Garth Ellis featured in Canada Mortgage Magazine – Staying the Course in 2010

June 15 , 2010

TORONTO , July 15 /JAC/ — There was some concern at the beginning of the year that with rule changes and general economic uncertainty, 2010 might be a challenging year for mortgage professionals. JAC News asked several professionals as to how their business has fared so far this year.

We were interested in knowing if the business make-up had changed, what new challenges were presented and how they were overcome and what impact the policy changes have made so far.

Anticipating an extremely brisk last half of 2010

Garth Ellis , AMP, President, Verico Ellis Mortgages Canada, notes that "We 2010 started with a lot of hesitation that the 'bark' of new policies would bring with it a lot of 'bite'. As is often the case, the anticipated negative impacts of the policy changes imposed earlier in the year simply have not resulted in an over-all reduction in mortgage originations year to date. While it has been somewhat more difficult to qualify lesser capable clients and there has been less activity in the rental property market, increases in other mortgage products have more than offset these negatives".

"The purchase market is strong and consumers in general are very confident in their future employment and their over-all economic stability. As a result, clients have been seeking a wide variety of mortgage opportunities. The majority of our new clients range from those who are looking to 'move up' in the housing market, first-time home buyers and clients liquidating home equity for investment outside of the real estate sector".

"2010 has been an excellent year so far. Our firm worked through a very successful first quarter and witnessed a substantial increase in business that lasted throughout the entire second quarter. We are anticipating an extremely brisk last half of 2010".

Best investment to make is in your clients

Angela Calla, AMP, Mortgage Broker with Dominion Lending Centres in Coquitlam , BC offers that "My business make up this year has remained quite similar to 2009, with a little bit of a shift from the majority of first timers to the beginning of this year being refinances. I have found the challenges to be the ability for consumers to understand how the changes with CHHC and HST affect them but with my tireless commitment to educate my clients and the public, I take every opportunity to remind clients as fear can put clients at a standstill. It's up to us to educate". 

"Values in some areas have not increased enough for clients to take advantage of redoing their existing mortgage with adding the penalty, so we have plans worked out for our clients to pay down their mortgage faster to have more equity in their homes to make that change will rates are still at record lows, this may involve some in-depth planning by reviewing their entire financial portfolio and the best investments to make is in your clients".

Profiting from working smarter versus harder

Marshall Spencer, AMP, Broker, Prime Rates (RMA) in Durham Region, Ontario , comments that "I would say my business make-up has changed this year in that I'm seeing more business for self applicants than in previous years. This has meant paying better attention to the changing lending guidelines, especially the disappearing stated income programs. Thankfully I have developed a strong relationship with my key lenders. The rule changes have required more dedication to study time but in doing so, have also meant a very clear understanding of marketing to this niche".