summer 2010 issue
creative 10 top tips
lending for mics
Publication # 4 1 2 9 7 2 8 3
RepoRt on MeMbeR
SeRviceS SuRvey ReSultS
2 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 3
JOIN US IN OCTOBER 2010 fOR CONSUMER MORTGAGE INfORMATION MONTH
NEW TOPICS, TRENDS, AND TECHNOLOGIES
This October, Consumer Mortgage Information Month is back and better than ever. We will be promoting free mortgage information
seminars for consumers brought to them by the mortgage professionals of MBABC. Planning is well under way and more details
will be announced within the coming months.
JOIN THE CONVERSATION
Did you participate in last year’s event? Will this be your first time? Tell us if you would like a specific topic covered at this year’s
mortgage month. Help us make this year a roaring success by submitting your ideas and comments to: firstname.lastname@example.org
BROUGHT TO YOU BY THE MORTGAGE BROKERS ASSOCIATION Of BC:
One more way the MBABC is increasing consumer awareness by advocating mortgage brokers as the number one choice for
We look forward to seeing you in October! For more information visit www.mbabc.ca
4 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
Lenders working on a "creative" approach to building mortgage solutions. From left to right: James Pell,
Peoples Trust; Aryn Snell, Mountain City Mortgage Corp.; Rick Feilen, Secure Mortgage Group Ltd.
President’s Message 7 Registrar of Mortgages Brokers— 52
Board of Directors 8 Bulletin Number: MB 10-003 (amended)
Confirmation of Identification for
Editor’s Viewpoint 9
Criminal Record Checks
Welcome New Members 49
Bulletin Number: MB 10-004 52
Thank You to Advertisers and Sponsors 54 Mortgage Lead Generation—Requirement for
Mortgage Broker Registration
CHair rePorts New Rules for Conducting Criminal 53
Board of Directors Reports 46 Record Checks
FICOM Mortgage Broker Statistics 53
eVeNts FICOM Contact List 53
Okanagan Networking Event Sponsors 2 Mortgage Lead Generation: 54
The Requirement for Mortgage Broker Registration
Consumer Mortgage Information Month 4
Calendar of Events 26
Exploring Private Lending 10
iNdustry News & aNNouNCemeNts
Creative Lending Feature 14
Goodbye to Jack Oyhenart 30
10 Tips for Mortgage Investment Corporations 39
2010 BC Summer Games Appointment 30
Dominion Lending Centres wins 30 ColumNs
5 CMP Awards
Ask an Expert 36
Paul Stapley, DLC Coastal Mortgages in 30
Campbell River Gives Back to the Community Lifestyles 43
Optimum Mortgage Appointment 30 On the Scene: 44
Home Trust Expands Alternative Product 30
Suite in Western Canada memBer/leNder ProFiles
VERICO Regional Days 30 Lorie Martin 13
Peter Kinch Writes First Solo Book 31 Kim Strynadka 33
Invis and Mortgage Intelligence 31
Celebrate 10th Anniversary ProduCt aNd iNdustry uPdates
HLC Home Loans Canada Appoints 31 CMHC: Vancouver Housing Market 50
New President Becomes More Balanced
2010 CMHC Mortgage Consumer Survey 51
43 Cover and Creative Lending photography by Chris Chernoff Photography • 604-315-8301
• www.chernoffcommercial.com • email@example.com
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 5
You cannot hum while holding your own nose.
VERICO Mortgage CRM is the only Office Outlook based tool available in the
Mortgage Industry that is fully integrated with Filogix Expert, and it is Free to
VERICO Broker Owners and Agents .
MORTGAGE BROKERS NETWORK
6 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
In this, my initial address as your president, I would like to start off by thanking the member-
ship and the board for their vote of confidence in the recent election. I am very honoured
to represent this group of mortgage professionals and suppliers. Furthermore, I am looking
forward to working with the many diverse experts that make up our board. We will continue
to ensure value is delivered to our members while maintaining fiscal responsibility. And
on that note, a special thanks to Joe Santos – Past President – for a job well done and for
inspiring our board to achieve its goals.
This year, many of the same board members have returned and so we will be picking up
our work where we left off. The board continues to have many initiatives on the go, one of
which includes promoting positive consumer awareness and the benefits of working with
a broker who is a member of MBABC. To achieve this, we will leverage our ongoing me-
dia exposure while working with our counterparts, AMBA, IMBA and CAAMP, to make
“mortgage month” a national event.
Other initiatives include enhancing professional development, industry networking, strength-
ening our position as the “voice” of our industry, enhancing positive relationships with
government and regulators, ensuring valuable content in our ever-popular magazine, and
of course, our hugely successful annual conference and trade show.
President, MBABC This year the MBABC will make history as we launch our first of many re- licensing
courses through our newly formed MBIBC (Mortgage Brokers Institute of BC). We are
very proud of the fact that our regulator acknowledges the value in the educational initia-
tives that MBABC delivers. And we are so pleased that they gave us the opportunity to be
instrumental in delivering this relevant education.
Our work on the board is vast and I want to thank our board members for the time they
commit to their volunteer position. None of these initiatives could be achieved without their
efforts. Having said that, there is always room for volunteers in our many committees and I
encourage all of you to consider this, with an eye for possible directorship on the board in
future years. All you need to do is contact me or our office and we will put you to work.
Finally, I welcome all input and feedback from our membership. This is your association
and our office, along with the board want to ensure you value your membership in MBABC.
I can be reached at firstname.lastname@example.org.
I am looking forward to serving you this coming year.
mbabc mission statement
The Mortgage Brokers Association of British Columbia’s mission is to provide its members with the best educational opportunities, ethical
guidance and professional representation, while increasing consumer awareness by advocating mortgage brokers as the number one
choice for mortgage financing.
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 7
2010/2011 BOARD Of DIRECTORS CONTACT INfORMATION
Suite 404 - 999 Canada Place, Vancouver, BC V6C 3E2
Phone: 604.408.9989 toll Free: 877.371.2916
Fax: 604.608.0977 toll Free: 866.557.0977
website: www.mbabc.ca email: email@example.com
Consumer site: www.findabettermortgage.ca
Joanne Vickery Dominion Lending Centres • Ph: 604-878-0866 • firstname.lastname@example.org
tamera olsen email@example.com
Board oF direCtors
Past-President, Past-President Council, Government Relations Joe santos MCAP • Ph: 604-630-3625 • firstname.lastname@example.org
Vice-President, Bylaw Reveiw Committee Geoff Parkin Verico Select Mortgage Corp. • Ph: 604-531-7310 • email@example.com
Treasurer, Bylaw Reveiw Committee susan shannon Verico Select Mortgage Corp. • Ph: 250-483-1375 • firstname.lastname@example.org
Secretary, Bylaw Reveiw Committee linda Fleming Dominion Lending Centres Mortgages • Ph: 604-852-1703• email@example.com
Chair Sponsorship, Island Networking Committee rob Hafer Invis, Inc. • Ph: 250-480-0633 • firstname.lastname@example.org
Chair Government Relations Jason Humeniuk Invis • Ph: 778-840-2484 • email@example.com
Co-Chair Communications: Magazine & Directory, Co-Chair 2011 Conference & Tradeshow Heather Cermak MERIx Financial • Ph: 778-997-5232 • firstname.lastname@example.org
Chair Ethics and BPCPA Disclosure, Professional Development, Island Networking roger levesque Dominion Lending Centres Rochar Financial • Ph: 250-405-4351 • email@example.com
Chair Media Relations, Government Relations Committee Jared dreyer Verico Dreyer Group Mortgages • Ph: 604-649-5991 • firstname.lastname@example.org
Chair Professional Development rob regan-Pollock Invis, Inc. • Ph: 604-878-0890 • email@example.com
Co-Chair Communications: Magazine & Directory, Co-Chair 2011 Conference & Tradeshow irena sakic Davis + Henderson • Ph: 778-228-9976 • firstname.lastname@example.org
Chair Charity Golf Tournament, Okanagan Networking Event Chris Hoeppner Street Capital Financial Corporation • Ph: 604-614-0320 • email@example.com
Communications: Magazine & Directory Committee, Sponsorship Committee Callum Greig Street Capital Financial Corporation • Ph: 250.516.9894 • firstname.lastname@example.org
8 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
PuBlisHer/desiGN & layout
Creative Expressions Graphic Design
Fall Issue: August 6
Winter Issue: December 3
Spring Issue: March 5
Summer Issue: June 4
Photo by Chris Chernoff • 604-315-8301 • www.chernoffcommercial.com • email@example.com aNNual direCtory adVertisiNG
Thank you for all of your tremendous feedback on the Spring 2010 “Traditional Lending” Please Note: The MBABC can not be held
issue of the BC Mortgage Broker. This inspired us to have a follow up issue featuring an responsible for time sensitive ads as print
exposé on “Creative Lending”. Included in this exposé are private lenders, banks, MICs schedules vary and are beyond our control.
and other lenders who fit into our criteria of non-traditional lending and fund a minimum
amount of volume per year. While we realize there are many other non-traditional lenders
in BC, we would like to thank those who participated.
Inside the summer issue you can find out some very valuable facts from our Expert in Credit
Counseling, learn something new about lending outside of the box, new FICOM require-
ments, meet your new MBABC President, plus much more! Please continue to provide us Published quarterly by
The Mortgage Brokers Association
with your feedback, comments and suggestions for the BC Mortgage Broker Magazine!
of British Columbia
We hope you enjoy.
Heather and Irena
Canada Post Publication # 41297283
Customer # 7239281
Return undeliverable Canadian addresses to:
Suite 404 - 999 Canada Place,
Vancouver BC V6C 3E2
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 9
To many newer mortgage brokers or those who have worked with traditional lenders through-
out the course of their careers, the world of private lending is still somewhat of a mystery.
While every broker knows that private lenders are out there, many often shy away from this
valuable resource because they’ve heard of higher interest rates associated with these types
of deals and/or they know they’ll have to charge fees for the added work and they’re not
comfortable with this concept.
Regardless of your current notions attached to the world of private lending, it’s important
to research all your options and discover the many ways that private lenders can help
Given the new self-employed rules that came into effect in April, for instance, if your clients
can’t qualify for traditional financing because they have been self-employed for longer than
three years and simply can’t qualify under a stated income product, all is not lost, since they
may be eligible for private funding.
Although your clients will have to pay a higher interest rate, this route may enable them
to acquire funds to purchase a home now as opposed to continuing to rent and pay down
someone else’s mortgage.
And if your clients have had credit issues from life experiences, such as illness or divorce,
that prevent them from obtaining traditional financing, at least through private lenders you
will be giving these people the opportunity to keep their existing home or purchase their
Director of Public Relations & Communications
Dominion Lending Centres
firstname.lastname@example.org • 289-240-6322 The great thing about private terms is that they are shorter – typically one year – so, while
the interest rate will be higher, your client may have the opportunity to clean up their credit
over that year and then be eligible to return to traditional financing.
10 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
ExPLAIN ADDED COSTS When it comes right down to it, most clients
UPfRONT who fail to qualify for traditional mortgages
are not going to worry about a higher interest
If you’re straight up about higher interest rate or that they have to pay some lender and
rates and added fees with your clients who broker fees – they are going to be eternally
require private financing, you’re setting their grateful to you for presenting them with
expectations and letting them know you’re a solution to their problems when many
someone they can count on in the future to people before you have likely been unable
always keep them well informed. to help.
Make sure you explain that interest rates are And on the day when they can return to
higher and they will have to pay a lender traditional financing, you will be there for
fee on private loans because of the higher them. And you’ll also likely be the one who
risks associated with funding a mortgage for receives all of their referrals from friends
someone in their particular situation. Also and family for years to come because of the
explain that you have to charge a fee because devout loyalty they have for the broker who
of the extra time it takes you to arrange a could help them through tough times.
USE INDUSTRY RESOURCES
Be sure to tell your clients that there are
others all over the country who are just The best thing to do to become comfortable
like them and can’t qualify for tradi- working with private lenders is to contact
tional financing – they shouldn’t feel like some and ask questions. You can also re-
they’re being looked down upon because quest help from colleagues or ask around
of their situation. at MBABC events.
Another key point to discuss with your cli- And if you’re still not comfortable working Sub Prime Mortgages
ent is that private financing is equity based, within the private world, consider seeking out
because private lenders want to know that a broker who is an expert on this niche and
the property is marketable and that they will can co-broker private deals with you if you
be able to easily sell it should the mortgage ever require this option for your clients. Construction Mortgages
go into foreclosure.
