CMP 14.10

AFFORDABILITY IN THE GTA Is B-20 shutting the middle class out of homeownership?

THE LENDERS’ PERSPECTIVE

MORTGAGEBROKERNEWS.CA ISSUE 14.10 | $12.95

Lenders weigh in on the results of CMP’s Brokers on Lenders survey

A NETWORK SOLUTION

Why MonsterMortgage.ca decided to join forces with Centum

2019

BROKERAGES Which Canadian brokerages are raising the bar for the entire mortgage industry?

00_OFC_Spine_OBC-SUBBED.indd 1

8/10/2019 3:42:03 AM

Want a partner who picks up the phone?

(We lend responsiveness).

viewlendingdifferently.ca IFC-03_Contents-SUBBED.indd 4

8/10/2019 12:47:08 PM

ISSUE 14.10

CONTENTS

BROKERAGES

22

2019

SPECIAL REPORT

CMP spotlights 47 brokerages that have managed to successfully navigate the mortgage market’s many challenges

Granite? Glass? Steel?

All buildings are made with money.

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $2.7 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $5M to $100M.

License # 10172

a IFC-03_Contents-SUBBED.indd 1

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

www.mortgagebrokernews.ca

1

8/10/2019 4:28:06 AM

ISSUE 14.10

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

CONTENTS

44 BROKERS ON LENDERS: LENDERS RESPOND

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

40

UPFRONT 04 Editorial

Why hasn’t fintech taken over the Canadian mortgage industry?

06 Statistics

Faced with strict qualifying guidelines, would-be borrowers are increasingly leaning on their parents for help

08 Head to head

PEOPLE

BROKER INSIGHT Broker Michelle Campbell on the importance of hiring for quality, not quantity

If a recession does hit, will Canadians’ high household debt make it worse?

10 News analysis

An industry insider drills down into what’s propelling the GTA’s affordability crisis

12 Alternative lending update

Reverse mortgage business is booming in Canada

FEATURES

BROKERS ON LENDERS: LENDERS RESPOND

Brokers had their say last month in CMP’s annual Brokers on Lenders survey. Now it’s the lenders’ turn to address brokers’ feedback

PEOPLE

INDUSTRY ICON

Ameera Ameerullah made her name in the industry as a broker, but it’s her philanthropy that she hopes will be her legacy

18 2

14 Commercial update

Canada’s tech hot spots are fuelling office space demand

42

16 Opinion

FEATURES

Why the big banks hold such power over consumers

INSIDE THE MONSTER

PEOPLE

A closer look at what motivated MonsterMortgage.ca to join Centum after two decades of independence

55 Career path

Joseph Fooks has become a master of career reinvention

56 Other life

Inside broker and animator Damian Wickie’s alternate reality

FEATURES

52

BRING YOUR VISION AND CULTURE TO LIFE How to ensure your business becomes what you want it to be

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

www.mortgagebrokernews.ca

IFC-03_Contents-SUBBED.indd 2

8/10/2019 4:28:06 AM

They may get knocked down.

But they get back up.

Again and again.

They’re your clients.

And like you, we see the potential in hard-working Canadians.

We help mortgage brokers find flexible solutions for borrowers who put in the work.

The ones with bruised credit.

The gutsy career switchers.

And those brave enough to make a new start.

A bank for the grinders.

IFC-03_Contents-SUBBED.indd 3

8/10/2019 4:28:02 AM

UPFRONT

EDITORIAL

Why fintech remains elusive

F

intech is commonplace in the American mortgage space, and while the opposite is true here in Canada, that’s likely to change as millennials and Gen Z mature.

Most Canadian fintechs don’t offer mortgages simply because they’re short of the necessary capital. According to TransUnion, there are fewer than 1,000 fintech companies operating in Canada, and of the 20% or so that are in the lending business, fewer than half have reached second-round funding. Contrast that with the United States, where competition between traditional lenders and fintech companies is cutthroat, and where the former are constantly playing catch-up with the latter.

Fintech comes with seemingly limitless possibilities, including reduced error handling and reconciliation. It can also make the mortgage process more expedient by eliminating disparate information silos, cutting administrative costs in the process. And fintech would open the door to blockchain, allowing cryptocurrency and international real estate lending to enter each other’s orbits.

Most Canadian fintechs don’t offer mortgages simply because they’re short of the necessary capital That said, fintech does come with its own set of risks. FINTRAC has warned that fintech companies are especially susceptible to money laundering, and that peer-to-peer payments could even be exploited for terrorist financing. However, these risks exist primarily because FINTRAC doesn’t have the resources it needs to enforce compliance. A lot of fintech companies simply have a poor understanding of Canadian anti-money laundering regulations – the most important of which are being able to readily identify clients, maintaining strict compliance programs and reporting suspicious transactions – and while FINTRAC receives about 30,000 reports each year, it can only conduct around 300 examinations during that period.

Fintech’s arrival in the Canadian mortgage space is a foregone conclusion – in fact, many fintech companies, by virtue of being nascent and malleable, will likely undercut the banks. Being prepared is imperative.

The team at Canadian Mortgage Professional

www.mortgagebrokernews.ca ISSUE 14.10 EDITORIAL Managing Editor Kimberly Greene Banks Writers Joe Rosengarten Neil Sharma Libby MacDonald Ephraim Vecina Copy Editor Clare Alexander

CONTRIBUTORS Emily Kiparisas Emma Bannister

ART & PRODUCTION Designer Joenel Salvador Production Manager Alicia Chin Advertising Coordinator Ella Dayandante

SALES & MARKETING Associate Publisher Chris Anderson Vice President, Sales John Mackenzie Sales Executive Alan Stewart Global Head of Communications Lisa Narroway 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

kimberly.banks@keymedia.com

SUBSCRIPTION INQUIRIES

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

ADVERTISING INQUIRIES

chris.anderson@keymedia.com

KMI Publishing 20 Duncan Street, Suite 300, Toronto, ON M5H 3G8 tel: +1 416 644 8740 www.keymedia.com Offices in Toronto, Sydney, Denver, Auckland, London, Manila, Singapore, Seoul

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

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

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 www.mortgagebrokernews.ca

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

8/10/2019 3:10:32 AM

Eating your favourite ice cream is a pretty great feeling, but do you know what it feels like to have your Broker Network 100% behind you?

Reach out today to get that feeling that can only be described as confident bliss!

thecentumnetwork@centum.ca | thecentumnetwork.ca ®/™ Trademarks owned by Centum Financial Group Inc. © 2019 Centum Financial Group Inc. The intent of this communication is for informational purposes only, and is not intended to be a solicitation to anyone under contract with another mortgage brokerage operation.

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

8/10/2019 3:10:40 AM

UPFRONT

STATISTICS

A family affair As homes become more and more unattainable for first-time buyers, they’re increasingly turning to their parents for help YOUNG WOULD-BE buyers have been disproportionately affected by last year’s B-20 changes, but they appear to have found a workaround to their inability to qualify for a mortgage: their parents. According to a recent Teranet analysis of home-buying trends in Ontario, the days of being able to purchase your first home entirely on your own are coming to an end – in 2012, around 40% of buyers reported that they were the sole owner of their property; by 2018, only

60%

about a third of buyers were opting to go it alone.

What’s more, in 2012, roughly half of those who bought with a second person did so with someone who was within 20 years of their own age – most likely a partner – while only 9.6% teamed up with someone 20-plus years older than them (i.e. a parent). Six years later, however, the proportion of young people buying with a parent had increased to 14.4%.

40%

20% 8.7%

Increase in the number of condos with at least two people on the title between 2012 and 2018

6.6%

4.9%

Increase in the number of other Increase in the number of types of properties with at least properties purchased with a two people on the title parent between 2012 and 2018

1.5%

40.2% 50.1%

0%

Increase in the number of properties purchased with a peer during the same period

9.6%

2012

Source: Teranet

SINGLE OWNERSHIP SHRINKS

CO-BUYING INCREASES IN CONDOS …

Fewer first-time buyers are likely to score a place of their own today compared to just a few years ago; the proportion of single buyers across all property types has narrowed to just over a third.

Condos are often the first foray into property ownership for many, but even they haven’t been immune to the trend toward multiple owners. Between 2012 and 2018, the number of condos with a single person on the title fell by 8.3%.

2012

Condos in Ontario with only one person on the title

Ontario titles with one person on them 40.2% Ontario titles with more than one person on them 59.7%

Condos in Ontario with a second person (greater than a 20-year age gap) on the title

60%

40%

2018 Ontario titles with one person on them 33.9% Ontario titles with more than one person on them 66.1%

20%

0%

2012

2013

2014

2015

2016

2017

2018 Source: Teranet

Source: Teranet

6

Condos in Ontario with a second person (less than a 20-year age gap) on the title

www.mortgagebrokernews.ca

30% 06-07_Statistics-SUBBED.indd 6

8/10/2019 3:13:06 AM

RELYING ON THE BANK OF MOM AND DAD First-time buyers in Ontario are much more likely today to have someone two decades or more their senior on the title of their property – most likely a parent. The proportion buying with a partner or peer (someone within 20 years of their own age) has stayed largely the same over the past six years, while the percentage of those buying alone has dropped quite significantly.

Properties in Ontario with only one person on the title

Properties in Ontario with a second person (greater than a 20-year age gap) on the title

Properties in Ontario with a second person (less than a 20-year age gap) on the title

39.7% 49.9% 10.4%

38.8% 50.5% 10.8%

39.4% 49.4% 11.2%

39.5% 46.6% 11.9%

36.9% 49.7% 13.4%

33.9% 51.6% 14.5%

2013

2014

2015

2016

2017

2018 Source: Teranet

‌ AND ALL OTHER PROPERTIES

POOLING RESOURCES

Across all non-condo property types, the proportion of single owners has fallen at a similar rate to condos, dropping from 37% in 2012 to just over 30% in 2018. The number of buyers purchasing with a parent, meanwhile, has increased by 4.7%.

Condo buyers are more likely to go in on the purchase with a partner of a similar age than they were six years ago, while other property types seem exempt from this trend, displaying a more modest increase.

Non-condo properties in Ontario with only one person on the title

Non-condo properties in Ontario with a second person (less than a 20-year age gap) on the title

Non-condo properties in Ontario with a second person (greater than a 20-year age gap) on the title

60%

Condos with more than one similarly aged owner on the title 2012 33.4% 2018 37.1% 0%

40%

10%

20%

30%

40%

50%

60%

Non-condos with more than one similarly aged owner on the title 2012 53.2%

20%

2018 55.1% 0%

2012

2013

2014

2015

2016

2017

2018 Source: Teranet

0%

10%

20%

30%

40%

50%

60% Source: Teranet

www.mortgagebrokernews.ca

06-07_Statistics-SUBBED.indd 7

7

8/10/2019 3:13:11 AM

UPFRONT

HEAD TO HEAD

How would household debt amplify a possible recession?

As economists debate the likelihood of a recession, should consumers be concerned about their debt load?

Steve Dyment Mortgage professional Xeva Mortgage

Lisa Pellerin Mortgage broker Claystone Mortgage Team – Mortgage Architects

Dillan Kelly Mortgage professional DLC Mortgage Excellence

“As rates are historically low and debt levels comparatively high, Canadians could get squeezed, should a recession arrive. There just isn’t much room to drop rates, unlike 2008, and debt levels are already elevated.

With recessions come job losses and a drop in personal discretionary income, forcing Canadians to turn to their ‘emergency fund’ – which for too many is that four-inch piece of plastic in their back pocket. While the accompanying drop in mortgage rates may provide some relief, without enough cash flow, debt levels will increase further, particularly in the costly arena of unsecured – and comparatively unregulated – personal debt.”

“Today, Canadians are at record levels of unsecured debt. Household debt has always been of great concern. While there has been tremendous focus on cooling the housing market and enforcing new mortgage rules, what continues to be overlooked is the building amount of unsecured debt.

With talk of a possible recession on the horizon, the impact will have Canadians scaling back on spending, therefore greatly affecting the economy. Many families are highly leveraged; add the fear of a job loss, and spending behaviour will dramatically change. Canadians will be more focused on managing their cash flow to make ends meet.”

“The recession is on its way if it isn’t here already. It isn’t Canadian household debt that has gotten us to this point, but high household debt will be a key factor to how the recession plays out.

A recession hits hardest on those who have high debt and low savings.

Unfortunately, many Canadians are in this position. When highly leveraged, a consumer will have a limited ability to spend, and spending is what helps lift us out of a recession. The next recession may be prolonged due to consumers’ inability to spend – so hold on, as it may be a long ride.”

PROMPTED TO PAY IT OFF? Canada’s household debt service ratio was up to 177.1% in September, according to Statistics Canada. Meanwhile, the Office of the Superintendent of Bankruptcy Canada reported in July that consumer insolvencies have risen 17% year over year. However, figures from Investor Economics’ 2019 Household Balance Sheet Report indicate that Canadians seem more inclined to direct their savings towards diminishing debt rather than making investments. “The final months of 2018 delivered a sobering message to Canadian households and the financial services industry alike,” said Investor Economics president and CEO Goshka Folda, “with market concerns over Brexit, a US-China trade war and other factors depressing asset valuations and prompting a rise in interest rates.”

8

www.mortgagebrokernews.ca

08-09_H2H-SUBBED.indd 8

8/10/2019 3:13:43 AM

08-09_H2H-SUBBED.indd 9

8/10/2019 3:13:44 AM

UPFRONT

NEWS ANALYSIS

Inside the GTA affordability crisis Canada’s Big Six banks wield considerable power – and, one industry expert argues, B-20 has only strengthened their position, which could ultimately undermine homeownership in the country’s largest city PROSPECTIVE HOMEBUYERS in Canada face a slew of obstacles when trying to purchase a home, but one of the biggest is the effect of stymied competition brought on by B-20. In his new book, The GTA Affordable Home Ownership Crisis, R. Scott Davie, who has spent decades selling homes in the region, takes the OSFI to task for exercising undue influence over federal officials. Davie also argues that the Canadian banking system is bereft of fair competition, which is ultimately obstructing Canadians’ dreams of homeownership.

“There are Canadian banks in the American

and let them pick up the business Canadian banks are ignoring by leaving people out in the cold so that it puts the mortgage markets in balance.”

Calum Ross, a leverage wealth expert and broker with The Mortgage Management Group, agrees that inviting American banks into the market would be a step in the right direction.

