Introduction
Self-employment in Canada has been growing faster than traditional employment for years, yet these qualified borrowers are being turned away by banks every single day. Not because they can't afford a home, but because banks can't figure out how to read their tax returns. This represents a massive and growing market of qualified borrowers being underserved – and if you're not set up to help them, someone else will be.
In this special episode of The Mortgage Broker Podcast, Dean Lawton and Derek Williamson dive deep into the business for self (BFS) market and reveal why mastering alternative lending should be every broker's priority in 2024.
The Mortgage Masters Initiative: Free Education for All
For the past two months, A Better Way Mortgage Group has been running an unprecedented initiative through Mortgage Masters at mortgage-masters.ca. The premise is simple: free, high-quality education for every licensed mortgage broker in Canada – no paywall, no strings attached.
The response has been extraordinary. In just three weeks, over 339 members signed up, growing to over 500 brokers from across the country. This isn't just ABW team members – these are brokers from coast to coast hungry for real, actionable education.
The platform includes:
- AI tools hub
- Full webinar series
- Canadian Perfect Loan Process course overview
- Interactive coaching faculty
As Derek explains, "87% of brokers in the industry hit a ceiling between somewhere around 25 and 40 million and they really have no systems to break through. We believe that when the industry gets better, everyone wins."
The Five-Part Webinar Series Success
Over the past two months, the team has delivered a comprehensive five-part live webinar series, with each 60-minute session drawing unprecedented engagement:
Session Breakdown:
- Session 1: PLP Framework Foundation and Mindset
- Session 2: Building Your Lead Funnel
- Session 3: The Art of Strategic Outreach (featuring Gary Morris)
- Session 4: Tech Stack Deep Dive
- Session 5: Mastering Alternative Lending (BFS Focus)
The engagement has been remarkable, with brokers ranging from $5 million to $150 million in annual volume all participating actively, asking real questions, and staying engaged throughout each session.
Why BFS Matters: The Massive Market Opportunity
The business for self market represents the single biggest growth opportunity most brokers are ignoring right now. Here's why this matters:
The Numbers Don't Lie
- Self-employment continues to grow faster than traditional employment
- Canada's alternative lending sector has been growing at over 16% annually
- A Better Way saw a 15% increase in alternative mortgage fundings in 2024
- All three default insurers (CMHC, Sagen, and Canada Guarantee) now have specialized BFS programs
Broker Advantages in Alt Lending
As Derek points out, "Mortgage brokers own the alternative market. We're not competing with anyone else in this market unless you're competing with another mortgage broker, which should absolutely never be the case."
Key advantages include:
- No competition from banks
- Higher conversion rates
- Trailer fee models for long-term revenue
- 65% or higher renewal rates with quality alternative lenders
- Higher qualification opportunities in a challenging market
The Revenue Opportunity
Alternative lending is no longer a last resort product. Some of the wealthiest clients are opting for alternative lending because it makes strategic and financial sense. Derek shares from his 10-year career experience: "I've never lost an alternative mortgage to another broker ever."
The long-term revenue model is compelling. With most alternative lenders offering trailer fees and 65% or higher renewal rates, these clients often stay long-term rather than the old model of fixing their situation and moving to prime in a year.
The Confidence Gap
Despite the opportunity, Derek estimates that maybe only 20% of brokers are extremely confident in handling alternative BFS files. Many experienced brokers are still passing these deals off because:
- They don't understand the alt lending landscape
- They fumble the fee conversation
- They don't know which lenders will actually do the deal
- The process involves different conversations and more documentation
This represents a massive opportunity for brokers willing to develop expertise in this area.
Session 5: Mastering Alternative Lending
The finale session on April 15th focuses specifically on the BFS market and covers:
- The BFS market opportunity and how to position for it
- Top alternative lenders who will actually do the deal
- Fee conversations: how to discuss lender and broker fees with confidence
- Prospecting strategies for finding BFS clients
- How to become the go-to broker for self-employed borrowers
Derek will provide exact scripting for fee conversations and templates for presenting alternative lending to clients in a way that makes them comfortable with the product.
Additional Learning Opportunities
Beyond the webinar series, brokers can access:
- AI Workshop (April 17th) - "Your First Five AI Wins as a Mortgage Broker"
- Free 10th Degree AI Mortgage Mastery Course (48 lessons, 83 prompts)
- All session replays available on the Mortgage Masters dashboard
Key Takeaways
- Self-employed borrowers represent a massive, underserved market growing faster than traditional employment
- Alternative lending has evolved from last resort to strategic choice for many clients
- Mortgage brokers have exclusive access to this market with no bank competition
- Long-term revenue opportunities exist through trailer fees and high renewal rates
- Most brokers lack confidence in this area, creating opportunity for those who develop expertise
- Free education and resources are available to help brokers master this market
Why You Should Listen
If you're a mortgage broker looking to break through revenue plateaus and tap into a growing, underserved market, this episode reveals exactly why alternative lending should be your focus. With practical insights from industry leaders who have built a $4+ billion annual funded volume brokerage, you'll understand not just the opportunity, but how to seize it.
Whether you're doing $5 million or $150 million annually, the BFS market represents untapped potential that could transform your business. The question isn't whether this market will continue to grow – it's whether you'll be positioned to serve it.
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