“Not every [borrower’s] situation is the same,” she said. “Understanding what their current circumstances are, what their goals are, and what they’re trying to accomplish [is important], whether it’s the homebuying process, whether it’s the consolidation of that process, whatever that looks like. Really understand what their risk tolerance is.”
Agents and brokers should also query whether it makes sense to put their clients in a long-term mortgage, Babir said, particularly with shorter-term options of two or three years growing in popularity as borrowers weigh up what type of economic environment awaits in the short term.
Canadian housing markets are showing signs of becoming more balanced, according to a report by RBC’s assistant chief economist, Robert Hogue.
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— Canadian Mortgage Professional Magazine (@CMPmagazine) September 12, 2023
The importance of a relationship-driven approach
While a transaction-driven approach may have dominated at the height of the COVID-19 pandemic, when volume was rocketing and purchase activity shot through the roof, Babir urged agents and brokers to prioritize a more relationship-focused outlook in the current climate.
“Building relationships is more important than ever right now to sustain your business, but also to nurture your existing book of business – whether it’s clients, whether it’s referral partners,” she said, “really going above and beyond and nurturing relationships with clientele and your business partners is going to be the way to scale and at least sustain your business for the time being.”
The mortgage industry is ultimately a people business, Babir added, with a personal approach usually reaping rewards. “I would say [prioritize] the service first, and then the sale will follow,” she said. “A sale without service is not going to allow you to build a sustainable business model.