|Company:||Dreyer Group Mortgages|
|Position:||Junior Underwriter/Admin/Client Care Position|
|Location:||South Surrey, British Columbia (Morgan Creek Office)|
Mortgage analysts look forward to this day each and every year — that is, the date CAAMP releases its annual mortgage market research.
This year’s edition has a slew of new mortgage findings. We’ve highlighted the items that are eye-catching. (Extra-notable data points are in blue. This author’s comments are in italics.)
After spending six years as the Chief Operating Officer (COO) of Canada’s largest independent mortgage brokerage, James Laird set up his own mortgage company, CanWise Financial, earlier this fall.
Laird’s success has in large part been due to a mastery of leveraging the Internet leads. In the Q&A that follows, he provides some important insights into setting up a broker business for online business.
A core selling proposition of mortgage brokers is choice. The more lenders that a broker works with, the greater their ability to source a mortgage tailored to the client.
But some lenders (e.g., CIBC, BMO, ING, HSBC, Macquarie) have left the broker channel, reducing choices for broker customers. Those exits have typically been blamed on insufficient profitability, and one reason for that is inadequate cross selling.
In other words, mortgage brokers don’t push a lender’s other products as well as a lender rep would. And that is exactly why Vancouver-based Coast Capital’s new broker model is intriguing.
Today’s generation of first-time homebuyers are increasingly using the Internet to their advantage when researching mortgages. CMHC’s recently released 2014 First-Time Homebuyers Survey backs that up.
The report found that 84% of first-time buyers went online to gather information about mortgage options and features. The figure was 76% for repeat mortgage consumers.
First-timers were also more active online compared to other mortgage shoppers.
On Thursday, the Office of the Superintendent of Financial Institutions (OSFI) announced its complete B-21 guidelines for underwriting insured mortgages. But it didn’t stop there. The banking regulator also tweaked some of its B-20 guidelines, rules that shook the mortgage market when they were initially released in summer 2012.
This time around, OSFI’s actions will have far less impact on the housing market.
Following our October 27 story, a few readers questioned how low Canadian bond yields (and hence, fixed mortgage rates) can really go. Despite that story’s curt title “The Bottom is Zero,” the bottom in bond yields is actually (theoretically) below zero.
Negative bond rates have numerous precedents. Government yields from countries like Japan, Switzerland, Germany, Sweden and even the U.S. have all been sub-zero. When yields dip below zero, it means giant fixed-income investors are paying for a safe place to park their billions.