30 Mar

Mortgage Payment Deferrals: What to do, Who & How to Contact

Mortgage Help

Posted by: Garth Chapman

Many of our clients, their family and friends are looking for information and so we hope you find the following to be helpful.

If you have any questions about the following your Jencor Advisor is available and we will do our best to answer questions, find answers and anything else we can do for you.

Each lender has a separate telephone number and or email address for clients to use to make contact and obtain information regarding payment deferral, skip a payment, miss a payment options.

Please prepare yourself prior to your call or email with the following information:

At this time, due to high call volumes you may want to e-mail your lender, though I personally prefer to speak with a real live human. 

  • Be prepared for the possibility of questions on any loss of income you are experiencing or are about to experience.
  • Have your Mortgage statement handy as it contains your account number and other pertinent information.
  • You may be asked about your current assets and income as well all expenses.

Banks’ Customer Service phone numbers to call if and when you want to explore their mortgage relief programs.

• ATB Financial 1-800-332-8383

• B2B Bank 1-866-684-5637

• BMO 1-877-895-3278

• Bridgewater Bank 1-866-243-4301

• CIBC 1-800-465-2422

• CIBC FirstLine – 1.877.454.9030

• Canadiana 1-877-315-1633

• CFF Bank 1-855-767-3031

• Chinook Financial 403-934-3358

• CMLS Financial 1-888-995-2657

• Connect First 403-736-4000

• Equitable Bank 1-888-334-3313

• First National Financial 1-888-488-0794

• First Calgary Financial CU 403-736-4000

• Haventree Bank 1-855-272-0051

• HSBC 1-888-310-4722

• Home Trust 1-855-270-3630

• HomEquity Bank 1-866-522-2447

• ICICI 1-888-424-2422

• Lendwise 1-866-675-7022

• Manulife 1-855-518-7546

• Marathon Mortgage Corp 1-855-503-6060

• MCAP 1-800-265-2624

• Merix 1-877-637-4911

• National Bank 1-800-361-9522

• Optimum Mortgage 1-866-441-3775

• PC Financial 1-888-723-8881

• Scotiabank 1-866-472-6842

• Servus 1-877-378-8728

• RFA (formerly Street Capital 1-877-416-7873

• Radius Financial 1-866-550-8227

• RMG 1-866-809-5800

• RBC Royal Bank of Canada 1-866-809-5800

• TD Canada Trust 1-866-222-3456

• Tangerine 1-888-826-4374

Lenders with online application options

B2B Bank – 1.866.684.5637 / b2bbank.com/COVID19
Bridgewater Bank – 1.866.243.4301 / Outside of Canada 403.817.7000 / customer.experience@bridgewaterbank.ca
CMLS – 1.888.995.2657 / service@cmls.ca
Equitable Bank – 1.866.407.5859 / customerservice@eqbank.com
First National Financial –  1.888.488.0794 / accounts@firstnational.ca (include name/ mortgage  number / property address and question)
Home Trust – 1.855.270.3630 / 416.777.5820 / homehelps@trust.ca
ICICI  Bank– 1.888.424.2422 / Customercare.ca@icicibank.com
Merix / Lendwise – 1.877.637.49111 / customerservice@merixfinancial.com
Manulife – 1.855.518.7546 / banksales@manulife.com
MCAP – 1.800.265.2624 / MYMCAP Portal
Optimum/CW Bank – 1.866.441.3775 / customer.service@cwbank.com
RMG Mortgages – 1.866.809.5800 / mortgagesupport@rmgmortgages.ca

Scotiabank 1.800.472.6842 https://www.scotiabank.com/ca/en/personal/scotia-support/latest-updates/scotia-support/mortgage-payment-relief.html

TD Canada Trust- 1.866.222.3456 – https://www.td.com/ca/en/personal-banking/covid-19/?fbclid=IwAR1sNUkd8KUISgsRgVtREgfQLaBXj6d-DhXJvOm8r2lAe6JsnUEnO8IpcVQ

Our Personal Experiences and those of some clients:

TD Bank: 

We personally got 6-month payment deferrals on 6 TD mortgages, 2 of which are Flexline re-advanceable mortgages (those have HELOCS attached to them, similar to Scotia Step re-advanceable mortgages).