Private lending is just one more tool you Ask us about small commercial
CUSTOMERS fOR LIfE can add to your list of expertise to be able to mortgages and
offer more solutions for your clients. land development financing too!
When you have multiple options available
to your clients – including access to private
lenders – they will appreciate the lengths
to which you have gone to keep them in
their home or get them into a home of Fax: 604.986.3201
Quick turn arounds
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 11
An Experienced Lender You Can Trust
$1,500,000 - $15,000,000
Condo Inventory Loans:
• L/V: Up to 65%
• Interest Rates: 7-10%
• Flexible Partial Discharge
Income Producing Properties:
• L/V: Up to 75%
• Interest Rates: 6-9%
866-698-5388 Toll free
Call Brian Chelin or Mike Saba today
Or contact us at: email@example.com
Visit our website at: www.lanyardgroup.com
12 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
LORIE MARTIN We have been
RE L IABLE
What do we offer your clients?
• All open mortgages
• Interest only payments
• LOC mortgages
• Ignore their TDS/GDS scores
• Mortgage on their ½ interest
WE LEND QUICKLY!
(Our record is 900K in 4 hours!)
Rentals and land?
No credit history?
Lorie Martin, Area Manager - BC Region New Immigrants?
TD Financing Services Home Inc.
Phone:1-877-273-7498 Ext. 2501 No Problem!
WHAT TERRITORY DO I fOCUS ON?
QUALITIES THAT MAKE fOR A SUCCESSfUL SALES PERSON?
PERSEVERANCE—you have to be able to stick to it and keep the momentum going
even during slow times. PASSION—you have to believe in, and stand behind, what you're
selling. PROFESSIONALISM—self explanatory. PERSONALITY—Be yourself. People
will relate and relax more if you're coming across as authentic and real while delivering
your message. PHENOMENAL CUSTOMER SERVICE—To put it simply . . . treat your
clients like you would want to be treated as a client.
WHAT DO I fIND IMPORTANT ABOUT THE MBABC?
The MBABC is a great association for brokers at any stage in their career. The courses,
networking events, and trade shows are a fabulous way for brokers to meet, share ideas, Call us and speak directly to the decision makers:
assist new up and coming brokers, listen to veteran brokers share their knowledge.
Plus, you get to meet your business development managers!! Jim Mercier, Jessica Whyte
or Dale Matthysen
LENDER TIP fOR BROKERS…
Always be sure to submit complete applications with brief, concise, explanatory notes,
especially if you're seeking an exception or there is something that will need further 604-214-5626
explanation. It will speed up your turn around time by preventing further questions and the
dreaded "phone tag" with your underwriter. Reliable Mortgages Inc.
Our Lending area:
fAVOURITE ASPECT Of MY JOB Lower Mainland—including
I love the consulting aspect of my job. Whether it's a new broker needing a little extra Chilliwack to Whistler
training, a broker looking for advice on packaging a deal, or where he/she can send a deal
if I'm unable to do it, I love to be able to share and exchange knowledge.
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 13
CREATIVE LENDING fEATURE
A LOOK AT WHAT THE CREATIVE LENDERS HAVE TO OffER YOU AND YOUR CLIENTS
lender niche market geographic area
alpine credits ltd. • residential homes • everywhere in BC and Alberta
• raw land
• no income necessary
• poor credit is okay
alta West Mortgage • owner occupied single family residential • most areas of BC and Alberta
capital corporation is our focus • for rural property and property located
• duplex, townhouse, bare land condos, in centres with populations under 2000 we
apartment style condos (low and high rise) will consider on a case by case basis
• acreages, farms, commercial property • quality of property and liquidity are key
• rental, recreational, investment and
• personal and commercial borrowers
• do not lend on mobile homes but will
consider the land they sit on
arMada Mortgage • residential • major BC cities including:
corporation • construction – Lower Mainland (including Hope)
• NIQ lending (GDS/TDS waived) – Kelowna
– deal must make sense – Kamloops
• small commercial – Victoria
• 90 day rate holds – Nanaimo
bayfield Mortgage • any residential properties, however, • BC and Alberta, mainly the following
professionals being an Equity Based lender, we are not – GVRD
limited to a specific market type. – Fraser Valley up to Chilliwack
• will look at commercial properties on – Victoria Regional District, Nanaimo,
exception Courtenay, Comox, Campbell River
– Kamloops, Vernon, Penticton, Kelowna,
& Salmon Arm (major city center)
–Sunshine Coast (namely Gibsons,
Roberts Creek & Sechelt)
– Greater Calgary area (namely Cochrane,
Airdrie & Okotoks)
– Greater Edmonton area (Namely St.
Albert, Spruce Grove & Sherwood Park)
– Red Deer
– Medicine Hat
• we are a custom solution provider, and
therefore other areas outside of the main
areas may be considered on an exception
14 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
product type loan submission/inquiry rate fee structure
• all forms of mortgages including partial Please send all inquiries to Graham Sawrey • We have exceptional rates
interest mortgages via email (or fax if necessary) – 1st mortgages starting at 6.00%
firstname.lastname@example.org – 2nd mortgages starting at 8.50%
– We typically lend up to a total LTV of 75%
• brokerage fees are always negotiable.
We aim to satisfy both you and your
• 1st, 2nd, 3rd • Filogix • deals are priced based on property type,
• blanket • email@example.com location and LTV
• bridge • call Jared (BDO) 1 888 554 9075 ext 228 • rates start at 6.99%
• construction • toll free fax 1-888-240-9087 • fees from 2%. Your broker fee on top.
• interest only or 25 year amortisation
• up to 85% LTV
• 1-3 Year Terms – Fully amortized Submit Deals via Expert/Fax or Email at Typical rates (at June 10) start at:
up to 35 years firstname.lastname@example.org • 1st mortgages 6.99% + 1% lender fee
• interest only payments available • 2nd mortgages 9.00%+ 1.5% lender fee
• open and closed terms • fee structures will vary from deal to deal
• 1st and 2nd mortgages up to 75% LTV • broker fees are priced separately
• construction to 75% of completed value
• 1st , 2nd, and 3rd mortgages We’re a very accessible lender. Deals can • we offer custom rates for custom solutions
• bridge financing be submitted via Expert, email or fax. Not • fees are not necessarily tied to rates,
• construction mortgages sure if your deal will fly? Feel free to call and are always tailored & split with the
• Inter Alia mortgages and run by the scenario – we can let you involvement of the referring broker
know if we will be able to assist you.
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 15
CREATIVE LENDING (CONTINUED)
lender niche market geographic area
consuMers choice • specialize in houses, townhouses, condos. • mainly Lower Mainland and
• up to 75% LVR on rentals and 80% LVR Vancouver Island
on owner occupied if the real estate is • secondary the Gulf Islands , Sunshine
marketable and the clients have a decent Coast, Kelowna and Penticton
• we are not beacon score driven, but look
more closely at the overall credit history
• occasionly bare land and commercial
deals with lower LTV
cove Mortgage ltd. Cove offers mortgage solutions on nearly • all of British Columbia
every property type in British Columbia.
These solutions do not exist elsewhere
in the market due to the challenge of the
clients credit, limited income proof, the
property type or the requirement for the
file to fund quickly.
drake financial • interest only 1 year terms • Lower Mainland, Vancouver Island,
services ltd. • residential & small commercial equity Sunshine Coast, Kelowna, Penticton,
loans Vernon, Kamloops, Prince George
• purchases, refinances and construction • other areas on exception
first circle • residential and small commercial • Lower Mainland – Hope through
construction financing Pemberton (and slightly beyond)
• residential equity based sub-prime loans • Okanagan corridor (Osoyoos through
• small commercial Vernon)
• serviced land and land development • Kamloops
financing • Southern Vancouver Island (north to
• Sunshine Coast (north to Pender Harbour)
• Some Gulf Islands
fisgard capital Fisgard has a broad range of financing • Western Canada (BC, Alberta)
corporation products ranging from just outside the
conventional lending box residential
mortgages to 75% starting at 6.99% to
complex commercial and construction
financings. Common sense creative
lending at it's finest!
16 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
product type loan submission/inquiry rate fee structure
• 1st and 2nd mortgages • call us to discuss, or send us an e-mail • Second mortgages 10% to 12%
• 3rd position if the 1st and 2nd mortgages giving us the basics of the deal • First mortgages 8% to 10%
are with the same lender • submitting the deal can be done via • On occasion lower cost funds may be
• we do not have funds available for attachments to e-mails available
construction draw mortgages – email@example.com or • No lender fee for standard 1 year closed
– firstname.lastname@example.org or mortgage
– fax 604-541-7320 • Broker fee negotiable and split with
• phone Cathy Swallow 604-541-7301 or referring broker
Darryl Swallow 604-541-7303
• deal can also be co-brokered to Darryl
Swallow or Cathy Swallow on Filogix
• 1st, 2nd, 3rd mortgages up to 80% LTV • Filogix: under private lender Cove Mortgage • 1st mortgages from 6.95% with a 2-3% fee
• financing from $25,000 up to $2 million • email: email@example.com • 2nd mortgages from 9.95% with a 3-4% fee
• interest only payments • fax: (604) 929-9592 • 1 year term
• residential • Christine Perkins BDM Mainland, BC
• commercial phone: 778-988-8940
• construction • Ross Elliot BDM Vancouver Island, BC
• bridge financing phone: 250-480-9566
• Inter Alia • www.covemortgage.com/forbrokers.html
• partial interest for more information
• ¼ and ½ share
• debt consolidation
• 1st and 2nd mortgages up to 75% LTV • Fax: 604-852-4717 • typical rates are 12%
• email: firstname.lastname@example.org • fee split of 50/50 with originating broker
• 1st and larger second mortgages • E-mail: email@example.com or • flexible pricing depending on the quality
• loan size - $50,000 to $2 million firstname.lastname@example.org of the loan application
• 75% LTV max • Fax: 604-986-3201 • first mortgages from 6.95%
• construction • interest only payments
• interim financing • usually a 2.0% fee (split with the broker)
• Inter Alia mortgages (multiple properties) • 1 – 2 year terms
• residential • via Expert or by email. • residential rates start at 6.99%
• commercial Please go to www.fisgardmortgage.com • lender fees typically 1%.
• equity for more information • rates and fees for commercial and
• bridge construction vary from deal to deal
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 17
CREATIVE LENDING (CONTINUED)
lender niche market geographic area
interior equities corp. • residential 1st mortgages • Okanagan Valley from Osoyoos in the
– completed and occupied south to Salmon Arm in the north
• small raw land assemblies/developments • selected areas in the Kootenays:
to subdivisions – Nelson, Castlegar, Trail, Grand Forks,
• commercial properties with leased space and Christina Lake
• smaller construction projects •Vancouver Island – larger urban centres
• equity lending to 75%
A Mortgage Investment Corporation
– Since 1982 –
instafund financial • single and multi family residential • all Lower mainland from Whistler to
services (2000) ltd. • rental and revenue properties Chilliwack
• commercial and mixed use
• land, subdivision, assemblies
• complex structured financing
intregrity Mortgage inc. • residential and commercial • Vancouver CMA and southern BC
– we prefer deals that just fall short of • Vancouver Island
bankable guidelines – populations of 10,000 plus please
kee West financial group • 2nd mortgages for apartment buildings, • major centres in BC, Alberta,
townhomes and/or condo developments Saskatchewan and the Maritimes
• 1st mortgages for any type of multi- • USA
residential and/or commercial revenue • Mexico
• 1st mortgages on raw land in select areas
• inventory loans for builders
• draw construction 1st mortgages
kensington realfund corp. • residential • Vancouver Island specialists
• raw land • also lend from Whistler to Chilliwack
• some commercial
18 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
product type loan submission/inquiry rate fee structure
• 1st & 2nd residential • phone: 250-763-1245 • quoted on website
• 1st commercial & raw land • fax: 250-763-7765 (www.interiorequities.com)
• Inter Alia mortgages • toll free phone: 1-800-663-1575 • brokerage fees are typically a minimum of
• construction loans – James Ramsay (ext. 204) 2% and are split with the originating broker
email@example.com • lender fee of 1% for non-residential loans
– Doug Finlay (ext. 226)
– Richard Sherwood (ext. 205)
• loans are customized and we encourage
input from referring brokers regarding loan
structure and pricing
• email/ phone inquiry for a prompt response
Funds are always available!
• equity only, no debt service or • Email: We sharpen our pencil on every deal to
credit required – Adam Korbin firstname.lastname@example.org help brokers close more deals.