“Our banks’ power and control of the market is immense, and the global impression of Canadian banking is it’s a license to print money, because if you get in with the Big Six, they divide everything from back-room operations

“You’d be hard-pressed to say that we have a [banking] system with enough variety and competition” Calum Ross, The Mortgage Management Group market, but we don’t have any American banks here,” Davie says. “We should have limited banks here so Canadians can benefit rather than being held hostage by their own banks. My suggestion is for the Ontario government to bring in a few American banks and register them provincially so they don’t fall under OSFI’s rules

10

to commonality of credit rules,” he says. “If you juxtapose the definition of ‘oligopoly’ and the Canadian banking world, you’d be hardpressed to say that we have a system with enough variety and competition. Because there’s a high burden of entry from a capital standpoint, and because our banks are big players with so many

things to protect them from losing control, it stifles innovation.”

One of the chief complaints about B-20 is that it effectively shackles existing mortgage holders to their lenders. While homeowners aren’t subject to the stress test if they renew with their existing lender, they do have to clear that hurdle if they shop their mortgage around for a better rate with another lender. The result is that banks are no longer compelled to offer competitive rates.

Ross, however, doesn’t believe OSFI acted improperly in introducing B-20. To buttress his point, he refers to the wealth effect, whereby people spend more money when their wealth surges. This often results in frivolous spending, he says – namely, Canadians using their principal residences like ATMs. “As much as we may not like some of the

www.mortgagebrokernews.ca

10-11_News Analysis-SUBBED.indd 10

8/10/2019 3:15:10 AM

HIGH TAXES A MAJOR PART OF THE PROBLEM The Greater Toronto Area has some of the highest taxes on new development in North America, according to a recently released report by the Building Industry and Land Development Association, which has put further pressure on prices and supply in the region.

AVERAGE GOVERNMENT-IMPOSED CHARGES ON NEW HOMES Low-rise

High-rise

$240,000 $200,000

$160,000 $120,000

$80,000

$40,000 $0

GTA average

Canada (outside of GTA) average

US average

Source: Comparison of Government Charges on New Homes in Major Canadian and US Metro Areas, BILD

changes to CMHC, those changes were necessary because we, as taxpayers, are shareholders in those insured loans,” Ross says. “Generally

next generation is struggling to afford real estate without help from their parents, he says that this could effectively hollow out the wealth of

“Seventy per cent of the next generation that would normally be buying is renting.

It hollows out the middle class” R. Scott Davie, Davie Real Estate speaking, I think the moves made by OSFI, CMHC and other high-ratio insurers were necessary and the only thing we could do to protect ourselves from ourselves.”

However, Davie questions the wisdom of adding another barrier to entry to the housing market, especially in the GTA. Noting that the

the middle class in the long run.

“Although now we have the richest generation ever living in the GTA with the highest standard of living on record,” he says, “the next generation will be the first since the Industrial Revolution that won’t do as well as their parents.”

He highlights the fact that exorbitant

purchase prices could force the next generation of would-be homebuyers to rent for as long as 15 years, which will hamper their ability to build wealth. “The danger is that is 70% of the next generation that would normally be buying is renting,” he says. “It hollows out the middle class and will devastate the economy, not to mention people’s prosperity.”

In The GTA Affordable Home Ownership Crisis, Davie also argues that soaring taxes play an outsized role in the lack of housing affordability in the region.

“Twenty-two to 25% of the price of a new home or condo is taxes,” he says. “It’s alarming because the average condo is $500,000, and the average house is $1 million and resale is about $800,000, so millennials are paying more in taxes than the down payment they struggled to come up with.”

www.mortgagebrokernews.ca

10-11_News Analysis-SUBBED.indd 11

11

8/10/2019 3:15:15 AM

UPFRONT

ALTERNATIVE LENDING UPDATE NEWS BRIEFS Canadian Mortgage Inc. recognized for impressive growth

Canadian Mortgages Inc. has landed at number 130 on the 2019 edition of Canadian Business and Maclean’s Growth 500 index. CMI’s inclusion on the list was facilitated by five-year revenue growth of 752%, which the firm attributed to its work with a diverse range of public and private lenders, including banks, insurance companies, investment trusts and many others.

“This great achievement is a testament to our dedication to excellence and reflects the strength of our services and the dedication of our team,” said CMI COO Bryan Jaskolka.

Alt lender Neighbourhood Holdings sets its sights on Halifax

Alternative lender Neighbourhood Holdings sees untapped potential in Nova Scotia’s largest city, where affordability helps to mitigate risk, according to Neighbourhood CEO Taylor Little. “We’re big on diversifying our portfolio, and we don’t just want to restrict ourselves to local centres we’re close to, primarily Vancouver and Toronto,” he said. “Halifax always fits nicely in RBC’s Housing Affordability Measure … As a lender, we like to go to areas where affordability is better because the best thing for us is to get repaid, and people have an easier time repaying when they can afford to live in a place.”

Home Capital to issue residential mortgage-backed securities

Home Capital Group has announced plans to offer residential mortgagebacked securities [RMBS] on a regular basis. After Home Trust successfully raised $425 million with its first RMBS pool of non-prime loans, CFO Brad

Kotush said the lender is mulling the issuance of two RMBS deals a year.

Earlier this year, the Bank of Canada indicated that it is considering boosting the market for RMBS. “By starting this sustainable program of RMBS issuance, we may, with the support of other industry participants, help to establish a private RMBS market in Canada,” Kotush told Bloomberg.

HELOCs outstripping all other loan types in largest markets

HELOC payments are consistently outpacing every other debt type in Toronto and Vancouver, according to figures from Equifax and CMHC. During the first quarter of 2019, the average HELOC payment in Toronto went up by 14.48% on an annual basis, reaching $593 per month. This far outstripped the growth rate seen in traditional mortgage payments, which increased by just 5.42% year-over-year. In Vancouver, HELOC debt servicing rose by 12.29% annually in Q1 2019, settling at $667 per month, compared to mortgage payment growth of just 4.85%. A report by the Financial Consumer Agency of Canada earlier this year found that approximately 27% of Canadians with HELOCs are paying only the interest on their balances.

Matrix Mortgage Global earns spot on Growth 500 list

Alt-lending-focused brokerage Matrix Mortgage Global has ranked at number 179 on Canadian Business and Maclean’s Growth 500 list. Matrix’s five-year revenue growth of 513% helped it secure a spot on the list for the second year in a row. “Attracting and hiring key players at all levels of the organization has been paramount to our success,” said Matrix founder and CEO Shawn Allen. “I am pleased to be mentioned again amongst the top companies in Canada.”

Reverse mortgages on the upswing The two Canadian alt lenders that offer the product have seen remarkable growth in recent years, driven by the aging population In less than four years, the outstanding balance on reverse mortgages in Canada has more than doubled and now sits at $3.12 billion, according to data from the OSFI. The pace of growth compared to other products has been nothing short of inflamed – reverse mortgages increased by 22% annually as of the end of June, compared to 4.8% for the overall market.

Equitable Bank, which entered this market only last year and currently claims around $10.1 million in reverse mortgages, has predicted that the reverse mortgage segment will grow by roughly 25% a year.

“We’ve only been in this market for 18 months, but applications are jumping,” Equitable Group CEO Andrew Moor told The Financial Post. “Canadians are getting older, and there is an opportunity there.”

HomeEquity Bank is the undisputed leader in Canada’s reverse mortgage market, claiming the remaining share of reverse mortgages. In early 2019, the lender reported that its originations in 2018 had grown 26% year over year.

Meanwhile, CMHC reported recently that the nation’s seniors are becoming more active in the housing market. This was especially apparent in Toronto, where the proportion of homeowners aged 65 and over rose by

12 www.mortgagebrokernews.ca

12-13_Alt Update-SUBBED.indd 12

8/10/2019 3:15:51 AM

4.5% between 2006 and 2016. CMHC cited increased labour force participation as the major factor driving the trend.

“With more seniors working, fewer have been reliant on income from government sources compared to a decade ago,” the report said. “Among homeowners, there has been a strong increase in the share of retirees for whom pensions (public and private) were their primary source of income. These trends have translated into faster income growth for seniors.”

“Canadians are getting older, and there is an opportunity there” In 2016, the median income for a household headed by a senior surpassed $59,000, with homeowners driving the income growth, CMHC revealed.

Meanwhile, the share of senior renters has fallen. In 2006, 43.3% of seniors were renters; by 2016, this had declined to 41.9%. CMHC also noticed a shift in the type of housing preferred by senior renters, from purposebuilt apartments and condominiums to “ground-oriented homes” like single-detached houses, semis and townhouses, which the organization attributed to a “declining vacancy rate of rental apartments.”

Q&A

AJAY KAITH President of mortgage originations Oppono Lending Company

Years in the industry 12 Fast fact A private lender focused on the GTA and Golden Horseshoe, Oppono Lending Company currently has around $300 million worth of mortgages under administration

Still going strong How has Oppono Lending Company been doing lately?

We’ve been doing quite well. This year marked our 10th anniversary in funding first and second residential mortgages, and we’re consistent – in fact, almost doubling every single year.

This year, our main focus has been to become more streamlined in our complete process, striving for quicker turnaround times. We’ve hired additional staff and created new departments within our company to accommodate this growth.

Also in 2019, we’ve gained an additional facility – in essence, another channel to raise capital.

What impact did last year’s B-20 changes have on your business?

These changes have been actually a positive to us. Because it’s now tougher for consumers to go to traditional providers like banks and monoline lenders, we’ve seen higher-quality clients come to us. With better-quality clients come fewer defaults, and hence a better total portfolio. We now actually have a stronger portfolio than we’ve ever had in the past 10 years. We can now fund larger mortgages, leading to a healthier split between our first and second mortgages.

We’ve also seen existing clients, now that they have better quality as well as our lower pricing, stay with us longer.

Consumers have actually become more educated with time, which is why they now understand the process and recognize that we’re not the bad guys here.

How do you help brokers assist their clients?

We’ve always used the broker channel since day one; we don’t actually advertise to the general public. It’s important to educate brokers. Not all brokers have an understanding of the benefits of the private space. And now that consumers are more aware of the process, brokers really need to keep up. Brokers will be able to provide the correct solutions for their clients’ needs only if they have the right knowledge.

In this environment, what should industry players look out for?

Compared to the last five years, there are more industry players than ever. Starting a mortgage investment corporation or a private lending company right now is very easy. What industry players should be vigilant of is knowing their brand and knowing the extent to which their brokers can service their clients. You’ve got to be careful of brokers pretending to be lenders or lenders saying that they have this astronomical volume of funds at their disposal, but they actually don’t.

Also, this is an election year, and we could see some market volatility. We’re likely going to see a more conservative approach from the government in any policy changes.

www.mortgagebrokernews.ca

12-13_Alt Update-SUBBED.indd 13

13

8/10/2019 3:15:50 AM

UPFRONT

COMMERCIAL UPDATE

Tech companies fuel commercial dynamism Canada’s tech hot spots are driving intensified construction and greater transaction volumes

economy and the rising co-working industry have powered Canada’s office market … The growing technology sector is taking a bigger slice of the leasing pie – especially in Vancouver, Toronto, Montreal and Ottawa.”

Toronto was Canada’s top contender on the CBRE list at number three, surpassed only by Seattle and the San Francisco Bay Area. Over the last few years, the GTA has been a top choice among international firms expanding

“The labour market remains the major catalyst for Canada’s … thriving commercial real estate sector”

Several major Canadian markets were named on CBRE’s recent list of the 20 top tech talent cities in North America, a development that bodes well for the country’s commercial real estate sector. Toronto, Vancouver, Montreal and Ottawa were among the continent’s best tech industry destinations based on their supply and concentration of tech talent, market growth, quality of higher education, and industry outlook, among other factors.

This development supported the findings of Avison Young’s Mid-Year 2019 Global Office Market Report, which revealed that the

NEWS BRIEFS

knowledge economy is stimulating long-term demand for office space in Canada’s downtown markets. Across Canada, the office market absorbed 9 million square feet between June 2018 and June 2019, outstripping the nearly 6 million square feet absorbed during the preceding 12 months.

“The labour market remains the major catalyst for Canada’s economic expansion and thriving commercial real estate sector,” said Mark Fieder, principal and president of Avison Young Canada. “Urban intensification boosted by immigration, a growing knowledge-based

Industrial and office sectors look strong for 2020

Canada’s industrial sector will be buoyant next year with continued vacancy lows in major markets, PwC predicted in its recent 2020 forecast. Citing a national vacancy rate of 3.1% reported by CBRE in Q2 2019, PwC predicted that warehousing and fulfillment will be the industrial sector’s main drivers. Its report highlighted the office sector as another area of vitality, especially offices located in downtown urban cores, although it noted that industry players are still trying to figure out how to respond to disruption from co-working spaces.

into Canada, and the region is also seeing sustained demand from e-commerce and logistics facilities.

Vancouver, which has drawn major tech industry players like Amazon and Apple, ranked at number 12 on the list, followed at number 13 by Montreal, which has an established reputation for world-class artificial intelligence research, bolstered by an unmatched selection of high-calibre universities, colleges and tech incubators.

Coming in at number 19, Ottawa likewise boasts several post-secondary schools that are renowned for cultivating a pool of top tech talent, and the tech sector is second only to the federal government in terms of office space occupied in downtown Ottawa.

Hotels boost commercial real estate in Montreal

Montreal’s hospitality sector is proving to be a significant boon to its commercial real estate market. Hotels are seeing their best occupancy rates since the early 2000s, according to CBRE. Much of the traffic has been magnetized by multiple hotel development and renovation projects, along with the luxury properties already in the market. CBRE’s David Larone noted that the entry of additional prestigious brands like the Four Seasons will further attract investors, which could create a virtuous cycle of high-end hospitality development.

14 www.mortgagebrokernews.ca

14-15_Commercial update-SUBBED.indd 14

8/10/2019 3:17:24 AM

Q&A

Keith Reading

Market forces spurring multi-family investment

Director of research MORGUARD

Years in the industry 20+ Fast fact Prior to joining Morguard, Reading held executive research positions at RealNet Canada and Colliers International

What factors are contributing to the sustained influx of investment in Canada’s mixed-use, multi-family rentals?

Investment in these properties has reached a record high pace, surpassing the $2 billion mark in the second quarter. Globally, we’re dealing with some economic uncertainty. In terms of what investors look for, when they believe there could be a global recession, they tend to gravitate towards safer and more secure investments. Traditionally, these have been assets like bonds, but the returns on long-term government bonds are not very attractive right now. In contrast, real estate has always been attractive.

History shows that real estate has continued to perform well, even during the last two recessions.

What has made Canadian rental properties especially attractive to these investors?

For the past two decades, rental apartments have been good not only from a defensive standpoint – that is, shielding oneself from the effects of a downturn – but also a great investment, period. A big part of this is that we’ve hardly built any rental apartment buildings for at least the last 20 to 30 years. In fact, over 95% of our apartment building stock in Canada was built between 1960 and 1980. While the inventory remained stable, demand has steadily increased due to population growth and the aging of Canadians – and together, these trends have steadily pushed rents higher. Fully occupied buildings, along with increasing value, comprise a recipe for success.