The bank person was on loan from the branch support dept to their mortgage deferral program. She was fantastic and we told her so. From all the calls she is losing her voice but soldiering on in a very helpful and cheery way.

No questions were asked about qualifying us as to why we needed this.

They are not deferring the interest costs on HELOCS, as one should expect. And even though we have lots of access to capital from those HELOCS there was no suggestion at all about our ability to access those HELOCS to fund our mortgage payments.

The interest deferred is capitalized to the mortgage balance owing, and at the end of the current term they will, upon renewal, re-set the payments to allow for the repayment of that deferred interest and deferred mortgage pay-down over the entire remaining amortization.

This is the most generous way a bank could do this. And, we will have the option of paying off any or all of the deferred amounts to reduce the balance and therefore the payments on the new term.

Scotiabank: 

Non-primary residences, including rentals, vacation/cottage properties, are now eligible for the 6-month mortgage payment deferral program (to a maximum of three non-primary properties per borrower). I have advised clients with more than 3 Scotia mortgages to push back, the argument being that since Scotia originally provided you with ‘x’ number of mortgages, and since Scotia has renewed those mortgages over the intervening years, they have an obligation to offer deferrals on all your Scotia mortgages.  Other banks are not limiting the number of mortgages they will allow payment deferrals on.

First Calgary Financial (Credit Union):

We personally got a 3-month payment deferral on one of our rentals properties.

No questions were asked about qualifying us as to why we needed this – their deferrals are granted without question.

The interest deferred is capitalized to the mortgage balance owing, and at the end of the current term they will, upon renewal, re-set the payments to allow for the repayment of that deferred interest and deferred mortgage pay-down over the entire remaining amortization.

This is the most generous way a bank could do this. And, we will have the option of paying off any or all of the deferred amounts to reduce the balance and therefore the payments on the new term

Royal Bank of Canada: 

RBC commercial mortgages will implement interest only payments for six months. No questions asked. You cannot do it for fewer than 6 months. The principle payment is tacked on to the end of your amortization.

The following information is taken from a Money Coaches Canada article

Should I Defer my Mortgage Payments?

According to Vancouver based mortgage broker Marci Dean, each lender has created a policy around the deferral program. In some cases, the lenders default to a 6-month deferral and it’s up to the borrower to call/email to stop the deferral. For other lenders, it is month to month. In that case, borrowers will login or email their request to skip payment the following month.

Again, depending on the lender, interest will either be added to payments after the deferral or it will be added to the mortgage balance at the end of the term which will result in larger payments later.

Here are a few examples from bank lenders:

TD: Payments will be adjusted automatically at the start of your next term or, if you change anything else before renewal, at that time, to ensure your mortgage is paid off at the end of your original amortization period.

Scotiabank: A mortgage payment deferral means that payments are skipped for up to 6 months, during which interest is accrued to the outstanding balance of the mortgage. The amount is incorporated into the monthly payment when mortgage payments resume at the end of the deferral period.

CIBC: The interest that accrues during the deferral period will be added to the principal balance of your mortgage to provide you with immediate payment relief while experiencing temporary hardships. As a result, once payments resume, you will continue to pay interest on the principal, and your payments may increase after the deferral period.

13 Feb

Big-6 Banks’ prepayment penalty charges give reason to consider fair-penalty mortgage lenders

Mortgage Facts & Stats

Posted by: Garth Chapman

From a recent Robert McLister article in the Globe And Mail. 

Committing to a mortgage for five long years exposes people to the most insidious aspect of residential financing: prepayment charges.

And when it comes to such charges – the penalties you pay come when you back out of your mortgage early – some lenders take a greater toll on your bank balance than others.

Big banks are usually the worst. Mortgage finance companies are often the best.

And these bank competitors want you to know it. More and more, smaller lenders are using their preferential penalty calculations as a selling point, as well they should.

This year I’ve seen lenders such as Equitable Bank, Manulife Bank of Canada, XMC Mortgage Corp., Merix Financial, CMLS Financial Ltd., RFA Mortgage Corp., First National Financial LP, and MCAP all go out of their way to step up marketing and educate consumers on how bad penalties from major banks can be. (Mind you, a few of these lenders also have “no-frills” mortgages with high penalties – for example, 3 per cent of principal. So watch out for those.)

