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Who made this year’s list of Canada’s leading brokers? Brokers on the state of today’s rapidly changing real estate market and industry

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ISSUE 11.04

CONTENTS

TOP 75 BROKERS COVER STORY

This crop of Top 75 Brokers has set a new bar for industry excellence. See who made this year’s list

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CONTENTS

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UPFRONT 04 Editorial

Facing new regulations head-on

54 PEOPLE

BROKER INSIGHT

Sabeena Bubber explains how fostering a culture of support has helped her brokerage thrive

06 Statistics

New data on foreign ownership comes to light

08 Head to head

Is more industry regulation on the way?

10 News analysis

Brokers react to FICOM’s final word on disclosure

12 Commercial update

Big Data comes to the commercial space

14 Investment update

A look at London’s varied rental market

FEATURES

7 MYTHS ABOUT RESIDENTIAL APPRAISALS Are you guilty of making one of these common assumptions about the appraisal process? PEOPLE

INDUSTRY ICON

Sharon Fitzpatrick reflects on the broker channel through the lens of a career spent largely at the big banks

FEATURES

CREATING A TRUSTWORTHY BRAND

Mortgage Teacher reveals three keys for effective branding

How one broker network is taking a stand against bullying

PEOPLE 62 Career path

From broker trainer and MBA candidate to expectant mother, Tina Francis wears many hats

64 Other life

In the ring with Maksim Perevoshchikov

58 FEATURES

REDEFINING BROKER COMPENSATION A closer look at Spire, Home Trust’s new compensation model

16 Opinion

Special Tear-Out Section Private Lending Guide MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

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UPFRONT

EDITORIAL

The industry’s biggest challenge? April has brought with it an odd winter resurgence – at least in Toronto – but it’s another type of storm brewing across the country that is sending chills down the spines of brokers. FICOM, British Columbia’s regulator, officially announced it will go forward with a proposal that will require brokers to indicate to clients, in exact dollar figures, how much commission they make per deal. This, despite the fact that brokers across the country brought forth – and shared with the regulator – concerns around competitive disadvantages, as well as the difficulty of stating upfront what each deal garners the broker. Fears are now growing that other provincial regulators may soon follow suit. When asked if it plans to institute similar requirements, Ontario regulator FSCO gave CMP a non-committal non-denial.

It seems safe to say that the brokers who adapt – and there will likely be plenty of them – can look forward to sunny skies ahead “FSCO’s legislative mandate is to provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates, including mortgage brokering,” wrote Malon Edwards, an FSCO representative, in an email to MortgageBrokerNews.ca. “In general, FSCO would implement regulations approved by the Ontario government that provide consumers, lenders and investors with better protection and more information for their mortgage investments.” And so it seems brokers are now set to deal with one of the biggest challenges they have ever faced. But will this prove to be as disastrous as many have predicted? After all, mortgage brokers have dealt with difficult mortgage rule changes and increased competition from the banks, as well as those same big banks pulling out of the industry. And yet you continue to thrive, as evidenced by the Top 75 Brokers in this very issue. Therefore, it seems safe to say that the brokers who adapt – and there will likely be plenty of them – can look forward to sunny skies ahead. The team at Canadian Mortgage Professional

www.mortgagebrokernews.ca ISSUE 11.04 EDITORIAL Editor Justin da Rosa Writers Donald Horne Joe Rosengarten Executive Editor – Special Features Ryan Smith Copy Editor Clare Alexander

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22/04/2016 9:23:49 AM

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UPFRONT

STATISTICS

The facts on foreign buyers CMHC is working to collect more comprehensive data on foreign buyers of Canadian real estate – but what do we know now? MANY HAVE applauded the Canada Mortgage and Housing Corporation’s initiative to collect more comprehensive data on offshore buyers of real estate, which would help determine just how much influence they have on the market. Karine LeBlanc, a spokesperson for CMHC, told MortgageBroker News.ca that “reliable data collected on foreign owners will be published to support informed decision-making.” In April, CMHC released its latest report on foreign ownership of condominiums, which

revealed what many already suspected – that foreign buyers of condos are particularly targeting the increasingly expensive Vancouver and Toronto markets. “At this time, no existing tool can provide a definitive measure of the level of foreign investment in Canada’s housing markets,” the organization said in a press release. “That said, CMHC regularly engages in discussions internally, as well as with industry experts, as part of its continued efforts to develop a program of work that would better capture data on foreign buyers.”

FOREIGN OWNERSHIP ACROSS CANADA Canada’s hottest real estate markets – Vancouver and Toronto – have the largest numbers of foreign owners of condominiums, but other cities across the country have experienced their own surge of foreign buyers as well.

Vancouver

3.5% Victoria

1.0% Kelowna

2014

The year CMHC started tracking foreign ownership through its Condominium Vacancy Survey

10.1%

Highest proportion of foreign ownership, in condos built after 2010 in Toronto Centre

Number of CMAs that saw an increase in foreign condo ownership from 2014 to 2015

0.2%

Toronto

While foreign purchases of condos represent a relatively low proportion of the overall market, they are clearly increasing – six metropolitan centres across Canada saw a jump in foreign ownership of at least one percentage point between 2014 and 2015.

Centre West East North

Vancouver

WHAT A DIFFERENCE A YEAR MAKES

Within Canada’s three largest cities, certain neighbourhoods definitely appeal to a larger percentage of foreign buyers.

Burrard Peninsula* Westside* Eastside Suburban Vancouver

Montreal

HOTTEST AREAS

Downtown and Nuns’ Island Pericentre West of Island of Montreal East of Island of Montreal

5.8% 1.5% 1.1%

3.5 2.6% 5.8%

1.5%

2.5 2.0

1.5

3.4% 4.9% 1.4% 0.9% 0.4%

2014 2015

3.0

1.0 0.5 0.0

*2014 figures

Source: CMHC Housing Market Insight, December 2015

Number of CMAs that saw a decrease in foreign ownership during the same period

Vancouver

Greater Toronto

Winnipeg

London

Calgary

Source: CMHC Housing Market Insight, December 2015

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Ottawa

1.0%

Edmonton

1.1% Gatineau

Saskatoon

0.3%

0.5% Greater Toronto

Montreal

3.3%

1.3%

Winnipeg Calgary

2.7%

1.1%

Quebec City

1.3%

London

Kitchener-CambridgeWaterloo

2.2%

0.2% Source: CMHC Housing Market Insight, April 2016

FOREIGN BUYERS PREFER NEWER BUILDINGS

WHAT OTHER COUNTRIES DO

CMHC’s latest report parsed foreign ownership data based on the age of the condo building, finding that, by and large, foreign buyers are purchasing units Before 1990 in buildings constructed within the past five years.

Canada is hardly the only country struggling with this issue; many others have introduced roadblocks to curb foreign real estate purchases.

Toronto 1.2% 1.4% Vancouver 1.4%

3.0%

4.4%

Calgary 1.9% 0.6% 0.7%

0.2%

7.4%

6% Edmonton 1.2% 0.2% 0.1% 0.2%

1990–1999 2000–2009 After 2010

Montreal 1.1% 1.2% 1.6% 1.3% Victoria 1.2% 1.1% 2.3% 0.5% Source: CMHC Housing Market Insight, April 2016

Australia Charges a $5,000 fee to make an offer on real estate over $1 million

Mexico Forbids foreigners from buying property within 50 kilometres of the coast

UK Collects a 28% capital gains tax when foreign owners sell a property

China Adds a 15% surcharge to homes purchased in Hong Kong by non-residents

Switzerland Limits the number of foreign investors who can buy property and prohibits reselling within a fixed period of time (up to 10 years in some cases)

Source: CBC News

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22/04/2016 9:34:16 AM

UPFRONT

HEAD TO HEAD

Is more regulation coming for the mortgage industry? Have a few bad apples created a situation where more regulatory intervention is needed?

Enza Venuto

Jared Stanley

Michael Jones

Owner/broker Centum Streetwise Mortgages

Business development officer Alt Mortgages

President and CEO Equity Financial Trust

“Looking at the mortgage industry through my 45 years of experience, I have seen many changes. If more changes are to come, I would hope to see them appear in the form of higher standards of education. Education in this industry is vital. Like Realtors, who are required to learn particular aspects of their industry, such as mortgages and appraisals, we too should have a regulation to provide mandatory courses in financial planning and realty, for example. A large part of the broker industry is helping to assess our clients’ financial needs. Countless times I’ve found myself cleaning up financial errors and decisions made by a bank or broker due to their clear lack of understanding about what the client’s true needs are.”

“History suggests that yes, more regulation is coming for the mortgage industry. Whenever there has been fear that housing markets are overheated, the Department of Finance and OSFI have implemented tighter mortgage rules and regulations to cool the markets. When new rules were announced in 2008, 2010 and 2011, there was a mass ingress of anxious market participants worried about never owning a home, which increased demand and drove up prices. Once the new rules were implemented, demand dropped, supply increased, and prices dropped for approximately three to six months before rebounding. Mortgage regulations are one of many levers the government can use to cool the housing market.”

“One potential cause of additional regulation is the incidence of fraud for shelter. Federally regulated lenders (such as Equity) recently were asked by OSFI to fill out a detailed survey on the topics of mortgage fraud and money laundering. In our view, this is a strong indication of how seriously the federal government takes the subject, and it raises the possibility that additional regulations may be under consideration. To help in dealing with any new regulations, we are working closely with our broker partners to improve fraud detection and mitigation programs, and to ensure they are sufficient to the needs of today. If change does come, we will be able to deal with it more effectively if we prepare for it in advance.”

NEW REGULATIONS FOR CHANGING ROLES? Amid the renewed drive to crack down on unscrupulous industry practices in the real estate and mortgage industries, many are calling for tougher rules and harsher penalties. As brokers slowly morph into financial advisors, do the rules and regulations need to adapt to address these new roles? FICOM has laid down the law on its new interpretation of regulation Form 10, which will require mortgage documents to explicitly state how much brokers are compensated, in an effort to reinforce the relationship of trust between consumers and mortgage brokers, and reduce the risk of consumers receiving compromised advice.

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UPFRONT

NEWS ANALYSIS

New disclosure rules hit BC The industry fought tooth and nail to deter British Columbia’s regulator from implementing new disclosure rules, but it was all for naught AS BROKERS in British Columbia prepare for a new reality now that FICOM has announced its plan to proceed with its proposed disclosure requirements despite widespread outcry from brokers, others across the country wait with bated breath to see whether their own regulators will implement similar requirements. However, for one professional, the biggest concern isn’t whether his province will be impacted – it’s the fact that the BC-based regulator has chosen to single out mortgage brokers exclusively. “There are many players in the mortgage industry – banks, mobile reps, Realtors, builders and mortgage brokers,” says Walid Hammami, a Montreal-based broker with Dominion Lending Centres. “But for some reason FICOM decided to single out one of the players – the one player who is dependent

rep where they know how much he makes, even if he makes less than the bank.” It’s a concern that has been brought up by a number of industry players, including long-time veteran John Bargis. “I see no attempt on FICOM’s part to move ahead with an initiative for full disclosure on the part of the credit union road reps they regulate and who work on a variable-rate compensation depending on what rate they actually offer the consumer,” says Bargis, principal of Mortgage Edge. “Perhaps they aren’t so concerned about the perceived conflict to the consumer or the need for disclosure in this case, or perhaps the credit unions just have too much money to fight the fight against any attempt against their front.” FICOM’s new interpretation of regulation Form 10 will require mortgage docu-

“For some reason FICOM decided to single out the one player who is dependent on ... commission” Walid Hammami, Dominion Lending Centres on that sole revenue of commission. The same thing happened to independent mutual fund representatives, [and now] people would rather go to the banks and have that info of how much the bank makes hidden, rather than deal with an independent

ments to explicitly state how much brokers are compensated. In late March, the regulator sent an email to MortgageBrokerNews. ca, confirming that it is going ahead with the change, despite heavy criticism from the industry.

