There is no doubt about the fact that a lot of mortgage brokers are getting telephone calls from borrowers or customers as they are concerned about the increasing rates of interest, including uneven financial overview.
With the Bank of Canada’s eight continuous hikes in the rates, including the inflationary pressures as well as the real possibility of a recession in the year 2023, it is super simple for the clients to take a wild guess that everything is going to fall just before they sign a deal for the massive purchase. Overall, this negatively affects the business of mortgage brokers this year.
As per Frances Hinojosa, the CEO of Tribe Financial Group, the brokers will see that the business will go down from 20 percent to a massive percentage of 60. According to him in the Mortgage Professional Canada webinar, which is Cultivating Consumer Confidence via Candid Conversation, everyone is sailing in the same boat.
To control the situation, the brokers can somehow be helpful in reassuring the concerned borrowers:
Be the market expert of your clients
First things first, during the tumultuous economy of Canada, clients are anxious or nervous about any of their chances to buy the new home of their dreams. The best way for mortgage brokers to calm down their clients is to let them know about the exact situation which is happening in the market. It is better for mortgage brokers to be well aware of everything and be educated about the current scenario of the market, where inflation is happening, what is happening with a particular client, why you have put them in a certain mortgage and why, along with that where you client is today with the finances, etc.
With the right kind of knowledge and details, mortgage brokers will be able to call up their clients when new interest rates come out by the Bank of Canada. Also, as per Tracy Valko, the founder of Valko Financial, it is a great idea to keep sending emails to the clients so that they are well aware of what is happening in the Canadian market. And if any major changes are happening in the market, then it should be the brokers to be highly trusted by the clients.
Be ready to be your clients (real estate) therapist
Another important thing to understand should be the current real estate market conditions as well as trends by your clients. The clients are not market experts and are not going to become ones even if they are fully guided or provided with the right kind of information by a broker.
According to Brian Hogben, who is the owner and principal broker at Mission 35, mortgage brokers should start with simple questions with their clients. For instance, about their affordability, what is their current situation, if the payments go up, then can they afford it or not?
The conversation should revolve around the client about their needs and wants. This can be helpful in taking off the stress of the various market conditions. This also allows the mortgage brokers to be relatable in front of the clients. In place of being a cog in the real estate marketplace, mortgage brokers can easily become trustworthy and are focused on guiding the clients throughout their journey.
As per Valko, talking to the people and validating them can help the brokers to be reliable in their stories and any situation. Plus, this can help in building a connection with the clients, which can result in helping the clients to work out various financial solutions.
Keep up with honesty about what you are unaware of
There is no doubt about the fact that no one can say anything about how certain the future will be when it comes to mortgages and real estate, including the Bank of Canada. According to Ryan Boughen, a mortgage broker based in Regina, says that ‘the reality is unknown to everyone because of which we are having a conversation. Also, it is because of the idea that happened last year that everyone is going to be facing massive high inflation.’
No wonder clients are looking for some certainty when it comes to their mortgage, rate hikes, as well as the complete housing market, etc., which is why being crystal clear about the things that you don’t know can be helpful in building customer confidence as what a mortgage broker does know.
Other ways that mortgage brokers can adopt to guide the borrowers during the current minefield
There are many other ways as well that can help mortgage brokers to guide the borrowers, and some of them are mentioned below:
Educate the borrowers
Not many borrowers are fully aware of the existing market scenarios, which is why educating them about everything related to the mortgage market can be helpful in easing their fears. Also, this can help in stopping them from any expensive or irrelevant mortgage errors. Sometimes, the information sources of the borrowers are their parents, which is no longer applicable as per the current mortgage market. Also, educating them depends on their age. Older borrowers will like the information in a more traditional way, like brochures, etc., whereas younger borrowers will like it in more modern ways, like the internet, social media, etc.
Be accurate
Every mortgage broker needs to focus on the point that they are the people who can offer accurate as well as reliable information to the borrowers. This also means that other sources like social media or friends cannot properly do that. Currently, borrowers find it very tempting to churn out the information using Google searches, but it is better to have a specialist to offer proper knowledge.
Breadth of knowledge
It is better for mortgage brokers to widen their scope to encompass politics as well as economic issues that are creating an impact on the mortgage market. This can be helpful in reassuring the concerned borrowers in many ways.
Conclusion
These are known to be stressful times for borrowers. The housing, as well as mortgage markets, are fluctuating like never before, which has alarmed every borrower and has raised concerns. The borrowers are looking for serious help as well as information from everywhere. It is highly essential that they get the right kind of mortgage advice and solutions from a reliable mortgage broker without misleading them in any way. The above-mentioned ways can work wonders for mortgage brokers to reassure the concerned borrowers. Also, these ways can be beneficial in building a strong base of clients or borrowers even during tough times in Canada.
