Len Lane, founder of Brokers for Life Inc., sits down with Shawn Jewers, Business Development Manager for MCAP Mortgages, to discuss the massive wave of mortgage renewals coming between 2025 and 2027. They break down the two types of mortgage transfers—standard and collateral—and why understanding the differences is crucial for brokers and homeowners alike. Shawn highlights the role of First Canadian Title (FCT) in the transfer process and explains how virtual signing can streamline transactions. The conversation also covers key industry insights, including the impact of grandfathering rules on insured mortgages and the potential savings that borrowers can access when qualifying at contract rates.

As the mortgage industry braces for this significant renewal period, Len and Shawn stress the importance of brokers staying informed and prepared. They discuss valuable tools such as MCAP’s transfer matrix, refinance calculator, and switch transfer template—all designed to help brokers navigate renewals more efficiently. Brokers are encouraged to attend quarterly MCAP webinars and ensure their clients stay responsive to communications from FCT for a smoother transfer experience. With a rapidly evolving market, this episode provides essential insights to help brokers and borrowers make the most of their mortgage renewals.

Shawn Jewers is a seasoned mortgage industry expert with over 20 years of experience in various facets of the field. Beginning his career at CMHC as a VDM, Shawn has developed a deep understanding of mortgage lending, underwriting, and market trends. Currently, he serves as the Business Development Manager for MCAP Mortgages, one of Canada’s leading mortgage lenders.

Throughout his career, Shawn has been a trusted resource for mortgage brokers, offering insights into mortgage transfers, refinancing strategies, and industry best practices. He is known for his expertise in differentiating standard and collateral transfers and for his ability to guide brokers in optimizing client solutions. With a strong commitment to education and communication, Shawn plays a key role in helping brokers navigate the evolving mortgage landscape, ensuring they are well-equipped to provide value-driven advice to their clients.

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Transcript
Len  0:02  

Welcome. My name is Len Lane, and I am the founder and president of Brokers for Life Inc, and we are Dominion Lending Centers in Western Canada. The topic of our podcast will be about what we consider to be Real Life Mortgage Solutions. So welcome back. We are here today to talk about probably one of the biggest events that's going to happen in this decade as far as the mortgage industry goes from 2025 through to 2027. We're going to see nearly a trillion dollars worth of mortgages come up for renewal. We always hear the stat that that's 60%. Well three years out of our five year terms is 60% regardless. But this time around, it's some big numbers. We're already seeing the effect of it. I personally don't chase business, but I've already done my seventh file this year. I'm on already worn out already. So my guest today is Shawn Jewers. He has been in our industry in a few different facets over the last 20 some years. Looks like starting out with CMHC as a VDM, and today he is here as the business development manager for MCAP Mortgages. They are a Vancouver based, Toronto based, I guess, Toronto based, lender that we do a lot of business with. So Shawn, welcome. Welcome to the podcast.

Shawn 1:26  

Well, I appreciate it. Len, I really enjoy getting the invite to do this. We've been working together for it's been 14 years, and it's been amazing to see how you've grown Brokers for Life and the brokerage and your own business. So your reputation precedes you, and I'm really excited to get this going today, but you're right. I think there's a nearly a million Canadian borrowers renewing just in 2025. It's a staggering number.

Len  1:53  

It is. And you know, there's a crazy stat out there that says 85% of Canadians ought to renew their mortgage without ever checking to see if there's a better rate or or better option for them, for their their next five year plan or, or whatever, how many years they plan to have a mortgage, I guess. So let's talk about what exactly switches are and the different types of switches. 

Shawn  2:17  

Yeah, there's, there's going to be, like we've said, a tremendous amount of opportunity for mortgage brokers to give some good advice. So I think understanding the marketplace and having great communication skills and the ability to talk to your homeowners is gonna be a key to winning more business. And the first part is understanding that there are two types of transfers. So there's the standard transfer, it's an existing registered mortgage, and its assignment gets switched to, let's say, in this case, MCAP, without changing many of the terms. Whereas a collateral, it's a little different, the existing mortgage is discharged and they're replaced with an MCAP mortgage. So knowing how to identify the two differences is probably the best starting point, and it's actually one of the questions I get most often is, how do I tell if it's a standard or a collateral? So my two bits has always been, pull registration, check out form B, and then, usually on page two, you can see that there's some questions on there. And if the question is, if this is a running account, odds are its collateral mortgage, if there are specific mortgage details, like the terms, the amortization, then that's a good indication that this is a standard transfer or standard register. So that's how you can kind of start that process off.

