolling in our equity of Dominion into Founders Advantage Capital, which makes us the largest shareholder of Founders Advantage Capital,” explained DLC president and co-founder Gary Mauris. “We now own 57% of that publicly traded company, and that includes the Dominion Lending Centres group of companies and the other assets of Founders.”

On the other side of the coin, the risks associated with purchasing a brokerage cannot be understated. Ron Butler of Butler Mortgage points out the challenges a new owner is likely to face in retaining clients.

“When you buy a book in the insurance business, it’s not a transactional one like it is in the mortgage industry,” he says. “If you buy a property & casualty book, which is cars and homes, it renews every year. There’s tiny changeover every year in that business … [so] you’ll still have over 50% of that business in three years.

“Can you do that in the mortgage business?” he continues. “No. What if your agents flee? Or what if your agents are all over 55? The math doesn’t work in the mortgage business, so the brokerages have no value.”

CMBA Atlantic Canada hosts annual conference

In October, the Canadian Mortgage Brokers Association of Atlantic Canada will host its fourth annual conference in Halifax, which aims to educate the region’s brokers on the many changes and opportunities in the industry, in addition to helping them strengthen relationships with lenders, fellow brokers and other industry professionals. “This year, we’re working on relationship-building and exposure with consumers and industry partners, like real estate associations, lawyers and financial advisors,” said CMBA’s Janet McKeough.

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Q&A

Krista Rumberg Mortgage broker MORTGAGE SIMPLE/ AXIOM MORTGAGE SOLUTIONS

Years in the industry 12 Fast fact Rumberg stays active by water-skiing and wake-surfing during the summer, and skiing and sledding in the mountains come winter

A guiding hand for borrowers What sets Axiom Mortgage Solutions apart from other brokerages?

I would say that we have a significant focus on our customers’ goals. We use our experience and knowledge to help our consumers achieve their goals. We focus on the best products, and great rates just happen to come along with them. Our products are definitely our most important edge.

What types of clients do you like to work with?

I’m looking for clients who have stable incomes, consistent credit histories, timely liability payments and those with a strong need to understand what’s really going on. After all, it’s the single largest financial transaction that they’ll likely do in their lives, and it’s vitally important that they know what’s actually happening.

How has your brokerage been helping your clients navigate the current mortgage environment?

I think we’re doing a really good job at educating consumers. With all of the federal rule changes, lending has become extremely confusing to consumers. We feel that with our experience stretching for over a decade now, we can help clients navigate all those regulatory changes and have them work towards their goals, despite the roadblocks. When pre-qualifying them under the stress tests, I would say that I’m more cautious on pre-approvals. I don’t let people go for the really high ratios due to the ever-changing rules. I don’t want them to be disappointed.

Community Trust gives back to broker channel

Around 140 golfers teed up at the fourth annual Community Trust Invitational in mid-September – a sign of the lender’s growing influence. “It has grown every year,” said Community Trust head Chris Humeniuk. “The first year we did this, we were about 45 to 50 golfers, and today we’re 140 golfers.” Humeniuk added that B-20 changes have especially highlighted brokers’ importance. “I think it has more meaning in a year like this to say thank you to our brokers to work with us through this period, but we’ve always valued our broker partners.”

Let’s be clear here: I don’t disagree with the stress tests. It should be difficult for people to qualify, and we should be prudent. Where I think the federal government made a mistake is how they’ve rewarded high-ratio borrowers with discounted interest rates that the conventional borrower can’t access. It doesn’t make any sense to me at all.

What do you think the broker’s role will be as the industry continues to be disrupted by technology?

I think there are some people who might be able to qualify for the so-called cookie-cutter mortgage products without the advice of a broker, but I also think the majority of consumers are not cookie-cutter borrowers at all. They need somebody with comprehensive product knowledge and [who understands] how particular mortgages will affect them in the long term.

Brokers will be here to stay, helping the majority of would-be clients that don’t fit the traditional mold. In such a major transaction, people will want a bit more hand-holding, instead of just inorganically generated computer advice. People buy people. They don’t just buy products.

What advice do you have for brokers just starting out in the industry?

Understand all of the mortgage products in the market like the back of your hand. You can’t sell what you don’t know, so it’s crucial that you keep on reading about the industry, attend lender meetings and conferences, and register for every educational event possible.

Reverse mortgages can be key networking tool

According to Darlene Vilas of MOS MortgageOne Solutions, expertise in reverse mortgages can be valuable for brokers seeking to build relationships with real estate professionals, because many borrowers are hungry for information on the various ways reverse mortgages can be used. “I let Realtors know that their clients can use reverse mortgage financing to purchase a home,” said Vilas, who’s specialized in reverse mortgages for more than a decade. “It’s especially effective when someone is downsizing.”

Brand credibility key to growing business

Growing a client base is a never-ending job – but according to one leading broker, a little branding goes a long way. “Self-branding on social media is important, and as you build yourself and make more money, reinvest it in your marketing,” said Mortgages of Canada founder Samantha Brookes. She also advises using advertising to target specific segments of the borrowing public.

“We target bad credit, refinances and renewals,” Brookes said. “We target people having a difficult time getting mortgages.”

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UPFRONT

OPINION

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

The double whammy The impact of B-20 and changing alternative market dynamics are causing a dramatic shift in the brokerage channel, writes Bryan Jaskolka IT’S BEEN A busy first half of 2018 for those in the mortgage industry. Primarily, we saw foreign buyer taxes in some jurisdictions, as well as the introduction of revised B-20 guidelines on January 1, which added new requirements for borrowers already under stress from heated housing markets and rising interest rates.

The Bank of Canada itself said that this new regulation will disqualify one out of every 10 Canadian borrowers from obtaining a mortgages from a traditional lender. The BoC went on to note that in Canada’s expensive housing markets, one in eight borrowers will likely be excluded.

Clearly, the new qualification rules are having an impact on borrowers – but what about us as mortgage professionals?

Many brokers and agents complain incessantly about the changes, but over the past decade, we have seen many equal or larger changes in an even shorter period of time.

Brokers who know how to adapt are the ones who will thrive.

These changes are actually good for the broker channel, primarily because they improve the medium-term credit quality of the consumer and improve resilience at banks.

In addition, as brokers, we have the tools to work outside of the regulations, whereas our bank competitors do not.

Perhaps the most important issue for brokers these days is not the stress test itself, but the impact it’s having on the alternative market. The banks are rejecting business – since January, the brokerage firms and agents we work with as a private lender have seen a

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dramatic increase in borrowers reaching out who have either been denied by – or received unfavourable terms from – traditional lenders.

This includes prime borrowers on renewals.

Thus, many borrowers have been pushed to the B channel.

However, turnaround times with B lenders today would have been considered unconscionable only a few years ago.

That’s caused many B borrowers to look to the private channel for financing due to timing considerations. Not to mention, there are

the stricter qualification rules.

Canadians still want to – and will – buy homes. People still owe debt that must be refinanced, or that’s cheaper to pay off at 7%, 8% or 9% rather than the 28% they were paying. The higher interest rates and tighter regulations have had an effect on this, but demand for housing and debt is strong and will continue to be for the foreseeable future.

Consumer sentiment isn’t great, though – and this is where your ability to solve problems as a broker is critical. Will Dunning, Mortgage Professionals Canada’s chief economist, recently noted that “our consumer survey has found that sentiment regarding the housing market has shifted decisively downwards during the past year and a half, reflecting the impacts of increased interest rates and government policies that are making it more difficult for potential homebuyers to obtain the mortgage financing they need.”

In the current environment, brokers must focus on their relationships and offerings from alternative lenders. Your business depends on it. So what does this mean for you?

Mind your network of lenders, nurture your relationships with clients and creatively

“As brokers, we have the tools to work outside of the regulations, whereas our bank competitors do not” many deals that can only be done privately today that might have been an A or B deal just a few years ago. As a private lender, our overall credit quality has gone up considerably over the past three years.

BoC Governor Stephen Poloz said himself: “A key issue for the Bank, then, is understanding how people will react when they are told that, under the new rules, they do not qualify for the mortgage they would like ...

People might also look for a lender that is not bound by these new mortgage rules so they can avoid facing the stress test.”

The proof is in the statistics. Canadian Real Estate Association sales data from July showed that national sales rose by 1.9% over June. A Re/Max analysis interpreted this as an indication that buyers have adjusted to

solve lending challenges. Borrowers typically come to us with a problem they need solved.

We can no longer solely rely on traditional methods and service providers to fulfill these financial requirements.

To those stuck in the A or B world only, branch out. Develop and grow your network of alternative and private lenders and creative financial strategies to help better solve your clients’ needs. Today, this applies just as much to AAA clientele as it does to any other channel.

Bryan Jaskolka is chief operating officer of Canadian Mortgages Inc., one of Canada’s largest private residential mortgage lenders. He was a finalist for Mortgage Broker of the Year (More Than 25 Employees) at the 2018 CMAs.

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2018-09-25 4/10/2018 7:13:161:58 AM PM 2018-09-25 1:58 PM

PEOPLE

INDUSTRY ICON

CHALLENGING THE STATUS QUO Dominion Lending Centres head Gary Mauris is revelling in the network’s next battle for industry supremacy

GARY MAURIS might have the most recognizable face in the Canadian mortgage industry.

Coming seemingly out of nowhere, Mauris and his partner, Chris Kayat, founded Dominion Lending Centres in 2006 and have built it into a respected force within the industry. Today, the DLC network is home to thousands of brokers and has become a household name for millions of Canadians.

So where did Mauris come from? A serial entrepreneur, he ran and then sold two massively successful companies – an equipment manufacturer and an ATM provider – before entering the mortgage space. His interest in the mortgage industry was piqued after a conversation with a friend south of the border.

“I was spending time with my friend in Palm Springs who was a mortgage broker,” Mauris recalls. “I remember him telling me that 75% to 80% of mortgages in the US are done through a broker, and I thought that was fascinating.

In the US, there are hundreds and hundreds of banks and state-to-state lenders, and I thought that if they have that kind of penetration in the US, then there’s huge opportunity in Canada.”

Anybody who knows Mauris will tell you that he’s both a brash straight-shooter and a meticulous researcher who doesn’t do anything halfway. Upon returning to Canada, he inves-

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tigated the mortgage space – specifically, who his competitors would be. He understood that significant consolidation was on the horizon, which would provide greater opportunity for brokers.