• 1st, 2nd 3rd and Inter Alia mortgages – Chris Delisle email@example.com • rates from P+4%
• large loans amounts $50,000 to $5 million • phone 604-687-2020 • lender fee from 2%
• broker fee from 1%
• 1st mortgages preferred • contact us first to discuss All deals are looked at case by case. Our
• 2nd mortgages • email: Kim Strynadka - firstname.lastname@example.org or stand is; if you would lend your own money
• rarely 3rd mortgages • fax: 866-298-2071 on a deal, chances are, so would we. We
We like clean deals where client can prove • phone: 877-729-3890 like them clean and price it accordingly.
ability to pay and there is an out strategy We ask what the Broker wants to be paid
and then, we do a fee split.
• 1st or 2nd mortgages The best way to start the process is to Determined on a deal by deal basis
• bridge mortgages phone Lorne Keetbaas 403-680-6716. If
• construction/draw mortgages he likes the deal, the next step is to send
• interim mortgages him an Executive Summary outlining the
• blanket mortgages with individual client's name, security, collateral security,
discharge provisions location, how much is required, reason for
request, exit strategy, proposed pricing and
details of the proposal to email@example.com
• 1st mortgages Contact us directly to submit loan inquiries. • fee structure is 1% to the Lender
• 2nd mortgages Call Margaret at 250-752-6944. • 50/50 brokerage fee split
• construction mortgages
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 19
CREATIVE LENDING (CONTINUED)
lender niche market geographic area
lanyard group • low cost lender outside the • all major metropolitan centers within
bank guidelines British Columbia
– lend against most classes of income • greater Edmonton and greater Calgary
producing property types within Alberta
– condo inventory (very competitive rates
up to 65% loan to value)
Mountain city Mortgage • residential BFS/no credit/foreclosure • all of BC, from Metro Vancouver to the
corporation • for purchase/ETO/debt consolidation rural properties outside of small towns
nexus investMent • raw land selectively • all over Canada
corporation • commercial deals only
optiMuM Mortgage • N.I.Q. mortgages up to 80% LTV, minimum • within 50 km of communities with
500 beacon (2nds allowed to 90%) populations > 100,000
• owner-occupied and revenue properties • within 10 km of communities with
• purchase, refinance, bridge, Inter Alia populations between 25,000 and 100,000
• minimum 10% downpayment, with • within a community with populations
consideration given to gifted downpay- between 10,000 and 25,000
ments and vendor takebacks
• consumer-friendly (call for details)
• 5-year variable rate, open, and 1-5 year
• up to 35-year amortization
pacifica Mortgage At Pacifica we have a “common sense” • Greater Vancouver and large urban
investMent corporation approach to private lending. All of our centers throughout BC and Alberta
mortgages are open for prepayment
at anytime without a penalty, and our
payments are interest only. We have the
ability to fund loans up to $10,000,000.
Our maximum loan to value is 75% and
our typical turnaround time to commit-
ment or letter of interest is 24 hours
20 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
product type loan submission/inquiry rate fee structure
• fixed rate interest only mortgages • phone 604-688-5388 or • interest rates range between 6% - 9%
• bridge loans (1 year term with 1 year • email Mike Saba at depending on the asset class
extension option) firstname.lastname@example.org. • lender fees start at 1% depending on the
• all loans are open subject to 6 months asset class and loan amount
minimum interest on the loan
• flexible discharge provisions for
• low private rate 1st/2nd/3rd • phone 1-888-685-6181 or • case by case, but often no lender fee.
• 6 month/12 month/ 24 month • email email@example.com, or • split broker fees 50/50
• interest only or interest and principal firstname.lastname@example.org • private 1sts run from 7% – 10%, 2nds
• low/no penalty early payout can be arranged from 9% – 15%, depending on location/risk
• broker fees run from 1 – 5 pts most times.
• bridge financing • call first 604-664-7079 and then by email • fees depend on the deal but do not include
• selective 2nd mortgages email@example.com the brokers fee
• no 3rd mortgages
• minimum 10% downpayment, with • contact our local BDO • rates posted at www.OptimumMortgage.ca
consideration given to gifted downpay- – Interior BC: Matthew Scaife, (rate offered may be higher/lower subject
ments and vendor takebacks 250-212-3763, firstname.lastname@example.org to application)
• consumer friendly (call for details) – Lower Mainland/Vancouver Island: • referral fees paid on a weekly basis
• 1st mortgages up to 80%, 2nd mortgages Jackie Matthew, 604-317-4027, • N.I.Q. products:
allowed up to 90% LTV email@example.com – 1 or 2 year: 50 BPS
• purchase, refinance, bridge, Inter Alia • Filogix: Optimum Mortgage – 3 or 4 year: 90 BPS
• owner-occupied and revenue property • email documents: mortgagedocuments@ – 5 year (fixed or variable): 100 BPS
mortgages cwbank.com – 1 year open: 2% fee split with the broker
• N.I.Q. up to maximum 80% LTV, • fax: 866-477-8897
minimum beacon 500 • underwriters: 866-441-3775
• N.I.Q. 5 year variable rate, open,
and 1–5 year fixed terms
• up to 35-year amortization
• 1st and 2nd mortgages on residential and Call Sidney Rubin @ 604-899-3788 or • 1st mortgages starting from 6.99%
commercial properties Shannon Hillman @ 604-899-3780 • 2nd mortgages starting from 8.99%
• Inter Alia mortgages • fees starting from 1%
• bridge financing
• inventory loans
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 21
CREATIVE LENDING (CONTINUED)
lender niche market geographic area
paradigM Mortgage • residential • BC only
corporation • commercial – Okanagan Valley
• raw land – Fraser Valley
• development – eastern suburbs of Vancouver
• construction – Kamloops and Shuswap region
– selected urban Vancouver Island locations
• we will consider other areas if the file
peoples trust • equity based common sense lending • Greater Vancouver Area
(we are a “near-private” traditional equity – Lower Mainland and Fraser Valley
lender offering conventional 1st mortgages • southern Vancouver Island
to clients with difficulty proving income • Okanagan centres
and requiring credit repair) • Kamloops
• private type loans at lower rates
• non-income qualifying equity mortgages
• credit repair equity mortgages
• high value equity mortgages
(up to $ 2 million financing)
• acreage and “hobby” farm loans
• equity construction financing for builders
• inventory loans for builders
• no beacon lending
phl capital corp. • single and multi family residential • Metro Vancouver
(including construction) • Fraser Valley
• raw land purchase
• land development
• all types commercial properties
preMiere Mortgage • common sense private lending – approvals • British Columbia
based on EQUITY, not income or credit – Urban Centers - Up to 75% LTV
• lending on all forms of residential real – Small Town/Rural – Up to 65% LTV
estate; including farms, acreages, raw land • Alberta
and mobile homes in parks – Urban Centers - Up to 85% LTV
• we can deal with collections, judgments, – Small Town/Rural – Up to 65% LTV
bankruptcies – even foreclosures • Manitoba
• virtually immediate approvals through – Winnipeg - Up to 85% LTV
our own $57 million M.I.C. – Premiere – Brandon – Up to 75% LTV
Canadian Mortgage Corp.
• also have access to a large pool of
private investor partners – able to cater to
most private mortgage needs
• specialists in private mortgages for 25 years
22 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
product type loan submission/inquiry rate fee structure
• 1st and 2nd mortgages • email to firstname.lastname@example.org and • recent rates range 7.89% on 1st – 12.95%
– residential email@example.com on 2nd mortages
– commercial • phone 250-979-2911 to discuss potential • each deal is unique and priced accordingly
– development submissions • referring broker chooses broker fee which
– construction is split 50/50 with us
– bridge financing • typically we see fees in the 2-4% range,
– land loans higher depending on transaction,
– Inter Alia – 2% min. on residential
– 3% min. on construction/development files
• lender bonuses charged on open terms only
• 1st mortgage loans • James: JamesP@peoplestrust.com or • rates start at about 6% for a 1 open or
• purchases, refinances and equity take-outs phone toll free at 1-877-855-9750 closed or 2 year closed mortgage
• Inter Alia • Tom: TomW@peoplestrust.com or • most commonly we charge a 2% fee that
• bridge financing phone 604-331-2210 to discuss we split with the broker
• construction financing • fax: 604-683-2787
• rental properties
• apartment loans
• financing for non-residents and
• private 1st and 2nd mortgages (including • Parm Purewall: • 1st mortgages: 9 – 11%
bridge and construction) – email: firstname.lastname@example.org • 2nd mortgages: 12 – 14%
– phone: 604-710-9525 • fees: 1%
• Steve Ponte: • broker fees charged separately by
– email: email@example.com the broker
– phone: 604-727-3670
• 1st, 2nd & 3rd mortgages available • please submit your mortgage proposals to • Preferred Pricing Program:
• purchases, refinance or equity take outs us by email or fax – applicable on mortgages approved by our fund
– funding available for virtually any purpose • if you have a deal to review – just call us – exceptional mortgage rates - start at 5.9%
• no beacon score requirements • contact information: – on urban 1sts approved by our fund – no
• terms for 1 – 5 years available – email: firstname.lastname@example.org fee split - you add your fees and keep 100%
• rate/fee buy-downs options available – toll free phone: 1-866-460-4409 – premiere fee is 1% +$350 administration
• flexible terms and payment options: – toll free fax: 1-877-600-3362 fee - rate/fee buy-downs options available
– rates/program guidelines at www.mort-
– interest only payments
– prepaid mortgages
• Alternate Funding Program:
– interest accrual mortgages – access to large pool of private lender
– open mortgage terms partners for all types of private lending
– Inter Alia mortgages – aggressive funding sources for tough deals
– work with you on co-broker basis – fees/
costs reviewed in advance.
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 23
CREATIVE LENDING (CONTINUED)
lender niche market geographic area
reliable Mortgages inc. • application to funding done same day • Lower Mainland
• line of credit mortgages—don’t pay – from Pemberton to Hope and all in
interest on unused funds & readvanceable between
• lend behind re-advanceable first
mortgages and liens
• every mortgage we do is OPEN (no
penalties to payout or pay down)
• non-residents okay, can sign abroad or
• properties in a company name (versus
personal names) are accepted
• pre-sales: we lend on current appraised
value, not purchase price
• deal directly with the decision makers,
it’s all our own money
secure Mortgage For our private lending products, we target We prefer the Greater Vancouver area and
group ltd. debt consolidations to assist with credit Vancouver Island (from Courtney south),
repair for our clients and recently, with but will consider other areas on an
the changes to self-employed products exception basis.
we are offering seconds to top up conven-
tional first mortgages. We prefer owner
occupied properties, but we will look at
rentals, commercial buildings whatever
vWr • specialty is to provide private mortgage • primary geographic lending area in
loans for single family homes, condo's and BC includes southern Vancouver Island,
town homes the Lower Mainland, the Fraser Valley,
• we will consider financing some service Kamloops, and the Okanagan Valley
building lots and raw parcels (Pentiction, Kelowna and Vernon)
• prefer residential zoned properties • Alberta, we lend in Calgary, Edmonton,
• rentals Red Deer, Lethbridge and Medicine Hat
• acreages, hobby farms • Manitoba (2011)
• we will do larger 1sts • other areas considered subject to LTV
• foreclosures at reduced LTV
24 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
product type loan submission/inquiry rate fee structure
• 1st, 2nd, 3rd, 4th (residential and small • call first to discuss – we’ll give you a • lend to 75% on most properties, up to
commercial), interest only quick yes or no 604-214-5626(LOAN) 80% on good credit
• houses, lots, rentals, condos, vacation • then, either email or fax us the details • rate depends on 1st, 2nd etc., credit
homes etc. • email rating, location, property condition
• Inter Alias, bridge financing, construction – Dale Matthysen, email@example.com • fees – we generally charge 2.5% and
(unlimited draws), ½ interest mortgages, – Jessica Whyte, firstname.lastname@example.org originating broker receives 2.5%
lending to estate, co-ops, leasehold • fax: 604-214-5625
• foreclosures (previous or current) &
• can register behind life estate or family
• we do not look at debt servicing, no job
letters or NOA required
• residential first and second mortgages • Morweb • rates go from 8.5% – 13.5% depending
• Inter Alia • Filogix on mortgage position and LTV
• bridge financing • email: email@example.com • fees normally run between 2 – 4%,
• fax: 604-523-6794 including the lender and our broker fee
• phone: 604-523-6797 • additional fees can be added for the
• 1st, 2nd & 3rd mortgage financing up to a • email: firstname.lastname@example.org • 9.75% interest rate on 1st mortgages
maximum 75% loan valuation • fax: 604-514-0085 • 12.00% – 12.75% on 2nd mortgages
• interim or bridge mortgage loans • toll free fax: 877-291-7582 • terms are for a 1 year closed mortgage
• open product available • all deals are unique, please call to • partial and fully open mortgages available
• Inter Alia discuss, phone: 604-530-7430 or toll free: at an additional cost of 1 point for partial
• open or closed 1-877-907-5407 open and 2 points for fully open
• interest only or extended amortization • brokers negotiate their own compensation
with their client. We request that they cap
their fees at 4 points unless an exemption is
approved by us.
