With everyone from the federal to provincial to municipal governments taking action to try to cool the hot Canadian real estate market, it makes planning for what’s to come that much more complicated for lenders.
Every time there is a change to a rule, regulation, taxation, etc., you have to consider what that change means to you, both in your current operation but also in the future. Any change to the housing market will impact your underwriting, level of receivables, marketing, risk management and more. The key issue at play is that the housing market dictates the value of your security.
For this reason, it is critical to be on top of the value of your portfolio and identify potential upwards or downwards trends in the marketplace.
However, with so many loans, lending areas and various mortgage products, this can be a daunting task, especially where B lenders getting into higher volumes are concerned.
One way to ease this burden is to look at technology that provides you with the housing data that you need to measure risk and changes in the market, and whether your marketing dollars are being dedicated to the right places.
Quality of Data – First, you need to ensure that you are getting the most accurate data. Ever heard the expression “right from the horse’s mouth”? Well, this couldn’t be truer in this instance. In Ontario, for example, all real estate transfers and registrations are registered in the POLARIS (Province of Ontario Land Registration Information System) database. This database houses the most current property-related information about properties in Ontario at any given time. You need to make sure to deal with a service provider that gets the data right from the source.
Speed of Data – Second, you want to look for a data provider that can deliver the information to you quickly. You don’t want to have to wait.
Customization – Third, your individual needs may be unique to that of another lender and so you want to ensure that you are working with a provider who can provide customized data solutions to meet your needs.
Once you have a data provider, it is just a matter of looking at how you can apply that data to various aspects of your lending operation. Having access to the right information keeps you one step ahead of the game and makes you more competitive, even in a risky housing market.
For more information about how you can access property data when assessing the value of your portfolio, please visit Purview today at http://purview.ca/.