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					 Special Feature
 2011 broker sentiment poll




62   mortgagebrokernews.ca
        Special Feature
         2011 broker sentiment poll




survey
  says…
     mortgagebrokernews.ca      63
 Special Feature
 2011 broker sentiment poll




 CMP presents our third cross-Canada broker sentiment poll to gauge what’s on
 brokers’ minds. Some of the results may surprise, while others simply confirm
 what brokers already know



                                                                                                      issues, as they also cited fewer lenders in
                               The Broker Sentiment Poll puts out an open call                        the broker channel (26 per cent), household
                               to the Canadian broker community to                                    debt (23 per cent), falling house prices (22
                               participate in an online survey where
                                                                                                      per cent) and reduced revenue due to lower
                                                                                                      commissions (20 per cent) as being
                               comments are invited. This year CMP received
                                                                                                      concerns not far behind economic worries.
                               nearly 300 responses from brokers across
                               the country.
                                                                                                     your marketing budget
                                                                                                     for 2011 will:
                              W       ith the recession in the rearview
                                      mirror and the housing market
                              holding its own, you might think worrying                                                                     43%               Stay the same
                              about the economy would have faded
                              from mortgage brokers’ consciousness.                                                                          43%
                                                                                                                                            31%          Stay the same
                                                                                                                                                              Increase less than 50%
                              CMP’s third annual Broker Sentiment
                                                                                                                                             31%         Increase less than 50%
                              Poll, however, shows that to be a
                              misleading statement.                                                                                         15%               Increase more than 50%
                                                                                                                                             15%         Increase more than 50%
                                  When asked to name their biggest
                              concerns for the year ahead, 33 per cent of                                                                     7%
                                                                                                                                              7%
                                                                                                                                                         Decrease more than 50%
                                                                                                                                                              Decrease more than 50%
                              brokers cited the economy slowing and
                                                                                                                                              4%
                              interest rates rising as their No. 1 fear.                                                                                 Decrease less than 50%

                              While not a majority sentiment, brokers                                                                         4%              Decrease less than 50%
                              this year seem to have an eye on numerous




   88% OF CANADIANS
     want to obtain their mortgage from an institution where they have other financial products.
                                                                                                                                                        SOURCE: CAAMP Survey, January 2011




                                                                    ...but you ONLY do mortgages!

                                                                                    For information on how you can do more than just
                                                                           mortgages contact Wane Davis, VP Marketing & Business Development
                                                                                  1-866-601-7632 · www.canadianfirst.com
                                                   Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the
                                                      prospectus before investing. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated.



64    mortgagebrokernews.ca
                                                                           Special Feature
                                                                            2011 broker sentiment poll

 will you be hiring
 new staff over
 the next 12 months?
 54% - yes
 46% - no
                                                        “
 if you answered               my biggest concern is that
                             the banks are not on a level
 no, will you be               playing field with brokers
 reducing staff?                                        ”

                              Challenges from the banks are on
 2% - yes                 brokers’ minds, as according to one-quarter
                          of brokers who when asked “What will be
                          the biggest change in the industry over the
 82% - no                 next year?” responded that competition
                          from bank mobile mortgage specialists will

 16% - only if            change the mortgage landscape. Banks
                          leaving the broker channel (19 per cent)

 market conditions        and lenders moving towards efficiency
                          bonuses and away from volume bonuses (16

 worsen                   per cent) were other changes brokers say
                          are coming in 2011.
                              “My biggest concern is that the banks
                          are not on a level playing field with
                          brokers. They still do what they want and




 what are your biggest concerns over the next 12 months?
 (Respondents were able to choose more than one answer.)

35
                                                                          Reduced revenue due
                          33%        Economic conditions        20%
30                                                                        to lower commissions
                                                                          Meeting the requirements
                          33%        Interest rates rising      10%
25                                                                        of new licensing

                                                                          Greater scrutiny
                          22%        House prices falling        8%
20                                                                        from regulators

                          23%        Consumer/household debt     3%       My brokerage failing
15

                                     Fewer lenders working
10                        26%                                   11%       Other
                                     through the broker channel
                                     Industry reputation
 5                        20%        damaged by rogue brokers

