What to look for in a Banking Partner - Partnership opportunities with a BMO Mortgage Specialist.
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What to look for
in a Banking
Partner
Partnership opportunities
with a BMO Mortgage Specialist.
January, 2021
About today’s presenter
Nader Salameh
National Vice President – Lending Referral Partnerships
Phone: 416-564-2568
Nader.Salameh@bmo.com
Nader Salameh is the Vice President of Lending Referral Partnerships
for BMO Bank of Montreal since 2014. Nader has been working in the
banking and mortgage industry for the last 20 years in a variety of
different capacities including client facing and management roles.
One of Nader’s greatest passions is finding ways to connect with
advisors and finding ways to add value to their practice.
2
Overview
Introductions The Economics Your A BMO Programs and
of it All customers Partnership Features
your business delivers
mutual
success
3
Canada's Towering Inferno
New listings hit their highest level on record in seasonally adjusted
terms in March. • Sales rose another 5.2% last month to a
record high, lifting them 76.2% above
year-ago levels.
• Sales last month were more than
80% above the March 2019 level, and
66% above the average monthly pace
of the past decade.
• Average prices were up a record
31.6% y/y, and 48.1% above
March/19. That two-year jump
absolutely shatters the prior record gain,
seen back in the bubble days of the late
1980s.
• The pace of Canadian home sales and
prices is simply in unchartered territory.
Given the extreme market imbalance
currently at play—almost entirely due to
fiery demand—look for the record
pace of price gains to spread far and
wide beyond Ontario.
Read the full article via BMO Economics here.
4
What does that mean for a financial advisor?
• 70% of Canadian Households own a home
• 20% of Canadians own some sort of rental/investment property.
• Real Estate investing is becoming increasingly a part of a financial
plan
• Customers are not speaking to their advisors about it.
5
Most common options for advisor
1) Do nothing
2) Partner with a mortgage broker
3) Become a mortgage broker
4) Refer your customer to a bank
5) Non-B5 Referral Programs
6) Major Bank Referral Program
6
What it can mean to your bottom line
7
Where we were to where we are
9-5 Service Different Offering than the
Limited Working hours Bank
Limited Resources
Model didn’t scale well
8
We asked… We delivered What is important
to advisors?
Strong Brand National coverage Trusted partnership
A brand that an advisor is Access to help clients across BMO has been and their
proud to be associated with. Canada and beyond. customers for 4supporting
A brand that stands for advisor partners 0 years.
something.
Programs Compensation
‘One-stop’ financing
Unique and innovative Paying an advisor for what
Diverse set of products, not products that keep an their customer is worth
just a one size fits all advisor's best interest in
option. mind. Not competing with
the bank
9
Strong Brand - The BMO story – A 200-year foundation
Established in 1817, BMO Financial Group is a highly
diversified financial services provider.
One of 2018 Canada’s
Most Admired Corporate
Total assets of Cultures
$728
8th
Waterstone Human Capital
One of 2018 Canada’s
billion
largest bank, by assets,
Best 50 Corporate
in North America
Citizens
Corporate Knights
as of October 31, 2018
2017 Campaign Team &
Engagement Spirit
More than More than Award, in the major
45,000
banks category
12 million United Way Toronto & York Region
customers employees Corporate Partner of the
Year Award
The Centre for Disability & Elder Law
10Strong Brand
Customer Recognition
Competitive Edge in the Market
Easy Introduction of new products
Customer Loyalty and shared values
Enhanced Credibility
11What is important to advisors?
Strong Brand National coverage Trusted partnership
A brand that an advisor is Access to help clients across BMO has been and their
proud to be associated with. Canada and beyond. customers for 4supporting
A brand that stands for advisor partners 0 years.
something.
Programs Compensation
‘One-stop’ financing
Unique and innovative Paying an advisor for what
Diverse set of products, not products that keep an their customer is worth
just a one size fits all advisor's best interest in
option. mind. Not competing with
the bank
12National and Up to Date Coverage
A robust national network of mortgage specialists from coast-to-coast and
Canada’s only 130-day rate guarantee, we can tailor financing to meet any need -
even when the path to their dream home is paved with surprises. A service quality
your clients will remember!
