Mortgage Broker

8 | winter 2018 cmba-achc.ca CMB MAGAZINE editorialsummary New challenges mean new opportunities for mortgage brokers Making the Best of the Stress Test Kim mcKenney President, CMBA-Ontario; President / Broker, DLC The Mortgage Source e changes to the mortgage-lending rules that have been imposed by the government over the past couple of years – particularly the most recent changes – have created a great opportunity for mortgage brokers. Canadian homeowners are going to rely on mortgage brokers now more than ever to arrange their financing, and those in the industry who continue to learn will benefit. e race to the bottom for interest rates is coming to an end. Our clients are now going to need help navigating the different lending structures and qualification guidelines. Product and service will become the key components of a mortgage negotiation, along with long-term planning. In Ontario, our advantage will be access to alternative lenders such as credit unions, MICs and private lenders, all of whom are not federally regulated. ese alternative lenders typically lend regionally and therefore have policies that reflect the local market. As a result, a mortgage broker who has relationships with these lenders will have greater success in communities that are not covered by the typical financial institutions. Alternative lenders also offer products that vary and are not investor- driven; therefore, mortgage brokers are able to help clients who cannot work with a bank. In Ottawa, the economic outlook is very good. e city will enjoy a strong housing market in 2018, which translates into great opportunity to grow. e mix of economic drivers and high immigration rates means that the needs of mortgage applicants are varied. ese factors will provide the opportunity for growth in the local mortgage industry. Troy resvicK President, CMBA-BC; Managing Partner/Senior Mortgage Advisor, Invis – Resvick & Associates, Mortgage Advisors 2018 has arrived and our industry hasn't ground to a halt, despite the actions of the federal government and OSFI. As we move into this new year, we see many opportunities developing for mortgage brokers to demonstrate their professionalism and financial expertise to their clients, and referral and lender partners. By ensuring we are educated and up-to-date on all matters relating to the recent B-20 changes, and having done the leg work and research into which lenders and insurers are able to best meet the needs of the markets that we work and serve, mortgage brokers will continue to show the mortgage consumers of British Columbia why "their best mortgage advice comes from a mortgage broker." We are in an ever-changing and evolving business, one that requires a constant understanding and awareness of the shiing landscape, moving of goal posts and changing of the status quo, to which not only mortgage brokers, but also lenders and insurers, must now adhere. sharon Davis Mortgage Planner, DLC – BlueTree Mortgages WEST e introduction of the stress test, as hindering as it may be for some borrowers, is really meant to save people from themselves. In today's local environment (especially GVA and GTA), it's not only the mortgage that is large, looming and daunting – so too is the general cost of living, experiencing life (dancing, going to hockey games, eating out) and the price point that people are having to deal with to realize home ownership. is rule change, like all the others we've seen over the years, shall also become the "new norm" and life will move on. I believe it's evermore important for consumers to engage with independent mortgage planners to get assistance in finding the best fit for them. Best fit can only be sourced when there is more than one option – and that's exactly what we brokers provide. New stress-testiNg rules on conventional bank mortgages have created what some would consider to be a chasm between borrowers looking for mortgage funds and lenders unable to deliver them to those borrowers who do not pass the stress test. However, as we all know, challenges do create opportunities. Here, four prominent members of the CMBA weigh in on turning stress into success.

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