MORTGAGEBROKERNEWS.CA ISSUE 14.01 | $12.95
HOT LIST
HOT LIST 2 9 2019
2019
40 white-hot industry players you’ll want keep an eye on in 2019
DLC’S NEW PRESIDENT
Eddy Cocciollo on where the mega-network is headed from here
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B-20: ONE YEAR LATER
What impact has the stress test had – and is it time to rethink it?
THE NEW STATED INCOME A look at the current options for self-employed clients
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Need a creative solution? (We lend resourcefulness).
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ISSUE 14.01
CONTENTS
HOT LIST
HOT LIST 2 9 2019
2019
22
SPECIAL REPORT
Meet 40 professionals who rose above the many challenges of the past year to bring the heat to Canada’s mortgage industry
PUT OUR $2.5 BILLION WHERE YOUR MOUTH IS. Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada and the United States. With over $2.5 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $5M to $100M. Blake Cassidy or Pierre Leonard | 800 494 0389 | www.romspen.com
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ISSUE 14.01
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CONTENTS
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UPFRONT 04 Editorial
The markets find a new normal
06 Statistics
40
One year later, how has the B-20 stress test affected prices and home sales?
BROKER INSIGHT
12 Alternative lending update
08 Head to head
Brokers ponder the link between high debt levels and mortgage fraud
PEOPLE
44 10 UPFRONT
NEWS ANALYSIS
Plummeting oil prices have collided with last year’s B-20 changes to wreak havoc on Calgary’s housing market
How Sue Hameed went from mortgage newbie to brokerage owner in just four years
INDUSTRY ICON
Newly appointed DLC president Eddy Cocciollo reveals how he plans to maintain the network’s dominance in the years to come
18
16 Opinion
It’s time to assess whether the stress test is working as intended
PEOPLE
42
47 Career path
WHAT HAPPENED TO STATED INCOME?
Sharnjit Singh Gill translated his international banking experience into a thriving career as a broker
48 Other life
Off to the races with mortgage agent and former steeplechaser Adam Stapley
CWB Optimum Mortgage’s Rejean Roberge outlines the post-B-20 options for self-employed clients
44 FEATURES
EMAIL AND PRODUCTIVITY
Inbox raging out of control? Here are three ways to get on top of it 2
14 Commercial update
Canada’s commercial segment records another banner year
FEATURES
PEOPLE
What borrowers need to know before taking out a HELOC
MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE
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WE’RE FOR THE
RELENTLESS. The average Joes. And the Josephines. The ones who’ve been knocked down. But get up and try again. Because like you, we see their potential. And we want to help them reach it. At Haventree Bank, we provide mortgage solutions for the career changers, those with bruised credit, and the relentless.
Helping you help your clients. Visit HaventreeBank.com
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UPFRONT
EDITORIAL
Balance and tranquility
W
hile the theme of the housing market in 2018 was turbulence, it seems like placidity will reign through much of the country this year – albeit with a few exceptions. In BC, the New Democratic Party has been hell-bent on restoring affordability for Vancouverites through a series of measures that include a 20% foreign buyer tax and a levy on speculators who leave their homes vacant. In November, there were 42.5% fewer sales than there were in during the same month in 2017, and sales figures were 34.7% below the 10-year average. Far from an aberration, it’s safe to say that Vancouver will experience price reductions this year. Re/Max’s 2019 market forecast predicts that the city’s sale prices will decrease by 3%. Alberta’s economy is in the doldrums, and that will also put downward pressure on housing in Edmonton. The province’s crude oil is oversupplied and undervalued, and mass layoffs are expected in the oil & gas sector. However, for the first time in a couple of years, 2018 bore witness to positive migration inflow for the province, which should help Calgary’s housing market at least remain flat.
While the Bank of Canada has made no secret of its aggressive rate-hiking mandate in 2019, uncertainty is beginning to seep in, and a swift reassessment could follow Toronto, meanwhile, has a scorching-hot condominium sector – the high-rise sector comprises nearly 37% of total residential sales in the city – that’s expected to maintain its momentum this year. However, the other side of that coin is a low-rise sector has been stagnant since last year due to buyers being priced out of the market segment. Further afield in Windsor and London, prices remain relatively affordable but are expected to jump this year (by 10% in Windsor and 5% in London, according to Re/Max). Finally, most experts believe interest rates will continue to normalize in 2019. While the Bank of Canada has made no secret of its aggressive rate-hiking mandate in 2019, uncertainty is beginning to seep in, and a swift reassessment could follow. What is likely, however, is that the Canadian real estate market will look more balanced in 2019 than it has in years. The team at Canadian Mortgage Professional
www.mortgagebrokernews.ca ISSUE 14.01 EDITORIAL Writers Neil Sharma Joe Rosengarten Libby MacDonald Ephraim Vecina Heather Turner Copy Editor Clare Alexander
CONTRIBUTORS Darren Robinson Rejean Roberge Carson Tate
ART & PRODUCTION Designer Joenel Salvador Production Manager Alicia Chin Advertising Coordinator Ella Dayandante
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We may not be able to help you with this New Year’s resolution...
But, if you want to grow your mortgage business, we are the best accountability partner that will provide you the tools and support to make sure you can reach your New Year Resolution! thecentumnetwork@centum.ca | thecentumnetwork.ca ®/™ Trademarks owned by Centum Financial Group Inc. © 2018 Centum Financial Group Inc. The intent of this communication is for informational purposes only, and is not intended to be a solicitation to anyone under contract with another mortgage brokerage operation.
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UPFRONT
STATISTICS
One year later
PRICES BEGIN TO MODERATE
What a difference a year – and a stress test – makes in Canada’s housing market
THE YEAR just gone wasn’t a stellar one for Canada’s housing market. The latest figures from the Canadian Real Estate Association put December’s sales activity down a jawdropping 19% from the year before and 12% below the 10-year average. Month-overmonth, national home sales fell by 2.5% between November and December, and transactions declined in 60% of local markets. The softening market stands in stark
While depleted demand lowered home prices by an average of 4.9% across Canada year-over-year, a look at the individual provinces reveals more ups and downs. New Brunswick, Prince Edward Island and Quebec flourished, while BC and Alberta experienced dips. Elsewhere in Canada, prices remained relatively flat, although certain local markets (including the Greater Golden Horseshoe and Ottawa) saw modest price gains.
contrast to the figures from the final month of 2017, when would-be homebuyers had an extra incentive to rush to purchase thanks to the January 1 implementation of the mortgage stress test, driving a 4.5% year-overyear increase in sales activity. The softer market that marked the rest of 2018 likely also owes a lot to the new mortgage rules – and CREA predicts that 2019 will bring more of the same.
December 2017 December 2018 CANADA $496,696 $472,280
-2.7%
3%
Year-over-year decrease in home prices in Greater Vancouver
Year-over-year increase in home prices in the GTA
0.2%
53.5%
Increase in new home listings nationwide between November and December 2018
Sales-to-new-listings ratio across Canada in December 2018
-4.9% YEAR-OVER-YEAR CHANGE
Source: Canadian Real Estate Association, January 2019
SALES ACTIVITY SOFTENS
BELOW AVERAGE
The number of homes sold each quarter across Canada has dropped markedly since the pre-stresstest heyday of 2016 and 2017.
Although the summertime market was relatively robust, its sales figures were wholly depleted by four straight monthly declines between September and December, culminating in the poorest annual sales figures posted since 2012 and putting 2018’s sales 12% below the 10-year average.
575,000
50,000
550,000
45,000
525,000
40,000
500,000
30,000
450,000
25,000
425,000
JAN 2018
JAN 2017
JAN 2016
JAN 2015
JAN 2014
JAN 2013
JAN 2012
JAN 2011
JAN 2010
JAN 2009
JAN 2008
JAN 2007
2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4
20,000
Source: Canadian Real Estate Association, January 2019
6
10-year monthly moving average
35,000
475,000
400,000
Monthly home sales
Source: Canadian Real Estate Association, January 2019
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BRITISH COLUMBIA
PRINCE EDWARD ISLAND
NOVA SCOTIA
$733,952
$201,989
$241,624
$695,385
-5.3%
SASKATCHEWAN
$286,149
0.9%
YEAR-OVER-YEAR CHANGE
6.0%
-0.1%
$283,513
YEAR-OVER-YEAR CHANGE
$214,044
$241,357 MANITOBA
YEAR-OVER-YEAR CHANGE
$278,913 $282,121
NEWFOUNDLAND
QUEBEC
1.2%
$249,478
$298,479
YEAR-OVER-YEAR CHANGE
$249,345
-0.1%
$314,952
5.5%
YEAR-OVER-YEAR CHANGE
YEAR-OVER-YEAR CHANGE ALBERTA $380,052
ONTARIO
NEW BRUNSWICK
$372,859
$559,775
$174,639
$559,957
$257,417
-1.9%
0.0%
YEAR-OVER-YEAR CHANGE
YEAR-OVER-YEAR CHANGE
10.9%
YEAR-OVER-YEAR CHANGE
YEAR-OVER-YEAR CHANGE
Source: Canadian Real Estate Association, January 2019
A RETURN TO BALANCE?
WINNERS AND LOSERS
The current sales-to-new-listings ratio across Canada – a key measure of market balance – is nearly identical to the long-term average of 53.5%. As of the end of December, there was an average of 5.6 months of inventory available nationwide, which is close to the long-term average of 5.3 months. Yet certain markets, including the Prairie provinces and Newfoundland, remain unbalanced.
Despite the softer market, apartments across Canada saw an average 4.9% year-over-year price gain in December. At the other end of the scale, single-family home prices eased slightly. YEAR-OVER-YEAR PRICE CHANGE APARTMENTS
JUL 2018
JAN 2018
45% JUL 2017
3 JAN 2017
50%
JUL 2016
4
JAN 2016
55%
JUL 2015
5
JAN 2015
60%
JUL 2014
6
JAN 2014
65%
JUL 2013
7
JAN 2013
Months of inventory
Sales-to-new-listings ratio 70% Sales-to-new-listings ratio
Months of inventory
8
Source: Canadian Real Estate Association, January 2019
TOWNHOUSE/ROW UNITS
TWO-STOREY SINGLE-FAMILY HOMES
ONE-STOREY SINGLE-FAMILY HOMES
-1%
0%
1%
2%
3%
4%
5%
Source: Canadian Real Estate Association, January 2019
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UPFRONT
HEAD TO HEAD
Will high household debt lead to mortgage fraud?
As Canadians’ debt-to-income ratio continues to rise, will it cause more homeowners to consider desperate measures?
Laura Martin Chief operations officer and broker Matrix Mortgage Global
Todd Fralic Co-owner Quantus Mortgage Solutions
Leo Ragusa Co-owner/agent The Mortgage Professionals
“Household credit market debt topped $2 trillion this year. We are at a national high of $1.70 of debt for every $1 of gross household income. Why? Canadians have a strong desire for homeownership and are experiencing a long-term period of low interest rates. This perfect storm has led to rising real estate values and thus record-breaking debt and mortgage volume. Historically, lower rates correlate to more debt households can carry. The correlation between mortgage fraud incidents and household debt itself is a weak one; however, a sharp increase in rates could be a push factor in fraudulent income document manufacturing.”
“It’s quite true that household indebtedness is overly high for many Canadians, but that’s just one piece of the puzzle. Over the years, we’ve seen LTVs drop for refinances, amortization options shorten and sources of capital shrink. Now consumers face a qualifying rate that eliminates the option of refinancing for many. Faced with all these obstacles, will some consumers consider fraud? Perhaps, but with all the extra layers of confirmation we have at our disposal as an industry – and continuing levels of professionalism in our channel – I don’t personally see a large spike in fraud because of this situation alone.”
