Just as resolutions are set for the new year, brokers should also set goals for their businesses.
“It’s going to be more important than ever in 2019 to create a business plan, set goals and create a schedule for those goals,” said Frances Hinojosa, managing partner at Tribe Financial. “Mortgage origination, as we all know, is down, and it’s not as easy as it once was before the rule changes, so now it’s time to adapt, if you’re playing the long game. Figure out a plan, stick to that plan, and figure out how you’re going to execute that plan.”
Goal-setting is important for any broker in this new environment, but if you’re managing a team then Hinojosa says it’s imperative.
“See how your business has trended and where you can change to gain more business,” she said. “Talk to your key partners, and your lenders to discuss products that could help you business, help you in your marketplace, and help you achieve your plans and goals.”
Based on conversations she’s had, Hinojosa believes lenders will expect greater efficiencies from brokers now that the dust from B-20 has settled.
“They’ll expect brokers to be more efficient and prudent on their files upon submission. There’s more paperwork because of B-20 and the expectation on the brokerage house is their agents are property trained and doing their due diligence before each submission.”
Brokers can also do their own forecasting by keeping up to date with their local real estate boards’ monthly and quarterly data reports, as well as those released by CMHC, Genworth and the like.
“That way, with any curve balls next year, you can easily adjust your targets according to whatever the new environment might be because you’ll have a plan,” said Hinojosa, adding that she expects consumers to return to the market in droves.
“With policy changes it takes the consumer anywhere from 12 to 18 months to get acclimated and become comfortable again. There’s still affordability out there for consumers and a lot of them have been waiting on the sidelines, so brokers should be looking out for that.”