“My office is proceeding with plans to implement improved disclosure measures for mortgage brokers in British Columbia,” said Carolyn Rogers, FICOM’s registrar of mortgage brokers. “We have reviewed feedback received from the industry in response to the open letter sent in January and appreciate all the comments.” However, Bargis questions the need for such disclosure. “If one lender … happens to have the margins to offer more commission than another, with lower rates, are we expected to feel guilty about the commission we’re earning even though the borrower benefits from the lower rate?” he says. “Don’t misunderstand me – we’re all for the protection of the consumer, but when the consumer’s best interest is already being

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FICOM FORM 10 CHANGE: TIMELINE OF EVENTS October 16, 2015 The Mortgage Broker Regulator’s Council of Canada hints at a potential disclosure rule change. October 20, 2015 The Mortgage Brokers Association of British Columbia speaks out against the pending change. “The implications are pretty significant because it will pressure brokers to buy down more business,” said MBABC CEO Samantha Gale. “Because the whole concept is for brokers to disclose and break down commissions, it will put more pressure on them to take lower commissions.” October 26, 2015 FICOM provides reasoning behind the pending rule change. “Disclosure of conflicts of interest in terms that consumers can easily understand reduces the risk that brokers provide advice that is not in the consumer’s best interest, but rather in the broker’s pecuniary interest (for example, where lender A provides higher compensation than lender B).” November 2, 2015 The MBABC launches an industry petition. March 30, 2016 FICOM announces it is set on pursuing the rule change.

served with the competitive rates readily advertised in the marketplace, I don’t see what the issue is for FICOM.” When asked whether FICOM plans to

to 60 days.” That email message was sent to CMP on April 1 – meaning more information from FICOM should be expected by the begin-

“The consumer’s best interest is already being served with the competitive rates readily advertised in the marketplace” John Bargis, Mortgage Edge roll the requirement out to the credit unions it regulates, a company representative told CMP, “As indicated in our statement earlier this week, FICOM will provide more details on disclosure requirements as they affect mortgage brokers in the next 30

ning of June at the latest. Until then, however, brokers will continue to air their grievances. “Where and how did FICOM get the idea of commission disclosure on the table? It wasn’t an issue before,” Hammami says.

“What is so different now – did they get a case where there was an abuse? Or is it a bank exec who is trying to increase market share for his organization? Or it could be collusion between several lenders. FICOM is being silent on its reasons.” Hammami also takes issue with what he feels to be a lack of representation from the mortgage broker associations, although both Mortgage Professionals Canada and CMBA have been active in sharing concerns with the regulator. “We have no representation or whatsoever – that’s why we need a different organization to speak for the brokers,” he says. “You can’t count on superbrokers to do something. This was a test, and they failed. We need to think outside the box and pool resources.”

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UPFRONT

COMMERCIAL UPDATE NEWS BRIEFS Foreign real estate investment reaches $1.4 billion

Canada’s real estate market has established itself as a prime destination for overseas investors over the past few years, and the results of a recent survey continued to support this assertion, revealing that foreign capital in the last six months of 2015 reached a record high of $1.4 billion. The report, from Colliers International, noted that the commercial real estate and multi-family segments were especially strong. In Vancouver alone, $588 million in foreign capital was used in the purchase of commercial real estate in the second half of 2015.

Blackrock bullish on commercial real estate Rick Rieder, the chief investment officer of asset manager Blackrock, recently told Bloomberg that commercial mortgages are among the most attractive investment opportunities. “We think this is the year of carry,” Rieder said. “If growth is moderating in the world, it is harder to generate returns from beta.” He commended the EU Central Bank for making moves to increase bond purchases and bank lending. According to Rieder, the Fed is allowing the job market to remain hot; he also predicted that America’s central bank could increase rates in June.

US commercial originations climb to $400 billion

Commercial deals south of the border reached the $400 billion mark last year, according to a report from the Mortgage Bankers Association. “Commercial real estate borrowing and lending in 2015 came within a whisker of the record high level of 2007,” said Jamie Woodwell, the MBA’s vice president of commercial real

estate research. “The volume was driven by improving property fundamentals, strong property values and very low interest rates. Despite some credit market disruptions to start off this year, and regulatory and other hurdles still ahead, many of those positive factors remain in place.”

Investors Bank a big player in US commercial real estate

Investors Bank Commercial Real Estate Lending Group originated $3.09 billion in transactions in 2015. That total included $2.08 billion in multifamily commercial mortgages and an additional $939.9 million in CRE loans for retail centres, warehouses and office buildings. “Fortunately, our bank has significant capital reserves, and for that reason and others, building owners and management firms have come to rely on us for their financing needs,” said Joseph Orefice, head of CRE lending at Investors Bank. “We will continue to make prudent loans to the multi-family housing and CRE sectors, and we are already ahead of our annual loangrowth forecast.”

Canada to draw commercial interest

Housing data startup raises $22 million A commercial real estate data start-up has secured funding that might allow it to expand to Canada Two millennials now have the distinction of having founded one of the most well-funded start-ups in commercial real estate technology, a segment that has long been considered in dire need of data to bridge numerous gaps in knowledge. US-based Reonomy, the brainchild of Charlie Oshman and Rich Sarkis, has raised $22 million – mostly from asset management firm Bain Capital and venture funding group Softbank Capital – that would allow the company to serve more industry players with accurate and up-to-date information. “We are rapidly growing in [New York City] and will expand nationally towards the end of the year,” Oshman told Forbes. “It won’t be long before we are in Canada and the UK as well.”

In its latest report, auditing and accounting firm KPMG found that Canada is among the most competitive countries for businesses, based on the cost of industry essentials such as corporate income taxes, labour, facilities and transportation. KPMG named Canada as the second most attractive market among the world’s leading industrial economies, due in no small part to its continued affordability in the face of a high US dollar. Initial fears that a weak loonie would be disastrous for the still-recovering economy proved to be unfounded, according to KPMG.

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Reonomy, which compiles data on the approximately 1.2 million properties in New York City, has been touted by its founders as the Realtor’s next great tool. “My biggest learning was that CRE professionals were making really big real estate investments based on probability, not highquality information; in many cases, they just didn’t have the data,” said Oshman, a software professional who had no background in real estate prior to founding the start-up.

“Deal flow and the right data points are the difference between success and failure” “Having worked in financial services, I was stunned that the same level of data sophistication did not exist in real estate,” Sarkis added. The platform has no shortage of prominent clients – the roster already includes Marcus & Millichap, Meridian Capital Group, JLL and Tishman Speyer. The duo said they are looking at continuously refining their product for their users. “In the real estate industry, deal flow and the right data points are the difference between success and failure,” Oshman said. “Reonomy is steroids for the real estate professional. With our tools, users are able to quickly find the types of deals and insights they are looking for, that they would otherwise miss.”

Q&A

Frank Lee

Breaking into the commercial space

Senior mortgage planner DOMINION LENDING CENTRES A BETTER WAY

Years in the industry 10 Fast fact Lee first earned his stripes on the banking side of the industry as branch manager for RBC

What are the benefits of focusing most of your business on commercial deals? The commercial mortgage business is very different from the residential mortgage market. Although clients are still sensitive to rates and fees, their main goal is to being able to get their project or purchase completed on time and on budget. Their focus is on the mortgage broker coming through for them and providing the financing that fits their needs. Focusing my business on commercial mortgages helps me to create long-lasting relationships with builders, developers and real estate investors. This solid relationship results in repeat business. In general, commercial mortgages are more complex than residential ones because there can be a lot more moving parts in the application. However, it also means that each deal is larger than a typical residential mortgage. There is a real sense of accomplishment to drive by the commercial building or the multi-unit residential project you’ve helped to finance. With each commercial deal that’s been completed, you gain the confidence to work on an even larger deal down the road. What are some of the reasons residential brokers may be nervous to do more commercial deals? Residential brokers may shy away from doing commercial deals simply because they are unsure as to how to begin. The thought of working on complex deals may deter many from even contemplating entering the commercial mortgage world. Another possible reason is that unlike a residential property, a commercial deal can encompass a variety of types of commercial properties that can range from a small retail space to a high-rise building or an office tower. Finding a lender to match the needs of their client may be a daunting task. A third reason is that, unlike a residential mortgage, where the broker is compensated by the lender, in a commercial deal, the client will pay the broker a fee for arranging the commercial financing for the purchase or project. Some brokers many not find this arrangement to be palatable. An easy way to get rid of any jitters in doing a commercial deal is to work with an experienced broker on a few deals. Let your mentor take the driver’s seat and work through a deal. Learn lots and ask a lot questions. What are common mistakes new commercial brokers make? The new commercial mortgage brokers I have had the privilege to meet have done very well in their commercial mortgage business. Because they are professionals, they avoid the pitfall of recommending a lender or a financing package to a client without fully understanding the client’s needs or being familiar with the requirements of the commercial lender. The good brokers also avoid the mistake of underestimating that a commercial appraisal may take over two weeks to complete – significantly more time to complete than a typical residential mortgage.

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UPFRONT

INVESTMENT UPDATE

More than just rental housing in London A young investor reveals his strategy for quick success in the Ontario town

properties at a satisfying price.” Currently, Miller is primarily employing a buy-and-hold strategy. However, the 24-year-old investor recently purchased a home with the intent of quickly flipping it to gain more capital for further investment. “Obviously at my age, you don’t have a lot of capital, and the banks stop lending you money at a certain point,” he says. “So I’m just starting to bring in joint-venture partners; previously, I’ve done everything on my own.”

“As of right now, you can get into this market fairly cheap and get rental properties at a satisfying price”

The university town of London, Ontario, isn’t just for one-trick investors anymore, according to a new investor in the market whose single-family home investments will one day allow him to quit his day job. “In London, we have great drivers of our economy,” says local investor Kevin Miller. “We have huge, huge hospitals. We have Victoria Hospital here in London that houses one of the largest children’s units in Canada. And then we have the University Hospital,

NEWS BRIEFS

St. Joseph, which also employs thousands of doctors, nurses, etc. It’s a huge, huge industry here.” And of course, the town is also home to one of the country’s leading universities. “We also have Western University – obviously the population is on the rise constantly because of the universities and the hospitals,” Miller says. “It’s a great time for investing. And as of right now, you can get into this market fairly cheap and get rental

Investors bowing out of Vancouver market

The average price in Vancouver increased 25.6% year-over-year to $1.1 million in February – and that’s keeping the real investors on the sidelines, according to one veteran investor. “The Vancouver market is just so overheated at this point that anybody who calls themselves a professional investor is sitting on the bench at this point,” said Vancouver-based investor Hans McFarlane. “Basically, any place for sale either in Vancouver or Victoria, if it’s even remotely priced appropriately, you’re looking at multiple offers, sold within a day.”

However, up to this point, Miller says he hasn’t faced any additional challenges due to his age – and he encourages other young investors to take the plunge into real estate. “Getting the initial capital isn’t that difficult as a young investor in this city because you can get in fairly cheap,” he says. “It’s just jumping in and realizing that you’re ready. A lot of people, they see the rental market and they see the money coming in, and they know it’s a good choice. But just jumping in headfirst and getting involved is the biggest [obstacle]. People just hold themselves back because they don’t want to spend the money.”

Investor spotlights overlooked GTA market

One investor’s bold claim may draw others to the overlooked Oshawa market. “Properties within an hour of Toronto under half a million dollars will not exist this time next year – even in Oshawa,” said real estate broker and investor Randy Ramadhin. And it’s Oshawa that Ramadhin is particularly bullish on. “New home building supply is the best option for investors,” he said. “So of the GTA home builders, I believe there’s more affordable new home supplies for detached and semis and towns in Durham than everywhere else in the GTA.”

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Q&A

Matt Elkind

Why Waterloo’s hot right now

Investor and agent THE CONDO STORE

Fast fact Waterloo, in southwestern Ontario, has a population of just under 100,000

What makes Waterloo a good place to invest? Basically, it’s the growth and the type of growth it’s experiencing. Growth is driven by innovation, which is reflected by the students coming out of the university – the research of the university is driving companies. In 2014, there were 500 start-ups in the area. There are a whole bunch of start-up hubs and different types of funding sources. Right now you can go to the University of Waterloo or Laurier, come up with a good idea and receive funding before you even graduate. Many companies are moving there to take advantage of the cheaper rent and the low Canadian dollar.

What are the best properties for first-time investors or seasoned investors to target? I think it’s all the same. We’re targeting one- and two-bedroom condos near Technology Park and the universities because that’s where the growth is happening. Young professionals aren’t interested in living in a five-bedroom unit. A lot of the new housing has been purpose-built student housing; there is a fair amount of that stuff, but many young professionals don’t want that. They misjudged the stock. People are happy to pay $1,200 per month to have their own place.

Is Waterloo strictly a student rental market? The fact of the matter is, it’s changed. As a landlord, you will get someone who is a student. What used to

Government to use data to deter foreign buyers?

