"You really want to figure out what you are to that person and what they’re willing to invest"
Choosing the alternative lender that best fits the requirements of the file requires both trust and knowledge on the broker’s part, according to Jared Stanley of Neighbourhood Holdings.
In an interview with Canadian Mortgage Professional, Stanley said that before everything else, the broker and the lender should be clear if the deal will lead to a true partnership, or if it’s just another transaction.
“You really want to figure out what you are to that person and what they’re willing to invest – and I’m not referring to money,” Stanley said. “I’m referring to the most valuable commodity, time. Long-term relationships are built on that mutual investment, and transactional relationships are short-term.
“When you’re choosing your alt-lender, ask whether they’re trying to build a long-term partnership, because there are going to be ups and downs and changes in the market. There are going to be hard deals and easy deals, and you really want someone to be by your side to help you get through those deals.”
Read more: Honest, consistent, and proactive feedback from brokers key to success
With the recent inauguration of the first national association committed to assisting Canada’s alternative mortgage lenders, the Canadian Alternative Mortgage Lenders Association said that it is hoping to bridge such gaps.
“Offering an opportunity to learn more about how the organization is changing Canada’s perspective on alternative lending,” the group said. “CAMLA’s purpose is to be the voice and resource platform for this industry by offering education, resources, knowledge, and connection.”
Such resources will be vital for broker and lender alike.
“Brokers can have a really tough time setting expectations with customers. It’s exhausting, and I applaud them for it,” Stanley said. “Brokers help customers with their finances, but I feel like they’re sometimes part counsellor too.”
