{"id":7256,"date":"2024-11-04T01:47:32","date_gmt":"2024-11-04T01:47:32","guid":{"rendered":"https:\/\/finderica.com\/2025-will-be-a-better-year-5-broker-takeaways-on-market-trends-tech-and-client-relationships\/"},"modified":"2024-11-04T01:47:32","modified_gmt":"2024-11-04T01:47:32","slug":"2025-will-be-a-better-year-5-broker-takeaways-on-market-trends-tech-and-client-relationships","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=7256","title":{"rendered":"‘2025 will be a better year:’ 5 broker takeaways on market trends, tech, and client relationships"},"content":{"rendered":"
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With home prices still high across Canada and interest rates falling, mortgage professionals are navigating an ever-evolving market where the choice between fixed and variable rates adds new layers of complexity.<\/p>\n

At Mortgage Professionals Canada\u2019s recent National Mortgage Conference broker panel, five industry experts shared insights on everything from market outlooks and professional development to the fixed-versus-variable rate debate\u2014even placing a $10,000 bet on where mortgage rates might head over the next six months.<\/p>\n

Here are their top takeaways for the industry today and looking into next year:<\/p>\n

2025 will be a good year for brokers<\/strong><\/h2>\n

Now that mortgage rates are falling, homeowners are keen on either jumping into the market, or refinancing to a lower rate. This means more work for mortgage brokers.<\/p>\n

\n
\"Dave
Dave Larock<\/figcaption><\/figure>\n<\/div>\n

\u201cAs prices stabilize, I think volume will be up. I think 2025 will be a better year for us than 2024,\u201d said David Larock of Integrated Mortgage Planners. <\/p>\n

Clinton Wilkins, team leader at the Nova Scotia-based Clinton Wilkins Mortgage Team, estimated his firm\u2019s business might grow another 10% to 12% next year.<\/p>\n

Ron Butler, of Butler Mortgage and host of the Angry Mortgage podcast, went so far as to bet $10,000 that conventional mortgage rates in the next six months will fall to 3.89%.<\/p>\n

\u201cThe mortgage business is a cyclical business, if anyone hasn\u2019t noticed,\u201d he said \u201cNext year\u2019s going to be OK. This year is bad.\u201d Instead of fretting, Butler suggested brokers embrace the cyclical nature of the mortgage industry and look forward to the boom times, while also accepting that some years will be disappointing.<\/p>\n

However, simply waiting for the Bank of Canada to readjust its overnight interest rate isn\u2019t enough for brokers looking to capitalize on a thriving mortgage sector. <\/p>\n

Jill Moellering, an Edmonton-based broker, team lead and trainer, said plenty of brokers who started in 2020 made easy money at first, but later struggled because they hadn\u2019t built up their business strategy or learned about mortgage policies and products.<\/p>\n

\u201cDon\u2019t give up if you\u2019re new into the business,\u201d she said. \u201cJust put some work in and spend the time to hone your craft.\u201d<\/p>\n

Referrals are the best marketing you can hope for<\/strong><\/h2>\n

When business slows, it\u2019s easy to disappear down a rabbit hole of social media marketing, but the brokers agreed that flashy Facebook ads or TikTok posts don\u2019t significantly drive their business.<\/p>\n

\n
\"Jill
Jill Moellering<\/figcaption><\/figure>\n<\/div>\n

In fact, Moellering says she doesn\u2019t spend any money on advertising. All of her clients comes through word-of-mouth, or referral partners. \u201cIt doesn\u2019t have to cost you anything to go build up that business,\u201d she said.<\/p>\n

Wilkins estimated that about 60% of his clients are repeat, and marketing to them specifically can be quite fruitful. \u201cMortgage brokers in general want the easiest path to the finish line, but we forget that our customers are sometimes our best champions,\u201d he told the panel, \u201cand it\u2019s a lot easier to work within an existing client area.\u201d<\/p>\n

Brokers can\u2019t just sit back and expect referrals to come automatically; building a referral network takes work.<\/p>\n

In Moellering\u2019s case, she spent time in Facebook community groups simply answering questions about homeownership. <\/p>\n

Butler, somewhat tongue-in-cheek, had a much less strategically viable plan: \u201cGo on TikTok and sweat. Serious,\u201d he said, to laughter from the room. \u201cIt solved everything!\u201d<\/p>\n

Brokers face a choice: financial advisor or business-driven approach<\/strong><\/h2>\n

Many mortgage brokers today see themselves as financial advisors capable of guiding clients through one of the biggest purchases they\u2019ll ever make. <\/p>\n

A half-hour spent on the phone when big financial news breaks can calm a worried customer, even if it doesn\u2019t lead to any more money in the broker\u2019s pocket that day. Most on the panel agreed that time spent with customers can reap rewards down the road.<\/p>\n