Read more here

13 Feb

Insured…Insurable…Uninsurable

Mortgage Facts & Stats

Posted by: Garth Chapman

Once upon a time we had high ratio vs. conventional mortgages, now they are Insured, Insurable or Uninsurable.

How it Was Then

High ratio mortgage – down payment less than 20%, insurance (aka CMHC insurance) paid by the borrower.

Conventional mortgage – down payment of 20% or more, the lender had a choice whether to insure the mortgage or not at their own expense.

How it is Now

Insured –a mortgage transaction where the insurance premium is or has been paid by the client.  Generally, a down-payment below 20%.

Insurable –a mortgage transaction that is portfolio-insured at the lender’s expense for a property valued at less than $1MM that fits insurer rules (qualified at the Bank of Canada benchmark rate over 25 years with a down payment of at least 20%).

Uninsurable – a mortgage that is ineligible for insurance. Examples of Uninsurable are refinances, single unit rentals (rental buildings with 2-4 units are Insurable), purchases/transfer for properties greater than $1MM, equity take-out mortgages greater than $200,000, any mortgage with an amortization greater than 25 years.

So what does this mean when you need a mortgage for a purchase or when you have a maturing mortgage you want to transfer?

  • If it was originally insured (borrower paid default insurance – aka CMHC insurance), we can get insured rates (lowest rate tier).
  • If it was originally back-end insured by the lender (basically the same as being conventional) we can get insurable rates (2nd lowest rate tier).
  • If the mortgage was placed before October 17, 2016, we can grandfather the insurable rates even if it was a $1 million+ value house and/or with a 30-year amortization.  It then depends if it was insured (borrower-paid insurance) or conventional as to whether you qualify for insured or uninsurable rates.
  • If it was placed after October 17, 2016 and the property was over a $1MM value or had a 30-year amortization, we can only get uninsurable rates (highest rate tier).

For insurable rates we need to consider the current loan to value and the beacon score.

2 Jul

What Rate Will I Get with Today’s Mortgage Categories?

Buying & Refinancing a Home

Posted by: Garth Chapman

Once upon a time it was fairly easy to answer the question “what rate will I qualify for?”  Back then higher down-payments resulted in lower interest rates on your mortgage.  Now neither of those are the case.

Once upon a time you either had a high ratio or a conventional mortgage.

Now you will have an insured, or insurable or uninsurable mortgage.  The reference to insurance is what most people understand as a high ratio mortgage insured by CMHC, Genworth or Canada Guaranty.

Once Upon a Time:

  • High ratio mortgage – down payment less than 20%, with insurance (aka CMHC fees) paid by the borrower.
  • Conventional mortgage – down payment of 20% or more, and the lender had a choice whether to insure the mortgage or not at their own expense.

Now it is more complicated:

  • Insured – Most often a down-payment or refinance equity below 20%. A mortgage transaction where the insurance premium is or has been paid by the borrower, which often means a high ratio mortgage.
    • Interest rates are the lowest in the range.
  • Insurable – Fits all the same guidelines as an insured mortgage but the borrower has more than 20% for a down payment.  A mortgage transaction that is often portfolio-insured at the lender’s expense.  Property must be valued at less than $1MM that fits insurer rules and is qualified at the Bank of Canada benchmark rate over 25 years with a down payment of at least 20%.  Property cannot be a Rental.  The loan-to-value and your FICO (credit) score will determine what rate you qualify for.
    • Interest rates are slightly lightly higher than insured rates.
  • Uninsurable – All mortgages that can’t be insured.  Examples include refinances, single unit rentals (rentals between 2-4 units are insurable), purchases and transfers for properties with valued at over $1MM, equity take-out’s greater than $200,000, amortizations greater than 25 years.
    • Interest rates are at the higher end of the range, and are determined based on loan-to-value (LTV) %.

What does this mean when it comes to shopping for best rates and terms when your mortgage matures and you have the opportunity to move it to another lender?

  • If your mortgage was originally insured (borrower paid insurance), we can get insured rates.
  • If your mortgage was originally back-end insured (basically the same as being conventional) we can get insurable rates.
  • If your mortgage was placed before October 2016, we can grandfather the insurable rates even if it was a $1 million+ value house or 30 year amortization. It then depends if it was insured (client paid insurance) or conventional as to whether we get insured or uninsurable rates now.
  • If your mortgage was placed after October 2016 and the property value was over a $1 million or the mortgage had a 30 year amortization, we are restricted to uninsured rates.
25 Jun

Ultra Low Rate websites – What’s The Story?

