Product News - November 2012

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A bite-sized guide to the industry`s newst products as they come down the channel.

Who: Home Trust
What: GIC Referral Program
The facts:
 The GIC Referral Program enabled brokers to expand their service offering by providing them access to Home Trust’s wide range of guaranteed investment certificates.
GIC investment in Canada amounts to more than $900 million annually. The Home Trust program helps brokers tap into this additional revenue stream and earn more fees.
Here’s rundown of some important details:
  • The lender estimates that a broker who sells two $50K in GICs per week (based on a 3 year term) could earn to $30K in additional fees per year
  • No formal certification is required to sell GICs
  • Home Trust provides brokers in the program will sales and technical training
  • Brokers also get ongoing support from the lender
What they say:
“The GIC Referral Program may not be for everyone,” says Gerald Soloway, CEO of Home Trust. “But it is well-suited for brokers who are committed to growing their business by providing clients with financial planning solutions for the future.”
“It’s important for brokers to stay connected to their clients and do more than just sell them a mortgage. It’s about building those relationships over time and offering them a range of products,” says Soloway.

Who: Radius Financial
What: RateWise Mortgage
The facts:
 The RateWise Mortgage is an option for clients willing to forego higher mortgage privileges for lower rates. This mortgage product is specifically designed for homebuyers who want greater savings while keeping some flexibility in their mortgage.
Radius points to a recent survey conducted by CAAMP as proof of market demand. It suggests 81 per cent of borrowers do not take advantage of their lump-sum privileges and 77 per cent don’t utilize increased payment privileges.  The Radius RateWise mortgage recognizes this sizeable market and rewards with the following privileges:
  • 5 year term @ 2.94% (2.99 in Quebec)
  • 10% annual prepayment privileges
  • 10% increase in payments
  • 60-day rate guarantee
Broker Compensation:
  • Broker compensation: 100 bps finder’s fee
  • Broker Benefits; up to 1,500 reward points
What they say:
“This mortgage product is specifically designed for homebuyers who want greater savings while keeping some flexibility in their mortgage,” says Suzanna Stefanec, VP of national sales and products at Radius Financial. “This product offers brokers the ability to service different markets and compete on rate while still rewarding customers with mortgage privileges.
“The marketability of this product is a competitive advantage for our broker partners and will help them achieve greater success!” 

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