“What I look for in a business in longevity in the industry and something the consumer

mortgage industry brass tacks – but also because they recognized that brokers are the most important facet of the operation and therefore need to be treated as such.

“Our job is to cater to our brokers and develop efficiencies, new tools and technologies, and to make their jobs easier,” Mauris says. “We

“Our job is to cater to our brokers and develop efficiencies, new tools and technologies, and to make their jobs easier. We take their feedback and help them become better owners and better entrepreneurs – period” is going to want and need for a long time,” he says. “I look for businesses that are sustainable long-term – that’s number one. I also look for businesses that are scalable and that create distribution that can be leveraged via technology and strong leadership, such as our ownership network.”

All about the brokers Mauris and Kayat were able to build DLC into a paragon in part because they understood

take their feedback and help them become better owners and better entrepreneurs – period. One thing we continue to hear about our competitors is that they try and tell their brokers what to do, what to sell and how to do it. The secret to business is that nobody wants to be told – they want to work with you and collectively strategize to help their business and help their customer.”

Central to DLC’s business model, Mauris adds, is a willingness to listen to brokers’ unique

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PROFILE Name: Gary Mauris Title: President Company: Dominion Lending Centres Based in: Vancouver Years in the industry: 13 Career highlight: “The biggest thing we’ve done that fires me up and brings us all together is community initiatives. We’ve given away 9,000 bicycles to underprivileged kids through a program called Bikes for Kids.”

Career lowlight: “None. When it comes to business challenges and mortgage rule changes, and even the 2008–09 meltdown, that’s something you work through.”

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PEOPLE

INDUSTRY ICON

needs and the flexibility to meet them.

“Our philosophy has always been to make sure we understand, loud and clear, that we work for the brokers and that they don’t work for us,” he says. “We grew by understanding that our brokers have individual needs and they will shape their business based on their mandate, not by a cookie-cutter model. We work with all our offices because they’re all different, and we have that flexibility. The minute you think you’re ‘it’ and stop listening

on homeowner insurance so that our agents can cross-sell something that pays them well for every mortgage that they close.

“For us,” he adds, “there’s only one speed: fast. There’s no resting on our laurels. We’ll never stop running as hard as we have for the last 13 years because that’s what we do.”

If Mauris isn’t afraid to grill the prime minister – he was positioned as the tenth and final interviewer because he refused to ask less combative questions – it stands to reason

“For us, there’s only one speed: fast. There’s no resting on our laurels. We’ll never stop running as hard as we have for the last 13 years because that’s what we do” and stop trying to improve is the minute you stop being relevant. Status quo is the enemy of greatness.”

Staying on top In recent years, the broker channel has seen aggressive consolidation, but Mauris isn’t concerned by it. He’s not one to back down from a challenge: A few years ago, he went toe-to-toe with Prime Minister Justin Trudeau in an interview, grilling him on everything from raising taxes to tighter mortgage qualification rules. So what’s another scrap with the competition?

“There’s a reason we’ve remained number one,” Mauris says. “We’re constantly evolving.

We have new products on the horizon that are game-changers. We’re going to be the only mortgage network in the country that will give consumers a copy of their credit score and credit profile with a step-by-step action plan of what they have to do each and every month to maximize their Beacon score. We’re focusing

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that he’ll do anything necessary to ensure DLC remains Canada’s top mortgage network.

Rumours have swirled recently that Mauris is looking to sell the company, but he unequivocally denies that.

“I think the industry will be pleasantly surprised by some upcoming announcements,” he says. “We’re committed to making it better and staying at the top of the leader board.

Nobody outworks us. DLC Group does close to $40 billion in originations every year, and we do it one broker at a time.

“We’re not mired in pension funds or private-equity debt like our competitors and can afford to play the long game,” he adds.

“Our brokers choose us because we have built our group of companies from the ground up, pushing the boundaries and challenging the status quo. We have more brokers dominating the CMP Top 75, Young Guns and Women of Influence than anybody else, and we’re proud to have the very best in the business as a part of DLC.”

A BRIEF HISTORY OF DLC 2005

2006 Gary Mauris and Chris Kayat launch Dominion Lending Centres

2013 DLC acquires The Mortgage Centre

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2016 2015

Mauris is inducted into the Canadian Mortgage Hall of Fame

2018 DLC wins the Canadian Mortgage Award for Network of the Year – its most recent win in the category

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SPECIAL REPORT

TOP BROKERAGES 2018

BROKERAGES 2018

Discover 51 brokerages that are raising the bar in Canada’s mortgage industry THE PAST TWO years have been full of shakeups for the mortgage business, and brokers have been forced to adapt as regulatory changes and market conditions reshape the industry’s future. Despite these hurdles, many brokers have prevailed – together, CMP’s Top Brokerages funded a total of $14.5 billion in 2017.

Hailing from all regions of the country, this year’s Top

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Brokerages encompass both the nation’s largest shops and top-performing local players. From residential to commercial and everything in between, these brokerages’ recipes for success aren’t reliant on any one sector or market; rather, they’re driven by people, values and processes. On the following pages, the 51 Top Brokerages share insights into their businesses and reveal what has made them so successful.

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TOP BROKERAGES INDEX BROKERAGE

NETWORK

PAGE

BROKERAGE

NETWORK

PAGE

Able & Remarkable Mortgage Architects Mortgage Architects

41

Invis West Coast Mortgages

Invis

30

AZMS Mortgage Solutions

The Mortgage Centre

25

Loewen Group Mortgages

Broker ONE

32

Bespoke Mortgage Group

CIMBC

25

Matrix Mortgage Global

Verico

41

Blue Pearl Mortgage Group

Independent

37

Mission 35 Mortgages

Verico

40

BlueTree Mortgages West

Dominion Lending Centres

24

Monarch Mortgage

Mortgage Intelligence

26

Brokers for Life Inc.

Dominion Lending Centres

25

The Mortgage Advisors

Verico

32

Canada Mortgage & Financial Group

Independent

26

Mortgage Associates Ontario

CIMBC

38

Canadian Mortgages Inc.

Verico

40

The Mortgage Centre TMK Team

The Mortgage Centre

34

CanWise Financial

Independent

29

Mortgage Edge

CIMBC

37

Centum Metrocapp Wealth Solutions Inc. Centum

37

Mortgage Intelligence Inc.

Invis

25

Clear Trust Mortgages

Dominion Lending Centres

38

The Mortgage Professionals

Verico

36

DLC Canadian Mortgage Experts

Dominion Lending Centres

34

Mortgage Outlet

Independent

40

DLC Denova Group

Dominion Lending Centres

39

Mortgage Wellness

Verico

29

DLC Edge Financial

Dominion Lending Centres

41

Mortgage Wisdom Corp.

The Mortgage Centre

35

DLC Entrust Mortgage Services

Dominion Lending Centres

30

MortgageGuys.com

CIMBC

33

DLC Estate Mortgages Inc.

Dominion Lending Centres

35

Mountainview Mortgage

The Mortgage Centre

39

DLC Hilltop Financial

Dominion Lending Centres

28

DLC Home Capital Solutions

Dominion Lending Centres

33

Neighbourhood Dominion Lending Centres

Dominion Lending Centres

36

DLC Homeline Mortgages

Dominion Lending Centres

32

Rock Capital Investments

The Mortgage Centre

28

DLC HT Mortgage Group

Dominion Lending Centres

27

Sherwood Mortgage Group

Mortgage Architects

33

DLC Integrity Mortgage BC

Dominion Lending Centres

26

Streetwise Mortgages

Verico

28

DLC Mortgage Excellence

Dominion Lending Centres

27

Sunshine Financial

The Mortgage Centre

30

DLC White House Mortgages

Dominion Lending Centres

34

Superior Mortgage

Verico

38

Elite Lending Corp.

Dominion Lending Centres

29

TMG Airport Drive

TMG The Mortgage Group

39

First Pacific Mortgage

Dominion Lending Centres

40

TMG The Clarke Mortgage Group

TMG Atlantic

36

GreenFlow Financial Corp.

CIMBC

28

Xeva Mortgage

Verico

30

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SPECIAL REPORT

TOP BROKERAGES 2018

27%

BRITISH COLUMBIA

9%

WHERE DO THE TOP BROKERAGES DO BUSINESS?

CRUNCHING THE NUMBERS

9

Average number of years in the business

ALBERTA

59%

28

ONTARIO

Average number of agents per brokerage

597

Average number of transactions per brokerage

3%

2%

NOVA SCOTIA

$277million Average volume funded per brokerage

SASKATCHEWAN

BLUETREE MORTGAGES WEST Kelowna, BC

BlueTree Mortgages expanded from a single location in Kelowna to a new

brokerage, BlueTree Mortgages West, and now has offices in Edmonton, Coquitlam, Kamloops, Victoria, Nelson and Prince George. Under its new brokerage model, BlueTree Mortgages West has become one of DLC’s top 15 brokerages for 2018.

“Our brokerage has successfully

maintained a ‘family feel’ through a very significant expansion period,” says partner Andrew Macrae, highlighting how BlueTree agents express genuine interest in each other’s success and are eager to collaborate with each other.

One BlueTree tradition that has been carried over to BlueTree Mortgages West is the company’s annual three-day team-building event, Bluetreepalooza, which allows agents across all offices to build new friendships, strengthen existing relationships and brainstorm new ideas that can be applied in their day-to-day practices.

BlueTree also organized its first Evolve Mortgage Conference in January, with participants from brokerages and networks throughout Western Canada. BlueTree designed the conference to add value not only to its team, but also to the mortgage industry at large.

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BESPOKE MORTGAGE GROUP Etobicoke, ON

Bespoke Mortgage Group’s team takes pride in its client-centric approach.

With a business built primarily on referrals, Bespoke Mortgage Group has actively expanded its support staff in order to handle higher volumes while maintaining the same level of service. The brokerage has also found a competitive edge in the market as a member of the Coalition of Independent Mortgage Brokers of Canada.

“Our independence allows us to be nimble enough to tailor our services to our clients’ specific homeownership and financing needs,” says co-founder Simon Lyn. “Red tape should never get in the way of quick and efficient client service.

At the same time, our connection to the Coalition of Independent Mortgage Brokers of Canada gives us direct access to all lenders under a top comp model. We look forward to continuing to build our brand through fidelity to our core values: knowledge, service and product availability.”

