Mortgage Referral Guide

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1 Mortgage Referral Guide

2 Table of Contents Introduction to the Mortgage Referral Program 3 About lnvis and Mortgage Intelligence 4 Benefits of the Mortgage Referral Program for Financial Advisors 5 Compensation Structure 7 The Mortgage Referral Process 8 Additional Information Regarding the Client Disclosure Form 9 Invis and Mortgage Intelligence Contact Information 10 2

3 Mortgage Referral Program for Financial Advisors Invis & Mortgage Intelligence are proud to offer Investment Planning Counsel s Advisors and their clients access to the best mortgage products and rates in the country. Through our program, your clients will receive one-on-one service for all of their mortgage needs from a dedicated Mortgage Consultant. Advisors will receive compensation for the referral and more importantly, peace of mind that their client is receiving exceptional mortgage advice. Our Mortgage Consultants Our Mortgage Consultants take great care of you and your client, specializing in mortgages and debt management helping wade through the numerous products and features that exist in today s competitive mortgage market. Just like you, Mortgage Consultants are unbiased, not tied to any one lender working in the best interest of your clients. They will be able to discuss your client s situation and find the mortgage that best suits their needs. You are now positioned to help your client when they are purchasing a home, refinancing, renewing their mortgage or are in need of a home equity line of credit. 3

4 About Invis & Mortgage Intelligence Together, Invis & Mortgage Intelligence form Canada s largest independent mortgage brokerage. With over 1,100 Mortgage Consultants and nearly $125 billion in funded mortgage originations, the company has proven to be a solid negotiator on behalf of its clients. With access to over 50 lenders and hundreds of mortgage products many only available through a mortgage broker Invis & Mortgage Intelligence Mortgage Consultants work diligently to ensure that each and every client receives the mortgage that suits their particular needs. Regardless of your client s past or current situation or planned future lifestyle changes, we have the mortgage solution for them. Many major life events such as getting married, expanding the family, saving for retirement or receiving an inheritance have an impact on which mortgage is best. As clients move through different life stages, it makes sense to re-examine their mortgage approach to make sure that they maintain the right mix of products to help them reach their financial and lifestyle goals. When personal goals change, it also makes sense to alter the client s mortgage plan. An Invis or Mortgage Intelligence Mortgage Consultant, in consultation with a Financial Advisor, can place each client with a product that best suits them. From working with our referral partners and servicing clients, to constructing deals and negotiating with lenders, lnvis and Mortgage Intelligence Mortgage Consultants uphold a level of integrity second to none in the mortgage industry. We re committed to working with you and your client to make sure your client obtains all the advantages a Mortgage Consultant can offer, and to deliver service of the highest standard throughout the life of their mortgage. Whatever their life stage, make sure your clients receive the expert advice of one of our Mortgage Consultants and benefit from their own customized mortgage strategy. Working together Building trust and integrity in relationships is the foremost principle in all of our dealings, and we take pride in delivering on those values with other like -minded professionals. Our Mortgage Consultants take their professional partnerships very seriously. They aim to make the entire mortgage process as smooth as possible, and keep you informed of the status of your client s financing transaction every step of the way. 4

5 Benefits of the Mortgage Referral Program for Financial Advisors Our objective is to provide you with the resources necessary to grow your portfolio by extending your client service abilities beyond the traditional Financial Advisor-Client relationship, while at the same time increasing your income. You will have access to any of our Mortgage Consultants, however, as is often the case, aligned Financial Advisors and Mortgage Consultants often continue their individual relationships to service all of their mutual clients, and have developed a strong two-way relationship for financial products and services. Expand your product offering The top benefit that this referral program will provide you with is the opportunity to enhance and protect your relationship with your client by allowing you to present your clients with products that were not previously included in your offering. You will now be able to provide your client with broad access to a variety of different mortgage products - including the best rates in the country from a wide selection of different lenders. Protect your portfolio from the Big Banks Most mortgages in Canada are held within the Big 5 Banks, and the banks are increasingly making a greater push to have their representatives solicit and sell their proprietary mutual funds, RRSPs and other investment vehicles - the same vehicles that you offer to your clients. This creates client stickiness for the banks. By identifying the current mortgage needs of your clients, together, we can work to satisfy all of their financial needs, thus reducing their reliance on the Big Banks, and enhancing your client retention. Bring in the next generation of client Many of you are already working to provide generational wealth transfers by offering your services to many of your clients family members. For those of you who would like to increase your exposure and expand your product offering, the mortgage referral program can help you do that more effectively. You can introduce the financial planning process to your prospects, discuss their mortgage needs, and if licensed, assess your prospective clients insurance needs all at the same time. Refinancing to improve clients cash flow Many of your clients may be carrying high-interest debt, most commonly in the form of credit card debt or a car loan which, through refinancing, could be consolidated with their mortgage at a new, lower interest rate. In the majority of cases, the payment amount on the newly refinanced mortgage is significantly less than the sum of the individual payments that were previously required on each individual debt component, thus vastly improving the client s monthly cash flow. Why not discuss this option with your clients as a way to enhance their savings goals, and maybe put some additional cash in their pockets? 5

