Page 22 - Sports Energy News, Cornwall, Issue No 132

22 Issue #132 January 2024 www.sportsenergynews.com

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Brian Johnston Continued from page 12 examining credit policies and changing and unparalleled advice that with business development managers
Canadian demographics. “The gig experienced mortgage professionals (BDMs) – already a key element of the
shift, according to Larson, is to ready economy is huge now,” Armstrong could bring to the table.
their business for busier times, “for explained. “Ten to fifteen years ago, it broker-lender relationship – set to see
the inevitable change in that market was ‘job letter, pay stub, or tax returns.’ He noted, “A good mortgage broker their value grow even further.
when things will get better, when they is reading the economic reports, and “What you’re going to see is BDMs
Now it’s ‘job letter, pay stubs, bank reading the graphs and charts and
will stabilize, when there will be more picking up the phone, calling and
statements, contracts, TikTok number predictions, and they’re now giving
positive news, and a more active real saying, ‘Can I learn your business better
of subscribers on an application.…’ their clients advice on what they
estate market to participate in and help so I can help you’?” Armstrong said.
You’re seeing types of incomes that should do to either get themselves
your clients with.” “You’re also going to see lenders look
we’ve never seen before.” Lenders
ready to get into the market, if it’s first- at their policies.” The fact that most
Armstrong agreed that, despite the are increasingly comfortable with
time homebuyers, or get themselves lenders are continuing to look to the
rocky recent market, he had seen cause those types of income declarations,
ready to make sure their next mortgage future and strengthen their sales teams
for positivity of late – not least the Armstrong said, with the pandemic renewal or purchase gets into the long-
upward movement in the number of having heralded a sea change in term financial strategy that also fits in is a sign that better times are ahead for
Ontario transactions in recent weeks. perceptions of the gig economy and with what the economics are going to Canada’s mortgage market, he added.
It’s also important to avoid comparing different forms of income. look like in the future. An educated and “Nobody’s scaling back. Nobody’s
today’s market to the unprecedented Finally, while clients at renewal have seasoned mortgage advisor, he said, prepping for a downward market,”
boom that emerged at the height of the always been a priority for lenders, right now, is in a better position than he said. “Lenders are investing in the
COVID-19 pandemic, Armstrong said, they’re being provided particular ever to show their value to a mortgage future. They’re investing in their sales
with present activity trending more attention in the current market, consumer.” teams. You don’t invest in sales teams
closely to normal times. “I … like to according to Armstrong, because of the if you don’t think there are going to be
take out 2020 to 2022 in the analysis, fact that they’re having to contend with Additionally, the onset of COVID-19 sales. “Lenders are investing in their
because they’re such an atypical much higher interest rates than when in early 2020 and the uncertainty that technology. They’re investing in their
[occurrence],” he said. “If you start they first took out their mortgages. came with it, coupled with the threat of processes … I think you’re going to
looking at 2018 and 2019, where we increasing capital gains tax rates under see a good market in 2024.” Larson
thought 2020 was going to be – we’re “For a lot of alternative lenders, it was a new presidential administration, agreed that nobody in the industry
on that trajectory now. one-to-three-year terms [during the brought a wave of incremental private was ‘battening down the hatches and
pandemic],” he said. “So, we’re now sellers to the table. While we saw a preparing for a long winter,’ indicating
I’m optimistic. I’m pretty comfortable seeing those clients coming up [and] brief pause in activity from some of the that the long-term prospects of the
with how the market is going to turn getting an earlier glimpse of some of more active acquirers in early 2020 due mortgage market remained rosy.
out. Canadians are resilient, and you the changes, and we’re able to try to to the COVID-19 pandemic, activity Indeed, weathering the current storm
never just see a market drop. You see it find solutions to help them manage picked up through the end of the year and emerging on the other side will
come back up, and same thing – when their new cashflow dynamic. “The rates from both strategic and private equity make the industry even stronger for
you see a market go up, you see it aren’t changing. They are what they players. With the presidential election the experience when the market heats
come back down. And it all balances are today and they’re not coming back uncertainty behind us, we expect back up again, he said. “As we come
out in the end.”
down by four percent, five percent, a continued focus on potential tax out of this, I think we’re going to see a
What lenders have been focusing on six percent in the next twelve months. increases and availability of attractive stronger overall mortgage industry than
The present market has seen lenders So, it’s, ‘How do we help Canadians debt financing to drive robust M&A what we had before,” he said. “We’re
intensify their focus in three key areas, evolve through their next [stages] of activity and sustained valuations going to see more competence, more
according to Armstrong: First, their financial lifecycle’?” through 2021. professionalism, more knowledge …
processes, including how they can Broker priorities in the current market Looking ahead and I think we’re overall going to be
originate loans, establish partnerships, On the broker side, Larson said the Armstrong said lenders are likely to doing the public a lot better service
and further their use of technology. current struggles faced by borrowers get in contact much more with their than what we were able to do before,
Their second priority has been when everything was easy.”
highlighted the value of the expertise broker partners in the coming months,