Retail driving Vancouver’s commercial market

Retail has been the heavy hitter in Vancouver’s commercial market – net absorption from July 2018 to July 2019 was 2.1 million square feet, according to CoStar Group Canada. By the end of that period, vacancy in the Lower Mainland’s retail market had dropped to a historic low of 1.3%.

Demand has particularly intensified among luxury retailers; according to CoStar senior market analyst Jamil Jamani, the region has often served as a proving ground for these brands before they market themselves to the rest of North America.

What has made these apartments seemingly impervious to the US-China trade war?

When you have a trade war and the economy starts to slow down a little, you will eventually see some job losses. But even people who lose their jobs still need homes, and rental apartments are relatively inexpensive.

What is the greatest challenge in this market at the moment?

New supply is absolutely needed. A lot of developers like to build condos, likely because once a condo is sold, they’re done, whereas with rental apartments, investors want long-term income. But that entails a higher risk, because ownership of a rental apartment will be longer-term.

Also, I would say condos are not sustainable. From everything we can see, affordability is a major issue, and there is a tremendous need for affordable housing. Condos require substantial down payments, and their prices have been steadily growing. The population needs much less expensive housing – and rental apartments are ideal for this purpose.

What trends should investors look out for?

I think investors should keep a close eye on what happens with the trade war and its subsequent impacts. Generally, they should be a little more careful in what they bet on to make sure that the investment can weather any economic turbulence that we might see over the next six to 12 months. I think it’s still a great time to invest, just with a little more wariness and defensiveness.

Foreign entities’ commercial investment slows

Foreign investment in Canadian commercial real estate has seen a sharp drop during the first half of 2019. Altus Group reported that between January and June, foreign-backed commercial transactions declined by 70% year-over-year. This was largely due to a lack of significant portfolios for sale, as well as scarcity of top-tier office complexes and rental apartments. In addition, as prices have gone up due to the lack of supply, many investors have chosen to stay on the sidelines, Altus Group’s Raymond Wong told BNN Bloomberg.

E-commerce continues to propel demand

An emerging expectation for same-day delivery among consumers is driving demand for industrial space near major residential and transportation hubs.

According to a recent study published by PwC Canada and the Urban Land Institute, this trend will magnify already strong demand for commercial space in the country’s hottest metropolitan markets.

The report noted that space dedicated solely to pre-delivery storage is becoming even more important, particularly cold storage for food items.

www.mortgagebrokernews.ca

14-15_Commercial update-SUBBED.indd 15

15

8/10/2019 3:17:26 AM

UPFRONT

OPINION

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

In the shadow of giants The common misconception that brokers are primarily a fallback option for borrowers with poor credit keeps many consumers in the thrall of the big banks, writes Emily Kiparisas THE BIGGEST HURDLE in the mortgage world is getting people to view mortgage brokers as a cornerstone to their financial lives when they’ve grown up conditioned to think that the large banks have their best interests in mind.

Recently, I had the best kind of client, the kind who reminds you that being a broker is about providing a service and elevating the client experience. A first-time homebuyer, he wanted to ensure he was building a partnership for wherever his real estate portfolio might grow. His number-one criterion wasn’t rate (within reason, of course). Instead, he was looking for a professional to guide him in the right direction with the right mortgage product.

My client understood the value of having a mortgage broker be a part of this process with him. Although our generation is conditioned to rely on the big banks for financing, he was able to seek a better, more informed way to make the biggest financial jump of his life.

For most people, a home is the most important purchase they’ll ever make. The process can be scary, intimidating and very overwhelming. My role in a home purchase is to be as solution-based as possible and to ensure my clients feel supported.

I have experienced the world of mortgages through different lenses, giving me insight into the harsh realities of the industry as a whole. I started my career at one of the Big Five banks.

While working there, I noticed how limited the options for the client were, how every person

16

had to fit into a very neat box. Moreover, I noticed how much these large corporations failed to recognize the importance of building a relationship with their clients.

During my time at the bank, I also confronted the reality of how underqualified I and my colleagues really were to sell mortgages. The lack of training, education and

process, they view us as a fallback option.

Some assume that corporations with big pockets always have their best interests at heart. Somehow, they fail to recognize that these large corporations see each deal as a transaction, rather than a valued relationship.

We have been raised, for the most part, to seek any financial advice from a big bank, when really the best advice lies outside of the institutions themselves.

Having worked at a bank that was a household name and witnessing the faith people placed in its reputation, even while this venerable institution was putting its interests ahead of theirs, I realized that prioritizing the client meant changing lanes to the broker channel.

That transition has allowed me to provide a level of service that I simply could not before. I have easily 10 times the solutions at my fingertips, and that gives me the ability to say yes far more often.

Every single time I work with a client, I am guided by their best interest. Because brokers still work with the large banks, I often find myself serving as the middleman of reason to

“Some assume that corporations with big pockets always have their best interests at heart. Somehow, they fail to recognize that these large corporations see each deal as a transaction, rather than a valued relationship” guidance was something I was keenly aware of as I steered my clients through the biggest purchase of their lives.

During that time, I realized I needed to transition into something that gave me the autonomy to provide my clients with products and solutions. I wanted to be sure I was taking an educated approach and that I was able to focus on building and maintaining relationships with my clients.

A common misconception that persists even now about our industry is that a client only needs to use a broker if they can’t get approved at their bank. Instead of seeing brokers as an important component of the

ensure that my client is being represented in the best possible manner.

I challenge the misconception of mortgage brokers as secondary to the big banks with each happy client I close. I ensure that I always take the time to explain my role in the process and provide my clients with support. In doing so, I’ve built a network of people who are interested in making sound, confident, professionally advised decisions.

Emily Kiparisas is completing her second year in the broker channel under her new brand, Sterling Lending, and was named one of CMP’s Young Guns in 2018.

www.mortgagebrokernews.ca

16-17_Opinion-SUBBED.indd 16

8/10/2019 3:17:56 AM

Equitable Bank Mortgage Solutions

Prime mortgage solutions

Alternative mortgage solutions

Our EQB Evolution Suite® is designed to

Equitable Bank’s alternative mortgage

provide prime mortgage solutions that

solutions can be customized to fit the

will appeal to borrowers who are salaried,

circumstances of your clients. Whether

salaried with commission, as well as

your client is self-employed, a newcomer

self-employed individuals looking to purchase

to Canada, currently rebuilding their credit,

a residential property.

or an investor, we offer solutions to help them reach their homeownership goals.

▶ CONTACT YOUR RBM TODAY

16-17_Opinion-SUBBED.indd 17

8/10/2019 3:18:00 AM

PEOPLE

INDUSTRY ICON

NO ONE LEFT BEHIND Canada Mortgage & Financial Group owner Ameera Ameerullah is busy running multiple companies, but it’s the causes close to her heart that will forever define her

AMEERA AMEERULLAH is a busy woman.

Not only does she run independent brokerage Canada Mortgage & Financial Group, but she also heads up CMFG Mortgage Investments, CMFG Development, CMFG LP, CMFG Wealth Management and CMFG Trust.

Few people in the Canadian mortgage industry have the expertise Ameerullah has accrued over the last 18 years. However, it’s the countless hours of community service she quietly devotes herself to that define her as a person.

Ameerullah’s most recent act of philanthropy was with Covenant House Toronto, where she’s volunteered for the last 10 years. On a cold winter night earlier this year, Ameerullah and CMFG colleague Linda Gibson spent a night sleeping on cardboard boxes as part of Covenant House’s Champion Sleep Out for CEOs and executives, all of whom were expected to raise a minimum of $2,000. Collectively, the group managed to raise more than $650,000 for the charity.

“We did it specifically for youth who have been victims of sex trafficking and are homeless,” Ameerullah explains. “A lot of these kids don’t open up to others very often because they have been given few, if any, reasons to trust people. We were pleasantly surprised when the staff advised that the youths were so comfortable with us that they wanted to ask

18

financial questions for guidance.”

As a result of its participation in the Sleep Out, CMFG was approached to mentor at-risk youth and provide basic education in areas like establishing credit, budgeting and building a résumé. Many of the participants are between 12 and 18 years of age – a critical juncture in their development.

in the process of working on a CMFG program in collaboration with Dr. Marlyn Morris, founder and managing director of the Ontario College for Development Training. Our plan is to help these youths with scholarships and education while they have a role with the company to gain experience and prepare them for their future.”

Ameerullah also donates her time to caring

“One thing we work on is empowering … youth into finding jobs. Many have been through the criminal justice system – nobody wants to hire them because of their criminal records. We firmly believe they deserve the same opportunities everyone else has” “One thing we work on is empowering some of these youth into finding jobs,” she says. “Many have been through the criminal justice system – nobody wants to hire them because of their criminal records. We firmly believe they deserve the same opportunities everyone else has and are actively involved in supporting them. We’re

for the elderly and orphaned children, educational initiatives for impoverished children, survivors of sexual and physical abuse, people afflicted by addiction and mental illness, and community development. In addition to Covenant House Toronto, CMFG supports multiple organizations focused on these areas.

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 18

8/10/2019 4:12:20 AM

PROFILE Name: Ameera Ameerullah Title: CEO and owner Company: Canada Mortgage & Financial Group Based in: Mississauga, Ontario Years in the industry: 18 Career highlight: “Winning awards and being recognized for humanitarian causes like community development and education in developing countries.”

Career lowlight: “Being away from my business and clients after a severe car accident in 2012.”

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 19

19

8/10/2019 4:12:27 AM

PEOPLE

INDUSTRY ICON

Lifting up women

Filling a gap

Another cause close to Ameerullah’s heart is women’s empowerment. While the industry has become more egalitarian, there was a time not long ago when women only nominally participated in leadership roles. Ameerullah started as a business development manager for Centum Metrocapp, working under Patricia Giankas, whom she credits with providing her first break in the industry.

“At Centum, I was a BDM, originating business and managing a team of 125 agents in the underwriting department,” Ameerullah says.

“In that role, I learned everything from managing an array of personalities, as well as navigating,

Canada Mortgage & Financial Group primarily deals with the self-employed, first-time buyers, real estate investors with multiple assets and borrowers with bruised credit. Its main arm specializes in residential, commercial and private lending, while its brokering division offers institutional, alternative and private mortgages for both Canadians and non-resident borrowers. With access to in-house funding, CMFG can provide affordable and flexible options for consumers.

Given the current regulatory environment, Ameerullah notes that CMFG is filling a void in the market.

“Given the experience I’ve had in this market, the challenges and successes I’ve been party to, I’m taking an active role as a lender in being flexible to help achieve the right decisions for all involved” and providing solutions for, conflicts on the team, while also learning how to negotiate with lenders and helping frustrated clients when deals fell apart. Doing that for eight years prepared me for CMFG.” She adds that “having Patricia back in those days was crucial because the industry then wasn’t as welcoming to women. There were people who would try to take advantage of you because you’re a woman; there was physical and sexual harassment; it was hard to make your voice heard. Patricia taught me how to be resilient and how to stand my ground. Today, women in the industry are leaders and being recognized, especially through institutions like the Canadian Mortgage Awards. Every year, it seems like there are more and more women up on stage. There are more women than ever before who aren’t just brokers and agents; they’re also brokerage owners and brokers of record.”

20

“It’s essential in this market to assist people because prime lenders aren’t doing much to assist them,” she says. “Their lending guidelines are too stringent, but we have to take our blinders off and take a holistic view of the situations to mitigate risk, then proceed diligently. This is where alternative lending comes into play. Given the experience I’ve had in this market, the challenges and successes I’ve been party to, I’m taking an active role as a lender in being flexible to help achieve the right decisions for all involved, from the lender to the investor to the average borrower.”

In addition to helping everyday Canadians become homeowners, Ameerullah also endeavours to build affordable housing through CMFG’s development arm. Busy as she is, Ameerullah has devoted her life to making the world a better place and hopes this will be one of many things for which is remembered.

AMEERULLAH’S AWARDS AND RECOGNITION Winner of Alternative Lending Broker of the Year at the 2017 Canadian Mortgage Awards Winner of Alternative Broker Specialist of the Year (New to Canada) at the 2018 Canadian Mortgage Awards Named a CMP Top Independent Brokerage in 2018 and 2019 Named a CMP Top Brokerage every year since 2016 Finalist for Brokerage of the Year (Fewer Than 25 Employees), Alternative Lending Broker of the Year and Excellence in Philanthropy & Community Service at the 2019 Canadian Mortgage Awards Winner of the 2019 Excellence in Entrepreneurship and Economic Development Award from the JunCtian Community Initiatives Winner of the Excellence in Business and Entrepreneurship Award at the 2019 Waterfront Awards

www.mortgagebrokernews.ca

18-21_Industry Icon-SUBBED.indd 20

8/10/2019 4:12:30 AM

It’s not about credit scores.

It’s about life scores.

Life happens. hen challengescredit like personalscores. or family member’s illness or disability occur, It’s notWabout they can affect your client’s and confidence in their future. Let’s partner to look It’s about life credit scores. beyond the credit score and ask the right questions to understand the story. Together, Life happens. When challenges like personal or family member’s illness or disability occur, we can the your rightclient’s financial solution to help deserving the scores that they canfind affect credit and confidence in theirclients future.focus Let’son partner to look beyond the credit score and ask the right questions to understand the story. Together, matter most. Visit hometrust.ca/lifehappens to learn more. Home Happens Here. we can find the right financial solution to help deserving clients focus on the scores that matter most. Visit hometrust.ca/lifehappens to learn more. Home Happens Here.

18-21_Industry Icon-SUBBED.indd 21

8/10/2019 4:12:34 AM

SPECIAL REPORT

TOP BROKERAGES 2019

BROKERAGES 2019

These 47 brokerages have risen above market challenges to set a new standard for the Canadian mortgage industry

IN THE face of higher interest rates and ongoing B-20 fallout, mortgage industry professionals have had to navigate plenty of obstacles in 2019. Yet brokers from all over the country have found ways to channel their expertise and carve out new paths in the residential, commercial and alternative markets, helping a wide range of buyers navigate the mortgage process.

22

From Vancouver to St. John’s, this year’s Top Brokerages have all made an impact in their own unique ways. Whether they have a handful of brokers or hundreds, whether they’re newcomers to the field or are celebrating multiple decades in business, all 47 of this year’s Top Brokerages have embraced their passions and strengths to raise the bar for the industry in 2019 and beyond.

www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 22

8/10/2019 3:23:03 AM

TOP BROKERAGES INDEX BROKERAGE

NETWORK

AKAL Mortgages

Mortgage Alliance

Bespoke Mortgage Group

PAGE

BROKERAGE

NETWORK

PAGE

24

Modern Mortgage Group

DLC

27

CIMBC

38

Mortgage Approvals Ottawa Team

Mortgage Alliance

34

Blue Pearl Mortgage Group

Independent

38

Mortgage Associates Ontario

CIMBC

34

Brokers for Life

DLC

35

Mortgage Brokers Ottawa

DLC

26

Canada Mortgage & Financial Group

Independent

33

Mortgage Evolution

DLC

28

Canadian Mortgages Inc.