 0


                                                                        mortgagebrokernews.ca      65
 Special Feature
 2011 broker sentiment poll




                                 “
                                 this year, brokers did a
                                 complete about face, as
                                                                                             do you think you
                                 92 per cent said they have                                  might leave the
                                 no intention of leaving
                                 the business
                                                                                             broker industry in
                                 ”                                                           the next
                                 use tied selling to pull people in for
                                                                                             12 months?
                                 a mortgage,” said a broker from
                                 Leamington, Ont.
                                     There were some surprising positives
                                 compared to last year’s Broker Sentiment
                                                                                             92% - no
                                 Poll that reflect the improved economy. One
                                 of the most surprising findings of last year’s
                                 survey was the response to the question,
                                                                                             8% - yes
                                 “Do you think you might be leaving the
                                 brokering industry in the next 12 months?”
                                 Last year, 49 per cent of respondents said
                                 yes – a sign that some brokers were still
                                 feeling the pinch of the economic downturn
                                 or re-thinking their choice to be an
                                 independent businessperson. This year,
                                 brokers did a complete about face, as 92 per
                                 cent said they have no intention of leaving
                                 the business. That outlook was also
                                 reflected when 54 per cent of brokers




     what do you think will be the biggest change in the industry over
     the next 12 months? (Respondents were able to choose more than one answer.)
  25

                                                                       A massive drop in                     Lenders moving to e ciency
                                                            5%                                         16%
                                                                       overall broker numbers                bonuses as opposed to
  20                                                                                                         volume bonuses
                                                           25%         Big bank remote sales teams
                                                                       competing more heavily      10%       New commission structures
  15                                                                   with brokers

                                                            7%         Brokerages to merge                   Remaining big banks
                                                                                                       19%
                                                                                                             dropping mortgage brokers
  10
                                                                       Brokers as multi-product
                                                           10%                                         3%    Other
                                                                       sellers

     5                                                      4%         Brokers charging upfront fees



     0


66       mortgagebrokernews.ca
                                                                                                                                                     Special Feature
                                                                                                                                                      2011 broker sentiment poll




                                                                                               indicated they would be hiring staff this
                                                                                               year and of those who won’t be hiring, 82
on a level from 1 to 10 (1 being                                                               per cent said they won’t be reducing staff.

the lowest), how do you feel the                                                               Mortgage rule changes
federal government is handling the                                                             After the government announced early in
                                                                                               2011 that it would be tightening mortgage
issue of mortgage regulations?                                                                 qualification rules for ten second year in a
                                                                                                                        the
                                                                                                         4%
                                                                                               row, CMP wanted to hear from brokers
20                                                                                             about whether they think the Feds did the
                                                                                                                       nine
                                                                                               right thing and what effects the new rules
                                                                                                         3%
                                                                                               may have. The three main changes made
                              17%                                                              were a reduction in the amortization period
                      15.5%
                                                                                                                       eight
                                                                                               from 35 to 30 years; the lowering of the
                                                                                                         2%
     15%                                                                                       refinance limit of a home’s value to 85 from
15              14%                                                                            90 per cent; and the withdrawal of
                                                                                                         8%            seven
                                                                                               government insurance on home equity lines
                                                                                               of credit.
                                   10.5%                                                           Nearly half (45 per cent) of brokers said
                                                                                                       18%
                                                                                                                       six
                                                                                               a decrease in mortgage volume would be
10                                                 9%
                                                                                               one effect of the new mortgage rules. An
           8%                              8%                                                          15%
                                                                                               increase in consumer unsecured debt (36
                                                                                                                         vie
                                                                                               per cent) was also chosen as was an
                                                                                               increase in mortgage defaults (24 per cent.).
                                                                                                       26%
 5                                                                                                 “It will be harder for first-time buyers
                                                                                                                       four
                                                                                               (again), which will result in less people
                                                                                                       20%
                                                                                               purchasing entry-level properties,” said one
                                                         2%
                                                                                               broker. Said a Victoria broker, “Consumers
                                                                1%                             will be forced to carrythree interest rate
                                                                                                         1%             high
 0                                                                                             credit cards without the ability to utilize the
      1    2     3     4       5     6     7       8     9     10    ANSWERS                   equity in their homes, while the values of
                                                                                                             3%                  Two




 RATE ONLY RANKS 6                                                                                                                                                   th
                                                                                                                                 One




           in importance to Canadians when choosing a mortgage provider.
                                                                                                                                     SOURCE: CAAMP Survey, 2010




                                                                                          ...but you ONLY do rate!