“I’m sure there is some link between increased indebtedness and an increase in attempted mortgage fraud. That said, I think that in the past several years, lenders have really shored up their defence against fraud by requiring more and diverse documentation, increased audit and verification, and removing any suspect brokers from being able to submit. I would like to see more aggressive punishment from FSCO for those brokers who break the rules, and I would like to see OSFI and banks take more responsibility to penalize bank mortgage specialists who are participating in fraud.”
INTO THE TRILLIONS In the third quarter of last year, the country’s household debt level rose above $2 trillion – a mark not seen since just before the Great Recession. The low interest rate environment that has persisted since that crisis has been an invitation to borrow: In 1999, Canadians owed slightly more than $35 billion in lines of credit; by 2016, that figure had risen to more than $142 billion, an increase of 400%. Roughly seven out of every 10 Canadian households are in debt, owing an average of $1.70 for every dollar of post-tax income. And 10% of those households have a debt level of 350%, meaning that they owe $3.50 for every dollar earned.
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UPFRONT
NEWS ANALYSIS
Teetering on the precipice As the oil & gas sector reels and job cuts loom, Alberta’s already fragile economy has quickly gone south, dragging the province’s housing market down with it. The question is, how much responsibility does the government bear?
WITH ALBERTA’S economy firmly in the doldrums yet again, Calgary’s real estate market has seen better days. The city’s housing sector has largely been touch-and-go since 2014, when oil prices began declining, but the situation has worsened because of oversupplied oil and its downward effect on pricing. Coupled with the B-20 mortgage rules implemented last January, it has been a recipe for disaster in the local market. It’s hardly surprising, then, that the role the government has played in all of this is being called out by brokers. Croft Axsen, the owner of Calgary-based Jencor Mortgage Corporation, says the city’s housing woes have more to do with constraints created by B-20 than the oil
Trudeau signs off on them,” he says. “Every month, we probably tell more than 100 people, maybe 150, that according to the government’s current guidelines and regulations, they do not qualify for a mortgage.” The tighter mortgage qualification rules were largely prompted by overheated housing markets in Vancouver and Toronto, but the blanket approach to implementation has been damaging to markets like Calgary, which Axsen says needs liquidity, not regulation, at a time when its largest industry is in recession. “The government wants to apply Toronto and Vancouver rules to us, an area that needs liquidity, for no reason other than somebody sitting in front of a computer at OSFI decided
“The major problem in our housing market is the mortgage stress test rules, and Justin Trudeau signs off on them” Croft Axsen, Jencor Mortgage Corporation & gas sector’s plunge, although that remains a salient contributor. Axsen’s gripe extends beyond the Office of the Superintendent of Financial Institutions, though. “The major problem in our housing market is the mortgage stress test rules, and Justin
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it’s more important that there’s stability in Toronto and Vancouver,” Axsen says. Investment into Alberta’s oil & gas sector has declined precipitously since 2014, adding to an untenable situation that Axsen believes is far from a top priority for the federal govern-
ment. “You’re playing football, you’ve already been tackled and then eight more players pile on top of you – it’s kind of like that,” he says. “Whether investment in pipes, servicing or infrastructure, that stuff isn’t happening because companies aren’t sure if they’re going to make money on their investment.” Corinne Lyall, a Calgary-based Realtor with Royal LePage, notes that the city has higher housing inventory than it did during the 2008 recession and is consequently struggling with sales. That could be advantageous for potential buyers – provided they can qualify for a mortgage. “Since the end of 2014, we’ve been in a sluggish market related to the energy sector,” Lyall says. “It’s not as bad as everybody makes it seem, and part of it is we’ve been through some really, really strong markets, and in Calgary we’re used to having our ups and downs.
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HOW DO CANADIANS FEEL ABOUT THE TRANS MOUNTAIN PIPELINE?
CANADA Strongly support it 24% Somewhat support it 32% Somewhat oppose it 13% Strongly oppose it 11% Aren’t sure 20%
ALBERTA
A
stron somew some stron a
Strongly support it 60% Somewhat support it 24% Somewhat oppose it 4% Strongly oppose it 2% Aren’t sure 9%
Source: Ipsos, May 2018
We’re in a balanced market, leaning towards a buyer’s market.” However, Axsen maintains that the provincial economy is in tatters. Saddled with a glut of oil, Alberta is bracing for dark clouds
100,000 oil workers working because we don’t have a government supporting infrastructure building of oil to tidewater.” Under the Trudeau government, the Canadian economy has largely been healthy,
“The energy sector has been a concern for the Bank of Canada, but there seems to be new focus on the housing sector” James Laird, CanWise Financial ahead. The general consensus is that interest rates will continue to rise in 2019, but Axsen sees that as the least of Albertans’ problems. “I’m not sure that one interest rate hike is that significant of an event,” he says. “More significant of a problem for us is that we don’t have
even vibrant, but Axsen’s assertion that the government has neglected Western Canada is not without merit. “It might be time to think of supporting the country and the West, the Prairies, by getting some infrastructure built for pipelines to Burnaby or to the East Coast,”
he says. “There are so many opportunities. I don’t get Central Canada’s thinking that getting its oil from Saudi Arabia is a good idea. The lack of leadership from our government in solving these problems is disappointing.” The Bank of Canada has held off on further interest-rate increases since October, largely because of Alberta’s economic struggles. Considering that Canada is experiencing a 40-year low in unemployment and has a buoyant economy overall, that should be worrying. “The energy sector has been a concern for the bank for some time now, but there seems to be a new focus on the housing sector,” says James Laird, president and broker of record at CanWise Financial. “The Bank of Canada is still targeting increases in the key overnight rate, but the pace and frequency of these rate adjustments will be moderated based on the health of Canada’s energy and housing sectors.”
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UPFRONT
ALTERNATIVE LENDING UPDATE NEWS BRIEFS CIBC economist wants more regulation in alternative space
At the 2018 National Mortgage Conference, CIBC World Markets deputy chief economist Benjamin Tal argued that the B-20 regulatory regime doesn’t go far enough, calling for increased regulation of alternative lenders, especially mortgage investment corporations. “I supported B-20 because I believe we need to save from Canadians from themselves,” Tal said during his keynote speech. “However, I do believe that, at this point, alternative lenders are the fastest-growing segment of the mortgage market. They’re transferring risk from the regulated part of the market to the unregulated market.”
CMI MIC first to be listed on NEO Connect platform
CMI Mortgage Investment Corporation has become the first MIC to be listed on the NEO Connect fund distribution platform. Listed under the symbol CMIMC, the platform-traded fund [PTF] gives investors a new avenue for investing in private mortgages. “The market is showing an increase in demand for secure investment options when it comes to investing in real estate,” said CMI COO Bryan Jaskolka. “Launching on NEO Connect makes CMI MIC more accessible to Canadians and offers an alternative PTF for investment advisors and their clients to pool their money and create an alternative fixed-income investment that yields significant value.”
How private lenders can help with Airbnb properties
Arranging a mortgage for an Airbnb property is a tall order – according to Laura Martin, COO of Matrix Mortgage Global and director of Private Lending Hub, “short-term rentals face a higher
level of scrutiny by lenders than typical one-year lease agreement renters.” For property owners who rely largely on rental incomes for their loan payments, Martin encourages them to look to the private channel. “The lender will ask for confirmation of deposits, as opposed to lease agreements,” she said, adding that “max loan-to-value is likely 60% to 65%. I would skip the B lenders altogether and go private.”
Private channel funding a fifth of all refinances in Canada
According to a joint study by Teranet and Realosophy, 20% of refinances during the second quarter of 2018 were with private lenders. The study also found that refinances in the private channel jumped 67% in the second quarter compared to the same period two years ago. “The most likely reason is B-20,” said Realosophy president John Pasalis. “Generally, if people are going there, with the increase we’ve seen, it’s because it’s tougher to qualify for a refinance at a traditional bank.”
XMC Mortgage Corp. offers new take on broker partnerships
Partnerships between lenders and brokers are imperative in today’s highly regulated environment, and XMC Mortgage Corporation is taking a unique approach to cultivating relationships within the broker channel by targeting brokers who display exemplary customer service. “We target and partner with brokers who hold themselves to a high level of service and expectation,” said Derek Serra, XMC’s managing director. One thing XMC looks for in partner brokers is the ability to help clients through turbulent periods such as illness or job loss. In return, XMC offers brokers and their clients access to resources such as lead-generation tools and free appraisal promotions.
The high cost of HELOCs Consumers are increasingly tapping into their home equity – but they’re not always doing so responsibly
More than a quarter (approximately 27%) of Canadians with home equity lines of credit are paying for just the interest, according to a new report from the Financial Consumer Agency of Canada. The agency also discovered that the proportion of HELOC users with limits greater than $75,000 (around 49%) represents a significant percentage of middle- and upper-class Canadians relying on high-value homes for their loans. In contrast, HELOC holders borrowing from federal banks have a loan of around $65,000 on average, according to Bloomberg. Almost half of HELOC users (49%) reported using the money for renovations, while 22% took advantage of the sum for debt consolidation. Another 13% said they used HELOCs help pay off other financial accountabilities. However, while the loan type has emerged as a popular option in recent years, the agency cautioned that “many consumers appear to lack awareness of the terms and conditions of this financial product, exposing them to the risk of over-borrowing, debt persistence, uninformed decision-making and wealth erosion.” An earlier study by CMHC revealed that British Columbians had the highest HELOC balances in Canada, averaging around $124,000. However, BC also had the lowest HELOC usage rate among all the provinces at 63.2%. Atlantic Canada had the highest at 73.9%. Robert Mogensen, a broker with The Mort-
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gage Advantage, has witnessed firsthand how easy it is for borrowers to get stuck in a seemingly endless cycle of interest-only payments. “I’ve been doing this for 15 years, and what I see is a lot of people get these with the intention to use them as a rainy day fund, like if they need a new roof or whatever,” Mogensen says. “Unfortunately, even if it’s to do necessary repairs or for an emergency fund, it seems like they rarely get paid back down. You’ll see people with a home equity line of credit at the
“Many consumers appear to lack awareness of the terms and conditions of this financial product” beginning of a term with an open line of credit but nothing advanced, and at the end of five years, they’ve advanced $30,000 or $50,0000 or $100,000, and all they’re doing is making interest-only payments on it. The danger is that even though they qualify for that money, they don’t diligently pay it down.” That danger, he adds, has only grown in light of the tightened B-20 mortgage rules, which have made it trickier for borrowers to qualify for refinances. “People who qualified under the old mortgage rules may have ratcheted up the line of credit portion of their mortgage HELOC product,” Mogensen explains, adding that when it comes time to requalify, they’re not able to requalify with the same lender or switch to another AAA lender. “On a few occasions, we’ve had to take it from a AAA lender to a secondary lender that was more flexible on income or credit qualification – obviously at a higher rate,” he adds.
Q&A
Anne Ananda Commercial mortgage agent MORTGAGE ALLIANCE COMMERCIAL
Years in the industry 16+ Fast fact Before moving into commercial mortgages, Anada was a mortgage advisor for Mortgage Intelligence and CIBC
Constructing solutions in Toronto What has Toronto’s commercial construction market been like so far in 2019? The beginning of this year appears to be a continuation of the activity established over the past few years. There hasn’t been much of a slowdown in activity. However, if you look at it closely, construction mortgages to support condo and apartment projects are currently much more difficult to secure compared to other asset classes.
What financing challenges are buyers encountering? The most important, I think, is that the cap rate at which properties are being sold at seems to be actually too low. The lenders cannot finance based on the purchase price. Some properties that are being bought for $10 million, for example, are not actually valued at $10 million. The value is there, but mainly because that’s the value it’s trading at. The properties are trading at values that exceed the lenders’ ability to support them with proper loans. The debt service coverage ratio, not the loan value itself, is limiting every transaction. The second challenge is that loans now require a significantly increased amount of due diligence. Anti-money-laundering laws have pushed us to dig even deeper into clients’ personal affairs and finances and business dealings. So it takes much longer to get deals done since you’ll need more information for every transaction.
