Lessons learned during a cooling market

The real estate and mortgage market has been softening in many parts of the country and many experts are forecasting it to continue softening in 2019.

Smart mortgage brokers know how to position themselves in both hot and cool markets. So even when the market isn’t as hot as it used to be, there are opportunities for you to get the most out of the current market and embrace new technology and sales methods to expand your client base and grow your business.

Below are some reminders when the market starts to cool and ways to position yourself for growth.

Don’t Panic, It’s Not Always As Bad As It Seems

The soft market that you may find yourself in is not all bad. Overall, the mortgage market in Canada has come in for a soft landing – rather than the crash landing many were worried about. In spite of the Bank of Canada’s rate hikes and Millennials struggling to scrape together enough cash for their down payments, many experts agree that it could’ve been worse.

Your Advice Is Even More Valuable

Although stress tests make it harder to qualify, down payments are higher (or lower if your client doesn’t like high payments), and rates are trending upwards – there are still many Canadians who still want a home to call their own. Whether it’s buying their first home or trying to stay in their current one, clients are struggling to make sense of this confusing market. This is where you can make a difference in their lives.

Focus on finding solutions for Canadians who feel stuck or confused about the market. Your expertise can help them realize how they can buy their first home, or even stay in their home.

The tips below outline ways you can offer this to your customers.

Tip #1 | Make Sure Your Voice Is Heard Online

More and more of your clients are doing a lot of research online prior to booking their first appointment with you. By establishing a strong online presence that positions you as a knowledgeable resource for the mortgage market, you will build trust from potential clients long before they contact you and increase the likelihood that they will make an appointment with you.

Technology is great in helping reduce costs. Things like DocuSign, Adobe Acrobat, and online applications can make business more efficient and help you connect with more clients.

Tip #2 | Positivity = Opportunities. It’s All About Reframing!

The trick to being able to spot opportunity is to stay positive. By keeping this frame of mind you’ll have the ability to notice trends in the market. Keep in mind that you’ve been in a soft market before. Don’t forget, rates today are still lower than they were in the ‘90s and early ‘00s.

Tip #3 | Your Product Offerings Will Help You Stand Out

Remember that even though the market isn’t hot, you still have many products available to you that can make a difference in not only your client’s lives but to your bottom line as well. Make sure you continuously seek out ways to match all your clients with products you offer.

Tip #4 | Tap into New Markets

Now this point is really business 101: go where the number are. Well let’s asses: Canada’s fastest-growing demographic are Canadians aged 55+. As they approach / begin their retirement, they are trying to solve a complex puzzle: how can I live a comfortable retirement for 20-30 years?

Experienced brokers will know that markets never stay hot forever, and the good news is they never stay cool forever either. What’s important is what you can do in either type of market to help your business grow.

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SOURCES:

https://www.bnnbloomberg.ca/canada-s-housing-market-shows-increasing-signs-of-soft-landing-1.1169115