In today’s Canadian housing market, mortgage broker competition is high. Partly this is because there may be less mortgages to go around.
Mortgage Broker News recently reported that Canadians are at their most pessimistic about finances so far.
According to analysis from MNP Ltd., over half (54%) of the Canadian survey respondents are deeply concerned about their ability to repay debts, while 47% indicated a belief that they would fall into financial trouble if interest rates increase further.
An alarming 35% stated that another interest rate hike could push them towards bankruptcy.
What does this mean for mortgage brokers? Beyond increased competition, it may mean taking a different approach.
While brokers can provide rate comparisons, their service actually includes much more than that — due diligence, offering AVM valuations, and educating clients about their property, to name a few. With increased competition and more consumer debt in mind, the best strategy for mortgage brokers right now may be taking a helping-hand approach.
Why do consumers go to mortgage brokers?
- People go to brokers because they want to be represented by a professional who provides a smooth process.
- People often do not accurately know all of their property and financial information, which is where due diligence and validation comes into play.
A consumer wants a broker who:
- Can obtain competitive deals (this does not just mean interest rates).
- Will ensure a smooth closing.
- Is knowledgeable and manages the process in a way that there are no surprises.
An agent or broker is not just a rate shopper and your customers know it.
Keys to success:
- Strong mentors and relationships. New mortgage brokers can benefit greatly from working with more experienced ones. Similarly, having strong relationships between broker-and-agent partners and in your community can make a big difference.
- Continuing education. Ongoing learning can help your team stay on top of changing mortgage trends, opportunities, and more.
- Strong alignment and lender relationships. Your lenders are a referral source. Having a strong relationship and data alignment will make the partnership that much easier to manage.
- Tools and technology. These resources help mortgage brokers stay up-to-date on what is happening in their community locally and wider. Tools provide brokers and agents with more agility, flexibility, and knowledge in everything from marketing your services to the mortgage application process.
Purview’s tools for mortgage brokers can help you stay ahead of the competition.
With our Property Details Report, you can investigate a property from the application stage. Using the Comparable Sales report, you can look at home trends nearby. With the Equity Estimate, you can see the amount of equity available in a property and make upsell suggestions or find opportunities for new mortgage products your clients may not be aware of.
A more competitive marketplace can be an opportunity. With an aligned team and tools that give you more, you can differentiate yourself and help your clients in the process.
Learn more about Purview’s mortgage technology today. Call 1-855-787-8439 or visit www.purview.ca.
Purview is just one of Teranet’s Financial Services Solutions; stay tuned for our upcoming portfolio unveiling!