BROKERS FOR LIFE Edmonton, AB

MORTGAGE INTELLIGENCE Windsor, ON

With a strong team of agents specialized in private lending, homebuilding, real estate investment and first-time buyers, Brokers for Life is equipped to cover just about any type of deal that comes its way. Licensed in five provinces and with established partnerships with multiple monoline lenders, Brokers for Life can address various mortgage needs while offering clients the option to not be co-brokered or be involved with an additional agent.

Recently, the team achieved a significant milestone, funding $1 billion in mortgages.

Brokers for Life was also a finalist for Brokerage of the Year (25 Employees or Fewer) at the Canadian Mortgage Awards in 2017 and 2018.

After 17 years in business, Mortgage Intelligence has offered over 500 mortgage products and services, partnered with more than 50 lenders, served more than 600,000 clients, and reached $158 million in funded mortgages. The company is a member of M3 Mortgage Group, and recently, team member Sarah Carter was named Best Mortgage Broker in Windsor Star’s Best of Windsor-Essex reader survey.

To give back to the community, Mortgage Intelligence supports the Angels in the Night Homeless Shelter Project and has so far raised $4 million in cash and in-kind donations for local shelters. The company started a new Angels in the Night chapter in Windsor with the support of its team members, their family and friends.

AZMS MORTGAGE SOLUTIONS Mississauga, ON

For the past three years, AZMS Mortgage Solutions has been part of Mortgage Centre of Canada’s President’s Club, which recognizes brokerages that have funded a minimum of $100 million each year. For AZMS, success is not about having a big team, but having one that’s fully committed to growing knowledge and expertise, demonstrating professionalism, and delivering exceptional customer service, all while working hard and maintaining a positive attitude.

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SPECIAL REPORT

TOP BROKERAGES 2018

CANADA MORTGAGE & FINANCIAL GROUP Mississauga, ON

A regular fixture on CMP’s Top Brokerages list, Canada Mortgage & Financial Group [CMFG] is led by founder and CEO Ameera Ameerullah, who has been in the industry since 2001 and has built a well-known and respected brand.

To date, CMFG has maintained a zero default in its mortgage portfolio, and its approval ratio remains an unblemished 100%, a unique badge of honour for the company. Earlier this year, CMFG added to its extensive list of accolades with the award for Alternative Broker Specialist of the Year (New to Canada) at the Canadian Mortgage Awards, following its win as Alternative Lending Broker of the Year in 2017.

CMFG remains focused on changes in the real estate and mortgage industry by completing ongoing market analysis and staying up to date with lending guidelines, which allows it to offer educated recommendations to clients and investors. For example, in 2018, CMFG noticed an increase in construction and commercial business from land acquisition, condo development, single-family residential and mixed-use development across Canada. Ameerullah continues to create new products in niche markets designed to help Canadians attain their goals, and CMFG’s lending division plans to launch a new fund soon allowing investors to invest a diversified mortgage fund while bridging the gap for borrowers.

MONARCH MORTGAGE Vaughn, ON

After 25 years in the industry, Victor Peca launched Monarch Mortgage with founding partner Mauro Poletti for a simple reason: to give back by training and mentoring new brokers under a new brand, in partnership with Mortgage Intelligence. “My goals have changed through the years to not just focus on sales,” Peca says, “but to give back what I’ve learned to the team, which is educating, training, relationship-building and marketing skills.”

In 2017, Monarch funded more than

DLC INTEGRITY MORTGAGE BC Nanaimo, BC

When Kim Strynadka founded Integrity Mortgage in 2001, she was a single mother working from home; in the

$100 million worth of mortgages with just a few brokers on hand. This year, the company is looking to expand its team to reach its funding goal of $120 million. To support its agents, Monarch offers regular biweekly meetings that cover topics needed for agents to be successful. These meetings always include a lender, as Monarch’s leaders know that maintaining good relationships with top lenders is critical.

“Having status and excellent relationships with all top lenders also helps to support the team by allowing our clients to benefit from a wide variety of resources,” Peca says. “That reputation, my experience and my willingness to share all with my agents are the reasons we have rock-solid broker loyalty.”

17 years since, she has built a successful brokerage that continues to grow. Eight years ago, Integrity Mortgage joined DLC, and two years ago, Strynadka’s assistant/broker, Katie Hommy, became a full partner in the business. As a result of their complementary skill sets, the brokerage’s business quadrupled, propelling Strynadka and Hommy to the top 10% of all DLC brokers.

“We found a way to be successful at what we love and maintain life balance,” Strynadka says. Recently, Integrity Mortgage purchased its own commercial building with plans to recruit more agents and grow the business even further.

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DLC MORTGAGE EXCELLENCE

DLC HT MORTGAGE GROUP

Surrey, BC

Located in Grande Prairie, the team at HT Mortgage Group understands how to work around various situations that arise from living in oil country. Known as “the little team that gets it done,” HT Mortgage Group proves that a small team in a small market can still break records.

In June 2018, HT Mortgage Group ranked 18th for volume among all DLC offices across Canada. In addition, one of the brokerage’s agents, Gert Martens, was ranked among the top 2% of all DLC brokers in 2016 and 2017.

In 2016, Mortgage Excellence underwent a realignment of its core values through the reconfiguration of its leadership team. This allowed all team members to come together as a cohesive unit to decide on the brokerage’s top priorities moving forward, which was essential in achieving a higher level of customer and agent satisfaction.

The experience of Mortgage Excellence’s veteran team members, combined with the fresh perspectives of its new agents, have resulted in plenty of positive changes and growth. The brokerage has been able to leverage regulatory and economic changes to achieve success, not only by helping clients achieve their homeownership goals, but also by empowering its agents and staff to advance their careers.

Grande Prairie, AB

Email lender notes, application, and credit bureaus to:

deals@vwrcapital.com D IMITRI K OSTUROS

Chief Operating Officer dimitri@vwrcapital.com

P AULA H UTTON

BDM - Prairies paula@vwrcapital.com

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SPECIAL REPORT

TOP BROKERAGES 2018 ROCK CAPITAL INVESTMENTS Orangeville, ON

Since 2013, Rock Capital Investments has more than doubled its volume, going from just over $90 million to $243 million in 2017; by year’s end, the brokerage expects to achieve a 10% year-over-year increase.

One of CMP’s Top Brokerages since 2016, the company became part of The Mortgage Centre President’s Club

DLC HILLTOP FINANCIAL Langley, BC

STREETWISE MORTGAGES Woodbridge, ON

A go-to resource for trusted advice and mortgage solutions, Streetwise Mortgages helps clients through all types of life situations. Whether a client is looking to build wealth through real estate, dealing with a separation or

in 2017 and received the People’s Choice Award from The Orangeville Banner the same year.

As a brokerage that puts a premium on education, Rock Capital Investments has a full-time recruiter trainer on staff and offers

extensive training for underwriting, business setup and lead generation, along with a 14-week session on database management.

With 53 agents and counting, the company also arranges two retreats each year where agents can recalibrate and set goals.

As a small boutique brokerage in the town of Langley, Hilltop Financial applies a tailored and professional small-town approach to serving clients in the area. With one simple goal in mind – to provide every present and future client with unbelievable service – Hilltop Financial focuses on residential, commercial and private deals.

Dedicated to its community, the brokerage supports several local charities, non-profits and minor sports associations.

divorce, or is self-employed, Streetwise Mortgages has a solution. The brokerage’s dedication to clients has led to several accolades, including a long-standing spot on CMP’s Top 75 Brokers list and the Outstanding Customer Service Award at the 2018 Canadian Mortgage Awards.

“As a niche brokerage, agents who join our team leverage our recognized brand and know how to grow their books and to provide their clients with top-notch advice,” says Dalia Barsoum, president and principal broker. “Our brokerage also offers agents the option to utilize our in-house technology platforms to enhance productivity, client experience and collaboration. All of our agents are mobile and do not have to incur any fixed monthly desk fees.”

GREENFLOW FINANCIAL CORP. Toronto, ON

GreenFlow Financial sets itself apart from other brokerages with its choice of target market and marketing approach, positioning itself as a mortgage specialist that caters to self-employed individuals and business owners.

GreenFlow also offers add-on services to become a ‘financial concierge’ for its clients, who can expect advice and convenience under one roof. A member of CIMBC, GreenFlow Financial was voted the top mortgage brokerage in Toronto by Top Choice Awards in 2017, and CEO Reza Ghazi was a finalist at the 2018 CMAs in the Alternative Broker Specialist of the Year (New to Canada/ Business for Self) and Alternative Lending Mortgage Broker of the Year.

CM

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TOP 10 BROKERAGE BY VOLUME

CANWISE FINANCIAL

Toronto, Montreal, Calgary

In less than five years, CanWise Financial has secured an impressive array of awards and accolades, including, most recently, the award for Mortgage Brokerage of the Year (More Than 25 Employees) at the 2018 CMAs. Working with 16 lender partners, CanWise offers a broad range of options to clients.

“At CanWise, we are all about delivering the best mortgage rates to our customers as efficiently as possible,” says president and broker of record James Laird. “Our team of experienced agents will walk you through your mortgage options to ensure that you choose the most appropriate mortgage product at the best rate.”

That dedication to clients has resulted in more than 1,800 five-star reviews online, making CanWise one of the best-reviewed mortgage companies in Canada.

MORTGAGE WELLNESS Barrie, ON

Mortgage Wellness is an award-winning team of more than 30 mortgage professionals based in downtown Barrie, Ontario. Founder Nick L’Ecuyer and his father, Roger L’Ecuyer, run two separate teams: Nick manages a high-volume internal team of salaried agents, while Roger manages a top-producing traditional external agent team. Since inception, the brokerage’s goal been to empower employees, clients and business partners in an effort to create the best mortgage experience possible.

ELITE LENDING CORP. Vancouver, BC

Winner of the DLC Masters Award for 2016 and 2017 and a finalist for Best Newcomer Mortgage Brokerage and Outstanding Philanthropy & Community Service at the 2018 CMAs, Elite Lending aims to provide clients the highest level of personal service, taking care of each one as if they were the only client. Elite Lending’s agents work tirelessly to perfect the balance between professionalism and friendship, regularly touching base with clients to thoroughly understand their mortgage needs and financial goals, and setting the right expectations prior to recommending solutions.

Elite Lending has a ‘work hard, play hard’ culture, encouraging its team members to prioritize balance when it comes to work and personal life. Collaboration and interdependence are important values for the team as they strive to work together to better serve the community.

