A new course and education certificate for specialization in the luxury home market is timely in light of a Sotheby’s International Realty Canada report that declared the sector is thriving again.
The Luxury Home Mortgage Advisor designation, offered online and in-class, will teach mortgage professionals how build networks of high net worth individuals, among whom are a slew of potential luxury homeowners.
“The course is not about specific products or lenders willing to fund multi-million dollar deals,” said Roland Mackintosh, founder and CEO of the Luxury Home Mortgage Group Ltd. “You will learn how to build a network of top-tier professionals and how to transition these professionals to endorse and recommend you to their roster of luxury homeowners.”
The course will focus on a quiet, but influential, market cohort with investable assets ranging between $1 million to $30m, and the ways in which their mortgage needs are vastly different from first-time homebuyers’ or clients with sub-600 Beacon Scores.
“Dealing with high net worth clients should not be intimidating to mortgage brokers and this course is going to be a game changer for brokers in British Columbia who are looking to grow their business,” said Sabeena Bubber, a senior mortgage professional with Xeva Mortgages.
“From learning how to attract high net worth clients to preventing your client from shopping a deal you worked so hard to get approved, this course will help us as brokers gain more market share in an untapped market.”
Last month, Sotheby’s 2018 Top Tier Fall Forecast Real Estate Report revealed that the Greater Toronto Area’s luxury market is once again buoyant. There was a 34% spike for homes priced at least $4m, and according to Sotheby’s CEO Brad Henderson, that’s because the market has absorbed shocks from government intervention.
“I don’t think it was in the doldrums as much as people thought it was,” said Henderson. “The first quarter of 2017 saw an historical number of sales in the Toronto market and that was primarily driven by the fear of missing out. When the Ontario Fair Housing Plan came into place, it chilled the market significantly, not because of the foreign buyer tax itself causing the market to pull back, but because it was a shock to buyers and sellers. When that kind of thing happens they freeze.”
Moreover, added Henderson, a significant cohort has entered its peak earning years.
“They’re likely going to spend more money on homes,” he said. “Let’s face it, prices in the city of Toronto are, more and more, in the $1m to $3m range. We expect the Toronto market will see increases in activity, and as there continues to be a shortage of inventory, there’s a very good chance of upward pressure on prices.”