October 28th, 2014

Most People Need Mortgage Help

Despite the abundance of Internet mortgage resources, more than 6 in 10 Canadians say they still need help when shopping for a mortgage, according to a RateSupermarket.ca poll.

Most folks also value meeting their mortgage advisor in person. The survey found that only 27% didn’t think a face-to-face talk with a mortgage professional was important.

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October 27th, 2014

The Bottom is Zero

If someone ever tells you that bond yields won’t go lower, ask if they’re at zero yet. If not, yields can go lower.

Take our good friends in Germany, for example. Their 5-year government yield recently tumbled to an unthinkably low 8 basis points (0.08%). By contrast, Canada’s 5-year yield—which guides our fixed mortgage rates—is at 1.48%.

Germany and Canada are far from identical cousins economically and geopolitically, but that’s beside the point. The takeaway is that subdued growth and inflation can pound yields to the ground (long term), a scenario that Canada is not immune to.

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October 24th, 2014

Banker to Broker – III

In this last of CMT’s three-part series on bankers transitioning to the broker world, we chat with Véronique Sergerie.

Sergerie began her successful career at Desjardins where she was a mortgage rep for three years. Then, about a year ago, she moved to Mortgage Intelligence in Laval, QC, and she’s never looked back. Year-to-date she’s on pace to break $40 million in volume.

These are her thoughts…

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