What’s the key to lending in current climate?

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“That includes extra due diligence on appraisals to make sure that the values are reasonable, accurate and relevant,” he said. “When I say relevant: really watch the comparables that are used, the date of those comparables. The market is changing on a month-to-month basis.”

With fluctuations in the market and economic headwinds continuing to gather, Decina said the company isn’t just waiting for monthly data to emerge – it’s also analyzing and reviewing figures on a more regular basis.

“Obviously, we’re focused in the GTA [Greater Toronto Area]. We’re very close to weekly data that’s coming out in all the areas that we lead within the GTA, and so you want to make sure that your underwriting team is fully updated,” he said.

“And if you do that, you know and work closely with the mortgage brokers that we deal with and the appraisers and solicitors that we deal with, it’s still a very, very good lending environment.”

Continued uncertainty over the BoC’s path on interest rates

That focus on regular data is especially important, Decina added, with the economic outlook remaining cloudy despite the Bank of Canada having hit pause on interest rate hikes in its last two announcements.

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