CMP 12.11

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f o L L A

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E M A F CMP spotlights 10 of the Canadian mortgage industry’s most visionary leaders

BOOSTING ENGAGEMENT A plan for reaching employees who have checked out

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‘TIS THE SEASON FOR NEW REGULATIONS Industry players react to the latest move by the OSFI

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ISSUE 12.11

CONTENTS

f o L L A

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E M A F

SPECIAL REPORT

CMP presents 10 leaders whose unparallelled achievements, successful track records and tireless community service have made them standouts in the mortgage industry

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ISSUE 12.11

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

CONTENTS

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

UPFRONT 04 Editorial

More proof the government isn’t listening to brokers

06 Statistics

22

Mortgage holders are more trustworthy than increasing regulations might suggest

08 Head to head

FEATURES

44 36

FRESH OPTIONS FOR BROKERS

A new bank provides mortgages that cater to entrepreneurs, investors, urban professionals and more

Brokers forecast the impact of the latest B-20 changes

10 News analysis

Now that OSFI has made its changes official, industry players weigh in on the new reality

12 Commercial update

FEATURES

Canada’s commercial real estate segment is poised to close out 2017 on top

SUPERBROKERS

14 Alternative lending update

Canada’s leading broker networks reveal what they have to offer in regard to compensation, lead generation, compliance and more

PEOPLE

INDUSTRY ICON

18

Gord Dahlen’s storied career has encompassed some of the Canadian mortgage industry’s biggest names – and now he’s tackling a new challenge

PEOPLE

50

How one alternative lender has capitalized on the industry’s turbulent year

16 Opinion

Would-be brokers are woefully prepared for today’s market

BROKER INSIGHT Eitan Pinsky explains why leaving a big bank to run his own brokerage was the best decision he ever made

PEOPLE 54 Career path

Sabeena Bubber has built a thriving business by forging authentic connections

56 Other life

52

Finding Zen with yoga studio owner and mortgage broker Chris Dunphy

FEATURES

EMPLOYEE ENGAGEMENT

Five ways to tell if your staff is disengaged – and how to get them back on track before it’s too late

2

MORTGAGEBROKERNEWS.CA CHECK IT OUT ONLINE

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WE ARE A COMPANY ON AN ENDLESS PURSUIT OF GREATNESS. OUR MAIN GOAL IS TO HELP YOU THRIVE. WE ARE A BUSINESS BUILT ON SERVICE. WE PROVIDE YOU TOOLS THAT EMPOWER YOU TO BE YOUR BEST. YOU DON’T WORK FOR US — WE WORK FOR YOU.

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2/11/2017 8:56:44 AM

UPFRONT

EDITORIAL

A new stress test cometh

T

he Office of the Superintendent of Financial Institutions has gone ahead with a new stress test for all uninsured mortgages. The regulation will require uninsured buyers to qualify for a mortgage two percentage points higher than the contracted rate.

While many brokers have argued the policy is unnecessary and will hinder Canadians’ home-buying power, the move has earned a vocal opponent outside of the channel as well. The Fraser Institute, an independent think tank, published a study that highlighted the potential negative impact of a stress test for buyers who pony up at least a 20% down payment.

“This proposed stress test for financially sound homebuyers is unnecessary and will do more harm than good – Canadian homebuyers will pay the price,” said Neil Mohindra, a public policy consultant and author of the report.

Mohindra argued that the OSFI’s case for implementing the stress test is weak and unnecessary, given the existing supervisory framework.

“This proposed stress test for financially sound homebuyers is unnecessary and will do more harm than good – Canadian homebuyers will pay the price” Mohindra also posited that the policy will result in a number of negative effects. First, it could limit homebuyers’ access to mortgages, especially in higherpriced markets, forcing them away from their preferred homes and into less desirable ones. In addition, Mohindra expressed concern that homebuyers might be compelled to seek out private mortgages at higher interest rates or to choose shorter-term variable loans, which are more vulnerable to rate fluctuations than long-term fixed-rate mortgages.

Finally, the report outlined how Canada’s mortgage industry could become less competitive as a result of the new changes. “Some financial institutions that are niche players in the residential mortgage market (i.e. they focus on segments such as self-employed individuals) may find their ability to pursue their business strategies impaired,” Mohindra wrote. “This runs counter to the federal government’s objective of promoting more competition from smaller banks.”

Despite such vocal opposition, however, the regulator has proven yet again that once it sets its sights on implementing a new policy, it’s essentially a done deal – even in the face of outspoken opposition from industry players, homebuyers and independent researchers.

www.mortgagebrokernews.ca ISSUE 12.11 EDITORIAL Editor Justin da Rosa Writers Joe Rosengarten Libby Macdonald Ephraim Vecina Heather Turner Copy Editor Clare Alexander

CONTRIBUTORS Ken Lankin Karen Gately

ART & PRODUCTION Designer Loiza Caguiat Production Manager Alicia Chin Advertising Coordinator Ella Dayandante

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

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

EDITORIAL INQUIRIES

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

2/11/2017 8:59:06 AM

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UPFRONT

STATISTICS

Safe as houses

25% CONSUMERS WITH FAIR OR POOR CREDIT SCORES

10.8%

13.3%

Proportion of new mortgage holders with credit scores below 660 in the third quarter of 2016

Proportion of new mortgage holders with credit scores below 660 during the same period in 2012

proportions of mortgages that went unpaid for 90 days or more.

Not only are mortgage holders as a group more likely to be the proud possessors of strong credit, but their average credit score has only been climbing higher over the past several years – according to CMHC, more than 80% of Canadian mortgage holders have either very good or excellent credit scores.

9.6 million

Number of Canadian homeowners in 2015, up from 8.7 million in 2006

15.6%

10%

$271,895

Average value of a new mortgage loan in Canada in 2016

9.7%

BROKERS GRAPPLING with more straitened qualifying demands might find comfort in this fact: While the average monthly bill for new mortgage holders has grown over the last several years, the already-low number of mortgages sliding into delinquency has diminished during the same timeframe.

Indeed, despite spiralling prices in Ontario and BC, those two provinces had the lowest

15% 12.9%

Ongoing regulations might make it seem as though mortgage holders are irresponsible, but the data paints a different picture

14.0%

20%

5%

0%

British Columbia

Alberta

Source: CMHC, Canadian Housing Observer, Sept. 2017

A GOOD RISK

MONTHLY PAYMENTS ARE ON THE RISE ‌

Consumers with a mortgage are more likely to have high credit scores than those without; 90% of mortgage holders have at least good credit.

As house prices have steadily increased across the country, so have monthly payments. From mid-2012 to the end of last year, the nationwide average for monthly payments on new mortgages has risen by $128.

Poor

Good

Fair

Very good

4.6% 5.7% 9.1% Credit score of consumers with 18.7% a mortgage 62.0%

Excellent

$1,300 8.7%

$1,250

8.0% Credit score of consumers without a 15.2% mortgage

$1,200

6.4%

61.6% Source: CMHC, Canadian Housing Observer, Sept. 2017

6

AVERAGE MONTHLY PAYMENT ON NEW MORTGAGE LOANS $1,350

$1,150 $1,100

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 Source: CMHC, Canadian Housing Observer, Sept. 2017

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16.6%

17.6%

7.9%

10.1%

11.2%

13.8%

13.2%

14.4%

13.9%

16.2%

16.9%

Q4 2016

19.6%

19.7%

19.4%

Q3 2012

21.4%

The share of new mortgage holders with credit scores below 660 has decreased in almost every province and metropolitan area monitored by CMHC since 2012.

Every province saw its delinquency rate decline by at least 1%, while Moncton, New Brunswick, was the only city to post an increase (of a mere half-percent) in homeowners with fair or poor credit scores.

23.4%

A PICTURE OF STABILITY

Saskatchewan

Manitoba

Ontario

Quebec

New Brunswick

Nova Scotia

Prince Edward Newfoundland Island Source: CMHC, Canadian Housing Observer, Sept. 2017

… AND DELINQUENCIES ARE FALLING

LOWEST AND HOTTEST

The mortgage delinquency rate across Canada has been, for the most part, remarkably steady. Between mid2012 and the end of 2016, delinquencies have even dropped slightly by .04%.

The nation’s most active markets were also the ones with the lowest level of delinquencies in 2016.

NATIONAL MORTGAGE DELINQUENCY RATE 0.40%

MORTGAGE DELINQUENCY RATE, Q4 2016

0.35%

0.30%

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 Source: CMHC, Canadian Housing Observer, Sept. 2017

British Columbia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick Nova Scotia Prince Edward Island Newfoundland

0.25% 0.53% 0.62% 0.35% 0.19% 0.40% 0.79% 0.75% 0.60% 0.46% Source: CMHC, Canadian Housing Observer, Sept. 2017

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UPFRONT

HEAD TO HEAD

Will the B-20 changes drive clients to private lenders?

The OSFI’s new guidelines will expand stress testing to uninsured buyers. What impact can the market expect?

Chad Robinson Mortgage broker Best Interest

“One really must wonder at the moti­ vation behind these mortgage rule changes. The powers that be tell us it is for our own good. Well, the sad truth is, it is already costing the average customer much more in carrying costs. Has credit usage dropped? No. The latest round of B-20 changes is impinging on the alternative space even more. We’ve already seen a huge jump in demand for private funds. Deals that would have been placed with an alternative lender a few months ago are now private. The rules are hurting the most vulnerable, the most in need.”

Anthony Spadafora Mortgage broker Mountainview Mortgage

“Yes, these changes will drive clients to seek more private mortgage options, as fewer lenders will be able to lend to them. It is going to more difficult for self-employed clients and people receiving income from overseas to get a mortgage.

Also impacted will be retired seniors who might want to access equity in their home, but do not qualify. Self-employed contractors would also be hard-hit by the new B-20 rules.

Essentially, lenders are being made to be agents of the CRA.”

Frances Hinojosa

Mortgage broker, managing partner Tribe Financial Group “With any change comes opportunity.

There are already many mortgage products available outside the private space that can provide a cost-effective solution to clients. Many lenders are already exploring new mortgage products in anticipation of the upcoming B-20 changes so they can continue to provide cost-effective financing options to clients.

For brokers, staying current with lenders’ product offerings and educating clients are more important than ever.

Knowing what solutions are available and being creative with financing will prevent an outflow to the private space.”

FEELING THE STRESS When the Office of the Superintendent of Financial Institutions proposed changes to its residential mortgage lending guidelines in July, it cited the spectre of unmanageable household debt against a backdrop of overheated markets. The changes will put even those homebuyers who meet the 20% down payment threshold in the position of having to prove they can maintain their monthly payments should interest rates go up. “We clearly see the potential risks caused by high household indebtedness across Canada, and by high real estate prices in some markets,” OSFI head Jeremy Rudin said in a speech at the Economic Club of Canada in October. “We are not waiting to see those risks crystallize in rising arrears and defaults before we act.”

8 www.mortgagebrokernews.ca

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2017-07-05 10:20 2/11/2017 7:45:22 AMAM

UPFRONT

NEWS ANALYSIS

Another round of changes While not unexpected, OSFI’s decision to require a stress test for uninsured mortgages has left the industry reeling once again CANADIAN HOMEBUYERS – and their mortgage brokers – are undoubtedly beginning to feel a lot like Sisyphus, the mythical Greek king doomed to forever push a boulder up a steep hill, only to have it roll down again when he’s nearly reached the top. Each time buyers scrape closer to qualifying for a home, the government introduces a new impediment that forces them to start all over again – pushing them farther away from the homeownership dream.

In October, the Office of the Superintendent of Financial Institutions [OSFI] made official its update to Guideline B-20, which includes a new stipulation that will require a stress test for uninsured mortgages.

Under the new guideline, the minimum qualifying rate for uninsured mortgages must be the greater of either the Bank of Canada’s fiveyear benchmark rate or the contractual mortgage rate plus 2%.

has very little to do with prudence. “In the last six months, Ontario’s real estate market has borne the brunt of government intervention after intervention,” says Tim Hudak, CEO of the Ontario Real Estate Association. “From a new stress test to an increase in land-transfer taxes, rising interest rates and Ontario’s Fair Housing Plan, governments at all levels are piling on new regulation and taxes to try and cool the market. While Realtors support a sensibly regulated real estate market, OSFI’s new stress test for uninsured mortgages is overkill. These changes will hurt middle-class families and punish careful savers the most, forcing them to take on more debt and higher interest payments.”

This latest announcement follows new regulations introduced last fall, which required insured mortgage holders to qualify at the Bank of Canada posted rate – a stress test meant to ensure buyers can handle an

“These changes will hurt middle-class families and punish careful savers the most, forcing them to take on more debt” Tim Hudak, Ontario Real Estate Association “These revisions to Guideline B-20 reinforce a strong and prudent regulatory regime for residential mortgage underwriting in Canada,” OSFI superintendent Jeremy Rudin said.

However, industry players argue the move

10

increase in mortgage rates. However, that rule change was questioned at the time as well, as it forced homebuyers to flock to the big banks for their mortgages.

“The bottom line is, the government is solving a problem that really doesn’t exist,” Dr.

