About Centum Discount Mortgage Canada Inc.
Mortgage Agent in Kitchener
Our company was founded by Roy Singh who started his career as a Life Underwriter/Financial Planner with Sun Life in 1982. One of the greatest challenges he encountered as an agent when working with his clients was the enormous debt load they often carried. This debt load prevented most people from reaching their financial dreams, because they were simply taking all their money to pay for existing debts and not being able to save for the future.
Roy started searching for alternatives to somehow consolidate all of these debts and reduce the interest and the monthly outlay for his clients. This would enable his clients to implement the savings plans necessary for a successful and meaningful future.
Sadly, he was not able to find any meaningful solution from the insurance companies or banks at that time and this lead him to enter into the Mortgage Brokerage Industry in 1991.
At the time the mortgage brokerage industry was in its infancy with at 6% market share in Canada and brokers were known as the lenders of last resort. There were no formalized training programs for agents entering into the mortgage business. So, he set about developing and writing a training program on how to ethically broker mortgages in Canada, drawing from his experience in the insurance industry.
Roy also joined the Ontario Mortgage Brokers Association as a Director and worked diligently to further the ethics and best practice of the Mortgage Brokerage industry while also becoming the President of the Golden Triangle Chapter of OMBA.
In 1997 he co-founded The Mortgage Alliance Company of Canada (MAC) and helped to build one of the largest National Mortgage Brokerage companies in Canada. During that period of time, the mortgage brokerage industry prospered and grew very quickly, gaining market share. Mortgage brokers were no longer known as the lenders of last resort but as the go to people when someone needed a mortgage.
In the years that followed, mortgage brokers continued to work for consumers, providing great options never before available to borrowers including very competitive interest rates.
In December of 2000 Roy left MAC and opened …….Discount Mortgage Canada. For the past 19 years he, along with……… his agents, have worked on helping Canadians with all their mortgage needs.
Since 2008 there have been many changes to the mortgage rules in Canada and with the banks tightening their own rules Canadians need the services of a competent mortgage broker to allow them to explore all of their options and know what is best for them. After all, this is the reason Roy got into the mortgage business in the first place.
When dealing with a Discount Mortgage Canada agent, our job is not to tell you what to do, but to provide all options so you can make an informed decision based on the facts rather than what is best for the lender.
Why use Discount Mortgage Canada (DMC) instead of going to a Bank?
Why Choose DMC as Your Mortgage Broker?
We work for you!
- We present options that are best for YOU not the lender
We have a fiduciary responsibility to you
- You are our boss and as such must look after your best interest
We work with reputable lenders (top banks, credit unions and more)
- We’ll find you the best rate and mortgage provider, we promise!
Our experience and client service are second to none
- We know our business inside out and offer solutions others may not even think of
- Our mortgage experts are constantly up‐to‐date through ongoing training
We take the mystery out of the mortgage process while making it easy to understand your options
- We talk in easy to understand terms
- We are with you every step of the way to answer your questions
Our ability to help you goes beyond securing a mortgage
- We can provide top real estate agent recommendations
- Plus, broker recommendations in other provinces
Why Use a Mortgage Broker?
Brokers have access to numerous lenders so they can find you the best rate on the market. They are professionals who are licensed by the Provincial Government and must carry Errors and Omission Insurance which ensures they are credible service providers.
Even though Mortgage Brokers have been around for years and are taking large market shares from The Major Banks, some people don’t know why they should use a Broker. Traditionally, Mortgage Brokers were known as the lender of last resort when a person gets turned down by the Bank. While this may have been true 25 years ago, today Mortgage Brokers are the single largest source of prime mortgage financing in Canada with over 25% Market share vs any individual Banks. What do these people know that you don’t?
We hear from customers that they love their bank and that they feel comfortable going to their lender because they have a relationship there. While this might have been true 20 years ago, most banks have changed the way they do business. What the average customer does not know is that most banks have removed their mortgage and lending approval process from the branch.
The reason they removed the in-house approval process is because banks were finding their managers were simply getting too emotionally involved with their customers. The managers began making poor lending decisions such as lending money to people who simply did not qualify based on the bank’s criteria.
So, these banks have moved all the approvals to a centralized centre, usually in a large city where the individuals (underwriters) who approve these loans never meet the borrowers. The underwriters can then make a decision to lend or not to lend based on the criteria set by the banks without being emotionally attached as they have never met the borrower. This has dramatically reduced the default on loans and increased profit to the banks.
A customer’s ability to get a loan is based on pre-set parameters such as credit, income and equity, NOT because of your relationship with the bank or because you are a nice person.
Simply put, the employees at a bank work for the bank, while “we work for you!” Best yet, on all prime mortgages, our lenders pay us meaning there is no cost to you as the borrower!
History of Canadian Banks and Mortgage
The Bank of Montreal was founded in 1817. A number of other banks later followed. The British North America Act of 1867 (a.k.a. Constitution Act 1867) let the Crown grant rights to Canadians of land use. Today in Ontario the Crown owns the residual interest in land. Originally mortgages were provided mainly by insurance companies. Until recently when the Bank Act in 1954 was introduced, the banks were not allowed in the residential mortgage market, but they were allowed to charge only up-to 6% interest. In 1967 the Bank Act was amended to remove that 6% cap.