                                                                              For information on how you can do more than offer great
                                                                                rates contact Wane Davis, VP Marketing & Business Development
                                                                              1-866-601-7632 · www.canadianfirst.com
                                               Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the
                                                  prospectus before investing. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated.


                                                                                                                                               mortgagebrokernews.ca                 67
 Special Feature
 2011 broker sentiment poll




 what percentage of your loans will
                                                                                                       “
 come from:                                                                                            people had to get their debt
                                                                                                       in line instead of using their
 existing clients
                                                         20%                 0-25%                     home equity or spending over
                                                                                                       and above what they could
                                                         20%
                                                         39%
                                                                       0-25%
                                                                             26-50%
                                                                                                       afford for a home
                                                                                                       ”
                                                         39%           26-50%

                                                         33%                 51-75%
                                                         33%           51-75%                         their homes continue to erode because of
                                                                                                      the changes.”
                                                          8%
                                                          8%           76-100%
                                                                            76-100%                       Not everyone agreed that the rules
                                                                                                      were uncalled for.
                                                                                                          “People had to get their debt in line
                                                                                                      instead of using their home equity or
                                                                                                      spending over and above what they could
                                                                                                      afford for a home,” said one Edmonton
 new clients                                                                                          broker. Others thought the rules will serve
                                                         22%                 0-25%                    homeowners well when interest rates
                                                                                                      eventually rise. “It will force some people
                                                         22%           0-25%                          to live within their means and there will
                                                         42%                 26-50%                   be less of a payment shock when their
                                                         42%           26-50%                         mortgages are renewed,” said a broker
                                                                                                      from Regina.
                                                         27%
                                                         27%           51-75%
                                                                             51-75%
                                                                                                      Business strategy
                                                                                                      When it comes to new business not much
                                                          9%           76-100%
                                                           9%                76-100%                  has changed during the past year. Last
                                                                                                      year 38 per cent of brokers said more than




   81% OF CANADIANS           don’t have a financial plan but think it is very important.
                                                                                                               SOURCE: Maritz Research Canada, 2010




                                                                            ...but you DON’T do plans!

                                                                                  For information on how you can offer financial
                                                                      planning contact Wane Davis, VP Marketing & Business Development
                                                                          1-866-601-7632 · www.canadianfirst.com
                                           Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the
                                              prospectus before investing. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated.



68   mortgagebrokernews.ca
                                                                                   Special Feature
                                                                                    2011 broker sentiment poll




     if an
     independent,
     would                           rank in order of importance
                                     (1 being the most important,
     you consider                    10 being the least),each
                                     marketing strategy that
     joining a national              you plan to capitalize on
     brokerage                       in 2011.

     this year?                      1. Email newsletters
                                     2. Social networking

     56.5% - no                      3. Direct mail
                                     4. Blogging
     11% - yes                       5. Seminars

     32.5% - if the                  6. Community events/trade shows

     right offer                     7. Ads in print publications

     came along                      8. Other
                                     9. Ads on radio/TV
                                     10. Yellow Pages




 what percentage of your business will come from: (Respondents were
 able to choose more than one answer and answers reflect the average for each category.)

80

70                                      33%           Residential         20%     Equipement Leasing

60
                                        33%           Commercial          20%     Referral
50
                                        22%           HELOCs              10%     Realtors
40