Sherry Cooper, chief economist with Dominion Lending Centres, said at the DLC National Sales Conference in Palm Springs in September. “I got a call from the Department of Finance with a lot of specific questions [about the October 2016 rule changes]. The economists there that were working on these specific rule changes didn’t understand really what the implications would be and didn’t understand how it would be so negative for the non-bank alternative lenders, or even for the non-Big Five Canadian bank lenders, period.”

Some insiders do see one positive in this latest announcement: It will re-level the playing field between the big banks and mortgage channel lenders.

“We have some concerns that the stress test will push some borrowers to nonfederally regulated lenders, which will shift

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BROKERS’ REACTION MortgageBrokerNews.ca asked readers how they felt about the OSFI’s newest regulations. Here’s what they said.

IS THE OSFI OVERREACHING WITH ITS LATEST POLICY?

Yes

No

54%

42%

4%

Undecided

risk outside of the regulated space,” Neil Parmenter, CEO of the Canadian Bankers Association, told the Financial Post after OSFI’s latest announcement.

people who are going to want to go into the qualifying process ahead of that. I expect we’ll see a great deal of activity between now and December 31, and then after that, I think the

“I think the major markets can ... withstand this kind of policy. Other marketplaces, not so much” Dianne Usher, Johnston and Daniel But what about homebuyers – what impact will it have for them? “In the short-term, what I think it’s going to do is spur on the market,” says real estate agent Dianne Usher, senior vice-president of Johnston and Daniel. “The measures take effect January 1, so there are

major markets can absorb these changes. They can withstand this kind of policy. Other marketplaces, not so much.

“I also feel that it’s not going to have a particular impact on first-time homebuyers,” Usher continues. “Most of them have less

than 20% to put down, so they’d already be subject to the stress test. It will impact move-up buyers – the typical move-up buyer moving up from a condo to a townhouse or a townhouse to a detached or semi-detached.

They won’t be able to qualify for as much home as they previously could.”

While Usher admits she wasn’t surprised by the latest rule change, she also questions policymakers’ knowledge of the housing market and just how much macroprudential policy might affect it.

“In my view, our policymakers – regardless of whether it’s municipal, federal or provincial – are paying a lot of attention to real estate these days,” Usher says. “[The policy is based on] their interpretation of the marketplace, and they are just soldiering on. I’m very concerned.”

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UPFRONT

COMMERCIAL UPDATE NEWS BRIEFS First National reaches $100 billion milestone

As of mid-October, First National Financial now has $100 billion in commercial and residential mortgages under administration; commercial mortgages represent around 23% of that total. “Achieving this milestone reinforces First National’s position as Canada’s largest non-bank mortgage lender and Canada’s largest CMHC multi-residential lender,” said First National chairman and CEO Stephen Smith. “We are proud of the role our company has played in helping hundreds of thousands of Canadians to achieve their real estate ownership goals for almost 30 years.”

Hotels dominate national commercial market

The hotel segment is outstripping the performance of other commercial asset classes across Canada; as of June, the sector has seen 11.3% year-to-date growth in revenue nationwide, according to a recently released report from Cushman & Wakefield. Room revenues in Vancouver, Montreal and Toronto have seen increases of 7.2%, 11.4% and 11.8%, respectively. “We’ve seen a significant pickup in room demand and in the average rates … based on the strength of the Canadian economy in general, and also the strength of tourism,” said Cushman & Wakefield’s Brian Flood.

New Westminster a booming commercial destination

The recent influx of tenants and investors into commercial properties in New Westminster, BC, might be a good indicator of the city’s prospects as a strong contributor to the national market. In the first half of 2017 alone, total commercial building permits in

the city amounted to $6 million, and more commercial construction is incoming, according to Blair Fryer, the city’s communications and economic development manager. “Much of the commercial under construction is ground-level shopping at the bottom of mixed-use towers, which are dominated by the residential component,” she said.

BC commercial sector declines in second half of 2017

In a report released in late September, Avison Young noted that while British Columbia’s commercial real estate segment has enjoyed robust performance over the past few years, the most recent figures indicated that the market’s peak might have already passed. The firm blamed the decrease on a number of factors, including interest-rate increases, rising bond yields and new government regulations.

“Unprecedented levels of investment in the first half of 2017 ... will likely mark the culmination of the latest and most robust cycle of capital expenditures on BC commercial real estate yet recorded in the province,” the report said.

Edmonton office vacancies decline for first time in five years

A mid-October report from commercial real estate firm CBRE revealed that Edmonton’s office vacancy rates fell for the first time in half a decade, down to 19.7% in summer 2017 from 19.9% the previous quarter. However, while the region is expected to enjoy the secondfastest economic growth in Canada this year, CBRE cautioned that this might not last. “Though economic conditions continue to improve, in August the Alberta government announced its intent to adjust future spending plans, as revenues in the first quarter were less than what was forecasted in the 2017/2018 budget,” the report said.

A landmark year for the commercial segment With sales up nearly 30% since 2016, this year is shaping up to be a winner for commercial real estate A robust economy and strong industry fundamentals continue to propel investment activity in the Canadian commercial property sector, which is on pace to record a banner year for 2017, according to global real estate firm Avison Young.

“With record amounts of capital still seeking a home, investors continue to find ways to buy into Canada’s finite investable commercial real estate sector,” the firm said in its Fall 2017 Commercial Real Estate Investment Review. “Investment activity is buoyed by a relatively healthy economy that is the envy of the G7 countries and a commercial property market that continues to see varying, but largely healthy, fundamentals across the country’s regions and asset classes.”

Almost all of Canada’s urban centres have posted strong gains so far in 2017. “Following a record $28.4 billion in commercial real estate investment sales in 2016,” the report said, “Canada’s six major markets recorded first-half 2017 sales of almost $19 billion – up $4.3 billion, or 29%, from the first half of 2016.”

In particular, Avison Young pointed to Vancouver and Toronto, predicting that they will remain major hubs of commercial real estate activity. “Vancouver outpaced Toronto, with investment proceeds surging 75% yearover-year as vendors sought to capitalize on strong demand and peak pricing,” the report noted. “With the exception of Ottawa (which saw investment activity plunge 57%), the

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remaining markets – Calgary, Edmonton and Montreal – all recorded increases year-overyear, and each exceeded the $1 billion mark.”

The most popular asset classes nationwide proved to be office and retail, “which combined for more than $10 billion in trades, or 55% of the first-half investment tally,” the report said.

“Toronto and Vancouver made up almost three-quarters of the national office total as investors poured nearly $2 billion into each market, mirroring the results registered one year earlier. Disrupted by e-commerce, the retail sector was a close second with

“Investors continue to find ways to buy into Canada’s finite investable commercial real estate sector” $5.1 billion in transactions (27% share) as first-half investment more than doubled yearover-year.” Vancouver, which had a total of $3.1 billion in retail investment, was the largest contributor to this asset class.

In a report released earlier this year, North American property management company Morguard Corporation provided a similar outlook, predicting that Canada’s commercial market will continue to exhibit reliability, especially in terms of investment. Morguard forecast that the office sector will be a particular standout, thanks to its strong performance as of the second quarter of 2017.

Q&A

Wasah Malik Founder/CEO

The next powerhouse

ALDRIDGE WEALTH MANAGEMENT

What is the current situation in Mississauga?

Years in the industry 7 Fast fact Malik founded Aldridge Wealth Management, a private lender and real estate investment firm, shortly after graduating university

Mississauga’s commercial market is thriving. Numerous businesses are operating their head offices in Mississauga. I believe that at the current moment, there is a sufficient amount of capital in the market to service the commercial demand. A majority of the A, B and C lenders over the past couple of months have been concerned about the constant changes in the residential market. However, the commercial market seems to be comparatively stable.

What factors do you think draw people to Mississauga’s commercial properties?

Mississauga is one of the fastest-growing cities in North America.

The growth of a diverse community creates a need for all sorts of businesses to operate in Mississauga. As the residential market continues to grow and flourish, I see Mississauga’s commercial market growing, too.

What are the most difficult commercial financing challenges your clients struggle with?

The valuations of properties are incorrect at times. I don’t mind lending on the higher appraised value, although I always consider how much the borrower is putting down. I certainly don’t lend based on the higher appraised value if the borrower has no skin in the game.

Another challenge is that borrowers prematurely assume that commercial properties can be purchased with 10% to 15% down, similar to the residential market. The general rule of thumb is to put down at least 35%. There are times when banks and lenders, including myself, allow exceptions for a down payment lower than 35%, but those scenarios require the property to be in immaculate condition, with decent credit, superb verifiable income and the borrower’s high net worth.

I am cautious on lending on development land. It is becoming an ongoing concern where borrowers purchase land to develop large communities while having no development experience or sufficient funds to cover the down payment portion of the construction. If the down payment also needs to be fundraised, I probably would not lend on that deal.

Considering these market realities, what advice do you typically give to clients?

If anyone is looking for commercial financing, hire a mortgage professional who has a strong grasp of the commercial industry. Also, if a mortgage professional is not well versed in commercial financing, it is better to share the deal with another broker who is. It is more lucrative to share commissions with another broker rather than lose the deal completely. I would also suggest borrowers have at least a 35% down payment prior to beginning the financing process. It’s better to have that sum ready and request the lender accept a lower down payment. If the lender chooses to not accept the request, at least the borrower can still purchase by putting down 35%.

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UPFRONT

ALTERNATIVE LENDING UPDATE

Alternative lender benefits from changes Last year’s mortgage rule changes led to a massive origination spike for one small lender

After Ontario’s securities regulator revealed new information about an investigation into falsified loan applications, Home Trust’s stock price sank and customers pulled their deposits, sparking a liquidity crisis that sent Home Trust’s market share plunging by more than 3%. As a result, alternative deals that could have been sent to Home Trust made their way to Optimum instead.

Shore says the additional deals were a welcome challenge and that Optimum has

“There’s no question we picked up some business due to a market disruption in the spring”

While much of the industry has been negatively impacted by last year’s mortgage rule changes, one alternative lender has benefited.

Optimum Mortgage, the mortgage arm of Canadian Western Bank, saw its market share grow to 1.3% in the second quarter of 2017, based on data from Finastra’s Lender Insights report. That puts it in the top 10 for market share among broker channel lenders for the first time.

NEWS BRIEFS

Optimum VP Lester Shore attributes the growth to two main factors, the first of which was the trouble that plagued Home Capital Group. “There was a fairly significant market disruption in the second quarter [that] resulted in a very large competitor of ours [having trouble funding new mortgages],” Shore says. “There’s no question we picked up some business due to a market disruption in the spring.”

Home Capital completes cost-cutting

In October, Home Capital Group completed a cost-cutting initiative that will achieve an estimated $15 million in future annual savings. The initiative, introduced in February, involved changes to the company’s workforce and process flows.

“We have taken important steps to ensure we achieve a more efficient cost structure, and we are now firmly focused on crafting and executing a strategy for Home Capital that will drive our growth as one of Canada’s leading alternative mortgage providers,” said president and CEO Yousry Bissada.

increased its capacity to service even more deals in the future.

The other factor that allowed Optimum to grow in recent months is its status as a balance-sheet lender, which allowed it to avoid the impact of the rule change targeting lenders that bulk-insure their portfolios.

The Finastra report confirms what most suspected: that monoline lenders were harderhit by last year’s mortgage rule changes than balance-sheet lenders were.

Likewise, banks appeared to benefit from last year’s regulations – particularly Scotiabank, which saw its market share increase by more than 10% to 26.7%. Meanwhile, TD Bank’s share increased to 8.6%, and B2B Bank’s went up to 3.7%.

OSFI changes could spark higher volume for alt lenders

While new OSFI underwriting rules have been a source of acrimony in the lending community, they will likely boost business for alternative lenders. However, with augmented business comes a new set of challenges, according to Fisgard Capital Corporation’s Hali Strandlund-Noble. “We’re getting way more inquiries, and [the new rules] haven’t taken place yet,” StrandlundNoble said. “For us, it’s huge volumes, exponential growth, but at the same time, we struggle with capital management. We only have so much money available.”

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Q&A

Alfonso Casciato Senior vice-president of sales STREET CAPITAL BANK OF CANADA

Years in the industry 14 Fast fact Casciato’s first job in the mortgage broker industry was as VP of credit for FirstLine Mortgages

A robust player in the alternative sphere What has Street Capital been up to over the past few months, especially in terms of your alternative products?

The Street Solutions program, which addresses the needs of customers in the uninsured segment of the mortgage market, was launched in May 2017 through a small group of mortgage brokers. We are pleased to report that the introduction of the program has been highly successful. It is evident that there is a strong demand in the Canadian market for alternative mortgage solutions. We are planning a broader roll-out of the program in early 2018.

How have Street Capital’s alternative offerings affected its relationship with brokers?

Street Capital’s alternative offerings have strengthened existing relationships with our broker partners and have also presented an opportunity to develop new partnerships with brokers looking to expand their horizons. Using a lender that can service clients with a broader spectrum of mortgage solutions ensures that a broker’s business requirements are consistently met.

How do your products help borrowers?

The Street Solutions program assists Canadians with unique financial circumstances by applying a common-sense approach to underwriting practices.

The program helps Canadians who may face challenges qualifying under traditional lending guidelines qualify for an alternative mortgage solution.