Independent

39

Mortgage Excellence

DLC

33

CanWise Financial

Independent

27

MortgagePal

Verico

32

Clear Trust Mortgages

DLC

27

DLC

26

DLC Estate Mortgages

DLC

31

Neighbourhood Dominion Lending Centres

DurhamMortgage.com

The Mortgage Centre

31

Outline Financial

Verico

30

East Coast Mortgage Brokers

Verico

32

Paragon Mortgage

Verico

26

Elite Lending Corp.

DLC

28

Premiere Mortgage Centre

Verico

25

Entrust Mortgage Services

DLC

28

Regional Mortgage Group

Mortgage Alliance

32

Forest City Funding

DLC

25

Rock Capital Investments

The Mortgage Centre

30

Green Mortgage

DLC

36

Sandhu & Sran Mortgages

DLC

39

Griffin Financial Group

DLC

31

Streetwise Mortgages

Verico

35

Hilltop Financial

DLC

37

Syndicate Lending Corporation

Independent

38

Homeguard Funding

Mortgage Centre Canada

34

The Mortgage Advisors

Verico

28

Integrity Mortgage Solutions

Capital Lending Centre

36

The Mortgage Coach

Capital Lending Centre

35

Jayman Financial

Verico

30

The Mortgage Professionals

Verico

32

Jencor Mortgage Corporation

DLC

26

TMG Airport Drive

TMG The Mortgage Group

39

Loewen Group Mortgages

BrokerONE

31

Valko Financial

DLC

36

Matrix Mortgage Global

Verico

33

White House Mortgages

DLC

33

Mission35 Mortgages

Verico

25

Xeva Mortgage

Verico

30

www.mortgagebrokernews.ca 23

22-39_Top Brokerages 2019-SUBBED.indd 23

8/10/2019 3:23:01 AM

SPECIAL REPORT

TOP BROKERAGES 2019 CRUNCHING THE NUMBERS

30%

BRITISH COLUMBIA

11%

WHERE ARE THE TOP BROKERAGES LOCATED?

964

Average number of transactions per brokerage

39

ALBERTA

53%

Average number of agents per brokerage

ONTARIO

2%

NEWFOUNDLAND

12

Average number of years in business

2%

SASKATCHEWAN

2%

$375 million Average volume funded per brokerage

NOVA SCOTIA

AKAL MORTGAGES Network: Mortgage Alliance Location: Mississauga, ON

Operating under the philosophy that informed agents are successful agents, AKAL Mortgages arms its agents with all the tools they need to provide clients with options that best meet their needs. New agents start with a three-day program that covers business planning, mortgage products and underwriting, then continue with one-on-one training sessions. For clients, AKAL offers customized mortgage products that aren’t available through traditional lending institutions, along with seminars to help them better understand the mortgage process.

“We strongly felt that there was a need for a brokerage that understands clients’ needs and could bridge the gap between the consumers and lending institutions,” says Mohinder Pal Singh, AKAL’s principal broker and owner. “Hence, we opened our doors to the public with the motto that ‘serving clients with tailored-fit financing options’ would remain our focus through our brokering operation.”

24 www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 24

8/10/2019 3:23:04 AM

PREMIERE MORTGAGE CENTRE Network: Verico Location: Halifax, NS

With 130 agents, a network of regional sales leaders, an agent support manager, and technology and marketing support, Premiere Mortgage Centre uses its resources to guide clients in Ontario, Nova Scotia,

FOREST CITY FUNDING Network: DLC Location: London, ON

With 30 years of experience and more than 160 agents specializing in residential, commercial and private mortgages, Forest City Funding has developed strong relationships within its community over the years. In order to address borrowers’ needs, the brokerage has created a variety of exclusive products. Internally, it maintains an atmosphere that promotes teamwork, honesty and integrity, in which agents are treated like family and are given the resources they need to be successful. In 2018, Forest City Funding closed 3,263 transactions worth more than $905 million.

MISSION35 MORTGAGES Network: Verico Location: Hamilton, ON

Founded just two years ago, Mission35 Mortgages continues to make an impact on the national brokerage

New Brunswick, PEI and Newfoundland through the complex mortgage process.

Because all of its brokers and agents are independent, Premiere can work with a variety of lenders to find customized financial solutions for each client’s situation. Supporting its staff is as important to Premiere as supporting its clients, and the company has cultivated an environment in which top sales achievers are celebrated, and ideas and best practices are shared across all agents.

scene through its dedication to educating the next generation of homebuyers about finance and their options when purchasing a house. So far in 2019, the brokerage has doubled its funded volume while bringing on 10 new agents, taking it one step closer to owner Brian Hogben’s goal of assembling a team of 40 agents and funding 1,000 mortgages in 2020.

“Through constant growth and self-development, the team at Mission35 can impact more and more Canadians to have a financially secure life,” Hogben says.

“We have a very unique culture where we put our agents and staff first, ahead of everything. We find that doing this creates the best possible customer experience – when the team feels confident and certain that someone always has their back, they will do everything they can for the client in front of them.”

www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 25

25

8/10/2019 3:23:08 AM

SPECIAL REPORT

TOP BROKERAGES 2019

PARAGON MORTGAGE Network: Verico Location: Vancouver, BC

A full-service brokerage that provides residential and commercial financing, Paragon has serviced thousands of clients in British Columbia and Alberta over the past 14 years. Recently, it joined forces with fintech company Tango Financial, and the new resources

have helped Paragon give agents and broker-owners a competitive advantage while providing the flexibility and entrepreneurial environment necessary to grow business.

Along with lender access at top status levels, Paragon also provides support for experienced brokers who have been left out of the industry’s value proposition in recent years. “We have listened to what brokers are asking for and are seeking to fill those gaps in a cost-effective, royalty-free environment,” the brokerage says.

MORTGAGE BROKERS OTTAWA

JENCOR MORTGAGE CORPORATION

Network: DLC Location: Ottawa, ON

Network: DLC Location: Calgary, AB

Mortgage Brokers Ottawa’s many accolades are a testament to its status in the brokerage world: top franchise for Mortgage Centre Canada for five of the last six years, the Ottawa Consumers Choice Award for mortgage companies for the last nine years, and top-tier status with almost all of the lenders it works with. However, Mortgage Brokers Ottawa is proudest of the fact that its agents, brokers and support staff always put customers first. Brokers and agents work together to promote a collaborative environment where everyone helps one another and shares their experience and expertise, reiterating that it’s all about the client.

For 32 years, Jencor Mortgage Corporation has been dedicated to delivering unbiased mortgage advice and offering the widest choice of options to clients across the country.

Over the past three decades, the brokerage has originated more than $13 billion in mortgages and has generated consistent repeat business, emphasizing its dedication to the client experience, whether they’re buying a first or new home, renewing a mortgage, refinancing, or obtaining a commercial or construction loan.

Additionally, Jencor provides hands-on training and regularly upgrades its technology to fully support its staff.

NEIGHBOURHOOD DOMINION LENDING CENTRES Network: DLC Location: Newmarket, ON

Neighbourhood Dominion Lending Centres regularly receives accolades for its dedication to providing support, education and mentorship. Serving most of Ontario, Neighbourhood has consistently been among DLC’s top two brokerages for volume and number of mortgages funded for the last 10 years, and owner Bill Nugent was inducted into the Canadian Mortgage Hall of Fame in 2018.

The brokerage takes a financial planning approach with its clients, providing a customized mortgage strategy for each transaction that ensures the client’s finances are optimized so they can pay off their mortgage as quickly as possible. For its agents, Neighbourhood offers a formal coaching and mentoring program, a competitive group benefits package, a comprehensive client and referral contest, and full-time IT and database management support.

26 www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 26

8/10/2019 3:23:13 AM

MODERN MORTGAGE GROUP Network: DLC Location: Victoria, BC

Specializing in residential lending, Modern Mortgage Group started in 2010 with one office in Sooke, BC, and just a handful of agents, and has since expanded throughout Vancouver Island with offices in Nanaimo, Courtenay/ Comox and Victoria. In recent years, Modern Mortgage Group has become one of DLC’s top 15 brokerages in Canada and holds the top spot for Vancouver Island. Most of its agents have been with the brokerage since the beginning, which has created a family-like environment.

“Our team can attest to the fact that we have an open-door policy, allowing us to collaborate and support each other,” says founder Jason Zailo. “We are able to offer diverse lending options by thinking outside of the box. Above all, we understand that purchasing a home is a major milestone and decision for our clients. Therefore, as the real estate market and mortgage industry continually change, our agents keep up to date with lending guidelines, which allows us to offer educated recommendations to our clients.”

CLEAR TRUST MORTGAGES Network: DLC Location: Vancouver, BC

Even with a team of almost 150 people spread across Vancouver, Surrey and Toronto, Clear Trust Mortgages maintains a family-like culture.

CANWISE FINANCIAL Network: Independent Location: Toronto, ON

Clients are constantly raving about CanWise Financial’s tailored, hands-on service – to the tune of more than 3,000 five-star Google and Facebook reviews. CanWise agents have access to industry-leading technology and tools and receive a guaranteed amount

Operating under the values of authenticity, transparency, integrity and dependability, the boutique-style brokerage remains focused on clients at all times, whether that means agents help one another close a deal or opt not to close a deal if it’s not the best outcome for a client. This clientcentred mentality helped Clear Trust fund more than $1.6 billion in residential and commercial mortgages in 2018.

of client leads every week – a business model that allows them to focus 90% of their time on clients.

These factors helped CanWise win Mortgage Brokerage of the Year (25 Employees or More) at the Canadian Mortgage Awards in both 2018 and 2019, despite only having been in business for five years. CanWise’s team of 55 agents, brokers and support staff funded a total of $1.5 billion in residential mortgages in the 2018 fiscal year.

www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 27

27

8/10/2019 3:23:21 AM

SPECIAL REPORT

TOP BROKERAGES 2019 ENTRUST MORTGAGE SERVICES Network: DLC Location: Chilliwack, BC

THE MORTGAGE ADVISORS Network: Verico Location: Ottawa, ON

Culture is key at The Mortgage Advisors. The 10-year-old brokerage goes out of its way to create an environment where everyone has the opportunity for success through

ELITE LENDING CORP. Network: DLC Location: Vancouver, BC

Founded in 2016, Elite Lending Corp. describes its service as “a perfect

leading by example, sharing best practices and helping agents become the best they can be. The brokerage offers tools, training and support to help agents succeed, while also making sure they have access to the lenders needed to be competitive.

For clients, Mortgage Advisors brokers offer trustworthy advice by clearly communicating every step of the process and providing the best options so clients can make smart financing decisions.

blend of professionalism and friendship, where agents seek to gain a thorough understanding of clients’ mortgage needs and lifestyles and set the right expectations before recommending the most fitting mortgage.” Rather than merely assisting clients during a transaction, Elite brokers offer support before and after the deal has closed.

For its staff, the brokerage provides an atmosphere of continuous learning and collaboration – brokers assist one another in any way they can, offering expertise or lender connections in order to ensure client satisfaction.

In its three years in business, Elite has been named a CMP Top Brokerage two years in a row and was a finalist for Brokerage of the Year (25 Employees or More) at the 2019 Canadian Mortgage Awards. The brokerage also received the DLC Masters Award in 2016 and 2017 and was named DLC Rookie of the Year in 2016.

Founded more than a decade ago, Entrust Mortgage Services consistently ranks as one of the top 10 DLC brokerages in Canada and has been one of CMP’s Top Brokerages for four years in a row. An extremely loyal group that has developed strong relationships in the industry, the small but experienced Entrust team offers specialized service that places the customer above everything else.

Led by managing broker Steven Brouwer, the brokerage regularly brings in lenders for training and product updates, which allows for a more focused understanding of guidelines and policy updates, which in turn leads to top-tier funding ratios. “The brokers’ ability and knowledge of packaging a mortgage, along with our lender status, allows us to do more deals and match our borrowers’ needs with the appropriate institution,” Brouwer says.

MORTGAGE EVOLUTION Network: DLC Location: Vancouver, BC

For 18 years, Susie Inglis and Denise Devente have led their team of 20-plus agents to service British Columbia’s Lower Mainland in all things residential mortgage. In 2018, Mortgage Evolution funded 680 deals worth more than $344 million.

Inglis and Devente are continually looking for ways to build and deepen the relationships they have both inside and outside the brokerage, and they lead their team to work together to get deals done and establish long-term relationships with lenders.

28 www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 28

8/10/2019 3:23:25 AM

Int

ro

du

cin

Live Oct 8th

g!

DISCOVER in a few simple steps the best products for your client.

Filter Your Results Narrow your results by adding filters based on your client profile. The filters are split into 3 sections, Client, Product and Property. 'Advanced filters' for more options.

Easily View Products Products are displayed as easy to read cards for you to quickly compare and find the perfect match. A list view is also available.

Lender Updated and Verified Rates and product attributes within Discovery are updated and verified by Lenders directly with a date stamp of their last update on every card.

Access a better service with less effort. It’s time for DISCOVERY!

Visit us at newton.ca/discovery or Call 1-877-626-2022 to get connected.

@Velocity.NewtonConnectivitySystems @NewtonC_S @velocity.newton

Get Started Today!

1-877-626-2022 Powered by:

customercare@newton.ca newton.ca

22-39_Top Brokerages 2019-SUBBED.indd 29

8/10/2019 3:23:27 AM

SPECIAL REPORT

TOP BROKERAGES 2019 XEVA MORTGAGE Network: Verico Location: Surrey, BC

Intuitive and perceptive, versatile and inspired, action-oriented, energetic, strong-willed – these are the terms Xeva Mortgage uses to describe what it stands for. Led by partners Dave Lacusta (not pictured in the photo), Casey Archibald, Luisa Hough and Trevor Hansen, Xeva has more than 140 years of combined experience in the banking and real estate market.

Xeva brokers are supported by a full-service underwriting centre, and the brokerage offers two annual seminars and various training sessions to help brokers stay up to date. Xeva’s staff is also focused on serving their community; in 2019, Xeva broker Sabeena Bubber won the CMA for Excellence in Philanthropy & Community Service.

