A growing demographic is moving out of Canadian cities and to the suburbs and either commuting in or working remotely. If you are an urban mortgage professional, however, is there a way to tap into this market?
The answer is yes — and we are showing how on today’s blog.
Recently, there have been many new commuter developments, particularly in the southern Ontario region. In the past year alone, we have seen:
- The final stretch of the Ontario 407 expansion recently completed to Peterborough.
- The TTC recently expanded to Vaughan and announced its five-year action plan, which includes improving service and prioritizing surface transit.
- GO Transit also recently expanded to Niagara Falls and extended existing services.
- And there are more planned developments being discussed for 2020 and beyond.
While these expansions make it easier for people in the suburbs to get to the city, it is also working the opposite way, too — it is making the suburbs more accessible for urbanites who are being priced out of areas with high home costs, such as Toronto.
In fact, Toronto Life recently wrote a series on this “Middle Class Migration,” profiling homeowners who have left the city for more affordable pastures.
The couples interviewed have moved to Guelph, Burlington, Brampton, Innisfil, Bracebridge, and Kingston — locations ranging from one to three hours away from Toronto — finding that they could own far more home for far less money. Some of the interviewees have found new jobs, but many kept their old ones – and either commute to work or have negotiated a work-from-home arrangement.
As this becomes increasingly common, mortgage brokers and lenders can tap into the changing market.
In attracting the commuter base, think about mortgage marketing as place to start.
For example, people commuting in the Greater Toronto Area may be living near subway stations, GO Train stops, going to gas stations, and the like. You can use these areas as touchpoints to learn more about the demographic and place your marketing material.
Similarly, think of places where people may be living who want more space. Renters, for instance, may be able to qualify for a mortgage in a suburb, but not Toronto. However, they may not be aware of the possibilities. Condo-dwellers might be looking for more space but feel limited in where they can buy.
You can help explore the possibilities and look for solutions.
Think About The “Why” Behind The Move
Commuting does not always save money, however, it solves another problem — it gives people the chance to own property they might not otherwise be able to own. With this can come more property types too, such as a single-detached home with a backyard versus a condo, more bedrooms for growing families, a large kitchen, and so on. While tiny homes and spaces are a popular trend, they are not for everyone — particularly where families with children are involved.
As house prices in Toronto and similar-sized cities increase, more middle-class consumers are being priced out. The dream of homeownership is becoming increasingly unlikely. That is a problem that you can help solve.
By appealing to the emotions behind a move and helping commuters think of more possibilities – such as remote work or new transit developments – you can make the transition easier.
Using Tools to Expand Your Coverage Area
Property data tools are making it easier than ever for mortgage and financial professionals to work outside of their neighbourhood.
For instance, a Purview report is available for any neighbourhood in Ontario. So even if a client from the city wants to buy a home in Brampton, you could still run a report on that property as long as you knew the address. This report can verify the legal homeowner, estimate a property value, check for fraud flags, and more.
Because of these technological advancements, mortgage professionals and their client bases are not limited to any one area. The tools can help you find more possibilities.
This can expand your mortgage marketing, your product offerings, and more.
See how Purview’s solutions for mortgage professionals can help find more opportunities both in and out of the city. Call 1-855-787-8439 or visit www.purview.ca.