We’re ready to educate and guide your
clients with commitment-free advice
throughout their entire home purchase.
Our 24/7 anywhere, anytime mobile
service ensures flexibility and
convenience for your customers.
13What is important to advisors?
Strong Brand National coverage Trusted partnership
A brand that an advisor is Access to help clients across BMO has been and their
proud to be associated with. Canada and beyond. customers for 4supporting
A brand that stands for advisor partners 0 years.
something.
Programs Compensation
‘One-stop’ financing
Unique and innovative Paying an advisor for what
Diverse set of products, not products that keep an their customer is worth
just a one size fits all advisor's best interest in
option. mind. Not competing with
the bank
14Trusted Partnership
Non-Solicitation Creditor Protection Alert/Marketing
Life Insurance & Financial A Creditor protection Alert on customer profile &
Advice conversation that includes Marketing Preferences
you
15Giving the best to you and your clients
16What is important to advisors?
Strong Brand National coverage Trusted partnership
A brand that an advisor is Access to help clients across BMO has been and their
proud to be associated with. Canada and beyond. customers for 4supporting
A brand that stands for advisor partners 0 years.
something.
Programs Compensation
‘One-stop’ financing
Unique and innovative Paying an advisor for what
Diverse set of products, not products that keep an their customer is worth
just a one size fits all advisor's best interest in
option. mind. Not competing with
the bank
17Finding the right financing option
BMO’s flexible financing aims to adjust to any customer’s lifestyle or situation
Mortgages Homeowner ReadiLine Homeowners Line
of Credit (HRLC) of Credit (HOLC)
Traditional home financing is Best of both worlds – as mortgage is
best if you prefer stability paid down, your Line of Credit (LOC) Existing home equity gives you
goes up. flexibility to borrow up to 65%
• Variable, open/closed or Fixed Rate,
of your home’s value.
open/closed Mortgage
• Fixed or variable rate, and up to
• Conventional or High Ratio Mortgage 30-year amortization • Easily accessed whenever you want it
• Mortgage Cash account: cuts interest and • Borrow up to 80% LTV on installment • Low borrowing rates
saves more cash for a rain OR sunny days and 65% LTV on LOC • Interest-only payments
• The cashback feature of a BMO mortgage • Flexibility to re-borrow whenever you
can give your customer the freedom to need
do anything (i.e. reduce debt, renovate)
• Predictable payments,
• Fixed rates
• Steady installments
• Insured financing with as little as 5%
down payment
18What is important to advisors?
Strong Brand National coverage Trusted partnership
A brand that an advisor is Access to help clients across BMO has been and their
proud to be associated with. Canada and beyond. customers for 4supporting
A brand that stands for advisor partners 0 years.
something.
Programs Compensation
‘One-stop’ financing
Unique and innovative Paying an advisor for what
Diverse set of products, not products that keep an their customer is worth
just a one size fits all advisor's best interest in
option. mind. Not competing with
the bank
19How BMO can help a Financial Advisors Business
New
BMO Lending
Savers Referral
Advantage Program
First-Time
Home Builder
Buyer Program
Incentive
BMO
Programs
New
New to
Professionals
Canada
program
20Investing for your future
Buying a second home or property? Whether a vacation home, a larger home, an
investment, or downsizing, we can advise you on any next step on your real
estate journey.
Vacation home or second home
• Maximum 80% Loan-to-Value
• Alternative financing options are available if property
does not meet conventional standards
• Amortization varies based on product
Investment property
• Maximum 80% Loan-to-Value
• Maximum 4 units in a dwelling
• Rental income calculation can be applied to investment
units not subject to finance for servicing mitigation
• Various options available to support stated rental
income.
21Helping those who keep us healthy
The New Professional Program is designed for new entrants into the medical doctor and
dental professions who demonstrate strong borrower characteristics. Medical residents from a
recognized Canadian medical school also qualify for the Default Insured Medical Program.