Home Capital to exit prepaid cards and payment processing

Home Capital has finalized an agreement with an unnamed third party to sell its payment processing and prepaid card businesses. The transaction is expected to close in late 2017. Home Capital is projecting approximately $20 million in savings on annual salary and other operating costs, along with a corresponding reduction in fees and other income of around $18 million.

“This sale reflects our commitment to focus on our core lending and deposits business to drive future long-term growth,” said Home Capital president and CEO Yousry Bissada.

The product lineup is aimed at providing solutions for new Canadians with limited Canadian credit history; self-employed Canadians requiring a commonsense approach to income qualification; borrowers in need of accommodating mortgage solutions due to past credit impairment, debt serviceability/extended ratios, and/or larger loan amounts; and individuals seeking rental and investment properties.

What are the most significant challenges these groups struggle with?

The most significant challenge these clients face is qualifying for a mortgage under traditional lending guidelines. Additionally, it is important for these clients to obtain a mortgage with a lender that can facilitate an array of product offerings, as it provides them with an opportunity to graduate into the prime space.

In your view, what does the future hold for Street Capital?

This has been a year of change for the mortgage industry as a whole and specifically for Street Capital.

On February 1, Street Capital officially commenced operations as a Schedule I Bank, which has strategically positioned the company for sustainable growth. More recently, we welcomed our new president and CEO, Duncan Hannay.

We are continuing to innovate and engage with our stakeholders in various unique ways, always striving to provide Canadians with more financial options than ever before.

Credit unions could offer payday loan alternative

Credit unions have been chomping at the bit to offer alternatives to Ontario’s payday loan stores, but the current regulatory regime is hindering their ability to exhibit new products, according to Brian Dijkema, program director at public-policy think tank Cardus. However, that could soon change. “[The government’s] recent proposal to exempt these community banks from all payday loan regulations allows credit unions to experiment with cost structures, interest rates, loan terms and other factors that the rules otherwise prevented,” Dijkema said.

New stress test bad news for non-prime lenders

While the OSFI’s new mortgage rules are expected to have a minor effect on large Canadian banks, RBC Capital Markets analysts Darko Mihelic and Geoffrey Kwan warned that the changes will be more pronounced for non-prime lenders such as Home Trust and Equitable Bank due to the stress tests and ban on mortgage-bundling. “This is likely to lead a significant number of non-prime borrowers to either defer purchasing a home or seek out a mortgage from lenders such as credit unions,” the analysts said.

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UPFRONT

OPINION

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

A failing grade

gage request. Only one of the five got the answer right.

I asked each to define Canada’s benchmark rate. Again, only one of the five answered correctly.

Interviews with aspiring new mortgage agents reveal a standard of industry education that leaves much to be desired, writes Ken Lankin OVER THE course of the past two weeks, I have interviewed five non-solicited mortgage agent candidates, all of whom were graduates of a well known course. Although I’m not looking for any additional agents at this time, it’s always nice to know who is interested in the business, who could become a superior agent and who can represent our industry in a professional manner. More than that, I look to see if these applicants have the intention of pursing this profession part-time or to simply supplement their income from an existing full-time job.

I am largely opposed to part-time mortgage agents. The only exception would be for those who have relevant industry experience under their belts already – those who have brokered full-time in the past or are retired bank professionals with a breadth of knowledge as a consequence of their past endeavours. These two types are examples of parttime brokers who can be a good fit for an existing business.

However, to those who are already employed in a full-time role in another industry, I can only say: “What are you thinking?” This is not like working at McDonald’s or in retail, where you are simply taking orders and bagging a product. How can any part-time employee field a mortgage call professionally when they are ringing in an underwear sale at The Bay? The answer is simple – they can’t!

This industry is life-changing. Should you face the nightmare scenario of making the wrong decision for a client who has relied on

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your putative expertise and the situation goes south, you will go south with it.

I was also shocked by what I found when I asked these potential agent candidates the following simple questions: At what level is a mortgage called ‘conventional’ versus ‘insured’? Four

So, my five simple questions were met with few correct answers. I asked these questions for one reason: to see what was actually discussed and covered during the MB 101 course. While the fiduciary and judiciary items are very important, does anyone believe that a part-timer who is just trying to make extra money will prioritize protecting clients?

As for the $300 calculator required for the course, we all know these calculators are available online through gazillion different sites, so the putative purpose of teaching someone to calculate a balance or a per diem rate or LTV ratios is clearly superfluous, and the calculator itself is both useless and a waste of money.

As seasoned veterans, we take much for granted when it comes to such matters as

“My five simple questions were met with few correct answers. It is obvious what is being taught has zero to do with what actually goes on in the marketplace” out of five said all, and one said “I don’t know.”

If you put 5% down on a home as a first-time buyer, what percentage must you add to the mortgage for insurance premiums? Two said “I don’t know,” two said 3%, and the other is still thinking.

What credit score is deemed acceptable for a high-ratio mortgage? One said 640, one said 680, three said they had no idea, and the other asked what I meant by a credit/ Beacon score.

Can you create a residential mortgage on a ‘C’ property? Three out of five asked what ‘C’ was, and four out of five said, “I guess?” I then asked what the difference was between an alternative and subprime mort-

quick calculations, the approximate funds required to close a transaction and so on. It is obvious what is being taught has zero to do with what actually goes on in the marketplace.

I believe any organization that is deemed to be a mortgage educator needs to remove its at-home or online correspondence course.

Those who wish to be in the business should make the drive and put in the time to do it right. If these habits continue, the mortgage profession will become sloppy, unmeasured and tainted.

Ken Lankin is a leading mortgage agent in the Niagara Region. Currently at Mortgage Centre Niagara, he was previously with Mortgage Intelligence Niagara for almost two decades.

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7/27/2017 2/11/2017 2:11:59 9:08:25 PM AM

PEOPLE

INDUSTRY ICON

THE BUSINESS BUILDER Nearly 30 years into an already successful career, Gord Dahlen is still embracing new challenges LIKE MANY of his peers, Gord Dahlen, partner and VP of brokerage development at BlueTree Mortgages West, describes his entry into the mortgage industry as a fluke. “I didn’t grow up thinking I’d be a mortgage broker or executive,” Dahlen says. “My first experience was in 1987 with Household Trust. We were a retail bank branch, but we had some exposure to mortgage brokers, and probably the first mortgage broker I ever worked with sent deals to me.”

While that was his introduction to the mortgage world, Dahlen says the true start of his industry career didn’t come until two years later, when he took a job with Mutual Life of Canada’s mortgage division, the predecessor to MCAP. “Because I had some retail lending exposure, that gave me the opportunity to join Mutual/ MCAP, and it took off from there,” he says.

After 11 years there, during which he rose to the position of VP of Western Canada, Dahlen was recruited to join Invis, which at the time was a startup. He was the first non-founder VP Invis hired in Canada; during his 10 years there, he held a number of leadership roles, including serving as president in 2009. After Invis, Dahlen moved on to DLC before helping launch CFF Bank and serving a brief stint at Merix.

Finally, Dahlen decided it was time to focus on the part of the business he had developed a passion for, signing on to help build BlueTree Mortgages West in Kelowna, BC.

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“I’d say my real first love was building the teams,” he says. “Whether I built the team at MCAP or I built the team at Invis, that was really what I loved to do. We built Invis from a couple million dollars to $10 billion. A lot of that was under my leadership, and that’s what I love to do. Now I’m back doing what I love to do again.

BlueTree Mortgages West is a labour of love – we’ve gone from 20 brokers to 65 in under 90 days, so it’s fun.”

solid leadership and good value to the lenders.

I have a unique perspective in that I’ve sat on both sides roughly the same amount of time, so I know what it takes. I understand very well what we need to deliver as mortgage brokers to our lender partners, and efficiency is a big part of it.”

On that point, Dahlen says lenders are looking for both efficiency and scale when partnering with brokers. “They need to attract their volume

“I think technology is going to play a big role [in the industry], but I’m more convinced than ever that the way we communicate so rapidly now, it requires a human connection” Coming around again The industry experienced a great deal of consolidation in its early days, and Dahlen sees that trend starting to gather momentum again.

“Invis, Mortgage Intelligence – those companies were prevalent in terms of consolidating the mortgage industry 17 years ago,” he says. “And I think you’re seeing more consolidation within the large networks now as well.

I think consolidation is a positive as long as we’re responsible for our groups and we ensure that everybody is properly trained and we provide

in as an efficient manner as possible,” he says, “and that’s why consolidation is going to continue to take place.”

Along with consolidation, Dahlen sees technology as a key factor that’s currently pushing the industry forward.

“I think there’s more synergy at the grassroots level, and owners are taking more responsibility to use technology and get communication out to staff as fast as we can because we’re dealing in such a topsy-turvy marketplace,” he says. “In 28 years, I’ve never seen information change as

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PROFILE Name: Gord Dahlen Title: Partner and VP of brokerage development Company: BlueTree Mortgages West Based in: Kelowna, BC Years in the industry: 28 Career highlight: “Going to the Hall of Fame in November 2012. There were a lot of great moments along the way, but just to be recognized by my peers for the work that I put in meant a lot.�

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PEOPLE

INDUSTRY ICON

quickly as it does now. We leaders have to get information out more quickly, and I think that’s not going to change. I think technology is going to play a big role, but I’m more convinced than ever that the way we communicate so rapidly now, it requires a human connection, and I think brokers are in good shape going forward.”

Challenges ahead While there are plenty of concerns occupying mortgage brokers’ minds these days, Dahlen points to external factors seeking to replace mortgage brokers as one of the biggest challenges

that the current crop of brokers plows right through,” he says. “The best of the best always find a way to deal. There’s no question that this is the highest degree of market intervention we’ve had from the government, in my experience, [but] that top echelon of brokers does not roll over. In fact, they grow. Whenever there’s another issue put in front of them, they tend to grow as a result and eliminate the folks who don’t do the work.”

Meeting today’s challenges will require the industry to self-regulate in terms of ensuring a high level of professionalism, Dahlen says.

“The best of the best always find a way to deal. That top echelon of brokers does not roll over. In fact, they grow. Whenever there’s another issue put in front of them, they tend to grow as a result” the industry is facing – specifically, the fear that the banks will decide to drop out of the channel.

“We’re down to two major banks now involved in the front end of the industry,” he says. “We need to make sure we’re not replaced by technology and we’re not replaced by bricks and mortar or robo-advisors. We need to remain in the equation, and we need to be better at what we do.”

However, Dahlen acknowledges that this particular challenge isn’t unfamiliar to brokers.

“We’ve always had that threat,” he says. “It’s a dollars-and-cents industry, just like every other, and we can’t assume that this is going to go on forever. Again, it comes back to consolidation and professionalism and doing the right thing.”

Dahlen also points to the obstacle of today’s regulatory environment, which he says is more oppressive than ever. However, he’s confident the industry’s leaders will continue to thrive.

“One thing I’ve seen in the last 30 years is

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“We have to make sure folks are working full-time, that they’re not just being trained at the minimum level of regulation across the provinces,” he says. “We need to make sure, at the ownership level, that our people are going out fully trained and equipped.”

Continuing to educate themselves, Dahlen adds, will allow brokers to offer better advice to their clients.

“Information-gathering is not about memorizing anymore; it’s about having access to it and being able to use that information and decipher that information for your clients,” he says. “That’s our job, and if we don’t do that – if we just load people up with business cards because they can get through the course in 30 days – that will be the undoing of us. I’m very bullish on our future as long as we have those folks who are willing to learn and be trained and be responsible for each other.”

GORD DAHLEN’S CAREER TIMELINE

1989 1990

Starts in the mortgage industry at Mutual Life of Canada (which becomes MCAP), eventually rising to VP of Western Canada

2000 Moves to the thenbrand-new Invis, eventually becoming president and CEO 2000

2011 Serves as executive vice-president of Dominion Lending Centres

2013 Jumps to CFF Bank as VP of retail banking 2010

2016 Serves briefly as SVP of broker services at Merix

2017 Becomes partner and VP of brokerage development at BlueTree Mortgages West

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2/11/2017 9:13:44 AM

INTRODUCING THE NEW

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2/11/2017 9:13:48 AM

SPECIAL PROMOTIONAL FEATURE

LENDING

Fresh options for brokers A new bank, WealthONE Bank of Canada, is giving brokers and their clients some much-needed choice

AS A balance sheet lender, WealthONE Bank of Canada is providing borrowers with products that cater to their specific lending needs. Founded by Canadian entrepreneurs, WealthONE has launched with four flagship residential mortgage programs: Entrepreneur, Urbanite, Refinancing and Rentals.

mortgage application is assessed holistically by a human expert rather than scored by a software algorithm.

Urbanite The Urbanite program was created to support the rapidly increasing numbers of Canadians who are migrating to large urban centres. Borrowers in these locations require

Refinancing In what is an increasingly competitive and complex industry, WealthONE is helping brokers increase their value proposition by enabling them to offer unique mortgage solutions. For example, buyers looking to refinance their homes without paying a premium might be interested in WealthONE’s Refinancing program. “The

Entrepreneur The Entrepreneur program is designed for small businesses that have been in operation for more than two years. It enables borrowers to hold a mortgage in their holding company while also giving them the option to apply a portion of their business income to supplement personal earnings.

