There’s power in numbers, and an expansion into Saskatchewan has benefits for all involved
Dominion Lending Centres BlueTree Mortgages WEST (BMW) recently expanded into Saskatchewan by joining forces with Powerhouse Mortgages, and now has representation in BC, Alberta, and Saskatchewan.
“The key to success at BMW is our ability to attract the best people who are successful in their local markets. There’s no knowledge like local knowledge,” says Gord Dahlen, BMW partner and VP brokerage development. “The values of the Powerhouse team and those of BMW are completely in alignment – like-minded businesses built on trust, respect and ethics.”
Powerhouse Mortgages was formed in 2012 when three veteran Regina- and Saskatoon-based mortgage brokers – Corey Klassen, Trent Glover and Wes Kosteroski – with combined experience totaling more than 60 years, joined forces.
With a smaller client base and smaller mortgages, it can be difficult for brokerages in Saskatchewan to reach the required lenders balances. BlueTree has a much larger reach than that of Powerhouse, and Klassen says that this partnership is a big step forward for both agents and borrowers in the province.
“Saskatchewan’s always been behind the beat of the drum when it comes to new things, and it’s just power in numbers,” Klassen said. “Collectively I believe that by us joining BlueTree, that we can bring superior products, we bring that magnifying glass on the province.”
When Klassen left the credit union to become a mortgage broker in the mid-90s, he was one of only a handful of people who went against the grain; people didn’t even know what a mortgage broker was. There was a fear of the unknown, Klassen said, and using—and becoming—a mortgage broker really only started to take hold once people saw brokers having success in other provinces. Even though brokers there have come a long way there and they’re better able to spread their message through social media, they’re still fighting misconceptions from both bank representatives and borrowers alike about hidden fees, higher rates, unstable lenders, and everything in between.
Klassen said that always believed in the super-brokerage concept, but on a regionalized basis, many super-brokerages tend to suffer a little bit. Just about half of Saskatchewan’s population resides in Regina and Saskatoon, and even though the market isn’t as big as Calgary or Edmonton, Klassen says that what they lack in quantity, they have in quality of business.
“It’s a dual purpose: we’re going to bring power in numbers, we’re going to bring discounted mortgage rates, superior products and service that the Saskatchewan population has not seen before,” Klassen said.
Both parties are to retain their individual brands, identities, and ownership status, and move forward in a sort of co-brokering model. Powerhouse has been seeking some sort of partnership for a few years and decided this would be the ideal fit.
“Partnering with a huge player allows us to dig deeper into efficiencies, resulting in a better offering for our clients. There’s a wealth of knowledge in both groups that will only make us stronger,” says Glover.
“We’re excited about collaborating with among the best minds in the industry to make great things happen for mortgage brokers and borrowers across the province,” adds Kosteroski.
This latest BMW merger brings the total broker count to 80, driving annual production of about $600 million in funded volume, with many more deals in the works to continue adding quality team members.
