Brokers, on the other hand, can listen to a client’s needs and recommend many different options, or one that’s a better fit than the solution provided by the bank. For Zlatkin, offering that individualized advice is going to be a top focus in the broker space in 2024.
The likelihood of interest rate drops this year is another factor that could see borrowers return to the market in greater numbers than the past 12 months.
“I think this is going to be the year when listening and tailoring your approach to the client is going to win over everything else, every single time,” Zlatkin said. “Certainly, this year is also going to be the year when potentially we’re going to start seeing rates go down and as long as the bond yield continues down, we’re going to see fixed rates following that.
“So you need to win on service on quality, and you need to win on tailoring your solution to your client. And it doesn’t necessarily mean just, ‘Let’s get you a three-year fixed rate.’ It might mean, ‘You want to buy this rental property? Let’s refinance your existing property. Let’s take you to 30 years and get to a lower payment. Let’s make this more manageable for you. And then let’s free up some extra cash by doing X, Y, Z,’ and giving people solutions that meet their needs.”
Could refinancing see an upswing in the year ahead?
On the prospect of an uptick in refinances for 2024, Zlatkin said it depends largely on rates and how quickly they come down – but added that refinancing will be an option for some Canadians, particularly those who have consolidated debt.