“With the number of self-employed workers on the rise, combined with this group traditionally having a harder time being awarded a mortgage, WealthONE decided to carve out a niche,” says the bank’s chief marketing officer, Leanna Falkiner. “We respect the challenges entrepreneurs face and embrace a holistic approach to analyzing an individual and their earning ability.”

The lending application process tends to be more complicated for entrepreneurs, who don’t fit neatly into a box. As a result, brokers working on these files require more from the lender to deliver the best possible results to their clients. At WealthONE, each

22

“We dedicate an underwriter to each file, so a lot of the churn that brokers experience is avoided. Brokers appreciate that each mortgage application is individually reviewed on its own merits” Leanna Falkiner, WealthONE Bank of Canada flexibility because, more often than not, they are either purchasing a property with small square footage or a high price tag.

The Urbanite program accepts studio condos with a minimum square footage of 375 feet and does not apply a premium price for mortgages over $1 million. WealthONE’s loan-to-value is 80% on the first million and 50% on everything above that.

advantage of this program is that our refinancing rates are matched with our purchase rates – no premium applied,” Falkiner says.

Rentals The rental space is growing increasingly convoluted, and each application requires an in-depth analysis. As part of its Rentals program, WealthONE finds ways to create

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eligibility for buyers who are looking to purchase a single or multiple-unit property.

“Other lenders may cap the number of rentals at three or four, but we have chosen not to place a limit on the number of rental units,” Falkiner says, which makes this program particularly attractive to buyers looking to tear down a home and build multiple units.

Personal solutions In delivering services through its online platform, WealthONE is able to mitigate the large overhead costs associated with bricksand-mortar branches. However, the bank’s leadership is aware of the importance of the human touch and has created sales teams in Ontario and British Columbia who will meet

borrowers at a place that is convenient to them, whether that’s their business office or their local Starbucks. In the age of the digital revolution, demand for the personal touch is very much alive.

In addition, Falkiner says, “we dedicate an underwriter to each file, so a lot of the churn that brokers experience is avoided. We don’t claim to be a rate leader, but all of our rates are competitive. Brokers appreciate that each mortgage application is individually reviewed on its own merits, and the application of our common-sense lending policies means that borrowers who may not have been accepted by the big banks would qualify.”

In addition to its four residential mortgage programs, WealthONE has also introduced a

unique option to the marketplace that allows any Canadian borrower who has verifiable income, investments and real estate in China or Hong Kong to apply those holdings toward their lending application. Although validating foreign assets is a complex and often time-consuming task, WealthONE is proud to support Canadian citizens in their efforts to become homeowners.

“In our increasingly global economy, we recognize that Canadians have assets offshore, and this program facilitates the leveraging of these assets to provide a client’s full financial picture,” Falkiner says. “We’ve established a unique process, and it is helping us achieve our goal of providing fresh options to brokers and borrowers in Canada.”

www.mortgagebrokernews.ca

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2/11/2017 9:17:10 AM

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FEATURES

SPECIAL REPORT

f o L L A H

E M A F CMP’s Hall of Fame brings together 10 of the most recognizable and successful individuals from across the Canadian mortgage world While the term ‘hall of fame’ usually brings to mind sports stars, Canadian Mortgage Professional is bringing the coveted recognition to the mortgage industry. The 10 inductees on the following pages represent CMP’s inaugural class of leaders and role models who have set the benchmark for the rest of the industry to follow.

These Hall of Famers are at the forefront of mortgage brokering, inspiring those around them with their wealth of knowledge and accomplishments, consistently proving themselves to be the best the Canadian mortgage industry has to offer.

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2017 HALL OF FAME INDEX NAME

COMPANY

Bozic, Boris Brewer, Dan Carey, Mary Gautier, Stewart Kwan, Sally Lloyd, Mike Mauris, Gary Meredith, John Rosati, Joe Shore, Lester

Merix Financial Connex Realty Brokerage and Mortgage Services Personal Choice Mortgage Services Mid Island Mortgage & Savings TMG The Mortgage Group DLC Canadian Mortgage Experts Dominion Lending Centres CityCan Financial Broker Financial Group Optimum Mortgage/Canadian Western Bank

PAGE 30 33 29 28 31 27 27 30 32 32

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Gary Mauris is the co-founder, president and CEO of Dominion Lending Centres, CEO of Mortgage Centre Canada, and chairman of Mortgage Architects. Together, these companies account for almost 40% of all broker-originated mortgages in Canada.

Mauris is a serial entrepreneur, having sold two prior companies to the public market. He was recognized as a finalist for the Ernst & Young Entrepreneur of the Year Award in 2011 and won the Tri-Cities Chamber of Commerce Business Leader of the Year Award in 2016, the same year he was inducted into the Canadian Mortgage Hall of Fame. His companies have also won multiple

industry awards and have been recognized

by Profit magazine as being among Canada’s fastest-growing companies.

As a business leader, Mauris is often called upon to share his views with the media; he was selected to be part of CBC’s Face the Nation in 2016 and had an open and frank discussion with Prime Minister Justin Trudeau on a variety of economic topics. In 2017, he spoke up on behalf of the industry in Ottawa during the Standing Committee on Finance hearings related to recent mortgage rule changes.

Outside of the industry, Mauris has led multiple socially conscious initiatives. He is the co-founder and president of the I AM SOMEONE Ending Bullying Society, and he also co-founded Bikes for Kids, a national program that collects new bicycles for underprivileged children across Canada.

in 1999 when he became an independent mortgage broker. “Offering only one company’s products didn’t sit well with me,” Lloyd says. “Brokering meant I could use the entire market to find just the right lender for each client.”

Lloyd worked as a broker from 1999 to 2005, helping clients achieve the goal of homeownership. In 2005, he merged with Invis on the Peninsula, earning their Top Mortgage Broker Award in 2010. In 2011, he joined Dominion Lending Centres and

Platinum and Diamond Awards every year since 2011. In 2016, Lloyd joined the DLC Elite Hall of Fame while guiding the CME team into DLC’s $1 Billion+ Volume Club. “It’s important for me to stay connected to the needs of our clients in order to be the best leader I can be for our team,” he says. “I know what our brokers go through every day.”

A true entrepreneur, Lloyd is immensely respected by his peers and the mortgage industry alike. Earlier this year, he went to Ottawa to testify as an industry expert

GARY MAURIS President and CEO Dominion Lending Centres

“It’s important for me to stay connected to the needs of our clients in order to be the best leader I can be for our team” MIKE LLOYD Owner DLC Canadian Mortgage Experts

With a degree in commerce and years of experience in lending and management with local credit unions and large trust companies, Michael Lloyd found his niche

created Canadian Mortgage Experts. The brokerage started with a small team and now claims more than 100 brokers across British Columbia and Alberta.

CME brokers have helped thousands of clients. Under Lloyd’s leadership, the brokerage has earned the title of Largest Volume Franchise with Dominion Lending Centres. Lloyd’s personal portfolio of achievements includes winning DLC’s

in front of the Committee on Canadian Real Estate Market and Home Ownership, speaking alongside other industry experts about how new government mortgage rules had impacted average Canadians.

He subsequently spearheaded an online awareness campaign to educate the public on the changes, encouraging them to contact their local MPs to put pressure on the government to re-evaluate the changes.

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FEATURES

SPECIAL REPORT

STUART GAUTIER Owner and broker Mid Island Mortgage & Savings

Currently the owner, president and CEO of Mid Island Mortgage & Savings, Stuart Gautier has been a licensed mortgage broker since 1978. In 1997, Gautier co-founded a mortgage investment company, Kensington Realfund Corporation, which he manages with his daughter. Throughout his career, Gautier has brought many people from different backgrounds into the mortgage industry and has mentored them to become successful members of the broker community.

Dedicated to being an active member of the community of Qualicum Beach, BC, Gautier has been involved with various organizations over the years, including the Chamber of Commerce, the BC Premier

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Baseball League and the Vancouver Island Junior Hockey Association. He has also been a member of the MBABC and the BC MIC Managers Association.

Looking back at his career, Gautier says the key lesson he’s learned is that you can’t just sit back and wait for things to happen – you have to make them happen.

“When I started, you had to sell your clients

The mortgage product is available to the consumer already – it’s the navigating, educating and relieving of stress that make your service valuable to the clients.”

In light of the newly announced B-20 guideline changes, Gautier foresees a slowing in the housing market in 2018, but not necessarily in the mortgage business. “Clients may need a bit of extra

“The mortgage product is available to the consumer already – it’s the navigating, educating and relieving of stress that make your service valuable to the clients” on the idea of a mortgage broker first,” he says. “I would do this by showing my clients that they could rely on me to come up with solutions and provide a seamless experience, from application to funding.

support to be able to fit into the new rules,” he says, “so brokers may have to work a little harder and maybe a little longer with their clients to prepare them to purchase or refinance.”

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MARY CAREY Principal broker and owner Verico Personal Choice Mortgage Services

Mary Carey has been a mainstay of the Canadian mortgage industry for more than three decades. This year her company, Personal Choice Mortgage Services, celebrated its 20th anniversary of doing business in Hamilton and its 10th year with the Verico network. Along the way, Carey has served as a mentor to many mortgage agents who have gone on to have successful careers, including her daughter, Megan.

Carey has won numerous awards over the years. Most recently, the Hamilton Spectator Readers’ Choice Awards named her one of the best mortgage brokers in Hamilton, and Personal Choice was named one of the city’s best mortgage companies for the 10th straight year.

While the industry has changed significantly since Carey first got her start, one thing has remained the same: her passion for helping people find the best mortgages possible. “I’ve learned that no matter how much the industry changes, the core principle will always be the same: helping clients to get the mortgage that best suits their personal needs,” she says. “As long as that remains my top focus, Personal Choice will always be successful.”

Despite the latest rule changes, Carey sees 2018 as a year of opportunity: “The tone for the mortgage industry in 2018 has already been established by the new OSFI mortgage rule changes,” she says. “In addition, we have experienced historically low rates for a number of years. In both cases, as an industry, we should treat theses changes as an opportunity, not a threat.”

www.mortgagebrokernews.ca

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FEATURES

SPECIAL REPORT JOHN MEREDITH President CityCan Financial

John Meredith started his career with Household Finance in Toronto. He left a salaried job as a manager making $12,000 a year for a 100% commissioned job as a mortgage manager, where he

estate appraiser with a CRA designation from the Appraisal Institute of Canada and is a member of the Toronto and Mississauga Real Estate Boards.

Throughout this 40-plus years in the industry, Meredith has seen firsthand the ebb and flow of the market. “The main force behind higher real estate prices has been the long period of low interest rates with almost no increase until this year,” he says.

“The main force behind higher real estate prices has been the long period of low interest rates” made $92,000 in his first year. Four years later, Meredith started CityCan Financial Corporation at a time when there were only 500 mortgage agents in Ontario. To this day, CityCan remains in the same location with Meredith as the head of the company.

In addition to being an industry leader in private mortgages, Meredith is a real

BORIS BOZIC Founder and CEO Merix Financial

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“These low rates have pushed up home prices to artificial levels with an estimated 40% of the market being investors, speculators and flippers.”

Looking toward 2018, Meredith predicts that prices will level off as demand falls for larger detached homes, while condo prices will continue to increase as people are forced out of the detached home market.

A true pioneer and advocate for the Canadian mortgage industry, Boris Bozic is the founder and CEO of Merix Financial.

With close to 30 years of experience, Bozic has an enviable record of industry achievements and contributions.

In 2005, Bozic and his partners launched Merix Financial and its sister company, Paradigm Quest. In its first year of operation, Merix funded $1.4 billion, more than any other new entrant to the broker channel. A passionate, well-known industry leader, Bozic is regarded for his precise and informed words that distinguish him from the crowd.

Bozic has also dedicated years of service to the greater good of the mortgage broker industry. He served as a board member and executive for MBABC, as well as a board member for Mortgage Professionals Canada, which culminated in his election as chair. In recognition of his years of service and industry success, Bozic was inducted into the Canadian Mortgage Hall of Fame in 2015.

www.mortgagebrokernews.ca

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SALLY KWAN Mortgage broker TMG The Mortgage Group

After immigrating to Canada from Hong Kong 27 years ago, Sally Kwan became a licensed mortgage broker in 1992. Specializing in both residential and commercial real estate financing, including land and construction loans, Kwan has consistently been ranked as TMG’s top broker in British Columbia, in addition to receiving numerous achievement awards and recognitions from a range of financing institutions and business organizations.

A peer describes Kwan as helping to “bridge the gap between new immigrants’ mortgage concept and Canadian mortgage financing practice, including introducing the mortgage broker industry to clients from Asia, where people only go to banks for mortgages.”

Looking toward the future, Kwan is confident that the mortgage broker industry will thrive in 2018, despite another round of government interventions. “We have a saying in Chinese: With every crisis, there is an opportunity,” she says.

www.mortgagebrokernews.ca

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FEATURES

SPECIAL REPORT

Lester Shore honed his sales skills during his days as a bouncer at a bar, where his responsibilities included “getting people to do what they don’t want to do while in a bar.” Fast-forward to today: Shore is now a mortgage veteran of 40 years who joined Canadian Western Bank 2001; in 2004, he became the founding employee of CWB Optimum Mortgage, the residential lending business of CWB. With a ‘work hard, play hard’ attitude, Shore has led CWB Optimum Mortgage to become one of the fastest-growing lines within CWB Financial Group. He has expanded the division from a team of

four to more than 100 employees, with members located across Canada.