6 Enhance your income Our mortgage services are an opportunity for you to enhance your income. Not only will you be compensated for your mortgage referrals, but if you are life insurance licensed, knowing your clients current mortgage situation adds an opportunity for you to discuss life insurance options at a time when your clients need to protect their families is the greatest. Purchasing a home is often the largest single purchase a client will make. A WIN-WIN proposition for you and your client Benefits for you: Expanded service offering, with little to no effort Security from knowing that a personal banker will not attempt to take your client and transfer their portfolio. A fee for providing the referral. Benefits for your client: The best rates available from a long list of lenders. A wider selection of products to suit their particular needs. Service at a convenient time and place. Let us help you Broaden the value you have to your clients as an IPC Advisor, while adhering to all of the regulations set by governing bodies. The mortgage services offered through Invis and Mortgage Intelligence are far-ranging and branch out to many more products and better rates than those that are typically available directly to end-consumers. A few that may be of particular interest to you are: Equity take-out mortgages free up funds for you to manage elsewhere. Switch mortgages or early renewals move your clients away from their traditional financial institutions. Lower rates and more flexible offerings funds may be better suited for other investments. Special mortgages for your self-employed clients. With today s low interest rates, let us help you to grow your clients net worth and your portfolio by managing their mortgage debt and more efficiently utilizing their home equity. 6

7 Compensation Structure For each client that you refer to a Mortgage Consultant that results in a completed mortgage transaction, you will receive a referral fee. Your referral fees are calculated as a percentage of the finder s fee received by Invis or Mortgage Intelligence from the applicable lending institution based on the specific deal. Note: The MFDA and IIROC rules require that all referral fees are paid and recorded on the books of the Dealer. Financial Advisors are not permitted to receive referral fees directly from the Mortgage Brokerage, therefore all referral fees will be paid directly to IPC s Head Office. Your referral fees will then be paid to you according to your regular payment arrangements with IPC. The Numbers! Example 1 Referred client arranges a $200,000 first mortgage and has chosen a 5-year variable rate product. Your compensation would be calculated as follows: Mortgage Amount: $200,000 Product: 5-year variable Finder Fee: 80 bps Gross Commission on deal: $200,000 x 80 bps = $1,600 Referral Fee (25%): $1,600 x 25% = $400! Example 2 Referred client arranges a $250,000 first mortgage and has chosen a 10-year fixed rate product. Your compensation would be calculated as follows: Mortgage Amount: $250,000 Product: 10-year Fixed Finder Fee: 100 bps Gross Commission: $250,000 x 100 bps = $2,500 Referral Fee (25%): $2,500 x 25% = $625! * Examples subject to change. For demonstration only. Referral fees are subject to usual fee payment arrangements with IPC and applicable taxes being withheld 7