• ·$500 administration fee to VWR on funding
• rate buy downs always available
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 25
calendar of events 2010–2011
Charity Golf Tournament Sept. 13 Northview Golf Course, Surrey
benefitting BC Children's Hospital
OCTOBER – MORTGAGE MONTH: WATCH fOR DETAILS ON HOW TO PARTICIPATE
Professional Development Seminar Oct. 19 Kelowna
Oct. 20 Vancouver
Oct. 21 Victoria
Applied Information Course Nov. 4–5 TBA
2011 Conference and Trade Show March 15–16 Vancouver
The MBABC Board meets monthly at the World Trade Centre, Vancouver. For further information, please go to www.mbabc.ca
“Trusted for Service - Respected for Results”
Serving BRITISH COLUMBIA and ALBERTA
since 1982, we pride ourselves on the attentive
service we give to our clients, You!
CREATIVE SOLUTIONS • NO NONSENSE COMMITMENTS • COMMON SENSE LENDING • FLEXIBLE RATES
We can offer your clients 1st and 2nd Private Mortgage Funds up to 75% LTV
Contact Us Today for a Customized Solution
Head Office: #101-19909 64th Avenue, Langley, BC, V2Y 1G9
Gord Wintrup : 604-533-4478 or 1-888-918-3388
26 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
Built right in.
The ResMor Broker Achievement Program
We understand what you need to succeed and
we’ve designed a Broker Achievement Program that
will help you meet your goals faster. We offer four
status levels that provide you with direct compensation
and opportunities to buy down the rate for your clients.
That means no limit to your success.
Standard Premier Elite Super Elite
Term 5 Yr. 5 Yr. 5 Yr. 5 Yr.
Fixed/ARM Fixed/ARM Fixed/ARM Fixed/ARM
Base Incentive 105 bps 105 bps 105 bps 105 bps
Preferred Broker 0 bps 10 bps 15 bps 25 bps
Total Incentive 105 bps 115 bps 120 bps 130 bps
Rate Discount N/A N/A 5 bps 10 bps
Call your ResMor Business
Development Manager today.
Island & Interior Lower Mainland
Tania Hatcher, AMP Sach Desai, BSC AMP
Business Development Manager Business Development Manager
Ofﬁce 250-478-3557 Ofﬁce 604-687-6901
Toll-Free 877-818-3884 Toll-Free 877-328-6901
Cell 250-818-3884 Cell 604-328-6901
Fax 250-478-4338 Fax 866-854-1638
Email email@example.com Email firstname.lastname@example.org
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 27
INVIS AND MORTGAGE INTELLIGENCE
Celebrating 10 Years of Industry Leadership
At Invis and Mortgage Intelligence we lead the Canadian mortgage brokerage industry in volume,
volume per agent and income per agent, as noted by Filogix.
While it’s great to be #1, we’re working hard to stay #1.
Whether they’ve been with us 10 months or 10 years, our brokers receive unparalleled backing – efﬁcient
weekly payroll, the industry’s best compliance, expert deal support, free customized marketing, competitive
compensation, a great corporate culture, the list goes on and on…
In short, we’re all about real support from real people. We really enjoy what we do – helping our brokers
achieve greater success.
Now that’s something to celebrate!
Learn more about joining our broker teams at www.invis.ca & www.bettersupportcanbeyours.com
Head Ofﬁce: 5770 Hurontario Street, Mississauga, ON L5R 3G5. Invis FSCO 10801 | MI FSCO 10428.
28 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
A decade of Broker Excellence
2010 marks the 10th anniversary of both Invis and Mortgage Intelligence. The celebrations come as
Invis and MI lead the Canadian mortgage brokerage industry in production volume, as noted by Filogix.
A mong major brokerages, Invis and MI are not only num-
ber one in total mortgage volume, they also lead
the pack when it comes to volume per broker.
“These results conﬁrm our status as the preferred home for
Canada’s most professional, dedicated mortgage brokers,”
says Gord Dahlen, President and CEO of Invis and MI.
Invis and MI have distinguished themselves with a full value
offering to brokers. “Whether they’ve been with us 10 months or
10 years, our brokers receive a line-up of support services that
add up to solid value for today’s time-stressed mortgage profes-
sional wanting to take their business to the next level,” observes
Bryan Devries, EVP of Sales and Operations.
“Real support from real people” is how Dahlen sums it up,
noting that brokers can literally pick up the phone and talk to
Some of the faces of Invis and MI through the years (clockwise from top left):
the company’s in-house team to get assistance quickly. “The Gord Dahlen, Rich Oenema, Rob Hafer, Andrew Moor, Liz Hynes;
support we offer is more than a self-serve arrangement with Art Trojan; Ilona Bronson; Stan Falkowski; Patrick Mulhern; Annie
a third party – we invest in our brokers to equip them to be and Dieter Peschman.
the best, which beneﬁts our brokers, our company and our
industry,” asserts Dahlen.
Real Support from Real People A Proud Heritage
“While it’s great to be #1,” says Dahlen, “we’re working hard “In many ways, our continued success is the fulﬁlment of
to stay #1.” Here’s a sampling of the beneﬁts that Invis and the vision of our early founding entrepreneurs including Art
MI deliver, to stay at the forefront of the industry: Trojan at Norlite and MI, and Dave Nichol at Invis,” comments
Efﬁcient Weekly Payroll – Prompt and accurate payroll via Stan Falkowski, SVP, who has been with MI since the begin-
weekly direct deposit, a real time saver for busy brokers. ning. “Fast forward to ten
Experienced Regional Managers – Full time professionals years later, and many of our Whether they’ve been with
who offer knowledgeable advice on tough deals, business brokers have remained with
us 10 months or 10 years, our
planning, and reaching out to clients and referrals. us from the start. It’s a loy-
Free Customized Marketing – Hundreds of templates, alty that speaks volumes.” brokers receive a line-up of
professional graphic designers and copywriters, and expert support services that add up
marketing advice. to solid value. . .
Effective CRM Programs – State-of-the-art CRM programs Mortgage Brokering:
to keep in touch with clients: professionally, automatically, It’s a Team Sport
and with zero effort. Invis and MI have lively company cultures that celebrate ex-
Compliance Support – “We offer the industry’s best compli- cellence. Brokers have a strong voice, and feel part of a cohe-
ance support, to protect our brokers’ reputations in our com- sive group of professionals who share ideas and information.
munities and our industry,” notes Dahlen. “We work for the broker,” asserts Dahlen. “We believe in
Exclusive In-House Offerings – Great commissions, and them. We worry about them, we care about them. No one
ongoing trailers as an option, on private label mortgages, else in our industry holds the broker in such high regard.
leasing and insurance products. These are values that permeate the cultures at Invis and MI.”
Prompt I.T. Support – Knowledgeable and friendly I.T. ex- At a variety of team-building and social events for the
perts to keep core systems up and running. rest of 2010, Invis and MI brokers will celebrate a job well
Submission Desks – Easy, preferred access to a range of done for the last 10 years. They’ll also look forward to
key lenders; enjoy top-tier compensation on every deal. another great decade as they work hard to grow their busi-
Competitive Compensation – Earn top dollar on every ﬁle: nesses with Invis and MI, and have a good time together
highly competitive ﬁnders fees and volume bonuses our while doing it.
lenders offer, even on the ﬁrst deal.
A Clear-Cut Contract – No restrictive contracts, like ones that
lock a broker in for a multi-year term, contain non-solicitation
clauses, or even charge high monthly fees for advertising.
Y E A RS
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 29
GOODBYE TO JACK OYHENART
Dominion Lending Centres is mourning the sudden passing of 56-year-old Jack Oyhenart, broker/owner of Dominion Lending
Centres Aegis Mortgage Services based in Richmond, BC, on Monday, May 31st. Jack was well respected and much admired
in the Canadian mortgage brokering realm, with close to four decades of mortgage-related experience – 31 in banking and
eight in brokering. Jack’s two sons and daughter – Kevyn, Chad and Alana – followed in their dad’s footsteps and became
licensed mortgage brokers. Kevyn and Chad will carry on Jack’s legacy as joint owners of DLC Aegis. Jack also leaves
behind his adoring wife of 35 years, Grace, and a third son, Jayme. If you knew Jack and wish to send a private e-mail with
a fond memory or condolences to his family, you can do so at: email@example.com
2010 BC SUMMER GAMES APPOINTMENT
Michael McIvor has been appointed as chair of cycling events for the 2010 BC Summer games. He is looking for volunteers
in all three cycling venues: road, BMX, and cyclocross.
If you would like to volunteer please send Michael an email: firstname.lastname@example.org. Volunteers can also
sign up on Michael’s site at www.michaelmcivor.com under the events section.
DOMINION LENDING CENTRES WINS 5 CMP AWARDS
Dominion Lending Centres was honoured to take home five prestigious national awards at the 4th Annual CMP Cana-
dian Mortgage Awards on Friday, April 23rd at Toronto's Liberty Grand. DLC won top prize for the coveted Mortgage
Brokerage of the Year, Best Branding and Best Advertising awards. DLC broker/owner Gary Meger, Neighbourhood
Dominion Lending Centres in Barrie, ON, won Mortgage Broker of the Year, and the Business Development Manager
for DLC’s branded white label Dominion Mortgage line of products, Cynthia Kramer, won Lender BDM of the Year. DLC had a total of
13 nominations for this year’s awards.
“We are absolutely honoured that our industry peers and partners, as well as an esteemed panel of judges recognized Dominion Lending
Centres with these incredible awards,” says Gary Mauris, President of Dominion Lending Centres.
PAUL STAPLEY, DLC COASTAL MORTGAGES IN CAMPBELL RIVER GIVES BACK TO THE COMMUNITY
Paul Stapley, DLC Coastal Mortgages in Campbell River coached his Hockey Team to a BC Championship while achieving
an unbelievable game record of 49-1-3 (49 wins, 1 loss & 3 ties). They are hometown hero’s in Campbell River. For this feat
and team was recently given the key to the city from the Mayor! A great story of a broker giving back to his community with
tremendous success. Accompanying picture is of the Campbell River Pee Wee AAA Rep team. They won 4 tournaments, the
Vancouver Island Tier 1 League and the Vancouver Island Tier 2 Play Offs plus the BC Tier 2 Provincial Championship.
OPTIMUM MORTGAGE APPOINTMENT
Optimum Mortgage is pleased to welcome Jackie Matthew as their Mortgage Development Manager for the Lower Mainland.
Call Jackie today at 604-317-4027.
HOME TRUST ExPANDS ALTERNATIVE PRODUCT SUITE IN WESTERN CANADA
Home Trust recently expanded their Classic Program in British Columbia and Alberta. Home Trust’s Classic
products offer alternative lending for client’s seeking flexible financial solutions with loan to values up to
80% on purchases and 75% on refinances. ‘We hope this expansion shows our Western Canadian brokers
that we are here to serve all of their needs, both with our insured Accelerator products and our alternative Classic program, making us their
‘One-Stop’ mortgage lender.’ comments Ron Cuadra, Vice President National Sales.
VERICO REGIONAL DAYS
VERICO Canada is fresh off a very successful Regional Days tour across Canada. VERICO held sessions in
Vancouver, Calgary, Winnipeg, Toronto and Halifax for our Verico members and agents. The goal of VERICO
Regional Days was to connect with members, share business building information, present tools for business growth and present our
exclusive VERICO Coaching program – which provided real life examples members could apply to their business the next day.
30 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
PETER KINCH WRITES fIRST SOLO BOOK
Peter Kinch’s first solo book, The Canadian Real Estate Action Plan: Proven Investment Strategies to Kick-Start and Build
Your Portfolio, became available online and in bookstores across Canada in June. Kinch, broker/owner of Dominion Lending
Centres Peter Kinch Mortgage Team, was named Canada’s top volume-producing mortgage broker on the 2009 CMP Top 50
Brokers list, and has helped thousands of Canadian investors clarify their dreams and turn them into reality. In the book, Kinch
walks readers through building a three-phase action plan to develop a real estate portfolio, by starting with the end result in
mind. The result is a goal-focused approach to buying real estate with confidence and clarity. A portion of the author royalties
from sales of The Canadian Real Estate Action Plan will be donated to Habitat for Humanity Canada.