OUTLINE FINANCIAL Network: Verico Location: Toronto, ON

Founded five years ago, Outline Financial was built around a commitment to providing a life-changing client experience. Integrity, accountability and trust are the firm’s calling cards, as is a commitment to providing expert advice to both clients and partners.

The entrepreneurism, problem-

solving skills and optimism displayed

by Outline Financial’s employees – who undergo a rigorous recruitment process and comprehensive onboarding – have made it one of Canada’s fastest-growing mortgage and insurance brokerages. A 24/7 receptionist fulfills the brokerage’s promise to be “always available,” and its focus on education and empowerment allows it to leverage its brokers’ knowledge to help clients and partners make better decisions and get ahead.

JAYMAN FINANCIAL Network: Verico Location: Calgary, AB

Focused on the emotional aspect of transactions and heavily invested in training, Jayman Financial believes that connecting with the customer creates trust and loyalty, and the brokerage’s metrics indicate that this philosophy is paying off. Jayman Financial boasts a 78% conversion ratio of leads from sales centres, and its Avid survey rating for customer service is over 90%.

A Canadian Mortgage Award finalist for Brokerage of the Year (Fewer Than 25 Employees) in 2018 and 2019, Jayman Financial’s five-agent team funded a total of $188 million in 2018 – an average of $37.6 million per broker.

ROCK CAPITAL INVESTMENTS Network: The Mortgage Centre Location: Orangeville, ON

Over the past five years, Rock Capital Investments has increased its overall funded volume from $100 million to $300 million, receiving several accolades in the process, including being named a Top Brokerage by CMP in 2017 and a Top Mortgage Workplace in 2019. Rock Capital has two full-time

support staff members who support its 50-plus agents, all of whom go through a two-part course that covers administrative and lead generation training.

The brokerage also offers support to agents in the form of quarterly sales conferences, monthly brainstorming sessions, quarterly top producer meetings, weekly coaching calls, in-house underwriting and an awards program that acknowledges and rewards hard work. Additionally, veteran brokers are encouraged to create and lead their own team to allow for further growth.

30 www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 30

8/10/2019 3:23:36 AM

DLC ESTATE MORTGAGES Network: DLC Location: Toronto, ON

DURHAMMORTGAGE.COM

Based in the heart of Toronto, DLC Estate Mortgages ensures that clients get a mortgage product that best suits their life circumstances.

Going on its 11th year as a DLC franchise, Estate has become a top-ranked brokerage in Toronto. The service it provides is a result of the entire team working together instead of competing with one another, explains co-founder Jason Georgopoulos.

“What sets us apart from other competing offices is the bond that everyone in our brokerage has,” Georgopoulos says. “We all lift each other up in an otherwise cutthroat industry. We have a level of professionalism that is standard to all of our staff and clients.”

Network: The Mortgage Centre Location: Ajax, ON

With an average of more than $11 million funded per broker in 2018, DurhamMortgage.com has been a leading brokerage in the Durham and Northumberland regions, as well as across the GTA and surrounding areas, for 26 years and counting. The largest brokerage in the Durham Region by annual volume, DurhamMortgage. com’s close-knit, knowledgeable team

of agents, brokers and administrative staff work together to provide clients with the best experience before, during and after securing a mortgage.

Internally, the brokerage’s comprehensive benefits and human resources programs, mentoring program, and transparent work environment all support a dynamic workplace for everyone in the company.

GRIFFIN FINANCIAL GROUP

LOEWEN GROUP MORTGAGES

Network: DLC Location: Peterborough, ON

Network: BrokerONE Location: Burlington, ON

Despite its small size (four brokers and four support staff), Griffin Financial Group has made a big impact in the mortgage industry – in 2018, it funded more than $162 million.

The brokerage provides ample one-on-one training and service to all of its agents to make sure they’re equipped to offer the most comprehensive and competitive home financing solutions possible.

Winners of the 2019 CMA for Brokerage of the Year (Fewer Than 25 Employees), Loewen Group is a technology-forward brokerage that has been serving Ontario for 12 years. Owner James Loewen says the brokerage “strives to differentiate and set the standard of service when obtaining a mortgage. We are a client- and team-based brokerage with a team that works together to ensure everyone has the best experience.”

Part of that experience includes the development of the brokerage’s FINMO portal, which puts calculators, client applications, and automated document request generation and submission in one place. Loewen Group also offers branded qualifying calculators for Realtor partners and a free client app, and recently signed a deal with digital insurance provider NUERA to offer significant discounts and best-inpractice coverage.

www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 31

31

8/10/2019 3:23:40 AM

SPECIAL REPORT

TOP BROKERAGES 2019 REGIONAL MORTGAGE GROUP Network: Mortgage Alliance Location: Red Deer, AB

EAST COAST MORTGAGE BROKERS Network: Verico Location: St. John’s, NL

Servicing Newfoundland and Labrador, East Coast Mortgage Brokers’ motto of “treating clients as friends” has resonated throughout its community, earning the brokerage a considerable amount of new business via referrals and a reputation for ensuring clients receive the right mortgage solution.

THE MORTGAGE PROFESSIONALS Network: Verico Location: Kingston, ON

The Mortgage Professionals leaves no doubt as to what its top priority is: “Our culture is to put the client first. Always.”

The message is displayed multiple

Since its founding nine years ago, East Coast Mortgage Brokers has become the largest brokerage in the province.

Several of the company’s brokers have been recognized as leaders in their field, including being named to CMP’s Young Guns list, Canada’s Top 40 Under 40 and the Rotary Club of St. John’s Northwest’s Emerging Young Professionals. The brokerage is also highly involved with its community and gives back through local organizations such as the Rotary Club of St. John’s Northwest, Janeway Children’s Hospital, Daffodil Place, Ronald McDonald House and the Gathering Place.

times across the brokerage’s website and is further emphasized by its numerous five-star reviews from past clients. The brokerage likewise prioritizes its staff, leading to an average retention rate of 10 years; five brokers have been at The Mortgage Professionals for 15 or more years, while another five have been there for more than 25 years.

The brokerage continues to innovate and grow through new training, marketing and technology programs, along with a recent partnership with an insurance company. Outside of the office, the team remains active in its local community.

Over the past 25 years, the brokerage has raised more than $120,000 for charity and community groups in Kingston, including participating in Breast Cancer Action Kingston’s annual Walk for Awareness.

Thanks to its affiliation with a wide array of financial institutions and its relationships with more than 30 lenders, Regional Mortgage Group is all about making the process of buying a house as hassle-free for its clients as possible. Brokers are trained to provide hands-on support and guidance through every deal and are kept up to date with industry trends and products through weekly sales meetings that include presentations by lenders and industry partners.

To further ensure its brokers’ knowledge, Regional Mortgage Group is closely aligned with both the Alberta Mortgage Brokers Association and the Real Estate Council of Alberta and provides its team with the best technology available.

MORTGAGEPAL Network: Verico Location: Victoria, BC

Serving clients across Canada, MortgagePal operates almost exclusively online. Everything happens on the client’s terms, a strategy that has led the brokerage to garner some of the highest online ratings in the industry. MortgagePal generates roughly 30% of its business through referrals and repeat clients and prides itself on perfecting its online lead-generation strategies, which connect its brokers with thousands of potential new clients each year.

Access to this pipeline of leads, along with support from an underwriting service, allows MortgagePal agents to outperform industry averages.

The brokerage is on track to fund $270 million in volume this year.

32 www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 32

8/10/2019 3:23:46 AM

WHITE HOUSE MORTGAGES

CANADA MORTGAGE & FINANCIAL GROUP

Network: DLC Location: Vernon, BC

Network: Independent Location: Mississauga, ON

White House Mortgages currently has six brokers who are celebrating 10 years with the brokerage; next year, one more will join the club.

“We are proud to be a team that truly helps each other and feels like we are family, which in turn is reflective to our clients,” says founder Deb White. “When clients come to our office, they feel like they’re home.”

White has been in the mortgage business since 1999 and established White House Mortgages in 2005.

Since then, the brokerage has grown to 24 brokers and seven locations across British Columbia. White House Mortgages recorded 28% year-over-year growth in 2018, funding more than $186 million during the year, and is making its third appearance on CMP’s Top Brokerages list.

With a reputation for helping bridge a gap in the mortgage industry with alternative products and programs, Canada Mortgage and Financial Group is an independent brokerage led by founder and CEO Ameera Ameerullah. To date, CMFG has maintained a blemish-free record with lenders, investors and regulators, and was a finalist at the 2019 Canadian Mortgage Awards for Brokerage of the Year (Fewer Than 25 Employees), Alternative Lending Broker of the Year and Excellence in Philanthropy & Community Service.

The CMFG team provides services in a wide array of mortgage specialties, primarily focusing on residential and

commercial real estate, land acquisitions, construction loans and mezzanine finance.

Known for its quick response times, ethical conduct and transparency, CMFG maintains a high-ratio closing volume and actively advocates for the brokerage community on regulatory changes and the implementation of products for borrowers.

In addition to the brokerage, the company also manages its own fund, CMFG LP, giving clients access to private capital at a lower cost. Ameerullah is also the founder of the CMFG Women Investing Program for women-owned startups and existing businesses.

MORTGAGE EXCELLENCE Network: DLC Location: Lethbridge, AB

Since it was founded 12 years ago, Mortgage Excellence has worked diligently to create an inclusive and encouraging environment that invites all team members to contribute innovative ideas.

The DLC-affiliated brokerage is constantly changing and adapting to new industry technology and strives to use these tools as efficiently and effectively as possible to streamline processes and foster a supportive team dynamic. Making its third appearance in a row on CMP’s Top Brokerages list, Mortgage Excellence’s 19 brokers funded more than $200 million in 2018.

MATRIX MORTGAGE GLOBAL Network: Verico Location: Toronto, ON

In 11 years in business, Matrix Mortgage Global has funded more than $1 billion worth of mortgages. The brokerage focuses on private and alternative lending and investing, specifically solution-based lending for individuals excluded by bank guidelines. With five offices in the Distillery District,

Scarborough, Newmarket, Edmonton and Vancouver, Matrix capitalizes on efficient internal communication and collaborative team efforts and is among the top lead-generating brokerages in the nation.

Matrix has simplified the sales process by empowering its brokers to focus primarily on sales while its back-office support team manages customer support, document collection, lender submissions and loan fulfillment.

This strategy has enabled Matrix to boost its conversion ratios to over 35% of all leads and over 70% of approvals.

www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 33

33

8/10/2019 3:23:52 AM

SPECIAL REPORT

TOP BROKERAGES 2019

MORTGAGE ASSOCIATES ONTARIO Network: CIMBC Location: Woodbridge, ON

Mortgage Associates Ontario was founded on its owners’ desire to create a home for mortgage agents and brokers, grow with lenders, and earn recognition from industry peers. In its six years in operation, the brokerage has accomplished all of the above. It was named a CMP Top Independent Brokerage in 2018, thanks in part to the dedicated training efforts and resources it provides to new agents, and it hasn’t stopped innovating or growing from day one.

“For mortgage agents new to the industry, we recognize their need to get hands-on experience in processing mortgage transactions and interacting with clients, hence why we provide leads and back-end support,” says president Amir Kay. “For clients, we pay close and detailed attention to their needs and what may put them in a better financial situation for years to come.”

While Mortgage Associates Ontario provides a wide array of products and mortgage solutions, it primarily caters to homeowners with bruised credit who are looking to improve their financial situation by using their home equity to consolidate debt and improve their credit score.

MORTGAGE APPROVALS OTTAWA TEAM Network: Mortgage Alliance Location: Ottawa, ON

Mortgage Approvals Ottawa Team is a group of “hard-working, experienced and dedicated agents who take pride in their community involvement and personal and team goal-crushing achievement,” says Adil Rahman, who co-founded the brokerage with partners Jason Anbara, Rami El-Beaino and Brock Frost. “We are not the biggest shop in town, but we aim at being one of the best in the area.”

Since it was formed two years ago, Mortgage Approvals Ottawa Team has

HOMEGUARD FUNDING Network: Mortgage Centre Canada Location: Newmarket, ON

A family-run business that’s been operating out of Newmarket since 1983, Homeguard Funding specializes in residential, rural and construction financing, as well as direct private

expanded from six agents to 26 and doubled its funded volume to $150 million across 550 transactions for 2018. (The team is on track to finish with 600 transactions for 2019).

The leaders of Mortgage Approvals Ottawa Team all have an eye toward the future, making sure their operation is completely automated and implementing an accountability system that tracks agents’ attendance at training programs.

The brokerage’s leaders are always available to provide assistance and mentorship, including “quarterly reviews, shadowing, business development plan building and so much more for agents,” Rahman says. “We love conducting live webinars and remote assistance for our agents [and] have a great winning formula to help them succeed.”

placements. The company’s 12 agents are backed by an underwriting department and a mentoring broker to provide assistance with marketing, database management and deal placement. The brokerage strives to stay on top of technology and build systems that allow its agents to compete efficiently and effectively. In 2018, Homeguard Funding did nearly $134 million in volume, and it continues to grow through referrals from clients, partners, friends and family.

34 www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 34

8/10/2019 3:23:56 AM

STREETWISE MORTGAGES Network: Verico Location: Vaughan, ON

BROKERS FOR LIFE Network: DLC Location: Edmonton, AB

A back-to-back member of the Top Brokerages list, Brokers for Life’s 21-person team covers a lot of ground, from first-time home purchases to private lending, investment properties and construction loans. Between January 2016 and December 2018, the company grew by 33% in volume and is up another 4.5% so far this year – not an easy feat, given that Alberta’s economy has been flat for the last five years.

“I think what sets Brokers for Life apart from the competition is our internal culture – some of us have worked together for almost a decade, and we truly have a culture of helping one another,” says owner Len Lane.

“New agents are sometimes amazed to learn that they are not in this alone, as everyone is willing to help them.”

Specializing in working with real estate investors, Streetwise Mortgages is sought out by individuals looking for customized advice and tailored strategies. This includes everything from structuring financing for multiple properties, to how legal and accounting

structures can affect financing, to advising on situations involving a separation or divorce. The Streetwise team has more than 40 years of combined finance experience, which it uses to offer unbiased short- and long-term advice. The team has been recognized repeatedly for its work: Streetwise Mortgages won back-to-back awards for Outstanding Customer Service by an Individual Office at the Canadian Mortgage Awards, and owner Dalia Barsoum has been named to CMP’s Top 75 Brokers list and Hot List.

THE MORTGAGE COACH Network: Capital Lending Centre Location: Toronto, ON

Only in business since the beginning of 2019, The Mortgage Coach has swiftly and steadily grown its team to 26 agents and has already funded $160 million.

The company is extremely agentfocused, with weekly ‘Monday Mindset’ calls, formal training, accountability groups and an ongoing messenger chat for immediate deal help.