CANADIAN HOME APPRAISALS INC. Residential & Commercial

If you need a accurate and speedy appraisal for Street Capital “A” side or “B” side, Genworth Canada, CMLS Financial Industrial Alliance, ICICI Bank, IC Savings, Equity Credit Union, Most Private Lenders, Canada Revenue Agency (CRA) and Legal and Listing Purpose you can order via or website www.chainc.ca or please contact:

S.K. BALES

CRA, DAR, Certified Appraisal Reviewer, MVA Residential, FRI, CRES President

CMP Canadian Home Appraisal Inc.indd 1

Bus: 416-438-2200 Cell: 416-801-3219 Email: skbales@hotmail.com

5/09/2018 4:34:10 AM

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SPECIAL REPORT

TOP BROKERAGES 2018

TOP 10 BROKERAGE BY VOLUME

DLC ENTRUST MORTGAGE SERVICES Chilliwack, BC

One of the top 10 DLC brokerages in Canada, Entrust Mortgage Services has been servicing the Chilliwack community for a decade. Led by owner and mortgage specialist Steve Brouwer, Entrust Mortgage Services’ brokers fund millions in mortgages each year, placing customer service above all when working with their clients.

“Our brokers are experienced and very knowledgeable,” Brouwer says. “We focus on knowing each and every lender and understanding all the products available so we can help every client.

In today’s ever-changing mortgage marketplace, knowledge is key to sustaining growth, and our team can find those necessary solutions for clients.”

TOP 10 BROKERAGE BY VOLUME

XEVA MORTGAGE Surrey, BC

Backed by a team with more than 140 years of combined banking and real estate experience, Xeva Mortgage

SUNSHINE FINANCIAL Cambridge, ON

uses its expertise to cut through all the clutter and confusion, acting as a liaison between the lender, Realtor, appraiser, credit agency, lawyers and other service providers in a transaction.

The firm’s one-of-a-kind underwriting centre places and closes deals, allowing agents to spend more time sourcing business and advising clients. In addition to underwriting support, Xeva’s technology investment encompasses the latest in deal management, document storage, CRM management and a client portal.

Xeva also places heavy importance on continuing education, providing weekly webinars and monthly mastermind sessions hosted by its partnership group. The brokerage also hosts two team conferences each year that offer valuable content to agents to help them grow their business.

In just seven years, Sunshine Financial has grown to six offices and a team of 30. “We have a different way of doing business,” says principal broker and owner Penny Wrightly.

Last year, Sunshine Financial won a readers’ choice award for Favourite Mortgage Broker in Owen Sound, and this year, the firm received both platinum and silver awards at the Best of the Best Awards for Favourite Mortgage Broker/Agent Office in Owen Sound. “Our offices are primarily in small-market Ontario, and our whole team has a passion for serving our small towns and the communities we live and work in,” Wrightly says.

INVIS WEST COAST MORTGAGES Courtenay, BC

Operating as a team, getting expert advice and service from lender partners, and being part of the Invis network have been keys to West Coast Mortgages’ success in 2017. Team members Paul Healey, Aaron Baxandall, Laurie Tinkler, Ana Fleck, Monica Peckford, Marion Logan, Monica Parkin and Harminder Dhut maintain a competitive edge in the market by being front-runners in their communities and staying up to date with all new lender promotions. In addition, West Coast Mortgages uses Invis’ cutting-edge apps and tools to provide clients with the expertise they expect. Maintaining strong community ties is also a critical part of the brokerage’s success. “Our brokerage has always encouraged brokers to be involved in social and community groups,” Baxandall says. “A strong community is the foundation that has led to our consistent growth over the past 12 years.”

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IN T IN L

M 3 I N O VAT I O N L A B

INTRODUCING THE M3 INNOVATION LAB EXPLORE INTERACT THINK DO… Experience a new kind of ongoing collaborative exercise

LAUNCHING @ NATIONAL MORTGAGE CONFERENCE MONTRÉAL OCTOBER 28-29, 2018

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SPECIAL REPORT

TOP BROKERAGES 2018

TOP 10 BROKERAGE BY VOLUME

THE MORTGAGE ADVISORS Ottawa, ON

One of the fastest-growing brokerages in Eastern Ontario, The Mortgage Advisors was recently ranked on the 2018 Growth 500 list. So far this year, the brokerage has already accomplished a 25.1%

increase in funded volume. Founded by brokers Matt Daniels and Christa Tessier, The Mortgage Advisors has been a finalist for multiple Canadian Mortgage Awards and has earned top-tier status with various lender partners, ensuring clients get competitive rates and priority service.

With a strong support team and dedicated leadership, the brokerage assists each agent in improving their business and finding success.

DLC HOMELINE MORTGAGES Vancouver, BC

LOEWEN GROUP MORTGAGES Burlington, ON

Loewen Group Mortgages is one of the highest-rated brokerages in Canada, having received more than 400 Google reviews and five-star ratings from clients. Loewen Group has also won Mortgage Broker of the Year, Brokerage of the Year and Best Customer Service awards at the Canadian Mortgage Awards.

At Loewen, the focus is on creating the best experience not just for clients, but also for the team. Each team member is given the option to participate in the group RRSP, with a 100% match of up to 5% of the broker’s gross income. The brokerage also holds events every quarter to recognize the team’s efforts and show appreciation beyond the usual monetary incentives. To further engage employees and help them gain a sense of purpose, Loewen Group organizes quarterly charity events through the help of its team members, donating the proceeds to Food 4 Kids Halton.

Established in 1995, Homeline Mortgages is one of Canada’s longestrunning and most trusted brokerages, with offices in downtown Vancouver, Kelowna and West Kelowna, and more than 70 years of combined management experience. Extremely well connected to handle commercial transactions for construction, office space, land development and warehouse space financing, the company was named the number-one Mortgage Alliance franchise in BC for volume and transactions in 2015 and 2016.

Homeline focuses on working with both experienced brokers and new brokers with strong sales or banking backgrounds. Producing brokers can own a part of the business and participate in profit-sharing. Brokers are also given the option to own an insurance book instead of having to pass clients on to insurance companies. Homeline also offers lender options for rental property, catering to clients with multiple properties in their portfolio.

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MORTGAGEGUYS. COM Guelph, ON

In 2009, Dario Di Renzo and Chuck Nash – two seasoned entrepreneurs and veterans of the customer service and hospitality industry – started on their path to the mortgage industry

when a broker approached them with a client in need. They stepped into the role of private lenders and helped the client, and the idea of forming a full-service mortgage brokerage began to form.

Four years later, the pair launched MortgageGuys.com, which has since grown to a team of 12 with a combined 50 years of industry experience. By offering agents full-time underwriting services and a full

training program to help them build business and referrals, MortgageGuys.com equips agents with the knowledge and expertise needed to serve clients’ every need.

A member of the Coalition of Inde­ pendent Mortgage Brokers of Canada, MortgageGuys.com was a finalist at this year’s CMAs for Best Newcomer Mortgage Brokerage and Alternative Broker Specialist of the Year.

TOP 10 BROKERAGE BY VOLUME

DLC HOME CAPITAL SOLUTIONS

Stoney Creek, ON

At Home Capital Solutions, the goal is to help each broker build his or her own brand and become leaders in their respective areas. The brokerage offers each new agent one-on-one and group training sessions with lenders, which include case studies and hands-on learning by walking through an entire mortgage transaction from start to finish, ensuring the agent has the utmost confidence to complete a client transaction. Home Capital Solutions also provides ongoing support to seasoned agents and brokers.

Despite servicing a vast area, including the GTA, Niagara Region, Guelph and Waterloo, Home Capital Solutions’ brokers and agents have a ‘one big team’ mindset and work closely with each other through large group meetings featuring guest speakers, as well as a private Facebook page where team members can communicate their issues, brainstorm ideas and share general advice.

To assist agents in generating leads, the brokerage has successfully placed agents in various real estate offices.

Home Capital Solutions also effectively leverages social media and participates in charity events and community organizations, including the regional chamber of commerce.

TOP 10 BROKERAGE BY VOLUME

SHERWOOD MORTGAGE GROUP Toronto, ON

In 2008, Sherwood Mortgage Group opened its doors as a boutiquestyle brokerage, aiming to make the home-buying experience stress-free and straightforward. Some of Sherwood’s agents have been with the brokerage since its inception, and

its family culture has allowed its team to support each other when needed to give clients the best service possible.

Sherwood and its team members have been recognized with numerous awards, including the 2014 Canadian Mortgage Award for Mortgage Brokerage of the Year and the RBC Canadian Women Entrepreneur Award for co-owner Athena Constantinou. This year, the ladies at Sherwood raised money to build homes for Habitat for Humanity as part of the Women’s Build in Brampton.

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SPECIAL REPORT

TOP BROKERAGES 2018

THE MORTGAGE CENTRE TMK TEAM Port Coquitlam, BC

Milka Lukacevic, Daniela Serena and Meghan Graham make up The Mortgage Centre TMK Team. Lukacevic started the brokerage in 2009 with the vision to unite like-minded, hard-working, dedicated brokers; over time, the team has become a family that enjoys working and learning together, empowering each other and giving back to their community.

“Continuous education in this ever-changing broker landscape is key to providing the best possible service to our clients,” Lukacevic says. “We enrol in accredited courses, conferences and steady lender meetings to know the best

fit for our diverse client needs.” To ensure accountability and continued success, the team has weekly and quarterly sessions to set goals and generate ideas on how to achieve targets.

The TMK Team also puts a high priority on giving back, donating to various causes, participating in community events and fundraisers, providing food and clothing for local shelters, and extending help to clients free of charge on occasion. The TMK Team has been nominated as a top small business by the Port Coquitlam community and has received the TD Community Partnership Award for its philanthropic efforts.

DLC WHITE HOUSE MORTGAGES Vernon, BC

CANADA’ #1 BROKERAGE BY VOLUME

DLC CANADIAN MORTGAGE EXPERTS Surrey, BC

For the second consecutive year, DLC Canadian Mortgage Experts [CME] is Canada’s number-one brokerage by volume. As one of the largest brokerages in the nation, CME offers diverse lending options through a seasoned team of brokers and managers. CME believes in forming long-term relationships with clients and putting together customized mortgage plans with clients’ needs in mind. That dedication has led to CME

continuously ranking as a finalist at the Canadian Mortgage Awards, and last year, CME was the number-one DLC brokerage in revenue and number of mortgages funded.

As proof of its success, the brokerage earns five or more lender reward trips every year, and ensures that all colleagues and lender partners continually work toward even more effective partnerships.