INVIS AND MORTGAGE INTELLIGENCE CELEBRATE 10TH ANNIVERSARY
This year marks the 10th anniversary of both Invis and Mortgage Intelligence. Invis began in Langley, BC in the summer of
2000 and has grown by leaps and bounds along with the mortgage brokerage industry in the province. “While the industry
has changed a lot in the last decade, at Invis one thing hasn’t changed: we support our brokers with a line up of solid services
that help them operate and expand their businesses,” comments Gord Dahlen, President and CEO. MI is also celebrating
10 years, and like Invis, has built a loyal following among brokers, many of whom have been with the company for the full decade.
HLC HOME LOANS CANADA APPOINTS NEW PRESIDENT
Mark Moreau, new president of HLC Home Loans Canada. With over 28 years of experience in the Canadian financial services
marketplace Mark Moreau has held various positions including that of President of Mortgage Intelligence (MI). During his
tenure at MI, the company was the largest national brokerage by volume in the nation. Mark helped to achieve this by providing
leadership to the organization and oversight of the eventual sale of MI. His experience in Credit/Mortgage operations and sales
organization leadership will help to build and grow the reputation of HLC Home Loans Canada into a leader in the mortgage
brokerage market. HLC Home Loans Canada welcomes Mark to the team.
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 31
COVE The name you’ve trusted for 33 years
when you want to get the deal done.
We see ways to make
the deal work that
Cove Mortgage Ltd. is a
private lender with access others miss!
to our own funds. We oﬀer
customized mortgage solutions • Consistently reliable
on nearly EVERY property type
in BC from 25k to $2 million.
• Extremely fast
1st, 2nd & 3rd mortgages available • Common sense
up to 80% LTV.
Business Development Managers est. 1976
Christine Perkins Mainland, BC Phone: 778-988-8940 Email: email@example.com
Ross Elliot Vancouver Island, BC Phone: 250-480-9566 Email: firstname.lastname@example.org
Head Oﬃce (North Vancouver, BC) Phone: 604-929-8156 or toll free 1-888-929-8156
Toll Free: 1-866-907-5407
• Reasonable Rates
• 24 hour approvals
• Funds available throughout British Columbia and Alberta
• Purchases, refinances or equity takeouts
• No income qualification necessary
“Your Private Mortgage Solution”
DOUGAL SHEWAN DON KILLEEN LINDA WESTON
Phone: 604-351-2509 Phone: 604-308-0591 Phone: 604-530-7430
email@example.com firstname.lastname@example.org email@example.com
#111 - 20434 - 64th Avenue, Langley, BC V2Y 1N4
32 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
MEMBER PROfILE: KIM STRYNADKA
MY BEST PRACTICE: WHAT MAKES ME SUCCESSfUL
I try to live and work by a few rules. Only enter into business relationships that are win/win.
Focus on quality rather than quantity. Do what is right for the client`s long term goals and
the money will follow. Don't try to fit a square peg into a round hole; instead, find a square
hole. Do it, Delegate it or Dump it!
And of course, Do unto others.
These simple, but important philosophies keep me on target with my goals, in all areas of my life.
As an organization, we collectively share these values; it is what makes us extraordinary.
BIGGEST CHALLENGE MORTGAGE BROKERS fACE TODAY
For us, it is staying Independent. Let's use a coffee analogy. I like to think of Integrity
Mortgage Inc. like the small, intimate coffee shop that everyone feels at home in, and catered
to. At this point, adopting the Starbucks umbrella is not in our business plan. It won't add
value to what we do.
Like I said, everyone in our organization shares the same goals and values. We believe in
Quality of business over quantity. We balance our lives between work and family, and are
committed to being there to support each other. We believe that being a "Broker" is not
what defines us. It is what allows us have a wonderful quality of life. To this end, we relish
(continued on page 35)
Kim Strynadka, AMP
Integrity Mortgage Inc.
Toll Free: 1.877.729.3890
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 33
34 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
(Kim: continued from page 33) ALTERNATE EQUITY
However, there will always be challenges in staying independent. I recall 3 years ago when LENDING
one of the banks 'cut me off' because I wouldn't commit to 5 million in business; when I
brought up the subject of closing ratios, they didn't care. At this point I went out and found
a number of Lender partners who were not volume based and not volume bonus based. It
didn`t hurt us at all. I am glad I stuck with my business plan because `closing ratios` did
end up evolving into an important criteria for Broker partners. Ironically, we are now one
of their Preferred Brokers because we have awesome closing ratios. & STILL GOING STRONG
New challenges will continue be an exciting and interesting part of this business. Thank
goodness "Challenge" is my favourite word.
WHAT DO I fIND IMPORTANT ABOUT THE MBABC
We rely heavily on MBABC to support us and keep us informed on the big picture; educa-
• Non-Income Qualifying
tional opportunities, ethical guidance and professional representation. • Rental Properties
When I first began in this business, I was skeptical about how it could benefit me. I quickly • Credit Repair
changed my mind after my first event. I met so many colleagues who I continue to have • Inventory Lending
profound relationships with to this day. As a Private Lender, I have met and maintained
relationships with a few very solid B.C. based Mortgage Brokers who send me all of their
Every event brings new information and people to my world. I especially love meeting
Underwriters and Managers (people who I talk with all the time on the phone) and finally rwrit
get to meet in person. Unde d on
PROfESSIONAL OR PERSONAL ACCOMPLISHMENTS base ommon
Being a Dale Carnegie Trainer is one of my most important accomplishments in life. I always ty an e!!
say that taking the course puts one ahead 2 years in their career. That means that every time I
facilitate the course, I reap this benefit as well. It has helped me become the confident leader
I need to be. When I bring these skills to my organization; I get to fulfill my life`s purpose
and support our Broker Partners to be world class Brokers.
I am dedicated to continuous improvement and life long learning. This business certainly Give us a call
offers me the opportunity to challenge myself and to learn something new every day.
fAVORITE PLACE TO NETWORK
Since my free time is so limited, I prefer to mix networking with my recreational activities. 1.877.855.9750 (toll free)
The Golf Course, baseball, water sports or salsa dancing, to name a few. Where ever I am
having fun with like-minded people is where I am going to sell myself the best anyway. I
don't run around and announce what I do, but I am so passionate about mortgages, helping
people, and mortgage strategies; that when someone asks, look out! With common interests Tom Wollner
and some trust established; 9 out of 10 of these conversations, turns into great business.
See, Always looking for that Win Win. firstname.lastname@example.org
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 35
Q concerned about this.is on having your credit checked multiple times? Clients are
What your opinion
A you have a genuineavoid applying for credit andconsumers with a lotreport checked
Our advice is to having your credit
unless need for credit. The risk to of activity on
their credit report over a short period of time is that a lender may interpret this as a sign that
they are in financial difficulty or taking on more debt than they can manage. Fortunately,
most scoring systems will not penalize consumers if they can determine that they are shop-
ping for the best rate on a particular product like a mortgage.
Top 5 tips for improving credit / or what affects your credit.
1. Pay your bills on time. Ensure that payments reach your creditors by the due date.
2. Manage chequing / savings accounts carefully – avoid NSF’s
3. Reduce the number of active credit cards to 2 – 3 accounts.
4. Keep account balances below 50% of available credit limits
5. Address and seek assistance for credit / financial problems at the first sign of difficulty
Financial problems usually evolve over time. By addressing debt and money issues at the earliest
sign of difficulty, consumers can minimize the long term impact on their credit rating.
Scott Hannah President & CEO,
Credit Counselling Society
Q lenders won't lend tocredit counselling has on your credit? R7's usually show up and
What effect does
many someone undergoing credit counseling.
consumers to learn to walk before they run
A will not affect your credit rating. Creditors will change thetorating on financial dif-
Speaking with a credit counsellor and exploring options resolve
especially when entering into long term
financial agreements. Rushing into home
ficulties a customer’s
ownership before you have properly evalu-
account to a “7” when they agree to revise the terms of the original agreement through a
ated if you are ready and have the ability to
debt management program (DMP) which is administered by a credit counselling agency.
assume the financial responsibility can be a
Under a DMP creditors accept a reduced monthly payment and generally reduce or waive the
costly mistake. We encourage consumers
interest on their accounts going forward. The “7” rating and account information is removed
in need of mortgage advice to seek out the
two years after the debts have been paid.
assistance of qualified mortgage experts
The “7” rating does not pose a problem for most consumers while they are on a program who are looking to build long term client
as their intent is to get out of debt. The problem consumers can face is rebuilding their relationships vs a quick sale.
credit rating after they have completed their program. Many lenders do not understand that
there is a big difference between a credit counselling DMP and bankrupcty. Under a DMP,
consumers repay all of the outstanding principal balances of their accounts which we be-
lieve demonstrates a high degree of financial responsibility. Making lenders aware of this
difference is an important step towards helping a consumer improve their rating and future In our fall issue we are featuring
ability to obtain credit. Cathie Cline, Dexter Associates
Realty. Please forward your Real
Q adviceyou work alongside Mortgage Brokers in helping to re-establish a client's credit?
Do Estate questions to either Irena
What could you provide? Sakic at email@example.com or
Heather Cermak at heather.cermak@
A caseYes. Approximately 20a%largethe clients weofserveclients cite future homecounsel-
of are homeowners. Our merixfinancial.com and they will be
ling plans also reflect that percentage our owner- forwarded to our expert.
ship as an important long term goal. With this in mind, we believe that it is important for
36 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
MBABC_SpringAd_0310.pdf 1 3/3/2010 10:53:38 AM
bc_ad_mbabc(february2010)ver5:Layout 1 3/4/2010 4:11 PM Page 1
The market can change
in the blink of an eye.
We don’t blink.
Having all the answers upfront will help you serve your clients better.
And more eﬃciently. Involving an AIC expert right from the start of a
transaction means you are moving forward with the most accurate,
up-to-date advice on a property’s real value, based on in-depth analysis
and real property expertise.
Make a real property expert, an AACI or a CRA, part of your team today.
REAL VALUE EXPERTS
Appraisal Institute of Canada #845 – 1200 West 73rd Avenue, Vancouver, British Columbia V6P 6G5
British Columbia t: 604.266.8287 • f: 604.266.3034 • firstname.lastname@example.org • www.appraisal.bc.ca
Acquisition | Management | Development | Portfolio Diversification | Feasibility Studies
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 37
What sets us apart?
We work for brokers; always have, always will.
We offer you SERVICE that saves you time.
n A high-service lender suitable for most borrowers.
n Always reach us during business hours at 866.441.3775 (no voicemail).
n Broker referral fees paid weekly.
We offer you PRODUCTS that help you close more deals.
n Consumer-friendly mortgages (e.g., early pay-outs permitted,
payment increases permitted, portable).
n N.I.Q. lending (BFS, stated/salaried income).
n “A” lending (high-ratio/conventional, CMHC/Genworth).
Optimum Mortgage is the broker-focused arm of the Canadian Western Bank Group (TSX:CWB).
CWB Group has a 26-year history, balance sheet assets of $12 billion, and 1,400+ staff.
Questions? Comments? Deals? Contact our BDO in your area, now: British Columbia Interior, Matthew Scaife - 250.212.3763
Ontario GTA, Rod Dadswell - 416.995.5713 British Columbia Lower Mainland, Jackie Matthew - 604.317.4027
We always welcome your call.
Ontario Northeast, Rick Glauser - 705.331.5954 Alberta North, Brian Karim - 780.915.3381
866.441.3775 Ontario Southwest, Joe Foggetti - 416.882.9919 Alberta South, Heather Wytinck - 403.998.6010
www.OptimumMortgage.ca Manitoba & Saskatchewan, June Craig - 204.998.3899 Underwriters, Corporate Office - 866.441.3775
38 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
10 TOP TIPS fOR MORTGAGE INVESTMENT
With changes in banking regulations, interest rates rising and the volatility of investing
in the stock market, the growth of managing private lending either through MICs, direct
investment or syndicated lending is growing exponentially. If you are thinking of starting
to manage private equity into mortgages: here are some tips.
With the volatility of the stock market these days, private investing in mortgages is increas-
ingly becoming more attractive. Not only are investors able to receive consistent dividends
but their investment is also secured against tangible real estate. As long as your manage-
ment teams funds and finds good mortgages, the ability to find investment interest as well
as funding opportunities will continue to increase and grow.
It seems obvious that the ability to choose good mortgages to fund that won’t default is an
important aspect of managing private mortgages. Having a system to analyze your portfolio
is very valuable and making decisions such as types and areas of loans is very important.