With the Bank of Canada’s eight continuous hikes in the rates, including the inflationary pressures as well as the real possibility of a recession in the year 2023, it is super simple for the clients to take a wild guess that everything is going to fall just before they sign a deal for the massive purchase. Overall, this negatively affects the business of mortgage brokers this year.
As per Frances Hinojosa, the CEO of Tribe Financial Group, the brokers will see that the business will go down from 20 percent to a massive percentage of 60. According to him in the Mortgage Professional Canada webinar, which is Cultivating Consumer Confidence via Candid Conversation, everyone is sailing in the same boat.
To control the situation, the brokers can somehow be helpful in reassuring the concerned borrowers:
Be the market expert of your clients
First things first, during the tumultuous economy of Canada, clients are anxious or nervous about any of their chances to buy the new home of their dreams. The best way for mortgage brokers to calm down their clients is to let them know about the exact situation which is happening in the market. It is better for mortgage brokers to be well aware of everything and be educated about the current scenario of the market, where inflation is happening, what is happening with a particular client, why you have put them in a certain mortgage and why, along with that where you client is today with the finances, etc.
With the right kind of knowledge and details, mortgage brokers will be able to call up their clients when new interest rates come out by the Bank of Canada. Also, as per Tracy Valko, the founder of Valko Financial, it is a great idea to keep sending emails to the clients so that they are well aware of what is happening in the Canadian market. And if any major changes are happening in the market, then it should be the brokers to be highly trusted by the clients.
Be ready to be your clients (real estate) therapist
Another important thing to understand should be the current real estate market conditions as well as trends by your clients. The clients are not market experts and are not going to become ones even if they are fully guided or provided with the right kind of information by a broker.
According to Brian Hogben, who is the owner and principal broker at Mission 35, mortgage brokers should start with simple questions with their clients. For instance, about their affordability, what is their current situation, if the payments go up, then can they afford it or not?
The conversation should revolve around the client about their needs and wants. This can be helpful in taking off the stress of the various market conditions. This also allows the mortgage brokers to be relatable in front of the clients. In place of being a cog in the real estate marketplace, mortgage brokers can easily become trustworthy and are focused on guiding the clients throughout their journey.
As per Valko, talking to the people and validating them can help the brokers to be reliable in their stories and any situation. Plus, this can help in building a connection with the clients, which can result in helping the clients to work out various financial solutions.
Keep up with honesty about what you are unaware of
There is no doubt about the fact that no one can say anything about how certain the future will be when it comes to mortgages and real estate, including the Bank of Canada. According to Ryan Boughen, a mortgage broker based in Regina, says that ‘the reality is unknown to everyone because of which we are having a conversation. Also, it is because of the idea that happened last year that everyone is going to be facing massive high inflation.’
No wonder clients are looking for some certainty when it comes to their mortgage, rate hikes, as well as the complete housing market, etc., which is why being crystal clear about the things that you don’t know can be helpful in building customer confidence as what a mortgage broker does know.
Other ways that mortgage brokers can adopt to guide the borrowers during the current minefield
There are many other ways as well that can help mortgage brokers to guide the borrowers, and some of them are mentioned below:
Educate the borrowers
Not many borrowers are fully aware of the existing market scenarios, which is why educating them about everything related to the mortgage market can be helpful in easing their fears. Also, this can help in stopping them from any expensive or irrelevant mortgage errors. Sometimes, the information sources of the borrowers are their parents, which is no longer applicable as per the current mortgage market. Also, educating them depends on their age. Older borrowers will like the information in a more traditional way, like brochures, etc., whereas younger borrowers will like it in more modern ways, like the internet, social media, etc.
Be accurate
Every mortgage broker needs to focus on the point that they are the people who can offer accurate as well as reliable information to the borrowers. This also means that other sources like social media or friends cannot properly do that. Currently, borrowers find it very tempting to churn out the information using Google searches, but it is better to have a specialist to offer proper knowledge.
Breadth of knowledge
It is better for mortgage brokers to widen their scope to encompass politics as well as economic issues that are creating an impact on the mortgage market. This can be helpful in reassuring the concerned borrowers in many ways.
Conclusion
These are known to be stressful times for borrowers. The housing, as well as mortgage markets, are fluctuating like never before, which has alarmed every borrower and has raised concerns. The borrowers are looking for serious help as well as information from everywhere. It is highly essential that they get the right kind of mortgage advice and solutions from a reliable mortgage broker without misleading them in any way. The above-mentioned ways can work wonders for mortgage brokers to reassure the concerned borrowers. Also, these ways can be beneficial in building a strong base of clients or borrowers even during tough times in Canada.