Do low-cap-rate projects like the ones you mentioned earlier have any options in terms of financing? There are private institutional-quality lenders and private investors that can meet their needs, definitely. The first stage could be land financing, where either the client owns the land or needs financing to purchase the land. A lender would be looking at whether the land will have a suitable and sustainable project coming in the near future or not. Based on that and on the client’s qualifications, we can do up to 65% of the land financing. The project will then proceed to the construction phase and appraisals. The lender will also look at what the exit strategy and profit margins are, among other factors, after which the construction financing will take place, after determining the sources and usage of the borrower’s funds.
What opportunities do you see for the market in the next few months? Upward pressure from interest rates will certainly continue, and for the near future – that is, the next year or two – it will be important for borrowers to look at the long term. You don’t want borrowers to be renewing in three or four or five years, because by then interest rates will almost definitely be on the high side. The opportunity on the brokerage side is to have clients lock into 10-year rates.
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UPFRONT
COMMERCIAL UPDATE
What’s driving the commercial boom? Tight supply and low unemployment should keep the commercial property market robust in 2019
is projected to slightly move up the nationwide office vacancy rate to 11.3% in 2019, with the caveat that a significant proportion of this might be in the suburbs, considering space constraints and rent hikes in downtown areas. “Toronto and Vancouver reaffirmed their presence among North America’s top-performing office markets as Canadian markets captured five of the continent’s 10 lowest vacancy rates,” said Avison Young’s Bill Argeropoulos.
“The next wave of investment is not a matter of if or when – it’s just a matter of price”
Canada’s tight supply of commercial properties, coupled with a four-decade low in unemployment, will continue stoking intense demand in the space for much of 2019, according to an Avison Young Canada forecast released in mid-January. The report indicated that commercial property investment nationwide in 2018 exceeded the 2017 high of $36 billion. “We continue to feel very positive about opportunities in the real estate environment
NEWS BRIEFS
for the year ahead,” said Avison Young Canada CEO Mark Rose. “More capital is available to move into real estate debt and equity than at any other time. The next wave of investment is not a matter of if or when – it’s just a matter of price.” In the office space, vacancies fell in nearly every market across Canada, pulling the national average down to 11% by the end of 2018. An even more feverish pace of construction – 22 million square feet, or nearly double the total for 2017 –
Vancouver’s office market soars to new heights
Steadily climbing property values and sustained development are making Metro Vancouver’s office market possibly the best nationwide. A January analysis by Devencore found that office vacancy rates in the downtown area have declined to 4.5%, down from 5% a year ago, while Class A vacancy rates are at 3.9%. “With various developments underway, but no major new office buildings delivered to the market until 2021, tenants with upcoming leases are competing within a very tight market,” said Devencore’s Jon Bishop.
Even more promising is the industrial sphere, which saw nationwide vacancies shrink to a historic low of 2.9% near the end of 2018. Vacancy levels in the leading markets of Toronto (1.3%) and Vancouver (1.5%) were actually the lowest in North America. Industrial construction also accelerated to more than 20 million square feet in 2018, significantly greater than the 14 million square feet in the year prior. “Canada’s industrial market outperformed many observers’ expectations in 2018 – and is set to do so again in 2019,” Argeropoulos said. “Competition from the emerging recreational cannabis industry will add to the already robust e-commerce demand this year as owners and occupiers continue to grapple with rising land costs and the eroding supply of developable land – most evident in Vancouver and Toronto.”
Calgary market could be in for a rocky 2019
While prices in Calgary’s commercial segment might be more affordable this year due to a 32% drop in the assessed value of downtown office buildings, it might not lead to any improvement in the city’s 26.4% vacancy rate, as Calgary has yet to recover from the major unemployment brought about by the oil price crashes. “The disease is unemployment – it’s not property values,” said CBRE Alberta managing director Greg Kwong. “It’s not going to change dramatically until we get people back to work.”
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Q&A
Michael Lee Commercial mortgage broker MORTGAGE ALLIANCE COMMERCIAL
Years in the industry 14 Fast fact When he’s not busy arranging mortgages, Lee is an avid golfer, skier and traveler
Red-hot Vancouver a challenge for investors What has Vancouver’s multi-residential segment been like so far in 2019? Current pricing in Vancouver is extremely high. Strong demand for the multi-family asset persists, mainly because of near-zero vacancy rates. That situation has led to record-low cap rates, so it’s quite surprising that people still want to invest in multi-family. The segment has strong fundamentals fuelled by limited supply and the earlier mentioned low vacancy. What do you think is magnetizing commercial property buyers and investors towards Vancouver’s multi-family sector? What it boils down to is that investors feel it’s a safe place to put their money in. Vancouver is a very desirable place to live and do business in. I think that buyers and investors look at the city’s commercial segment as something that will continue to attract high demand, which is not an unfounded belief. What challenges can investors expect? Very high prices and low cap rates make it tough for investors to maximize the profit they’re making from their investments. Basically, I think investors have to accept the fact that they need to put down more on down payments if they want to be able to apply for financing. Multi-family is an easy business to understand, and most lenders feel that this is a Tier 1 asset class. Financing is readily available for multi-family, but lenders can only finance whatever the net operating income of that property shows it can support. Investors have to
North American listings to enjoy greater reach
Commercial real estate information and analytics portal CoStar Group has signed a new global contract with CBRE, ensuring greater overseas reach for premier North American commercial markets like BC and Ontario. Per the terms of the agreement, CoStar Group will provide CBRE with wide-ranging information and listing exposure to thousands of commercial property professionals across North America and Europe. In addition, CBRE users will be able to access CoStar’s information across Canada and the UK.
understand that they have to put down more. The important aspect is that investors have to be willing to accept lower profits from their investments because we have such high prices in Vancouver. Demand remains extremely high across all property types, but it’s likely due to the lack of available product, and it will continue to be tough finding good cash flow in properties. How do you help your clients navigate these challenges? It’s a difficult time, although financing is readily available. What I do with each of my clients is to listen closely to what they have to say to understand what they’re trying to accomplish so that I can find the most compatible financing strategy for their purposes. I tell them what financing is achievable considering the property’s numbers and what it can support in terms of a loan. I don’t provide them with wishful pie-in-the-sky figures. What can other commercial markets learn from Vancouver? The past few years have seen a lot of international firms expanding operations into Canada. And many of those are tech firms. Other markets need to be able to identify tech as a desirable segment and place emphasis on catering to what that segment requires. Based on Vancouver’s supply and record cap rates, investors/buyers in any other market can begin to appreciate the merits of tight discipline and carefully choosing what to invest in/purchase, and moderating any expectations of large profit.
Retail strength bodes well for commercial sector
Canada’s retail spaces saw an unexpected 0.2% gain in activity in September, defying expert predictions of flat growth. The month also saw retail sales increase in six of 11 subsectors tracked by Statistics Canada, the agency reported in November. In its 2019 commercial real estate outlook, Morguard Corporation noted that retail investment property sales hit a record high in 2018, adding that “properties with development or repositioning potential are expected to generate strong interest among the investment community [in] 2019.”
Edmonton records stellar 2018 performance
Despite looming troubles for Alberta, Edmonton’s commercial/ industrial property market is coming off a strong 2018 in which it grew three times faster than in 2017, according to CBRE. Edmonton’s investment total clocked in at $3.3 billion in the third quarter alone, while Calgary saw $3.8 billion worth of activity in Q3. The province’s improved investment numbers were due in part to milestones such as the $3.8 billion acquisition of the Pure Industrial Real Estate Trust by Blackstone at the beginning of 2018.
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email mortgagebrokernews@kmimedia.ca
It’s time for stress test relief One year after implementing the stress test, OSFI needs to analyze its impact on the marketplace and consider the damage done, writes Darren Robinson WE FINALLY had some good news late last year when the Bank of Canada decided to pause rate increases and hinted at a lower chance of increases in 2019. While this was music to brokers’ ears, it comes at the price of a slowing economy still reeling from the oil crisis out West and what could be an extended trade war between the US and China, which could have a lasting negative effect on our economy. Is this just a plateau on our way to 6% rates, as Moody’s Analytics recently predicted? The risk of a Canada-wide housing recession seems to lessen each month, proving that OSFI’s B-20 rule changes (specifically the stress test) have had far-reaching and dramatic effects since their implementation last January. This, in combination with rising interest rates, has turned many potential homebuyers off. I believe the media played a large role in scaring consumers at the beginning of the year by telling them that it would be difficult for would-be homeowners to obtain a mortgage under the new stress test. The majority of my clients have heard of the stress test, but they had little or no knowledge of what it was or how it was calculated. For other clients, it has been a real barrier that almost forced them out of the market altogether. This required us to look to one of the provincial credit unions or a MIC to avoid the stress test, which unfairly subjected these clients to higher interest rates and fees.
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Further, the need for a co-signer has also been steadily increasing. I often have to discuss this topic with first-time homebuyers to make the debt servicing numbers work. Another flaw with the B-20 rules is the blanket approach taken to national housing issues. We are continually bombarded with news stories warning about a housing bubble in Toronto and Vancouver; however, the new
tiate myself from other brokers and to diversify my offerings. This allows me to offer my clients a more holistic approach to their finances. So, in a strange way, the increasing regulations have forced me to evolve into a more valued financial partner to my clients. Another cost to brokers from the B-20 changes: many missed opportunities to convert renewals as a record number of mortgages mature. The increasing interest rate environment has made it difficult to compete with clients’ current lenders for the business. My personal fear is that OSFI will continue to focus new regulations on alternative, MIC and private lenders instead of taking aim at the credit card and unsecured debt markets as it wages war on consumer debt loads in Canada. Such a move would diminish consumer options even further and drive homebuyers toward higher-rate loans or potential bankruptcy. As we reach the 12-month mark, OSFI should analyze its impact on the marketplace and also take into account the role that rising interest rates have had on the housing market. While I don’t agree that the stress test should be completely annulled, as OREA and the Progressive Conservative party have called for, other options are worth considering. For example, in the short term, it would be great
“It would be wise of OSFI to figure out a way to target any new rules geographically to help level out the economic impact” rules are having a disproportionate impact on smaller communities, causing those markets to ‘over-cool.’ I would like to see a more targeted approach to ‘problem’ markets that would level the playing field. The past few years of OSFI rule changes have forced brokers to take a hard look at their business models to determine how they can insulate themselves from continual government intervention. I started by expanding my mortgage offerings. I found myself having to look outside my typical A client to find B clients and private funding opportunities. This broadened focus really helped me grow my business. Additionally, two years ago, I decided to get my life insurance licence to further differen-
to see the stress test rate cut in half for conventional mortgages. Doing so would soften the current impact on the market while still providing some security. It would also be wise of OSFI to figure out a way to target any new rules geographically to help level out the economic impact. For buyers in markets not affected by Vancouver and Toronto’s fevered activity, some stress test relief certainly is needed in the near future. Darren Robinson is a Barrie, Ontario-based mortgage broker with 10 years of experience. He also holds a life insurance licence and is working toward a Certified Financial Planner designation.
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HOME
It’s not about credit scores. It’s about life scores. Life happens. When a change in marriage or a relationship occurs, it can affect your clients’ credit and confidence in their future. Let’s partner to look beyond their credit score. Together, we can ask the right questions to understand the whole story so they can focus on the scores that matter most in life. Visit hometrust.ca/lifehappens. Home Happens Here.
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PEOPLE
INDUSTRY ICON
TAKING THE REINS With more than two decades of industry experience under his belt, Eddy Cocciollo is well prepared for his new role as president of one of Canada’s largest mortgage networks
IT TAKES a broker to know a broker – and that’s just one of the reasons Eddy Cocciollo has been chosen to lead Dominion Lending Centres as its new president, taking over from Gary Mauris, who will remain DLC Group’s CEO. With a career spanning 25 years, Cocciollo has spent time in both the broker channel and the banking world, which has given him a wealth of knowledge and experience he can apply to his new post at the top of one of Canada’s largest mortgage networks. “I’ve been there – I understand how hard it is,” Cocciollo says. “Brokering isn’t an easy job, but it’s in understanding the whole process of being a mortgage agent, where you’re engaging with referral sources, building confidence in your client that you’re the right person for them, learning processes new and old – and that extends to evolving tools and technologies – and, of course, building relationships wherever you go. When you have started there and can relate to what agents and brokers go through every day, providing them with answers – and with value – becomes a lot easier because you understand what it takes to help these agents and brokers become better.”
