Trends apparent at the beginning of this year merit a "cautious optimism" among mortgage brokers, says leading figure
Hot on the heels of a volatile 2023, Dalia Barsoum of Streetwise Mortgages is anticipating this new year to be characterized by renewed optimism and market robustness.
In a new interview with CMPTV, Barsoum said that she entered 2024 with a “cautious optimism” because “there is a clear signal from the market, expecting that the Bank of Canada will cut rates this year.”
“[The cuts] are really close,” she said. “That is hopeful, because what happened last year when the Bank of Canada signalled pausing, we’ve seen a flood of activity stem from it. Once the rates start to go down, we’re going to see buyers come back to the market with regained confidence.”
While Barsoum is taking a careful approach to when those rate cuts will begin, she said that the market should anticipate the lingering impact of sticky inflation – which is why in the interim, brokers should take the opportunity to get on top of their pending items, instead of just waiting for rates to begin moving.
“At the end of the day, if we sit here and wait for things to improve, we’re just going to drift and get lost,” Barsoum said.
“We observe the environment, we need to be aware of what’s coming, but we should always do our part as well, doing what we need to do for our clients all the time — which is to keep on educating them, keep on connecting with them, keep on reaching out to them.”
In Canada's current mortgage market downturn, adaptability and innovation are crucial for success, according to Dalia Barsoum, founder and broker at Streetwise Mortgages.
— Canadian Mortgage Professional Magazine (@CMPmagazine) September 28, 2023
Read more: https://t.co/h3674InybH#mortgageindustry #mortgagebroker #brokersuccess #businessgrowth
Barsoum encouraged brokers to take advantage of the current (relative) market steadiness to take stock of how their business is working.
“Take the time to optimize [your] operations, and think of new ways of doing business,” she said. “There is no waiting; there is always something to be done while the environment changes. We need to always… keep positioning ourselves to tap into the opportunities to come.”
This particularly applies to the wave of mortgage renewals projected to begin this year.
“You work to educate them regarding the best options available to them, especially now because the picture is a bit misleading,” she said. “We are at the peak of the rate cycle, and there is an expectation that rates will come down, so do you go variable? Do you lock into a one-year [term]? Do you take a long-term [product]?”
Barsoum stressed that mortgage brokers are best placed to provide reliable, up-to-date information on this front.
“What we’ve been doing is we’ve been keeping clients appraised of how this rate cycle is working and what to actually watch out for – and not to get impulsive about signing renewal letters, and to understand the implications of choosing a five-year fixed term at the peak of the cycle right now, compared to taking maybe something else that may not look as attractive right now, but will serve them best in the long term.”