8 The Mortgage Referral Process Through the financial planning process you uncover a client need ; and through mutual agreement, decide to obtain the services of an Invis or Mortgage Intelligence Mortgage Consultant. When deciding whether to select an Invis Consultant or a Mortgage Intelligence Consultant, be assured that you can expect a great experience while having your high client service standards met. Invis and Mortgage Intelligence operate on one consolidated platform, thus offering the same services and operating under the same ethically sound principles. The following steps outline the process for submitting a referral: Visit or to complete the following two required forms: 1. Electronic Mortgage Referral Form 2. Client Disclosure Form Note: If the primary account is a joint account, only one Client Disclosure Form is required and should be signed by each account holder. Print and complete the Client Disclosure Form and have it signed by your client. This form must be distributed as per the instructions on the form. Complete the Electronic Mortgage Referral Form and click on the submit button. The referral form is sent electronically to the Invis & Mortgage Intelligence National Call Centre. The Call Centre records the referral and sends an notifying the mortgage consultant that a referral has been received. The Mortgage Consultant is obligated by a service level agreement to contact those involved within a predetermined time frame to ensure that proper service levels are maintained at all times (typically within 4 hours). If you already have an established relationship with a Mortgage Consultant, you may indicate him/her on the referral form; otherwise the Mortgage Consultant will be selected based on geographical proximity to the client. Once advised of which Mortgage Consultant has been assigned to the client, the IPC Advisor must fax or the completed and signed Client Disclosure form to that Mortgage Consultant. The Mortgage Consultant will contact the IPC Advisor to discuss the referred deal, and then the client to make arrangements to complete the application. In the majority of cases, all attempts will be made to meet face-to face with the client or under other parameters that the advisor deems appropriate. That may mean a meeting with the client where the advisor is present, a meeting with the client at the Mortgage Consultant s office, a meeting at the client s home or a teleconference between all involved parties. The Mortgage Consultant will provide regular updates to the IPC Advisor and our National Call Centre on the status of the application throughout the process. The Invis or Mortgage Intelligence Regional Manager will also monitor deals and assist with any unforeseen issues that may arise in the transaction or with the lenders. Once the file has been closed and the transaction completed, the lender pays a finder fee to Invis or Mortgage Intelligence for the deal. We will forward the referral component to the applicable IPC dealer s Head Office for distribution to the Advisor. 8

9 Brokerage #10801 CLIENT DISCLOSURE REFERRAL ARRANGEMENTS Client Name Address Requested Mortgage Consultant to be Assigned Tel. # (Home) Tel. # (Cell) Tel. # (Business) Please assign a Mortgage Consultant I/We have selected Invis as my/our mortgage consultants for mortgage advice services. I/We understand that IPC has established a referral arrangement with Invis whereby its representatives may, but are not required to, refer clients to Invis for which IPC will receive a referral fee. I/We have been advised that a referral fee of 32.5% of each applicable Finder s Fee1 plus 20% of each applicable Volume Bonus Fee2, inclusive of all applicable taxes paid to Invis in respect of services provided to me/us, if any, will be paid to IPC. I/We understand that IPC may or may not share any or all of the referral fees paid to IPC with the Advisor specified below. I/We understand that Invis mortgage fee schedule remains the same whether or not a referral fee is paid to IPC. The above-noted referral fees are also payable in connection with all subsequent dealings by me/us with Invis that results in a payment to Invis or its affiliates from the applicable lender as a result of advancing of funds by the lender to me/us in respect of purchases, refinances, switches, renewals or transfers of mortgages and any deemed Finder s Fee or deemed Volume Bonus Fee. For purposes hereof, if Invis or an affiliate is the lender then the Finder s Fee and Volume Bonus Fee, as applicable, shall be deemed to be the greater of (i) the amount Invis or the affiliate, respectively, would pay as a Finder s Fee or Volume Bonus fee to a third party for such referral; and (ii) the amount Invis would have received as a Finders Fee for Volume Bonus Fee from a lender that is not Invis or an affiliate calculated as the average Finder s Fee and Volume Bonus Fee of Invis top 5 lenders which pay these fees. I/We acknowledge that the Advisor indicated below and IPC are not registered mortgage brokers or lenders and are not licensed to provide advice or assist on any mortgage and lending matters. IPC Investment Corporation is registered in the category of mutual fund dealer and is authorized for the selling of mutual funds in all provinces, excluding the territories, in Canada. IPC Securities Corporation is registered in the category of investment dealer and is authorized for the selling of securities in all provinces, except for Newfoundland and Labrador, Prince Edward Island, Quebec, Saskatchewan and the territories, in Canada. It is illegal for any of the foregoing IPC dealers to trade or advise in respect of securities for which they are not licensed or registered under applicable securities legislation to so trade or advise. I/We understand that Invis is registered as a mortgage brokerage in all province of Canada except the territories, and is authorized to manage my/our mortgage service needs through To: IPC* And To: Invis Inc. ( Invis ) its registered mortgage consultants. I/We understand that Invis and its representatives may not engage in activities for which they are not registered, including the selling of mutual funds or the selling of securities, and that IPC is not related to or an affiliate of Invis. Any general financial advisory services or other services which IPC provides to me/us in accordance with its registrations will continue to be provided to me/us by IPC, not Invis, and will continue to be the responsibility of IPC. Similarly, I/we understand that the mortgage brokerage services will be the responsibility of Invis, not IPC. I/We understand that Invis must receive all instructions about my mortgage from me/us, and not IPC. I/We understand that Invis and IPC make no representations regarding each other, nor the services provided by the other, and any relationship formed between me/us and one of these parties is in no way related to my/our relationship with the other party. I/We hereby consent to the disclosure between IPC and Invis of my/our personal information as is necessary in order for Invis to provide mortgage brokerage services to me/us, including the terms of any mortgage arranged through this referral, and in order for Invis to report to IPC in respect of its provision of such services to me/us. I/We hereby further consent to the use by each of IPC and Invis of my/our personal information as is necessary in order to provide such services and/or to report to me/us, as the case may be. I/We understand that this consent can be revoked at any time by providing written notice to both IPC and Invis and that my/our continuing relationship is not conditional upon the provision of this consent. I/We consent to Invis contacting me/us at the telephone number above to discuss a mortgage(s) that may be of interest to me/us. For Quebec residents only: I/We have expressly requested that this form be drawn up in the English language. J ai /Nous avons expressément demandé que ce formulaire soit rédigé dans la langue anglaise. 1 Finder s Fee refers to the fee paid by a lender for originating an individual mortgage loan as the term is commonly considered in the mortgage broker industry. 2 Volume Bonus Fee refers to the fees commonly paid to mortgage brokerage firms as volume bonus arrangements for aggregate volumes closed with a lender. SAMPLE The Client does not consent to the disclosure of his/her personal information in the manner set out above. Print Client Name Client Signature Date Print Joint Client Name Joint Client Signature Date Name of Advisor Phone Dealer Code Rep Code * IPC means the firm indicated below: (Check Applicable Box ONLY ONE) IPC Investment Corporation (200011) IPC Securities Corporation (200012) IPC ADVISOR: Registered at Form delivered to Mortgage Consultant or faxed to Invis Head INVIS MORTGAGE CONSULTANT: Dealer form to IPC Advisor (if not already provided) Include in mortgage file to Invis head office Doc. ID INVIS-IPC-REF