                                        23%           Insurance           8%      Other
30

20                                      26%           Reverse mortgages

10

 0

                                                                                mortgagebrokernews.ca      69
Special Feature
2011 broker sentiment poll




what percentage of your loans will be                              half their deals would be from new clients.
put through:                                                       This year, that percentage was 36 per
                                                                   cent. The biggest range was between 25
                                                                   and 50 per cent, as that was the amount
Banks                                                              of business that 42 per cent of brokers
                                  48%              0-25%           said they would be new this year.
                                                                       Residential mortgages are still the
                                 48%      0-25%                    mainstay of the industry, as they account
                                                   26-50%          for on average 67 per cent of the business
                                  26%
                                 26%      26-50%                   for the brokers who responded. As for
                                                                   where brokers will be looking for new
                                          51-75% 51-75%
                                                                   business this year, there were several
                                 14.5%
                                14.5%
                                                                   categories mentioned, including private
                                                                   mortgages (14 per cent), commercial
                                11.5%     76-100%
                                                                   mortgages (13 per cent) and HELOCs (10
                                11.5%              76-100%         per cent).
                                                                       Most brokers also seem to be happy
                                                                   with their situation, whether it be as
                                                                   an independent or as part of a national
non-Banks                                                          broker network. Eighty-seven per cent
                                  23%              0-25%           of independent brokers and 81 per cent
                                                                   of national network brokers indicated
                                 23%      0-25%                    that they had no plans to switch their
                                  28%              26-50%          status. As far as looking to amalgamate
                                 28%      26-50%                   with other businesses in their area, this
                                                                   year’s results showed a majority of
                                  24%
                                 24%      51-75% 51-75%            brokers (87 per cent) aren’t considering
                                                                   that option, up from last year when
                                 25%      76-100%
                                                                   nearly half of the brokers said it was
                                  25%              76-100%         a solution they were thinking about to
                                                                   stay competitive.




     which services will you be looking to build over the next 12
     months? (Respondents were able to choose more than one answer.)

     20

                                         33%         Residential               20%        Private Lending

     15                                  33%         HELOCs                    10%        Servicing


                                         22%         Insurance                  8%        Private Mortgages
     10
                                         23%         Commercial                 3%        Development


                                         26%         Equipment Leasing         11%        Construction
       5

                                         20%         Reverse mortgages

       0


70   mortgagebrokernews.ca
                                                                                                                           Special Feature
                                                                                                                             2011 broker sentiment poll




if part of
a national                                  do you use any of the following social
network, would                              networking programs?
you consider a                              (Respondents were able to choose more than one
                                            answer category.)
return to being
an independent                             35

broker this year?                          30
                                                                                                                            45%               Facebook


                                                                                                                            36%               LinkedIn
81% - no                                   25

                                                                                                                              4%              Twitter
19% - if the right                         20


offer came along                           15
                                                                                                                            16%               Blogging


                                                                                                                            24%               Never
                                           10


                                            5                                                                                 9%              Other


                                            0




YOU NEED TO DO MORE!
           Financial Planning, Insurance, Investments, Wealth Management, and MUCH MORE!

                                                                                                                      ...we DO!

                                                 For information on how you can do more for your customers
                                                           contact Wane Davis, VP Marketing & Business Development
                                                      1-866-601-7632 · www.canadianfirst.com
                       Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the
                          prospectus before investing. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated.


                                                                                                                      mortgagebrokernews.ca                  71
Special Feature
2011 broker sentiment poll




                             “                                                                              are you looking
                             a majority of brokers (89
                             per cent) said that they will
                                                                                                            at amalgamating
                             allocate the same amount                                                       your business
                             or more for their 2011
                             marketing budget
                                                                                                            with another
                             ”                                                                              from your area?
                                 The better economic outlook for 2011 also
                             seems to be having an affect on how brokers
                             are spending money on marketing efforts. A
                             majority of brokers (89 per cent) said that
                                                                                                            87% - no
                             they will allocate the same amount or more
                             for their 2011 marketing budget.                                               13% - if the right
                                                                                                            offer came along
                                 As the year progresses, it will be
                             interesting to see how the feelings and
                             thoughts of brokers may change as economic
                             and mortgage industry conditions fluctuate
                             depending on things such as interest rates,
                             the continued effects of mortgage rule
                             changes and most definitely the outcome of
                             the federal election.
                                 And as the year progresses, don’t forget
                             that CMP likes to hear your comments and
                             concerns anytime, so let us know if you think
                             there’s an issue we’re missing out on or
                             should be covering more in depth. We’re
                             happy to hear from you. CMP




 DON’T CHANGEdoYOUR BRAND,
     change how much you for your customers!
                                                    ...want to do more, CALL TODAY!

                                                             For information on how you can add Canadian First to your brand
                                                             and offer more contact Wane Davis, VP Marketing & Business Development
                                                                           1-866-601-7632 · www.canadianfirst.com
                                            Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the
                                               prospectus before investing. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated.



72   mortgagebrokernews.ca
                                                              PRESENTED BY




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COMMENCING MAY 1, CMP WILL BE COLLECTING SUBMISSIONS
FOR ITS TOP 50 BROKERS LIST FOR THE FINANCIAL YEAR FOR 2010

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