A Broker's Life
Michael Hallett • October 27, 2015
What you think I do and What I really do!
The primary purpose for producing this piece was to try and demystify the job of a Mortgage Broker. By now everybody that has a mortgage has heard about Mortgage Brokers. Whether they have decided to use the services of one is a completely different topic all together. Having said that, the market share of borrowers 'using their banks' still swings in their favour at a staggering 70%. I'm excited to be part of the push for equal or greater market share...but let's get back to the topic at hand.
This idea came to me while I was speaking to a colleague of mine about a recent file she was working on. It was a difficult one with multiple layers and barriers to mitigate before a lender would accept it. In the end, she got the 'file complete' status that we as Brokers all seek. At the end of the process the client was very grateful, but admittedly said that he was really unsure what she as a Mortgage Broker really does. This is where the idea was born.
What Do You Think I Do?
Here's what a quick Facebook poll unveiled after posing this question, In my quest to write fun and sometimes 'different' mortgage content for my blog I want to ask my NON-mortgage broker friends on Facebook a simple question. What do you think I do? Everybody has a different opinion of what Brokers really do. I knew there would be some fun jabs, but here is what was sourced.
- You lay with your feet up on the couch watching sports all day...answering the phone when it rings.
- You sit around, drink coffee, wait for the files to roll in then hit the pub for afternoon drinks...
- Laundry, cleaning, cooking, napping
- Match potential homebuyers with the mortgage product that best fits their needs. And you do this by knowing what your customers wants/needs are and being aware of what programs are available and which company offers them.
- A fellow broker replied with an image, which I felt was very appropriate. It was the Dos Equis XXX actor with a caption that read "I don't always make it rain, but when I do, it's usually rolls of quarters." Some friends think I sell cash.
- Broker on Wall Street juggling multiple phones on-the-go!
Further to the crowd-based outsourcing, I also found another image online that made me chuckle and thought it was appropriate for this piece as well. I summarized the image into 4 points below. As individuals we all have our own sphere, people that we look up to and depend on, whether it's for advice or friendship. All of those individuals have opinions. And the more I thought about the graphic I found, the more it made sense as I've had these very conversations with these people in my life as to what I do.
- My friends think all I do is go from one party to the next trying to drum up business.
- My mom still thinks I work on cases (no, I'm not a lawyer) sitting in a boardroom having cerebral conversations with other high level executives.
- The general public thinks I am a slippery car salesman wearing 70s clothes and a pinky ring while dangling a cigar from my month.
- My clients (might) think that all I do each day is sit back and calculate my future commission cheques.
What I Really Do!
Mortgage Brokering is the career path I chose six years ago. At the time I made the decision to pursue Brokering I thought it was a job. I know now that is an incorrect statement, it's a lifestyle that I live. It's not a regular 9AM-5PM-Monday-to-Friday-with-5-weeks-of-vacation-and-employer-double-up-RRSP-contributions-a-year-job. It's much more complex than that. For starters, I have to be 'on' and engaging all the time. I don't power down because the moment I do I could miss an opportunity and opportunities don't always come around in the same shape. I have a duty to my next client to be:
- up-to-date on all the current real estate market data,
- changing lender interest rates (and why),
- economic influencers that trigger the market,
- constantly changing lender guidelines,
- know how to structure a file when it lands on my desk, quickly and efficiently.
Right now I'm fairly certain that all my Broker friends are nodding their heads agreeing with me.
Creating an exceptional experience for that one client could mean one or more referrals from that very client in the future. A referral is the ultimate testimonial. Each client is treated like they are the only one I am working with at that present time.