The Canadian government has promised to dedicate $500,000 to collect data on foreign ownership, claiming that reliable data does not yet exist for this segment of the housing market, which is thought to play a role in driving up prices. However, one investor hopes that data won’t be used to discourage foreign buyers. “I’m loath to start putting in putting in controls [to deter foreign investment]; you never know what you’re going to get,” said BC-based investor Darcy White. “I’m a free market guy, and I think the market will find its level.”

happen is they used to move away, but now they’re staying, getting jobs or starting a start-up. There is great growth in the university, but there’s also great growth in technology. They don’t graduate and leave. They graduate and stay in the region.

Which areas are most desirable? Right around the university – Technology Park, the Innovation District. You want to be around the school and technology growth.

“Students used to move away, but now they’re staying, getting jobs or starting a start-up. They don’t graduate and leave. They graduate and stay in the region” What sort of returns can investors expect? Everything we’re selling is around a 5% cap rate on the rental market. On capital appreciation, it’s been in the neighbourhood of somewhere between 10% to 15% per year during the pre-construction phase. An example of that is the Icon – units sold originally for $200,000, and a little over two years later, they’re at $235,000 with occupancy in September.

Good deals can still be found in Toronto

One industry veteran argues Toronto is still a great buy for potential landlords. “Everyone is concerned about all the condos being built in Toronto, but every year there are 81,000 new permanent residents coming to the city,” said Andrew Adams of Capital Developments. “Compare that to the 95,000 total new residents in Toronto – prices and rents are growing.” Prices in Toronto jumped 14.9% year-over-year in February to $685,728. Condos remain a more affordable option at an average of $403,392.

Multi-family housing the wave of the future

While Baby Boomers and millennials are driving real estate demand today, a recent report from Fannie Mae looked at the potential purchasing habits of Generation Z. According to the report, the cohort could induce a market shift that will place renewed emphasis on the development of multi-family units. “Despite all the new multi-family construction going on today, there might not be enough of the right rental housing, in the right locations, to meet the demands of this generation,” the report said.

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UPFRONT

OPINION

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

Brokers can help end bullying Tad Milmine outlines how one broker network is helping to send the message that bullying needs to stop PINK SHIRT DAY is important to me, and should be to everyone. This one day is meant to start a conversation that should last for 365 days a year. On this year’s Pink Shirt Day on February 24, Dave Teixeira, vice president of marketing, public relations and communications for Dominion Lending Centres, and I had a pretty remarkable day in Vancouver and Victoria. In Vancouver, we were able to partake in many media interviews both on the radio and television, sharing the important work that my educational outreach program, Bullying Ends Here, is doing in partnership with DLC. Dave then took me on my first ever floatplane ride to Victoria for the day, where we were welcomed in the BC legislature and treated to a day of important conversation and introductions. I was able to speak with Travis Price, the creator of Pink Shirt Day, and learn about all of the important work that he too is doing. Needless to say, there are many incredible individuals out there who are fighting hard to make this world a better place. On February 24, I made the Pink Shirt Day Pledge that I was going to follow through on the important message of keeping the discussion going throughout the year by continuing the wear the Bullying Ends Here pink shirt during every presentation across the country. I thought it would be a great way to ensure we are the leaders in carrying forward the message – not only with words, but also in our actions. I have spoken at many schools in and

around Calgary and Lloydminster, and I’m now on my way back to Ottawa. While in Lloydminster, I had the pleasure of speaking at five schools thanks to Val Thibault of DLC, who worked so hard to put that tour together. Because of her hard work, the program reached just shy of 2,000 students and was represented in the

that was shared with me. After a presentation, the students went back to their classrooms to debrief. While doing so, in one classroom, a student stood up and said, “I saw Tad speak last year at my last school, and it also happened to be the same day that I was going to commit suicide. After he spoke, I knew that suicide was not the answer, and I got the help that I needed.” The teacher shared that story with me to illustrate just how much of a difference the program is making. Not only did it save a student’s life, but that student was also brave enough to share the impact it had on him with others. This now brings the total number of lives saved (as known to me) to 36. Some of you have already reached out to me to purchase my first book, Bullying Ends Here: My Life, for yourself and/or others. With the proceeds from the sale of the book going directly to the charity, we are all making a difference. The feedback on the book has been truly humbling, and I know

“I thought wearing a pink shirt during every presentation would be a great way to ensure we are the leaders in carrying forward the message – not only with words, but also in our actions” local media. Not only did Val do all of that, but she also welcomed me into her home for a wonderful home-cooked meal with her family – such a wonderful time. Now I am off to Ottawa to speak to several schools there, thanks in part to DLC agent Trevor Watters and his family. I will also be spending some quality time with the family of Jamie Hubley, the teen whose suicide in 2011 inspired me to start Bullying Ends Here, to catch them up on some of the work that has been taking place since we last met in November. I know they are thankful for all that we do to keep their son’s memory alive and to help those who need it most. The importance of the work we’re doing was driven home recently by a success story

that it is helping many more people. I am really excited for the future and am committed to pushing myself even harder to make this world a better place. I am expanding on my commitment to Jamie’s family to tell the world about their son. I promise to continue saving lives by simply sharing my own story and Jamie’s. Together, we are not only changing lives, but saving them.

Tad Milmine is a former Calgary police constable and the founder of Bullying Ends Here, a program that educates children and adults about the effects of bullying and how to stop it. Dominion Lending Centres became a founding sponsor of Bullying Ends Here in 2015.

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22/04/2016 9:11:46 AM

PEOPLE

INDUSTRY ICON

THE RACE TO GO DIGITAL According to Paradigm Quest’s Sharon Fitzpatrick, the mortgage industry is on the cusp of a huge shift to a digital experience – and it’s up to both brokers and lenders to get it there

IT’S NO mystery that the mortgage industry is changing. From the everpresent threat of regulation changes and increasingly slim margins to competition from outside and, indeed, within the industry, brokers need to adapt to thrive. Every industry player has predictions about how the industry will evolve. However, when that player has more than a quarter-century of experience in the financial services like Sharon Fitzpatrick does, it’s safe to assume her predictions are rooted in wisdom. Over the course of her career in the mortgage and banking industries, Fitzpatrick, who currently serves as the executive vice president of corporate development for Paradigm Quest, has gained knowledge in sales leadership, credit, customer experience and risk assessment. She’s also encountered enough challenges to be able to predict the obstacles that are coming down the road for brokers in the future. And as Fitzpatrick sees it, the main obstacle is going to be an increased pressure to do business online. “The future is online and mobile,” she says. “We’ve seen incredible advancements in online and mobile technology in the

financial services sector. There is technological innovation in every corner of our lives.”

Digital revolution The evolution of the industry toward all

to the big banks in terms of technology. “The mortgage industry is playing a slow catch-up to some of the other sectors we’ve seen – in particular, retail banking, deposit and investments,” Fitzpatrick says. “I can’t wait for the day when a mortgage

“The mortgage industry is playing a slow catch-up to some of the other financial sectors ... I can’t wait for the day when a mortgage application can be digitally completed without the need for mountains of paperwork” things digital should be no problem for younger brokers, those who can barely remember a time when the Internet didn’t exist and are fluent in social media and digital communication. However, a quick search through Twitter or Facebook reveals that brokers from all generations are starting to embrace the impact that mobile communications can have for business. Fitzpatrick points out that there will be even more need for confidence in digital communications as the industry catches up

application can be digitally completed without the need for mountains of paperwork.” While the mortgage industry’s technological infrastructure clearly still needs to grow, Fitzpatrick believes brokers would do well to put themselves ahead of the curve. “There is a need for brokers to get up to speed with technology and to learn how to interact with consumers who rely mainly on online and mobile means,” she says. “The world is quickly changing, and mort-

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PROFILE Name: Sharon Fitzpatrick Title: Executive vice president of corporate development Company: Paradigm Quest Years in the industry: 36 Career highlight: Launching the credit manager product at National Trust, the first all-in-one, collateral mortgage product that was the precursor to Scotiaâ&#x20AC;&#x2122;s STEP product and others

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PEOPLE

INDUSTRY ICON SHARON FITZPATRICK’S CAREER TIMELINE

2010

gage brokers need to embrace this change in order to market to and relate to Canadian mortgage consumers.”

How lenders can help However pressing the challenges of the future might be, there are other current – and very real – issues brokers are facing both on and offline these days. Fitzpatrick points to the ever more restrictive lending environment as a key example. “Placing a deal today that you know is good, and would have been a no-brainer a

and processes, along with improved communication, from the channel’s leading monoline lenders. This is critical, she says. “Mortgage brokers want to know that they can rely on your offering – there is a real opportunity, and I’d suggest an expectation, that monolines need to lead the industry with innovation. We don’t have competing IT resources that the banks do – we are singularly focused on the mortgage business and are viewed as the experts.”

“We can and should be constantly elevating the client experience to a new level for both the broker and borrower. Sure, the banks will eventually follow, but it is the monolines who are 100% committed to serving this market” few years ago, is a big challenge for brokers and lenders,” she says. “Clients don’t see themselves as ‘near prime,’ which typically means qualifying for a higher rate.” However, she adds, there is opportunity here for brokers to differentiate themselves from the big banks by providing guidance to these types of clients. “Educating clients on the changing regulatory environment and how to keep their credit profile healthy is the real opportunity for mortgage brokers to differentiate with advice,” she says. For her part, Fitzpatrick wants brokers to be able to turn to their lending partners for solutions to meet this challenge headon. She’s calling for consistency in policies

Fitzpatrick is also calling on lender partners to put the client first, which, in turn, will help improve the services both brokers and lenders can offer to Canadian homebuyers. In her mind, this how the broker channel will pull up to – and perhaps surpass – Canada’s big banks when it comes to mortgage lending. “We can and should be constantly elevating the client experience to a new level for both the broker and borrower,” Fitzpatrick says. “Sure, the banks will eventually follow, but it is the monolines who are 100% committed to serving this asset class and this market. It’s time for an investment to be made in our industry’s future.”

Paradigm Quest Six years ago, Fitzpatrick moved to Paradigm Quest, which outsources services for the mortgage industry. “It has been a breath of fresh air, after years in the banking industry.”

2001

Scotiabank Fitzpatrick eventually found herself back at Scotiabank, serving as managing director of national mortgage sales. “We built a phenomenal team at Scotiabank, in both the broker and MDM channels.”

1999

CitiFinancial Fitzpatrick moved on to become vice president of sales for the Ontario region for CitiFinancial..

1992

National Trust Fitzpatrick spent six years at National Trust, and calls the sale of the company one of her biggest disappointments. “We had a great team, with a powerful sales and service strategy in mid-rollout. We never had the chance to finish; it will always be the one that got away!”

1990

Confederation Trust Fitzpatrick next jumped to Confederation Trust, the banking arm of Confederation Life.

1980

Scotiabank Fitzpatrick’s introduction to the financial services industry came at Scotiabank, where she spent a decade in various branch, training, and product roles.

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22/04/2016 9:10:14 AM

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65% 58%

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of Canadians find it difficult to decide on the type of insurance to buy.**

43% 36%

of Canadians between the ages of 25 and 44 have no individual life insurance and 79% of Canadians have no individual disability insurance.**

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* Source: LIMRA, Canadian Billion Dollar Baby Revisited, 2014. ** Source: Manulife Financial Advisors Focus Spring/Summer 2013. Mortgage Protection Plan® (MPP) insurance is underwritten by The Manufacturers Life Insurance Company (“Manulife”) and administered by Benesure Canada Inc. (“Benesure”). Credit Security Insurance Agency Inc. (“CSIA”) and its appointed agents provide insurance sales services. Benesure and CSIA are wholly-owned subsidiaries of Manulife. ® Registered trademark of Benesure Canada Inc.: used under licence. Manulife and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under licence. Manulife, PO Box 4213, Stn A, Toronto, ON M5W 5M3.

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04/2016 16.1080

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22/04/2016 9:10:21 AM

FEATURES

COVER STORY: TOP 75 BROKERS

Now in its 10th year, CMP’s roundup of Canada’s top brokers once again saw a significant increase in funded volume

Last year was even better than 2014 for Canada’s top brokers. Our Top 75 racked up more than $6.5 billion in funded volume – an increase of nearly $1.5 billion over last year’s total for residential mortgages. After gathering, checking and doublechecking hundreds of submissions, we’ve once again narrowed down the Top 75

Brokers in Canada – and crowned a winner, whose 2015 volume of more than $350 million beat his 2014 total by upwards of $19 million. Both new brokers and veterans did well on this year’s list. Many brokers have appeared on the list before – and several of them significantly improved their position

from last year. Once again, we’ve also recognized the top 20 small market performers – those who do most of their work in areas where the average home price is $301,000 or less. All volume totals for the winning brokers were verified independently by each broker network.