Industry pedigree Cocciollo cut his teeth at Canada Trust and then moved to CIBC as a mortgage specialist,
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where he learned how to find clients and develop referral sources – a daunting task for a neophyte, given the fierce competition in the space. However, Cocciollo took a methodical approach to learning about the industry; he hustled to find clients and discovered which lenders were best to partner with.
it on my own,” he says. “I’m in this space that’s familiar to me, but being in it purely on a commission basis and being successful while doing it for almost three years and loving every minute of it was very important to me. I loved the entrepreneurial spirit in the broker space.” Cocciollo’s next big break came in 2005 when
“When you have started there and can relate to what agents and brokers go through every day, providing them with answers – and with value – becomes a lot easier because you understand what it takes to help these agents and brokers become better” Soon after, he was hired by the Canada Mortgage and Housing Corporation, an invaluable period in his career during which he gleaned copious amounts of inside information about the nation’s housing market. Cocciollo became a broker in 2002 with AssuredMortgages, working strictly on a commission basis, which instilled in him confidence and comfort that he’d found an industry he could call home. “That was huge for me, knowing I could make
GE Money hired him to launch its Canadian mortgage operations. To this day, he speaks fondly of that chapter in his career. “The plan was to take a sabbatical from brokering to help GE launch in the Canadian market,” he says. “I wasn’t sure I’d stick around, but they treated me so well – I got to travel the world and represent Canadian business internationally, and that was such an amazing experience on so many levels. I loved it.”
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PROFILE Name: Eddy Cocciollo Title: President Company: Dominion Lending Centres Based in: Brampton, Ontario Years in the industry: 25 Career highlight: “Becoming a mortgage broker and being in such an entrepreneurial space where I worked strictly on commissions and realizing that I could make it on my own was huge. Helping GE Money launch in Canada is also a major accomplishment.” Career lowlight: “There are peaks and valleys in every industry, but especially this one. You can’t control the economy, and when it’s depressed and people stop buying, your income slows down. However, you learn to become resilient.”
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PEOPLE
INDUSTRY ICON
Unfortunately, the Great Recession proved to be a spanner in the works. GE Money decided to pull back from the finance business, so Cocciollo moved over to CIBC to run First Line in the non-prime space. However, once the severity of the recession sunk in, the bank decided to withdraw from the space. Realizing the asset it had in Cocciollo, CIBC offered to retain him as president of Mortgage Centre Canada. “In 2008, there were obviously tons of challenges when it came to finance,” Cocciollo says. “[It] was a time when we pushed hard to grow the company, but it was also around the time that DLC launched, so we were pushed hard ourselves by the competition, which made retention and recruiting at MCC harder. But as the years went by, things got better in the industry,
industry. When CIBC decided it was exiting the mortgage space, DLC came knocking and purchased the company.
Ready for battle After 10 years as president of Mortgage Centre Canada, including the last five under the DLC umbrella, Cocciollo was hand-picked to become the new president of Dominion Lending Centres, but he won’t be resting on his laurels. An emergent M3 Group is challenging DLC for supremacy of the Canadian mortgage market by going on a consolidation spree, but Cocciollo insists his network won’t surrender any ground. “DLC really has it all,” he says. “The branding – and with that is the marketing – our tools and technologies, our sustained investment in
“The most attractive part of DLC is the people we have, from head office to leadership to our brokers and agents, and it’s going to be hard for M3 to continue to compete with us because they’ll have to keep investing just as much as DLC, if not more” and we realized that mortgage brokers really just want an environment in which they can feel safe and be trusted, and we believed MCC provided that. Because of the calibre of people within the network, it continued growing despite CIBC’s reluctance to aid us as a small business within a huge conglomerate. It was hard to run because we weren’t given the attention we needed.” Mortgage Centre Canada wasn’t just treated as an afterthought; it was widely misunderstood by CIBC’s executive leadership. Cocciollo describes meeting after meeting with senior executives who couldn’t quite understand exactly what MCC did. However, MCC persevered and quietly grew its market share, becoming an alluring player in the Canadian mortgage
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our people. The most attractive part of DLC is the people we have, from head office to leadership to our brokers and agents, and it’s going to be hard for M3 to continue to compete with us because they’ll have to keep investing just as much as DLC, if not more, and that’s why it’s the battle of two. “Right now,” he continues, “it’s a battle of two because all these things I mentioned take tremendous amounts of capital and resources, and if you’re not going to continue adding value to your brokers and agents, it will be tough for you to survive.” Undoubtedly, the fact that Cocciollo still thinks like a mortgage broker will ensure that DLC remains a formidable foe.
EDDY COCCIOLLO’S CAREER HIGHLIGHTS
2002 Cocciollo becomes a mortgage broker, working purely on commission
2005 Helps GE Money launch its Canadian mortgage arm
2008 Is appointed president of Mortgage Centre Canada and steers the company through the Great Recession
2013 Dominion Lending Centres acquires Mortgage Centre Canada
2018 Cocciollo is named president of Dominion Lending Centres
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SPECIAL REPORT
HOT LIST 2019
HOT LIST
2019
Despite another challenging year for the broker channel, these 40 mortgage professionals managed to set the industry on fire
LAST YEAR was one of trials and tribulations for mortgage industry players as they learned to adapt to new rules that have altered the industry landscape. But through it all, mortgage professionals survived – and in fact, many of them thrived. CMP’s annual Hot List kicks off the new year by looking back at the movers and shakers who made a lasting impact on the Canadian mortgage industry
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over the past 12 months. After receiving hundreds of nominations, CMP narrowed the list down to the following 40 professionals. From entrepreneurs who launched their own businesses to pioneers who have dedicated themselves to making sure all Canadians have access to homeownership, this year’s Hot List represents the best and brightest the industry has to offer.
www.ibamag.com
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HOT LIST
HOT LIST INDEX NAME
COMPANY
Ablakan, Matthew
Millennial's Choice Inc.
PAGE 36
Afan, Robert
Clear Trust Mortgages
38
Ali, Asim
DLC Producers West Financial
35
Canadian Mortgage Financial Ameerullah, Ameera Group
39
Burrage, Jennifer Anne
Equitable Bank
30
Barsoum, Dalia
Streetwise Mortgages
31
Brenneman, Julie
The Mortgage Centre Hometown Financial
34
Brill, Anne
Centum Metrocapp Wealth Solutions Inc.
25
2 9 2019
AJ POULIN Vice-president of sales
Buemann, Christine DLC Canadian Mortgage Experts
39
Calla, Angela
DLC Angela Calla Mortgage Team
23
Cruz, Ana
City Mortgage Group, Mortgage Architects
26
Dasgupta, Shubha
Capital Lending Centre
38
Dawdy, Janna
JCMortgages.ca
32
Dennahower, Ryan
Bespoke Mortgage Group
35
Friesen, Jason
Outline Financial
24
Funk, Shirl
The Mortgage Centre
26
Ghazouli, Marcel
Premiere Mortgage Centre
28
Green, Kyle
Green Mortgage Team Ltd.
24
Hansen, Trevor
Xeva Mortgage
30
Hattim, Mike
DLC Forest City Funding
39
Kaith, Ajay
Oppono Lending Company
32
Kay, Jason
Northwood Mortgage
39
Korent, Remi
Rock Solid Mortgages
30
Laird, James
CanWise Financial
33
Lee, Dong
Mortgage Architects
35
Lui, Win
Clear Trust Mortgages
26
MacDonald, Dan
Lendesk
33
McLister, Robert
RateSpy.com/intelliMortgage Inc.
28
Nazaradeh, Ramin
Gold Capital Corp.
36
O'Neil, Matthew
Mortgage Intelligence/ Connolly Capital
26
Poulin, AJ
Applied Business Software
23
Scott, Brandon
Benchmark Mortgages Inc.
38
Serra, Derek
XMC Mortgage Corporation
27
Taylor, Elaine
MCAP
32
Teixeira, Dave
Dominion Lending Centres Inc.
34
Westlake, Scott
The Westlake Team – DLC National
24
Whelan, Deanne
East Coast Mortgage Brokers
34
White, Deb
DLC White House Mortgages
28
Wilkins, Clinton
Centum Home Lenders – Clinton Wilkins Mortgage Team
36
Zimmerman, Carter
Finmo
34
APPLIED BUSINESS SOFTWARE
Over the past couple of years, AJ Poulin has bagged a number of accomplishments, including landing Toronto’s biggest private lenders and moderating a panel on new regulations at CMBA. In 2018, Poulin and his team achieved a 23% increase over their prior sales record – a significant accomplishment, given Applied Software’s 40-year history. “The game-changer was when we moved everything into the cloud,” Poulin Photo by Elizabeth Trujillo says. “Our customers loved the flexibility, that they could access our software from anywhere and not lose any functionality. That flew off the shelves, and I had to double my sales staff.” For 2019, Poulin is looking to focus on certain core platforms, as well as specific modules such as loan administration and loan origination. “Our system is used by so many private lenders across Canada, and with the enhancements we’re making, it’ll be even more so,” he says.
ANGELA CALLA Mortgage expert and best-selling author DLC ANGELA CALLA MORTGAGE TEAM
Since joining the industry in 2004, Angela Calla has been among the top 20 brokers nationally for sales volume and has received numerous awards, including being named to CMP’s Women of Influence list. She has also had the longest-running home finance show on the Corus Network for more than 10 years. “I decided early in my career that I wanted to be a voice for the industry,” Calla says, and she continues to work toward that mission. In October 2018, she released her book, The Mortgage Code, the proceeds of which will go toward building a new emergency room at Eagle Ridge Hospital. Calla is also planning speaking engagements to further support those efforts.
www.ibamag.com
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SPECIAL REPORT
HOT LIST 2019
JASON FRIESEN Managing partner and mortgage agent
SCOTT WESTLAKE Founder and mortgage agent THE WESTLAKE TEAM – DLC NATIONAL
More than a year ago, Scott Westlake decided to transition from the brokerage he co-founded and move on to the next chapter of his life. He saw the need to create the right infrastructure that would help new agents succeed, and this led him to make a concerted effort to mentor and train the next generation of brokers. In 2018, Westlake focused on investing in infrastructure and his people, including providing the tools and technologies needed to build and maintain strategic recurring referral sources. At the same time, his team formed strong relationships that created positive buzz for his business. “We are providing such a high level of advice and service that our clients and referral sources are becoming unbelievable advocates for our business,” he says. For 2019, Westlake is working toward making his team “the most reviewed and influential mortgage team in our marketplace.”
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OUTLINE FINANCIAL
In March 2018, Jason Friesen and his team joined Joanna Lang and her crew at Outline Financial, a move that has proved to be a big part of Friesen’s success in 2018. Not only did Friesen change teams, but he also doubled efforts on new business prospecting. With a group of
KYLE GREEN Owner GREEN MORTGAGE TEAM
Realtor partners across the GTA who deal with different demographics, Friesen and his team always have a fresh stream of new business flowing in. “It’s helped in our combined effort to position ourselves as industry leaders with our Realtor, financial planner and referral partners,” he says. “The economies of scale around marketing, technology and administration were evident from the start and made it a win.” In light of the changing regulatory landscape, Friesen also pays close attention to detail to ensure every deal is done right. “In a changing market where everyone has a horror story about an interaction with their bank/mortgage provider,” he says, “we have fine-tuned our process to ensure we go overboard on the due diligence we do with every client. We continue to ensure we are always under-promising and over-delivering in our service offering.” Looking ahead to the next 12 months, Friesen plans to continue developing relationships with like-minded referral partners and making sure he spends time each week working on his business instead of in it. “The market is changing rapidly, and adapting our business to stay ahead of the curve will continue to be a big focus,” Friesen says.