Thanks to his innate business sense, willingness to try new things and many lessons learned along the way, Shore was promoted to senior vice-president and regional general manager for the bank’s Northern Alberta region in 2017. In this role, Shore leads his team to effectively execute CWB’s strategy to be the best full-service bank for business owners in Canada.

Shore says the most valuable lesson he has learned during his time in the industry has been to “look at business issues from the perspective of the clients, employees or vendors. Using this approach will help you achieve alignment of goals or purpose so you can advance your agenda.”

division. The company sold to Scotiabank in the mid-1990s; at the time, the bank didn’t source mortgages from the broker channel. Rosati saw this as an opportunity to introduce the bank to the benefits of using the broker channel as a customer acquisition

industry has the most resilient group of professionals that I have had the pleasure to work with over the past 35 years,” Rosati says. “In that time, we have seen extremely high interest rates in the early ’80s, the collapse of many of the trust companies

LESTER SHORE Vice-president Optimum Mortgage/Canadian Western Bank

“This industry has the benefit of many bright minds that will continue to innovate, grow and thrive”

JOE ROSATI CEO Broker Financial Group

Beginning his financial services career in 1981 as a loan officer with TransCanada Credit, Joe Rosati joined Guaranty Trust a year later as an underwriter in the broker services division, and he hasn’t left the broker space since.

In 1991, he joined Montreal Trust, where he headed the mortgage broker

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strategy. They agreed and appointed him to pilot the program. In his 12 years as director of national sales at Scotiabank, he helped grow the broker channel to more than 25% of the bank’s mortgage origination.

After Scotiabank, Rosati held leadership roles at MCAP, Home Trust Company and as the inaugural executive director of the Independent Mortgage Brokers Association.

Today he serves as the CEO of Broker Financial Group, a startup national broker network that has grown to encompass more than 900 mortgage brokers and agents in its short two-year history.

“If I have learned anything in my long career, it is that the mortgage brokerage

that supported the broker channel and a real estate crash in the ’90s. The great recession of 2008, which almost destroyed the mortgage brokerage industry in the US, saw the exit of many subprime lenders in Canada. And in most recent history, there have been all the regulatory and mortgage rule changes our industry has had to endure since 2008. The only constant we can be sure of is change itself. However, the other thing I am sure of is that this industry has had the benefit of many bright minds that will continue to innovate, grow and thrive as we battle and progress towards becoming the primary choice for consumers’ mortgage needs.”

www.mortgagebrokernews.ca

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DAN BREWER Owner and broker of record Connex Realty Brokerage and Mortgage Services

In the late 1970s, Dan Brewer began his career by helping families buy and sell properties before transitioning into the mortgage space. “[I] continue to serve my clients to this day with their mortgage and real estate needs – no bright lights, no fanfare, just good old-fashioned first-class service,” he says.

With nearly 40 years of private-sector

property valuation experience, Brewer is also a senior appraiser and consultant for Appraisers Canada Inc. in the GTA. Brewer joined the Appraisal Institute of Canada in 1983 and currently serves on the board of directors as national past president and previously served as national director for the organization.

Brewer is also a member of various associations on the provincial and national level, including the Real Estate Institute of Canada, Canadian Mortgage Brokers Association – Ontario, the Toronto Real Estate Board and many more.

www.mortgagebrokernews.ca

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FEATURES

SUPERBROKERS

SUPERBROKERS Ever wonder what sets one broker network apart from another?

On the following pages, the Canadian mortgage industry’s largest networks showcase exactly what they have to offer brokers

DOMINION LENDING CENTRES Compensation • All franchise owners receive a 95/5 split (on volume bonus as well); how they choose to pay their agents is completely up to their own business plans. DLC’s average agent is doing $80,000 in annual commission

Broker model • 100% franchise model

THE MIGHTY have once again come together for this year’s Superbrokers – a platform for the nation’s leading mortgage networks to share with brokers the aspects that make them different from the rest of the competition in regard to compensation, lead generation, ancillary services and more. The heads of each network have also offered their own personal take on their offerings to the broker community. Read on to learn all the pressing details about the country’s largest networks.

The following information has been submitted by the companies concerned.

KMI Publishing does not endorse or confirm the veracity of the submissions.

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Ancillary services • DLC Visa Program, a line of seven DLC-branded Visa cards – another DLC first • First mortgage brokerage to also offer equipment leasing through its mortgage professionals via DLC Leasing. DLC purchased a successful leasing company in 2007 and rolled it out across the country. DLC even has its own internal credit department to handle leasing and help agents with their deals

• Plan B Mortgage Services, a fully licensed mortgage brokerage specializing in Alt-A, B and private deals • Exclusive line of white-label products through the Dominion Mortgage suite.

This offering provides among the most competitive rates and commission payout – including both upfront and trailer commissions – in the industry • Mortgage Protection Plan – allows DLC agents to offer creditor life insurance to their clients, giving them another excellent opportunity to receive both upfront and residual income as long as a plan remains in place • An abundance of free ready-to-use templates, including articles, advertisements, client and referral partner letters and forms, website banners, and PowerPoint presentations, as well as live weekly webinars on a variety of new topics.

These are continuously updated to serve brokers’ needs. DLC also offers free custom work for advertising and communications

www.mortgagebrokernews.ca

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Lead generation • DLC is building on its previous awardwinning national advertising campaign featuring Don Cherry with exciting new campaigns designed to entertain and engage the public. DLC’s “Our House” commercials have been appearing on TV, radio, movie theatres, web and social media in 2017, including the Grey Cup and Super Bowl. These commercials (in English and French) feature the song “Our House” by Madness and highlight the different ways DLC can proudly say, “We’ve got a mortgage for that” • Our House Magazine, launched at the beginning of the year, is a quarterly lifestyle publication, produced in-house, that features stories from inside the Canadian mortgage industry and beyond, all with a focus on the home

• Property Valuation System tool, which runs off Teranet’s Purview and enables DLC brokers to search property addresses or a client name and pull a full property evaluation report based on the specific address before spinning tires with a client who may not be qualified. DLC’s head office is covering the costs and offering it free to the DLC network. No other superbroker in Canada has this relationship/deal with Teranet • Best training department in the industry – DLC’s team has more than 20 years of hands-on brokering experience and can help further educate, empower and ensure success • InsureLine, a leading insurance broker under the DLC umbrella – not only is this a revenue generator for brokers in the DLC network, but it also gives them access to an insurance provider that will make them a one-stop shop for all of their clients’ needs • Free access to Newton Connectivity Systems and Velocity, specifically designed to manage all elements of a broker’s mortgage business in one integrated and automated system

• The DLC Marketing Support Desk is a one-stop email system for the entire network when they need assistance with everything from ad creation to help with

DLC tools to everyday questions that require a quick response. The emails are assigned a number for tracking purposes to ensure they’re opened and resolved in a timely manner

Compliance and payroll • A constant focus on compliance ensures every mortgage professional in every region of the country has access to ongoing education and up-to-date compliance information from regulators and industry associations. DLC communicates this information via various means, including network-wide or province-wide communications • Complete payroll reporting system for franchise owners with very detailed compliance procedure training, all of which is overseen by head office.

Typically, within 48 hours of head office receiving payment from lenders, agents receive their commission

We know the mortgage industry is undergoing major changes. Govern­ ment regulations and new rules have added unpredictability to the industry that’s never been seen before. But that’s where Dominion Lending Centres shines. We’re not only prepared as a company to serve Canadian homebuyers in the new reality, we’re also here to help our network of brokers and dedicated professionals thrive in the industry.

As we head into our 12th year, we remain the number-one mortgage originating company because we continue to innovate, adding tools, technologies and services that can’t be matched by any other mortgage firm. Over the last few years, hundreds of top mortgage specialists and owners from across the country have switched to DLC because no one can touch what we do and offer.

And we’ve got the numbers to prove it. We now have 2,700 mortgage professionals under the DLC umbrella across the country. Meanwhile, so far this year, DLC brokers took 25 of 55 spots on the CMP Young Guns list, another 44 spots on CMP’s Top 75 Brokers list and 20 out of 48 spots on CMP’s Top Brokerages list. Simply put, we’re laser-focused to help our people succeed. Let’s make the next chapter in your life the best yet.

Gary Mauris President Dominion Lending Centres

www.mortgagebrokernews.ca

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FEATURES

SUPERBROKERS CENTUM FINANCIAL GROUP Compensation • All franchises are on a standard royalty plan; agent compensation is between the franchisees and each agent

Broker model • CENTUM is a 100% franchise organization and has been a member of the Canadian Franchise Association since it started in 2002

Ancillary services • Piper, CENTUM’s newest technology: an innovative CRM system and realtime deal analytics, as well as modern and ergonomically designed consumerfacing websites and more – all at no additional cost • CENTUM Mortgage, a prime residential program built exclusively

for CENTUM with an extensive range of products, with an exclusive renewal fee program on five-year terms • Consumer loans with competitive rates to help clients regain control of their finances by focusing on reducing their debt load over time • Commercial leasing solutions for the CENTUM family to offer their clientele new equipment leases, sale-leasebacks (the refinancing of existing assets), and bridge financing for mergers and acquisitions • Mortgage Protection Plan to give consumers the opportunity to protect their investment • CENTUM Business Benefits: Industryexclusive partnerships with companies to provide enhanced offerings to the CENTUM family – including resort vacation certificates, office supplies,

At CENTUM, we are ensuring our efforts keep the tough year ahead with all the regulation changes in mind – 2018 will be 100% broker-focused. We will remain fee-free while providing new marketing and technology.

The newly launched CENTUM University teaches everything from setting yourself up for success to marketing, and we’ve even taken on the daunting task of deal walk-through videos

“The landscape has changed – partner with someone who’s actually been in your shoes and is showing, in everything we do, that we’re dedicated strictly to your success” for all types of transactions. The process is vast and everchanging, but with staff with actual broker experience at corporate head office, we feel we’re up to the task.

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technology and telecommunications – that lower their cost of doing business dramatically • CENTUM Consumer Partnerships: Industry-exclusive partnerships that give CENTUM customers heavy discounts on items like furniture, vehicles, gasoline, moving and moving supplies, travel, accommodations, and much more • CENTUM VISION Awards and Conference: A one-day event focusing on three key thoughts – “Inspire. Engage.

Innovate.” – dedicated to continued education and recognizing the top performers in the organization • CENTUM University: Extensive training, webinars and videos focused on CENTUM back-end systems and technology, lead generation, growing your business, marketing and social media, and a full Expert application walk-through, as well as deal walk-through videos for all types of transactions, including rentals, high-ratio and stated income

Our focus on alternate products will help brokers make more during tough times. There will be huge strides made with MPP, CHIP mortgages, credit cards and a few surprises to help agents increase earnings. The quickest way to get a raise while having the satisfaction of knowing your clients are protected is by offering MPP on all your mortgages. I have always been a huge MPP supporter and saw firsthand when a client lost a loved one that the protection saved their family.

At CENTUM, we don’t have salespeople, and we don’t ask people to break prior commitments to their current brands.

I personally am happy to talk to anyone looking to maximize their business. This landscape has changed – partner with someone who’s actually been in your shoes and is showing, in everything we do, that we’re dedicated strictly to your success. CENTUM 2.0 is for brokers, by brokers.

Chris Turcotte President and COO CENTUM Financial Group

www.mortgagebrokernews.ca

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• Dedicated training in CENTUM’s franchisee training program, Planning for Success, which helps owners move their business forward to achieve the office production goals they set out • Social media that is professional, engaging and designed specifically for each mortgage agent, enhancing their online reputation with valuable content that is designed to engage their followers • Knowledgeable, experienced underwriters who focus on closing deals with access to numerous lenders, including private funds, as well as access to unique exclusive promotions from lenders

Lead generation • The Express Mortgage (formerly the 15 Minute Mortgage) is designed to generate significant leads for the CENTUM family and their referral partners. The funding ratio on these leads, when managed effectively, continues to be over 80%. The best part? The leads are free • Exclusive marketing partnerships with industry-leading companies to deliver bottom-line results for brokers • Vital, qualified leads directly through the industry-leading online platform CENTUM. ca – all leads are provided free of charge • Hundreds of customizable marketing pieces and programs designed for use in social media, online and print

Compliance and payroll • Centralized accounting services to handle collection, reporting and distribution of lender/partner payments with efficient same-day direct deposit to franchisees • CENTUM systems eliminate the need for monthly reporting, writing cheques for royalty or marketing, or providing financial statements to CENTUM • With the launch of CENTUM’s new technology, offices will have a full suite of payroll services available

REAL MORTGAGE ASSOCIATES Compensation • All franchises, senior brokers and affiliates receive 100% of commissions (finder’s fees and volume bonuses) – no splits • Cost of association is $750 per month or a pay-per-deal program • In 2014, RMA introduced a 90/10 split program, then went one step further and capped the programs at $9,000.

