Plus: Popular summit returns to Toronto in June
British Columbia’s spring housing market is well underway – and while high prices continue to weigh down on activity in some of the larger urban centres, purchase volume remains strong in smaller markets, according to a leading mortgage broker based in the province.
Christine Buemann (pictured), partner and broker at The Collective Mortgage Group, told Canadian Mortgage Professional that the beginning of April had been marked by ample opportunity outside Vancouver, even if purchasing a property in the province’s most populous city remained out of reach for many buyers.
“I think affordability is what’s hindering growth in most of the bigger centres, but in a smaller community where you can still buy a home for $500,000 easily, we’re still seeing a lot of purchase activity which has been really great,” she said.
“At our brokerage, we do mortgages all over BC and definitely there are some slowdowns in the bigger centres of Vancouver and the surrounding area seems to be quite stagnant – there’s a little discomfort.”
British Columbia Real Estate Association (BCREA) chief economist Brendon Ogmundson suggested that March’s sales figures for the province, which ticked down by 9.5% year over year, showed would-be buyers were holding out hope for a Bank of Canada rate cut later in the year before making their move.
Still, smaller markets are continuing to thrive – and lenders are also working with brokers and borrowers to find solutions, Buemann noted, that work for all parties.
“I think that Canadians have done a really great job at proving their resilience. Lenders have a confidence that their borrowers will pay, and they’re starting to find… more common-sense-based solutions to analyze ability to pay,” she said.
“The standard risk metrics for analyzing ability to pay, I think, are evolving and we’re progressing to a more common-sense-based approach.”
Are Canadians getting used to the current interest rate environment?
While it’s no secret that interest rates have spiked since the rock-bottom lows of the COVID-19 pandemic, borrowers are beginning to adjust to the “new normal” on rates, Buemann suggested.
Renewals are presenting more of a challenge – but not an insurmountable one. “First-time buyers are probably the ones who feel the safest in my experience right now, because this is all they’ve known – the higher-rate environment for this shorter window of time,” she said. “Second-time buyers are feeling discomfort in the higher payments, higher rate.
“But also, they can still afford it. They were stress tested. It’s more a feeling of wanting a lower rate. But I suggest to my clients something: they got a mortgage on sale. They went to the liquidation sale, and they got this really amazing-priced mortgage. It wasn’t standard pricing. It wasn’t ever going to be this consistent, mainstream price.”
Setting expectations around what the new rate will be upon renewal is essential, according to Buemann – as well as ensuring borrowers have as comprehensive a slate of options as possible for their next decision.
“I try and help reframe their perspective: ‘Wow, you got a really great rate when it was available. That’s awesome that you were able to get that. And also: here’s what is now available,’” she said.
Women in Mortgage Summit set to return in June
Buemann is set to bring her insights to the upcoming Women in Mortgage Summit, returning on June 5 at the Carlu Toronto.
The all-day networking and educational conference will see the women of Canada’s mortgage industry gather to share perspectives and strategies for forging a path ahead and elevating their careers to the next level.
Early birds catch the savings! 💸 Don't miss out on discounted rates for Women In Mortgage Summit Canada 2024!
— Canadian Mortgage Professional Magazine (@CMPmagazine) April 22, 2024
Early Bird Rates are available until May 10, 2024 only.
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Buemann will feature as a panelist alongside Ruvani Henriques (Glasslake Funding), Elena Robinson (first National Financial), and Lauren van den Berg (Mortgage Professionals Canada) on a discussion centred around empowering women in the mortgage space.
Moderated by Natasha Bridgmohan of The Bridg Group of Companies, the conversation will explore the skills, expertise, and mindset needed to lead positive and inclusive change in the mortgage space – answering questions such as how to connect as a community to advance, how to navigate imposter syndrome, and how unconscious bias continues to limit the elevation of women into senior leadership roles.
Registration for the event is still open – so be sure to sign up for what’s sure to be an educational and networking opportunity you won’t want to miss.
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