Despite a challenging year for many in the industry, Kyle Green and his mortgage team were able to successfully pivot and achieve volume growth in 2018. The team also adopted a new system to improve efficiencies within daily operations and welcomed two new members. “With residential lending continuing to tighten, we put more emphasis on our commercial loans and saw a sizeable increase in volume here,” Green says. He anticipates significant growth yet again for 2019, especially given the relationships his team has established with Realtors that should help draw more investors into the market. “Our vision for 2020 is to fund $300 million, with $100 million of that being commercial,” Green says.
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HOT LIST 2 9 2019
ANNE BRILL Principal broker/owner CENTUM METROCAPP WEALTH SOLUTIONS
Named Mortgage Broker of the Year at the 2018 Canadian Mortgage Awards, Anne Brill credits her success to having a great team, exercising absolute diligence and investing in improving clients’ financial literacy while offering top-notch service. This year, Brill expects to continue nurturing quality agents who will help bring the brokerage to the next level. Outside of her business achievements in 2018, Brill also realized a personal accomplishment when she rappelled down city hall to raise awareness and funds for the Make-A-Wish Foundation. She has also volunteered for Habitat for Humanity and currently serves as treasurer for Parent Council.
Email lender notes, application, and credit bureaus to:
deals@vwrcapital.com D IMITRI K OSTUROS
Chief Operating Officer dimitri@vwrcapital.com
P AULA H UTTON
BDM - Prairies paula@vwrcapital.com
www.mortgagebrokernews.ca
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SPECIAL REPORT
HOT LIST 2019 ANA CRUZ
WIN LUI
Mortgage agent/team lead
Principal
CITY MORTGAGE GROUP, MORTGAGE ARCHITECTS
CLEAR TRUST MORTGAGES
In mid-2018, Ana Cruz decided to branch out on her own, establishing City Mortgage Group and forming her own team of licensed agents, an underwriter and client care manager. Since opening up shop, Cruz achieved her highest volume ever, even amid all the changes in the industry last year. She also earned a place on CMP’s Women of Influence list in 2018. The strategy behind her success was simple: “Focus, focus, focus,” she says. “My favourite quote from George Lucas – ‘Always remember that your focus determines your reality’ – [was] my motto for 2018. I’ve focused on staying in touch with each of my partners and clients. The key strategy has been to make the call, care about the people, and everything will fall into place.” Having just moved into a new office and with plans to grow her team, Cruz believes 2019 will be her best year yet.
A consistent top performer who has been ranked as one of DLC’s top brokers and among CMP’s Top 75 Brokers, Win Lui maintained strong volume in 2018 despite the difficult market environment, which he credits to putting more emphasis on follow-ups and customer service. While the market isn’t expected to ease up this year, that doesn’t mean Lui and his team will slow down. He predicts that “2019 will definitely be another challenging year; however, I will still push for more growth in 2019. If we stay disciplined, driven and focused, there is no reason why it cannot be done.” “Our focus in 2019 is to call, care and repeat,” she says. “I will never forget the saying: ‘People don’t care how much you know until they know how much you care.’”
MATTHEW O’NEIL
SHIRL FUNK
MORTGAGE INTELLIGENCE/ CONNOLLY CAPITAL
Mortgage agent/president
Broker/owner SHIRL FUNK MORTGAGES, POWERED BY THE MORTGAGE CENTRE
Over the past year, Shirl Funk has been able to expand her business’s reach by increasing Realtor connections and referral sources while also tallying up some personal successes. Shirl Funk Mortgages was nominated for Best Newcomer Mortgage Brokerage at the 2018 Canadian Mortgage Awards; in addition, Funk completed her AMP competency exam and was elected as a director for the Manitoba chapter of Mortgage Professionals Canada. To continue this momentum, Funk expects to double her team of active agents this year while maintaining $30 million in funded volume.
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Matthew O’Neil joined the mortgage business as a mortgage specialist at RBC and became one of the top five on his team for mortgage volume within a short period of time. In addition to being a top-producing agent at Mortgage Intelligence, O’Neil expanded the scope of his business in 2018 by teaming up with key partners to start a mortgage administration company, Connolly Capital. As the firm’s president, O’Neil oversees all new mortgage originations, as well as the day-to-day operations of the business. In the midst of all this activity, O’Neil experienced great success by understanding the importance of delegating files in order to focus on business development.
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HOT LIST 2 9 2019
DEREK SERRA Managing director, sales and marketing XMC MORTGAGE CORPORATION
Derek Serra had a banner year in 2018: He introduced a rebranded XMC Mortgage Corporation to the market and has continually worked to build momentum around an updated vision, tailored to the needs and goals of entrepreneurial brokers and their clients, with specialized products and personal service that offer both brokers and clients a unique and
authentic experience. “We focused on key markets and forged partnerships with some of the best brokers in the country,” Serra says. “We did that by growing our team – new BDMs in the capital and K-W regions, as well as getting out there myself, building relationships, trust and partnerships.” Serra and XMC also streamlined processes to remove friction and add ‘delights’ such as free appraisals and mortgage payment giveaways. “We examined every step of [the broker’s] journey and looked for ways to include new
products and find efficiencies,” he says. “I love to tell the story about how the winners of a mortgage payment were a week out from their wedding. That was a fun moment for me, getting to personally share some joy with a client.” The year ahead will be all about evolution and development as Serra continues to look for ways to leverage technology while continuously developing the XMC Partner Broker Network. “We’ve generated some buzz and goodwill – for which we are so grateful – and now the work really begins,” he says.
www.mortgagebrokernews.ca
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SPECIAL REPORT
HOT LIST
HOT LIST 2019
2 9 2019
DEB WHITE Owner and mortgage expert DLC WHITE HOUSE MORTGAGES
Despite having been in the industry for almost two decades, Deb White believes that staying successful means always learning and being willing to ask for help when needed, while refusing to sacrificing a sense of balance. White describes her most significant accomplishment in 2018 as “being able to stay focused on my fitness goal and feeling the healthiest I have in years. Being strong, both mentally and physically, will enhance my business side. In 2018, I focused on staying balanced – maintaining great relationships with my family and friends, as well as my business partners. I also learned to delegate more [to] give myself more time to focus on my goal.” In 2019, White hopes to grow her business by investing even more quality time with the people in her team’s circle, whether it’s business or family. This, she says, will require taking time away from technology in order to offer clients a personal touch.
ROBERT MCLISTER Founder/co-founder RATESPY.COM/INTELLIMORTGAGE
Even during one of the toughest years in recent history for the Canadian mortgage industry, Robert McLister still managed to grow his business, expanding unit sales of intelliMortgage’s e-mortgage offering for self-directed borrowers by 41%. In addition, RateSpy.com nearly doubled its unique visitor traffic in 2018, thanks to its policy of displaying rates from all prime mortgage lenders in Canada, which resonated with consumers who have become more educated about information bias and are demanding better options. For 2019, RateSpy is in the process of helping multiple lenders launch marketing campaigns while also preparing for a new media partnership. “Consumer awareness and trust don’t come easy,” McLister
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says. “We’ll need to continue juxtaposing the site’s benefits and objectivity with competing sites. It takes time, but doing the right thing for consumers always pays in the end. If you live by that creed and keep delivering value, you just have to wait for word of mouth to work its magic.”
MARCEL GHAZOULI Mortgage broker PREMIERE MORTGAGE CENTRE
Premiere Mortgage Centre’s PLUS [the Program that Lets U Sell] initiative was a highlight for Marcel Ghazouli in 2018. Ghazouli built PLUS, a virtual fulfillment program that now manages more than $400 million in mortgage volume for 16 agents, designing every aspect of the program to allow agents to focus more on growing their customer and referral base. “The story that stands out most for me is when one of the agents on the program said, ‘I can have breakfast with my daughters now’ in response to a question about how the program has changed his life,” Ghazouli says. “From a business perspective, expanding the program to our partner brokerages in the West and their teams is especially gratifying – with an average annual increase of 20% in mortgage volume per agent, we feel confident that we’re on the right track.” For 2019, Ghazouli expects the team to achieve a 100% increase in volume, based on projected growth from expansion to brokerages in the West, in addition to maintaining organic growth in the East.
www.ibamag.com
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HOT LIST 2 9 2019
Angela Calla DLC National, Angela Calla Team Asim Ali DLC Producers West Financial Christine Buemann DLC Canadian Mortgage Experts Dave Teixeira DLC headquarters Deb White DLC White House Mortgages Kyle Green DLC Homeline Mortgages, Green Mortgage Team Ltd. Mike Hattim DLC Forest City Funding Ramin Nazaradeh DLC Gold Capital Corp. Robert Afan DLC Clear Trust Mortgages Scott Westlake DLC National, The Westlake Team Win Lui DLC Clear Trust Mortgages, The Win Lui Team We are pleased to congratulate 11 incredible members of the Dominion Lending Centres network on making the 2019 HOT List! DLC members made up nearly a third of the entire list, which is by far the most of any network. We are Canada’s leading mortgage company because we provide the tools and opportunity for every member of our network to be the best in the industry. And the results speak for themselves.
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SPECIAL REPORT
HOT LIST 2019
JENNIFER ANNE BURRAGE Regional business manager – Atlantic Canada EQUITABLE BANK
TREVOR HANSEN Partner and broker XEVA MORTGAGE
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Jennifer Burrage accomplished several significant milestones in 2018. She was elected to a three-year term on the board of directors of Mortgage Professionals Canada, where she serves as director for Atlantic Canada. Burrage also organized the first Women in the Mortgage Industry Awards of Excellence in 2018, which she co-hosted with WIMI co-founder Hali Noble. In addition, Burrage has been on the board of CMBA Atlantic for the past four years and is a founding member of Brokering Wishes and founder of Divas and Diamonds, both of which raise funds for Make-A-Wish. “Being a part of wonderful things happening in our industry allows me to meet and work with great people,” she says. “It also keeps me top of mind with my broker clients when I am supporting and participating in their initiatives.” This year, Burrage is looking to grow MPC’s membership and forge stronger connections and communication between MPC and brokers and industry partners. She is also pursuing her MBA in financial services at Dalhousie University.
In a time of vast change in the mortgage industry, Trevor Hansen takes pride in continuing Xeva Mortgage’s track record of successful underwriting, expansion and maintaining its one-of-a-kind culture. In 2018, Hansen and the Xeva leadership team focused on providing brokers with industryleading underwriting technology and support, unique auxiliary product offerings, mentorship, education, and a unique client care package to equip brokers to stand out from their competition. Xeva Mortgage was recognized for the third consecutive year as one of CMP’s Top Brokerages in 2018 and was named as a finalist for Brokerage of the Year at the Canadian Mortgage Awards for the fourth straight year. In 2019, Hansen expects to lead Xeva to expand into the Alberta and Ontario markets and to help agents in these markets achieve record volume levels while saving thousands of dollars in commission splits and franchise fees.
REMI KORENT Mortgage broker ROCK SOLID MORTGAGES
Although funded volume is often held up as a measure of success for brokers, Remi Korent finds that being able to make tough deals happen brings a different level of satisfaction. On top of achieving his best year and being among the top 20% of TMG brokers nationwide, Korent is most proud of having funded all the tough deals that came his way – “the kind of deals where clients were either told no by their bank or a file that someone else couldn’t get done,” he says. “I feel there’s way more value in genuinely helping people who didn’t think they would be able to qualify … the groundswell associated with that is powerful.” For Korent, continuous success depends in large part on positioning himself in the market. “You can be the best mortgage broker in the world and you still need the phone to ring, so I have had to refocus my efforts to marketing,” he says. “[I] increased my online presence with a focus on customer reviews and social media to make mortgages more palatable for the average consumer.” This includes putting a mortgage spin on popular forms of media and using readily available resources such as Google Business and AdWords, all while regularly touching base with existing face-to-face referral sources and networking with potential industry partners. Recently, Rock Solid Mortgages moved over to Quantus Mortgages, and Korent looks forward to expanding his team and business in the future.
www.mortgagebrokernews.ca
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HOT LIST 2 9 2019
DALIA BARSOUM President and principal broker STREETWISE MORTGAGES
Dalia Barsoum and the Streetwise Mortgages team experienced many milestones and achievements over the past 12 months, including winning the award for Outstanding Customer Service at the 2018 Canadian Mortgage Awards.