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SPONSORED BY

METHODOLOGY

BROKERS BY PROVINCE

Top Broker

Alberta: 10 Collin Bruce

Quebec: 1 Manitoba: 10

Terry Kilakos

Viktor Schaefer Nova Scotia: 1 Ontario:37 British Columbia: 24 Sally Kwan

Saskatchewan: 1

Scott H. Bentley

Jim Tourloukis

Riel Syrenne

TOTAL FUNDED VOLUME

$6.5 billion

Each nominee for this year’s Top 75 Brokers list had to be employed as a mortgage professional, able to write loans, and their deals must have been personally initiated. They also had to provide a breakdown of their deals with verifiable lender contact information. All deals were residential, and while back-office support in processing the loans is acceptable, no other parties could receive commissions on these deals.

TOTAL NUMBER OF DEALS

16,075

18,065

2014

2015

MEN

$5.04 billion

AVERAGE NUMBER OF YEARS IN BUSINESS

11.4 2014

11.6 2015

64%

WOMEN

36%

TOTAL NUMBER OF YEARS IN THE BUSINESS 2014

2015

856 2014

872.5 2015

ABOUT OUR SPONSOR Verico proudly supports broker excellence. Verico’s mission is to continually strive to develop a network of Canada’s most trusted mortgage experts, who provide the highest standard of brokerage services to their customers and lender partners through a dedication to professionalism, advocacy and ethics. Operating at the highest degree of professionalism, brokers in the Verico network originate more than $13 billion annually. More than 200 mortgage business owners and entrepreneurs share Verico’s core values and choose to be a part of our network.

Our members have the freedom to build equity into their own brand and business without the handcuffs of a long-term contract. We encourage you to find out more about how Verico can support your business. Book an appointment at membership@ verico.ca.

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2016-04-22 9:55:58 AM

FEATURES

SPONSORED BY

COVER STORY: TOP 75 BROKERS PAUL MEREDITH

ADAM BAZUK

KELLY WILSON

Company: CityCan Financial

Company: DLC YBM Group

Company: The Wilson Team

Location: Toronto

Location: Barrie, Ont.

Location: Nepean, Ont.

Total volume: $49,211,366

Total volume: $51,264,919

Total volume: $51,359,329

Loans funded: 148

Loans funded: 191

Loans funded: 226

LING LEM

Company: Jayman Financial Location: Calgary Total volume: $49,538,996 Loans funded: 123

SCOTT H. BENTLEY

Company: Verico Premiere Mortgage Group Location: Halifax, NS Total volume: $50,767,216 Loans funded: 168

LENA OHANJANIANS

Company: Ultimate Mortgage and Finance Solutions ( Toronto, ON) Location: Toronto Total volume: $51,755,502 Loans funded: 115

Most rewarding deal of 2015: “Helping a family finance the purchase of a larger home to accommodate their teenage son. They were in a one-bedroom condo and are now proud owners of a two-bedroom condo. They didn’t have a deposit for their offer. We refinanced their existing home before they listed, secured the deposit funds, then ported and increased the mortgage to the new house. They were so thankful for the assistance, and knowing we made it possible for them to better their lives was what made this deal the most rewarding deal of the year for me.”

FRANCES HINOJOSA Company: DLC The Mortgage Source

MATT LEGGETT

Company: CanWise Financial Location: Calgary Total volume: $51,858,619 Loans funded: 147

Location: Oakville, Ont. Total volume: $51,213,731 Loans funded: 102

Best tip for new brokers: “Treat every mortgage and client the same no matter the size of the mortgage. The more happy customers, the more your name gets out there.”

www.mortgagebrokernews.ca

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2016-04-22 9:56:03 AM

Untitl

Calum Ross Calum CalumRoss Ross

VERICO The Mortgage Management Group Member since 2012

VERICO VERICO The The Mortgage Mortgage Management Management Group Group Member Member sincesince 20122012

# 1 in 2010 ##11 inin 2010 2010

“Joining VERICO was the best decision for my brokerage, as VERICO “Joining “Joining VERICO VERICO was was thethe best best decision decision fortable for mymy brokerage, brokerage, VERICO as VERICO brings the right support elements to the yet lets its as brokers brings brings thethe right right support support elements to thethe table table yetyet letslets its its brokers brokers shine and operate underelements their owntounique branding and business shine shine and and operate operate their their own own unique unique branding branding and and business business models. VERICO hasunder aunder visionary and highly ethical leadership team, models. models. VERICO VERICO has has a visionary a visionary and highly highly ethical ethical leadership leadership team, team, industry-leading marketing tools, and finally, an engrained commitindustry-leading industry-leading marketing marketing and and finally, finally, engrained engrained commitcommitment to continually improvetools, itstools, offerings andan toan stand behind them.” ment ment to to continually continually improve improve its its offerings offerings and and to to stand stand behind behind them. them. ” ”

Gord Gord GordPipkey Pipkey Pipkey VERICO Real Mortgage Services Inc. Member since 2010

VERICO VERICO RealReal Mortgage Mortgage Services Services Inc. Inc. Member Member sincesince 20102010

# ##1 11ininin2011 2011 2011

“Being part of a national network has added depth to our activities in “Being “Being part part of aofnational a national network has has added added depth to to ourmore our activities activities in in the market area. Just the network branding alone has depth developed awarethethe market market area. area. Just Just the the branding branding alone alone hashas developed developed more awareawareness and recognition from our existing clients and realtormore communiness ness and recognition recognition from from our existing existing clients clients and and realtor realtor communicommunity. Weand are very appreciative ofour the efforts of Sean Widdess, Director of ty. ty. WeWe areare very very appreciative appreciative of the ofand the efforts efforts of Sean ofatSean Widdess, Widdess, Director Director Member and Lender Relations, the team VERICO Canada in of of Member Member and and Lender Lender Relations, Relations, and and thethe team team at at VERICO Canada Canada in in supporting our business and our partnership. ” VERICO supporting supporting ourour business business and and ourour partnership. partnership. ” ”

Jim Jim JimTourloukis Tourloukis Tourloukis

VERICO Advent Mortgage Services Inc. Member since 2013

VERICO VERICO Advent Advent Mortgage Mortgage Services Services Inc. Inc. Member Member sincesince 20132013

# ##1 11ininin2013 2013 2013

“I am thrilled to be back and I’m blown away! The move back to VERICO has paid dividends inI’m spades. Within 24 hours ofback turning onVERICO “I am “Ialready am thrilled thrilled to be to be back back andand I’m blown blown away! away! The The move move back to VERICO to VERICO Dynamics and its automatic marketing emails, I received 5 real hashas already already paid paid dividends dividends in spades. in spades. Within Within 24 24 hours hours of turning of turning on on deals and another 76and inquiries from leads. Thoseemails, results speak for5themVERICO VERICO Dynamics Dynamics and its its automatic automatic marketing marketing emails, I received I received real 5 real selves. ” and deals deals and another another 76 76 inquiries inquiries from from leads. leads. Those Those results results speak speak forfor themthemselves. selves. ” ”

CONTACT OUR MEMBERSHIP TEAM TO CONTACT CONTACT OURMEMBERSHIP MEMBERSHIP TEAM TEAM TOTO FIND OUTOUR WHY CANADA’S TOP BROKERS FIND FINDOUT WHY WHYCANADA’S CANADA’S TOPTOPBROKERS BROKERS JOIN THEOUTVERICO NETWORK. JOIN JOINTHETHEVERICO VERICONETWORK. NETWORK. 1.866.983.7426 | info@verico.ca | www.verico.ca Each VERICO Broker is an independent owner and operator. 1.866.983.7426 1.866.983.7426 | info@verico.ca | info@verico.ca | www.verico.ca | www.verico.ca

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Each Each VERICO VERICO Broker Broker is an is independent an independent owner owner and operator. and operator. Untitled-1 1 Untitled-1 Untitled-1 1 1 25 22-49_Top 75.indd

2016-04-13 1:55:21 PM 2016-04-13 2016-04-13 1:55:211:55:21 PM PM 25/04/2016 10:45:48 PM

FEATURES

COVER STORY: TOP 75 BROKERS MICHELLE GHAZOULI

JASON GEORGOPOULOS Company: DLC Estate Mortgages Location: Toronto

Company: MICO Financial

Total volume: $53,376,797

Location: Newmarket, Ont.

Loans funded: 117

Total volume: $52,000,000 Loans funded: 133

Best tip for new brokers: “Versatility of knowledge translates to versatility in speech and thereby the attraction, trust and retention of clients. As well, fish; don’t hunt – pursuing onesies can be difficult and onerous. Positioning oneself in a pool from which to fish is a lot more advantageous.”

MAX OMAR

Company: DLC Capital Region Location: Edmonton Total volume: $53,656,854 Loans funded: 160

63 ANGELA ZHANG

Company: AZ Mortgage Solutions Location: Milton, Ont. Total volume: $52,439,599 Loans funded: 152

DEB WHITE Company: White House Mortgages Location: Vernon, BC

What being a Top 75 Broker means: “It means a lot to me. The recognition comes from the peers in the industry who understand the challenges we are facing every day. I love my work as a mortgage broker and enjoy dealing with the clients on daily basis. Besides the financial rewards, it gives me a great sense of accomplishment when each deal is closed and the clients are happy. The Top 75 Broker nomination is a huge motivation for me to continue to improve and succeed.”

Total volume: $53,945,339 Loans funded: 201

What being a Top 75 Broker means: “Being a Top 75 broker is such an honour. To be from a small town and to be surrounded by such amazingly successful brokers is very humbling. When I decided to become a mortgage broker, I wanted to be able to assist at least 10 clients a month; that was my goal! To have reached that goal and then some is so rewarding.”

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2016-04-22 9:56:13 AM

SPONSORED BY

JODY HENRY Company: DLC Arrowsmith

ANNE BRILL Company: Centum Metrocap Wealth

Location: Qualicum Beach, BC

Solutions

Total volume: $54,001,930

Location: Toronto

Loans funded: 158

Total volume: $55,000,000

RONALD LEE Company: The Mortgage Centre iBroker Power Capital Location: Toronto Total volume: $54,224,336 Loans funded: 132

Best tip for new brokers: “Focus on truly helping the client, and spend quality time with them to really learn about them and their needs. Clients need you to have their best interest at heart, and trust you to protect them from pitfalls such as confusing, costly terms and jargon. Over the years, much of my business has grown based on referrals, because clients trust me to give the best to them like I would my own friends and family.”

SHAUN ZIPURSKY

Loans funded: 151

Best tip for new brokers: “Keep doing all your legwork and cold-calling. This will help you meet your quotas. Always work on your sales ability and knowledge of the lenders’ products. This will help your funding ratios and application completions.”

Company: DLC City Wide Mortgage Services Location: Vancouver Total volume: $54,882,238 Loans funded: 118

CARA SAVEGE

Company: Invis Location: Vancouver Total volume: $55,331,402 Loans funded: 93

What being a Top 75 Broker means: “I’m honoured that my years of hard work and dedication in the industry are being acknowledged. From the day I started at Vancity Credit Union as a 20-year-old, I told everyone I wanted to be a mortgage specialist – and it just shows that if you know what you want, believe in it and put in the work, anything is possible!”

www.mortgagebrokernews.ca

FEATURES

SPONSORED BY

COVER STORY: TOP 75 BROKERS DEBBIE BELAIR

Company: DLC Smart Debt Location: Ottawa Total volume: $57,877,800 Loans funded: 208

RIEL SYRENNE

Company: TMG The Mortgage Group Prairies Location: Saskatoon, Sask. Total volume: $60,305,886 Loans funded: 205

GEOFF LEE

Company: GLM Mortgage Group Location: Abbotsford, BC

Most rewarding deal of 2015: “I helped a client who was recently renting a condo. A tenant below them started a fire while barbecuing, and it spread up to their deck, eventually destroying their condo and all belongings. They initially went to their banks – who turned them down – and they felt hopeless. With all our options, the deal was easily approved, and it was the first step for the clients to start getting their lives back together.”

