TD has now joined the increasing number of lenders pushing up fixed rates – a trend expected to see even seasoned brokers return to chasing down leads but also to deepening their value-add beyond basis points.
“You have to get back to basics,” Rob Campbell of Verico the Mortgage Wellness Group told MortgageBrokerNews.ca. “Get your face out in the community by helping out at events; get out and let people know who you are.”
And if all else fails, look to value add-ons to set you apart.
The recommendation comes on the heels of TD’s decision Thursday to join BMO and RBC in raising its five-year rate to 3.79 per cent.
The fact that monolines have also moved to hike their rates means brokers are likely to face increased competition for a dwindling number of deals. But that doesn’t mean the end of the world, says Greg Williamson of Mortgage Professionals Academy.
Brokers need to “embrace a slowing market and understand what (their) plan is going to be,” he says. “If it’s a slowing market, some realtors will have fewer leads or have struggling listings and they have to deal with that. We have special programs they can use, such as our price drop protection program.”
Williamson’s company offers programs to help brokers add value to their services. Some include how to market tough listings, how to market a home that is struggling on price, price protection and teaching clients how to renovate a home after a purchase.
He and other broker coaches are focused on finding out what the challenge is for a client and offering them a program to deal with that troublesome area.
Still, not all mortgage professionals are anticipating tough times ahead.
“I’m concerned that the high interest rates will slow the market,” Yuval Fish of True North Mortgage told MortgageBrokerNews.ca. “We’ll still be fine because we have a large client base and a great location. People will always need mortgages but (many) may hold off for lower rates.”