Today the biggest downfall of the Canadian Banks is their Branch network as more and more people simply do not go into the Branches on a regular basis. However these legacy systems used by the Banks have increased their cost and are making them less competitive unless they are able to offer a variety of other financial products to their customers. Some Banks have been accused of tied selling (which is illegal) where they will offer a better rate if you take more of their financial products.
This is one of the reasons why Mortgage Brokers have really increased their market share as they have access to lenders that do not have the expensive Branch network and as such can be more competitive
Mortgage Lenders We Work With
Industrial Alliance – Is a Canadian Insurance company that also offers mortgages through the Broker channel. A great lender with fantastic rates but they are very picky in terms of the client they are willing to take on and have very stringent underwriting policies.
First National – First National is Canada’s largest non-bank lender, offering both commercial and residential mortgage solutions.
Through a combination of their innovative mortgage solutions, Merlin – our industry-leading mortgage approval and tracking system – and the experts they have on their team, First National has earned the trust of mortgage brokers, commercial clients and residential customers.
These strong relationships are thanks to an unwavering commitment to delivering excellent service – a commitment shared by senior management and every member of the First National team.
Home Trust – Home Trust is one of Canada’s leading mortgage lenders offering an alternative to the major banks. Whether it’s helping you to buy your first home, consolidate higher-interest loans and credit cards to save money, or renovate your dream house, they’ve got the flexible alternative solutions to help you meet your goals.
They also understand that each customer is unique, and pride themselves on providing a personalized, hassle-free experience. They offer flexible income verification, and every application is reviewed by a person, not a computer.
Most of their customers usually fall into one of a few groups:
- Small business owners who cannot prove enough income to qualify with a major bank
- New immigrants to Canada who do not have a credit history
- Homeowners who have built up equity in their property but do not meet income requirements of the major banks
- Canadians with former credit difficulties that have since been resolved, including discharged bankrupts.
Scotia Bank – A main stream bank that is aggressive in the mortgage brokerage business, while they don’t always have the best rates, people are familiar with them.
Street Capital – Street Capital Financial Corporation (Street Capital Financial) is one of Canada’s largest non-bank lenders providing residential mortgages primarily through select independent mortgage brokers. Street Capital is owned by Street Capital Group Inc. (formerly Counsel Corporation); a financial services company listed on the Toronto Stock Exchange (TSX: SCB). We are an approved lender with the Canadian Mortgage and Housing Corporation (CMHC), Canada Guaranty Mortgage Insurance Company and Genworth Financial Canada. Street Capital Financial is also an approved issuer of National Housing Act Mortgage Backed Securities and an approved seller under the Canada Mortgage Bond program.
TD – Another main stream bank but their underwriting is more stringent than most other banks and are not always the most competitive in terms of rates, or loan amounts.
Merix – Whether you’re shopping for a new mortgage, refinancing or looking to switch your current mortgage, MERIX Financial has a solution to fit your specific need. Canadian owned, MERIX Financial specializes in residential mortgages, servicing mortgages across Canada. MERIX Financial prides itself on exceptional customer service, investing in technology, product development and people in order to provide the best possible customer experience.
National Bank – Is the sixth largest commercial bank in Canada with its headquartered in Montreal and has branches in most Canadian provinces.
Xceed Established in 1997, XCEED Mortgage Corporation offers unique and competitive residential mortgage products for both purchase and refinance to Canadians through an extensive network of mortgage broker partners. XCEED Prime mortgage products are available to borrowers with strong credit and income histories.
Equitable Bank – Equitable Bank is a federally regulated Schedule I bank with total assets under management of approximately $14.4 billion, over 400 skilled employees and proven capabilities in lending and deposit-taking. The Company’s integrated operations are organized according to specialty.
Within Equitable Bank’s Core Lending business, Single Family Lending Services funds mortgages for owner-occupied and investment properties across Canada, while Commercial Lending Services provides mortgages on a variety of commercial properties on a national basis.
Equitable’s Securitization Financing business originates and securitizes insured residential mortgages under the Canada Mortgage and Housing (“CMHC”) administered National Housing Act.
ICICI – (Industrial Credit and Investment Corporation of India) is an Indian multinational banking and financial services company head quartered in Mumbai, India. It offers a wide range of banking products and financial services for corporate and retail customers and operates in 17 countries including Canada.
Italian Savings – Offers sub-prime mortgages through selected brokerages in Ontario as well as through their Branch network in primarily the GTA.
Your Neighborhood Credit Union – Local Credit union with 18 branches focus on Neighborhood lending.
BMO – the Bank of Montreal no longer work with Mortgage Brokers citing that they cannot make any money through this channel as they cannot compete with the low interest rates offered by Brokers.. They have focused on their branch systems and the cross selling of products.
CIBC – CIBC and its subsidiary First Line Trust was one of the largest sources of Mortgage Financing to the Brokerage Market in Canada, however similar to Bank of Montreal they find that the competitive nature of the Mortgage Business does not allow them to make enough profit to justify the cost. So they have focused mainly on their branch systems and selling a variety of financial products including PC Financial.