Total volume: $55,738,637 Loans funded: 42

Challenges that might impact brokers in the future: “Mortgage brokering is not for the faint-hearted, and to be able to stand up to the pressures of future changes and new standards could narrow the playing arena of this industry. With the market taking a turn toward multiple offers … there have to be ever-evolving approaches to making sure clients are in a solid position so that they are looked at favourably by the lenders. Not to mention changes in actual legislation for the mortgage broker, such as commission disclosure, that seem inevitable.”

KAREN GARRETT

Company: Sea to Sky Mortgages Location: Whistler, BC Total volume: $56,000,000 Loans funded: 125

ROY COCCIOLLO

Company: Your Mortgage Your Way Location: Toronto Total volume: $57,000,000 Loans funded: 127

www.mortgagebrokernews.ca

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22/04/2016 3:59:32 PM

FEATURES

SPONSORED BY

COVER STORY: TOP 75 BROKERS GERT MARTENS

Company: DLC HT Mortgages Location: Grande Prairie, Alta. Total volume: $62,854,674 Loans funded: 213

TRACY VALKO

Company: DLC Forest City Funding Location: Kitchener, Ont. Total volume: $63,071,071 Loans funded: 258

RON LEFEBVRE Company: Invis Location: Edmonton Total volume: $60,770,255 Loans funded: 186

What being a Top 75 Broker means: “It primarily means I am trusted by my clients, friends and family to help them achieve their mortgage goals. There is no better feeling than having someone call you and say you helped their friend or colleague and were amazing to deal with. To be Top 75 is a bit of a measuring stick on how many people have trusted me along the way to help them with one of the largest financial decisions of their lives.”

ENZA VENUTO

What being a Top 75 Broker means: “It is truly an exceptional honour to be a part of the Top 75 for 2016. There are so many incredible brokers in our industry, and to be a part of the ‘best’ in the industry is such an incredible experience. I truly love what I do, helping people each and every day. Being able to go into my office each day and love what I do is such a blessing.”

Company: Centum Streetwise Mortgages Location: Vaughan, Ont. Total volume: $62,000,000 Loans funded: 317

Best advice for new brokers: “Focus on understanding what you have to offer and what will benefit the client. Understand, listen and give added value to your client interaction. Know your products inside out and what is the best for them – not for you.”

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 30

2016-04-22 9:56:37 AM

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22/04/2016 3:59:39 PM

FEATURES

COVER STORY: TOP 75 BROKERS DARA FAHY

PEARL KWAN

Company: DLC Casa Mortgage

Company: DLC City Wide Mortgage

Location: Vancouver

Services

Total volume: $64,811,439

Location: Vancouver

Loans funded: 102

Total volume: $63,459,481 Loans funded: 127

Most difficult deal of 2015: “A commercial deal with the subject property being a multi-unit residential building. It took me one year to get it done. It is a CMHC-insured loan, and just because CMHC is involved, everything became so difficult.”

GREG MARTEL

Company: DLC Zilla Mortgage Corp. Location: Victoria, BC Total volume: $64,400,000 Loans funded: 190

ELVIS HUI

Company: Guaranti Mortgages Location: Vancouver Total volume: $64,770,434 Loans funded: 153

JEFF ATTWOOLL

Company: Verico K-W Mortgage Location: Cambridge, Ont. Total volume: $65,796,704 Loans funded: 241

Challenges that might impact brokers in the future: “The recent legislation passed in BC that forces brokers to disclose their commission on every deal is a bit of a factor. If this comes across the country, clients may receive the wrong message about the advantages brokers pose for mortgage consumers.”

www.mortgagebrokernews.ca

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2016-04-22 9:56:53 AM

SPONSORED BY

JAMES HARRISON Company: DLC Home Capital Solutions Location: Toronto Total volume: $67,000,000 Loans funded: 132

Best tip for new brokers: “Always return calls and emails as quickly as possible. Offer to help Realtors and their clients with any questions they have, 24/7. Be a source of information. Never beg for business.”

TODD PAYZANT

Company: DLC The Mortgage Source

Company: Neighbourhood Dominion Lending Centres

Location: Ottawa

Location: Sudbury, Ont.

Total volume: $67,426,715

Total volume: $66,288,172

Loans funded: 261

Loans funded: 265

SHARNJIT SINGH GILL Company: Verico Superior Mortgage

NICK KAAKI

Most important deal of 2015: “Any time I work with a client with bad credit, the deal is already more challenging. But working with these clients closely to improve their credit and helping them finance their dream home is the most rewarding feeling.”

Location: Surrey, BC Total volume: $66,849,300

Loans funded: 143

KURT HENRY

Secret to his success: “We are getting our 85% of business from our repeat clients. This has led us to be ranked as one of the country’s top brokers by CMP seven years in a row. We’ve been doing business in the old-fashioned way – first by getting the client’s trust, and then doing what is right for our clients.”

Company: The Mortgage Centre Durhammortgage.com Location: Courtice, Ont. Total volume: $68,746,000 Loans funded: 276

Best tip for new brokers: “Have a system in place to facilitate relentless follow-up with clients and referral partners, no matter how busy you are. This requires us to find out when and how to hire help. We can’t do it all on our own. In my view, systems, processes and help are all required in order to provide relentless follow-up to clients and referral partners. That is our secret to creating a great client experience and therefore creating growth.”

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 33

2016-04-22 9:56:58 AM

FEATURES

SPONSORED BY

COVER STORY: TOP 75 BROKERS SANDRA LASTOVIC

Company: The Mortgage Centre Complementary

DANIELLE HILL

Company: Neighbourhood Dominion Lending Centres

Real Estate Services

Location: Toronto

Location: Guelph, Ont.

Total volume: $71,000,000

Total volume:

Loans funded: 232

$70,445,835 Loans funded: 265

JORDAN D’HAESE Company: Jayman Financial Location: Calgary Total volume: $71,978,464 Loans funded: 191

What being a Top 75 Broker means: “Recognition of being among the top brokers in the industry year over year is something that is a testament to our team and clients.”

NARISH MAHARAJ 38 Company: DLC Mortgage Mentors Location: Edmonton Total volume: $69,342,834 Loans funded: 254

SHABBIR PATEL

Company: DLC A Better Way Location: Surrey, BC Total volume: $70,000,000 Loans funded: 135

Secret to his success: “I am clientfocused. I like to stay connected with past clients, and this is great for referrals. I am also very connected with my COI – Realtors, financial planners, accountants, bankers and community leaders. These COI were the major contributor to my success. And, of course, the extra mile I go for clients to get their deal done. Another major factor was my office, DLC A Better Way, which has great relations with all industry lenders, which gave us access to all kinds of mortgage product. DLC A Better Way also gave us many business sourcing opportunities, which resulted in a much stronger industry network.”

BERNADETTE LAXAMANA

Company: Verico Xeva Mortgage Location: Burnaby, BC Total volume: $74,672,983 Loans funded: 198

Challenges that might impact brokers in the future: “Thinking that the market is limited and opportunities are scarce. That will be a self-fulfilling prophecy.”

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 34

2016-04-22 9:57:03 AM

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FEATURES

COVER STORY: TOP 75 BROKERS VIKTOR SCHAEFER

Company: VS Solutions Location: Steinbach, Man. Total volume: $81,259,150 Loans funded: 311

Best tip for new brokers: “No matter what, always answer your clients and business partners promptly. If you don’t have an answer yet, let them know, but at least answer.”

SABEENA BUBBER

Total volume: $75,750,739

MACKENZIE GARTSIDE

Loans funded: 155

Company: Select Mortgage Group

Company: Xeva Mortgage North Shore Location: West Vancouver, BC

Location: Courtenay, BC

Best tip for new brokers: “Provide value to everyone around you, and don’t break anyone’s confidence in you. Becoming a successful mortgage broker is about growing in knowledge and gaining experience. As a new broker, you won’t know everything, so surround yourself with people who know more than you, and work to be a trusted resource for not only your clients, but others in your network as well.”

TERRY KILAKOS

Total volume: $77,000,000 Loans funded: 401

KYLE GREEN

Company: Mortgage Alliance Meridian Mortgage Location: Port Coquitlam, BC Total volume: $78,000,000 Loans funded: 232

Company: North East Mortgages Location: Ville St. Laurent, Que. Total volume: $78,308,863 Loans funded: 281

What being a Top 75 Broker means: “It means that, from humble beginnings, against all odds, I have been able to make true the dreams and goals that I had set for myself and my family.”

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 36

2016-04-22 9:57:08 AM

SPONSORED BY

DAVID GRIFFIN

MARK GOODE

Company: DLC Griffin Financial Group

Company: Mortgage Man DLC

Location: Peterborough, Ont.

Location: Orillia, Ont.

Total volume: $81,773,541

Total volume: $86,544,337

Loans funded: 371

Loans funded: 389

LUISA HOUGH Company: Verico Xeva Mortgage

ANGELA CALLA

Company: DLC National

AMEERA AMEERULLAH

Location: Port Coquitlam, BC

Company: Canada Mortgage and Financial Group

Total volume: $81,789,849

Location: Mississauga, Ont.

Loans funded: 262

Total volume: $85,000,000

Company: DLC The Mortgage Source Location: Ottawa Total volume: $84,447,810 Loans funded: 340

What being a Top 75 Broker means: “It confirms that we have one of the best teams in the Canadian mortgage industry.”

Total volume: $87,492,159 Loans funded: 190

Loans funded: 78

NICOLE DRUMMOND

Location: Surrey, BC

Most rewarding deal of 2015: “My most rewarding deal for 2015 was a single woman with a 7-year-old boy who came to me for a mortgage [when she] got turned down by the bank. This woman was told by the bank rep to find a better job to support herself and her son. She was a musician who worked five to six days a week on her instrument. When I met her, she was defeated and embarrassed, as she thought she was wasting my time. In the end, I was able to get her a mortgage, and when I met her son at the signing, he asked if I was the one who helped him and his mom have a home. It brought tears to my eyes. There are days when this industry is tough – and then there are days like this that make it all worthwhile.”

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 37

2016-04-22 9:57:17 AM

FEATURES

SPONSORED BY

COVER STORY: TOP 75 BROKERS JORDI BROWNE

JAMES LOEWEN

Company: Verico Dreyer Group Preferred

Company: Loewen Group Mortgages

Financing

Location: Burlington, Ont.

Location: Chilliwack, BC

Total volume: $94,538,484

Total volume: $87,814,957

Loans funded: 277

Loans funded: 283

Secret to his success: “I am blessed to have an amazing team, and we’ve added another two incredible members, providing greater support, customer service and turnaround for our clients and business partners.”

SUSIE INGLIS

Company: DLC Mortgage Evolution Location: North Vancouver, BC Total volume: $89,737,810 Loans funded: 191

SKYE MCLEAN

SANJEEV GUPTA

HARMAN ARORA

Company: Axiom Mortgage Solutions

Company: Centum Champions

Company: DLC House

Location: Calgary

Location: Mississauga, Ont.

Location: Calgary

Total volume: $93,464,646

Total volume: $94,965,129

Total volume: $97,476,119

Loans funded: 250

Loans funded: 252

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 38

2016-04-22 9:57:41 AM

22-49_Top 75-SUBBED2.indd 39

22/04/2016 4:00:01 PM

FEATURES

COVER STORY: TOP 75 BROKERS IRINA ANTIPOVA

MICHAEL WANG

Company: Assured Mortgage Services

Company: The Mortgage Centre

Location: Toronto

Focal Mortgage

Total volume: $99,561,874

Location: Richmond

Loans funded: 212

Hill, Ont.

Total volume: $106,000,000

JOANNA LANG

Loans funded: 220

Company: Verico Premiere Mortgage Centre The Lang Team Location: Toronto Total volume: $100,121,651 Loans funded: 173

What being a Top 75 Broker means: “As I am a relative newcomer to the broker channel, being a Top 75 Broker means that my activities have generated the desired results. I have been truly humbled by the support I’ve received from my clients and business partners during my transition from the bank channel to the broker channel, and I look forward to a number of great years to come.”

SERGUEI TOTROV Company: DLC Your Mortgage Choice Location: Toronto Total volume: $101,161,902 Loans funded: 289

Challenges that might impact brokers in the future: “Competition with big banks that don’t work with brokers. Also, different products that can be offered by big banks on branch level and can’t be offered by brokers.”

