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Mortgage Broker News | 10 Dec 2012, 10:10 AM Agree 0
Some say it’s a bad idea, other say it makes perfect sense. But last week, Dominion Lending partnered with Visa to become the country’s first mortgage company to launch its own branded credit card program.
  • Christopher | 11 Dec 2012, 04:40 AM Agree 0
    I trust no Dominion agent will object to rising unsecured debt ever again.
  • Paolo Di Petta | | 11 Dec 2012, 05:14 AM Agree 0
    Great way to kill industry credibility, Gary.

    This move really sends the wrong message.

  • Gary Mauris | 11 Dec 2012, 05:58 AM Agree 0
    18 years, wow, I would have been 26. That's a long time to be thinking about VISA cards. We have been working with VISA for almost 2 years to make this happen.It's a great way to deepen the relationship with the customer by offering additional products like the bank has done for decades.Of course VISA pays our agents and owners a perpetual residual based on total card spend for every card approval.It's nice to be part of the world wide VISA platform and the extensive advertising that VISA does to promote the card and loyalty programs.The credibility it brings to DLC from a consumer perspective is significant.
  • Brandi Pierik, AMP | 11 Dec 2012, 06:00 AM Agree 0
    Nice to see DLC leading the industry...again
  • James - BC | 11 Dec 2012, 06:45 AM Agree 0
    This article is not 100% accurate… DLC is not the first company in our industry to launch branded credit cards to the consumer, although they are the most recent. Sutton Mortgage Corporation launched the Sutton Visa about 15 years ago, they promoted the card heavily through advertising, their broker network, and through their extensive real estate network. Like DLC there was a large suite of Visa cards offered with different rates and benefits. In the end the consumer simply did not pick up on the card offering and it was dropped. When Sutton launched their card, the major players were the big five with some smaller companies offering Visa or MC products – there was less competition. Today we have companies like Starbucks that have tried to have credit cards, and if you ask that powerhouse consumer brand how it went… well… their credit card program was not a success and it was not renewed. That was after they spent millions in marketing dollars to promote the card.

    There are literally hundreds of examples of companies that have tried, and failed, to launch a branded Visa or MasterCard, companies that have brands that every man woman and child in this country know.

    The banks own the credit card market, particularly CIBC, who is the most dominant credit card provider in the country. We have a hard enough time competing for mortgages, going up against the banks on credit cards too? Is there an opportunity here to use the card to drive mortgage business… maybe… but I don’t think of my mortgage when I use my visa. In fact when I use my credit card I do not call it my CIBC Visa, or my Royal Bank Visa… I just think of it as my visa card. This could be seen as a great branding tool, but unless DLC is going to spend a fortune marketing the product direct to the consumer over an extended period of time, they are going to have a tough time of it. I wish them success however, a failed product launch can do a lot of damage to a brand, and it would be a shame to see that happen to one of our own.
  • Ron Butler | 11 Dec 2012, 09:17 AM Agree 0
    It makes no sense to attack Gary or DLC on this product offering and anyone who knows me knows I am not a DLC cheerleader.

    More products are better than less products and we can let the marketplace decide if the VISA offering is not renewed, maybe DLC will do a better job than Starbucks. Let's find out.

    As for those who say "never offer a high interest rate consumer loan product ever" I say "chill" the banks have been doing it forever and the world has not ended.
  • Kevin - Ontario | 11 Dec 2012, 10:27 AM Agree 0
    One upon a time I had a couple of credit cards with different companies, and now I have cards with only the banks. The rates I have are very competitive, and they have routinely updated me if a new product comes out with a better rate or better terms. My Visa is a cinch to pay off every month - I simply do a free transfer of funds from one account to the visa. Single sign on to my banking and no hassle. If I need to change information, etc – I make one phone call and all my accounts are done at once. Why would I, or anyone, get a credit card from DLC? The DLC card is not giving me anything special - and not as much as I can get from CIBC or Royal Bank from what I can see. The approval terms are not more aggressive through Dejardins (the provider of the card to DLC) than through the banks. So if I can get a good card with a bank, that has tons of convenience…

    I think we also need to look at the competition… Capital One has been in Canada for years, they spend millions of dollars every year on advertising, and they still struggle to pick up any market share. The only reason why they have any foothold is because for years they were granting a card to pretty much anyone who would qualify. That came back to bite them. Now they have launched a hugely expensive points program that has hit their bottom line hard. All to try to compete with the powerhouse card offerings of CIBC, Royal and TD – who have close to 85% market share just between the three of them.