Program Details
• Option to purchase and switch mortgages from other
Financial Institutions
• Only one mortgage may be financed under
this program
• Owner-occupied (single family dwelling or duplex)
• Choice between:
• Conventional Uninsured Mortgage
• High-ratio Mortgage with a minimum 10% down
payment under the Default Insured Medical
Program
22BMO Savers Advantage Program – Enhanced to be top tier
in the market
BMO wants to support you in growing your business and helping your customers
with their home financing needs
BMO’s Savers Advantage Program Sample Customer
will help customers who have: Flexibility to borrow up to 80% of your home’s
✓ a history of savings value
✓ strong credit, and Customer Profile
✓ a difficult time showing enough Occupation Self Employed
income to qualify for home Credit Score Satisfactory
financing Assets
TFSA $100,000
Our newly enhanced program RRSP $200,000 (discounted by 30%)
makes it easier to qualify for home
financing for customers who have a May qualify under our BMO Savers Advantage Program:
minimum of $150,000 in liquid ✓ 20% Down
assets and strong credit. ✓ Satisfactory credit
✓ Greater than $150,000 in liquid assets
23Flexible payment options for you!
If your finances are stretched, a BMO Mortgage has helpful options.
Family Care® Mortgage Skip a Take a Break®
option Cash Account payment option
See bmo.com for flexible payment options and paying your mortgage faster.
Use our effective online mortgage calculator to forecast scenarios and help
you plan better.
24Mortgage Cash Account – an Alternative to an Emergency
fund?
To reduce your interest costs, a Mortgage Cash Account lets you prepay your
mortgage principal any time. And your prepaid amount is still yours as cash when
you need it. A true win-win for you!
Save on interest — and use your prepaid cash at will
• When you use your prepayment options, your
principal prepayments go toward building a Mortgage
Cash Account within your mortgage†
• With the Mortgage Cash Account, you can re-borrow
prepaid funds in amounts starting from $2,500,
subject to meeting certain eligibility criteria
• The re-borrowed funds are added to your mortgage
principal at your existing interest rate for the
remainder of the term‡
†Mortgage Cash Account is not available on the BMO Smart Fixed Mortgage. Some conditions apply.
‡If your interest rate is fixed, it is calculated half-yearly, not in advance. If your interest rate is variable, it is calculated monthly, not in advance.
25What is important to advisors?
Strong Brand National coverage Trusted partnership
A brand that an advisor is Access to help clients across BMO has been and their
proud to be associated with. Canada and beyond. customers for 4supporting
A brand that stands for advisor partners 0 years.
something.
Programs Incentives & Rewards
‘One-stop’ financing
Unique and innovative Paying an advisor for what
Diverse set of products, not products that keep an their customer is worth
just a one size fits all advisor's best interest in
option. mind. Not competing with
the bank
26Lending Referral Program
Exclusive banking offer Non-solicitation you
for your clients can count on
All referral customers will be Established processes to
eligible for exclusive BMO respect our mutual business.
banking offers.
Referral
Payout
Fees
27BMO Spring Mortgage Cash back offers for Switchers
• From March 1 to June 30, 2021 customers can choose from two
exciting mortgage offers:
• Customers looking to switch a mortgage, can get up to
$3,500 cash back when they switch their mortgage to a Visit
qualifying BMO Fixed or Variable Rate Closed Term Mortgage bmo.com/SwitchYourMortgage
with a term 5 years or longer.* to learn more about the offer
OR
• Customers looking for a line of credit with a mortgage can
save up to $1,250 on set up fees if they switch their mortgage
to a BMO Homeowner ReadiLine®**
*/**Terms and conditions apply. These offers cannot be combined.
We reward you
28
for your referralsAbout today’s presenter
Nader Salameh
National Vice President – Lending Referral Partnerships
Phone: 416-564-2568
Nader.Salameh@bmo.com
29Thank you
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