Digital signing cuts closing time in half, driving growth for brokers as renewal boom kicks off
This article was produced in partnership with FCT.
According to RBC Capital Markets’ Global Insight 2024 Outlook, around 60% of outstanding mortgages at Canada’s major banks will come due between 2024 and 2026. As Canada enters the largest renewal wave that most brokers have seen in their careers, amid record levels of unsecured debt across the country, those looking to drive growth into 2025 and beyond are zeroing in on refinances.
With an eye to supporting stakeholders during this period, FCT recently rolled out product enhancements that not only further its overall mission to create a better, faster, and more digital experience for brokers, lenders and borrowers, but that will help brokers capitalize on the opportunity.
“We’re committed to our customers, to investing heavily in new technology solutions, and to continuous improvement - our work is never done,” said Kate Wybrow (pictured), vice president, lender solutions. “We work within the industry and with our customers to create a more streamlined and interconnected transaction experience.”
Close a deal in half the time with Virtual Close
One of the stand-out enhancements is Virtual Close, where closing a mortgage in half the time provides a competitive advantage for brokers. Allowing virtual signing in jurisdictions that don’t require wet ink, the technology is available for transfers nationwide, excluding Quebec, and to collateral switch and refinance transactions in Ontario.
The change aligns with consumer expectations: most borrowers have adapted to a virtual experience in many other facets of their finances, Wybrow noted. Harnessing the benefits of a two-decade career at FCT, she has first-hand experience with changing consumer demands and argues that mortgages should be no different when it comes to creating a virtual experience.
The key to innovation is listening closely to the broad spectrum of financial institutions and mortgage brokers FCT partners with, hearing from the source what works, what doesn’t, and what they want to see next. That approach is shared across the team at FCT, where longstanding relationships are leveraged to help guide new developments. Because of FCT’s status as an industry pioneer, “we’ve built a lot of loyalty with our customers that enables us to try new things; they’re willing to work with us,” Wybrow said.
Virtual Close has been a priority for a long time, but any product or solution must check a laundry list of critical boxes such as information security requirements, technology hurdles, and other obstacles to lender approval. Long story short, there’s no magic wand to create something like Virtual Close.
“We put a lot of thought and effort into how this is built and how it’s delivered,” Wybrow explained, adding that FCT aims to build solutions with a variety of customers in mind. “We are working one by one with our financial institution customers to seek approval to roll it out. Virtual Close is tried, tested, and true - and will expand from here.”
People want faster, more digital solutions in a secure way and Virtual Close meets those functions, and the proof is in the feedback. End users’ opinions are already streaming in, with rave reviews. For Tara Borle of Mortgage Architects in Alberta, the process with digital signing has been nothing but positive.
“My clients love it, I love it, and it helps get our deals done way smoother,” Borle said. “It’s made our FCT process much faster and easier to manage.”
Enhancements align with FCT's overarching mission
In FCT’s view, the real estate transaction, as it exists today, is prime for innovation: the overarching mission is to create a more seamless experience for all parties involved. While Virtual Close hits a certain segment of transactions, it’s but one component in FCT’s broader journey towards an interconnected digital ecosystem
“We’ve taken a deep dive into how we facilitate these deals end-to-end for brokers, pulled apart the process in an effort to reduce friction points and redundancies to make sure we’re just closing deals faster,” Wybrow explained. “FCT is in constant evolution: we maintain a high level of investment to create a better experience and we’re never done with improvement. Keep an eye on what’s next for us as we head into 2025.”