About Mortgage Brokers

Posted by: Garth Chapman

Ultra low mortgage rates, offered through various internet sites, are often restricted mortgages.  You may have higher prepayment penalties than generally available in the marketplace, as high as 3% of your mortgage balance.  Low rate mortgages often do not allow an in-term transfer, which is generally referred to as porting the mortgage with you to a new home.  Many do not allow blend and increases (refinances), you must pay the penalty to do a refinance (get equity out of your home).

Low rate sites are looking for no hassle, no muss, no fuss mortgage applications.  So if you happen to be an hourly worker, does your 2 year average and your YTD income substantiate the required income to qualify?  Does your source of down payment meet new government requirements?  When will you be told if they do or do not?  Self-employed, contract worker, income from a couple of sources, you can spend a week thinking you have sent in the correct paperwork only to find out you have not been approved.  Unfortunately, it may mean your file is just a little too time consuming for the low rate site.

Low rate sites use salaried staff who need to meet production quotas.  They do not have time for problems or complex scenarios.  They are looking for the 20% to 30% of the market who have the perfectly simple scenario.

Low rate sites are not able to work through other issues, a unique property size or type, square footage issues, condo by-laws or financial statement problems, post tension cable or special assessment requirement.  Will the low rate site take the time to find the most suitable lender or insurer?  Lenders will have sliding scales, can you get an exception, can you find a new lender before condition day?

Low rate sites often entice you with the initial promise of an attractive rate and then after you have completed the application and have sent them all your documents will tell you that you don’t qualify for that rate, but that you do qualify for some other higher rate.

Low rate sites do not have the staff to help ensure the rest of the home buyer process gets completed on time.  For example, meet the financing condition date, ensure the lender instructs money to lawyer on time, and insure you get possession on time to avoid late interest charges.

Low rates sites will ask you to sign a non-compete agreement that if they present you with a commitment, you will not obtain your mortgage from another bank, lender, or broker, and if you choose to do so, you will be charged a fee.

Your Mortgage Broker has access to many of these low-rate restricted mortgage products.  So call and ask your Broker what you qualify for, and if a low-rate mortgage is a good fit for you.

12 Mar

First Time Home Buyers Plan and Tax Credits (HBP & HBTC)

Income Tax

Posted by: Garth Chapman

First, some little-known good news: you don’t actually have to be a first-time homebuyer to qualify.  A first-time home buyer you must not have lived in another home owned by you or your spouse or common-law partner in the year of acquisition or any of the four preceding years.

So now let’s unpack the First-Time Home Buyer’s Tax Credit (HBTC).

The First-time Home Buyers’ Tax Credit was introduced to assist Canadians in purchasing their first home. It is designed to help recover closing costs, such as legal expenses, inspections, and land transfer taxes, so you can save more for money for a down payment.

The Home Buyers’ Tax Credit, at current taxation rates, works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable. In addition, the home you purchase must be a ‘qualified’ home, described in more detail below. If you are purchasing a home with a spouse, partner or friend, the combined claim cannot exceed $750.

You will qualify for the HBTC if:

  • you or your spouse or common-law partner acquired a qualifying home; and
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.

Here is the link to the CRA webpage on the HBTC.

12 Mar

Are you Stressed by the Mortgage Stress Test? Here are a Few Solutions

Buying & Refinancing a Home

Posted by: Garth Chapman

Alberta’s real estate markets are stressed. Prices are flat or down.  So this is a Buyer’s Market, and yet so many Buyers are finding it difficult to qualify for the mortgage they need, largely due to the new mortgage Stress Test.  Here are a few smart ways that you can use to achieve the mortgage you need to buy the property that suits your family’s needs.

Use the flex down or borrowed down payment programs offered though one of our mortgage lenders.

You must qualify, the payment for the loan must fit in your total debt service ratio.

You must have good credit, meeting minimum beacon score requirements.

The CMHC default insurance premium is higher, but by using this option you can borrow the down-payment.

First time home buyers can obtain a new RRSP loan and 90 days later use the First Time Home Buyers Plan and withdraw up to $25,000 for a home down-payment.  Pro Tip– you are considered a First Time Home Buyer if you have not owned a home in the previous 4 years.