10 Additional Information Regarding the Client Disclosure Form The rule governing MFDA & IIROC require IPC Advisors to provide their clients with written disclosure of the referral arrangement prior to any transaction taking place. The IPC advisor must obtain a fully executed copy of the Client Disclosure Form prior to the processing of any mortgage transaction and retain an original copy in their file. Accordingly, Advisors need to: Complete the Client Disclosure Form for new client(s). This form must be signed by the client(s). Once all signatures have been obtained, the Advisor must provide a copy to the client, retain one in their files, and provide a copy to their Mortgage Consultant. Complete the electronic Mortgage Referral Form at or Once a Mortgage Consultant is assigned to the file, the Advisor must fax or the Client Disclosure Form directly to the assigned Mortgage Consultant. The Advisor must retain the original forms in each client s file. The Mortgage Consultant is required to supply the Client Disclosure Form with their mortgage file to Invis and Mortgage Intelligence s Compliance Department. Without the completed disclosure form, Invis/Mortgage Intelligence is unable to send your referral fee to your Head Office. 10

11 Invis and Mortgage Intelligence Contact Information For any questions about the Mortgage Referral Program please contact the Invis and Mortgage Intelligence Call Centre, or a Regional Manager near you: Main Contact: Deborah Batten Toll Free: Toll Free Fax: invis@invis.ca mi@migroup.ca Tony Kreutzer, Vice President, Western Canada tony.kreutzer@invismi.ca Rob Hafer, Regional Manager, Vancouver Island & Lower Mainland rob.hafer@invismi.ca Barb Morgan, Vice President, Eastern Canada barb.morgan@invismi.ca Lisa Valade, VP Training & Business Development, Regional Manager, GTA & Golden Horseshoe lisa.valade@invismi.ca Michael Celuch, Regional Manager, Southwestern Ontario michael.celuch@invismi.ca Susan Thomas, Regional Manager, Toronto, Mississauga East susan.thomas@invismi.ca Isabelle Barbeau, Vice-President, Quebec isabelle.barbeau@invismi.ca

12 invis.ca/ipc mortgageintelligence.ca/ipc

Mortgage Referral Guide

Mortgage Referral Guide Table of Contents Introduction to the Mortgage Referral Program 3 About lnvis and Mortgage Intelligence 4 Benefits of the Mortgage Referral Program for Financial Advisors 5 Compensation