As Mortgage Brokers we all operate our business differently. I have chosen a business model where most of my business flows from professional referral sources; accountants, financial planners, lawyers, Realtors, bank representatives, property managers, stock brokers, developers, professional recruiters, home insurance providers, commercial brokers and so on. These professionals are key to my success as I have positioned myself as a resource. One that can assist with every aspect of a mortgage transaction and beyond. I am able to connect people. They are all people I share a common thread with - we KNOW, LIKE and TRUST one another. This is the basis for a natural flow of referrals. You're likely asking yourself, why am I bringing this up. The answer is because this is what 'I DO.' I get to know the people I work with on a personal level to form a friendship. If there is no friendship, just personal monetary gain, then there will not be a long lasting business relationship. I have seen a couple of referral sources come and go over the years where personal gain was the only thing top of mind for the other party, needless to say we are not working together anymore. The act of getting to know someone is quite simple, just ask questions then sit back and listen. Then take that information and store it, I guarantee you it will become very handy in the future.
An exceptional Mortgage Broker is also an exceptional story teller. All my clients have their own unique individual story and it's up to me to tell that story to the audience - the potential lender we are pursuing. The ultimate goal throughout the application process is simple, minimize the stress level of the borrower and complete the task quickly with comprehensive updates along the way. This is done by structuring the file accordingly, providing detail. I must admit I've got the process dialed. It's so good, that I have quite honestly surprised myself a few times on a few difficult files. I put a lot of pressure on myself to tell a seamless story.
Providing an abundance of detail helps to break down the barriers of entry, this being access to the lenders financing. My goal at the start of the application process is to receive an approval without receiving a call or an email from the lenders underwriter. When I accomplish that, then I have done my job successfully. It's quite simply the easiest part of the process. All I have to do is answer questions about the property, income source, down payment source and credit history - just 4 things!
All lenders have a different appetite for risk, knowing how to mitigate and answer those risk questions is all part of managing this business. Once this is all tabulated then the financing is guaranteed, right? One would assume (never assume...you know the rhyme) that 'a mortgage is a mortgage,' WRONG! Every mortgage file is different. In my short 6 year tenure, I've never seen one file that is exactly the same as a previous one. There are definitely elements of one that might be similar, but this business does not have a template. The round hole, square peg scenario happens a lot in this business. It's up to me to shave down the edges of the square peg to squeeze it into the round hole. There are definitely ones that come together easier than others, but there are also files that consume my day, even multiple days. Again, I can sense my Broker friends nodding their heads.
The most important role 'I do' through the application process is to assume the position of an Educator. I entered this business knowing that I wanted to learn from my mistakes in the past. As a first time mortgage consumer I had relied on my bank to advise me accordingly and to educate me and to help me make the right decision. Instead I got what would work best for the banks shareholders. Knowing what I know now I don't think they did their job. I should have done my own research and ask the right questions. I learned the hard way. From day 1 (August 30, 2009) I vowed to provide as much information to my clients as needed to help them make an informed and educated decision. One that would benefit them and their family, not the lender. Knowing that my clients are advised correctly provides me the confidence in knowing they will instruct me on the path they would like to follow.
Processing mortgage files is just a half of what I do. Of course the other side is marketing. How does the rhyme go? - 'you gotta spend money to make money.' To generate business or potential clients I have to get out and meet with as many people as possible and let them know what I do. I try to attend as many networking events as a I possibly can. Heck, I even attend industry functions and conferences as you never know when a Broker-to-Broker conversation will lead to placing the 'next' file or an unforeseen opportunity. The glamorous life of a broker also involves endless coffee meetings and luncheons along with relentless periods of time spent on the phone with clients and lenders. I am constantly building the fortress around me. I have made a conscious effort to always utilize the same suppliers; lender(s), lawyer, appraiser. By maintaining focus on a select few it sometimes can pay in spades. At times this business presents strict or short timelines where having a solid relationship is key. If I need to place a rush on a file or ask for an exception or need some legal advice I know I have someone that I can rely on. If not, these calls usually end with 'sorry I'm too busy..' or 'who is this..' or a flat out 'no.' It's not what you know, but who you know in this small world of Brokering. Building solid reliable relationships is vital for survival is this business.
So, what do I do as a Mortgage Broker?