Call your favourite Jencor Mortgage Broker, and we will arrange an RRSP loan and a mortgage pre-approval as per your financial qualifications. Couples can both do this.

90 days later, you withdraw up to $25,000 (per person) from your RRSP plan(s) for down payment.

Then you can get to work with your favourite Realtor to buy a home.

IMPORTANT – The key element of this is that our best mortgage lender for this program does not require the loan to be repaid when funds are withdrawn for the down-payment, whereas most lenders do.

Is a Large Vehicle Loan Payment Reducing the Mortgage You Qualify for?

Whether you are refinancing, buying a new home, or just wanting to improve your cash flow, is a large vehicle loan payment reducing your options!

We have a vehicle finance company that will aggressively extend out an amortization, reducing the vehicle payment. The result, all other things being equal, a bigger mortgage. We had one couple rewrite their vehicle loans, and they got a $70,000 bigger mortgage. Their realtor was able to write an offer in the neighborhood they have always wanted to live in. Got a great deal on the house as well.

Call me today if a lower vehicle loan payment could help you.

Special Programs for Self Employed Buyers

  • The federal government continues to impose restrictive guidelines on all mortgage applicants. One group particularly hard hit are business for self borrowers (aka BFS). Many BFS clients hire good Tax Accountants. Good Tax Accountants are great for a lower tax bill, but low taxable earnings are not so good for obtaining a mortgage.  Most lenders require two years of personal tax returns, notice of assessment, and corporate financial statements.  If your clients are being declined after providing all of that information perhaps one of the special programs that still exist could help.
  • We have lenders who will consider:
    • Using an insured stated proof of income mortgage to 90 % loan to value. We do need to provide information to confirm the reasonableness of the application.
    • Using an insured stated proof of income mortgage to 65% loan to value. Again we need to confirm reasonableness but no insurance premium applicable.
    • Using a series of bank statements to confirm business cash flow to support a mortgage. Maximum 80% loan to value.
    • Using a cash flow analysis of the corporate financial statements to support the income requirements 80% loan to value.
    • We have some other esoteric programs too hard to describe in one line.
    • Your Jencor Agent can often help a BFS client who has been frustrated by their own Bank or by an inexperienced Mortgage Broker.

Some combination of these ideas may just help you, your friends or relatives get the mortgage you need for the home you want.

21 Feb

Bruised Credit And Need A Mortgage?

Credit

Posted by: Garth Chapman

Many people think that their credit score will hold them back from obtaining a mortgage. For some, they may have work to do on their debt beforehand, but sometimes people believe their credit is poor, only to find that it isn’t as bad as they thought. It pays to seek help from a Jencor Mortgage Advisor to find out where you stand.
What is bruised credit and how does it impact your ability to obtain a mortgage?
Mortgage lenders use your credit reports to evaluate risk by looking at your repayment history to see how responsible you are with credit. Although a 790-beacon score and zero late payments in the last three years is ideal for all lenders, bruised credit means something slightly different to some lenders. So, what is bruised credit? It can be a result of many circumstances including, late payments on loans, collections & judgements, bankruptcy, consumer proposal or credit counselling, late payments on your mortgage, foreclosure & even identity theft. Traditional mortgage lenders and insurers will not commonly approve applications with credit histories that show challenges with borrowing in the recent past. The good news is that there are still options with alternative mortgage lenders with a minimum down payment of 20% to 30%. With these mortgages, you will be paying higher interest rates, usually for two years, while you rebuild your credit. We can then transition you into a regular mortgage.
Rebuilding credit takes time.
There are some things you can do which will bring your score up substantially in one swoop, but normally it takes time to rebuild. Here are some of the basics to improve your credit:

1. Have at least two credit accounts reporting to your credit report besides cell phone bills, school loans or mortgages. Use your credit cards every month, even just one purchase monthly and pay it in full before the due date. The credit limits should be at least approximately $2000 each.

2. Always pay all your debts on time – making even the minimum payment on time, is better than making a larger payment late. If need be, reach out to the account holder and make payment arrangements. Never ignore a payment and hope for the best.
No Late mortgage payments – these are extremely detrimental to you obtaining a mortgage.