For instance, with the requirement of having 50% of your managed portfolio in residential
mortgages in a MIC you might choose to fund across different geographical areas with
lending many and small amount of loans.
THE ABILITY TO ANALYZE
Shannon Dolphin Whether it is through the use of software package or your internal reports ; having a real
Dolphin Enterprises Ltd. time snapshot of your corporation’s progress with respect to mortgage and investments under
604--685-6721 - office
604-220-0605 - cell management allows for proactive decision making and effective growth.
HAVING AN ACCOUNTING SYSTEM
Using an accounting software such as Quick Books or some system is important not only for
corporate financial analysis but also with the requirement and cost of audited financials.
(continued on next page)
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 39
(MICs: continued from previous page)
STARTING A MIC system that can allocate correct dividends, by investing in MICs. In addition, being
deliver funds either by EFT or cheque and RRSP eligible opens up a great opportunity
MICs are private corporations created by execute statements is an enormous time for you to source new investors.
the income tax act as a conduit for private saver. Similarly, having a system that can
equity being allocated into mortgages. In calculate and manage your pool of mort- RRSP REPORTING
short there are a pool of capital funding a gages ensures data management accuracy Since Trust companies are held liable for
pool of mortgages. and efficiency. their held investments, trust companies will
There are three main areas for registration WHETHER TO GO PRIVATE request reporting from the MICs. They
and compliance when starting and managing OR PUBLIC generally request a hard copy of the certifi-
a MIC. First, is outlined in the Income Tax cates for the initial investment as well as a
Act section 130.1 (6) which states the rules As of July 1 2010 – the rules for MICs and certificate for the total of annual dividends
to compliance of a MIC as a tax exempt Syndicated lenders are changing. However, to the investors. Being proactive by having
corporation. The next step is to consider whether to go private or public specifically a system in place to create the certificates as
how to raise private equity for the funding as a MIC is an important decision to how well as report to the trustees will save many
of mortgages which is regulated provincially you want to raise your capital. Private MICs hours of frustrating administration time.
such as through the BCSC or BC Securi- or under 49 investors can be only friends and
family. Alternatively, managing a public The growth of the private lending space
ties Commission. For instance, you might
MIC you can have as many investors as you in Canada is growing exponentially. The
choose to raise capital by special exemption
can manage as well as publically advertise creation and growth of MICs and the pri-
using an Offering Memorandum. Next to
for those investors. However, being a public vate lending industry at large in Canada is
consider is the lending side of the business
MIC is more costly to create and manage becoming a more popular avenue for brokers
which is regulated by such entities as the
and is more strictly regulated. and borrowers to fund projects. In addition,
BC Financial Institution Commission or
with successful management and underwrit-
FICOM. If you are underwriting properties RRSP ELIGIBLITY ing, you as a MIC Manager can also enjoy a
outside of BC you need to know how that
steady business of lending capital.
province regulates brokers. One of the advantages for a MIC is that they
are RRSP eligible. As long as the Trustee For more information about MICs, private lending,
BEING A GOOD MIC has approved your MIC for their clients, Syndicated lending or using Software to manage
trustee clients can earn a better annual return private mortgage investments please drop an email
As long as you comply with the above to Shannon@dolphinent.com.
mentioned bodies you must also comply to
other MIC rules. For instance, in order to
be a MIC, you must distribute all interest
income from mortgages to the investors (mi-
nus expenses and management fees), not one
person or related thereof either by marriage,
family or corporately can own more than n
25% of the MIC, the MIC needs at least 20
investors, over 49 investors you must have
an Offering Memorandum or Prospectus
and audited financials, and the MIC needs
to contain 50% residential mortgages.
MANAGING A MIC
The administration of MICS can be oner-
ous, especially when you a managing over
10 million dollars of raised capital. The
most important concern is being able to
allocate your raised private equity into a
group of mortgages so that you can receive
the interest payments to allocate to investors
in the form of dividends. The allocation of
dividends to investors or certificates can take
days to execute manually. Using a software
40 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 41
42 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
LIfESTYLES:fOOD AND WINE
HERON ROCK BISTRO: JAMES BAY, VICTORIA BC
The Heron Rock Bistro opened on May 4, 2005 to serve the service and provide quality food at reasonable prices using local
community of James Bay and Victoria top quality local food and Vancouver Island organic produce whenever possible.
beverages at affordable prices. Our mission is to excel at customer
They serve up a fine brunch in a classy atmosphere that also aims for the dinner crowd. Their selection of slightly more upscale, creative
menu items offers great deals any time of the day. If you live in James Bay, this is a place you can confidently frequent. If not, spread
those weekend wings and fly on over for brunch now . . . before it gets added to the long list of local places with long lineups.
James Russell - Monday Magazine
HERON ROC y
, whether it's a
aring plat ter with friends e of w ine at my
"I love to eat a sh a beautiful bottl
n deck or with ile accompanim
hour on th e summer cabi are a versat
rant . These crackers Peters on, proprietor.
favourite restau the bistro." Ben
our platters at Fat Buoy Burger
succ essfully elevate
2 cups flour
2 tsp baking so
1 ts p salt
2 cups butterm
¼ cup br own sugar
2 Tbsp molasse
½ cup raisins Blueberry Pie with
½ cup cranberr
ies homemade vanilla bean ice cream
½ cup ch opped pecans
½ cup pumpk
¼ cup sesame nd flax)
¼ cup flax seeds (or grou
1 Tbsp fresh ro
ix flour, salt
1. Preheat oven
to 350°F. your hands, m
st in a bowl with
ed mixer, or ju
2. In a motoriz
and soda. s and stir.
r, and molasse
3. Next add buttermilk, suga
gredients and PAM.
4. Add rest of in ns sprayed with
all loaf pa
5. Pu t batter in 4 sm p
utes. thin with a shar
6. Bake 45 min w to cool. Slice
out onto a rack and allo
7. Turn loaves Cioppino - seaf
bread knife. on cookie shee ood stew with
for 15 minutes ht container. red pepper-tom smoked
8. Re -bake at 300oF 15 minutes. St
ore in an air tig ato broth
9. Flip and bake
well if necess ary..
Heron Rock Bistro: 435 Simcoe Street, Victoria, BC • Reservations: 250-383-1545 • www.heronrockbistro.ca
OKANAGAN NETWORKING EVENT
Grant Plunkie, Rob Hafer, Dawn Steph
Mary-Ellen Colman, Linda Belding
and Lona Williams
Deb Hiller of the MBABC, Catherine Halkyard of
ING & Tamera Olsen, MBABC executive director,
enjoy the festivities in the Okanagan
nal Golf Tourna
CAAMP Natio nd
Playin g at the recent ident & CEO , Hali Strandlu
- CAAMP Pres n
Jim Murphy of the MBA BC , Rob Rega
r& Past President P Bo ard of Sonny Saran, Merix Financial &
- CAAMP Chai e on the CAAM
BC representativ Manitoba Deb White, DLC Whitehouse Mortgage
Pollock - MBA AMP Director
yl Harris - CA
Calvin Fernandes in trouble with Heather
Cermak & Irena Sakic at the CMP Awards INVIS-MI 10TH ANNIVERSARY
TOURNAMENT IN COBBLE HILL
Andrea Carlson-Ray from
Genworth, organizes Golf
Tournament, and wine draw!
MBABC BOARD TEAM BUILDING &
STRATEGIC PLANNING, WHISTLER
We are taking submissions for the next issue of The Mortgage Broker for photos from your recent industry related events. Photos should be in
colour and taken at the highest setting on your cameras. They should be emailed as digital jpg files to either Irena Sakic at email@example.com
or Heather Cermak at firstname.lastname@example.org with a short description of the event and the names of MBABC members in any photos.
Please ask individuals for their permission to publish their photos prior to sending them to us.
44 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
We supply mortgages throughout Western Canada, Northwest Territories and
the Atlantic Provinces, for a wide range of commercial properties that includes:
Team Bridgewater works harder for you.
We see the whole game, and will do what it takes to get
you the win — through strong support from our Business
Development Managers, fast approval turnaround times,
and high overall service levels.
Ask us about our new BwB POWER COMPENSATION®
PROGRAM for brokers and how you can qualify!
1-888-837-2326 ■ bridgewaterbank.ca
Personal. Efﬁcient. Committed. ® Registered Trademarks of Bridgewater Bank
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 45
MBABC BOARD REPORTS
SURVEY SAYS! – REPORT ON MEMBER
SERVICES SURVEY RESULTS:
Q: WHAT DEMOGRAPHIC IS fUELING RE-LICENSING EDUCATION.
MBABC would like to express our grati-
Refinances topped the list among 55% of respondents with new home tude to CMHC for sponsoring our Profes-
purchases a close second at 45%. 66% of market share goes to the 35 sional Development events this year. CMHC
to 60 year age group, with the remaining split evenly between young – Canada Mortgage & Housing Corporation
home buyers and retirees. Referrals still offer significant business is sponsoring our AIC events, the DI circuit
Executive Director growth opportunities among respondents. and Pro-D seminars. We greatly appreciate
this support of our educational programs
Q: WHAT IS YOUR MOST POPULAR MORTGAGE PAYMENT AND WHY? and recognize this important contribution
Five year fixed garnered 45%: Members feel their clients are uncertain about the future to our association.
especially with the market and media hype about increasing rates. Many consumers want
The Okanagan Networking event was well
to lock in.
attended and the MBABC saw tremendous
Variable saw 25%: Members feel Prime will not increase enough to equal the average sponsorship support. Participants enthusias-
5 year cost of a fixed rate product. tically embraced the theme and enjoyed an
evening with peers. We are now developing a
50/50 split for a variable/fixed mortgage received 20%: Members feel it offers interest savings new networking component. This ties in nicely
on the variable side and the comfort of a fixed rate so their entire payment doesn’t jump. to the feedback from the recent survey. Watch
for updates after your summer holiday.
*LOC’s & 3 year rates made up the last 10% of respondents.
Thanks to everyone who participated in the
The MBABC Board of Directors has been busy this spring. We created an institute for survey. Don’t wait to provide feedback. Send
Re-Licensing Education and are building relationships in the greater industry to strengthen your comments and ideas to us, or get involved
our position as an association. We continue to work with our regulator and look forward to on a committee. We want to hear from you and
further positive developments. our committees are looking to grow. Visit our
Directors page and make contact.
The Professional Development Committee is collaborating with our regulator in a review
of our Applied Information and Designated Individual courses. They are also exploring Take advantage of the online resources avail-
webinar platforms for both to increase the reach of these materials across the province able through our web site – simply log in.
and offer them at a low cost to participants. You can expect an update of these activities in
our Fall Magazine. Your MBABC Professional Development Committee will be working All the best for a glorious summer!
collaboratively to ensure our content remains relevant and affordable for all our members.
Rob Regan-Pollock is now joined by Roger
Levesque as co-chair. Please contact either
of these individuals for information on par-
ticipating with the Pro-D committee. M A N D AT E
National Mortgage Corporation
Media Learning Systems under the lead-
ership of Dr. Jonathan Ross has been
enlisted to digitize our Re-Licensing Edu- MORTGAGES TO SUIT YOUR NEEDS
cation modules for online learning using • Commercial/Residential • Short Term Bridge Loans
the trusted and proven Moodle platform. • Land/Subdivision Loans • Development Cost Over-runs
You can expect a dynamic environment as
• Project Workout Solutions • Multi-Family
you further your education. Watch for the
release this summer, and be sure to reg- ALAN LONG PERRY ASKOUNIS
ister for the in-person Regulatory Update
presented by FICOM representatives. Take PHONE: 604.731.2899 • FAX: 604.734.5546
advantage of smaller classrooms by regis- EMAIL: email@example.com
tering early. FICOM will be announcing Suite 505 - 1195 W. Broadway, Vancouver BC V6H 3X5
further details to all licensed BC brokers.
Thank you to survey respondents for the
Vancouver’s Sub-Prime Mortgage Lender since 1982
46 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
Fisgard. Creative Lending
in an unCreative market
Creative, Knowledgeable & Experienced • residential
Fisgard is a private lender dedicated to providing brokers and
their clients with the answers they need. With Fisgard’s creative,
• high-ratio insured
knowledgeable and experienced underwriters, your deal that
doesn’t fit the “bank box”, can get done here. We are here for you
and we’re here for your clients.
• land development
• equity takeout
Think of Fisgard Capital as your partner in private lending for
Western Canada. Let us show you how effectively we will combine
• debt consolidation
our expertise, flexibility and the best private pricing to help you
close those difficult deals.
Speak to an underwriter today.