I strive to build long lasting relationships with my referral partners, clients and providers. I structure intricate applications by telling detailed stories about ones past, present and future. I am dedicated to providing the best options to fit one's current lifestyle and future long term goals through education. I share ideas and experiences about my mortgage practice, what has worked and what has not. I am continuously planting seeds like a farmer, never knowing when I will be called on. I work for the client, not the lender. What do I really do?
I am a connector! I connect my clients with the correct financing as well as connecting them with other real estate related professionals.
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One of the most common questions, “how long does it take to get pre-qualified?” My response, “how fast can you provide the information I need.”
Playing in the forest today. Always fun exploring. #mountainbikingmortgagebroker
Mortgage Brokering meets mountain biking and craft beer. A couple months ago I set for a bike ride with the intention of answering few mortgage related questions, mission accomplished. Any good bike ride pairs nicely with a tasty beer which we enjoyed @parksidebrewery. Hope you see the passion I have for brokering, biking and beer. @torcabikes #mountainbikingmortgagebroker
My thighs were cold all day, it was ‘that’ deep. I was choking on snow all day.
The weather report was 36 cm of new snow, it was more like 45-50 cm of light deep powder. Insane day of skiing.
Spotted a ski-bunny today @kirstinjhallett so I trapped ‘er. 📸 credit @troy.hartley
Aidan leading the pack up the Lemming Line in seek of fine fresh powder.
Beautiful British Columbia! A cold winter day at its finest.
Aidan and I braved the -19C temperature and windy conditions for the boot to knee deep turns...it was a no-brainer.
Happy Holidays. Seasons Greetings. Merry Christmas. All the best from Kirstin, Aidan and Michael. Enjoy your family time.
Snow report for today was boot to knee deep in places. Simply an awesome day rippin’ with the kids, I had to show them that I still got it. 📷 credit @jhalskiing
It’s that time of year for my annual post, the Christmas Tree pilgrimage. The only that changes year after year is that Aidan gets taller! Not to worry though, the Canadian tuxedo jacket remains the same. HAPPY HOLIDAYS everyone. Much love to all.
Fresh wood in the morning...where is this treasure trail going to take me?
TEASER alert...at thats what I think they call it in the business. Years ago a wrote a blog called BEERS BIKES AND MORTGAGES. I some how (in my head) blended all 3 topics into 1 blog. Simply put, I enjoy aspects of all 3 with each of them providing something different. I re-united with the talented Regan Payne on a project that I think will shed a bit more light on who I am and what I do. #craftbeer #mountainbike #mortgagebrokerbc #dlccanadainc
Here is to looking forward past injuries, feels good to be riding again. It was a 18 week grind!
Extreme tubing, watch until the end. Aidan manages to hold on.
Lake life as a passenger is a good life. Captain @kirstinjhallett . #woodlake #kalamakalake
Yet another reason why our license plates say BEAUTIFUL BRITISH COLUMBIA on them. An evening enjoy the view on Pitt Lake.
Surfing! Don’t need functioning hands to surf. It was nice to do something active. Thanks @jordspring #sakinaw
Good thing there were a few other vehicles with winches on the front.
He was OK, thumbs up. The roll cage and 5-point seat belt did its job.
My sons intro to operating a side-by-side on his own. Watch to the end.
The Lookout over looking Tulameen BC. Took some 4x4ing to get there, but we did it.
The day started out great. Exploring the back country roads of BC, Stave Lake area. Views of Alouette Lake in the background
Impromptu ride on Burke. I dreamed of the day Aidan would ask to go for a ride...today was the day, “Dad do you want to go for a ride?” Heck ya, let’s go! This was a fun feature at the end.
An afternoon of exploring the Stave Lake zone. Planning to return soon once the snow melts to get some vertical.
Found a fun little gap-drop to session. I have my moments when I like my tires leaving the ground.
This would have been a fun stunt once upon a time!
And so it begins...another tool for adventuring! So different so fun!
You know it’s steep when your hand is touching the snow, high risk high reward.