“CME is always looking to help our brokers to be more efficient and learn new skills to overcome a tougher mortgage world,” says Mike Lloyd. “A couple of those ways are through internal coaching programs and our lender reward trips.

Spending a fun three or four days with your colleagues and lender BDM/underwriter is a great way to learn new ways to work and enhance their relationship with that lender.”

Within a three-year period, White House Mortgages has received the First National Wizard Award; DLC’s Top 50 Mortgages Funded Monthly Award, Top 50 Monthly Revenue Award and Champion Hall of Fame Award; and has been named Best Mortgage Company in North Okanagan by Okanagan Life Magazine and Community Leader of the Year by the Greater Vernon Chamber of Commerce.

As a community-minded brokerage, White House focuses on treating its clients like family, carefully guiding them through the mortgage process and staying in touch long after funding.

This approach has helped White House establish itself as the top-ofmind brokerage in the interior of British Columbia.

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DLC ESTATE MORTGAGES Toronto, ON

Small but mighty and run by a tight group of 13 agents, DLC Estate Mortgages has achieved significant volume growth year-over-year; last year, it was one of DLC’s top brokerages in Canada for volume. The team’s hard work and in-depth knowledge are the two key components of the brokerage’s success. All team members motivate and push each other not only to improve both themselves and the business, but also to engage and support community and charity. This holistic approach has led DLC Estate Mortgages to become well respected among clients, referral partners and lenders.

MORTGAGE WISDOM CORP. Surrey, BC

Mortgage Wisdom puts customers first, always striving to serve them better. The brokerage’s ever-increasing clientele is a clear indication of its commitment to serving its clients. With a passion for real estate, finance and service excellence, Mortgage Wisdom constantly works to help clients improve their financial position through its expertise, quick turnaround times and high approval ratios.

Mortgage Wisdom was named New Franchise of the Year by The Mortgage Centre Canada and received the Ambassador’s Silver Award.

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SPECIAL REPORT

TOP BROKERAGES 2018 TOP 10 BROKERAGE BY VOLUME

NEIGHBOURHOOD DOMINION LENDING CENTRES Newmarket, ON

Neighbourhood Dominion Lending Centres’ vision is to equip all team members with the tools, education and support they need to ensure individual success – which, in turn, helps the company succeed. NDLC’s formal coaching and mentoring program includes one-on-one coaching, business planning, goal-setting and tracking, and accountability calls. NDLC also provides unique value-added services, such as a competitive group benefits package, in-house payroll and compliance, fulltime IT and database management support, and deal placement assistance.

For the past several years, NDLC has run and refined a client and referral partner contest, offering a total annual prize lot of $34,000, including two grand-prize draws of $5,000 each and 12 draws of $1,000 each for borrowers and referral sources.

THE MORTGAGE PROFESSIONALS Kingston, ON

The Mortgage Professionals is one of the few brokerages in the country where agents have dual licences as mortgage and insurance agents, giving them

TMG THE CLARKE MORTGAGE GROUP A focus on creative lending and building a strong online presence have propelled the growth at The Clarke Mortgage Group. Team members Brennan Handy, Tommy Boudreau and David Clarke complement each other’s strengths and weaknesses to offer strong products

and great service to clients. Thanks to Boudreau’s proficiency in French, the team also offers bilingual services.

“I have built a business around debt consolidation and alternative and private lending because I love the problem-solving aspect of it,” Clarke says. “Tommy and Brennan have other focuses that they enjoy, [such as] military transfers, new-toCanada and first-time homebuyers, and by growing our team, we can offer so much to our clients.”

the ability to offer clients a full breadth of products across the mortgage, insurance and wealth management spectrum. Within the first six months of receiving their dual licences, agents are able to earn an average of $50,000 annualized additional compensation from their existing client base. The brokerage also has several experienced insurance specialists that

agents can refer their clients to, and is often involved in the consulting process in order to help clients get the best possible product and service.

Positioning brokers for success has resulted in impressive loyalty. “The average number of years our agents have been with the company is 11 years,” says co-owner and agent Karen Matthey. “Five of our agents have been with the company more than 20 years. We are proud to have had very little turnover.”

Several Mortgage Professionals agents have been featured on CMP’s Top 75 Brokers and Top 75 Small-Market Brokers lists. Agent Mitch Thibodeau was a finalist for Mortgage Broker of the Year at the 2018 CMAs, and the brokerage itself has been a finalist for Brokerage of the Year two out of the last three years.

Truro, NS

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BLUE PEARL MORTGAGE GROUP Surrey, BC

Blue Pearl Mortgage Group was founded three years ago with a mission to build a unique team with a high-performance culture, a deep

commitment to clients, and the ability to be organic and go with the flow. This model has allowed Blue Pearl to start expanding into all provinces while using technology to develop other forms of business and make information readily available to new and existing clients.

What makes Blue Pearl stand out from competition is its decision to actively

seek out young, inexperienced brokers and help them build their careers to become the industry’s future high-income earners. Blue Pearl believes having a team of young brokers who are adept at leveraging technology and digital media strengthens the backbone of the business.

In order to help these young professionals gain stability while working to jumpstart their careers, Blue Pearl compensates its recruits during their training period.

The leadership team ensures that each member has a development plan that enhances their individual strengths while simultaneously shaping them to work better as part of the team.

The brokerage also emphasizes innovation in an ever-changing market; its efforts were recognized with a BBB Torch Award for Innovative Business Practices.

Blue Pearl was also a finalist for two awards at the 2018 CMAs: Diversifier of the Year and Mortgage Industry Employer of Choice.

TOP 10 BROKERAGE BY VOLUME

MORTGAGE EDGE Toronto, ON

Granting direct access to all lenders, with privileges, is the best value-added service any agent can ask for, and it’s what Mortgage Edge readily offers. A member of the Coalition of Independent Mortgage Brokers of Canada, Mortgage Edge focuses on building preferred lender partnerships that result in specialty offers, along with a well managed portfolio that addresses lender sensitivities.

With 28 years of experience at the helm, Mortgage Edge continues to operate as a unit, and agents are always willing to assist one another with no strings attached. Mortgage Edge prides itself on complete transparency, which is crucial for the brokerage as it strives to preserve a good culture and harmonious working relationships among its agents.

CENTUM METROCAPP WEALTH SOLUTIONS Toronto, ON

The team members at Centum Metrocapp Wealth Solutions are more than just colleagues – they’re like a family, looking out for one another and helping each other out whenever they can. For the past three years, Metrocapp Wealth Solutions has been a finalist at the CMAs; most recently, principal broker Anne Brill won the 2018 award for Mortgage Broker of the Year (More Than 25 Employees).

In addition to helping clients with their mortgage and financing needs, Metrocapp is also heavily involved with its community; the firm sponsors two hockey teams each year, and has also supported Centum’s Tech4Kids program by raising money through a lemonade stand. Perhaps most exciting, Brill rappelled down city hall to raise money for the Make-a-Wish Foundation with the Metrocapp team there to cheer her on.

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SPECIAL REPORT

TOP BROKERAGES 2018 SUPERIOR MORTGAGE Surrey, BC

Operating under the motto “a team of four but power of one,” Superior Mortgage believes in educating every client so they can become an ambassador for the business – a practice that has proven successful, judging by the brokerage’s 85% referral rate and 91.5% funding ratio.

Founder Sharnjit Singh Gill started Superior Mortgage in 2001 after a successful career in banking; this year, he was a finalist or Mortgage Broker of the Year (Fewer Than 25 Employees) at the Canadian Mortgage Awards. “We have funded over $790 million,” Gill says.

“This confirms that we are doing the right things for our clients, but we are fully determined to achieve the magic figure of $1 billion within the next two years.”

MORTGAGE ASSOCIATES ONTARIO Toronto, ON

A member of the Coalition of Independent Mortgage Brokers of Canada, Mortgage Associates Ontario has maintained an excellent track record for training agents who are new to the industry, helping them achieve the knowledge and expertise needed for their own professional growth and advancement of the industry as a whole.

Through its unique lead-generation systems, the brokerage continues to demonstrate its innovative capability while helping agents who require more experience or are struggling to source clients on their own. The leads generated have provided newer agents a much-needed springboard to gain the experience they require to flourish in the mortgage business.

TOP 10 BROKERAGE BY VOLUME

CLEAR TRUST MORTGAGES Vancouver, BC

Clear Trust Mortgages believes that its business begins with individuals, and it’s dedicated to providing members with the tools and support needed to make dreams come true.

Last year was a year full of milestones for Clear Trust, including

expanding the team past 100 brokers and funding more than $1 billion in residential and commercial mortgages since its founding in 2011.

“We continue to build an ecosystem that will provide every Clear Trust broker with full support and the necessary resources to grow their business,” says founder and CEO Robert Afan. “It is important that each and every one of our brokers knows we have their backs. After all, our brokers are a vital part of our success.”

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MOUNTAINVIEW MORTGAGE Burlington, ON

Led by broker-owners Carolyn Callero and Anthony Spadafora, Mountainview Mortgage has nearly 75 years of combined experience in financial services and the mortgage industry.

Established in 2014, the brokerage is firmly rooted in its community, which has instilled its brokers with a deep understanding of the local market. Its close-knit team operates under one critical principle: to save clients both time and money while maintaining a personal touch with each transaction.

DLC DENOVA GROUP Mississauga, ON

A boutique firm with access to more than 50 top lending institutions in Canada, Denova Group places all types

of mortgages, including purchases, refinances, equity take-outs, debt consolidations and mortgages for self-employed borrowers. The Denova Group team maintains a 24/7 focus, providing the best advice to clients while staying well ahead of changes. The brokerage’s owners work in the field alongside the rest of their team, actively brokering and providing support on complex deals.

TMG AIRPORT DRIVE Saskatoon, SK

A fully paperless office, TMG Airport Drive is always on the lookout for the next piece of technology that will make the mortgage process smoother and simpler. Home to four young brokers who have accumulated more than 50 years of combined experience in the mortgage and banking industry, TMG Airport Drive is determined to keep its position as a leading brokerage in Saskatoon.

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SPECIAL REPORT

TOP BROKERAGES 2018

MORTGAGE OUTLET Toronto, ON

Named Best Newcomer Mortgage Brokerage at the 2018 Canadian Mortgage Awards, Mortgage Outlet is just three years old, but it’s already funding hundreds of millions in mortgage volume. Self-proclaimed “math geeks”, the broker-owners at Mortgage Outlet are committed to helping staff, agents, clients and lending partners by hosting weekly lender meetings, sending insightful weekly emails and coaching agents privately on each file.

