It's the mortgage professional's responsibility to be a reliable bastion of knowledge for their clients, says Ontario-based agent
For Christelle Mwamba of Mortgage Scout, the past year has offered invaluable lessons when it comes to client-broker interactions.
“In 2023, my approach actually evolved as I placed a stronger emphasis on educating both my referral partners and clients about just navigating the present market dynamic,” Mwamba said in a recent episode of CMP Talk. “My focus was more on providing insight into alternative mortgage solutions that could be better aligned with the client’s financial goals.”
Mwamba highlighted some of the learning that she encountered through this more education-oriented approach.
“My client base consisted mostly of borrowers who were seeking advice on mortgage renewal and refinancing,” she said.
“With the growing number of mortgages reaching maturity, the focus of the discussions centred around understanding how the current rate environment will impact their monthly payments in comparison to the rates that they were offered in 2018 and 2019.”
Christelle Mwamba of Mortgage Scout noted that many clients are exploring options to ensure affordability, considering refinancing with different lenders to save money or improve cash flow.
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 18, 2023
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Mwamba said that mortgage professionals should especially prepare for the upcoming wave of renewals and the central bank’s subsequent policy decisions.
“I think we will see changes in the market in 2024,” she said. “In a recent interview with the governor of the Bank of Canada, he hinted that the era of interest rate hikes might be coming to an end. Also, excess demand has gone down, which has impacted inflation – suggesting a positive trajectory.”
While the timing of the shift is impossible to predict, Mwamba said that some noteworthy trends are already becoming apparent.
“Fixed rates are already showing a decline, driven by the current dynamic in the bond market,” she said. “Typically, changes in the bond yield influence fixed-rate mortgage pricing. If this trend continues, with an ongoing rally and pressure on the bond yield, we could see potential further improvements in fixed-rate mortgage pricing.”
In such a rapidly evolving context, Mwamba stressed that it’s the mortgage professional’s responsibility to become the reliable bastion of knowledge for their clients.
“My motto for 2024, for agents and for myself, is, ‘Keep it H.O.T.: H, for be helpful by guiding clients and planning ahead, especially with the upcoming renewals. O, for it will open doors for new opportunities and referrals… And T, for trust the market. The market will turn around, what goes up, must come down – and we’re on the brink of a downward slope, so stay optimistic.”
Listen now: Looking back on 2023 – and ahead to next year
