What should agents and brokers keep in mind about Canada’s MIC space?

Houses for sale in Ottawa

Despite spiking interest rates and an uncertain lending environment, the overall risk levels of the sector remained low in the first quarter of last year, CMHC said, although it flagged certain risk indicators including a climbing debt-to-capital ratio.

How brokers can tap into the potential of the MIC space

For mortgage agents and brokers dealing with MICs in the year ahead, cultivating strong relationships and fostering clear communication with those entities should be as central a focus as ever, according to a leading consultant and former broker in the space.

Benjamin Sammut (pictured top) told Canadian Mortgage Professional that working on building those connections could give brokers a vital edge in their interactions with MICs.

“It’s one thing to understand the lending criteria of a MIC, but it’s a very different thing to have a relationship with a MIC,” he said. “And I would say investing in your relationships with MICs is going to be a huge thing this year because MICs are what the bank used to be known for back in the day.

“You could call up your underwriter, you could plead your case, and you could have some common-sense underwriting performed. I think that’s a bit of a lost art. We’ve seen so much regulation since 2017, so much tightening and restriction, that it’s just not really commonplace to do that anymore.”

Source link
Ottawa New Listings

Leave a Reply

Your email address will not be published. Required fields are marked *