The team is also committed to becoming underwriting experts.

“With this expertise, we can better understand our clients’ needs and our lender policies to deliver the best options and recommendations to our clients,” says director and principal broker Shawn Stillman.

CANADIAN MORTGAGES INC. Thornhill, ON

As one of Canada’s largest private lenders to the mortgage brokerage community, Canadian Mortgages Inc. [CMI] brings 100 years of mortgage experience, $50 billion in lending capital and 2,000 mortgage products to its clients. Regulatory changes and the

increased demand for private capital were top growth contributors for CMI last year; recently, the firm added Alberta to its active lending areas, in addition to expanding its Ontario offerings and introducing commercial private mortgages.

“Mortgage agents appreciate our flexibility on pricing, location and loan sizes,” says Bryan Jaskolka, CMI’s chief operating officer. “Overall, our success is fuelled by the many successful agents and brokerage firms in the industry that are our partners.”

FIRST PACIFIC MORTGAGE Vancouver, BC

Currently in its second year of operation, First Pacific Mortgage takes pride in having created a collaborative working environment where brokers are supported by the partners, who have a combined 65-plus years of banking experience. Partners promote a culture of open communication where all can grow and learn together. Their extensive banking experience allows the team to accurately educate clients and help them make the right lending choice.

MISSION 35 MORTGAGES Hamilton, ON

Mission 35 Mortgages takes great pride in its team of predominantly women, something that’s still considered unusual

and unique in the industry. Principal broker Brian Hogben has worked intentionally toward this outcome; the women at Mission 35 Mortgages have a seat at the table and platforms to voice their opinions. The company was a finalist for Best Newcomer Brokerage at the 2018 CMAs.

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ABLE & REMARKABLE MORTGAGE ARCHITECTS Surrey, BC

With mortgage, real estate, insurance and financial advisors all under one roof, Able & Remarkable Mortgage Architects positions itself as one-stop shop for clients, most of whom are BFS and complex accounts.

Although the brokerage is just two years old, its team has more than 20 years of experience in a variety of fields, including an extensive banking background that enables it to effectively straddle both worlds.

Agents are given hands-on training for the whole mortgage process and receive strong client support from the brokerage’s leadership team. Lead planner Akash Sharma was named Alternative Broker Specialist of the Year (Business for Self) at the 2018 Canadian Mortgage Awards.

MATRIX MORTGAGE GLOBAL Toronto, ON

DLC EDGE FINANCIAL Toronto, ON

For Edge Financial, culture has been a key differentiator. “We are a true team, and everyone supports and shares with everyone else on the team selflessly,” says SVP of operations Alan Kiddell.

“We are very careful to hire people who have what it takes to be successful, but above all, they must be a good fit. That, of course, includes the highest ethical standards – and a lot of fun.”

Edge Financial stays committed to education, including weekly sales and lender meetings and support for conferences and off-site events, including sales workshops. The brokerage also has a transparent compensation model.

The firm’s team culture has resulted in volume-bonus and top-tier status with every lender that offers either or both.

“We have an excellent relationship with our lenders, which we believe are more important than our clients,” Kiddell says. “If we lose a client, we lose repeat and referral business, but if we lose a lender, that jeopardizes our business.”

Since it opened its doors in 2008, Matrix Mortgage Global has helped thousands of Canadians find the right mortgage solution. With three offices in the GTA, the company has maintained a focus on private and alternative lending, winning Private Lending Broker of the Year at the 2018 Canadian Mortgage Awards, in addition to placing as a finalist in two other categories.

At the end of 2017, Matrix gained its licence to operate nationally, and this year, it was granted an administrator licence, giving its agents exclusive access to private funds. The company has cultivated strong relationships with the broker community to bring private lending products and underwriting assistance to brokers across the country with the introduction of its Private Lending Hub.

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4/10/2018 7:30:02 AM

SPECIAL PROMOTIONAL FEATURE

BRUISED CREDIT

Changing the conversation Home Trust outlines how brokers can help those who have had their credit history impacted by a challenging life event

FOR MORE THAN 30 years, Home Trust has provided lending services to the alternative mortgage market. We take great pride in working with our broker partners to serve the many Canadians who fall outside the lending profile of many of the country’s larger financial institutions.

We know the Alt-A market includes responsible borrowers. Self-employed individuals, including the growing number of professionals working in contract positions, as well as those who are new to Canada, typically find it difficult to qualify with many lenders. Those who have experienced past credit issues are also routinely declined, even when they can show progress in repairing their credit.

The primary means by which many lenders evaluate an individual’s creditworthiness is with the applicant’s Beacon score.

Unfortunately, those with a Beacon score falling below an arbitrary cut-off point often find themselves unable to secure a mortgage with these lenders.

Life happens The problem with screening new applications simply by Beacon score is that the Beacon algorithm fails to consider that life happens.

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A Beacon score is a snapshot of one’s current financial position, but it does not shed any light on the events that might have contributed to a low score. In addition, the Beacon score provides no insight into efforts the applicant is making to resolve past issues.

For example, did the applicant recently suffer a prolonged illness or experience an extended period of unemployment? Did they just go through a divorce or loss of a spouse?

Events like these can cause great stress and financial hardship, leaving people unsure as to how best to move forward.

Lenders that decline an applicant without first taking the time to understand the facts leading to the lower score do these individuals a tremendous disservice. At Home Trust, our approach provides for a thorough review of each file so that we can truly understand the applicant’s situation, notwithstanding the risks flagged by their Beacon results.

Only by understanding the events that caused the financial issue, as well as the steps the applicant is making to remedy the situation, is it possible to conduct an accurate risk assessment. Clearly, this takes considerable effort on our part, but it’s the only way to manage risk and determine an approach that meets the needs of these applicants.

How brokers can help You should never hide important details about your health from your doctor, and when it comes to preparing a new mortgage application, it’s critical that clients be equally forthcoming. Only by having a full understanding of your client’s circumstances can you forward a complete application to the lender. These important details, together with a well developed financial recovery plan, are required by the lender’s underwriting team as they attempt to put a lower Beacon score into perspective.

At Home Trust, for instance, our underwriters carefully review each application and are committed to arriving at a positive outcome for your client whenever possible.

As such, we rely on our partner brokers to ensure all relevant facts are included.

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spend the extra time to review these applica­ tions, we will, where possible, find a solution that works for your client.

To provide the additional narrative to explain the circumstances for a lower Beacon score, we ask that you use the notes section in your application or the comments section in the Loft Broker Portal. Please be sure to also include specific details clearly demon­ strating how your client is working to resolve those circumstances.

To help you determine areas you should include in your client’s application, you can use the five Cs of credit as a guide: 1 Character: An explanation of the

circumstances that caused the poor credit history

2 Capacity: Include all streams of income

(employment, child care benefits, alimony, maturing investments, etc.) so we can assess the client’s overall capacity to service the loan

3 Collateral: An updated valuation of

the property being purchased

4 Capital: Include all available assets,

including additional properties and other liquid assets

5 Conditions: The underlying aspects

“The problem with screening new applications simply by Beacon score is that the Beacon algorithm fails to consider that life happens” As a broker, you should expect that it will likely require a little more work on your part to complete a new application for a lower Beacon score applicant. However, this time is well spent when your efforts can secure your client with a mortgage solution tailored to meet their needs. Indeed, if these applications were straightforward and easy to underwrite, every lender would be clam­ ouring to take them on.

Keep in mind that gathering this personal financial information could be uncom­ fortable for your client, as you will need to

probe into specifics that could be potentially embarrassing. This is where your profes­ sionalism and your compassion will help you build the trust necessary to have this difficult conversation.

You should also prepare your client for the prospect of a higher interest rate. Much like insurance, where clients who represent a greater risk will face higher premiums, the same principle applies when seeking a mortgage. In other words, if your client is a higher risk, they should expect a higher rate.

Because of our expertise and willingness to

of the deal, including the terms of the current mortgage and the supporting documents required to provide confir­ mation of the applicant’s finances and the property itself

We understand that even the best-laid plans can be derailed by unexpected events.

However, we also believe that with a strong understanding of your client’s circumstances, we can determine a way forward that helps get them back on track.

Home Trust has been standing for Canadians for more than 30 years, and we are determined to lead the way when it comes to changing attitudes toward those with damaged credit histories. We’re proud to have helped thousands of deserving Canadians with timely, expert solutions. Working together with our broker partners, we look forward to helping thousands more.

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4/10/2018 7:37:45 AM

SPECIAL PROMOTIONAL FEATURE

LENDING

Good to grow MERIX Financial has been in a state of rapid growth this year. CMP spoke to president and CEO Boris Bozic to get the scoop on what’s new at the lender – and what’s in the works for 2019

CMP: It appears that MERIX has new updates almost daily: new hires, new policies and products, new rate specials. What has spurred this flurry of activity?

Boris Bozic: Every organization looks for growth, and we have aggressive goals – not only for this year, but going into 2019. So much of what we’re doing is with a forwardlooking view for 2019. In order to reach

most notable changes is our switch/transfers program. We’re making it easier than ever for borrowers to come to us instead.

We have enhanced our sales structure and disciplines and made a significant investment in human capital this year. We have also made significant investments in technology, constantly improving our back-end processing, reporting, broker portals and client portals.

“We’re not looking at others to imitate options that exist; we are creating new ones” Boris Bozic, MERIX Financial our objectives, all these initiatives and the growth of our teams were necessary.

CMP: How are brokers responding to all this change?

BB: The response has been overwhelmingly

CMP: MERIX has grown to number five in market share. To what do you attribute this success?

BB: Well, we’ve done a lot to make it easier

positive. However, so much change in such a short period of time also leads to confusion.

We realize that; we don’t deny it. Our challenge now is to ensure that our messaging provides clarity for our customers, the mortgage brokers. We are doing increased education, webinars and social media – everything we can to ensure that our messages are received.

for brokers to do business with us. We’ve been doing a comprehensive review of all policies and guidelines to ensure that they are in line with the marketplace and what borrowers’ evolving needs are. The program with the

44

CMP: Has there been any change to your core values during this time?

BB: No – as a matter of fact, what’s old is new again. We are embracing our core values more so than we have in the immediate past because quite frankly, it works for us.