Call 866.382.9255 or visit
www.mbabc.ca Fisgard Capital Corporation | 3378 Douglas Street Victoria BC V8Z 3L3 | www.fisgardmortgage.com The BC MORTGAGE BROKER
Summer 2010 I 47
Together, we can make home
ownership a reality for your customers.
We have mortgage lending solutions for your customers.
Our team of professional mortgage and credit specialists are dedicated to providing mortgage brokers
with unparalleled service. We’ll work with you to assess applications on an individual basis, providing your
customers with specialty mortgage lending solutions.
Consistent. Reliable. Responsive.
Toll Free: 1-877-273-7498
TD Financing Services Home Inc. Licence #11286
48 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
WELCOME NEW MEMBERS fEB. 26, 2010 — MAY 5, 2010
Jay (John) Anderson Verico Integra Mortgage Corp. Voting Individual Member
Raman Bains recent graduate Non-Voting Individual Associate Member
BJ Block DLC Trillium Accessible Non-Voting Individual Associate Member
Heather Bobroske Dominion Lending Centres Voting Individual Member
Jacqueline Bowen VERICO Primex Mortgages Inc. Voting Individual Member
Rhonda Brown Dominion Lending Centres VanIsle Voting Individual Member
Lucas Bussey Home N Work Mortgages Inc Voting Individual Member
Sidney Buurman, AMP Centum Action Mortgage Corp. Voting Individual Member
Jessey Camara Mortgage Protection Plan Non-Voting Individual Associate Member
Gregory Campbell Invis - Capital North Mortgages Voting Individual Member
Susan Carter The Equitable Trust Company Non-Voting Corporate Associate Member
Derek Cartier Centum Lending Max Voting Individual Member
Brian Chelin Lanyard Financial Corporation Voting Corporate Member
Stella Co Invis on the Peninsula Voting Individual Member
Patricia Collins CENTUM Pacific Mortgages Voting Individual Member
Nicki Dalziel DLC Downtown Financial Voting Individual Member
Eveline de la Giroday Dominion Lending Centres Casa Mortgage Inc. Voting Individual Member
Sheldon Deering MyMortgage.ca Voting Individual Member
Craig Delwisch Dominion Lending Centres BCLender.ca Voting Individual Member
Daphne Desjarlais Dominion Lending Peter Kinch Mortgage Team Voting Individual Member
Bryan Devries Invis Inc. Non-Voting Individual Associate Member
Margaret Dron Invis Inc. Voting Individual Member
Stephen D'Souza Origin Home Financial Partners Voting Individual Member
Don Dubbin TMG The Mortgage Group Canada Inc. Voting Individual Member
Kenneth Paul Ducharme Dominion Lending Centres Western Communities Mortgage Corp. Voting Individual Member
Dawn Elliott Dominion Lending Centres White House Mortgages Voting Individual Member
Sharie Francoeur TMG The Mortgage Group Canada Inc. Non-Voting Individual Associate Member
Wendy Gillan Dominion Lending Centres Foundation Mortgages Voting Individual Member
Gerry Gillan, AMP Dominion Lending Centres Foundation Mortgages Voting Individual Member
Mahmoud Gonabadi DLCBC Mortgage Group Voting Individual Member
Lorena Grigore Verico YesPros Mortgages Voting Individual Member
Karen Hope First National Financial LP Non-Voting Individual Associate Member
Sasha Idema Invis Inc. Voting Individual Member
John Inaba MyMortgage.ca Voting Corporate Member
Nathan Jang Netdigix Internal
Jessi Johnson, AMP Jessi Johnson Mortgage Team Voting Individual Associate Member
Richard Jomha Dominion Lending Centres Western Communities Mortgage Corp Voting Individual Member
Ingrid Kasper Invis Inc. Voting Individual Member
Randy Kazemir Vintage Valley Mortgage Voting Individual Member
Ella King The Mortgage Centre - Second Street Mortgages Ltd Voting Individual Member
Lidia Klimek Spectrum Canada Mortgage Services Voting Corporate Member
Jannel Kosior MCAP Service Corp. Non-Voting Individual Associate Member
Lesley Krawiec The Get 'Er Done Girls Inspire Mortgage Solutions Voting Corporate Member
Justin Kwak VERICO ZANDERS & Associates Mortgage Brokers Inc. Voting Individual Member
Lori Lalonde Verico Paragon Pacific Mortgages Inc. Voting Corporate Member
Delia Leonor, AMP DLC Trillium Accessible Voting Individual Member
Suganya Lueangsubin Trillium Accessible Mortgage Corp. Voting Individual Member
Jean Mark Dominion Lending Centres Downtown Financial Group Voting Individual Member
Parel Marlon AK MORTGAGE Voting Individual Member
Sal Maroufi Verico YesPros Mortgages Voting Individual Member
Jennifer Marx Select Mortgage Corp. Nanaimo Voting Individual Associate Member
Doriana Mascitti The Mortgage Center-Mortgage Evolution West Voting Individual Member
Jeff Metcalf Verico Select Mortgage Voting Individual Member
Farnam Mohasseb TMG The Mortgage Group Canada Inc. Voting Individual Associate Member
Corey Namura Namura Mortgages Voting Corporate Member
Trong Nguyen Invis Inc. Voting Individual Associate Member
Kathy Nguyen TMG The Mortgage Group Canada Inc. Voting Individual Associate Member
Myles Nowik Universal Financial Corporation Non-Voting Individual Associate Member
Kelly Phillips Fisgard Capital Corporation Non-Voting Individual Associate Member
Marie Preweda Dominion Lending Centres - Vic City Mortgages Non-Voting Individual Associate Member
Gerald Puhan Dominion Lending Centre Mountain View Voting Individual Member
Winona Reinsma VERICO ZANDERS & Associates Mortgage Brokers Inc. Non-Voting Individual Associate Member
Christine Richardson VERICO ZANDERS & Associates Mortgage Brokers Inc. Non-Voting Individual Associate Member
Donald Ross Kal-Mor Mortgages & Investments Ltd. Voting Individual Member
Mike Saba Lanyard Financial Corporation Voting Individual Member
Frederic (Shane) Scott ResMor Trust Company Non-Voting Individual Associate Member
Stephanie Scott Gateway Equity Inc DBA Dominion Lending Centres VanIsle Non-Voting Individual Associate Member
Denny Segal, AMP Origin Home Financial Partners Inc Voting Individual Member
Susan Steel Invis Inc. Voting Individual Member
Jamie Stewart Stewart Mortgage Corp. Voting Individual Member
Evguenia Stilinovic TMG The Mortgage Group Canada Inc. Voting Individual Member
Chelsey Taporowski DLC-Vic City Mortgage Group Voting Individual Member
Atish (sAtish) Thakur Dominion Lending Casa Mortgage Inc. Voting Individual Member
Paul Therien Greenwood Mortgage Non-Voting Individual Associate Member
John Thomson Dominion Lending Centres Voting Individual Member
Denise Webster DLC-Vic City Mortgage Group Non-Voting Individual Associate Member
Matthew Wiltzen Invis Inc. Non-Voting Individual Associate Member
Mike Wolfe The Equitable Trust Company Non-Voting Individual Associate Member
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 49
VANCOUVER HOUSING MARKET BECOMES
HOUSING DEMAND DRIVERS
Economic conditions in the Vancouver Census Metropolitan Area (CMA) will be favour-
able for the housing market this year and next, according to Canada Mortgage and Housing
Corporation (CMHC). This year began on an up note in Vancouver with the 2010 Olympic
Winter Games boosting consumer spending in the region. Vancouver’s job market is also
expected to pick up as the economy improves over the next eighteen months.
Population growth in the Vancouver CMA is an important contributor to housing demand
and will continue to drive demand for both rental and ownership housing. An estimated
40,000 people are expected to move to the Vancouver region each year, adding about 16,000
– 18,000 new households in need of housing. It will be important to keep an eye on higher
mortgage rates, which may dampen homeownership demand, especially for those who are
more sensitive to the impact of higher rates.
RESALE HOUSING MARKET
Robyn Adamache, MLS® sales in the Vancouver region are forecast to moderate in the second half of 2010 and
Senior Market Analyst, CMHC BC Region
Corporate spokesperson on the remain flat through 2011. In addition to the expectation of higher mortgage rates, much of
Metro Vancouver housing market the pent-up demand that built up during 2008, has been satisfied. In 2009, many first time
home buyers made the move to home ownership, taking advantage of record low mortgage
rates and prices that had fallen from their previous peak levels. While first quarter home
sales this year were well above the low levels of the first quarter 2009, the pace of sales has
slowed compared to last fall. This trend will continue, resulting in a three per cent dip in
Resale Market in Balanced Territory annual sales both this year and next.
MLS® Sales to New Listings Ratio (Greater Vancouver)
At the same time that the pace of sales is expected to flatten, there will be more homes for
100% sale. The steady increase in home prices during the past year has motivated potential sellers
80% Sellers’ to list their homes. The number of new listings added to the market trended higher in the
Balanced first quarter of 2010. However, strong sales have kept the total stock of active listings on
the market below previous peak levels reached in late 2008.
0% A combination of moderating sales and an increase in the number of listings will mean
May-86 May-90 May-94 May-98 May-02 May-06 May-10
more balanced market conditions in Vancouver for the remainder of this year and into 2011.
Source: REBGV, Seasonal Adjustment by CMHC,
Buyers will have a larger selection of homes to choose from and more time to make their
home purchase decision.
As the resale market adjusts to more balanced supply and demand conditions, the pace of
price growth will slow. However, there is often a lag between when conditions become more
balanced and when prices react. As a result of high prices and robust sales in the early part
of 2010, the annual average MLS® price will increase 11 per cent, with most of the increase
accounted for by the first half of the year. Balanced market conditions will result in home
prices rising a more modest three per cent in 2011.
CMHC is Canada’s national housing and provides reliable, impartial and up-to-date housing
market reports, analysis and information to support and assist consumers and the housing
industry in making vital decisions.
For more information on CMHC’s 2010 and 2011 housing forecast, please visit our website at
www.cmhc.ca/housingmarketinformation and download the Vancouver Housing Market Outlook,
Second Quarter Report, 2010.
50 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
2010 CMHC MORTGAGE CONSUMER SURVEY
CANADIANS RESPONSIBLE, INfORMED WITH MORTGAGE
DEBT AND HOMEOWNERSHIP
From February 11th to 28th 2010, CMHC fIRST-TIME BUYERS GET IN- MORTGAGE BROKER SHARE IS
completed an online survey of 2,503 recent fORMED ON MORTGAGE OP- STABLE
mortgage consumers – all prime decision- TIONS
Survey results also show that mortgage bro-
makers – and the results offer a unique
Survey results show that first-time buyers are ker market share has remained stable over the
perspective on attitudes and behaviors of
educating themselves on various mortgage past year at 39%. Mortgage brokers continue
options prior to obtaining a mortgage. A large to have higher usage among first-time buyers
This year’s survey provides insight into the proportion research terms and conditions (84 (45%) and repeat buyers (33%) compared to
Canadian mortgage market and identified per cent) compare the costs of different inter- the refinancing and renewer segments, which
the following five key findings: est rate scenarios (71 per cent) and check for have been relatively stable since 2006 at
competitive interest rates (65 per cent). about 25% and 13% respectively.
1. The Internet, an important tool for
mortgage consumers In addition to seeking out information them- As seen in 2009, broker market share is stron-
selves, first-time buyers consult a great deal gest in Western Canada where 53% of buyers
2. First-time buyers get informed on with various third parties and mortgage pro- in British Columbia and 41% in the Prairies
fessions prior to obtaining their mortgage. used a broker to arrange their mortgage.