Therefore, once RMA collects $9,000 from the 90/10 or the pay-per-deal of the flat fees, no more is deducted from the agents/brokers • The corporate volume bonus paying lenders qualifies brokers for an added 24 bps on average automatically as part of network membership • RMA operates its corporate head office on the fees it gets and doesn’t charge for advertising or origination software

Broker model • No cost to purchase a franchise

• RMA licensed affiliates are not expected to carry and promote the brand; their businesses operate under their own brand names • Standard termination clause is 30 days • Agents/brokers who don’t have their own licensed broker firm can join RMA’s corporate store, Real Mortgage Associates, under the same compensation model • New agents to the industry who are joining RMA must work with a manager/trainer whose compensation is tied directly to funding of mortgages by the new agent, ensuring the highest level of support for new entrants

Compliance and payroll • File auditing and compliance services for franchisees, affiliates and RMA brokers in Ontario • Payroll is direct deposit and conducted weekly for RMA and twice a week for franchisees and affiliates

With all the legislative changes that have come down recently, it appears that we are that much closer to becoming real brokers again. It’s no secret that some brokers out there will not make it through this storm – not because there are no opportunities for business, but because the “cheese has been moved,” and they aren’t thinking about how to find it.

The true professionals, however, will analyze the situation and identify the new market opportunities that have presented themselves. The true professionals will realize that the changes actually add more opportunities for a broker to do business.

The true professionals understand that some of the borrowers who can walk into a bank branch today and get financing won’t be able to do so tomorrow without a broker’s help.

As you read this, take some time to think about how you’re going to do business in this new environment.

Then, like a true professional, begin building a plan to get your piece of the pie. Best wishes for 2018!

Ron De Silva CEO RMA Financial Group

www.mortgagebrokernews.ca

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2/11/2017 12:21:42 PM

FEATURES

SUPERBROKERS INVIS MORTGAGE INTELLIGENCE Compensation • Full-service brokerage offering a highly competitive compensation model with commission splits for those new to the industry up to the very seasoned highvolume broker

can enjoy top lender status and get access to product specialists to help with tough deals • Assistance with interprovincial deals, allowing brokers to legally do deals in other provinces without getting a licence

• Splits are on gross earnings, not after royalty or franchise fees

• Free online mortgage application linked directly to D+H Expert account via phone, tablet, desktop or mobile app

Broker model

• MortgageBOSS, a complete operating system that syncs with Filogix so applications only need to be input once, offering team and franchise management, real-time deal flow, lender logic, 24-hour availability from anywhere, bid program for B lenders, expense tracking to make income tax filing easier, and direct lender access – currently available for all Paradigm brands

• Personal branding flexibility • Network partner model gives brokers the ability to work under their own brand/licence at a top commission split with payroll and compliance • No royalty fees or lock-in contracts

Ancillary services

• Auto notifications of upcoming renewals

• Experienced regional support for training, business and marketing planning, team-building, and feet on the street – they are there for our brokers and not just to recruit

• Support from award-winning marketing team

• Free placement desks so all brokers

• Broker mobile websites with global feeds so rates, content and news are continuously updated, along with easy management of SEO

The need for brokers to put more attention and time on each file is causing strain on their business operations and spilling over to their personal lives. To be as efficient as possible, brokers increasingly rely on their brokerage for all the stuff that gets in the way, like payroll, compliance and deal coaching. Access to senior staff who can assist in all areas of their business is highly sought after.

With more rate and product complexity, we need to put more emphasis on client and prospect education. Brokers will need to help clients earlier in the home-buying or refinancing process, effectively doing early mortgage planning so that clients can be prepared and ready when they execute on their purchase or refinance. If they do this effectively, it will strengthen their value proposition and save them time when the deal becomes live.

In our fiercely competitive landscape, we also need to turn mortgage brokering into a sought-after profession and bring in

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• Monthly webinars on compliance, insurance, Equifax, lender sessions and more • Video, content and image library for email, mail, blogs and social media • Automated weekly rate mail and Bank of Canada announcement/economic update email • Daily lender rate sheet with an economic update with articles for reposting and blogging • Automated monthly newsletter • Intranet site with branded materials for marketing and relationship management • Realtor feature sheets that include purchase plus improvements • Free professional development days with AMP credits • Forums to discuss deals and other business issues with peers • Corporate benefits program • Discounted E&O rates with premium coverage • Trade-show support with free use of booth/banners • Award-winning community and culture through national charity Angels in the Night

bank/insurance reps and graduates/MBAs who have fresh ideas and new perspectives. Invis Mortgage Intelligence thoroughly scrutinizes all hires, and our focus is on quality versus quantity, which has given us average production per broker that is higher than the industry average. We ensure new brokers are supported by their team lead, mentors and their regional manager, which greatly increases their ability to succeed.

With the strength of M3 Mortgage Group behind us, we have a very powerful platform for long-term growth. Invis Mortgage Intelligence – ‘Powered by scale, strengthened by relationships’ – is prepared and ready to thrive!

Cameron Strong CEO Invis Mortgage Intelligence

www.mortgagebrokernews.ca

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Lead generation • Easy-to-offer and competitively priced iprotect mortgage insurance builds a fantastic annuity income

programs through several established financial planner networks • MortgageBOSS can slice and dice database for very targeted communications

• Home and auto insurance referral fee program – just four referrals a month can give brokers $3,360 in additional income each year

• CRM options to fit every business model

• Branded credit cards, including the best cash-back card for homeowners – pays $50 per card plus 10 bps on all net transactions, providing additional income

• Free HTML email program to customize and target messages with tools to assist with CASL compliance

• Private label, WealthLine, with great rates, features and ability to earn annuity income with automatic payment at renewal

• Access to private and commercial lending experts

• Robust and compliant lead-generation

• Industry-leading corporate websites that get traffic and leads

• Small business loan referral programs

• Industry-leading Lion’s Share client communication program, integrated

into MortgageBOSS and available at a significant discount

Compliance and payroll • Compliance required for all brokers, no matter the model they are working under • Excellent compliance protects brokers’ reputations and helps them stay ahead of changing rules • Trusted daily automated payroll by direct deposit with detailed statements and customized team setups • A key differentiator is payroll and compliance for those at the highest splits and for network partner/franchises – not available at other brokerages

www.mortgagebrokernews.ca

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2/11/2017 12:21:55 PM

FEATURES

SUPERBROKERS MORTGAGE CENTRE CANADA Compensation

Ancillary services

• Collects a royalty fee based on the dollar volume funded by the lender; this fee is typically less than the average competitor, allowing franchises to use the additional revenue the way they want

• A relationship with Dominion Lending Centres allows members to enjoy a significant discount on products and services not offered by other brokers

• Franchises retain 100% of trailer fees, which stay with them in perpetuity • Independently owned franchises negotiate competitive commission splits directly with their respective agents based on experience, quality and volume

Broker model • Each office is independently owned and operated within the franchise network • New franchise cost is $16,500 plus HST • Head office provides on-site and/or webinar support during initial setup, along with ongoing training • Contracts with franchise owners are based on a five-year mutual commitment • Mortgage Centre Canada has a presence coast-to-coast, except in Quebec, with approximately 95 franchises and more than 1,200 agents

• Brokers have access to creditor life insurance via Mortgage Protection Plan – an ancillary revenue stream with multiple methods of payment and upfront and/or residual fees offered • Unique mail campaign allows members to offer clients or referral sources personally branded hard-copy output • MCC Client Communicator tool gives members the ability to send a personal branded email newsletter to their database on a monthly basis • Head office provides ongoing training, support and development via live monthly webinars throughout the year • On-site sales training and mentoring available for new and existing agents

• Annual conference for the entire network, focused on personal development and sharing of best practices • Property Valuation Tool allows members to easily access property data, offering more information, knowledge and statistics • Head office offers social media training and webinars, including one-on-one training

Lead generation • Client prospect leads generated through a public portal are evenly distributed based on geographic proximity • Agent prospect leads are handled and distributed in the same manner

Compliance and payroll • Franchise licensees are responsible for provincial compliance requirements • Head office provides ongoing training and support in accordance with provincial legislation

• Secure intranet offers a host of business tools, advertisements and templates

• Access to a policy and procedures manual, developed to govern franchises and assist in the compliance process

• Additional programs include MCC Client Connect (CRM solution) and MCC Lender

• Detailed reporting and payment handled weekly through head office via EFT

The biggest challenge our industry faces today is the negative fallout that government rule changes have thrust upon Canadians. The next round of changes will put many Canadians in a difficult position. As representatives of our industry, we need to shout from the rooftops just how deeply Canadians are going to be affected. We need to use our knowledge and influence to continue educating the government, and we need to share our clients’ stories and encourage them to share their own at newruleshurt.ca.

With respect to the value proposition of our network, Mortgage Centre Canada is the longest-standing brokerage in Canada because of the quality of our people and brand. MCC has built unparallelled relationships over its 28 years in the industry, including preferred partnerships with various lenders and exclusive partner offerings. By building these relationships, MCC has brought

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Connect (deal placement assistance)

ease to many processes, but more importantly, effectiveness and faster service to our clients. Canadians recognize and trust MCC because we are in communities across Canada.

Our dedication goes beyond what we show to our network and clients. We continue to deepen our partnership with Make-A-Wish Canada to help provide once-in-a-lifetime wishes to children suffering from life-threatening illnesses. In 2017, MCC more than doubled our fundraising dollars over the previous year. This is just one more reason to feel great pride in working for Mortgage Centre Canada.

Eddy Cocciollo President Mortgage Centre Canada

www.mortgagebrokernews.ca

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SARAH, 48 – SMALL BUSINESS OWNER IT HAS TAKEN SARAH A FEW YEARS TO BUILD HER BUSINESS TO WHERE IT STANDS TODAY. WHEN QUALIFYING FOR A MORTGAGE, THIS WAS VIEWED AS INCOME INSTABILITY.

BEHIND EVERY CLIENT IS A UNIQUE STORY. Street Solutions — helping clients like Sarah redefine their financial future with mortgage solutions that meet their needs.

Learn more about the Street Solutions program.

Contact your RVP today!

STREETCAPITAL.CA/BROKERS | 1.877.416.7873

™Trademark of Street Capital Bank of Canada.

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FEATURES

SUPERBROKERS MORTGAGE ALLIANCE Compensation

• Business loan program

• Completely flexible compensation model that depends on the broker’s choice of relationships, services, opportunities and fees. The entrepreneurs within Mortgage Alliance appreciate the many services and compensation choices available

• Mortgage Alliance Mastercard suite of credit cards

Broker model

• Lender HUB (top-level access to all top broker lenders)

• Brokers choose the relationship that best meets their goals: franchisee, team leader, corporate broker or affiliate

• Home and auto insurance • Leasing • Commercial lending services • Access to MICs and private lenders in MortgageBOSS

• Wealth algorithm that identifies customers for additional services and revenue opportunities

Ancillary services Mortgage Alliance has an ever-growing array of products and services that are supplementary customer retention points that earn additional income for brokers and agents who are part of the Mortgage Alliance family, including:

Lead generation

• Credit life insurance

• Innovative national brand campaigns, including television, digital and social media, to build awareness and feature the quality of Mortgage Alliance professionals, all while directly generating consumer leads to brokers’ phones/websites

• Unsecured loans program

• $100,000 Minimize Your Mortgage

As in previous years, I want to speak about adaptability.

You know the old adage – things change, we adapt, get used to it! It seems we’ve adapted pretty well. This year, we’ve seen 15% mortgage origination growth in our organization,

“We are adapting to the new environment by allowing brokers to be the conduit to a suite of financial services” plus an enhanced ownership structure that brings new expertise, experience and opportunities for Mortgage Alliance and M3 Mortgage Group brokers.

We are adapting to the new environment by allowing brokers the opportunity to be the conduit to a suite of financial services if that’s their wish. We’re encouraging the systemization of

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Sweepstakes, which has awarded more than $1 million in prizes to brokers’ customers since 2007 • Personalized consumer app, MOPOLO, which offers free credit scores and free home evaluations to consumers. These are updated every month for users to keep track of their scores and home valuations. Leads generated from the apps are harvested in Mortgage Alliance’s MortgageBOSS system for communication opportunities. Customers can also apply for credit directly through the app • Key partnerships with digital channels funnelling leads for pre-qualification.

Leads are then distributed to brokers based on geographic location • Timely, professionally written monthly customer communication with a phenomenal 35% open rate, which educates customers and generates leads and referrals • INSPIRE Variable Direct Mail Program integrated into MortgageBOSS, which customizes content and graphics for every marketing piece with customer- or referral-source-related data for maximum impact and lead generation

brokerage businesses with the use of our proprietary enterprise technology that allows mortgage professionals to prospect more, transact more and follow up more, much easier. We’re embedding additional services like unsecured loans, credit cards, insurance and investment right into the system and taking access to lenders to a whole new level.

We are behaving more like entrepreneurs running our independent businesses every year. I’m pleased to see how many mortgage professionals are adopting a philosophy that focuses not on deals, but on the value of customers in their database and enhancing the customer’s experience. As entrepreneurs, we know that a customer is worth so much more than a deal.