3. Do not max out your credit. Use less than 50% of your limits and never go over the limit. Going over limit impacts your score immediately and severely, and even when you bring it back in line, it still has a lingering effect on your score.

4. Do not apply for too much credit and do not cancel existing credit – both these actions will negatively impact your score – yes, you would think that cancelling existing credit would help, but by doing so, you are reducing the overall credit available to you and therefore immediately increasing credit usage. Also, by cancelling credit, you might be cancelling a credit card that you have held the longest and longevity of credit has an impact on your rating.

5. New loans, such as car loans will have an immediate negative impact on your score – so do not obtain a new car loan if you are thinking about obtaining a mortgage. Because of the size of the loan, your credit usage increases substantially.

6. Do not let anything go to collections – even though some utilities, rental payments, gym memberships and the like, do not report to your credit bureau, when they go to collections, they will be reported.

7. Ensure that everything on your report is correct. If not, you must take steps with the creditor or the reporting agency (Equifax or TransUnion) to correct them.

8. In some cases, if you already own your home, there may be an opportunity to consolidate debt into your mortgage and improve your credit.

Don’t be defeated; get advice, get back on track!

Ultimately, how each item impacts your score, depends on how it interacts with everything else on your report. One late payment, for some with long-held credit and very little past delinquencies, will have less of an impact than for someone with bruised credit or someone with new credit.

If you have bruised credit, don’t write off your dream of home ownership. Contact your Jencor Mortgage Advisor who can advise you on the necessary steps to obtain the mortgage you need.

Written and originally posted here
by Ayashah Kothawala – Mortgage Advisor Jencor Mortgage

4 Feb

4 Easy Steps to Create a Down Payment Using a New RRSP Loan

Mortgage Tips

Posted by: Garth Chapman

First time home buyers can obtain a new RRSP loan and 90 days later use the First Time Home Buyers Plan and withdraw up to $25,000 for a home down payment.

Pro Tip- you are considered a First Time Home Buyer if you have not owned a home in the previous 4 years.

Four Easy Steps

1. Call your favourite Jencor Mortgage Broker.

2. We will arrange an RRSP loan and a mortgage pre-approval as per your financial qualifications. Couples can both do this.

3. 90 days later, you withdraw up to $25,000 (per person) from your RRSP plan(s) for down payment.

4. Work with your favourite Realtor to buy a home.

The key element of this is that our mortgage lender does not require the loan to be repaid when funds are withdrawn for the down-payment. Most lenders do.

12 Jan

What is a Monoline lender? 

About Mortgage Brokers

Posted by: Garth Chapman

What is a Monoline lender?

A Monoline lender, by definition, is a mortgage lender that focuses on just mortgages.  They do not have any other products that can be cross-sold and most Monolines securitize their mortgages, instead of keeping them on their balance sheet.  Monolines are secure, follow the same rules as all Canadian Banks and they deal exclusively with Mortgage Advisors on their clients’ behalf.

Advantages of a Monoline lender

  • They focus on one thing: mortgages.  For you that also means they do not try to cross-sell you into credit cards, investments or insurance.
  • Monolines have a much lower IRD (Interest Rate Differential) pre-payment penalty calculation, which is important if you are required to get out of your mortgage before the end of your term. In my own personal experience the Monoline penalties are up to 2/3 less than those of the big-six banks.
  • They often have products that specialize in a range of solutions aimed at borrowers with lower credit scores and those with self-employed income sources.
  • No storefronts mean lower overhead which in turn they pass along to you in the form of lower interest rates.
  • Monolines are heavily regulated and follow the same lending guidelines as all the major banks in Canada
  • Pre-payment options are often greater than the big-six banks offer.
  • Online access to your mortgage and customer service departments is excellent – it has to be – they don’t have branches.

This article by financial writer Rob Carrick was published in the Globe and Mail comparing Scotiabank to ING regarding their vast differences in penalty calculations.  As much as we try to explain what a Monoline differs from a bank, an article from a third party drives it home.

Even when the rates are the same between banks and the Monoline borrowers should always factor the potential IRD into their decision making as one never knows what will happen in the future. 

To summarize, Monoline lenders tend to provide better rates over the big banks, have favourable penalty calculations, and foster relationships with brokers to ensure the business comes back to them (including having a renewal model to reduce churn).