The snow report suggested 8 cm had fallen, it was more like 25-30 cm.
Now that he has a dirt bike the hunt is on for me too. This is the first ride trying to figure out the timing of the throttle, clutch and brake...second ride was even better.
Exploring Pinecone Burke Provincial Park a month ago with @troy.hartley. Standing in the site of the old ski lodge.
A well weathered tree coming through yet another winter with Yak Peak 2,039 metres in the background. Putting my limited artist talent to the test, these iPhones and filters making anybody a photographer.
A successful reconnaissance mission we crossed Falls Lake, ski toured up towards Zopkios Peak 1921 m. It was a exceptional picnic destination. The skiing was shit!
Who’s is going to go first?...I’ll go if you don’t! No friends on a powder day! @j_penner70 📷 @sheascottcolpitts
An epic day. Everything was perfect. Depth of Snow. Visibility. Temperature. Even the company.
In the green room today on the best coast amidst winter...not a bad place. 📷 @dgm_images
I saw this hat on Instagram, that very moment I knew I needed it. As a BC boy born and bred The Outdoorsman hat needed to be added to my collection. As someone who loves BC and most things outdoor, I’m now glad I have a cool hat to wear and fly the flag of BEAUTIFUL BRITISH COLUMBIA. It will be in my bag for all post-exploration celebratory cold pints. If you want to check them out or add one to your collection go to @nineoclockgun ...and yes my facial hair matches the hat as well.
When two of your ski buddies are 13 years old, you know you’re raising rippers. @paigerriley
My ski buddy getting untracked turns. It was knee to thigh deep all day for him, only shin to knee for me.
We went for a snowshoe this afternoon, but we probably should have considered taking our flippers instead. Our timing was off by one day.
From sea to snow capped peaks, it’s obvious why Vancouver and BC continue to be one of the best places to live. It’s engraved on our license plates, BEAUTIFUL BRITISH COLUMBIA.
Ancient blue glacier ice craving out deep valleys. It’s pretty cool standing underneath one...photo credit @dustanwoodhouse
This is a great start to the day!
No better way to share the great outdoors than with friends. @troy.hartley @mike_ilic711 @j_penner70
The ski out back to the truck was more of an adventure than we bargained for...
Exploring the BC backcountry, it did not disappoint...it never really does.
Thank god we are all narcissistic and have the ability to take pictures of ourselves 🤪. This is taken pre-turkey dinner, I’m sure we will all be back in our comfy clothes soon! Merry Christmas!
The crew shredding some turns , it was a 23,000 vertical foot kind of day.
Happy belated Hanukah, Merry Christmas and Happy Holidays to all. Be sure to enjoy the festivities.
Top of Swan Falls. I’ve said it many times before and I will say it again, our license plates say it all. BEAUTIFUL BRITISH COLUMBIA. #gooutside
The coveted annual mission to get our Xmas tree, with of course my Canadian tuxedo jacket on.
Yet another reason (unlimited really...) of why the Left Coast is the best coast! @tami0777
Moss, a non-vascular plant and Mother Nature’s carpet reclaiming the forest.
Capitalizing on a break in the wet coast rain storms.
Just follow the brown line switchbacking through Mother Nature. She’s so damn beautiful!
Day 3 for Black Magic was a bit snowier than initially expected. Thanks to the person who took a few minutes to build a snow creature.
Beauty day for a ride! I should have considered bringing my touring skis.
The West Coast is the Best Coast. #nofliter at sunset.
This was Day 1 on my @yt_industries Capra Pro 29. I thought the last bike was the best, it was a Capra Pro 27. I never thought the small differences in geometry and wheel size would have such a huge positive impact on my riding. Boy was I wrong! Best bike ever!
Oh boy! See a toy...buy a toy! New steed! YT Capra Pro 29 hitting the trails soon.
A tasty beverage while on the water yesterday from @backcountrybrewr and @backcountrybrewing
Epic ride with boys yesterday. Into the Mystic, Last Call, Happy Hour and Lord of the Squirrels. 5 hrs 15 mins, 31 km and 1,397 vertical metres.