The four pillars MERIX was founded on are: selective access to the MERIX brand, compensation over the life of the mortgage, sole proprietorship of the customer relationship and, most importantly, process and innovation. This last one has really been our focus this year.

CMP: With so many great lender options out there, why should brokers choose MERIX? BB: It depends on how you categorize options.

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If you look at the mortgage landscape, there are not many different options. Regulatory changes have seen to that. It’s more about who can actually get the deal done.

What is more critical today than in the last five years is innovation of any sort, and we’ve come to realize that we can’t allow distractions to get in the way of that core principle of ours. We’re not looking at others to imitate options that exist; we are creating new ones.

CMP: What’s your end goal? When will you be satisfied with what you’ve accomplished?

BB: Never. It’s a never-ending quest. What we’re working toward is continuing to grow our business, providing value for shareholders, and constantly striving to improve

customer experience for the broker and the borrower. I don’t believe anyone has done that perfectly to date.

CMP: What do you feel is the true definition of success for a broker?

BB: That’s an individual benchmark – there’s no one standard answer. Whatever the individual circumstance, though, we sincerely believe we can help or assist to achieve whatever the broker’s own stated objectives and end goals are. If someone is looking for shortterm gain, we have a solution in Lendwise. If someone is more strategic and has a longer view of the business, we also have a solution in MERIX. Trailer fees have been our core value since day one, and we’re prepared to reward our

customers who share our way of thinking.

For example, since our inception, we have paid out over $45 million in trailer fees to our brokers. This year alone, we have paid out more than $4.7 million. By the end of December, we have multiple brokers who will have earned over $100,000 just in trailer fees from us this year.

CMP: What are the most important things brokers should be aware of with MERIX? BB: We’ve put the distractions behind us, we’ve found our footing, and we have a definite plan for the future. And I would ask brokers to consider joining the MERIX movement and keep an eye out for what’s next – because there’s always something.

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4/10/2018 7:39:20 AM

SPECIAL PROMOTIONAL FEATURE

TECHNOLOGY

Setting the record straight CMP spoke to Tim Rye from Finastra to get the whole story about what’s been going on at the company recently

RUMOURS SPREAD quickly, especially in the tight-knit world of the Canadian mortgage industry. What starts as a whisper can quickly transform into an assertion of fact. So when Finastra’s Tim Rye started hearing rumours that the company was leaving the industry and retiring its Filogix Expert web-based solution, he picked up the phone and called CMP to set the record straight.

“We are certainly not leaving the industry – in fact, we are working on things to strengthen for the future,” says Rye, who serves as Finastra’s head of Canadian lending technologies. “We have experienced a lot of corporate change in recent years, which may have created some confusion in the marketplace. But Filogix Expert isn’t going anywhere; it’s going to continue to play an important role in the Canadian mortgage world.”

The past year has certainly been a period of change for Rye and his team. Previously known as D+H, the company was acquired by Texas-based investment firm Vista Equity Partners in June 2017. Vista then merged the D+H business with financial software provider Misys and rebranded the new global group as Finastra.

“We have spent the last year working internally on new plans for the future and embracing our new ownership, which has brought with it some great expertise and opportun-

46

ities,” Rye says. “The Finastra tagline is ‘the future of banking is open,’ which is a reference to our commitment to open APIs and banking technology – something our marketplace here in Canada can definitely use.”

Finastra has a massive global presence with more than 10,000 employees around the world. Its global headquarters is in London, and Toronto is home to its Canadian HQ. That means Rye and his team have access to a new level of expertise and an opportunity to deliver a higher level of products and services to the Canadian market.

“Finastra believes strongly in the Canadian mortgage marketplace and our ability to have a strong presence here,” Rye says. “Our platforms have been in the market for a long time, and our plan is to invest, grow and expand. We are certainly here to stay.”

Change is a theme that has been running through all areas of the mortgage industry in recent years. Increased digitization has changed the way consumers want to do business, and the industry has been forced to adapt. For Rye, this evolution has definitely been a positive.

“Consumers are expecting more from how they buy products and how they interact with financial institutions,” he says. “The continued growth of rate shopping sites and consumers’ ability to access lenders and lender informa-

tion quickly has driven up expectations, and brokers have to evolve accordingly. We have also seen lots of media coverage around the challenges facing lenders, and when you add all of that together, it seems as though the industry is ready for the next level of digital transformation and innovation.”

Finastra’s Canadian business has spent the last year evaluating its place in the market and analyzing how and where it can add more value to its industry partners. One major development to come out of this analysis was announced earlier this year, when Finastra revealed it was opening up its front end to allow other solutions providers to connect to its network.

“We did that primarily because we believe strongly that brokers should continue to have choice in this industry,” Rye says. “Behind the scenes, we have been working closely with our key partners. We held some lender focus groups, engaged our key broker partners and

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“Our platforms have been in the market for a long time, and our plan is to invest, grow and expand. We are certainly here to stay” Tim Rye, Finastra continued to embrace consolidation and centralization on the front end. We have taken the time to understand what our key partners expect from us in the future.”

One thing that has become clear to Finastra is that modern brokers need – and demand – more flexibility and more control.

A broker in a small town on the East Coast has different needs than a broker working in downtown Toronto or Vancouver. Not every broker needs a system that handles every aspect of their process from start to finish, but some do. Providing that choice and flexibility is central to Finastra’s strategy of

enabling Canadian brokers to find efficiencies in their daily operations. The company is in the process of building out a Mortgage Marketplace that presents a single point of access to products and services from a variety of third-party providers.

“Having a nimble business and being able to work with borrowers how they want to work is driving a lot of success in the industry,” Rye says. “We believe it’s our job to enable that connectivity and to allow access to different tools and services that people can choose from.

It’s almost like an à la carte service. We are planning to launch multiple new solutions

that will enable brokers to determine how best to run their own businesses. Our role is to enable solutions that empower the connectivity required to drive that change.”

Finastra has been focusing on driving efficiencies for lenders, too, by working to enable much-needed two-way connectivity within its technology ecosystem.

“The quick movement of accurate, validated information will not only allow our broker partners to meet the expectations of their clients, but our lenders will be able to more efficiently process and respond, not to mention reduce risk and transaction turnaround times,” Rye says. “We look forward to supporting all our partners as the Canadian mortgage landscape continues to evolve.”

Be sure to look for Finastra at conferences and events across the country this fall; the company plans to make further announcements regarding its commitment to and investments in the Canadian mortgage industry.

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4/10/2018 7:40:17 AM

SPECIAL PROMOTIONAL FEATURE

REVERSE MORTGAGES

5 benefits of selling reverse mortgages Reverse mortgages represent a real opportunity in the current market. HomeEquity Bank explains how brokers can take advantage

HOMEEQUITY BANK’S reverse mortgage product has seen rapid growth in Canada in recent years. As awareness around the flexibility of reverse mortgages has grown, so has adoption.

For years, reverse mortgages have been inaccurately viewed by some as a loan of last resort. However, in reality, a reverse mortgage is not just a tool for paying down debt – many clients use the equity a reverse mortgage releases to invest in a second property, complete major renovations or to remain in their home without having to downsize.

Here are five ways HomeEquity Bank is helping brokers up their game.

1

Peak Rewards

In 2017, HomeEquity Bank launched a reward and loyalty program designed specifically with mortgage brokers in mind. The loyalty program, called Peak Rewards, is open to all entities operating in the industry, from the head office to the franchise or broker owner, all the way down to the agent. As brokers close more deals, they can achieve different levels of status, including compensation, spending accounts and recognition. Under Peak Rewards, brokers receive bonus basis points that

48

can be used toward promotional products, marketing materials, paying for clients’ appraisals or their own education.

“Brokers achieve a different rewards status depending on how much business they do with HomeEquity Bank – standard, bronze, silver or gold,” says Andrea Twizell, national partnership director for mortgage brokers at HomeEquity Bank. “Our gold partners get the biggest rewards in the form of additional basis points. They are the top performers when it comes to providing reverse mortgages. They understand it and know how to identify clients.”

2

The Referred Channel

Through the Referred Channel, brokers can refer complex deals to HomeEquity Bank’s internal sales team, who will handle the transaction from start to finish and then pay the broker. Upon client approval, the broker submits the name and contact details of a client who wants a CHIP Reverse Mortgage, and HomeEquity Bank does the rest.

Twizell believes the benefits of the Referred Channel are currently underutilized by the broker community. “There is added flexibility for brokers who prefer to pass their leads into the hands of the HomeEquity Bank

experts and know that all referred leads will get the best care with the most knowledgeable sales and underwriting team,” she says.

“The broker is not penalized, even though HomeEquity Bank’s team has done all of the heavy lifting; we do the deal but keep the broker updated throughout the process while still providing compensation.”

3

Mortgage Broker Direct

Tied into the Peak Rewards program, Mortgage Broker Direct enables brokers to submit deals directly to HomeEquity Bank via the broker’s existing technology platform. Unlike in the Referred Channel, the broker must be a Certified Reverse Mortgage Specialist and is responsible for handling all aspects of the deal, as they are the only point of contact for their clients.

As a certified member, brokers get many additional benefits, including access to marketing and promotional materials, email updates on program features and exclusive incentives, sales tools, and a certification logo.

“Being part of a nationwide network

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becoming part of retirement planning.”

HomeEquity Bank teaches brokers to take a consultative approach, to ask the right questions of potential clients to find out if a reverse mortgage is really the most suitable option for their specific situation. Brokers are taught to examine exactly why the client is considering a reverse mortgage: Is there a cash-flow problem, medical issues, or are they looking to help their own children buy a house? Or do they just want to improve their lifestyle?

Brokers also learn the intricacies of the two types of reverse mortgages: a lump-sum advance via HomeEquity Bank’s core product, the CHIP Reverse Mortgage, or ongoing advances with Income Advantage.

“It’s all about teaching the brokers how to determine which client would benefit most from each product,” Twizell says. “After the course, brokers can advertise that they are certified, which improves perception and shows that they are knowledgeable and have credibility.”

“The demographics are changing in Canada, and our aim is to educate brokers on how that impacts the marketplace” Andrea Twizell, HomeEquity Bank means brokers can take their clients through the whole process from beginning to end without the need to refer their clients,” Twizell says. “Certified Reverse Mortgage Specialists put clients’ minds at ease because they are equipped to answer all their questions and complete the deal. Brokers also get paid more basis points if they handle deal themselves through the Mortgage Broker Direct program.”