    Good luck DLC, you are going to need it.
  • Steve | 11 Dec 2012, 12:12 PM Agree 0
    Gary, why do you always exaggerate everything you do? Your deal is not with Visa, I know 2 senior individuals from Visa Canada, and they never heard of you! Your deal is with Desjardin and you are doing a White label product with them! So stop making a big deal of something so small!
  • the truth | 11 Dec 2012, 04:47 PM Agree 0
    well Neither CMP nor Gary have been in this industry long enough to know that in 2005 TMACC launched branded Master card!
  • Bill Jones | 12 Dec 2012, 04:11 AM Agree 0
    I'm with Ron Butler on this. Credit cards, rate buydowns, paying referral fees - you may not like any of these business practices, but people/companies can and will do what they like. Unfortunately the playing field is anything but level in this business. I just hope the pursuit of a "competitive edge" isn't detrimental to the broker industry as a whole. Maybe it already is?
  • John Dearin RPA,. AMP. | 12 Dec 2012, 04:46 AM Agree 0
    With all due respect to Ron and other contributors on this forum, I offer the following:
    Isn't it amazing...most, most of the posters here bitch about the big bad banks and how they rate undercut us poor little mortgage brokers every day, how they are screwing us over by leaving the system, taking our name in vain, whine, whine, whine, sook, sook sook. Oh there is nothing more to the DLC CC than what the banks are offering…Oh someone else did this years ago and failed, so don’t anyone else try it. Oh the banks make it so easy for me to pay. Tomorrow, oh the banks undercut me by rate again. Will someone please make the banks stop! How do they do that?? By using the profits they make from the friggin business all you guys are passing over to them.
    Then, when someone comes alone with the gonads to take the banks on and bring the brokerage business more offerings, he is demonized. Will it be a tough sell? Yep. Was it done before? Yep. Did it fail before? Yep. After all that little organization called Capital One is losing money every day on their CC business. NOT.
    That Gary Marius is a real wing nut, what. Six years in and he has only managed to crawl to number one in the brokerage business. During your tenure in this business, might I ask what you have contributed? You go buy up bank credit cards, giving your money to the banks, even promoting the bank credit card over a brokerage card.
    Can one of you whiners point to one thing you have done to try to make life better for your brokeage? ONE?? Pick up the phone and demand that your people get you credit card cards, get you access to GIC’s, find you other sources of income. Then you will be too busy making money than to come here and whine.
  • Jim A. | 12 Dec 2012, 04:51 AM Agree 0
    I have to wonder...if mortgage brokers/agents are helping people to try to get out of high interest debt...then why is DLC and Gary Mauris thinking of offering a credit card that is actually through,,if I am not wrong,,a credit union. I am not trying to knock what DLC is doing by adding to their income stream but it seems it is not for the benfit of the client since this is just another debt the consumer does not need.
  • Paolo Di Petta | | 12 Dec 2012, 05:55 AM Agree 0
    My intention wasn't to bash Gary or DLC at all.

    My point is twofold.

    a) Credit cards are part of the problem, not the solution. The way I look at it, my responsibility is to my client, not my bottom line. Giving them more credit, in most cases, won't fix their situation - it'll make it worse - ESPECIALLY since credit cards often charge exorbitant rates.

    b) While it may be good for "business" and to "build client relationships", I feel it may do so in the wrong ways. While it's usually great to offer more products, it also comes at a cost - are all products offered in the best interest of the client? Or are they in the best interest of the service provider?

    Obviously, there's some sort of compensation to agents for this, which I personally feel opens up a potential conflict of interest.

    This has the potential to tarnish the recently recovering image of the industry.

  • Jason Nugent | 12 Dec 2012, 06:05 AM Agree 0
    What I don't get is, why would I keep my CIBC Visa or RBC Visa when neither one of those companies support you? Even if you don't think DLC should have its own Credit card, at least re-evaluate who you personally do business with every day. Support those who support you. I personally think it's great that DLC has another tool to help retain clients. Ron Butler said it best, more tools are better than less tools. To those who think we are contributing to the debt crisis, if you look at the options we are actually helping reduce it, by offering a lower interest card. We can use our knowledge and experience to help educate our clients and get them out of debt. I'm now waiting for Gary to announce DLC getting an unsecured line of credit so that we can continue to help our clients every way we can. It might take a couple more years, but no one thought we could get a credit card. We need to do everything we can to grown this business and that means keeping your clients in your office and not back in their branches.
  • Cameron Mackie | 12 Dec 2012, 07:07 AM Agree 0
    The changes in our industry leave you with two options, innovation....or dust in your lungs.

    DLC is the one company that sticks out from the rest, having "Lending" in the name and not "Mortgage" is the reason why DLC should offer these cards alongside of their mortgage and leasing services. Together with their Don Cherry ads and powerful campaigns, this product will do great.

    It’s understandable this service will not be our bread and butter, just a perk to help the shortfall of the commission cuts that happened earlier this year and most likely what’s expected for 2013.

    I have several clients just this past year ask me if I can do a unsecured loans or credit cards. Now I can say yes.

    DLC started in 2006 and is number 1 in the broker industry, numbers don’t lie. As stated before, if anyone can do it, it’s DLC.

    Looking forward to selling this new product in 2013, good work Gary. As for the others, enjoy the dust in your lungs….
  • Spartan | 13 Dec 2012, 04:03 AM Agree 0
    To Kevin in Ontario.