Whistler slick rock is my favourite.
Wood to wood gap in Whistler.
Passing underneath the Ironworkers Memorial Bridge on the return journey of dinner-by-boat. No filter.
And now the training starts for Paris 2024 summer olympics.
Archery target: before, during and finished.
Aidan’s first day in the Whistler Bike Park, he had a blast and we rode trails I didn’t think we’d ride 😳. I’m sure we’ll return soon enough.
A rare sighting at the Whistler Bike Park, it’s been at least 10 years.
When the opportunity presented itself, I couldn’t pass up one of my favourite slick rock rolls.
Pre-dinner antics...it’s totally safe!
Aidan is captaining the watercraft, mom in just the passenger. Kalamaka Lake.
#Drewmboat camo @parksidebrewery
Safety first when roasting marshmallows.
Great place to press snooze for 20 minutes. Chez Labowka.
Raw kale. Just not the same as a kale caesar salad.
Saratoga Beach fire.
Canadian tuxedo.
Happy Canada 🇨🇦 Day to everyone near and far. I hope it’s a kick ass day. Play safe.
The @yellowdogbeer squirrel chaser or otherwise known as the chew toy was a hit with me and Moka Labowka
It’s always fun to start the trail with a repel. #mountainbike #climbing
It only took me a half dozen or so tries but I managed to cross the halfway line. This old guy still has it! Fun times.
Follow your path, at times you never know where it’s going to take you. Trust the outcome. Having fun in The Green Room.
This old guy was collecting a few air miles today.
Going vertical. #slickrock
I have a ski buddy, now it’s time to train a biking buddy.
I’m really looking forward to riding this gem once it re-opens. #burkeinmybackyard
Enjoying a distanced beverage with @senorwad @yellowdogbeer
Aidan and a couple buddies are now members at the Pitt Meadows Golf Club. @greggmcnally @genevemcnally @wendy22boddy @jaradboddy @kirstinjhallett
Raw and unedited. Old school skinny with a drop at the end.
I’m still HOME ALONE! Looking forward to the day when I’m able to have some friends over to share these @backcountrybrewing Widowmaker IPAs. #backcountryphotocontest
Zoa Peak, Coquihalla summit 1,500 vertical metres of skiing.
Distancing myself from the real world!
The dry land version of the @andrei_svechnikov37 lacrosse-style goal executed Aidan.
Skis or bike? Bike. The snow won’t stop me.
Does anybody need or want any firewood? It’s free...you come pick it up.
I needed to buck up the trees they fell in the last wind storm. Task complete.
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Cashback Mortgages: Are They Worth It? Here’s What You Need to Know If you’ve been exploring mortgage options and come across the term cashback mortgage , you might be wondering what exactly it means—and whether it’s a smart move. Let’s break it down in simple terms. What Is a Cashback Mortgage? A cashback mortgage is just like a regular mortgage—but with one extra feature: you receive a lump sum of cash when the mortgage closes . This cash is typically: A fixed amount , or A percentage of the total mortgage , usually between 1% and 7% , depending on your mortgage term and lender. The money is tax-free and paid directly to you on closing day. What Can You Use the Cashback For? There are no restrictions on how you use the funds. Here are some common uses: Covering closing costs Buying new furniture Renovations or home upgrades Paying off high-interest debt Boosting your cashflow during a tight transition Whether it’s to help you settle in or catch up financially, cashback can offer a helpful buffer— but it comes at a cost . The True Cost of a Cashback Mortgage Here’s the part many people overlook: cashback mortgages come with higher interest rates than standard mortgages. Why? Because the lender is essentially advancing you a small loan upfront—and they’re going to make that money back (and then some) through your mortgage payments. So while the upfront cash feels like a bonus, you’ll pay more in interest over time to have that convenience. Breaking Down the Numbers It’s hard to give a blanket answer about how much more you’ll pay since it depends on: Your interest rate The cashback amount The mortgage term Your payment schedule This is why it’s important to run the numbers with a mortgage professional who can help you compare this option with others based on your personal financial situation. Are You Eligible for a Cashback Mortgage? Not everyone qualifies. Cashback mortgages generally come with stricter requirements . Lenders often want to see: Excellent