Co-founder on bridging borders and breaking new ground
Matthew Nichol (pictured) grew up around the mortgage business. His father was well known for building some of the biggest companies in Canada. But even though he witnessed his father's success, he had no desire to join the family business. Not at first, anyway.
His journey from there to where he is now—a seasoned broker and entrepreneur about to launch his business in the United States—has been diverse, from working with technology companies to aiding in the launch of Equifax verification in Canada.
"I've been a banker, I've been broker, so many different things along the way," Nichol said. Six years ago, he co-founded Citadel Mortgages, aiming to revolutionize the Canadian mortgage market with a client-first philosophy he didn't see in the market then. And it turns out the market was ready for it.
"We've got 20-plus awards across Canada, where we're licensed in every province," he said. "We've built quite a good presence here and a good structure. And we always knew we wanted to prove our concept, which was different than the game market, and bring it down to the US market."
Citadel was set to launch into the US market in early 2020, but the onset of the COVID-19 crisis delayed their plans.
"We were ready to roll out in the spring, but then, with the closed borders and the lockdowns, our plans were pushed to the wayside," Nichol recalled. Despite the setbacks, they persevered, planning a full launch in 27 states come February.
The company’s US expansion will take place under a separate brand and brokerage from its Canadian operations, with the name to be revealed upon launch.
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Nichol’s vision goes beyond borders, aiming to help Canadians and Americans navigate the property market.
Let's help Canadians get into homes. Let's prove our model and take our concept down South of the border, where obviously there's a larger population and landmass to work with, " he said. "You know, because in the beginning, we looked at it and said, ''OK, this is very easy, and it's this process.'' The second person we spoke to, well, it seemed more difficult.
"It would cost a lot more capital in the beginning and such. Now, after meeting people in the US and going through some discoveries, we've funneled down to ‘OK, here's our game plan. Here's what we need to do. We've started XYZ, but we can add in ABC now along the way and make everything more efficient.’'"
Australia is also on the horizon, given the similarities in the financial markets.
Entering a new market is never easy, but it's even more complicated when crossing borders. "You always have to build that network in advance. You always have to go and look at different people and different experiences to help you navigate it," Nichol advised.
With many Canadians looking to invest in US properties, Nichol believes the opportunities outweigh all the challenges in cross-border business. Nichol’s enthusiasm became more palpable as he talked about the potential in the US market.
"You know, if you're in a disaster-ridden area like Florida and Fort Lauderdale, within 12 months, you can sign up and get an FHA 100% financing and any state you want to go to," he shared. He contrasted this with the more restrictive Canadian market, highlighting the diverse products available in the US.
Nichol and his business partner are exploring the possibilities in the US. The diversity in state regulations and the availability of different financing options make the US market particularly intriguing for them.
"We've done commercial deals here, and there are so many other products in the US that could help," he said. "We've kind of tiptoed into that side, and it's very intriguing and exciting, to be honest."
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