3. Mortgage broker share is stable They consult with mortgage lenders (59
per cent), family and friends (58 per cent), According to mortgage consumers, the benefits
4. Mortgage consumers are confident with mortgage brokers (48 per cent), and real that mortgage brokers offer are that they are able
homeownership estate agents (44 per cent) for advice. More to get the best deal or rate for their clients, they
than three-quarters of first-time buyers noted are convenient, and they offer time-savings
THE INTERNET IS AN IMPORTANT when obtaining a mortgage. Family and friends
TOOL fOR MORTGAGE they received advice on mortgage terms
and conditions, as well as whether to take are the key source of broker referrals.
a variable or fixed interest rate. First-time
A significant proportion of consumers seek
MORTGAGE CONSUMERS ARE
buyers also report that mortgage brokers
CONfIDENT WITH HOME-
information on mortgage options prior to and mortgage lenders are more influential OWNERSHIP
making a purchase decision and the Internet to their mortgage decision than several other
is becoming the prevalent source of informa- third parties. Despite the challenging economy, in 2010
tion, according to the survey. This is particu- there have been strong overall results when
larly true of first-time buyers, with almost The combination of the time spent educating it comes to mortgage consumer attitudes to-
nine out of ten using the Internet to search themselves about mortgages, and meeting wards homeownership and real estate. Survey
for information on mortgage options. with mortgage professionals is definitely results indicate that a large majority of recent
worth the effort. According to the survey, a homebuyers (92%) agree that homeowner-
Among the various on-line tools and other very high proportion of first-time buyers (90 ship is a good long-term investment and 77%
resources consumers use to collect informa- per cent) feel that they made their mortgage agree that now is a good time to purchase
tion about mortgages, on-line calculation decision with a good understanding of the a home. These sentiments were generally
tools are particularly popular: 69 per cent mortgage options available to them, 85 per shared by respondents across Canada.
of first-time buyers use them to compare cent said they had a good understanding
different options. As well, more than half of how much mortgage they could afford When asked how long they had been plan-
of first-time buyers visited the web site of before buying, and 75 per cent feel that the ning to buy, more than two-thirds (70%) of
a specific mortgage lender when seeking process of getting their mortgage was easy recent homebuyers claimed they spent at
information on mortgages. A large major- and straightforward. least six months planning their purchase. On
ity of first-time buyers (89 per cent) found average nationally, homebuyers are taking
these tools useful. 12 months to plan, while those in the Prairies
are taking nine months and those in Quebec
are taking 15 months.
For complete details of CMHC’s 2010 Mortgage Consumer Survey
please visit: http://cmhc.ca/en/hoficlincl/moloin/cosu/index.cfm
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 51
BULLETIN NUMBER: MB 10-003 (AMENDED)
TITLE: CONfIRMATION Of IDENTIfICATION fOR CRIMINAL RECORD CHECKS
LEGISTATION: MORTGAGE BROKERS ACT
DATE: MAY 2010
In order for FICOM to conduct criminal record checks (in addition to registration applicants submitting a completed Consent to Suitability
Investigation form) the following will be required with every application for an individual’s mortgage broker or submortgage broker reg-
istration or renewal of registration as of June 1, 2010:
• A Form 16, “Declaration of Designated Individual – Confirmation of Applicant’s Identification”, which has been duly completed by
the Designated Individual, a Director of the Mortgage Broker or a person appointed by the Designated Individual to confirm identifica-
• Colour copies of two pieces of government-issued identification of the Applicant, such as a current driver’s license or passport, with
one piece of identification containing a photograph of the Applicant.
The purpose of the Form 16 is to ensure that the Designated Individual, Director or person appointed by the Designated Individual to con-
firm identification examines the identification and confirms that the person applying for registration or renewal of registration is in fact the
same person pictured in the photograph of the government issued identification.
Copies of the identification must be clean and in colour. Therefore, they may be sent electronically or by mail, but not by fax.
For further information about this requirement, please contact the staff of the Registrar at 604-953-5300 or at FICOM@ficombc.ca.
BULLETIN NUMBER: MB 10-004
TITLE: MORTGAGE LEAD GENERATION—REQUIREMENT fOR
MORTGAGE BROKER REGISTRATION
LEGISTATION: MORTGAGE BROKERS ACT
DATE: JUNE 2010
Mortgage lead generation involves an entity or individual gathering lists of potential mortgage borrowers, who are considered to be “mortgage
leads”. The lists of mortgage leads are then sold to mortgage brokers, who may contact the individual leads for the purpose of attempting
to arrange mortgage financing for them.
The lists of potential mortgage borrowers are often generated through the internet by setting up a website which may provide mortgage
information or mortgage advice and providing a simple form of mortgage application. The application data is gathered by the mortgage
lead generator and then forwarded to the mortgage broker. Mortgage leads may also be generated over the telephone by telemarketers
contacting persons and enquiring about their interest in obtaining a new mortgage or refinancing a current mortgage, in addition to gather-
ing personal and financial information from the potential borrower.
Mortgage lead generation is a specific activity which is part of the mortgage arranging process. The Registrar of Mortgage Brokers interprets
the phrase “arranging mortgages” to include any essential activity which is part of the process of a borrower obtaining a mortgage from a
lender. An individual begins the process of arranging a mortgage from the time they begin to communicate with a prospective borrower
Specific activities which are part of the mortgage arranging process include:
• Engaging in the business of soliciting borrowers for the purpose of mortgage referrals, including engaging in the business of offering
mortgage lead generation services by gathering the names of potential mortgage borrowers and providing lists of those potential bor-
rowers to mortgage brokers;
• Taking mortgage applications, including simple applications which may be used by mortgage lead generators to collect borrower data
or gathering application information through the telephone or other telecommunication mediums; and
• Explaining mortgage terms and options, including the provision of simple mortgage information or advice on websites intended to
attract potential mortgage borrowers.
Any individual who arranges a mortgage or mortgages and either directly or indirectly receives fees or any other consideration exceeding
$1,000 in any one year for arranging a mortgage or mortgages must obtain mortgage broker registration under the Mortgage Brokers Act.
Therefore, an individual will require mortgage broker registration if he or she:
• Engages in any mortgage arranging activities; and
• Receives $1,000 or more in any one year for arranging mortgages.
Information on mortgage broker registration can be obtained from the Financial Institutions Commission website at www.fic.gov.bc.ca or
by calling 604-953-5300
52 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
MESSAGE fROM THE REGISTRAR
Of MORTGAGE BROKERS:
NEW RULES fOR CONDUCTING CRIMINAL RECORD CHECKS
New rules came into effect in June of 2010, which will require FICOM to inspect colour copies of two pieces of government issued identi-
fication (one with a photograph) prior to FICOM conducting a criminal record check on an application for mortgage broker or submortgage
broker registration. In addition, the Designated Individual, a director of the mortgage broker or a person appointed by the Designated
Individual to confirm identification must confirm that the person applying for registration is the same person pictured in the identification.
Page 1 of 1
Designated Individuals who have appointed someone else to confirm
the identification of applicants will still be responsible for ensuring
Registrar of nd Avenue
1200 – 13450
that the information in the Form 16 (set out below) is accurate.
Surrey, BC V3T
Therefore, all applicants for registration, in addition to submitting an
IRMATION application for registration or renewal of registration and a Consent
UAL – CONF
NATED INDIVID ATION
DECLARAT ION OF DESIG T’S IDENTIF IC
OF APPLICAN FORM 16
for Suitability Form, must also provide to the Registrar’s office:
• A Form 16, “Declaration of Designated Individual – Confirma-
_________ __declare tha
tion of Applicant’s Identification”, which has been duly com-
____________ on appointed
pleted by the Designated Individual, a Director of the Mortgage
I, _________ ignated Individual, Director or persidentification)
(Des ted Individual
ication of the Broker or a person appointed by the Designated Individual to
ed two pieces
• I have examin n, who is: confirm identification; and
applicant for reg ____________
____________ e of the Applicant)
____________ (Legal Nam
, that it is that
of the • Colour copies of two pieces of government-issued identification
my review of
• I am satisfied, from of the Applicant, such as a current driver’s license, with one
applicant for reg
copies of the
the purpose of
piece of identification containing a photograph of the Applicant.
are two colour examined for
Attached to this Form 16, Applicant which I have
tograph) of the
contain a pho
making this dec
laration. Copies of the identification must be clean and in colour. Therefore,
they may be sent electronically or by mail, but not by fax.
ual to For further information about this requirement, please contact the
e of British Col ed by the Des
in the Provinc person appoint
tification staff of the Registrar at 604-953-5300 or at FICOM@ficombc.ca.
Manager, Mortgage Broker Regulation
Financial Institutions Commission
MBA F10 01/2
government contact list
Financial Institutions Commission Ms. Jay Mitchell
Ministry of Finance Deputy Registrar of Mortgage Brokers
Suite 1200 – 13450 102nd Avenue Ms. Samantha Gale
Surrey, BC V3T 5X3 Manager, Mortgage Broker Regulation
Ms. Terri Robertson
Ph: (604)953-5300 Fax: (604)953-5301 Senior Registration Officer
june 15, 2010 information provided by ficom real estate and mortgage broker department:
Registered Mortgage Brokers Head Offices: 792
Registered Mortgage Broker Branch Offices: 272
Registered Sub-mortgage Brokers 3,176
www.mbabc.ca Summer 2010 I The BC MORTGAGE BROKER 53
MESSAGE fROM THE REGISTRAR
Of MORTGAGE BROKERS:
MORTGAGE LEAD GENERATION: THE REQUIREMENT fOR MORTGAGE BROKER REGISTRATION
Over the past couple of years, there has been a marked increase in Specific activities which are part of the mortgage arranging process
the number of mortgage lead generation entities which offer their include:
services to mortgage brokers and lenders in BC. Throughout this
period, we have received enquiries and complaints from both mem- • Engaging in the business of soliciting borrowers for the purpose
bers of the public and the mortgage industry questioning the methods of mortgage referrals, including engaging in the business of
used by some of these entities. In addition, we have been directly offering mortgage lead generation services by gathering the
asked by some mortgage lead generators as to whether they require names of potential mortgage borrowers and providing lists of
mortgage broker registration. Presently, mortgage lead generation those potential borrowers to mortgage brokers;
entities operate just like mortgage referral entities, which do require
• Taking mortgage applications, including simple applications
registration, as they are engaging in “mortgage arranging”.
which may be used by mortgage lead generators to collect
Mortgage lead generation involves an entity or an individual gather- borrower data or gathering application information through the
ing lists of potential mortgage borrowers, who are considered to be telephone or other telecommunication mediums; and
“mortgage leads”. The lists of mortgage leads are then sold to mort-
• Explaining mortgage terms and options, including the provision
gage brokers, who may contact the individual leads for the purpose
of simple mortgage information or advice on websites intended
of attempting to arrange mortgage financing for them. The lists of
to attract potential mortgage borrowers.
potential mortgage borrowers are often generated through the internet
by setting up a website which may provide mortgage information or Any individual who arranges a mortgage or mortgages and either
mortgage advice and providing a simple form of mortgage applica- directly or indirectly receives fees or any other consideration exceed-
tion. The application data is gathered by the mortgage lead generator ing $1,000 in any one year for arranging a mortgage or mortgages
and then forwarded to the mortgage broker. Mortgage leads may also must obtain mortgage broker registration under the Mortgage Bro-
be generated over the telephone by telemarketers contacting persons kers Act.
and enquiring about their interest in obtaining a new mortgage or
refinancing a current mortgage, in addition to gathering personal Therefore, an individual will require mortgage broker registration
and financial information from the potential borrower. if he or she:
Mortgage lead generation is a specific activity which is part of the • Engages in any mortgage arranging activities; and
mortgage arranging process. The Registrar of Mortgage Brokers
interprets the phrase “arranging mortgages” to include any essential • Receives $1,000 or more in any one year for arranging mort-
activity which is part of the process of a borrower obtaining a mort- gages.
gage from a lender. An individual begins the process of arranging a
Information on mortgage broker registration can be obtained from
mortgage from the time they begin to communicate with a prospec-
the Financial Institutions Commission website at www.fic.gov.bc.ca
tive borrower about mortgages.
or by calling 604-953-5300.
Manager of Mortgage Broker Regulation
Financial Institutions Commission
THANK YOU TO OUR MAGAZINE ADVERTISERS
We thank the following advertisers for making this issue of The BC Mortgage Broker possible:
Antrim Investments Ltd. 31 Home Trust Company 34 Pacifica Mortgage Investment Corporation 41
Appraisal Institute of Canada–BC 37 Instafund Financial Services Ltd. 42 Peoples Trust 35
Bayfield Mortgage Professionals 26 Invis 28 Reliable Mortgages Inc. 13
Bridgewater Bank 45 Lanyard Financial Corporation 12 Resmor Trust Company 27
Chris Chernoff Photography 40 Lawrenson Walker Realty Advisors 33 Solidifi 55
Club MBABC 56 Mandate National Mortgage Corporation 46 TD Canada Trust Mortgage Broker Services 4
Cove Mortgage Ltd. 32 Mortgage Intelligence 28 TD Financing Services 48
Dominion Lending Centres 3 Mortgage Protection Plan 38 Vector Pacific Mortgage Corporation 41
First Circle Financial 11 National Bank 49 Verico Financial Group Inc. 6
First National Financial LP 37 Nexus Investment Corporation 45 VWR Capital Corp. 32
Fisgard Capital Corporation 47 Optimum Mortgage 38 Walton Appraisals Ltd. 39
54 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca
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56 The BC MORTGAGE BROKER I Summer 2010 www.mbabc.ca