credit history Strong, stable income Low debt-to-income ratio If your mortgage file includes anything “outside the box”—like being self-employed or recently changing jobs—qualifying for a cashback mortgage might be tough. What If You Need to Break the Mortgage? This is one of the biggest risks with cashback mortgages. If your circumstances change and you need to break your mortgage early, you could be on the hook for: Paying back some or all of the cashback you received, and A prepayment penalty (typically the interest rate differential or 3 months’ interest—whichever is higher) That can be a very expensive combination. So if there’s even a chance you might need to sell, refinance, or move before your term is up, a cashback mortgage might not be the best fit. Should You Consider a Cashback Mortgage? Maybe—but only with eyes wide open. Cashback mortgages can be helpful in the right scenario, but they’re not free money. They’re a lending tool that benefits the lender , and the key is knowing exactly what you’re agreeing to. Final Thoughts: Talk to an Expert First Choosing the right mortgage isn’t just about the lowest rate or the biggest perk—it’s about making a choice that fits your whole financial picture. If you’re considering a cashback mortgage, or just want to explore all your options, let’s talk. As an independent mortgage professional , I can help you weigh the pros and cons of various products, so you can make a confident, informed decision. Have questions? I’d be happy to help—reach out anytime.
Thinking About Buying a Second Property? Here’s What to Know Buying a second property is an exciting milestone—but it’s also a big financial decision that deserves thoughtful planning. Whether you're dreaming of a vacation retreat, building a rental portfolio, or looking to support a family member with a place to live, there are plenty of reasons to consider a second home. But before you jump in, it's important to understand the strategy and steps involved. Start with “Why” The best place to begin? Clarify your motivation. Ask yourself: Why do I want to buy a second property? What role will it play in my life or finances? How does this fit into my long-term goals? Whether your focus is lifestyle, income, or legacy planning, knowing your “why” will help you make smarter decisions from the start. Talk to a Mortgage Expert Early Once you’ve nailed down your goals, the next step is to sit down with an independent mortgage professional. Why? Because buying a second property isn't quite the same as buying your first. Even if you’ve qualified before, financing a second home has unique considerations—especially when it comes to down payments, debt ratios, and how lenders assess risk. How Much Do You Need for a Down Payment? Here’s where the purpose of the property really matters: Owner-occupied or family use: You may qualify with as little as 5–10% down, depending on the property and lender. Income property: Expect to put down 20–35%, especially for short-term rentals or if it won’t be occupied by you or a family member. Your down payment amount can be one of the biggest hurdles—but with strategic planning, it’s often manageable. Ways to Fund the Down Payment If you don’t have the full amount in cash, you might be able to tap into your current home’s equity to help fund the purchase. Here are a few ways to do that: ✅ Refinance your existing mortgage to access additional funds ✅ Secure a second mortgage behind your current one ✅ Open a HELOC (Home Equity Line of Credit) ✅ Use a reverse mortgage (in certain age-qualified scenarios) ✅ Take out a new mortgage if your current home is mortgage-free These options depend on your income, credit, home value, and overall financial picture—another reason why having a pro in your corner matters. Second Property Strategy: It’s More Than Just Numbers This purchase should be part of a bigger financial plan—one that balances risk and reward. It’s about: Assessing your full financial health Maximizing your existing assets Minimizing your cost of borrowing Aligning your purchase with your long-term goals Ready to Take the Next Step? There’s no one-size-fits-all answer when it comes to buying a second property. That’s why it helps to talk things through with someone who understands both the big picture and the small details. If you’re ready to explore your options and build a plan to make that second property dream a reality, let’s connect. I’d love to help you take the next step with confidence.