The Mortgage Coach’s leaders are dedicated to helping agents grow their business and improve their quality of life by providing them with cutting-edge technology and CRM systems, as well

as an underwriting department so they can focus on building relationships with clients and referral partners.

www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 35

35

8/10/2019 3:24:03 AM

SPECIAL REPORT

TOP BROKERAGES 2019

GREEN MORTGAGE Network: DLC Location: Vancouver, BC

Founded by Kyle Green with a mission to educate people on using real estate to create wealth, Green Mortgage specializes in helping investor clients find creative solutions for mortgages they otherwise wouldn’t be able to secure.

“Nearly every single investor I have ever spoken to or worked with has had to use more than one bank to achieve their real estate goals,” Green says.

“It’s very rare that your bank has both

INTEGRITY MORTGAGE SOLUTIONS Network: Capital Lending Centre Location: Thornhill, ON

Founded less than two years ago, Integrity Mortgage Solutions has already

the best product and the best rate for you.

And product for rental properties is really thin right now – it’s harder than ever to get financing for rentals, and if you don’t explore what other lenders have to offer, you could be missing the boat.”

Using a variety of specialty products from lenders and leveraging team members’ fluency in Farsi, Hindi, Punjabi and Tagalog, Green Mortgage is constantly looking to grow and improve. The team has been among DLC’s top 20 brokers for residential volume for the past two years and achieved DLC Hall of Fame status this year. Green and his brokerage have also been featured among CMP’s Top 75 Brokers, Hot List and Young Guns.

made significant strides, both in loans funded (more than $101 million in 2018) and in staking out a place in the national mortgage scene by winning CMBA Ontario’s 2019 Exceptional Leadership Award.

“Our achievements are a culmination of providing an environment that nurtures development and encourages growth,” says principal broker Asif Kasim. “We work together on a long-term vision of where our team wants to go and come up with a plan of how to get there.”

This philosophy is rooted in honest communication, transparency and a commitment to educating team members and clients, all with an eye toward long-term success. “Doing business is not about completing a transaction just for the sake of getting it done,” Kasim says. “It’s about the relationships you have with people that are based in honesty and real care.”

VALKO FINANCIAL Network: DLC Location: Kitchener, ON

In just over a year, Valko Financial has made its mark on the Canadian mortgage scene, landing among DLC’s top 20 brokerages for 2018.

Led by industry veteran Tracy Valko, the brokerage’s 18 agents are armed with educational tools and systems to increase their knowledge and performance, enabling them to offer clients exceptional service.

Valko Financial also provides a coaching platform for agents to help them with business development and sales strategies, along with a centralized underwriting system to help with deal flow and file closings.

36 www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 36

8/10/2019 3:24:06 AM

HILLTOP FINANCIAL Network: Location: Langley, BC

Hilltop Financial is a tight-knit boutique brokerage of 13 agents and two support staff, all of whom are dedicated to fostering personal connections with clients and staying involved in their community. In 2018, Hilltop Financial funded more than $117 million in residential and commercial mortgages.

With more than 21 years of industry experience, owner Jason Humeniuk uses his in-depth knowledge of recent government changes and awareness of lenders’ fine print to help ensure that the mortgage clients get is the mortgage they truly want.

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

www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 37

37

8/10/2019 3:24:10 AM

SPECIAL REPORT

TOP BROKERAGES 2019 BLUE PEARL MORTGAGE GROUP Network: Independent Location: Surrey, BC

SYNDICATE LENDING CORPORATION Network: Independent Location: Vancouver, BC

Founded with a mission to be innovative in an ever-changing market and to focus on talent, people and execution, Blue Pearl Mortgage Group continues to achieve these goals year after year by offering innovative training and mentorship programs, actively seeking out young brokers who are passionate to learn, leveraging technology and digital media, and providing brokers with enrichment and motivational courses that challenge them to think differently and embrace fresh perspectives.

Serving British Columbia, Alberta, Ontario and Saskatchewan, Blue Pearl pairs its 40-plus years of combined industry experience with forward-thinking digital technology to drive leads and tailor its marketing efforts by region.

“Our commitment to building relationships with our clients with integrity and transparency is focused around our core values of being passionate, determined, creative, remarkable, honest, open and positive,” says president Nitesh Prakash. “When we created these values, we were mindful of the fact that we wanted to deliver memorable, personal experiences to our clients. Being a growing organization, we realized that our potential for growth lies within providing exceptional services to the people who matter the most – our clients.”

In just three years, Syndicate Lending Corporation has established itself as a go-to brokerage for seasoned real estate developers, thanks to its expertise in syndicating commercial loans for development projects. Its brokers are experienced lenders from various banks who have deep ties with several commercial lending institutions in the community. So far in 2019, Syndicate Lending Corporation has surpassed $100 million in commercial and residential loans and has brokered two syndication loan arrangements in excess of $200 million.

“Our brokerage envisages the new era of boutique brokerage houses that strive to deliver world-class service with an ISO-equivalent process that can let customers rest assured that their mortgage applications are in the best hands,” says founder Inam Qureshi.

The brokerage has plans in place for further growth in 2020, including the opening of a new White Rock office that will serve the Surrey, Delta and Fraser Valley areas of BC.

BESPOKE MORTGAGE GROUP Network: CIMBC Location: Etobicoke, ON

Attention to detail, a commitment to mentoring agents and personalized service for clients – these are the attributes Bespoke Mortgage Group founders Simon Lyn and Ryan Dennahower highlight when explaining what makes their brokerage unique. “Put simply, we provide a

bespoke experience for all involved in the search for the right financing solution,” the duo says.

In business for four years now, Bespoke has developed a reputation for finding its clients solutions based on what they need, not just what they want, as well as making them feel comfortable, confident and cared for. The brokerage offers substantial mentoring and coaching to support constant improvement and allow agents to focus their energies on the skills that are critical for their success. In 2018, Bespoke funded $110 million worth of mortgages.

38 www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 38

8/10/2019 3:24:15 AM

SANDHU & SRAN MORTGAGES Network: DLC Location: Abbotsford, BC

When the agents at Sandhu & Sran Mortgages say they’re available to clients every hour of every day of the year, they’re not kidding. “Clients can call us any time for their needs,” says president Vikramjit Sran. “We are here beyond the term of your mortgage. We stay in contact with you and ensure we’re always available. If you have any questions about your mortgage, big or small, we’re just a call or email away.”

To best achieve this promise to its customers, Sandhu & Sran Mortgages keeps its team of 22 agents up to date on the latest news and trends in the mortgage industry through learning opportunities like MPC and MBABC education courses.

“My team and I have built Sandhu & Sran Mortgages through hard work and tenacity, which has resulted in a mortgage service provider that believes in providing exceptional value and delivering outstanding customer service,” Sran says. “We pride ourselves on offering knowledgeable advice and being committed to fulfilling the needs of our customers.”

TMG AIRPORT DRIVE Network: TMG The Mortgage Group Location: Saskatoon, SK

The first paperless office in Saskatoon, TMG Airport Drive continues to implement programs and tools to help make every mortgage transaction smooth and painless for every client.

Whether it’s technology upgrades or new ways to handle certain situations, if it helps better the client experience, the brokerage will find a way to implement it into its daily procedures.

The four-year-old brokerage, which was founded by Riel Syrenne four years ago, is making its third appearance on the CMP Top Brokerages list and funded more than $113 million in 2018.

CANADIAN MORTGAGES INC. Network: Independent Location: Toronto, ON

As a multi-jurisdictional private lender, Canadian Mortgages Inc. is able to look at first mortgages, second mortgages or renovation financing and offer rates in line with risk. CMI also has a dedicated underwriting department that provides fast approvals and quick

closing and prioritizes quality of service, integrity, honesty and team support in order to meet clients’ needs.

Operating under the motto that “your success is our success, and together we will build it,” CMI’s brokers have amassed several individual and collective recognitions, including spots on CMP’s Top 75 Brokers and Top Brokerages lists, as well as nominations for Lender Underwriter of the Year, Brokerage of the Year and Mortgage Industry Employer of Choice at the 2019 Canadian Mortgage Awards.

www.mortgagebrokernews.ca

22-39_Top Brokerages 2019-SUBBED.indd 39

39

8/10/2019 3:24:24 AM

PEOPLE

BROKER INSIGHT

Quality over quantity Michelle Campbell talks to CMP about the importance of ensuring a proper foundation for every member of her team

CMP: How did you first get into the mortgage industry?

Michelle Campbell: I wasn’t actually looking to get into the mortgage industry; it just fell in my lap. About 20 years ago, I used to work for Re/Max. I started working there for an in-house mortgage broker, and she needed some help and ended up bringing me in part-time and then full-time. From there, I worked for two lenders in downtown Toronto, and then I switched over to the broker side.

CMP: You opened your own brokerage in 2017. How has that been?

MC: The first year was a little challenging because I didn’t realize all the processes that were required to be in place. I have a team of eight individuals. For me, it’s more about quality over quantity.

Once I put some things in place, like time blocking, [conference calls] weren’t eating up all my time because I do all my own business as well. It took me about nine months to figure that out. This year has been so good – and last year was as well. When you’re organized, it’s a little bit easier to get through the tasks that you have to do.

CMP: If you were starting today, is there anything you’d do differently?

MC: Yes – I would have talked to more broker-

40

owners to find out what the process should have been. But I think it was good for me to learn as I went along because I’m a more hands-on type of person. I was happy to go through it and learn by mistakes.

CMP: What sort of people do you look to employ?

MC: It just blows my mind that some brokerowners have a ton of agents but then only have a small percentage who do business. For me, I’ve always wanted to be a teacher, so if I’m going to bring anybody in, I have to be able to give them the full support, training and everything that they need; otherwise, there’s no point in being a broker-owner.

That’s how I look at it, so we have a lot of stuff in place for the team.

Most of the people who apply or reach out to me are referred by somebody else from

the team, so it’s word of mouth. They send me their résumé, and we meet two or three times to make sure that they fit not just with my values, but that they also get along with the rest of the team, which has a very family culture.

CMP: You’ve been named a Woman of Influence by CMP. What does that mean to you?

MC: When I looked at the list of all the women who were named there, I honestly didn’t know I was on the list. I was a little overwhelmed after I saw I was on the list.

There are tons of women in this industry who do so much and are genuinely trying to lift others up, trying to help and mentor them – those are the people I have aligned myself with.

It’s important for women to be recog-

CAMPBELL’S ADVICE TO BROKERS LOOKING TO GO OUT ON THEIR OWN “Find a mentor, have an accountability partner and align yourself with them. I think it’s a good idea to find a couple of successful people whose success is different from everyone and who do something different from everyone – it could be someone whom you see doing well, but who has good a work-life balance.

Reach out to them, because people in this industry are very helpful. You may not think they are, but they’re willing to help.”

www.mortgagebrokernews.ca

40-41_Broker Insight-SUBBED.indd 40

8/10/2019 3:25:08 AM

FAST FACTS: MICHELLE CAMPBELL

COMPANY Mortgage District

POSITION Principal mortgage broker

LOCATION Mississauga, Ontario

YEARS IN THE INDUSTRY 19

“If I’m going to bring anybody in, I have to be able to give them the full support, training and everything that they need; otherwise, there’s no point in being a broker-owner” nized in this industry, especially because it has been a man’s industry for a long time.

Don’t get me wrong: There are tons of wonderful men in this industry who support women. I love this industry to be inclusive of everyone – men and women – but I’m very proud of how far women have come in this industry.

ACCOLADES Was named to CMP ’s 2018 Hot List and 2017 Women of Influence list and was a finalist for Best Newcomer Broker Owner at the Mortgage Awards of Excellence in 2018

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

MC: I love to travel. I’m already planning my next trip; it’s going to be next spring. We’re going to do a little Caribbean trip this time, but usually I like to travel twice a year, either to Vancouver or to the States. I love to meet other people and feel their culture.

INDUSTRY INVOLVEMENT Has been a member of MPC’s Ontario chapter since 2008, helping to organize training and education seminars across the GTA

www.mortgagebrokernews.ca

40-41_Broker Insight-SUBBED.indd 41

41

8/10/2019 3:25:14 AM

SPECIAL PROMOTIONAL FEATURE

BROKER NETWORKS

Inside the monster CMP sat down with the leaders of MonsterMortgage.ca to find out why the independent brokerage decided to join forces with Centum

AN INDEPENDENT brokerage that has served more than 100,000 Canadians over 22 years, MonsterMortgage.ca recently decided to become part of Centum Financial Group.

MonsterMortgage.ca was attracting a steady stream of new clients with its value proposition. So why partner with Centum?

“One of the things that attracted us to Centum was our shared values – values focused on trust, relationships and world-class customer experience,” says Vince Gaetano, principal broker of MonsterMortgage.ca. “The leadership behind Centum – the Charlwood Pacific Group and the Charlwood family – has a reputation for instilling a philosophy of doing what’s right for the customer in all its businesses. This has allowed Centum to set the bar higher when it comes to helping mortgage agents reach their full potential.”

According to MonsterMortgage.ca president Don Bayer, the partnership is not about an infusion of money or a desire to squeeze more basis points from lenders; rather, it’s all about leveraging each company’s strengths to improve the client journey.

“People change and markets change – the world around us is in a constant state of change,” Bayer says. “For a partnership to be successful, it requires good people who share a core set of values. While Centum may not be seen as the largest or most well-known aggregator out there, that was not important

42

to us. What was is their reputation, commitment to innovation and their discipline to have the right business systems in place to support agents. Ultimately, this partnership will help our mortgage agents close more deals by allowing them to do what they do best and serve customers better every day.”

Gaetano was also struck by Centum’s focus on quality when it comes to selecting brokerages for its network. “The whole focus on quality, as opposed to quantity, was very loud and clear in speaking with Centum,”

tion programs instead of spending time and resources on building out its technology.

“We use a variety of marketing and sales tools that enable us to continuously improve upon the client’s journey when getting a mortgage, from marketing automation and relationship management to data management, analytics, referral programs and more,” Ametrano says. “What Centum has done is provide us with the technology and expertise so we can bridge these tools with other platforms, including Filgoix. This

“Good mortgage agents simply want to help people live a better life, and the Centum Group wants to help us do that” Vince Gaetano, MonsterMortgage.ca he says. “I think they’re very selective, and they want to align themselves with likeminded firms that have a commitment to the customer. Good mortgage agents simply want to help people live a better life, and the Centum Group wants to help us do that. It was quite refreshing to see.”

With Centum’s help, says vice-president Nick Ametrano, MonsterMortgage.ca is now able to expedite its growth by focusing on expanding its brand and lead genera-

provides us with far better data to drive more business to our agents and makes everything along the customer journey run much smoother, from customer engagement to processing deals to servicing clients once their mortgage has funded.”

