The perception that now’s just not the time to buy – regardless of low interest rates – may be the biggest hurdle facing brokers this year, suggests new research.
“These metrics paint a picture of a nervous Canadian public who does not know what to expect from the economy or the housing markets,” reads last month’s MortgageInsights from CAAMP and based on its Fall 2012 Consumer and Industry Surveys."For mortgage professionals, it is important to understand this dynamic as you engage with your customers."
That's likely to challenge some brokers.
While the survey suggests 88 per cent of industry insiders endorse the idea that "now is a good time to buy," only 61 per cent of consumers do. That last figure actually representsa decline from the 64 per cent who voiced that sentiment in 2011, a year marked by even more economic uncertainty.
The waning public confidence comes despite rock-bottom interest rates and the secure financial footing of many consumers.
Assuaging client concerns and coaking fencesitters into the market has increasingly preoccupied mortgage professionals as they see preapprovals languish and expire.
That isn't likely to change as consumers digest what if any impact new mortgage rules and lending guidelines have on their own eligibilty.
But even the very eligible may represent a tough sell.
"Even though their individual financial situations may be strong, it is likely that given their economic concerns, your clients are also looking to you to provide them with reassurance that the mortgage option you are recommending to them will fit all of their needs," concludes the report, "and will remain a good fit for five years (or the term of the mortgage),"