Barsoum was also named to CMP’s Women of Influence and Top 75 Brokers lists in 2018. “Every year brings new opportunities for growth,” Barsoum says, adding that her team managed to not only weather the storm of change, but also effectively guide clients to adopt the best financing strategies and tactics to help them adjust to the new environment. Beyond her work at Streetwise, Barsoum has taken on the role of chair
for the board of Property Investment Professionals of Canada [PIPCA], a new not-for-profit association formed by industry practitioners to represent and raise the professional standards of those involved in property investment. Barsoum has played a pivotal role in the establishment of the association in Canada and continues to guide its direction by working with various industry practitioners to further its goals.
www.mortgagebrokernews.ca
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SPECIAL REPORT
HOT LIST 2019
JANNA DAWDY Owner and mortgage agent
ELAINE TAYLOR Vice-president of sales MCAP
The first woman in more than a decade to be elected vice-chair of the board of directors for Mortgage Professionals Canada, Elaine Taylor considers the honour not only a significant personal milestone, but also a sign of the industry’s continued diversity. “I take this mandate to heart and am excited to represent all brokers, lenders, insurers and industry suppliers in driving our industry forward,” she says. As for the strategy behind her success as VP of sales at MCAP, Taylor says: “Our business has always been about people. As I take on greater responsibilities, I have turned my attention to mentoring and coaching others. If I can grow a strong team around me and give them the skills, support and freedom to grow, we can all achieve more together.” In 2019, Taylor expects another challenging yet fulfilling year for MCAP and the industry as a whole as she and company focus on strategies that will differentiate MCAP in the market.
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JCMORTGAGES.CA
In January 2018, Janna Dawdy opened JCMortgages.ca’s first storefront location and hired multiple staff; a few months later, she founded JCMakes a Difference, her business’s charitable initiative. “Having this space and team has allowed not only for the growth of the business, but so much more,” Dawdy
AJAY KAITH Vice-president of business development OPPONO LENDING COMPANY
says. “JCMakes a Difference is our very own charitable initiative, designed to promote a movement of accepting all generosity for the greater good.” When promoting her business, Dawdy’s marketing strategy has remained consistent for years, becoming bigger and better over time. “I think 2018 was the year we really brought together all our traditional marketing with our online presence,” she says. “We really grew our following on our social media profiles and became engaged with our online community.” Looking to the future, Dawdy plans to keep expanding her business while staying focused on issues she’s passionate about, such as hiring additional support staff to work on key projects. “I want JCMortgages.ca to ultimately be known for so much more than just mortgages,” she says. “I want to be seen as a leader in the industry for promoting financial literacy and well-being through a positive lifestyle and homeownership. I have begun to develop a series of educational programs designed for teenagers, parents, less-thanfortunate families and clients. I want everybody to know about the importance of financial well-being and to have access to the tools and knowledge that isn’t delivered through our educational system.”
Over the past five years, Ajay Kaith has successfully enabled his broker partners to fund $300 million in private deals. In 2018 alone, Kaith and his brokers funded more than $100 million in first and second mortgages, an increase of 25% from 2017. “I try not to be complacent,” Kaith says of the approach that has propelled his success. “Our industry is constantly changing, and I like to stay one step ahead to better service my brokers when they are entering the private space or [aiming] to fund more deals month to month.” For 2019, Kaith is looking to integrate AI solutions and apply automation in order to ease bottlenecks and pressure points in Oppono’s existing processes and help brokers stay ahead of the game.
www.mortgagebrokernews.ca
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HOT LIST 2 9 2019
JAMES LAIRD President and broker of record CANWISE FINANCIAL
DAN MACDONALD
CanWise Financial saw impressive growth in 2018, including expanding from 30 to 50 team members within the year. President and broker of record James Laird also upped his media outreach last year, securing appearances on CNN, CBC and CTV, as well as being featured in a number of news publications. This was all on top of Laird’s success earlier in the year when Ratehub – CanWise’s parent company, which Laird co-founded – raised $12 million in investment to accelerate its growth of mortgage and insurance offerings. That momentum is only expected to continue. In 2019, Laird predicts CanWise will grow an additional 30% to 50%, driven by a shift in consumer preferences for tech-enabled brokerages.
Product director LENDESK
Is his role as director of product at Lendesk, Dan MacDonald has led the charge on lender integrations, including the rollout of the Lendesk Lender Network, the industry’s second independent and non-brokerage-owned lender network. The direct-to-lender deal submission network features a number of lending institutions and enables brokerages and agents to pull credit from both Equifax and TransUnion and submit mortgage applications through the network to participating lenders using a single application.
www.mortgagebrokernews.ca
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SPECIAL REPORT
HOT LIST 2019
JULIE BRENNEMAN Principal broker THE MORTGAGE CENTRE HOMETOWN FINANCIAL
DAVE TEIXEIRA Vice-president, operations, public relations and communications DOMINION LENDING CENTRES
Dave Teixeria continued to be a driving force at Dominion Lending Centres in 2018. He was instrumental in deepening
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Julie Brenneman had quite a year in 2018. She kicked it off by being nominated for the AppreSHEation Award at the Oxford Country International Women’s Day event, and she later won the 2018 WIMI Ontario Award. She also faced her fear of public speaking by presenting at MPC’s National Mortgage Conference, and she has been invited to speak on behalf of MPC at events throughout Canada this year. At Hometown Financial, Brenneman hired new staff to make herself more available to clients, and she plans to add more agents to her brokerage in 2019. To accommodate this growth, Brenneman has worked hard to make sure all the agents at her brokerage are aligned and “share in a common vision of providing excellent customer service.” She also gives back to her community by working with the Woodstock-Ingersoll & District Real Estate Board on the Realtors Care Food Drive and other charitable planning.
lender relationships and improving internal processes, as well as launching a new broker tool, the My Mortgage Toolbox app. Teixeira is committed to advancing the goals of not only DLC but the entire mortgage industry. He has met with and spoken to government officials and committees across Canada about the impact of B-20 and other housing issues. He is also very active in the community and was honoured in 2018 with the Canadian Mortgage Award for Outstanding Philanthropy and Community Service. He serves as chair of the Terry Fox Hometown Run, director of the Terry Fox Foundation advisory committee and, until recently, served as vice-chair of Douglas College and vice-chair of the Adoptive Families Association of BC. In addition, he is a co-founder of Pink Shirt Anti-Bullying Day, earned the Queen Elizabeth II Diamond Jubilee Medal in 2012, has served as a speaker at various industry events, and is regularly called upon by the media to offer insight into the mortgage industry, politics and technology.
CARTER ZIMMERMAN CEO FINMO
In creating Finmo, Carter Zimmerman found a way for mortgage brokers to offer clients a truly digital experience that aims to deliver a one-hour mortgage approval. Throughout 2018, Zimmerman was busy working with prominent brokers and innovative leaders outside the industry with the goal of releasing Finmo in early 2019. “Our strategy was to listen intently to customers and brokers and try to ask better, more genuine questions,” he says. “I believe that if you want to maximize creativity and output, you have to start [by] analyzing your questions.”
DEANNE WHELAN Owner and mortgage broker EAST COAST MORTGAGE BROKERS
In 2018, Deanne Whelan became co-owner of East Coast Mortgage Brokers, which has grown to become the largest brokerage in Newfoundland and one of the largest in Atlantic Canada. In doing so, she became the only female owner of a brokerage in Newfoundland, a status she regards as a privilege and a sign that women in the industry are increasingly being empowered to grow and make a difference. Looking forward, Whelan hopes to grow her own book and the brokerage by continuously investing in the education of both brokers and clients. In the past few years, she has seen the need for brokers to prioritize refinances as much as purchases in order to continue thriving in the market. “People are struggling more and need support to make their lives simpler and need guided help to get back on track financially,” she says.
www.mortgagebrokernews.ca
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HOT LIST 2 9 2019
DONG LEE
ASIM ALI
President
Mortgage consultant
MORTGAGE ARCHITECTS
DLC PRODUCERS WEST FINANCIAL
In a year when the mortgage broker channel has decreased by almost 10%, Dong Lee saw his company grow in both volume and agent count. “That comes from supporting our brokers to grow their business and by attracting exceptional brokers to our brokerage,” he says. For Lee and Mortgage Architects, human capital is critical. Understanding that in a difficult business, surrounding yourself with great people can have a significant impact on the success of an individual and a business, Lee brought on additional team members in 2018 to supplement his already talented crew. “In an uncertain business environment, we’ve decided that doubling down on good people was paramount to growth,” he says. “The strategy has already paid dividends.” In addition, Mortgage Architects deployed new mobile technology and other critical value-added services. A peer explains how under Lee’s leadership, “sales and revenues have increased in 2018, and brokers in the MA network are appreciating the value, which all leads to attracting terrific new mortgage agents and planners to MA.” With that momentum, Lee is confident that his network can achieve double-digit growth in 2019.
RYAN DENNAHOWER Vice-president and mortgage broker BESPOKE MORTGAGE GROUP
Asim Ali achieved phenomenal success in 2018, despite it being just his second year in the mortgage industry. By December, Ali had funded approximately $90 million, and he was also a finalist for Best Newcomer – Individual Agent/Broker at the Canadian Mortgage Awards. Ali attributes his success to building his knowledge of different lenders’ products while maintaining strong relationships with lender partners, working closely with them and doing everything he can to get clients’ files approved. “I want the process for my clients to be seamless and effortless [and to] continue doing what I am doing,” he says, “but tweak the process a bit [to make sure] 2019 is going to be a bigger hit.” Deeply connected to his community, Ali volunteers every week at the local food bank, hosts community events and donates to social welfare programs.
Amid a year filled with changes and uncertainty, Ryan Dennahower had an incredibly productive 2018: He grew his overall volume by 30%, and Bespoke Mortgage was named by CMP to the Top Brokerages and Top Independent Brokerages lists. Dennahower was also named a CMP Young Gun in 2018. “As a Young Gun, I took the initiative to learn and be mentored from industry veterans who’ve gone down the path of success,” he says. “A common theme was to hire an assistant or underwriter to help enhance the service delivered to my clients and increase efficiencies with lenders. That’s exactly what I did, and I was fortunate enough to hire two amazing underwriters. The success we encountered in 2018 would not have been possible without either of them.” Dennahower is also known for his effective use of social media to highlight his brokerage’s products and services and engage with potential clients. In addition, his company’s membership with CIMBC has enabled Dennahower to leverage lender relationships to increase efficiencies and volume and achieve enhanced profitability.
www.mortgagebrokernews.ca
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SPECIAL REPORT
HOT LIST
HOT LIST 2019
RAMIN NAZARADEH Construction and commercial mortgage broker GOLD CAPITAL CORP.
MATTHEW ABLAKAN Broker of record/owner MILLENNIAL’S CHOICE
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2 9 2019
Ramin Nazaradeh counts being a finalist for Commercial Mortgage Broker of the Year at the CMAs as his most significant accomplishment in 2018. But that wasn’t his only success. He achieved his AMP designation and also oversaw the expansion of his team into new networks, which helped the business grow significantly. “Constant personal and professional development and innovation have been tremendously impactful,” Nazaradeh says. “We have worked very hard to have a strong and consistent brand, which transcends all of our marketing collateral. All of these have contributed to us being a powerful force in our niche in commercial and construction financing.” Armed with that energy and momentum, Nazaradeh hopes to gain further traction with clients and referral partners in 2019, while keeping an eye out for opportunities to reach new markets.