4

Certification

Providing brokers with ongoing education is at the core of HomeEquity Bank’s philosophy. The bank has launched a Mortgage Professionals Canada approved reverse mort-

gage certification, which provides brokers with credits for attending a two-and-a-half hour course. The course educates brokers on everything related to reverse mortgages, from how to identify potential clients to important industry facts and statistics and how the program can benefit Canadians aged 55 and over.

“The demographics are changing in Canada, and our aim is to educate brokers on how that impacts the marketplace,” Twizell says. “Generally, from the age of 70 onwards, people do not want to move from their house.

And with recent research showing that Canadians have a 50% chance of living to 92, the need for the reverse mortgage product is

5

Launchpad

HomeEquity Bank’s Launchpad program also plays a pivotal role in enabling brokers to offer the CHIP Reverse Mortgage in the most effective way. It creates marketing emails and helps brokers boost their social media presence by providing them with tools like social media advertising and articles to post.

Launchpad also assists brokers in developing the most effective content for their own websites. It supplies brokers with the tools to help them promote themselves online and with physical materials, such as custom brochures. This vast collection of professionalgrade marketing gives brokers who work with HomeEquity Bank a key advantage.

“It provides information on the areas brokers need to focus on – tips and best practices on how to build a business using the reverse mortgage,” Twizell says. “It’s a continuing education tool with added marketing functions. It also allows brokers to calculate an estimated value of what their clients can qualify for.”

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4/10/2018 7:41:03 AM

SPECIAL PROMOTIONAL FEATURE

COMMERCIAL SERIES

All about the community Paul McGill of The Financing Hub explains why brokers shouldn’t bypass credit unions when searching for financing for commercial clients

AS A BROKER, you have options as to where you place your commercial mortgage deals: banks, trusts, non-bank commercial funders and the ever-growing number of private lenders. But there’s one other group of lenders that shouldn’t be overlooked: credit unions. Credit unions’ member-centric approach and support for local economies gives them a distinct position within Canada’s lending sector.

Where you place your borrowers is often a matter of which lenders will accept loans

always be taken into account: community.

Community, when dealing with credit unions, is about much more than the locations the credit union will lend in. It’s about the local economies the members are involved on a day-to-day basis. When dealing with credit unions, large or small, you have to remember that they are focused, first and foremost, on their members and the communities they live and work in.

A successful application will tie back to those communities.

Credit unions are focused, first and foremost, on their members and the communities they live and work in. A successful application will tie back to those communities with the credit parameters your application carries: location, amount requested, type of borrowing, borrower credit profiles, etc. Properly matching those factors is key to success when it comes to placement – in fact, this matching process is one of the main market advantages we deliver here at The Financing Hub. For credit unions, however, there is one other key factor that should

50

Let’s look at some other things you should keep in mind when approaching a credit union.

1

Will your project add to the community?

There are lots of ways your proposed submission can benefit a credit union’s community.

It can be something as simple as adding new

housing or jobs to the area. Or it could be something less direct, but just as tangible, like bringing in a new business that adds to that community.

Your project might bring profits into the credit union, which in turn enhances the value for members. That’s important, although credit unions aren’t solely focused on profits the way other lenders are. Using the profitability of the loan as your sole

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than other lenders. The fact is that credit unions often understand their local communities better than another lender. A credit union might fund a loan another lender won’t, but that’s usually because the credit union has a stronger understanding of your project than a non-local funder.

3

argument might not get you as far as you might think.

Be sure you’ve included in your initial submission any of the potential benefits your project can deliver to that community.

2

Credit is still the main deciding factor

Perhaps this is a bit obvious, but projects won’t benefit the community if they don’t

have long-term sustainability. And it really won’t help the credit union’s membership if their credit union takes a loss on the loan you’ve provided them.

Like any other submission you make to one of your lenders, make sure it’s supported by a strong underlying credit position before it ever leaves your office.

It’s a misconception held by some that credit unions have less stringent standards

Credit unions are truly local lenders

To get a better idea of what local lending is all about, I spoke to Mike O’Connor, a director in Meridian Credit Union’s commercial real estate lending group. He had this to say about Meridian’s approach: “Meridian takes a ground-up or micro approach to lending, where others typically take a macro or check-box approach to lending across the province, country or world, as the case may be. Our ability to best serve our membership is driven by a boots-on-theground philosophy. Every region and municipality in the province has its own set of regulations and unique social and economic environments, which are constantly changing and evolving. In order for Meridian to best serve our membership and manage risk, it is critical that we have firsthand and up-close knowledge of the local markets within which we serve.

“For Meridian, ‘know your client’ extends well beyond ticking anti-money laundering check boxes. Our ground-floor knowledge helps ensure we are lending to the right groups and that our members are operating/ developing in the right locations using the right partners/trades. Inherent in Meridian’s member-centric lending philosophies is a ‘look them in the eye’ and ‘see, feel and touch the dirt, bricks and mortar’ approach.”

Many credit unions take a similar approach to Meridian’s and often restrict their lending to a certain number of kilometres from their head office or branch locations. These trading areas often are defined by the geographic regions or zones the credit union’s members are located in.

Before approaching a credit union, it’s

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SPECIAL PROMOTIONAL FEATURE

COMMERCIAL SERIES

A credit union might fund a loan another lender won’t, but that’s usually because the credit union has a stronger understanding of your project than a non-local funder always a good idea to make an initial call to find out if the property is actually inside the credit union’s lending zone.

4

Members drive credit unions

When submitting your application to a credit union, remember to sell the borrower as well as their mortgage. At the end of the day, credit unions are there to support their members, not just put another mortgage on

52

their books. If you’re asking a credit union to fund your commercial mortgage request, they will be more open to the loan if the borrower is joining the credit union, both as a business client and a personal client. Even having the borrower meet with the credit union staff as part of the submission process goes a long way toward demonstrating the borrower’s potential commitment to the credit union.

Credit unions can range significantly in

their size and the lending they will do. Not all credit unions have the depth or resources of a Meridian, Vancity or Servus. How they approach their communities and the lending they do will differ from one to another.

However, if you remember these concepts of membership and community, credit unions can be important funding partners for you and your clients.

I’d like to thank Mike O’Connor for his contribution to this article. Meridian Credit Union is a welcome member of The Financing Hub lender group.

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

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More Options. More Lenders. More Solutions.

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

www.TheFinancingHub.com In exclusive partnership with MERIX Financial

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4/10/2018 7:42:19 AM

Canadian Mortgage Professional is the leading business magazine for the mortgage industry

• • • • •

Profiles and case studies of successful brokerages Interviews with industry leaders Special reports and surveys In-depth features on specialist lending Business strategy content

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4/10/2018 10:55:11 7:42:55 AM 14/03/2018 PM

11 PM

PEOPLE

CAREER PATH

EMBRACING CHANGE Throughout his career, Lorne Andrews has lived by the philosophy that if you’re not standing out, you’re blending in

Andrews got his feet wet in the industry by working parttime at Canada Trust while studying economics, ultimately becoming a supervisor at age 19. He also went in with a group of friends to buy his first house “I was still a student; the Realtor showed us the listings in a book. I was just thinking we would have an awesome place to throw parties”

1987

1993

LAUNCHES A BUSINESS Andrews started MetroSports, a business running recreational sporting events, and was eventually hired to build the York University Ice Gardens hockey leagues, which grew to become a $3 million-a-year business “I wanted to take risks – that’s when you discover your true potential. The most successful people are the ones who have failed the most”

2006

GOES BACK TO SCHOOL Having heard that OREA’s college was looking for additional locations, Andrews approached a venue, set up classes and attracted students. The next year, he opened an OREA satellite college campus at York University “When things start to change, I look for opportunity. I was surrounding myself with people coming into the real estate industry; from a mortgage perspective, this was huge – there were new Realtors coming through my door every day”

2014

STARTS A RESOURCE PORTAL His work with OREA alerted Andrews to an unmet need for an agent marketing system, which he now provides to 300 Realtor partners “Many Realtors think it’s just a matter of buying and selling – they don’t realize that they have to run a business. I wanted to create something that would have all they need to be successful under one umbrella”

1992

GETS INTO BANKING

HAS AN EPIPHANY Andrews reached a defining moment when, in the midst of advising an elderly couple, he realized he didn’t recall the conversation he’d just had “I was simultaneously looking at the teller line and making sure there was enough staff. These customers were hanging on my every word, but I was on autopilot.

That was the defining moment – I thought I had to look beyond banking”

2004

BREAKS INTO MORTGAGES A downturn bought about by SARS (among other factors) led to an 85% drop in summer business at the Ice Gardens, which it never recovered from “I saw the writing on the wall and decided I had to start thinking of what to do next – I had enjoyed mortgages [at the bank]. I wrote the exam and complemented it with my real estate broker’s designation. I wanted to create a mortgage business that would bring value to those we serve and those who support the industry”

2011

HEADS OUT ON HIS OWN Andrews eventually stepped into the ownership of a DLC brokerage, but he maintained his desire to offer something different

“Even in a big company, you have to think how you’re going to differentiate yourself from the other person down the street – it’s how you differentiate yourself that decides how you’re going to fit in the industry.

You stand out or you blend in” www.mortgagebrokernews.ca

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PEOPLE

OTHER LIFE

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

FOR THE LOVE OF THE GAME After hours, Toronto broker Peter Kampe can most often be found on the baseball diamond WHEN PETER KAMPE was a kid, everyone played baseball – and the Toronto-area mortgage broker loved it. So it’s little wonder that when he realized his 4-year-old son had abilities in the sport, Kampe didn’t hesitate to volunteer to coach the small athletes in his local ‘mosquito’ league.

18-4

Kampe’s team’s most recent regular-season record

12–15

Hours Kampe dedicates weekly to coaching the team

“It’s a great opportunity to bond with my son,” Kampe says of his sideline job as head coach of the Pickering Red Sox’s Mosquito A team, “and seeing the kids develop is just amazing.”

The team plays two games a week; this summer, between the regular season and the six tournaments they played across

Ontario, they scored the highest point total in the Eastern Baseball Association.

That strong performance has led the team’s typical roster of 25 regular-season games to swell to 37.

“I have loved the game ever since I was a kid,” Kampe says, “and the little kids [I’m coaching ] are just great.”

40mph

Speed at which the team’s pitching machine launches baseballs

Arou nd three dozen you ng baseball players typically compete for the dozen spots on the tea m each year

56 www.mortgagebrokernews.ca

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