If the housing market is in the doldrums, nobody’s told Mortgage Partners Corporation.
With a new brokerage office in Bradford, ON, the firm’s president and broker of record says he’s figured out the formula for success.
“We’re doing a lot of work with private individual lenders because we can tailor a solution back to the borrower, whereas a MIC has too many governing bodies—they’re particular with appraisals and dollar amounts, and they have to maintain a certain yield, which is becoming too high,” said Kash Toor. “MICs are a dying breed in today’s world because everybody has money and, while they have $300 million for us, the 12% they want doesn’t work, so we’re going to individual guys.”
That’s where Toor says he can easily shave off four basis points for his clients.
“We offer them 8% because if we do that on a second position, we’re able to give back more to the broker world,” he said
However, that isn’t Mortgage Partners’ only strategy for success. While it’s a small team, it’s one with tentacles seemingly everywhere.
“We have someone on commercial who was president of RBC for 20 years, then retired, and now works with us. We have a risk officer and two or three more female agents who are pounding pavement with respect to construction, private and institutional,” said Toor. “We’re not huge, but all the roles are covered and it’s an effective approach because everybody tackles one thing and brings in solutions for all kinds of clients from construction and commercial to residential and private.”
Arguably Toor’s greatest masterstroke was partnering with developers and other associates in the banking world. In both cases, when clients fail the stress test, they’re sent Toor’s way.
“We picked up a lot of work after the B-20 rules,” he said. “BMO and TD get regular client declines so I try to help out their clients. A few managers at TD send us declines, so does BMO and Scotiabank.
“We have a great relationship with some developers. One of our agents is also a licensed realtor and she works with them, so if there are any last minute screw-ups they’ll go to her and together we’ll try to find their clients solutions. The hardest part of any transaction is securing financing.”