Matthew Ablakan calls 2018 “the come-up year” for Millennial’s Choice – the brokerage grew significantly while also hosting a variety of educational seminars and networking events. Of the programs and initiatives he launched, Ablakan considers MC University his proudest achievement by far. Created in the summer of 2018, MC University aims “to empower Canadians, through education, with the ability to make the best financial decisions.” The program is directed toward helping high-school students gain financial literacy. “We believe that by educating young adults at the high-school level, we can completely avoid some of the problems Canadians today are faced with in areas pertaining to credit, housing affordability and debt,” Ablakan says. To date, the Millennial’s Choice team has visited four different schools nine times. Ablakan expects 2019 to be Millennial’s Choice’s “expansion year,” which will involve full integration of the company’s new insurance division, on top of further increasing mortgage volume thanks to a number of condo projects.
CLINTON WILKINS Senior mortgage advisor CENTUM HOME LENDERS – CLINTON WILKINS MORTGAGE TEAM
As the leader of his own team under the Centum banner, Clinton Wilkins has created an environment where agents thrive and achieve their target goals. Under his leadership, the Clinton Wilkins Mortgage Team experienced year-over-year growth of more than 50% in 2018, and Wilkins was named Mortgage Broker of the Year (Fewer Than 25 Employees) at the 2018 Canadian Mortgage Awards. He also continues to hold the top spot within Centum for YTD units. “We’re excited to be able to compete on a national level and to continue to help our customers understand their options to make their homeownership dreams a reality,” Wilkins says. He credits his team’s success to a combination of strategies, including a focus on education, creating informative content, organizing/attending workshops, making media appearances, and catering to the needs of the community across all social platforms and channels. “We are constantly working on our continued growth and are always looking to improve our process and help our customers on their terms,” he says. “We will continue to produce original content, host workshops and collaborate with other professionals to help reduce the noise in the industry and to improve financial literacy in our communities.”
www.ibamag.com
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29/01/2019 4:13:03 AM
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SPECIAL REPORT
HOT LIST 2019
BRANDON SCOTT Managing partner and broker BENCHMARK MORTGAGES
Recognizing the effect of online content on consumer trends, Brandon Scott launched a targeted video series entitled “The BS Report” last year to provide mortgage advice to local homebuyers. He also produced a second video series that offered a closer look at real estate transactions from a financing perspective. His efforts helped Benchmark Mortgages grow in 2018 despite external pressures on the industry. “Without a doubt, [the key to success] has been the determination to stay focused on running our race,” Scott says. “It’s so easy to get distracted or tempted to mimic the strategies of other successful brokerages when this industry is full of some very bright and creative entrepreneurs. But identifying early in the year what was going to allow our team to excel and sticking to that plan helped us achieve one of our best years.” Aside from membership in organizations such as AMBA and MPC, Scott has been involved in an initiative to support Boyle Street Community Services, which provides programs and services to more than 9,000 individuals every year to help them escape the cycle of poverty and homelessness. In September 2018, Scott became a major sponsor as part of The Face of Resilience Gala, which raised more than $180,000 for Boyle Street Community Services.
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SHUBHA DASGUPTA President and CEO CAPITAL LENDING CENTRE
ROBERT AFAN Founder and CEO CLEAR TRUST MORTGAGES
In 2018, Shubha Dasgupta led the rollout of proprietary underwriting software known as ALFRED, which provides agents real-time visibility, transparency and insight into their deals while ensuring real-time communications and lead generation geared towards accelerating an agent’s growth. “This system is everything we believe in as an organization and as people,” Dasgupta says. “We were able to combine care and passion along with visibility and transparency.” Together with the leadership team at Capital Lending Centre, Dasgupta was able to increase the number of agents from 40 to more than 100 in 2018 and increase annual volume from $150 million to more than $300 million. All of these accomplishments were achieved through his conviction in the pillars and the culture at Capital Lending Centre, as well as maintaining consistent training and support. “I believe all my peers [on the Hot List] tackled 2018 with a similar belief: Change creates opportunity,” he says. “With this in mind, we tackled 2018 in search of opportunity, and much of this came in the way of education, support and providing our agents with the tools required to differentiate themselves in a challenging and competitive landscape.”
Under Robert Afan’s guidance, Clear Trust Mortgages funded more than $1.5 billion in 2018, achieving 50% year-over-year growth, and was named one of CMP’s Top Brokerages for the third year in a row. Clear Trust also launched a commercial mortgage department and has steadily grown its team since the business started, boasting more than 120 brokers today. As the leader of Clear Trust, Afan is involved in every aspect of the business, from always looking out for partners to arranging lender workshops and facilitating quarterly training for new brokers. In 2019, Afan and his team are planning to add wealth management strategies in order to provide complete financial solutions for clients, in addition to rolling out initiatives focused on customer service and retention.
www.mortgagebrokernews.ca
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HOT LIST 2 9 2019
CHRISTINE BUEMANN Director DLC CANADIAN MORTGAGE EXPERTS
Christine Buemann is one to watch out for in 2019: Not only is she one of DLC’s top-performing brokers for monthly volume and one of CMP’s 2018 Women of Influence, but she also successfully hosted the 2018 CME Summit, a two-day conference in Calgary that hosted more than 100 brokers and lenders. Last year, Buemann was appointed a director of Canadian Mortgage Experts [CME], which gives her a seat at the table at the number-one DLC franchise in Canada, something she considers to be her breakout moment of the year. This year, Buemann will focus on growing and diversifying both CME and her own mortgage business.
AMEERA AMEERULLAH Owner and mortgage agent CANADIAN MORTGAGE & FINANCIAL GROUP
Named Alternative Broker Specialist of the Year at the 2018 Canadian Mortgage Awards, Ameera Ameerullah launched a new fund last year that offers a diversified risk-adjusted portfolio for
investors and gives borrowers an option to access capital at a good rate. “It was essential to stay calm in an unsettled market and align ourselves with credible platforms locally and internationally to improve aspects of the business for both investors and borrowers,” she says. “[This has meant] revising strategies when needed, learning from other successful people and not being afraid to change or switch proverbial gears if required to attain better results.” For 2019, Ameerullah is seeking to grow her business further by focusing on specific target markets and increasing networking platforms. She will also focus on improving volume with lenders while raising capital for Canada Mortgage & Financial Group’s new Limited Partnership Fund to service the alternative sector in residential and construction finance. “We see 2019 as a stellar year,” she says, “launching new programs/divisions and hiring a full staff composite to handle the anticipated growth results of CMFG.”
MIKE HATTIM
JASON KAY
Mortgage agent
NORTHWOOD MORTGAGE
DLC FOREST CITY FUNDING
Since Forest City Funding opened its doors, Mike Hattim has put together multiple marketing campaigns, including the DLC Blue Light, a beacon light outside the office that flashes when an agent is on duty. He also secured a new location for the company that helped attract more walk-in business and has bagged multiple awards, thanks to continuous growth in the business. To boost his business in 2018, Hattim turned his attention to existing clients. “I focused on direct contact on a more frequent basis,” he says. “Although we are always looking for new business, many times you can generate more from your existing book.”
Mortgage broker
Jason Kay has had a fulfilling couple of years: In addition to his 15% increase in personal production, he successfully mentored a new agent who has already been recognized at the CMAs. In 2018, Kay implemented Verico’s Broker Base Plus CRM and effectively outsourced email and social media marketing while retaining old-school measures such as sending clients handwritten cards on special occasions. He also led his team to expand the number of private deals it funded from two in 2017 to more than 25 in 2018. Kay says seeing a shift from Realtorbased referrals to past client referrals is proof that his young business is beginning to mature. “We see 2019 as another challenging year,” he says, “but believe our strategies will continue to propel us forward.”
www.mortgagebrokernews.ca
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PEOPLE
BROKER INSIGHT
Maintaining momentum Sue Hameed tells CMP how she went from industry newcomer to co-founding her own brokerage in the span of four years
CMP: How did you get into the mortgage broker industry? Sue Hameed: I was involved in my dad’s family business my whole life prior to getting into the mortgage business and was well versed in admin, sales and customer service, but I had no experience in the financial industry. When I gave birth to my first child in 2010, I was actively running the family business because my father had a heart attack at the same time. I went back to work with within two weeks of giving birth because my dad needed time to recover. It was very difficult. When I became pregnant with my second child in 2012, I said to myself, “I am not doing a repeat of that scenario again.” My heart wasn’t in the business – I always felt like I needed to do something else, build something for myself. When I learned about what a mortgage broker does, it intrigued me. While I was pregnant, I registered for the course online and passed the exams right before I gave birth to my daughter in December 2012. In March 2013, I joined a brokerage and got started.
CMP: How would you describe your time in the industry? SH: It’s been amazing. The first year was a massive learning curve because I was starting from scratch. I knew nothing about the products and lenders, and I had to work
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at every deal that came in. After my first year, I started really enjoying it. I loved going out and getting new clients and was really intrigued by the different files that came in, trying to figure out the pieces to each puzzle. A year and a half in, I knew this was definitely the career I was going to be sticking with and went full force.
CMP: You co-founded Platinum Mortgages after being in the industry for a relatively short period. What was that experience like? SH: I never would have thought I’d be opening up my own office that early in my career – I was four years in at the time. But looking back, it was definitely the right moment. My business partner and I had gotten to the point where we wanted to start building a business and a team together.
We’ve seen an explosion in business in the last year – it’s been fantastic.
CMP: Do you have a particular area of specialization? SH: I have never wanted to narrow my business down to a niche. I didn’t want to be a broker who only did A or B lending. Yearover-year, the percentage and mix changes, but I have always done A, B, C and even commercial. In my first year as a mortgage agent, I was getting some potential commercial deals, and I would never refer them out. I would want to work on them and figure it out myself, because that’s the only way to learn.
CMP: How have you been able to achieve so much in a short period? SH: From day one, I always looked at it as my own business, even when I was an agent under a brokerage. My plan from the begin-
HAMEED’S TIPS FOR OTHER BROKERS “Treat it like you’re a business owner. You have to market, brand and network – to go out and find the business. Make sure you surround yourself with good support. I can’t say enough about the BDMs and the underwriters who assisted me in the beginning and were aware that I was new to the industry. I was the one picking up the phone and always asking questions. They were all fabulous, so helpful. I had those people in the beginning pointing me in the right direction. That helped me build my base.”
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FAST FACTS: SUE HAMEED
BROKERAGE Platinum Mortgages Ottawa
JOB TITLE Co-founder/broker
YEARS IN THE INDUSTRY 5
“I’ve never been the kind of person who sits back and waits for things to fall into my lap, so I will go out and actively network ... I’m not afraid to put in 60- or 70-hour workweeks” ning was to build a solid client base, solid referral sources and develop a strong reputation and brand. I’ve never been the kind of person who sits back and waits for things to fall into my lap, so I will go out and actively network and look for things. I’m not afraid to put in 60- or 70-hour workweeks.
CMP: What did it mean to you to be
LOCATIONS SERVED Ottawa and surrounding areas
ACCOLADES Named a CMP Young Gun in 2017
named a CMP Young Gun in 2017? SH: It was definitely humbling. When I first started, I didn’t have expectations; I just put my head down and went at it full force. It’s humbling because I’m still relatively new compared to veterans in the industry. I feel I’m getting the respect based on what I have accomplished in a short period of time. It is really rewarding.