Michael Beckette President and CEO Mortgage Alliance

www.mortgagebrokernews.ca

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• Transaction-based IMPACT customer follow-up program that focuses on generating referrals and repeat business; brokers choose IMPACT for one out of every three transactions • Personalized marketing consulting and design, producing unique broker selfbranding materials • Various automated email-based leadgenerating communication programs within MortgageBOSS that are easy to use and CASL-compliant • Fully customizable Weekly Advisor that keeps brokers top-of-mind with referral sources and prospects

MORTGAGE ARCHITECTS Compensation • Splits available for franchise and licensed agents

• Access to Newton and Velocity technology

• Six unparallelled compensation models ranging from 90% to 97%

Lead generation

Broker model

• Broker websites that help brokers generate and convert leads

• Caters to all business types, from independently owned and operated franchises to brokers who would like to be directly licensed under Mortgage Architects

• Industry renowned Lion’s Share client communication program, integrated into MortgageBOSS, which has an 80% repeat business generation success rate

• Franchise programs for independently owned and operated brokerages – no franchise fees

• Free social media management services for Mortgage Alliance brokers

Ancillary services

• Sales training, education and networking through Mortgage Alliance University

Compliance and payroll • Dedicated in-house compliance officer who offers guidance and support to agents, brokers and franchise owners • Safe Docs system that allows customers to securely upload their docs directly to their file in the MortgageBOSS system • Secure online compliance process for all Mortgage Alliance professionals that attaches and stores documents right with the customer’s actual mortgage file on their contact record • Daily direct deposit payroll • Payroll is fully integrated, allowing brokers to view real-time receipt of commission notices, reports and balance statements • Brokers can view their deal pipeline, deal status and paid or pending commissions in real time using MortgageBOSS

referral opportunities through Insurline

• Central underwriting unit to help brokers place deals with lenders they don’t have top-tier status and compensation with • Equipment leasing and accounts receivables purchasing • Commercial mortgages • Print and electronic CRM platform to help brokers stay top of mind with customers and referral sources • Home and auto insurance franchise and

• Prospecting training sessions that have a proven 20% return

• Free search engine-optimized, industryleading websites and mobile websites • Free auto-triggered e-CRM for pre-, during and post-origination communications • Free auto-triggered e-CRM to keep in touch with referral partners • Exclusive print CRM program to keep in touch with clients through direct mail • Free access to customer prospecting campaigns

Compliance and payroll • Compliance is made easy and seamless with a document management system that makes compliance paperless and integrated with CRM • Complete payroll services, including commission splitting, T4A generation and full management of lender receivables

Many don’t realize that Mortgage Architects started 12 years ago as a full-service brokerage and slowly morphed into offering franchise opportunities. Over the years, we’ve perfected and grown our suite of offerings, which most brokerages can’t compete with. A robust CRM program, full payroll and compliance services are but a few things that we do exceptionally well. In fact, more than 80% of our top brokers (both within franchises and under our full-service brokerage) leverage our value-added platforms.

In an environment of so much change, the value provided by your brokerage is so important. I welcome you to compare to make sure you’re getting the most from your brokerage relationship.

Dong Lee President Mortgage Architects

www.mortgagebrokernews.ca

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FEATURES

SUPERBROKERS VERICO Compensation • New industry-exclusive opportunity that can increase revenue for every deal • No taxes (i.e. royalties) on commissions • No franchise fees • No advertising fees • Full control of revenue streams and lender relationships • Full control of commission and agent splits • Proprietary loan products with trailer fees

• Website builder, brochure builder and banner ad builder • Stringent application process that ensures the calibre of VERICO members reflects the high standard of VERICO’s reputation

• Automated marketing program

• Helping owners achieve their business goals is the single focus of VERICO Canada, but VERICO does it differently by supporting members in all aspects of their business while fostering the entrepreneurial spirit

• Automatic newsletter program to keep brokers’ names top of mind with clients

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• D+H online and offline application that feeds directly into Expert account • Exclusive lender relationships and privatelabel mortgage products with financial benefits

Ancillary services • BrokerBase+, a next-level layer of CRM and deal management over VERICO’s flagship suite of tools, BrokerBase

Broker model

• BrokerBase, a suite of client-facing marketing tools that will get brokers more referrals, more renewals and more leads

• The first and largest true network model in Canada

• Deal Assist, VERICO’s new underwriting hub

As we move toward the end of 2017, VERICO remains one of Canada’s largest and most respected mortgage origination networks. In 2017, VERICO’s growth outpaced all competitors in both network size and loan volume. To date, 41 broker-owners have chosen to align their businesses with VERICO in 2017, speaking volumes to the business advantages available to our members. This equates to approximately $2.4 billion in new volume added to last year’s $16 billion total.

With the addition of these exceptional mortgage professionals and the launch of several broker-centric tools during a year that included fierce competition and changing regulations, VERICO is in an undeniable position of strength.

Solidifying our position is VERICO’s announcement in late September that we have aligned with M3 Mortgage Group; collectively, we are now quantifiably the number-one grouping of brokers with more than $41 billion in funded volume. This partnership leverages critical mass, expanded resources, increased loan volumes and dominant market share, and will empower VERICO and its brokers while they remain independently owned and operated.

This key differentiator between VERICO and our competitors remains at the core of our proposition. The VERICO model puts the business, brand, lender and customer relationships back into the hands of the independent broker-

• Customizable client tip sheets and feature sheets

• Trailer fees • Deposit brokering profit centre opportunities • VERICO Insurance for mortgage, life protection and critical illness • Wealth management • Education and training with world-

owner. It is this philosophy that continues to attract mortgage professionals who want to achieve their entrepreneurial aspirations. VERICO’s philosophy, in conjunction with an industry-leading suite of support and tools, is unrivalled in the industry and continues to put our brokers in a unique position to win on their terms.

The latest round of B-20 announcements should restore some balance to the marketplace as it relates to the qualification process for borrowers. Although these announcements may not be embraced by many within our industry, we believe there is a silver lining in the reduced loan risk profile derived by the tightening of underwriting policies, which might potentially attract more investors into our market and manifest in new lenders and/or new product innovations within our existing lender base. Conversely, the reduction in buying power and the more stringent qualification process might contribute to an ever-expanding alternative mortgage market.

Albert Collu President VERICO

www.mortgagebrokernews.ca

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renowned Brian Tracy Group, 40 hours of training in the robust VERICO Academy video library, one-hour webinar sessions featuring top VERICO members and lender speakers, and training support from VERICO’s member services team • Full resource centre offering branding, marketing, and advertising support, PR and media outreach, an enterprise-level CRM system, and consumer newsletters • VERICO white-label products to service the needs of clients through every stage of their lives, whether they are trying to move into a bigger home for an expanding family or wanting to cash in some equity for college funds • In-house preferred suppliers, including Rogers Wireless, The Brick and Petro Canada • Corporate leasing • National and local events where members from across the country can network and take advantage of VERICO’s collective expertise

BROKER FINANCIAL GROUP Compensation • Personal and adaptable business models, from 80/20 to 100% revenue split, based on the relationships and services brokers require from BFG to complement their business model. BFG is completely transparent and offers solutions that fit every broker’s business

• BrokerBase is a cutting-edge CRM system based on enterprise-level Microsoft CRM Dynamics. VERICO transformed what was out of the box and turned it into a 24/7 automatic marketing machine that provides first-class service and regular customer touchpoints • BrokerBase outperforms the competition, turns clients into fans and gets the phone ringing, generating more repeats, more referrals and more renewals

Compliance and payroll • VERICO members operate their businesses using best practices and comply with regulations to the highest degree • Licensees retain full control of revenue streams and lender relationships

• Underwriting desk (access to all lenders and higher compensation) • Lead generation • Marketing program

Broker model • BFG’s philosophy of full transparency, along with a business model that is designed to maximize BFG’s affiliates’ compensation, is a perfect setting for success. Brokers and agents, who become affiliates of BFG, reach milestones in their businesses through BFG’s marketplace of ancillary products, which not only create additional revenue streams and long-term book value, but also create retention and significantly deepen working relationships with clients

Ancillary services Lead generation

management, digital marketing, auto dialer, website templates and content management, compliance and payroll, and personalized websites

• Automated CRM and Task Manager, deal

• Mortgage retention department • Broker points program • Training and development • Group home and auto • Health and dental benefit packages • Additional product offerings including auto, personal and commercial loans; private funds; credit cards; life, creditor life and term life insurance; wills and estate planning; and home and auto insurance, which empower BFG brokers and agents to capitalize on opportunities within a customer’s life cycle

If we’ve learned anything from all the modifications our industry has had to endure since 2008, it’s that the only constant we can be sure of is change itself.

Our market will continue to morph, and those changes will manifest themselves in numerous ways, including direct-to consumer plays, artificial intelligence, fintech advancements, process flattening and continued government pressure through poorly thought-out rule changes – all of which will affect consumer choices and ultimately their experience and buying ability. As an industry, adapting is no longer an option.

At Broker Financial Group, we strive to be leaders in change. Our priority is your business and ensuring the growth and longevity of it. As we continue to meet and speak with some of the greatest minds and entrepreneurs in our industry, we are hearing that it is time for change. We are seeing brokers and agents finally waking up to a world that is theirs to lose without change. This, we believe, will be the catalyst to our survival, our growth and our success as a community of mortgage professionals in Canada.

Joe Rosati CEO Broker Financial Group

• Lenders pay directly to licensees

www.mortgagebrokernews.ca

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FEATURES

SUPERBROKERS TMG THE MORTGAGE GROUP Compensation

who want to own their property

• Powered by TMG The Mortgage Group offers an excellent opportunity for independent brokerage companies that want to expand while continuing to operate under their current brand; TMG provides the infrastructure to reduce operating costs and accelerate growth, along with all the benefits of a full-service brokerage

• Full-service brokerage where compensation is internally consistent and externally competitive • Progressive partnership with brokers that rewards production – more business equals a larger share of revenue • No franchise fees, monthly fees, royalty fees or locked-in contracts • TMG centrally manages the brand, monitors compliance issues and takes care of payroll through a state-of-theart system that notifies brokers when they are being paid – all statements are available through BrokerNet

Ancillary services

Broker model

• TMG Merchant Advance Capital gives brokers an opportunity to help their selfemployed clients improve cash flow and grow their businesses

• A variety of client solutions allow brokers to generate additional revenue under the TMG-branded label • TMG mortgage products help brokers preserve and protect client relationships

• TMG has operated as a full-service, national brokerage company since 1990 • Brokers, associates and agents in TMG’s network operate under provincial licences across the country, which allows TMG to foster strong national relationships with regulators, mortgage associations and lenders, ensuring consistency across the country

• TMG Mortgage Insurance offers mortgage insurance coverage, as well as term and permanent coverage for life, critical illness, disability and job loss • TMG Commercial Mortgages offers a new, innovative product for business clients

• Merchant Leasing lets brokers assist their business clients with equipment financing • TMG’s dedicated Deal Centre provides brokers assistance with applications and exclusive promotions

Lead generation • TMG offers a customer relationship management program that brokers can use to manage client communications, leading to referrals and increased business • State-of-the-art customized broker websites to assist with lead generation • Active social media that generates brand recognition • A variety of automatic client communi­ cations, including breaking news, monthly bulletins and a quarterly newsletter • TMG Design Services provides seamlessly integrated services, from advertising campaigns and exhibit graphics to websites and marketing literature • Direct access to experienced executives and regional management; an open, progressive, entrepreneurial environment; progressive, proprietary technological

Read Canadian Mortgage Professional UPFRON

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solutions; and extensive training, tools, and marketing systems to help brokers generate and cultivate leads

Compliance and payroll • TMG’s broker model simplifies compliance and payroll • Secure online compliance software is integrated within the DOC Central system, which also provides paperless document imaging • Regulatory compliance, policies and procedures are monitored • All data is secured and held in a sophisticated internal and external backup storage system • State-of-the-art automated accounting and payroll system centrally managed by TMG at no cost to brokers • Brokers are notified when payment is received by the lender • Detailed commission statements available on BrokerNet • State-of-the-art reporting and goaltracking technology

Since 2008, the Canadian mortgage industry has experienced increasing scrutiny and regulatory oversight, and in some cases, reduced competition among lenders.

However, despite continued market challenges, brokers have grown their market share because we represent the best solution for consumers looking for mortgage financing.

To continue to serve our clients, we must keep up-to-date with changes, educate ourselves with continued training and use support tools. Ongoing education and developing state-of-the-art technology are two of TMG’s pillars. We are recognized as one of the market leaders in training, and we constantly explore ways to use technology to help our brokers be more efficient and effective.

The mortgage industry is a community, found within teams, brokerages and even associations. Communities care about the community as a whole. We are proud of the #TMGfamily and our community. Our brokerage model is based on supporting your success.

From the most dedicated and passionate staff to our professional and empathetic brokers, TMG represents leadership in the broker channel, and strength and stability for consumers.

As brokers, one of our key value propositions is choice. As a broker, you also have a choice. In a competitive environment, it’s critical that you align yourself with a company that supports you and gives you the tools to ensure your success.

Your business is working with clients. Our business is helping you do just that. Working with a full-service mortgage brokerage company offers you the opportunity to focus on your core competency: originating mortgages.

Effectively managing compliance, payroll, training and lender relations, as well as working with regulators and creating sales tools, is our part of the equation. As a brokerage, we are aligned with your success – as you grow, TMG grows alongside you.

