Building your business on trust

This article was provided by Home Trust

As the mortgage industry in Canada continues to evolve amid an unpredictable and sometimes rocky economy, anxious borrowers are turning to brokers more and more to help them navigate today's complex landscape. In fact, according to Mortgage Professionals Canada's (MPC) year-end report for 2023, one in five borrowers are very likely to work with a broker.

And don’t be surprised to see this statistic grow even higher.

The same study found almost half of Canadian residential mortgage holders expect to renew their mortgage in 2024 and 2025, making it increasingly imperative that brokers continue to offer a high level of service to borrowers. However, it also presents a great opportunity for brokers to stand out from the pack by strengthening their reputation for customer service.

“In these uncertain times, consumers are looking for help, guidance and peace of mind as much as they are looking for solutions,’ says Pierre Martin, Vice President of Residential Lending at Home Trust.

"A great experience between broker and borrower starts with honesty regarding financial advice – not fake promises or beating around the bush with half-truths. A trustworthy broker is frank about their clients' options without promising anything outside the realm of possibilities."

A good way for brokers to demonstrate a commitment to service quality is by making trust the cornerstone of client relationships. According to an MPC study, consumer trust is a vital driver in deciding which broker to work with, which means brokers looking to grow and strengthen their portfolio should look to establish a reputation as trustworthy professionals.

The role of trust in broker-client relationships

"A broker should be able to help streamline what is impacting the client and outline the best solutions moving forward," says Martin. "This entails being patient and honest with questions and listening to borrowers without making them feel pressured."

Martin also outlines another advantage of having a solid reputation as a trustworthy broker: new opportunities to grow your book, particularly in the alternative business servicing borrowers who are precluded from getting a mortgage from a traditional lender. These include borrowers without a fixed income, such as business owners, clients with bruised credit and newcomers who have yet to establish a credit history in Canada.

According to Canada Mortgage and Housing Corporation’s (CMHC’s) residential mortgage industry report last fall, lenders in the alternative space “experienced the least significant slowdown among mortgage lenders and increased their market share” in 2023, making it a market that should not be overlooked.

"It's a large market with applications that range from straightforward to complex with a common theme: borrowers likely do not qualify for a traditional lender,” says Martin. “A trusted broker can help borrowers in these segments navigate the alternative landscape to help them achieve their homeownership goals.”

Working with a lender you can trust

In MPC's study, brokers highlighted reliability, responsiveness and trustworthiness as critical characteristics when recommending an alternative lender.

"A lender shows trust by being willing to work with brokers to help them understand their product, keeping communication lines open and following through on commitments," he says. "This means always being ready to answer the phone to discuss a deal."

Additionally, Martin emphasizes the importance of a lender "keeping their commitments and following through on their word.”

Solutions you can trust

As a pioneer in the alternative mortgage space with over 35 years of experience, Home Trust has a well-established reputation as a reliable partner for brokers. A recent survey of mortgage brokers by Bond Brand Loyalty lauded the lender's reputation for keeping promises and commitments.

"Our long history gives us a deeper, more nuanced understanding of broker needs," says Martin. "That reliability is essential for brokers because they can have confidence when they come to us with a deal. We understand the complexities of each mortgage application, and our commonsense approach ensures that brokers and their clients are always supported."

This commonsense approach means working with brokers to understand the story behind the file and offer solutions they can trust.

"Whether it's a self-employed business owner or someone rebuilding their credit, we're here with the mortgage solutions to meet their needs," he says. "This level of understanding is what makes Home Trust a lender brokers can count on."

Build your business with Home Trust

As the mortgage market evolves, brokers who build their business on trust will find that their client relationships grow stronger. By partnering with a reliable and trustworthy lender like Home Trust, brokers can deliver trusted solutions for their clients and position themselves for long-term success.

“At Home Trust, we’ve always known what it means to look at the bigger picture and aim to understand the story behind every mortgage application,” says Martin. “This allows us to offer brokers a consistent level of reasonability, reliability and availability they can trust. After all, trust is in our name.”

To learn more about how Home Trust can help you grow in the alternative space, speak to your business development manager or visit this link.