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 40

2016-04-22 9:57:45 AM

SPONSORED BY

DUSTAN WOODHOUSE

NICHOLAS L’ECUYER

Company: Canadian Mortgage

Company: The Mortgage

Experts

Wellness Group

Location: Vancouver

Location: Barrie, Ont.

Total volume: $111,603,026

Total volume: $119,771,818

Loans funded: 227

Loans funded: 433

Most rewarding deal of 2015: “I worked with a number of people in 2015 who were facing difficult personal challenges – either health-, relationship- or business-related, often all three. In every case, the only thing that mattered was helping that client get to a better place, both financially and emotionally. In some cases, the best files I assisted with were the ones where I helped the client restructure with their existing lender, saving them tens of thousands in potential penalties, and while not actually earning any income, the emotional payoff was huge. And in the long run, those people become raving fans.”

Most rewarding deal of 2015: “There is no one deal that was most rewarding. In 2015, we truly became a people company. We know that culture trumps strategy every time, so we worked hard to empower our people, empower our partners and empower our clients. By encouraging our people to use their voice, we were able to provide our family with an environment where their thoughts, their creativity and their ideas are welcomed. As a result, we grew something that is greater than what any one of us could achieve on our own. We have taken something very ordinary and made it exceptional. This, in itself, is our standout achievement and what we are most proud of in 2015.”

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2016-04-22 9:57:36 AM

FEATURES

SPONSORED BY

COVER STORY: TOP 75 BROKERS WIN LUI

Company: Clear Trust Mortgages Location: Vancouver Total volume: $120,816,603 Loans funded: 307

SHAWN STILLMAN

Company: Mortgage Outlet Location: Toronto Total volume: $121,851,689.09 Loans funded: 322

SHAWN ALLEN

Company: Matrix Mortgage Global Location: Toronto Total volume: $145,000,000 Loans funded: 557

CHRISTINE XU

Company: Mortgage Architects Location: Markham, Ont. Total volume: $167,700,000 Loans funded: 406

SCOTT TRAVELBEA

Company: Travelbea & Associates

Most rewarding deal of 2015: “A grateful client, after mortgage closing, not only happily paid us the broker fee, but he also gave extra bonuses in the ‘red pockets’ to me and my assistants who helped his file.”

Location: Victoria, BC Total volume: $152,552,218

Loans funded: 402

SALLY KWAN

Secret to his success: “Pure and simple hard work. Although it’s been an incredibly busy year, we’ve taken the time to focus on streamlining and improving our renewal process for existing clients with great success.”

Company: ETC Mortgage

Location: Vancouver Total volume: $208,415,999 Loans funded: 133

www.mortgagebrokernews.ca

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2016-04-22 9:57:55 AM

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2016-04-13 3:52 22/04/2016 4:00:17 PMPM

FEATURES

COVER STORY: TOP 75 BROKERS 3

DAVE BUTLER

JIM TOURLOUKIS

Company: Butler Mortgage

Company: Advent Mortgage

Location: Mississauga/

Services

Hamilton, Ont.

Location: Unionville, Ont.

Total volume: $276,486,210.59

Total volume: $320,700,000

Loans funded: 864

Loans funded: 645

You’ve had a great year – what do you attribute your success to? 2015 was a very interesting year. Our year-over-year increase in production was what we expected. However, it felt like we worked twice as hard as the year before. The many changes on the lender side in terms of underwriting and document collection made 2015 a year to remember, one to learn and make adjustments from. I hired three extra staff members at the beginning of this year just to make sure that we can keep up our service levels in this tougher lending environment.

You’ve had a great year – what do you attribute your success to? There are many factors to which I attribute my success: (1) hard work; (2) I truly enjoy what I do; (3) the best team in the industry. I would not be here if not for John Papadopoulos, Jerry Danese and Rocco Mongelli. And (4), most importantly, a loving and understanding wife and children who put up with interrupting calls from clients at all hours.

What tip would you give new brokers who strive to achieve impressive volume? A tip for all new brokers would be to find a good mentor. You need someone to bounce questions off of and someone you can run ideas by. What are the challenges that might impact volume growth for brokers in the future? Certainly when interest rates get back into the 4’s and 5’s, we could see some of our industry growth get scaled back. We’ve had it really good with interest rates for a long time, a really long time. Make sure you are keeping your client database in check, as that will be a big help for all brokers when the market isn’t so hot with new business like it is today. What was your most rewarding deal in 2015? The most rewarding deal for me in 2015 was actually not even a mortgage. It was a personal loan to a client of mine who needed money to pay legal fees in a custody case. What does being a Top 75 Broker mean to you? Being a Top 75 Broker simply means that our efforts are paying off. The main reason I still put our numbers out there after all these years is because I want other up-and-coming brokers to see that there are no limits to the amount of volume you can do. When I first started in this business, I was always intrigued to know what volume other brokers were writing. Being able to have a glimpse at what the top of the mountain looked like had a great impact on me.

What tip would you give new brokers who strive to achieve impressive volume? It is all about the client. You need to find value for the client, and once you do, there is no reason why you can’t succeed. Take the time find the value – and once the client sees this, you all win. What are the challenges that might impact volume growth for brokers in the future? Truly, I do not see any challenges that will impact broker volumes. Change is inevitable, and a lot of it will require brokers to work harder and smarter to get their deals done. There is so much business and opportunity in this industry that you cannot help but be successful as long as you are able to adapt and change with the market. We’re all fortunate to be in this great industry. What was your most rewarding deal in 2015? My most rewarding deal was with a client who had health issues, which pushed them to a B lender, and they were stuck there for a few years. We were able to make the case to an A lender, which was approved, and it dropped their costs to less than half. This client is now back on track with his finances – enough so that he can focus on his health. This client emails me every month when his mortgage payment goes out, and he still cannot believe the deal we were able to secure for him. What does being a Top 75 Broker mean to you? Being a Top 75 Broker is a terrific accolade for another successful year and our hard work.

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 44

2016-04-22 9:57:58 AM

SPONSORED BY

1 COLLIN BRUCE Company: Dominion Lending Centres Mortgage Mentors Location: Edmonton= Total volume: $350,675,973 Loans funded: 1,093

Collin Bruce is a mortgage power player. This year marks his third year in a row at the number-one spot on CMP’s Top 75 Brokers list, and the sixth year in a row he’s been in the top five. The broker-owner of Dominion Lending Centres Mortgage Mentors, Bruce racked up a staggering $350,675,973 in 2015 – more than $19 million more than his 2014 volume. Here’s what Bruce has to say about his continued success in a challenging field. Your 2015 was even better than your 2014. What’s your secret? We really took steps to build our homebuilder relationships and repeat and

referral client business. With the potential doom and gloom of low oil prices, we really looked to increase this business. What’s the best advice you can give new brokers? Always do what is right for the client, and never take a client or lender for granted. I always make that last phone call even if I want to go home! Do you see any challenges for brokers on the horizon? Discount rate websites and brokers who base their business on bought-down rates. It is a race to the bottom, and I am afraid it will

put a lot of smaller brokers out of business. What was your most rewarding deal of 2015? The deals that are the most rewarding are clients who have had poor credit in the past and we have worked with them to rebuild it. One client, we started working with his credit two years ago. He cried when we got him approved this year. What does being a Top 75 Broker mean to you? I am still surprised to see my name on the list! I can remember not so long ago thinking that the Top 75 list was unachievable. I am extremely proud to be on it.

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 45

2016-04-22 9:57:59 AM

FEATURES

SPONSORED BY

COVER STORY: TOP 75 BROKERS

TOP 20 SMALL MARKET BROKERS Small market brokers step into the spotlight again this year as CMP presents its fifth Top

Mortgage Team

$1.16 billion

agents who did a minimum of 80% of their

must be MLS-identified cities, towns or regions.

Company: Invis Williams & Associates

20 Small Market Brokers list. This list was open to all brokers and deals in markets where the average home price is at or below $301,000. The markets

LONA WILLIAMS

TOTAL FUNDED VOLUME

Market: Cranbrook, BC Total volume: $34,728,401

$974 million

Loans funded: 115

ROBERT JENNINGS

TOTAL NUMBER OF DEALS

Company: East Coast Mortgage Brokers Market: St. John’s, NL Total volume: $35,679,041 Loans funded: 156

3,985 2014

4,109 2015

2014

SHERRI HISLOP

2015

Company: Alliance Mortgage Group Market: Stratford, Ont. Total volume: $37,008,893

TAMMY CONLON CARLOMUSTO

TYLER YATES

Loans funded: 173

Company: Verico The Mortgage Wellness Group

Company: Verico Premiere Mortgage Centre

Market: Sarnia, Ont.

Market: St. Catharines, Ont.

Total volume: $22,646,957

Total volume: $13,910,147

Loans funded: 121

Loans funded: 66

LESLIE PENNEY

Company: Mortgage Alliance Provincial

Market: St. Catharines, Ont.

Market: St. John’s, NL

Total volume: $34,231,526

Total volume: $15,000,000

Loans funded: 151

Loans funded: 61

Company: DLC Easy Street Mortgages

Mortgage Group

LYNDA RIDDELL

KEVIN LIDDIARD

DUSTIN JAMES

JIVAN SANGHERA

Company: Verico Market Mortgages

Company: DLC Premier Financial Group

Company: DLC Home Capital Solutions

Market: Peterborough, Ont.

Market: Kawartha Lakes, Ont.

Market: St. Catharines/Niagara, ON

Total volume: $20,375,987

Total volume: $34,255,224

Total volume: $37,107,994.98

Loans funded: 96

Loans funded: 168

Loans funded: 101

www.mortgagebrokernews.ca

22-49_Top 75-SUBBED2.indd 46

2016-04-22 9:58:13 AM

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22/04/2016 4:00:28 PM

FEATURES

SPONSORED BY

COVER STORY: TOP 75 BROKERS MELODIE LEWIS

MATT LEGGETT

VIKTOR SCHAEFER

Company: DLC Regional Mortgage Group

Company: CanWise Financial

Market: Central Alberta

Market: Alberta and Saskatchewan

Total volume: $39,630,954.05

Total volume: $51,858,619

Company: VS Solutions

Loans funded: 109

Loans funded: 147

Market: Winnipeg, Man.

Total volume: $81,259,150

KEN LANKIN

DEB WHITE

Company: Mortgage Intelligence Niagara

Company: White House Mortgages

Market: Niagara Falls, Ont

Market: Vernon, BC

Total volume: $43,157,600

Total volume: $53,945,339

Loans funded: 201

Challenges that might impact brokers in the future: “Our governing bodies continue to strive for improvement. They are working to remove those from the industry who have created issues. So, if lenders and brokerages do the same, we as mortgage professionals will grow. If we do not address the issues reported, it could be tougher times. Some major banks and credit unions have hired more mortgage staff; others have cut – who knows how to take that? Do our job right, and I believe we can continue to grow.”

Challenges that might impact brokers in the future: “There have been so many changes in the industry, and I think the biggest challenge is going to be keeping up! I feel as long as the lenders and brokers work together as a team, we can adapt and ensure that our clients will still get the best results and advice from working with a broker. Coming together is a beginning. Keeping together is progress. Working together is success.”

JANET MACDONALD

TODD PAYZANT

Loans funded: 311

Challenges that might impact brokers in the future: “The biggest challenges will always be bank policy changes at the hands of federal regulation. Most clients feel overwhelmed by the amount of documentation required to complete a mortgage.”

DAVID GRIFFIN

Company: Griffin Financial Group Market: Peterborough, ON Total volume: $81,773,541 Loans funded: 371

Company: Neighbourhood Dominion Lending

Company: Kingston Mortgage Solutions

Centres

Market: Kingston, Ont.

Market: Sudbury, Ont.

Total volume: $44,463,115

Total volume: $66,288,172

Loans funded: 193

Loans funded: 265

SCOTT H. BENTLEY Company: Verico Premiere Mortgage Group

MARK GOODE

Market: Halifax/Bedford/Dartmouth/Lower

Company: Mortgage Man DLC

Sackville, NS

Market: Orillia, Ont.

Total volume: $50,767,216

Total volume: $86,544,337

Loans funded: 168

Loans funded: 389

www.mortgagebrokernews.ca

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2016-04-22 9:58:28 AM

SMART

RMG Mortgages is a division of MCAP Financial Corporation | Ontario Mortgage Brokerage #10600 | Ontario Mortgage Administrator #11790

SOLUTIONS. ADVICE. MOVE.