MonsterMortgage.ca views data as “the new oil,” which means client ownership and data protection are key to the operation of its business. Thus, the brokerage’s leaders were attracted by Centum’s hands-off policy when

www.mortgagebrokernews.ca

42-43_Centum-SUBBED.indd 42

8/10/2019 3:25:48 AM

it comes to its member brokers’ databases.

“Today’s consumer expects brands to personalize their communications when engaging them, and you can’t do that if they don’t hand over their information,” Ametrano says. “All consumers engage with brands online, and this is no different when getting a mortgage. In order for them to do that, consumers have to trust that the brokerage will do everything legally possible to not only protect that data, but to use it only for improving the customer’s own journey in securing a mortgage.”

“That client experience has to be of utmost importance for everyone involved in

the mortgage process,” Gaetano adds. “For that to happen, we have to make sure there is mutual respect for that client data amongst our lending partners and service providers so we can ensure that trust levels are maintained and that client experience is delivered at an optimal level. We’re very protective of that. And I think when people see this, they respect it because they know that if the client wins, then we all do.”

Another dimension of the partnership is MonsterMortgage.ca’s mortgage investment corporation, Cypress Point, which will now be available across the Centum network. Launched in 2016, Cypress’

high-risk lending solutions have previously only been available to agents at MonsterMortgage.ca.

“Cypress has been successful because of its aggressive scope, flexibility and quick turnaround on commitments and closings,” Bayer says, adding that the MIC has also benefited from MonsterMortgage.ca’s 20-plus years of experience in mortgage origination. “As all lenders know, you are only as good as the quality of the agents who submit deals to you. Extending this offering to Centum agents looking to do deals in Toronto and the Golden Horseshoe is another win-win for this partnership.”

www.mortgagebrokernews.ca

42-43_Centum-SUBBED.indd 43

43

8/10/2019 3:25:53 AM

FEATURES

LENDERS RESPOND

BROKERS ON LENDERS: LENDERS RESPOND Last month’s Brokers on Lenders survey revealed what Canadian brokers really think about the lenders they work with. This month, CMP gives lenders a chance to respond to the results

CMP ’S ANNUAL Brokers on Lenders survey has been a staple of this magazine’s coverage for the past 13 years and is one of our most popular features. This year, we decided to open up the discussion and invited four lenders to address the feedback brokers provided in this year’s survey.

Brokers were asked to rate up to six of their lender partners a scale of 1 (very poor) to 5 (very good) in 10 key categories, including

44

turnaround time, interest rates, product range and more. The findings were revelatory – brokers largely praised commission structures and the support they receive from BDMs and underwriters, but had some serious concerns about lenders’ turnaround times and tech offerings. Still, several lenders received high marks in a number of categories. Read on to find out how those lenders addressed brokers’ most pressing feedback.

www.mortgagebrokernews.ca

44-51_Responses-SUBBED.indd 44

8/10/2019 4:14:57 AM

SATISFACTION WITH CREDIT POLICY Although brokers earned the same score in this category in 2019 as they did in 2018, credit policy came up over and over again when brokers were asked about the biggest challenge they’d faced with lenders in the past 12 months. Brokers’ top complaints centred around a lack of flexibility on the part of lenders.

JENNIFER TSALTAS

DARREN CAMPBELL

Vice-president, national underwriting RMG Mortgages

Senior manager, mortgage origination Magenta Capital Corporation

“The industry has been faced with a lot of change, which has created some challenges for all monoline lenders.

However, we have created a consistent credit policy that is clear to the marketplace and has allowed us to focus on the products and programs in which we are most competitive.”

“Like we do with interest rates, our senior leadership team meets regularly to review our suite of products and credit matrices to ensure we’re meeting the needs of borrowers. We’re upfront and transparent with our broker partners when it comes to credit policies, and on top of that, our underwriters are empowered to adjudicate files using a common-sense approach.”

WHAT BROKERS HAD TO SAY ABOUT CREDIT POLICY “Lenders should lower the qualifying rate – stop relying too heavily on the new credit scores.”

PRODUCT RANGE While a few lenders impressed brokers with the wide range of products they offer, several brokers identified product range as an area where lenders could stand to improve. At the top of their wish list were innovative solutions that address current challenges in the market, but they also wanted to see greater consistency and flexibility from lenders in this area.

DAN PAULS

JILL PAISH

Regional sales manager, Southwestern Ontario Magenta Capital Corporation

EVP, sales and marketing Merix Financial

“Magenta has intentionally developed a diverse set of products that are available across Eastern and Southwestern Ontario, including most small centres. We offer several niche products and can accommodate every type of borrower – including near-bank, self-employed, new to Canada, foreign income, student property investors and others – which makes us a one-stop shop for brokers working in or branching into the alternative space.”

“We launched the Interest-Only Flex last fall, we launched a very competitive collateral switch program, and we made many policy updates to make doing deals easier. We hold focus groups with our top brokers, asking them for their feedback on products – and we listen! We work very hard with our investors to address the needs of our brokers to help more Canadians with the dream of homeownership.”

WHAT BROKERS HAD TO SAY ABOUT PRODUCT RANGE

“Underwriters have no authority to waive policy.”

“I see product restraint in terms of lack of flexibility to the reality of unstable employment, BFS, multiple jobs or contract work.”

“They need more documents, and the policies are dragging service levels down.”

“The no-frills product is very restrictive, and they do not work well with existing clients.”

“Out of touch with their credit requirements, especially when it comes to present clients.”

“I would like to see expanded product offerings like HELOC and rental offsets.”

www.mortgagebrokernews.ca

44-51_Responses-SUBBED.indd 45

45

8/10/2019 4:15:09 AM

FEATURES

LENDERS RESPOND INTEREST RATES Interest rates was one of only two categories where lenders’ average score increased from 2018 to 2019. However, despite being pleased with the rates lenders are currently offering, brokers did express a desire for greater transparency and communication around rates.

WHAT BROKERS HAD TO SAY ABOUT INTEREST RATES JILL PAISH

BRUNO VALKO

DARREN CAMPBELL

EVP, sales and marketing Merix Financial

Vice-president, national sales RMG Mortgages

Senior manager, mortgage origination Magenta Capital Corporation

“Merix hasn’t specifically targeted interest rates as an area in which we want to excel as our goal. That is a slippery slope and not good for long-term business. Rather, our goal is to always offer fair and competitive interest rates so that Merix is always a reliable option for brokers.

We have also targeted explaining interest rates in a clear and concise manner and providing the broker resources to explain things to their clients, such as why an insured interest rate can be different than an uninsured rate.”

“Interest rates are readily available to most, if not all, consumers. Being competitive and offering a selection of products from which to choose is critical to our success. RMG Mortgages, as a division of MCAP, has access to a multitude of investors.

This access and liquidity gives RMG Mortgages the ability to compete, as well as offer a selection of products to mortgage brokers for them to choose from.”

“Our senior leadership team at Magenta meets monthly to review our product pricing.

Our goal is to be fair and competitive, balancing the risk of a product with the needs of the hard-working borrower on the other side of the file. We find that our broker partners appreciate our competitive and transparent pricing structure, and they’ve shown us by trusting us with their clients for the past 25 years.”

“Consolidate your interest rates. It’s very confusing to figure out what you offer with so many options.” “[There’s a] lack of communication with brokers about the policy of increasing mortgage rates at renewal, regardless of the rate environment.”

“We [have provided] the broker resources to explain things to their clients, such as why an insured interest rate can be different than an uninsured rate”

BROKER SUPPORT Being supported by their lender partners is important to brokers – a number of survey respondents mentioned broker support when asked about their most positive experiences with lenders over the past 12 months. But while the lenders who are excelling in this area won high praise from brokers, those who aren’t doing as well were subject to some scathing criticism.

JILL PAISH EVP, sales and marketing Merix Financial

46

“Brokers are our only source of business, and we are invested in their success, as that leads to our success. Brokers are also our long-term business partners. We are not only interested in the mortgage that is originated to us, but also in ensuring a high customer satisfaction after the mortgage funds, which includes the broker as an important piece of that relationship.

We have multiple avenues of sales support, depending on the needs of the broker, from in-house staff that can answer questions quickly to having dedicated personal account managers that provide a one-stop shop from sales to underwriting to document fulfillment and all areas in between.”

www.mortgagebrokernews.ca

44-51_Responses-SUBBED.indd 46

8/10/2019 4:15:15 AM

BDM SUPPORT BDM support was lenders’ second best-performing category in 2019.

Their strong performance in this area can be largely credited to the BDMs who go above and beyond for brokers – though there were also a few who fell short of the mark.

BRUNO VALKO

GREG DELAHUNTY

Vice-president, national sales RMG Mortgages

Underwriter Magenta Capital Corporation

“We take a 360-degree approach to broker support.

The relationship starts with the BDM, who works with the broker to help them grow their business. Our dedicated underwriters focus on building the relationship, deal by deal. Our broker portal, Gateway, is best in class. More recently, we have improved our technology to identify co-agent relationships, and we are building a suite of tools to train new agents and brokers.”

“One of our broker partners came to us recently with a file where the borrower’s lender pulled their mortgage approval three days before closing because they were no longer satisfied with the down payment. Our team was able to fund the deal on time. We’re able to support brokers in situations like this because, as with every file, we listen to what the broker and their client need and get back to them quickly with a solution. We’re transparent and communicate with the broker through every step of the process, allowing us to be flexible whenever we can be.”

“With every file, we listen to what the broker and client need and get back to them quickly with a solution” WHAT BROKERS HAD TO SAY ABOUT BROKER SUPPORT “[They are] fantastic from a broker-supportive standpoint – truly invaluable!” “[They] provide great overall broker support – lots of communication and correspondence – and work with you when issues arise.”

“My client was continually disappointed with failed commitments, excessive wait times and apparent lack of knowledge and concern.”

MIKE THIBAULT

BRUNO VALKO

Regional sales manager, Eastern Ontario Magenta Capital Corporation

Vice-president, national sales RMG Mortgages

“Everyone at Magenta, including our BDMs, understands that the success of our broker partners translates into our success. This means that we’re available and willing to support brokers and their business in any we can, especially if the broker is new to the alternative space. This can include helping brokers structure their files before a file is submitted and coaching them on how to communicate expectations and next steps to their clients. And our BDMs understand that brokers often have these conversations with their clients outside of typical business hours – we’ll respond whenever possible on evenings and weekends.”

“RMG Mortgages is proud of all our employees, and BDMs represent the brand on the front lines. As the front line, it’s important for BDMs to meet with our customers and offer value and educate brokers on our top-of-the-line products and services. Our BDMs are equipped with immediate access to broker productivity reports and are very knowledgeable in both RMG Mortgages products, as well as the industry as a whole. They’re readily available to answer brokers’ inquiries in an effort to grow the business we earn from them.”

WHAT BROKERS HAD TO SAY ABOUT BDM SUPPORT “[Their] BDMs make an effort to follow up on files and assist in the efficiency of the process.”

“I have a killer BDM at several lenders, and that makes all the difference.” “[I’m] tired of the BDM telling me to read the manual – he is too lazy to answer questions directly.”

www.mortgagebrokernews.ca

44-51_Responses-SUBBED.indd 47

47

8/10/2019 4:15:19 AM

FEATURES

LENDERS RESPOND

JILL PAISH EVP, sales and marketing Merix Financial

“A good BDM can help a broker with the deal on their desk and also assist them with the growth of their business long-term. That’s good for the broker and good for the industry.

Our BDMs are empowered to manage their region like their own business. As such, they take personal pride and commitment in providing top-notch service.

Our BDMs work with brokers to identify their long-term goals and how a partnership with Merix can support that. They dive deeply into the broker’s business and are there to support the broker on all aspects of their current deals and future business. Our BDMs provide many educational events, bring in guest speakers and are knowledgeable industry experts. Their responses will never be ‘Read the manual.’”

“A good BDM can help a broker with the deal on their desk and also assist them with the growth of their business long-term. That’s good for the broker and good for the industry”

TRANSPARENCY OF COMMISSION STRUCTURE This category came out on top as lenders’ best-performing area in 2019. Yet despite the high scores they gave many lenders for their commission structures, some brokers expressed a desire for improved transparency.

GAVIN MARSHALL

JILL PAISH

BRUNO VALKO

Founder and CEO Magenta Capital Corporation

EVP, sales and marketing Merix Financial

Vice-president, national sales RMG Mortgages

“At the end of the day, it’s the service we’re providing that matters most. Magenta doesn’t hold any patents or have an ore body in the backyard. What makes us different is not the product – the mortgage – but the relationships we’ve built with our broker partners. This our greatest asset. Over the last 25 years, we’ve earned their trust by being accountable and transparent, and by simply doing what we say we’re going to do.”

48

“Merix has always been exceptionally proud to offer a lucrative trailer fee program to compensate the broker annually for the life of the original mortgage. As we enter into our 15th year of business, we have paid over $48 million in trailer fees to brokers. This would be passive income paid years after the files have funded, allowing brokers to earn true ongoing value in their business. We have made a conscious effort to share these figures and stats to our brokers this year and really highlight the value of the Merix trailer fee program.”

“In our business, success is mutually dependent. We expect our brokers to be transparent, so we focus on transparency, too. At RMG Mortgages, we publish our commission alongside rates and promotions, offering full transparency.”

“We expect our brokers to be transparent, so we focus on transparency, too” WHAT BROKERS HAD TO SAY ABOUT COMMISSION STRUCTURE “I don’t really see any posted compensation structure, and I have to often ask for confirmation of commission.”

“It’s very difficult to figure out how much you are getting paid on a file, as commissions are not published.”

www.mortgagebrokernews.ca

44-51_Responses-SUBBED.indd 48

8/10/2019 4:15:22 AM

OVERALL SERVICE LEVELS After three years of consistently bettering their average score in overall service, lenders appeared to drop the ball this year with a score that fell below 2016 levels. But while some brokers were frustrated with their lenders’ service, others were quick to praise the lenders that are excelling in this area; many mentioned service when asked about the best experience they’ve had with a lender in the past 12 months.

WHAT BROKERS HAD TO SAY ABOUT OVERALL SERVICE LEVELS

ERIN CRAIN

SHANNON HILLMAN

Manager, funding Magenta Capital Corporation

President BlueShore Pacifica Alternative Mortgage Centre

Vice-president, national underwriting RMG Mortgages

“In my experience, Magenta is unique because our team is not only dedicated to getting files advanced, but also genuinely cares about the borrower on the other side of the file. This shows in the quality and consistency of our service. We know how stressful it can be to buy a house – most of our team has experienced it themselves – so we keep an open line of communication with our broker and borrowers at all times. Our team is willing to go the extra mile to ensure every deal closes on time, even when it’s a rush file.”