MEDIA PRESENCE Regular guest on CTV’s Ask the Experts
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SPECIAL PROMOTIONAL FEATURE
STATED INCOME
What happened to stated income? Among the many changes ushered in by the new B-20 was the elimination of stated income products. Rejean Roberge of CWB Optimum Mortgage walks through the new options for brokers with self-employed clients
LATELY, YOU might be asking yourself, “Where did that stated income product go?” For us federally regulated financial institutions, 2018 marked the year we could no longer legitimately use the term ‘stated income.’ Does that mean we no longer offer common-sense lending solutions for your self-employed or commissioned clients? Absolutely not. However, as you have undoubtedly experienced, we will be asking you for more documentation to verify their income. You’ve likely found that lenders are not only asking for more documents than they did before, but also that every lender’s expectations are different. Our interpretation of the B-20 guideline is that using only bank statements and a stated declaration letter from your client to interpret income does not meet the guidelines because this doesn’t demonstrate repayment ability. B-20 states that “an independent third party should be able to replicate all aspects of the underwriting criteria.” Lenders need to have a more rigorous approach when it comes to income, and that requires more understanding and documentation. You may notice lenders asking more questions about
42
clients and their income. If we are looking at a self-employed client, we need to understand the business to interpret what we see in the documentation. For example, let’s say you submitted a deal with a T1 General (Statement of Business or Professional Activities), along with a breakdown of the business and recent bank state-
Your BDMs and underwriters are excellent resources – use them! Let us walk through those deals with you to ensure we are all aligned with your client’s needs and that there are no surprises as we work through the file. (That’s not to say surprises won’t happen – in this lending space, that can be a regular occurrence.)
Whether your clients are self-employed or need to use different sources of income, ask questions – because we will, and our expectation is that you will have the answers ments. This allows us to show where the income is derived, give a sound explanation of the client and their business, and show recent sales activity (deposits in their bank account) and consistency that connects back to that business. Every file is different, and navigating through the various alternative lending policies and guidelines can be challenging.
Just as you can look to us for guidance, we need your help, too. You’ve heard this before, but here it is again: Know your client. Whether they’re self-employed or need to use different sources of income, ask questions – because we will, and our expectation is that you will have the answers. Want to speed up the approval process and have fewer questions from your under-
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writers? Use your notes section to tell us your client’s story. Why has your client’s income improved so much in this year compared to last year? Are they a fairly new business owner and landed a great contract, improving their 2018 income? Tell us – explain the circumstances or let us know of any anomalies on the file. Of course, you should also review your documentation to satisfy yourself with its legitimacy and your client’s ability to make repayments. We offer a great checklist on our website to help you track the documentation we require and what you’ve sent in on
each file. If the documentation isn’t the same as what was originally discussed during the start of the file, give us a call – let’s talk and see how we can make it fit. At the end of the day, you have many options for your clients. Just know that as a Schedule I bank, we are still one of them in the alternative lending space. If product features like portability and an exit strategy without astronomical pre-payment penalties are important to your client, give us a call. You need a lending partner you can count on to be upfront and honest with you about your deals, a partner that will give you the straight
answer – and fast. That’s what we strive for. If you have any questions, please reach out to your BDM directly. They will be able to assist you or help you find the answers. Make us your first call, and we will let you know if your deal is a fit. Rejean Roberge is the vice-president of CWB Optimum Mortgage and is accountable for the vision and the overall direction of the company. She leads the 100+-person nationwide team at CWB’s fastest-growing business line to successfully support CWB Financial Group’s strategic plan and vision.
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FEATURES
PRODUCTIVITY
RE: RE FWD: FWD: Re Bill K TX The big event is approaching. Contract attached. (No subject)
Don’t let sloppy emails ruin productivity Is email taking up too much of your time? Carson Tate explains how to regain control 44
Wait a minute – what? These emails were just sent to me, and I have no idea what any of it means. To make matters even worse, these are just a few of the daily examples of friends and colleagues not using email effectively. And almost immediately upon arrival, they turn my inbox into a slovenly mess. In writing my book, Work Simply, I did a lot of work to understand how we are using email effectively – or not. I discovered that we’re all bogged down by the sheer volume of email. And it takes a lot of time for us to slough through that volume because these emails are unclear, ambiguous and flat-out sloppy. Discerning exactly what we need to know or do and determining if a response is needed requires a lot of our attention and focus. These sloppy emails waste your time. And they cost you hours each week. Which means they’re also costing you money. When you feel like you’re drowning in a sea of sloppy, thick mud in your inbox, how do you begin to clean up the mess – and then how do you prevent it from reoccurring?
Automate your responses to unclear messages When you receive an email message that is unclear, vague or just causes you to say “What?”, send a response asking for additional information or clarification. To do this quickly, use a text expander software app like FastFox for PCs or Text Expander for
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Mac. A text expander works in any program, including your email platform, and allows you to insert commonly used text with just a keyboard shortcut. No longer will you waste your precious time typing out a response – you can reply automatically within seconds.
Craft more effective email messages Dramatically reduce the volume of emails you receive by crafting more effective messages that are understood upon opening and do not require multiple back-and-forth emails asking clarifying questions. To craft more effective emails, answer four key questions in every single email you send: who, why, what and how.
you were sitting across a table from them and discussing the topic in person. WHAT? Ask yourself a series of ‘what’ questions to help shape the content of your email. What is the purpose of the email? What are the main points to be communicated in this email? What are the key facts? What references or research data need to be included? What must everyone know? Do not hit the send button until you have included every piece of detail required. HOW? Ask yourself how you want recipients to respond. Describe this explicitly in your email. If there’s a deadline, say so. If
To craft more effective emails, answer four key questions in every single email you send: who, why, what and how WHO? This breaks down into two sub-questions: Who needs to respond to, take action on or make a decision about this information? Put their name(s) on the ‘to’ line. Who needs to know this information? Put their name(s) on the ‘cc’ line. WHY? Look back at the names on the ‘to’ and ‘cc’ lines. For each name, ask yourself: Why is this person involved in the project? Why am I emailing them? Why do they need to know? Why does this information matter to them? Why does it matter to the broader organization? Then think about what you know about those individuals – their interests, needs, backgrounds and communication styles. Make sure the tone, style and content of your email matches up – just as you would choose appropriate words, tone and body language if
you want an email response, say that. If you need suggested dates for a meeting, names of possible project participants, a list of questions or key ideas to be considered, or any other specific input, describe it. Never assume that people will understand what you want – tell them as straightforwardly as possible.
Use the subject line to improve email response time Please, never let yourself hit the send button while the subject line of your email reads ‘RE:RE’ or ‘FWD:FWD,’ or some cryptic phrase that relates to a prior email message. Why? Because when you send an email like this, you’re sending a message into the world with an unclear purpose. Do not be part of creating the email pigsty we have come to expect and accept.
The subject line of your email message is your topic sentence. It clearly states the topic of the email. A clear subject line is essential if you want to communicate effectively and improve both the quality and response time on the email messages you send. Make sure the subject lines on your email messages reflect the current topic, purpose or desired outcome. When you respond to an email you’ve received, change the subject line to make it current and clear. Consider using some of the following standard email subject lines: Action required – DATE FYI – 3rd paragraph client X mention Update: TOPIC Reply by – DATE NRN – No response needed EOM – End of message The last subject line above, EOM, is an especially powerful one. Here’s how it works: when you have a short, simple message to convey, type the entire email in the subject line of the email, and put EOM at the end. (For example, “Tuesday marketing meeting moved to 2 p.m. EOM.”) Now your recipient doesn’t have to open the email message, saving them precious minutes. It’s time to take back control and clean up the pigsty that’s disguising itself as your inbox. Carson Tate serves as a consultant and coach to executives at Fortune 500 companies, including AbbVie, Deloitte, EY, FedEx and Wells Fargo. The author of Work Simply: Embracing the Power of Your Personal Productivity Style, her views have been included several publications, including Fast Company, Forbes, the Harvard Business Review blog, The New York Times and more. For more information, visit workingsimply.com.
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PEOPLE
CAREER PATH ESTABLISHED. PRESTIGIOUS. INDEPENDENT. The standard for excellence in the mortgage industry for over a decade!
COMING SOON: YOUR 2019 FINALISTS REVEALED You nominated in huge numbers for the 13th annual Canadian Mortgage Awards – and we’d like to thank each and every one of you for making your voice heard. We’re currently putting together the shortlist of the industry’s best and brightest. The massive reaction to our call for nominations is testament to a thriving Canadian mortgage industry.
SPECIAL THANKS TO OUR AWARD SPONSORS
Brought to you by
Stay tuned for the 2019 Finalists and awards gala reservation details on
www.canadianmortgageawards.com
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PEOPLE
CAREER PATH
COMMUNITY BUILDER From India to Canada (by way of London), Sharnjit Singh Gill has never passed up an opportunity to create a community
Hired by UCO Bank in Punjab, Gill’s initial visit to the branch to meet his new boss became, to his surprise, his first day on the job. His mother, who had accompanied Gill, gave him some key advice. “She said, ‘You haven’t come here to make friends or waste time; you have to work three times more than the others.’ I was promoted to branch manager after only a few years.”
1969
GETS HIS START IN BANKING
1995
COMES TO CANADA Gill’s next move brought him to Canada, where his international exposure caught the attention of BMO, which tasked him with promoting the bank among his fellow Indo-Canadians. During his five years as manager of financial services, he became the bank’s top producer. “They wanted me to promote BMO as the Indo-Canadian community’s own bank.”
2001
FINDS EARLY SUCCESS Joined by his son, Raj, Gill distinguished himself as a broker early on, becoming a top producer with Envision Financial in both 2002 and 2003. The early success led the father-and-son team to open their own brokerage. “We knew the business; we knew the work; we had a client base – we thought we could work for ourselves.”
2016
OPENS A SECOND OFFICE After getting constant traffic from Vancouver clients at his Surrey office, Gill took the suggestion of one client who advised him to open a second office in the city. Now Raj and his wife (herself an experienced banker) run the Vancouver branch, while Gill and his daughter work from the Surrey office. “Our office was doing very well, but the clients need convenience. And we have a proven track record of success: Our funding ratio is 91.5%, and 85% of our business comes from referrals.”
1988 WORKS IN LONDON
When the bank’s chairman visited Gill’s branch, he was impressed by the young branch manager and invited him to interview for a position in London. Chosen from a field of 70, Gill spent four years as the foreign exchange manager in the London office. “I saw the difference between working in London and working in Punjab – there was more opportunity overseas.”
2001
BECOMES A BROKER At the suggestion of an acquaintance who was a mortgage broker, Gill decided to give the job a try. Both the experience he’d garnered at the bank, along with the profile he had built as a community manager, gave him a solid foundation for success.
“He advised me to become a mortgage broker because I would have more opportunities to help the community. Since then, I have never looked back” 2005
JOINS VERICO Drawn by the volume, training and name-recognition benefits of a network, Gill moved his company under the Verico umbrella. The same year, his daughter, Mani, made the decision to join the flourishing brokerage. “Our motto is ‘a team of four, but the power of one.’”
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PEOPLE
OTHER LIFE
TELL US ABOUT YOUR OTHER LIFE Email mortgagebrokernews@kmimedia.ca
Stapley wakes up before dawn each day to exercise 12 horses at a local racetrack
5
Age at which Stapley appeared in his first horse show
37mph
Approximate pace of the weekly speed workout known as a ‘breeze’
18–20
Number of fences in a typical steeplechase course
SADDLE UP Mortgage agent Adam Stapley feels most at home on the back of a horse HAVING GROWN up on a farm, Adam Stapley sees nothing noteworthy about being placed in the saddle at the tender age of 2, but the Toronto-area mortgage agent does admit that his teenage passion for steeplechase was a bit unusual. His obsession ran so deep that Stapley crossed the border to spend several months
working with a trainer who specialized in steeplechasing before ultimately relocating down south for several years to further his training. Since then, Stapley’s passion for riding has taken him around the world, including stints in Australia, Hong Kong and England, where he spent two years based
in Newmarket, the birthplace of horse racing. Riding is still part of Stapley’s daily life, thanks to his part-time gig exercising horses at a local racetrack in the early morning hours. “Riding horses is what I love to do,” he says. “I love the speed and the ability to control so much power.”
P
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