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Visit www.RMGmortgages.ca or contact one of our Business Development Managers to learn how RMG Mortgages can help you create homeownership opportunities.

22/04/2016 4:00:35 PM

SPECIAL PROMOTIONAL FEATURE

APPRAISALS

7 myths about residential appraisals They’re an essential part of any real estate transaction, but do you really know the facts about appraisals?

MORTGAGE BROKERS work with professional real estate appraisers on a regular basis to obtain a market value of a property to finance or refinance their clients’ mortgages. This value is a critical piece of information, and there is a lot at stake in its accuracy – for the broker, the lender and the consumer. Obtaining a reliable appraisal that is unbiased, independent, and based on comprehensive research and analysis is key to the success of this transaction. “There is an overall misunderstanding about how an appraiser arrives at a market value, sometimes leading to a misconception that the ‘appraiser killed the deal’,” says Keith Lancastle, CEO of the Appraisal Institute of Canada. “We need to do a better job at educating Canadians about the important role a designated appraiser plays in protecting consumers and mitigating risks for the lending industry.” The following are some common myths that the Appraisal Institute of Canada would like to debunk.

Myth #1: The purchase price of the property is the same as the appraised market value. Reality: The appraised market value may

not be the same as the selling price of the home – it may be higher; it may be lower. Individual real estate markets can be volatile and are impacted by the economic conditions of the market. For example, in a seller’s market, or when there are multiple offers on a home, an inflated selling price above the appraised market value can result. Bidding wars may skew the true market value of the home when similar substitute properties are not available in the market. A multiple-offer scenario may be good for the seller, the real estate agent and the mortgage broker in the short term, but in the long term, the purchaser may face challenges when selling the property in less active market conditions. Having an opinion of value that is obtained through comprehensive research of the market over time provides the property owner and lender with a realistic value. Furthermore, the appraiser may view the purchasing contract in order to ensure that chattels, or personal property, are not included in the agreed purchase price so that the appraised value can truly reflect the value of the real estate only. Consumers and lenders should be wary of selling prices that are inflated – either through multiple offers or other local market factors.

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Myth #2: Appraisers only consider past market/sales data when determining the value of a property. Reality: To provide a reliable market value, AIC-designated appraisers consider a number of factors, such as: • Sales of the subject property within the last three years • Past sales of properties comparable to the subject property • Comparable properties that are currently for sale • Current market conditions

“We need to do a better job at educating Canadians about the important role a designated appraiser plays in protecting consumers and mitigating risks for the lending industry” Keith Lancastle, Appraisal Institute of Canada Adjustments are made based on the analysis of comparable properties, which rely on market-derived elements of comparison, including property size and other factors. One of the key requirements under Canadian Uniform Standards of Professional Appraisal Practice [CUSPAP] is for the appraiser to conduct a three-year sales history and a one-year listing history search and analysis of the subject property. This data considers private sales (non-MLS) transactions as well as those on MLS. Other data sources, such as title and property registries, are also reviewed to ensure the most comprehensive and reliable market value is obtained.

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22/04/2016 9:02:08 AM

SPECIAL PROMOTIONAL FEATURE

APPRAISALS

Myth #3: The appraiser is influenced by the client’s need for a specific value. Reality: An AIC-designated appraiser has a professional and ethical responsibility to provide an independent and unbiased opinion of the value of a property. Their work will produce an estimate of market value as the most probable price level – irrespective of the selling price or a desire to ‘meet’ a certain value. All AIC members must comply with AIC’s CUSPAP, Code of Conduct and Regulations. As professionals, AIC members are obligated to prepare their work in compliance with these standards.

Myth #4: The appraisal can be shared with the homeowner since they pay the appraisal fee. Reality: The appraiser’s client is the individual, entity or organization for whom the appraisal is prepared (either verbally in person, or by telephone, fax, internet or email), not necessarily the person or organization that pays for the appraisal. For example, if a mortgage broker requests an appraisal, they may be identified as the party ordering the report in the ‘Requested By’ section to make it clear that they are neither the client nor the intended user. The client will be identified by the appraiser – for example, the lending institution name. The intended user section of the report is the area of the appraisal where an individual, entity or an organization may be designated to rely on the appraisal report as acknowledged and confirmed by the client. Appraisers pledge to uphold the confidential nature of the client relationship, similar to other professional confidentiality agreements with lawyers and accountants. This relationship is outlined in CUSPAP. The appraisal report will not be shared with the homeowner without the consent of the client.

Myth #5: Appraisal management companies are the appraiser’s clients. Reality: When a lending institution requires an appraisal report on a property, they will

The best option to minimize the lending risk for residential properties is to have an on-site appraisal and on-site collection of data conducted by a qualified appraiser. An on-site appraisal will determine the existence

The appraiser’s work will produce an estimate of market value as the most probable price level – irrespective of the selling price or a desire to ‘meet’ a certain value often engage an appraisal management company [AMC] to facilitate the appraisal process on their behalf. AMCs offer their clients (typically the lending institution) a single point of contact for the management of the appraisal function and have a contractual relation with both the lender and the appraiser. Depending on the contractual arrangement between the appraiser and the AMC, there may be limits to the communication and disclosure that the appraiser can make to the client and/or to the lender.

Myth #6: Automated valuation models are more accurate than an on-site appraisal. Reality: Automated valuation models [AVMs] provide an assessment of property values based on the compilation of sales data. Although they provide some important information, an over-reliance on AVMs poses a risk for lenders, consumers and the financial system. Why? Well, a value generated by an AVM will not be able to consider certain elements that are critical to a value of a property, including: • Maintenance provided to the property and its current condition • Updated data on the location of the property and its surroundings • Intangible features of the property

of the property (including the buildings), the occupancy, the condition of the property, the neighbourhood characteristics and other key factors that are critical to the value. This due diligence ensures that the decision-maker has a reliable appraisal report with a wellsupported opinion of value.

Myth #7: When a homeowner is completing renovations, they can expect that the value of their home will rise proportionately to the investment. Reality: The return on investment depends on the added value of the renovations, the quality of the renovations and the neighbourhood’s market conditions. Unique designs or improvements that are uncommon for a particular market may even adversely impact the selling price of a home; therefore, the full return on the investment will likely not be obtained. Obtaining an expert opinion of value from an appraiser will provide an objective perspective on the marketability of the property.

For more detailed information about the various methodologies used in real estate appraisals, please view the Appraisal Institute of Canada’s Industry Guide to Understanding the Fundamentals of Real Estate Appraisal at www.aicanada.ca.

www.mortgagebrokernews.ca

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22/04/2016 2:39:43 PM

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22/04/2016 19/04/20169:02:33 10:05:52 AM PM

PEOPLE

BROKER INSIGHT

Finding success through collaboration Sabeena Bubber, one of the founders of Verico Xeva Mortgage, chats with CMP about the secrets of the firm’s success: expert training and unflagging mutual support

CMP: How did you get into the broker space? Sabeena Bubber: After university, I got my bachelor of commerce degree, and I landed a job at a finance company. I worked with them for five years, understanding everything there was to understand about credit. Essentially, from there I started to work as a mortgage underwriter for a subprime lender in Vancouver. That’s basically how I got in. I was working with brokers, but I was on the underwriting side. Eventually I saw that I was putting in a lot of hours to do what I was doing, and I thought, “You know what? I should see if I can do this brokering thing.” So I got my licence. I didn’t know anyone in Vancouver because I had just moved out from Saskatchewan. I just hit the ground running and tried to be a broker. That was in 2001, so it worked. I’m still here! My Saskatchewan roots of being a hard worker and having no problems walking into a room and networking my brains out really helped. And I think my lending background really helped as well – I did some time with RBC as a mortgage specialist. Understanding the other side of it really helped me as a salesperson, because I understood credit; I understood income. I understood all the aspects of

an application because I’d been working with credit for six or seven years before I became a broker.

CMP: Tell us a little about Verico Xeva Mortgage. SB: Xeva was formed at the end of 2013. It was a merger of four companies, including my own. We all became Xeva Mortgage together. All the people who joined had been in the business for as long as I had. We all had experience in lending or banking, and we’d been friends supporting each other, that kind of thing. I wish I’d done this at the beginning of my career rather than going through all the hard knocks to get to this point. I’m thriving in this environment. We work very hard to see each other be successful – and we’re proud of each other’s success. We celebrate

each other, and we find ways to help each other grow. I’d hit a plateau in terms of how much volume I could do, but last year my business grew by almost 50%. I attribute that directly to the Xeva model and the people I’m surrounded by on a regular basis.

CMP: You mentioned the “Xeva model” – what is that, exactly? SB: All brokerages have access to education, but the people in our firm who are helping to educate junior brokers are actually Top 75 Brokers. Three of the brokers in the firm are CMP Top 75 Brokers. We all help each other with our own businesses, but we also help all the brokers within the firm. We don’t do that for any financial benefit – all of the brokers pay on a flat-fee model based on their volume. They’re here because they want to be here, because they’re getting

VERICO XEVA MORTGAGE Verico Xeva Mortgage was founded in 2013 when four mortgage brokers merged their businesses. The firm was created with a single vision – to become one of Canada’s leading mortgage brokerages. With Xeva’s eight founding partners bringing a combined 175 years of experience to the table, the company quickly began to realize that vision. In 2015, Xeva won the Canadian Mortgage Award for Best Newcomer. Today, the company’s flat-fee model, high compensation and educational opportunities have made it one of the fastest-growing brokerages in Canada.

www.mortgagebrokernews.ca

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SABEENA BUBBER FAST FACTS

“I just hit the ground running and tried to be a broker. That was in 2001, so it worked. I’m still here!”

Mortgage professional since 2001

Over the last 15 years, Bubber has helped more than 2,700 clients and originated more than $700 million in mortgages

Has spoken on the broker panel at the Investor Forum

Served as a mentor for Futurepreneur Canada, a nonprofit that provides financing and support tools to young entrepreneurs

Named one of the top mortgage professionals in the North Shore

the support they need to grow. But they’re not paying through the nose for it. They get to grow, but they also get to keep the benefits of their hard work.

CMP: Xeva is part of the Verico network. Has that connection been helpful to you? SB: I was a Verico broker before being part of Xeva, and I definitely saw the value in

being part of Verico. I have access to tools that I wouldn’t be able to create on my own. I also have access to a larger network of brokers that I can rely on. When you work on your own, it can be a very isolating thing. Having a network to draw on really helps to alleviate that stress. Before I was with Verico, I was with a smaller firm, and it was a very isolating experience not having that support.

Has been one of CMP ’s Top 75 Brokers for the last seven years

CMP Woman of Influence two years running

www.mortgagebrokernews.ca

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22/04/2016 8:56:21 AM

SPECIAL PROMOTIONAL FEATURE

BRANDING

Creating a trustworthy brand Michael Mullis of Mortgage Teacher reveals the three elements that have provided the foundation for the company’s memorable brand

MORTGAGE TEACHER has become synonymous with a brand that people trust. This is key, and it allows us to differentiate ourselves in the highly competitive mortgage market. Luckily, Mortgage Teachers are able to stand out from the crowd because we operate differently than many mortgage brokerages. At Mortgage Teacher, we realize that a brand is not a logo, a brand is not matching graphic design, and a brand is not a product. We are the brand. A brand is the experience someone has with an organization; it’s the personality of the company; it’s how the organization makes you feel. As mortgage professionals, we play a very crucial role – we are helping people with the most important purchase of their lives: their home. We believe in being informative, transparent and accessible. Although you would not automatically think these things go into a company’s branding,

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Even if you’ve never branded your organ ization, you still have a brand. Because a brand is not what you say it is, it’s what they say it is.

#2: Our clients make a quick connection – online and in person. Connection is key, and we realize that people don’t typically refer a company – due to relationship, they refer a person at that company. So we make sure that your individual digital footprint is marketed as clearly as possible. At Mortgage Teacher, we like to start cultivating this relationship with our clients online. Everyone seems to hit the Internet first to do research before making big deci

we believe they are the foundation. Here are some ways Mortgage Teacher has created a memorable brand:

#1: We have personality. It takes a lot to create a consis tent – or change a consistent – corporate personality. We are all passionate experts in our field, but we also have unique interests, hobbies and a sense of humour. We are not afraid to show this to our clients. Being a person versus a big scary company allows our clients to feel more comfortable with us and opens up the gateways of trust, because they can easily relate. This is how we treat the Mortgage Teacher brand, as one big personality. Just like humans, our personality doesn’t change often – unlike clothes, which are more like design to a company, as they change all the time.

getting a mortgage and homeownership, we include tips for whatever stage of home ownership a client is in – not to mention contests and rewards for our followers.