“We surveyed our broker partners in 2018 and found that service and turnaround time was a top priority.

Therefore, we made it our priority to remove any roadblocks and speed up our processes. We are unique in that brokers can submit one application and have access to two alternative lenders, BlueShore Financial NT and Pacifica Mortgage Investment Corporation.

By eliminating the need to duplicate the submission process, our broker partners can get back to their clients quickly and efficiently.”

“We believe there is a lot of power in a strong BDM and underwriter relationship. This unified approach creates a well-rounded overall customer service experience, as it cuts down on all the unnecessary back and forth and shows alignment within the organization.”

UNDERWRITER SUPPORT Although lenders’ average score in underwriter support declined quite a bit between 2018 and 2019, several brokers were quick to praise underwriters who went above the call of duty. However, others pointed out problems with communication and continuity.

JENNIFER TSALTAS Vice-president, national underwriting RMG Mortgages

“We have empowered our underwriters to take a holistic view of the entire deal. We continuously provide the underwriters with tools and education sessions that allow them to support brokers with all their industry needs.”

JENNIFER TSALTAS

“[A] unified approach creates a well-rounded experience”

“Multiple lenders have given us new underwriters that have been better fits with our team, which has drastically improved service and quality.”

“When COF is five days, it shouldn’t take until an hour and a half [before] to approve a mortgage that is a) a slam dunk and b) within stress test qualifying ratios.”

WHAT BROKERS HAD TO SAY ABOUT UNDERWRITING SUPPORT “[The underwriter] stayed late to get approval for a client that came to me with only three days to COF date.”

“Underwriting is often challenging – they ask for some ridiculous items.”

“Communication between the mortgage broker and underwriting staff is severely lacking. Last-minute requests are common. A frustrating broker/lender experience.”

www.mortgagebrokernews.ca

44-51_Responses-SUBBED.indd 49

49

8/10/2019 4:15:26 AM

FEATURES

LENDERS RESPOND

MELISSA PREVOST Underwriter Magenta Capital Corporation

“Many brokers, especially new ones, count on us for assistance when learning

about alternative mortgage products. We proactively make recommendations to find the best solution for their client. The brokers we work with know we’ll pick up the phone when they call with questions or to request feedback on a file.

We find that brokers like this hands-on, thinking-outsidethe-box approach – it’s a partnership, rather than just a business transaction.”

SHANNON HILLMAN President BlueShore Pacifica Alternative Mortgage Centre

“We have added additional personnel to our underwriting

team who have a strong knowledge of the markets we lend in. We have streamlined our due diligence requirements and have put procedures into place which allow us to approve deals in hours, not days.

Most brokers have a firm quote and commitment letter issued on the same business day as they submitted the deal.”

TURNAROUND TIMES Concerns and frustrations around turnaround times were a common theme among the brokers who responded to this year’s survey. Brokers bemoaned slow response times on applications and document review, as well as a lack of communication from underwriters. One broker reported that they’d moved their business to lenders who can produce timely commitments.

ERIN CRAIN

SHANNON HILLMAN

JENNIFER TSALTAS

Manager, funding Magenta Capital Corporation

President BlueShore Pacifica Alternative Mortgage Centre

Vice-president, national underwriting RMG Mortgages

“We value our broker partners’ time and their clients’ expectations.

Therefore, a quick turnaround time is one of our number-one priorities in our underwriting process. In 2019, we recruited another experienced underwriter to augment our existing team. As well, we have local approval authority, which gives us a competitive advantage, as we can approve a loan in a matter of hours, not days.”

“RMG Mortgages has always placed a high degree of focus on service level agreements. We believe this gives the broker a competitive advantage in the marketplace. We continuously encourage our employees to raise process improvement ideas, which allow us to evolve with better process flow that ultimately improves the overall customer experience.”

“On all files, our team strives to get back to brokers with solutions and answers in a timely manner. We know that this can make all the difference since our broker partners work hard to differentiate themselves and demonstrate their value to new clients. We also process several quick-close files a month. Some of these files are adjudicated and funded the same day, which is only possible because of the collaboration and teamwork that happens between our BDMs, underwriters and funders.”

50

WHAT BROKERS HAD TO SAY ABOUT TURNAROUND TIMES “It’s not easy to reach underwriters via phone, and they take a long time to respond to emails.”

“Very slow response times regarding applications (seven days), and they refuse to take responsibility for the slow turnaround, instead blaming the broker.”

“The document review is slow.”

www.mortgagebrokernews.ca

44-51_Responses-SUBBED.indd 50

8/10/2019 4:15:28 AM

IT/TECHNOLOGY To meet the expectations of today’s clients, brokers want to partner with lenders that have invested in technology. But while some lenders have gotten the message and have won brokers over with a seamless, tech-supported experience, others are still lagging behind in terms of consistency, efficiency and automation.

BRUNO VALKO

SHANNON FERRIS

Vice-president, national sales RMG Mortgages

Underwriter Magenta Capital Corporation

“Technology dictates our ability to deliver on service. In a marketplace where growth will be fuelled by millennials, the ability to provide a seamless user experience will be a differentiator. We are continuously upgrading our broker portal, customer portal and back-end systems to meet the changing needs of our brokers and customers. RMG Mortgages also employs a cloud-based CRM tool to track broker relationships, offers and broker behaviour.”

“The underwriting platform we use at Magenta integrates with the platforms that our broker partners use.

This means that when our underwriters adjudicate a file or send a memo to a broker, the broker can see

it instantly on their own platform. Because our systems can speak to each other, we can do things like send an automated decline if a property is outside our lending area.

This means brokers don’t have to wait for an underwriter to review the file, allowing them to send the file elsewhere without having to wait the prescribed four hours between submissions from one lender to another.

This integration makes communication on a file quick and efficient from the start.”

“In a marketplace where growth will be fuelled by millennials, the ability to provide a seamless user experience will be a differentiator”

WHAT BROKERS HAD TO SAY ABOUT IT/TECHNOLOGY “Each lender has a different way of receiving documents – some have portals, while others email. It would be great if we could use Expert for all documents, no matter what lender.”

“There should be a [single] broker portal for all lenders.”

“I would like to see improved speed of response and more automated technology.”

www.mortgagebrokernews.ca

44-51_Responses-SUBBED.indd 51

51

8/10/2019 4:15:28 AM

FEATURES

CULTURE

Bring your vision and culture to life Maintaining a positive workplace culture as your business grows will help drive collaboration, innovation and creativity, writes Emma Bannister

52

I HAVE a classic kitchen-counter startup story: creating avocado sandwiches with one hand for my baby daughter while preparing PowerPoint presentations with the other.

This was back in 2006, when I was a graphic designer and tech geek who loved PowerPoint. I was clear and focused on my vision of ‘making PowerPoint sexy’ for my clients.

At the start, our culture, values and vision were loud and clear. As a result, my business really took off and grew. Yet as I added more and more people to my team, it became tough to adhere to those values, to keep cultivating the kind of creative culture I had longed for.

www.mortgagebrokernews.ca

52-53_Bizstrat_Vision and Culture-SUBBED.indd 52

8/10/2019 3:27:12 AM

The mission evolved into helping our clients experience the value of their presentations, and we hired for passion and proof of our values: being creative, supportive, passionate and collaborative.

‘Vision’, ‘values’ and ‘culture’ have become buzzwords that are bandied about in meetings and by organizations. There’s a lot of talk acknowledging that we need them, but how many of us can define what they are exactly?

More importantly, how do we bring them to life, especially as the business grows?

Be transparent The overall vision of an organization must be set by the leader. It should describe the future direction that everyone on the team

comes from consistently leading by example and by asking questions, listening and communicating clearly.

This also means being open and honest with your team when things aren’t going to plan or tracking well. There’s nothing worse than working for a business and feeling like you’re just being lied to – transparency is the key to trust and a thriving culture. It has a massive impact on your bottom line.

Celebrate together Your culture really dictates how everyone behaves in your business. It’s made up of the shared values and beliefs that you set and say are essential. These values, however, are more than slogans on posters or coffee cups. While

Creative food days, when we share different recipes or new cuisines Walking meetings through the park Life drawing and watercolour classes in locations throughout the city We invest lots of time and energy in creating activities that include the whole team. It’s not about drinking or holding office parties. (Many of our team don’t drink, and that’s the same throughout many businesses I know.) Instead, the focus is always on a mix of different things to ensure everyone is included.

Strengthen your team

Your culture really dictates how everyone behaves in your business. It’s made up of the shared values and beliefs that you set and say are essential and throughout the business is heading in.

It’s only when people feel like they are part of something bigger that they start to achieve together as a team.

As a founder, leader or someone on the executive team, it’s essential to provide regular, consistent updates to everyone.

Without constant communication, the vision gets lost, and motivation to meet the goal dies a slow and painful death – and can be really hard to resurrect.

I’ve found that being transparent about the numbers and my role – and what I’m doing day-to-day – is crucial. Be present and connect with your team, and be there to listen to their ideas and challenges.

Transparency alone doesn’t equal trust; that

a lot of people bring in the big guns to help them come up with a few summary words, establishing values requires much more than a set-it-and-forget-it activity.

For example, one of our values is creativity, so we regularly get together to help boost each other’s creativity through: Presentations to one another about our personal passions Sharing life experiences and listening to one another’s stories as a way of connecting and exploring Popcorn sessions at which we watch videos, animations, TED talks or debates

When you facilitate this kind of collaboration, even if it’s not 100% work-related, then each of us becomes more innovative, and the office becomes more fun overall.

As I have experienced, keeping the culture going is the biggest challenge you will have as your business starts to grow.

When there are only a handful of people on your team, then everything is really just an extension of you. Your passion is felt across the table and in a small room, and it’s easy to make that felt.

As you expand, it’s vital to strengthen your management and build a leadership team that is responsible for ensuring the message – your vision, values and culture – is clear and translated to everyone.

Emma Bannister is passionate about presenting big, bold and beautiful ideas.

She is the founder and CEO of Presentation Studio and author of Visual Thinking: How to Transform the Way You Think, Communicate and Influence with Presentations. For more information, visit presentationstudio.com.

www.mortgagebrokernews.ca

52-53_Bizstrat_Vision and Culture-SUBBED.indd 53

53

8/10/2019 3:27:17 AM

MAGAZINES

SPECIAL REPORTS

ARTICLES

Shop CMP online today at

shop.kmimedia.ca 54-55_Career 54 CMP online adPath-SUBBED.indd 2018.indd 1

8/10/2019 10:51:48 3:39:33 PM AM 14/03/2018

8 PM

PEOPLE

CAREER PATH

STARTING FROM SCRATCH Joseph Fooks is no stranger to the hard work of picking himself up and starting all over again As a teenager, Fooks’ success in a school stock portfolio project encouraged him to invest with a social connection who purported to be an experienced day trader. Fooks thought he was making a passive fortune as a first-year university student, but his advisor was eventually revealed as a con man who ultimately cost Fooks and his friends and family almost a million dollars.

2002

GETS CHEATED

2003

2007 REACHES THE PRESIDENT’S CLUB Fooks’ early years at the brokerage were stressful and demanding – but effective. He became the youngest person ever to reach President’s Club status.

“We worked 15-hour days with no weekend; we knew that’s what it would take for such young guys to be successful. I remember driving home in snowstorms at 2 a.m. on empty roads because I was working late to organize my files for the next day. Those seven years were my business school.”

DISCOVERS MORTGAGES Having dropped out of school due to the losses he sustained in the Ponzi scheme, Fooks turned to mortgages.

“My cousin was in the business and was making good money; he told me I should get into mortgages. I realized that I’m very good at selling – I really had a knack for that. A friend and I decided to start a brokerage together with his father, who was carrying the licence.”

2008

CONSIDERS A NEW POSSIBILITY The industry-wide disruption that followed the global recession of 2008 prompted Fooks to think about a new avenue of business.

2011

“It was chaotic. We had to let people go to survive – business had significantly slowed.

That time was a catalyst that started me thinking about getting into private lending. I realized the landscape was changing for the better; rules were being tightened”

2018

2014

DIVES INTO PRIVATE LENDING After exiting the brokerage he had co-founded at the age of 19, Fooks changed lanes to become a private lender, founding JV Capital with a $200,000 investment.

“I needed to make a change in my life. I knew this was where the business was shifting towards; there was much more demand for private mortgages. The credit crisis opened people’s eyes to private lending.”

LAUNCHES MORTGAGE AUTOMATOR Although Fooks launched tech platform Mortgage Automator last year, it wasn’t until this year that it really gained traction. The success resulted in Mortgage Automator being named Innovator of the Year at the Mortgage Awards of Excellence and Fooks being named a CMP Young Gun. “We have over 50 paying customers already and are on track to top 100 by year’s end. Because of the software, JV Capital was able to fund $100 million last year and will again this year with only two employees.

Our hard work is finally paying off.”

GAINS A PARTNER Three years after opening his doors, Fooks brought on a partner to help move the business forward.

“To me, the money is not that important; the growth of your business makes you a success, and the money is a side effect of that.

Bringing [a partner] onboard was proof that the business was getting so big that I needed someone to help take it to the next level.”

www.mortgagebrokernews.ca

54-55_Career Path-SUBBED.indd 55

55

8/10/2019 3:39:39 AM

PEOPLE

OTHER LIFE

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

BACK TO THE DRAWING BOARD When Damian Wickie isn’t brokering deals, he’s most likely designing another world DAMIAN WICKIE developed an interest in animation in the early days of the internet. The Toronto-based broker and owner of Branch Financial spent hours

2004

Year Wickie founded his animation company, Wolfzone Digital

75

Number of animated explainers, promos or training materials he has made for corporate clients

pouring his interest in tech and design into “playing around with website design as a hobby; it was something to do that was totally different to my day job.”

Despite the fact that Wickie never had any ambitions to turn animation into a career, his company, Wolfzone Digital, has done a thriving trade, regularly winning contracts for training animations, explainers and promo videos.

But the main point of this ancillary business, Wickie says, is the creative outlet it provides. “I enjoy creating something from nothing, whether it’s a character or a scene, and seeing it come to life,” he says.

“When other people enjoy my work, that’s the best part for me. And the work itself helps me relax and stay centred; it’s something I do for myself.”

7

Years he has spent donating animation and web services to nonprofits

Wickie’s current focus is on developing video ga mes; he’s in the early stages of creating a combat-based ga me

56 www.mortgagebrokernews.ca

56-IBC_Other Life-SUBBED.indd 56

8/10/2019 3:43:26 AM

56-IBC_Other Life-SUBBED.indd 57

8/10/2019 3:43:31 AM

00_OFC_Spine_OBC-SUBBED.indd 3

8/10/2019 3:42:03 AM