Len  3:39  

Right. And one of the things we always teach in in with with switches, first off, don't be cheap and go spend the $10 bucks on the title, then spend another $10 on actually getting the registered documents on that title. That term, standard mortgage. I'd love to see that one. That's a simple one, but a couple of other words that that show up in those of course, are on demand, right? Once mortgage is on demand, it's most likely has a portion or is set up as a collateral. 

Shawn  4:07  

100%. Yeah, the other key term that you see sometimes is see schedule in the absence of mortgage details. So, yeah, those are some of the key things you want to pick up on those titles.

Len  4:17  

Yeah, definitely. You know, simple process when it's straight switch, obviously we can they seem to take very little time, but yet to be a little more in depth when it comes to collateral switches. Obviously, First Canadian Title who will be talking with you, on with to the team with on tomorrow, has a big part to play in it, and what is that connection that MCAP and FCT have that is working so well.

Shawn  4:42  

It's it's a great relationship we have. In western Canada, MCAP uses FCT for both our transfers and refinances. And out east, the team uses F and F, so they do a great job of facilitating the legal aspects of the transfer and meeting. With clients, or, in some cases, virtually meeting with the clients to sign those documents, to get the title transferred over and make the changes.

Len  5:09  

Right. And that's one of the things that I think obviously straight switches, no cost to the client. It's absorbed by yourselves, and it's either done at their kitchen table, or, like you said, now we're seeing more and more virtual ones, if the clients are a) hard to track down for a schedule, and of course, b) with the collateral switches. There's a little different process to it. Maybe talk a little bit about how that all happens as well.

Shawn  5:37  

Yeah, there. The collateral transfer process does take a little bit longer, simply because we're re-registering how the mortgage is registered, so we're changing the terms, so the process does take a little bit longer. We've got a great partnership with FCT, so we've got some distinct advantages with the collateral transfer program. We do allow for the virtual signing like we talked about, but we've made a recent change, and something we're doing exclusively with FCT is before the payout statement is ordered, because that's usually the delay in the process, we can actually have our documents sent to FCT and have the client sign with FCT before we get the payout statement. So on the collateral transfer, we do allow for a little bit of a buffer, and then that way, we can get the signing done and then get that payload statement. So if there's any surprises on the payout statement, as far as dollars are concerned, we've built that buffer in, but we've already sped up the process by signing with the client. So that's a key difference with us.

Len  6:45  

Yeah, excellent point there as well. I learned about something this morning as well with FCT called Easy Close. Have you heard of that?

Shawn  6:54  

I haven't. Actually depends on what their program is like. I think with each lender, they have different programs. So we use their platinum service.

Len  7:03  

Right, and this is an exclusive program with with DLC, we have access to something called the Easy Close. They sent me the brochure for it as well. I had no idea it was there, and everybody should know about it, because we can actually go ahead and ask them for the payouts before we have the commitment and everything else done as well, so we can start the process faster, because we're part of the mini lending that speeds up having that payout statement in hand. Because we know how some of the lenders are about, you know, getting that out to us, you know, in the case of one of the big banks, two days before closing, so they can cause a little panic at that point, right? So.

Shawn  7:43  

Yeah, definitely. And FCT has got a lot of really good programs or tools to use. Making sure you get signed up for their portal is always one of my first tips for new brokers and existing brokers, but being able to follow your milestones as you go through the transfer process is fantastic. So making sure everyone signs into their portal and then following those milestones can help you communicate much better with your client and then understanding where the process is with the lender.

Len  8:10  

Right. And I always give them a hard time because it's a lot of emails. Somebody, someone submits under my name, I end up getting all of their emails as well for that. It's great that this track like that. You kind of have a heads up and and, or if there's issues, they actually let us know as well to, you know, to take care of that as well, so.

Shawn  8:32  

It's always good for the client to expect communication from FCT. I know they send two emails to start and then they do follow up with a phone call. So it's great to advise the clients to make sure that they know that those calls and those emails are coming, because sometimes that can slow down the process a little bit. If they're not anticipating that communication, they may ignore the call or not pick up the email, or pick up the call or ignore the email, and that does slow down the process a little bit. 

Len  9:02  

It does, and it's funny, because I started one. Obviously, we're gonna have a lot of these this year. Probably it's, I'm just cutting in pasting what, what FCT is asking, and they're usually then one of them is they ask that the client be aware that there is an email coming. They'll be able to load up the documents for payout and stuff like that. To be in advance of it, to keep things moving forward. So the faster they do that, the faster, faster that the turnaround can happen. So yeah.

