October 22nd, 2014

The BoC’s Magic Number

Apart from the abhorrent incident on Parliament Hill, today’s BoC rate announcement was relatively dull. The bank left the key interest rate untouched, something we’ve seen for the last 33 rate meetings (and counting).

But one thing it did do was reinforce a key number: 2%. Two percent is the Bank of Canada’s

  1. Inflation target
  2. Long-term economic growth estimate
  3. Long-term inflation outlook

These three figures (more specifically, the inflation target, growth and core inflation) are primary drivers of Canadian mortgage rates. Here’s more on what the bank said about each in its statement today:

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October 18th, 2014

Banker to Broker – II

In this second instalment of our three-part series on bankers becoming brokers, we interview Scott Westlake from Dominion Lending Centres, Denova Group. Westlake started in the mortgage business in 2008 as an RBC mortgage specialist. He left the bank in 2011 to become a founding partner of Denova Group, a broker team that now originates hundreds of millions in volume. 
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October 17th, 2014

Banker to Broker

Income potential, independence and consumer benefit: these are three big reasons why bank reps switch allegiances to become mortgage brokers.

But the changeover isn’t always easy. One brokerage executive (who didn’t want to be named) recently told us, “My experience has been that typically [bank reps] only do a quarter of their bank volume (the first year) because they find the transition tough.”

That may or may not be representative of the entire industry, but suffice it to say, there’s a learning curve to becoming a broker. There’s also the adjustment period that goes along with no longer having a bank’s support, branding and leads.

Some of the country’s most successful ex-bankers-turned-brokers attribute their success, in large part, to the support they got from their brokerage. In this three-part series, we get feedback from three brokers who used to be bankers, starting with Invis’s Diana Lee.
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October 15th, 2014

Working with Self-Employed Clients

Entrepreneur plan to startup success

Nick Tsimidis, Special to CMT

Self-employed borrowers have long been perceived as higher-risk applicants. It’s not surprising that they took it on the chin when the government started tightening mortgage rules.

That’s unfortunate, however, because this segment includes more people than one may think: lawyers, architects, accountants, contractors, mortgage professionals, investors and so on.

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News on Canadian mortgages, mortgage brokers, and mortgage rates.