Winner at last year's Canadian Mortgage Awards talks current trends
While a drop in interest rates is expected to present a boost to the Canadian commercial mortgage market this year, borrowers should realize rates are unlikely to dip dramatically in the coming months, according to a top broker in the space.
Peter Quinn (pictured top), director at Multi-Prêts Hypothèques in Quebec, told Canadian Mortgage Professional that a mild decline in rates was likely to be one of the themes of the year for the commercial space, in addition to the much-discussed wave of renewals occurring in 2024 and 2025.
“Many clients are hoping for a significant drop in fixed interest rates which, in my opinion, will not happen,” he said. “The economic indicators are still very strong, so I don’t see much of a decrease before 2025.
“In addition, more than 60% of the mortgage loans in Quebec’s multi-unit and commercial real estate portfolio will mature in 2024/25. Several clients will renew their mortgage loan and will experience a significant increase which most certainly will cause a financial deficit for several buildings.”
That backdrop could result in more sales and a possible reduction in prices, Quinn said, as well as clients who have refinanced their properties in the past gearing up for a new market of opportunities.
“It’s important to be patient as we return to a volatile market,” he said. “For these reasons, and considering the volatility of this market and the potential for inflation to rise again, I don’t believe that interest rates will decrease significantly in the coming years.”
What should commercial mortgage brokers focus on at present?
Top of mind for commercial brokers in the current market, according to Quinn, should be attentiveness and efficiency when dealing with clients – as well as remaining innovative in mortgage brokerage operations and staying attuned to market fluctuations and trends.
Those were all key considerations for Quinn throughout the market turbulence of 2022 and 2023, with his business’s strong performance amidst a stormy economy helping him clinch the Canadian Mortgage Award last year for Broker of the Year – Commercial.
The achievement marked the fulfilment of a goal Quinn had established since beginning his career in the commercial space in 2015. “I tried for the first time in 2020 to get this prestigious award, but at that time I was not ready and I did not win,” he said.
“I therefore continued my growth efforts and won the prize in 2023. [It] allowed me to be recognized among my peers but above all, in the eyes of my clients and my business partners, which added a lot of credibility to my business.”
That momentum has helped carry Quinn into 2024, with business remaining robust in spite of the unpredictable market conditions. The broker told CMP his book had witnessed “significant growth” in the year to date, with a hoped-for increase of at least 35% based on files being processed.
“In addition, we’re in the process of opening the Ontario market, and I believe that our progress will be increasingly important in this new province,” he said. “We’re very confident of doubling our business volume very quickly by 2026.”
Register now for the 2024 Canadian Mortgage Awards
This year’s Canadian Mortgage Awards are fast approaching, with the eagerly anticipated gala dinner and awards ceremony to take place on May 2 at Toronto’s Congress Centre.
Excellence Awardees have recently been revealed for the most prestigious date in the mortgage industry calendar, with winners to be named on the night. Mortgage professionals from across the country are set to convene for a memorable evening to celebrate the best and brightest the industry has to offer – and registration is still open for what’s set to be an unmissable event in Toronto.
Check out the full list of Excellence Awardees for the 2024 Canadian Mortgage Awards and join us in celebrating their outstanding achievements!
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 11, 2024
See the full list here: https://t.co/f9zAZvlUUr#MortgageAwardsCA #MortgageIndustry #MortgageAwards pic.twitter.com/EUD0v5ENC2
Simply follow the link above to register – with all guest details due on or before April 11, 2024 at 5pm EST.
Renowned Etalk anchor Tyrone Edwards is set to preside over proceedings, which will see a cocktail reception followed by the awards ceremony and dinner banquet, and a post-awards celebration fronted by Ascension Groove Band.
Be sure to register now for what’s gearing up to be an unforgettable night for Canada’s mortgage industry.
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