#3: We strive to be different. A common reason companies pay millions of dollars to rebrand themselves is to differentiate themselves from the competition, to stand out from the crowd. Again, it’s similar to humans. When you think of the most inter esting people in your life, who comes to mind? People who are different, right? They might be funny or loud or creative, or maybe they just have an incredible story. We believe in our unique story, and our clients

“We are all passionate experts in our field, but we also have unique interests, hobbies and a sense of humour. We are not afraid to show this to our clients. Being a person versus a big scary company allows our clients to feel more comfortable with us ...” Michael Mullis, Mortgage Teacher sions like where to get a mortgage. This means that when customers search for mort gages in their local area, they will be able to easily find a Mortgage Teacher’s website. We also use our social media channels (Facebook, Twitter Instagram, LinkedIn and YouTube) to give audiences more than a sales pitch. We engage our online audiences with mortgage rate and product tips, advice to improve their credit ratings, and client testimonials. When people are researching who they would like to handle their mort gage, they are able to get a sense of Mortgage Teacher’s personality and values. Even after they have become a client, they have a reason to stay connected with Mortgage Teacher on these channels, because in addition to giving advice on

remember that. Bottom line, the human mind only notices what’s different. At Mortgage Teacher, we know our professionals are a direct representation of our brand. That’s why we train and supply the tools for our agents to stand out and become the Mortgage Teacher in their community. Mortgage Teacher provides a network where our mortgage professionals thrive, share and are nurtured.

Michael Mullis is the president and principal broker of Mortgage Teacher. To join a team that supports your personal brand and grows your business, contact Mortgage Teacher at: www. mortgageteacher.com/become-a-teacher.

www.mortgagebrokernews.ca

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22/04/2016 8:52:15 AM

SPECIAL PROMOTIONAL FEATURE

COMPENSATION

Redefining broker compensation Home Trust’s Pino Decina outlines the enhanced compensation rewards available in Spire, the company’s recently launched broker partnership program

IN 2015, Home Trust undertook a comprehensive assessment of our core operations. One of the goals of this review was to identify opportunities for refining how we serve the broker community. Known as Home Improvement Plan+, or HIP+, this exercise resulted in several key findings to help Home Trust enhance our service levels as well as rethink the way we compensate our broker partners. Several months later, we are now in the process of rolling out new programs in response to these findings, including the launch earlier this month of Spire, our updated broker compensation program. But before we get into specifics about the Spire program, let me first tackle the elephant in the room.

Any discussion around a new compensation plan could cause our broker partners to be hesitant, but let me be very clear that Spire does not in any way reduce the current compensation model. The motivation behind the creation of Spire was to provide rewards beyond what is in place now and to do so in a way that promotes a greater partnership with the broker community.

Introducing Spire The Spire name is a play on the fact that as professionals, we all aspire to reach the top of our respective fields – architecturally speaking, at the top of a building, you will often find a spire. With the launch of Spire, we firmly believe that Home Trust has put forth a bold approach to broker compensa-

tion that truly recognizes the importance of the work you do. What’s more, we’ve designed broker rewards under Spire to be completely transparent. Whether you close just one deal or many deals, you will know what to expect in return for your efforts. This ensures that you are in complete control; what you chose to make of Spire is entirely up to you. Spire consists of a series of tiers, each of which is defined by a total dollar volume as well as the volume of deals you place with Home Trust. To qualify for a tier, you need only attain one of the two metrics within a calendar year. Spire was configured in this way to take into account the fact that the Canadian real estate market is different from coast to

FIVE THINGS TO KNOW ABOUT SPIRE

No enrolment or minimum number of deals required to participate

Qualify for tiers through volume by dollars or number of deals

Graduate to the next level immediately once obtaining its minimum volume requirements

Maintain current status for the next calendar year

Earn finder’s fees, volume bonus and even a renewal bonus

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With the launch of Spire, we firmly believe that Home Trust has put forth a bold approach to broker compensation that truly recognizes the importance of the work you do coast. Some parts of the country have seen significant price increases in recent years, which makes the dollar-volume target more achievable than in regions where prices have not appreciated so dramatically. For these markets, the number-of-deals requirement is a more appropriate measurement. Either way, you have the flexibility to work toward the goal most appropriate for you.

Weâ&#x20AC;&#x2122;ve also taken great care to ensure you donâ&#x20AC;&#x2122;t need to change your business model to take advantage of Spire benefits. Whether you specialize in alternative deals, A space transactions or commercial property, any deal you close with Home Trust will be included in your totals â&#x20AC;&#x201C; even Home Trust Equityline Visa deals can help you get to the next tier.

And once you reach the requirements for a particular tier, you are automatically promoted to the new tier without a waiting period. Even if your activity volume subsequently declines, you will still retain the tier for the remainder of the calendar year, as well as the next full calendar year, at which point your activity levels will be re-evaluated.

Three ways to earn Spire features three ways for you to earn, and each is tied to your tier level. Fee splits start at the standard 50/50 rate at the Explorer level and progressively provide you with a greater allocation of the fee split as you advance through the tiers, culminating in a very generous 65/35 fee split at the Leader

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22/04/2016 8:50:06 AM

SPECIAL PROMOTIONAL FEATURE

COMPENSATION SPIRE’S TIERS OF COMPENSATION

Program tier

Number of deals

Leader

Over $30 million

Over 75 deals

Partner

Over $20 million

Over 50 deals

Producer

Over $10 million

Over 30 deals

Builder

Over $5 million

Over 20 deals

Explorer

Up to $5 million

At least 1 deal

level. A separate increasing volume bonus is assigned to each tier as well. In addition to the fee split and volume bonus considerations, Spire also introduces a new renewal bonus. Those who have attained Partner or higher status are eligible to earn a bonus if you maintain a 70% renewal rate across your portfolio of Home Trust deals. This benefit not only recognizes the role that brokers play in maintaining client relationships, but also provides meaningful compensation when renewing a client. Renewing mortgages benefits all parties and should be a shared goal. As a lender, we clearly want to renew deals with a proven client, while for the broker, renewing an existing client is low effort in comparison to qualifying a new client. For the client themselves, renewing an existing mortgage avoids the added costs of legal fees and other expenses involved in taking out a new mortgage. There is also a better chance that a renewing client can graduate to an

Dollar volume

Spire’s renewal bonus not only recognizes the role that brokers play in maintaining client relationships, but also provides meaningful compensation when renewing a client A mortgage and the better rate that comes along with it.

Meeting brokers’ needs The launch of Spire is just the latest in a series of product and service enhancements Home Trust has been working on over the past year. All these initiatives can be traced back to the HIP+ review, and I am excited to see the team’s hard work come together in time for the busy summer season. Spire was created with the needs of the broker as the guiding principle, and I believe we have delivered on that requirement. Spire is a transparent approach to compensation

that clearly displays what you can expect for achieving each milestone. Spire was designed to work hand-in-hand with our Loft broker portal, which will be live in the next month or so. With Loft, you will be able to manage and review all your deals and get an instant update on your Spire status and where you stand in relation to advancing to the next tier. Pino Decina is the EVP of residential mortgages at Home Trust. To learn more about the Spire program, contact your Home Trust business development manager, or visit go.hometrust.ca/spire.

www.mortgagebrokernews.ca

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22/04/2016 8:50:26 AM

PEOPLE

CAREER PATH

THE NEXT BIG THING

From helping launch a broker network and earning an MBA to becoming a mother, Tina Francis has her plate full – but she wouldn’t have it any other way 2016

ANTICIPATES MOTHERHOOD Francis’ next step is a big one – she recently decided to start a family and is expecting her first child in August “My husband and I are overjoyed with this new addition – I couldn’t have asked for anything more”

2015

HELPS LAUNCH BROKER FINANCIAL GROUP After nearly a decade at Radius Financial, Francis left to help launch Broker Financial Group, an up-and-coming brokerage network. As VP of business development in Ontario, her duties include recruiting and training mortgage agents, brokers and teams

“I had experience in being part of something new with MyNext/Radius, and I wanted to be a part of something new again. When you are a part of something new and see the growth and success of the company, you can say, ‘I had a part in this!’”

2015

GOES BACK TO SCHOOL Last year, Francis was accepted into the University of Fredericton’s executive MBA program with a specialization in global leadership. She is currently averaging a 4.0 GPA and expects to finish the program in 2018 “I decided to go back to school to pursue an MBA, as I believe having the knowledge that an MBA provides goes a long way in furthering one’s personal and career growth”

2006

JOINS RADIUS FINANCIAL Francis followed Sato to Radius Financial (formerly MyNext Mortgage), where she helped launch the underwriting department and eventually became a regional VP “Working at Radius for nine years under Lorraine Sato provided me with a solid background in lending both in the A and alternative lending sides. Having both the underwriting background and sales background also gave me a unique set of skills”

2005

MEETS HER MENTOR It was her next career move – to the quality control team at GMAC Residential Funding of Canada – that led Francis to the woman who would become her mentor “[At GMAC], I met a very knowledgeable lady and industry pioneer, Lorraine Sato, who became my mentor for 10 years”

2004

MOVES TO ING DIRECT Three years later, Francis was recruited to ING Direct as a senior underwriter and team lead when the bank opened a broker channel. Francis was in charge of underwriting for the existing client portfolio, and worked closely with the client retention team “Those were very busy times. Because the department was fairly new, we figured things as we went along. Our small team was able to work together efficiently during busy times”

2001

STARTS ON THE BANK SIDE

Tina Francis got her start in the financial industry as a customer service rep at BMO. She quickly moved up to senior financial services manager and took advantage of the many courses offered through the bank to get her mutual funds license and learn about financial planning “Starting my experience in banking gave me a solid background and knowledge of a wide array of investment and mortgage products. BMO had a great training program”

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2016-04-18 1:35 22/04/2016 4:08:05 PMPM

PEOPLE

OTHER LIFE

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

Number of broken toes Perevoshchikov sustained during a tournament

1st

Perevoshchikov’s place in Russian Number of businesses – InFightStyle.com Tournament Junior Kickboxing – inspired by his hobby

GETTING HIS KICKS

The ancient sport of Muay Thai boxing has helped Maksim Perevoshchikov conquer the business world MAKSIM PEREOSHCHIKOV may get a kick out of being a mortgage agent with Broker Financial Group, but he can truly kick it with his favourite hobby, Muay Thai boxing. “The great thing is that it is more than just a sport – it is an art, a practical warfare technique and an ancient royal sport,” he says. “Muay Thai has skilled me in a lot of different ways and continues to be my best

self-expression in life. The mortgage industry is very competitive, especially in the beginning where it seems like you won’t make it through.” Pereoshchikov has been training and competing in tournaments in kickboxing since childhood, transitioning to the world of Muay Thai as an adult. “Because of the self-discipline I acquired from years of training and competing, it

taught me not to give up when the time is difficult,” Perevoshchikov says. “Moreover, going to the gym after a stressful day is good to relieve the stress – this helps a lot! This is something to experience for every person who’s working on stress self-management or someone who just wants to get in better shape while boosting their confidence. I encourage people to train with me.”

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ITâ&#x20AC;&#x2122;S all ABOUT YOU

Find out why.

Visit us at www.mcap.com/brokers to learn more!

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22/04/2016 8:44:52 AM

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• • • •

A true credit card – no security deposit required Reports to the credit bureaus* Use it anywhere MasterCard® credit cards are accepted No cash advance

For more information contact Peter Young 1-844-266-4401 | peter.young@affirmfinancial.ca You can also visit our website at AffirmFinancial.ca/CMP. Affirm Financial products are not currently available to residents of Quebec. Subject to identity authentication and must meet Affirm Financial’s current credit standards. Note: In order to complete the authentication process, Affirm Financial must access credit file and will need consent to do so. Total credit with Affirm Financial, including any existing credit, cannot exceed a maximum of $10,000. Affirm MasterCard®. This card is issued by Peoples Trust Company under licence from MasterCard International Incorporated. ‘MasterCard’ and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated. *Affirm Financial reports credit card payments to TransUnion Canada and Equifax Canada, and term loan payments to TransUnion Canada.

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