    Both cards are travel cards

    I have a Royal Bank Platinum Avion card
    120 year fee
    21.99% on cash advance

    DLC Low rate Gold Card
    50 year fee
    9.9% on cash advance

    all other features are basically the same

    Which one would you rather have???
  • Cory | 13 Dec 2012, 05:58 AM Agree 0
    By funded volume and funding ratio DLC is not #1, so I am not sure why I keep reading that. Are they the loudest? absolutely. That does not make them #1.

    I disagree with a lot of Gary Mauris confrontational, in your face, style (don't shoot me, just my opinion based on following a lot of his comments on sites like this, and listening to him speak at events).

    All of that being said, I think his work on this Visa idea is fabulous for his franchisees. All of the people out there crying foul about how this is the wrong message is likely missing one extremely significant point..........the point is: people are going to find credit cards, regardless of interest rate, regardless of provider, regardless of education. People need them, want them and will end up with them, in spite of any other beliefs. DLC has done a good job having the understanding of this simple fact, and then capitalizing on it. It is a no-brainer, simple addition to their product line up that allows their franchisees to provide more to their clients, moving towards being considered a true alternative to their bank. To me it is a prudent business decision and nothing else.

    I suspect it will likely end up having the penetration similar to insurance, leasing, etc, which by industry averages is very low, but at the end of the day this is a step that truly differentiates DLC and I commend them.

    DLC is on record of telling a lot of stories about how they are the only Brokerage that offers X, when in reality most of them offer X and sometimes X+, but with this offering they truly are the only ones......for now. Good for you Gary!
  • Geoff Willis | 13 Dec 2012, 05:59 AM Agree 0
    Simply put, brokers need more reasons to interact with a client...not less. Like it or not, our clients need and use credit cards and this new DLC branded Visa is a means for brokers to meet this need. Balance transfers post Christmas at 4.9% for 5 months provides us an opportunity to play a role in credit counselling with our clients in the New Year. It's easier to retire debt at 4.9% than 21.9%. We should look at this as opportunity to develop a relationship with a client rather than just another also ran product that someone had offered previously with little or no success.
  • Lee Perry | 14 Dec 2012, 02:05 AM Agree 0
    Interesting comments to say the least. I have heard comments that there is a conflict of interest, bad idea for the industry and the list goes on and on. People need credit cards period. Have you ever tried to book a hotel room online without a credit card? Have you ever flown and tried to pay for a meal on the plane with cash? You just can't do that in today's world. I can't speak for how Desjardin are going to qualify the client for the credit card but we are not talking about every client getting a $25,000 limit here. As for the conflict of selling the card, for all of those people that send YOUR client to a bank and try to get them back after 5 years, or earlier, do you not think the banks are cross-selling them on every available product to try and make them clients for life? That is why the Maritz stats are so high for retention and why more lenders do not need to pay a renewal or trailer fee. The branch acronym they use is SR (sales revenue) and bank employees get bonused on their sales of ancillary products to YOUR clients. You can love Gary or hate him but after being in this industry for more than 10 years it is refreshing to see a person and a brokerage with creativity, passion and a commitment to take away the transactional philosophy that permeates throughout the industry and generate another revenue stream for his people. Gary don't ever stop being a leader!!
  • Kevin - Ontario | 14 Dec 2012, 05:20 AM Agree 0
    Spartan... if you have a rate of 19.9% on your RBC card, then you probably should have asked more questions before signing on the dotted line. My RBC Avion Card has a rate of 9%. We talk about how bad the banks are because they don't offer the consumer the best rate all the time. As a broker, you of all people should know to ask questions and read the fine print before you sign anything.
  • Peter Browne, Broker, Mississauga | 15 Dec 2012, 09:58 AM Agree 0
    I see a few problems with this offering, the first being customer loyalty to the Agent or Broker. Once a client obtains this card, they may become loyal to the broker network/chain, but not to their agent. When they want to refinance, who are they going to call? Their agent whose business card is somewhere stapled to their old commitment or the 1-800 number on the back of the card? Will the call centre refer them back to that individual or to just any agent? Or will they start taking applications themselves and kill the independent agent business model? This issue is avoidable, of course, by offering customer service for Visa cards at the agent/broker and brokerage level, but then Agents would need to be compensated for both their time spent on Visa CS and for any loss of business because their time is spent on CS rather than on generating leads. Mortgage Agents and Brokers are experts on one segment within the financial industry, that being mortgages, of course, and selling the consumer debt to people that we refinance their houses to get them out of doesn't seem like a wise move to me. Personally, if I was with DLC I would be jumping ship to another brokerage ASAP (but that's just me).
  • Spartan | 19 Dec 2012, 05:35 AM Agree 0
    to Kevin in Ontario

    The annual fee??
    Your cash advance rate??

    Also, I am not a broker but a consumer. Not everyone on here is a broker
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