Shawn  9:30  

Yeah. And I'm really loving the new virtual signing, although I have learned virtual signing isn't for everyone. So I thought, I thought I would share a couple tips that it will help brokers identify who might be a good fit for that virtual closing because everyone needs their own like valid ID. I mean, that's obvious, but each person also has to have their own email address, and sometimes a household may only have one email address. So, it's always good to make sure that they both have those individual email addresses, because that's where those communications go to. And then it seems simple, but it's not for everyone being able to use your phone and take pictures and take good pictures with your phone, because you do have to take pictures of your ID and so forth. So technology is not everyone's bag, but if you do have people that are tech savvy, that virtual closing might be a real advantage to speeding up the process.

Len  10:27  

Yeah, well, my generation has been taking pictures of grandkids for the last decade, so we should be able to upload those into the system. That's, I always laughed, but then we're like, yeah, send pictures of your grandkids the other day, just do the same thing, except load it here. Speaking of of the of the older generation, grandfathering. What? What exactly is that, and how does this apply to our switches?

Shawn  10:53  

Yeah, there's, so grandfathering. We know with insured mortgage right now, with the recent changes, everyone knows they can qualify on contract rate, so that that was a change. The uninsured space is a little bit different. I think everyone's trying to digest what that's going to look like. But when we look at grandfathering, we're talking about insurable mortgages, making sure they fit into that insurable tranche, and it's just about key dates. So if you have a mortgage funded prior to November 30, 2016 you can use the contract rate on the switch, as opposed to contract plus two. So I think that's the key note, is to know when the mortgage was originally funded. All other terms, if it isn't a five year term, is contract plus two, the minimum qualifying rate.

Len  11:46  

Right? And I think having a more mature team, as I do, that will come into play for a lot of them, because I know that I just did two this week, and they're on their third term with me, right? So pre, pre 2016 they had some huge years in there, so gonna possibly see a lot of that, and take advantage of that as it goes through.

Shawn  12:11  

So I just had a case this week. I get a chance to talk to a lot of brokers, and they had called with they had some issues with ratios. They couldn't get the deal to work. And it was just it was a newer broker. But I think it applies to a lot of people. Is forgetting about that date. The 2016, being able to grandfather the qualifying rate, the ratios were over, and we just went back to the application, and we noticed they qualified a contract plus two, did a little digging. Turns out it was done before that date. This is the difference in payments. So the mortgage was about 350k they were trying to qualify at contract plus two. So it was 639 at the time. The payment came in at $2,321. Rolling it back to grandfathering, they can qualify it for three, nine, and the payment was only $1915, save 400 bucks a month. So I know we say you can use grandfathering rules, but when I saw that example, I'm like, oh, dollars and cents like that makes a huge difference. So I think that's a really good thing to take away. Is math is important, and when we're talking about that big of savings, it makes a huge difference on getting more deals done.

Len  13:31  

Math is our life to tell you the truth, we do this and this and this, right? So to make that all work in one place, it'd be great. So we see this occasionally, people in there renewing their mortgages, possibly they had a a spouse or a mother or father, maybe on the mortgage with them, and now they're able to qualify on their own. How does that work? In our language, of course, it's called the covenant change. But what are we able to do with that when there's a switch or transfer?

Shawn  14:01  

Yeah. So again, we'll go back to the two types of transfers, whether it's a standard transfer or collateral transfer. Under a standard transfer, any covenant changes should be made with their existing lender before you make the transfer. Where we can really make those changes, and I think in the scenario you're talking about is under the collateral transfer program. In that case, you can make covenant changes such as adding or moving any individual. Well, not any individuals, ai shouldn't say any, but we're talking about spouses, parents and siblings, that you can make that change while using the collateral transfer program.

Len  14:40  

Right. So that saves a step if they do it in advance. Of course, right? If they can, yeah, some lenders are do one. Hang on very dearly to that covenant and having the extra, extra possibility of someone having to pay the mortgage should something go wrong, but in many cases, it is as simple as going to the branch, possibly or or contacting through the portals the lender to see how what is needed, at least, to make that covenant change. So.

Shawn  15:09  

Yeah, and under the two programs, there are differences in the fees that are covered under the two different programs, under standard and collateral. Under the collateral program, MCAP does allow for you to choose whether you want the FCT fee paid for or have a client pay it. If the client pays, it can be capped into the mortgage. The thing to note with the covenant changes is there may be additional charges. So that falls outside of that perspective, and FCT may have additional charges, so you always want to make sure the client knows that that may be coming, right?