\n
\"Ron
Ron Butler<\/figcaption><\/figure>\n<\/div>\n

\u201cTo me, the value in every interaction is creating referral sources,\u201d said Larock. \u201cEvery morning, the phone rings. Sometimes, there\u2019s business, and sometimes I\u2019m just helping people.\u201d <\/p>\n

To Larock, helping clients understand their financial options is one of the best ways for brokers to retain clients. A well-informed client is more likely to return for future purchases and refer friends or family, driving long-term business growth.<\/p>\n

However, staying fully informed on the latest economic news and trends comes with a price.<\/p>\n

Butler, a longtime media commentator, said there\u2019s nothing wrong with brokers deciding they don\u2019t want to act as financial advisors to clients. He described these brokers as \u2018technicians\u2019 capable of getting the best deals possible for their clients.<\/p>\n

Those that do, however, should expect to read about \u201920 hours a week\u2019 on top of their workload. \u201cIf you want to be this kind of a subject matter expert, you\u2019ve got to spend some time reading and learning,\u201d Butler said.<\/p>\n

Don\u2019t assume you know everything, but always be prepared when clients call<\/strong><\/h2>\n

Falling interest rates present a dilemma for fixed-rate mortgage holders eager for a better deal: is it worth breaking their mortgage, switching to a variable rate, and paying the associated penalties? <\/p>\n

\n
\"Philippe
Philippe Beland<\/figcaption><\/figure>\n<\/div>\n

Butler encouraged brokers to reach out to clients with rates in the 4% to 5% range who may have opportunities to lock in at lower rates, making sure to provide an honest assessment of the penalties and potential savings. \u201cAnd there will be money made,\u201d he said.<\/p>\n

Larock, by contrast, cautioned the audience against persuading clients to switch to a variable-rate mortgage if they are better-suited to the stability of a fixed rate. \u201cWe can\u2019t see around corners. We don\u2019t know what the future is going to hold,\u201d he told the panel. \u201cWe don\u2019t want to project confidence when we have no right to it.\u201d<\/p>\n

Wilkins noted that brokers should be ready for these discussions, as the fixed vs. variable dilemma will be top of mind for many new buyers and those renewing in the coming years. He emphasized that while not everyone understands the potential costs of breaking a mortgage early\u2014which can run into tens of thousands\u2014some clients may still opt to proceed, chasing a lower rate.<\/p>\n

\u201cThese hard conversations are going to be coming, you just wait,\u201d he said.<\/p>\n

Philippe Beland, a Quebec-based broker, pointed out that these hard conversations aren\u2019t even all that new. \u201cThis is why you need to be very transparent when looking at 5-year fixed penalties,\u201d he said. \u201cIn 2021, we did way too many variable mortgages, and we got into difficult discussions with clients.\u201d<\/p>\n

Don\u2019t stress over tech\u2014unless it\u2019s holding you back<\/strong><\/h2>\n

Brokers often hear they need the latest tools\u2014from mortgage CRMs to private ChatGPT servers\u2014to keep on top of their workload.<\/p>\n

\n
\"Clinton
Clinton Wilkins<\/figcaption><\/figure>\n<\/div>\n

To Wilkins, the best technology a broker has is whatever they happen to be using. \u201cI think you need to pick your path and be consistent,\u201d he told the panel.<\/p>\n

Spending all of your time testing the latest tools can quickly eat into the time you spend closing deals if you aren\u2019t careful. <\/p>\n

Moellering shared the story of a broker who tested five different CRM platforms, while only closing about 10 mortgage deals in the year. For her, the essentials are her phone and a submission platform. \u201cTech should be used to improve your world and actually take work off your plate,\u201d she said.<\/p>\n

Larock emphasized that it\u2019s perfectly fine not to be the most tech-savvy broker. In fact, he believes technology can sometimes interfere with the personal touch that sets a broker apart. <\/p>\n

\u201cFor me, the magic happens when I talk to my clients,\u201d he said. \u201cAny tech that prevents me from doing that, or reduces the amount of time I spend with my clients\u2026is not happening.\u201d<\/p>\n

Visited 193 times, 193 visit(s) today<\/p>\n

broker panel broker tips Clinton Wilkins Dave Larock jill moellering mortgage broker mortgage broker how-to mortgage professionals canada national mortgage conference Philippe Beland ron butler<\/p>\n

Last modified: November 3, 2024<\/p>\n<\/p><\/div>\n

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With home prices still high across Canada and interest rates falling, mortgage professionals are navigating an ever-evolving market where the choice between fixed and variable rates adds new layers of complexity. At Mortgage Professionals Canada\u2019s recent National Mortgage Conference broker panel, five industry experts shared insights on everything from market outlooks and professional development to<\/p>\n","protected":false},"author":1,"featured_media":7257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[216],"tags":[2007,2022,94,2023,2020,243,2021,257],"class_list":{"0":"post-7256","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mortgage","8":"tag-broker","9":"tag-client","10":"tag-market","11":"tag-relationships","12":"tag-takeaways","13":"tag-tech","14":"tag-trends","15":"tag-year"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7256"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/7257"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}