How to Navigate the New Normal and Protect Your Reputation

Blog-Date-1Mar 15, 2023

It’s no secret that there has been a lot of uncertainty in the real estate market in the last year. Over the past 12 months the policy interest rate has seen eight rate hikes and has moved up to 4.5% .

But the tides are turning, and future projections are positive. On March 8th, the Bank of Canada decided to hold, signaling the first time in more than a year that they have decided not to raise rates. While this may yet change within the calendar year, commentary suggests we are seeing a temporarily halt to rate hikes while the BOC evaluates the complete effect of its increases on the economy.

So, what does this mean for brokers and their clients, and what can brokers do to position themselves to bolster their reputation?

A Strong Industry Means A Strong Market

The current change in the market has the potential to reignite the industry and spark much-needed traction. With the employment rate not expected to decline as dramatically as it did during the previous recession, the prospects for the economy bode well.

For those looking to make moves, now is an opportune time to get in the game rather than holding off for another market change.

What Do Rural And Construction Lending Look Like In This New Environment?

Rural lending continues to show promise with the hybrid work model seemingly here to stay, continuously high immigration numbers, and an increasing desire for space and privacy in a post-COVID Ontario. Demand and valuation for rural properties remains strong, while conversely, BIA in the core isn’t as desirable anymore.

For construction lending the numbers are clear. We are still facing a shortage of 1.5 million housing units over the next decade, with only 70k units becoming available per year, leaving a significant gap in supply. This pressure is compounded by pent-up demand due to the recent uncertainty and soaring immigration numbers.

All of these factors create a complex landscape for construction lending, which lenders will need to navigate to best meet the needs of their clients and enhance their reputation. One of the best ways to do so? Education.

Education Opens Doors

It’s more important than ever to educate your clients on the trajectory of the industry. By focusing on economists and the Bank of Canada’s own words, you can provide grounded insights into what’s to come.

Despite recent challenges, experts in the field still believe that real estate is one of the best investments available. But the mold has changed, even for A-stream clients. With that in mind, Pillar Financial is proud to offer an additional avenue of flexibility for brokers and agents to explore.

As part of a robust portfolio of solutions, we are an essential tool for brokers who want to protect their reputation in today’s real estate market.

Get Ahead Of The Change

Looking back at the market a year ago, it’s clear that change happens quickly. Projections for the future continue to be open to interpretation, but a soft landing could very well be on the horizon.

To be successful in this dynamic and ever-changing market, it’s essential to stay informed and open to new possibilities.

At Pillar Financial, we continue to be committed to helping you and your clients prosper by offering uniquely innovative and flexible solutions. Now more than ever we are focussed on building partnerships and providing brokers like you with all the resources you need to raise your reputation.

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