Len  15:46  

So it just adds that extra level of documentation that the FCT or I guess even if it went to a lawyer, they would still have to be an extra charge to do that, because that's just more paper and it involves the title, of course. So as the boots on the grounds for MCAP, you, are they projecting that the growth this year will be substantial in the amount of movement within the mortgage industry, among mortgages itself?

Shawn  16:16  

Well, I'll speak on my behalf. I can't. I shouldn't. I shouldn't, and can't speak on MCAPs behalf, because I'm not an economist, but it is with the amount of mortgages coming due tickets, something like 55% of all mortgages renewing or are renewing in the next two years. So I think we can anticipate this being a major aspect of all lenders book of businesses. And then, of course, the focus for brokers is getting to be very good at transfers, because the opportunity is huge. Even I think it's over the next three years, 85% of mortgages come due. So I know hunting is a big part of being a broker, but having a great database management system in place is key. So, yeah, I personally think this is gonna be a big part of the business.

Len  17:09  

Yeah, I have to agree. We've got, you know, they've forgotten what our number is on the book. We have something like for almost $5 billion worth of mortgages in the book overall. You know, vast majority of that coming, maturing and once again, in some cases, but it's definitely going to be something that I think every broker is going to. Every broker should know. Doesn't mean they all will, but you should have that as front of your mind and paste it on your wall by your computer, or something about all the different possibilities, right? So you can advise those clients correctly every time. So great to have you on today. We won't keep you too long. I know you're a busy guy, so any other words or wisdoms for the brokers listening in?

Shawn  17:55  

Yeah, we've talked a lot about knowledge and knowing where to find information. MCAP has done an incredible job building out our professor, the online portal for mortgage brokers under the Resource tab, just about everything I've covered today, or we've talked about today, you can find it on the products and programs tab in there, there's an entire section on transfers. So I sometimes say, I think they're trying to replace BDMs by building such a great tool. But the truth of the matter is, like you said, boots on the ground, I'm in meetings, your BDMs are busy. You're going to want that information quickly. So being able to log into Professor go into the Resource tab in that transfer group, there's both our switch programs, both the standard and the collateral switch program, but we also have the FCT guide. So you can check out the FCT guide and how their process works. The gold in that whole thing is our transfer matrix. Even if it isn't an MCAT mortgage. I'm going to assume every transfer is an MCAT transfer, but our transfer matrix is a great guide to use. It covers grandfathering, covenant changes. It really gives you a great overview of the transfer world. So I would stick that on your desktop as a go to for information. And then we also got an awesome video. It's a two or three minute video that incorporates the grandfathering and the B20 guidelines, so lots of great stuff in there. Personally, I've got a switch transfer template. So if a broker ever wants to use a template for transfers, I know a lot of people use them for their underwriters. I did this one based on your client interview. So as you go through your interview with their client, this template kind of keys certain questions, things like getting the current insurer mortgage number, checking title, make sure there's not multiple registrations on title. So it's a great tip sheet that I built. If you want to get it, please contact me. We also have a debt analyst calculator, easy for some people to say, not me, apparently, but refinances within transfers. With our fusion product, you can do a transfer and get that line of credit with it without it being refinance. So we've got a great tool that you can use to work backwards on how to refinance a mortgage without it being a refinance. So it's a free refi tool. So if you want access to that, and I'll always say, reach out to your BDMs and your underwriters. BDMs were really important, but the true relationship is with your underwriters. So always feel free to reach out to your underwriter and discuss the deal with them. And then, of course, MCAP, we have quarterly webinars, so go ahead and join us on one of our webinars. And Len, you do a great job hosting team meetings. So BDM meetings are always really good.

Len  20:51  

Excellent. Yeah, no, you're on the portal. And that's where I kind of started to look at that and go like, I think there's seven or eight sections or envelopes in there, whatever you want to call them, right, that that are on different things, not only FCT, but FNF, of course, in the east, and being licensed in six provinces, we are still seeing, starting to see more business out of Ontario, strangely enough. We’ve got a couple of agents who are actually moved back there. So that's starting to show some promise down that way as well. Well, that's great to have you here today, Shawn, we thank you for your time. It's going to be a very busy year, I think, all the way around, and we're looking forward to the partnership that continue that we have with MCAP and hoping 2025 will bump us up into those other numbers. So.

Shawn  21:43  

Thanks for your invite, Len, I really appreciate it. Like I said, your reputation precedes you, and things like this podcast are a great way that you're showing you're giving back to the industry, and I think you're leaving the industry a better place than when we both started. So thank you.

Len  21:58  

Thanks for listening today. I hope you found the information that we provided to be useful in your mortgage journey, and remember you can always find our associates at www dot brokers for life.ca/associates. Have a great day.