Mark Kerzner President TMG The Mortgage Group

www.mortgagebrokernews.ca

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PEOPLE

BROKER INSIGHT

Independent thinking Mortgage broker Eitan Pinsky talks to CMP about why he decided to leave the safety of a big bank to go it alone

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

Eitan Pinsky: When I was just out of university, I wanted to be a real estate developer, and I had a lot of interviews with developers. Most of them advised me to get into the financial side of the development game. I was lucky enough to get hired by a mezzanine financer called Trez Capital, and I got my mortgage broker’s licence with them in 2007. But I found that I didn’t work very well in a company setting and got out of there about a year later. The money was great, but it didn’t work for my personality.

I took a two-year hiatus from mortgages and worked in the nonprofit sector. I then decided that I wanted to be an investment advisor. I had five interviews with ScotiaMcLeod and six with Nesbitt Burns, but they said I was too young and that nobody would give me money. But since I had my mortgage broker’s licence, RBC hired me as a mortgage specialist.

CMP: How was your experience working with RBC? EP: I started in the middle of 2011 and worked there for a year and a half before going out on my own as a mortgage broker in early 2013. I didn’t do well at all as a mortgage specialist at RBC because there was a lot of politics in the bank, and I was young.

Mostly, when you’re at a bank, you’re told

50

that they’re going to feed you business, and I believed that, so I didn’t take my success into my own hands.

As soon as I became a mortgage broker, I realized that nobody was going to help me and that I needed to do everything on my own. That’s when I started being successful because I didn’t rely on anyone else. I could provide real service and real advice based on options and choice, whereas before I could only offer options from RBC.

CMP: Have you enjoyed being an independent broker?

EP: It’s been fantastic. In my first half year, I did about $4 million, the next year I did $17 million, then $30 million, and last year I did almost $60 million.

I’m constantly thinking about how to build my business. The most important thing is that I don’t have to ask people for permission to do something – it’s all on me.

The buck stops here.

CMP: To what do you attribute your growth?

EP: I realized that focus is the most important thing for any mortgage broker.

I’ve dabbled with so many different ways of marketing. I have a BA Honours in commerce with a major in marketing and a major in economics, and I think the marketing aspect of that has really helped.

It showed me how marketing brands and myself to different audiences can impact the bottom line.

I realized that I needed an area of focus, and I decided to concentrate on Realtors.

So I have at least two Realtor events every year. I’ve hosted seminars, meet-andgreets, lunch-and-learns. My best event last year was beer tasting. I invited all of my Realtors, plus their best referral sources, and I rented out the captain’s mess of a military hall. It was amazing – we tried six IPAs and six lagers. Giving back to the Realtors was amazing.

PINSKY’S ADVICE FOR OTHER BROKERS “Don’t waste time, and make sure you focus on specific areas. There are a lot of different things you can waste time on, but it’s important to focus on the things that will produce results, as opposed to things you think might produce results. That’s like throwing spaghetti on the wall and hoping it sticks. Choose one thing and go with that – if it doesn’t work, try something else. But don’t spread yourself too thin with different marketing activities. You’re going to get better results if you put all of your eggs in one basket rather than spreading them into 10 different baskets.”

www.mortgagebrokernews.ca

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FAST FACTS: EITAN PINSKY

Started in the industry in 2007 as a commercial real estate underwriter

Worked in the nonprofit sector for two years, then was hired as a mortgage specialist at RBC

Founded Pinsky Mortgages in 2013

Located on Granville Street in Vancouver

“The most important thing is that I don’t have to ask people for permission to do something – it’s all on me.

The buck stops here” CMP: What are your views on the latest tightening of mortgage approval rules?

EP: It does decrease people’s ability to purchase homes; however, it is very positive in that the monoline lenders will now be on more of an equal footing with the banks. I don’t like how the banks have

a leg up. Unfortunately, in the last few months, two-thirds of my business has been going to Scotia because of the ability they have over and above others when it comes to uninsurables. However, in the last month, other lenders have come out with competitive options in the uninsurable space.

Finalist for Best Newcomer, Mortgage Broker Firm, at the 2017 Canadian Mortgage Awards

Credits two books for helping him build a successful business: The E-Myth Revisited and Millionaire Real Estate Agent

www.mortgagebrokernews.ca

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FEATURES

MANAGEMENT

Five signs your employees don’t care anymore From absenteeism to poor-quality work, leadership expert Karen Gately identifies the warning signs of employee disengagement and what you can do about them PUT SIMPLY, engagement is the extent to which people feel connected with and committed to their job, team and organization. Being connected is most clearly reflected in the emotional ownership people feel – in other words, how much they really care about achieving their own objectives as well as about the success of their team.

The ultimate indication of disengagement is when it results in a decision to leave the job.

While some people will stay in a role they’re not happy in, most will eventually choose to look for a new and better opportunity elsewhere. Of course, some people leave feeling satisfied with their employment experience, but the reality is that many don’t. Inspiring people to build a career rather than simply do a job is an important challenge for leaders.

Most people move on because they are looking for something they don’t have or can’t get where they are. Whether that’s a more interesting or challenging job, more money, a greater work–life balance, or a healthier workplace culture, the reasons people choose to leave are many and varied.

How to spot disengagement The five most common signs of disengaged employees include:

and unplanned leave. Most people find it much harder to get out of bed and go to work when they are dreading what’s waiting for them when they get there.

2 Lack of discretionary effort

1 Absenteeism

Absenteeism involves high rates of frequent

52

Discretionary effort is defined as what people do because they want to, not because they feel

obligated to. Disengaged people typically do only what they have to do to keep their job.

Some deliberately limit their contributions in silent protest at their unhappiness.

3 Absence of teamwork

People who are disengaged will often fail to work well with other people. Those who

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are engaged will often find their disengaged colleagues frustrating and a roadblock to success. The potential for these frustrations to escalate into conflicts is very high.

4 Suboptimal productivity

Simply focusing on the task at hand, let alone driving to achieve optimal results, is a challenge for disengaged staff. While they struggle to find energy and focus, their job is not getting done.

5 Poor-quality work

Errors, overlooked priorities and missed deadlines are just a few examples of the impacts disengagement has on the standard of performance achieved.

Common challenges in small business Keeping people engaged in a small business environment can be especially difficult. Among the most common challenges leaders face include: Providing rewarding careers. Often small businesses are not in a position to offer the career advancement people are looking for. Looking for and providing opportunities for people to learn and grow with the business are critical challenges.

Investing the time needed to help people feel valued and supported. Often leaders in small businesses have a heavy individual workload to manage. The demands of service delivery, business growth and financial management make spending time with staff challenging. Typically, this leads to inadequate focus on the essentials of people management: providing clarity, coaching and accountability.

a common mistake leaders make.

Each person is unique, and to influence their commitment takes understanding of what makes them tick. As I share in my latest book, The People Manager’s Toolkit, the most important thing any leader can do to improve engagement is focus on the spirit of their team.

Our spirit is the positive energy that we have in reserve and draw on to get our job done. People who are energized typically choose to behave in ways that enable success.

Conversely, when people are drained, they become more likely to disengage and behave in ways that undermine not only their own success, but also that of their team. The

Identifying and accepting the fact that you have a staff engagement issue is the first step toward overcoming it. Choosing to do something about it is the next. The leaders I work with are typically frustrated by the demands on their time and energy of having to deal with performance issues, and all too often they fail to act. Overlooking or avoiding obvious signs of disengagement is

How people feel about what they and their organization contribute to the world matters.

Doing a job that has an altruistic purpose energizes many people, while others derive purpose and meaning from the harmony between their values and those of the organization they work for. Still other people want to feel like they’re a part of something bigger than themselves or are contributing to their organization’s success.

4 Belief

The strength of our belief is reflected in how we feel about the future and our ability to influence that future. Examples of the types

Feeling valued, qualified, capable and successful are powerful energizers and drivers of engagement. Influence people to feel valued, and they are more likely to remain connected with their job and your business following are four common influencers of a person’s spirit and therefore engagement at work.

1 Sense of personal value

How we feel about ourselves, as well as how we believe others feel about us, energizes or drains our spirit. Feeling valued, qualified, capable and successful are powerful energizers and drivers of engagement. Influence people to feel valued, and they are more likely to remain connected with their job and your business.

2 Relationships

Driving engagement

3 Purpose and meaning

The quality of our relationships with our boss, colleagues, staff, clients, service providers, etc., influence the way we feel about being at work. When we trust and respect the people we work with, we are more likely to be engaged. Contemplate for a moment the people who inspire you to give your all. Equally, reflect on those who cause you to minimize your efforts and do no more than you have to.

of positive emotions we want people to feel include being hopeful, optimistic, confident and empowered.

Make engagement matter. Hire and retain people who want to be there, understand your team and deliberately influence the things that energize their spirit, and you are well on your way to overcoming most causes of disengagement. As a leader, there is a lot you can do to influence the engagement of your team, but only so much. Expect people to also take ownership of their own spirit and level of engagement. As the age-old saying goes, you can lead a horse to water, but you can’t make it drink.

Karen Gately is a leadership and people management specialist and a founder of Ryan Gately. She works with leaders and HR teams to drive business results through the talent and energy of people. Gately is the author of The People Manager’s Toolkit: A Practical Guide to Getting the Best from People (Wiley) and The Corporate Dojo: Driving Extraordinary Results Through Spirited People.

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PEOPLE

CAREER PATH

A

PEOPLE PERSON

Sabeena Bubber credits her success in the mortgage industry to her love of connecting with people Not long after Bubber finished her commerce degree at the University of Regina, she snagged a job selling retail credit cards and high-interest loans “It was the best training ground on the planet – offering retail credit cards and high-interest loans, we had to know how to sell on service and benefits, not on rate”

1994

LEARNS THE ROPES

2004

BECOMES A BROKER Shortly before becoming pregnant with her second child, Bubber resigned from the bank and qualified to become a broker “When I left RBC, I was one of the top five salespeople in the province – and I’d achieved that in less than three years. People had left the bank but not made it as brokers. My first year, I did lower volume but made much more money. I made the right decision”

2001

FINDS HER WAY After relocating to Vancouver, Bubber was introduced to the mortgage world when she was brought onboard by RBC as a mortgage specialist “I got no training – they gave me a computer and didn’t explain anything to me.

I was on my own. For the first six months, my only client was one friend of a friend.

By the second year, I was fifth in the province. I planted seeds for six months, and it just went through the roof”

2007

GOES OUT ON HER OWN

2013

After starting her own firm, Integre Mortgage Partners, Bubber won a spot on CMP’s annual ranking of the country’s top brokers; she has been a regular on the list for the past 10 years

Merging four brokerages to form Xeva Mortgage was Bubber’s idea – she sensed that she and her three longtime acquaintances could realize greater efficiency as a team “That was the best thing I ever did. We were already sharing and supporting each other as individual brokers. We agreed we could save so much money if we amalgamated, shared those costs and became one company”

“It was a big deal running my own show, being my own boss. I was elated [at being on the Top Brokers list]; it was a feather in my cap and a testament to how hard I worked to establish myself from nothing”

ESTABLISHES XEVA

2015

FINDS A WAY TO GIVE BACK A family tragedy prompted Bubber to start a GoFundMe page to cover funeral expenses; she was shocked by the outpouring of support. The experience led her to co-found 100 Brokers Who Care “We had $32,000 by the time the page shut down. It was so powerful – everybody pitched in because I put the call out.

I thought, ‘If we can rally together that way, why not do that for people in need?’”

2016

STUDIES CONNECTION Impressed by the improvement she saw in a colleague who had studied neuro-linguistic programming and hypnotherapy, Bubber was inspired to follow in those footsteps “It’s a means of connecting with the people you talk to on a deeper level, without them knowing you’re doing it. I feel like I’m hitting my stride, connecting with my highest self, connecting with everyone in my life”

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PEOPLE

OTHER LIFE

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

hi m s e lf D u n p heys 10 o f t h e t e a c h cl a s s e s we e kly t his st u dio h e ld a

70

Weekly classes held at Dunphy’s yoga studio

5–25

Number of postures in a typical yoga class

45

Minutes Dunphy spends on his daily yoga practice

JUST SAY OM Owning his own yoga studio gives Chris Dunphy a place to decompress from the stress of the mortgage industry WHEN CHRIS DUNPHY, a Port Moody, BC-based mortgage broker, was encouraged by a friend to open a local yoga studio in 2006, it was essentially a business venture.

However, it was one that came at a good time for Dunphy, who had been working a high-stress job for seven years.

At the time, yoga wasn’t a passion for

Dunphy, a former decathlete who describes being “dragged” to his first class. “It wasn’t the most pleasant experience for me,” he recalls. “I was used to hard training; yoga is the opposite of that.”

However, the need to escape his stressful day job prompted Dunphy to embrace the discipline. “I needed to change my life – I

wasn’t enjoying what I was doing,” he says.

“The first couple of years, the studio did terribly. I took a huge pay cut to be a yoga studio owner, but I was really happy with my life.”

From there, Dunphy says, “my eyes were opened to what yoga is – I thought it was just stretching, but it’s a lifestyle practice.”

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E V I T A N e c R n e i E r e T p L X P And get the N

e h t e r o l p x E a

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Steve Lydon VP, Alternative Lending – NPX steve.lydon@merixfinancial.com 416-571-6389 CMP 56-OBC_Other 12.11-NPX Merix_v2.indd Life-SUBBED.indd 1 58

Steve Faria Director, Business Development NPXsalesdesk@merixfinancial.com 416-605-4125

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