New broker network in town

New broker network in town

New broker network in town It may be in its early days, but Broker Financial Group already has hundreds of brokers and is set to take on the rest of the industry.

“Basically we’re coming out with a lot of auxiliary products, we’re trying to revolutionize the mortgage industry in a lot of ways -- there is a new network in town,” Jason Singh of Broker Financial Group told “Technically that’s the realm we’re playing in but I really want to go into the market share of the banks – I don’t want to go after other (network’s) agents, but if you were to put it out there the other networks would consider us direct competition.”

The network currently boasts between 300 and 400 agents and is hoping to reach 1,000 in the near future.

It plans on establishing 20 offices within the first six months in Ontario before expanding across Canada. Brokers who join can choose from two model – a flat-fee model and a 95/5 split, depending on how much autonomy they desire.

“We want to back independents up if they want to stay independent and give them access to our back-end support.”

Others, meanwhile, can franchise their own Broker Financial Group brokerage.

And the network has already lured brokers from across the industry to join.

“Some of them are still with their current brokerages and they are transitioning over. A lot of them are with a lot of the other networks … some may be Invis, some may be Centum, some may be Verico,” Singh said. “Some of them are independents as well who will be joining our network to capitalize on some of our auxiliary services.”

Singh, who is the current broker of record, has been in the business for ten years and he believes diversification is the key to winning market share from the big banks.

“The auxiliary products we are bringing into the market: insurance partnerships, there’s going to be financial planning; we’re going to handle everything a bank does,” he said. “We’re going to try to add that to the whole mortgage broker experience.”
  • Ron Butler 2015-07-06 3:32:12 PM
    I wish Jason all the best, doing something new and growing a business from a standing start is super hard and it should be commended. Anyone who tries to create something from nothing in the business world needs sincere props because private sector employment growth is what this country needs.

    The interesting thing is that both Jason and John Bargis at CIMBC have expressed the desire to offer better deals to brokerages and as a pass through better deals to brokers and agents across the country. Ultimately this has to be addition by subtraction and Jason was very honest and mentioned in this article agent / broker and brokerage take-away from Invis, Centum, Verico, etc.

    Well, with CIMBC and Broker Financial Group looking to grow and take away volume from other existing networks and superbrokers the question becomes how will lenders react to the concept of still more new networks and brokerages to receive overrides and potentially be asked to fund more events and functions. It is question I just don't know the answer to.

    I also don't know how other networks and superbrokers will react to amped up solicitation of their people and brokerages. In a marketplace where origination growth is really just a function of increased property values and transaction velocity not really an increase in broker effectiveness, lenders may eventually start to wonder if the re-direction of override money to a higher number of beneficiaries is in their long term interest.

    Finally how will the constant compression of brokerage owner income through rate discounting coupled with ongoing pressure to offer better splits and lower volume levels ultimately play out. While I am a strong believer in market forces selecting winners and losers there is sure to be some pain along the way and when the merry-go-round of property value increases in the two big markets starts to slow there will clearly be a need for consolidation in some form.

    Never a dull moment in mortgage broker world.
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  • Gary 2015-07-07 10:20:01 PM
    Give me a break! what does Jason and his company have?

    Do they even have a CRM, no Marketing team, no Payroll and compliance? They do NOT have top volume Bonus with all the lenders, I am 100% sure of that.

    Their website doesn't even function properly!
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  • Matt 2015-07-07 10:55:16 PM
    I guess most brokers don’t realize that there is no money in brokerages unless you are at $8.0+ Billion brokerage on a decent commission split.

    Let’s say Jason builds a Brokerage with $4.0 Billion in volume, forget flat fee model, even at 95-5% that’s only $2.0 Million in bottom line. Your CEO will cost you $200-250 per year. Your operation manager $150K, Your VP of marketing $120K, your CRM development $200K year, you will need 3 RVP at least. That’s another $100K per RVP, your VP of training will cost you $100K, you will need broker of the records for every province, your payroll staff, CRM staff , Compliance staff, graphic designers, your programmers,….. You will need a team of 10-14 people to manage this business. There is no margin and no profits!

    Why would a smart and reputable broker want to Leave profitable and stable companies like DLC, Verico, Mortgage Architects or Invis and join a risky start-up?

    All these brokerages have better and higher volume bonuses, CRM, better deals on life & mortgage insurance and other ancillary products. Both Mortgage Architects and Invis currently give 97-3% splits on a full service model (payroll, compliance, Marketing,..).

    Verico, Mortgage Alliance, Mortgage Architects do not charge for their CRM! It’s completely free and these companies have spent millions and many years to build it! Even if Jason and his team start to build their CRM now, it will take them 3-4 years to catch up to the other players!

    Why would an established and reputable broker would want to join a start-up that is not approved by all lenders or doesn’t get top volume bonus with all the lenders?

    Lets get real People!
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