Market to remain Steady says Canada Mortgage and Housing Corporation’s third quarter housing report

New home construction is anticipated to see very modest growth in 2012 with an estimated 183,900 housing starts verses the 183,200 estimated by year end for 2011.  Resale of existing properties is set to follow the same pattern with an estimated total of 458,000 transactions over the 2011 number at 446,700.

What does this mean for the Mortgage Brokerage Industry in Canada? 

With the relatively flat projection it means that we will still see a strong real estate market.  With very moderate growth projected, 2012 is a year where the brokerage community will need to enhance their client communication and marketing strategy.  The ability of the mortgage broker to have strong relationships with the consumer based on providing sound expertise gives us an edge when looking for growth opportunities.  Consumers are more and more seeking options when pushing forward with the largest financial transaction of their lives.  With the banks continuing to push for a market share grab, and the overshadowing uncertainty of the world’s economic climate, the broker channel is uniquely positioned to give comfort with a focus on what is best for the consumer verses selling one product line that is aggressively cross sold.

Consumers in Canada continue to experience credit strain as indicated by a recent Royal Bank report where 38% of Canadians now indicate that they are not as comfortable with their level of consumer debt as they were 12 months ago.  This combined with an ever more aggressive program of pushing unsecured lending by the banks, means that the trend for continued expansion of personal debt will rise.  Place the burden of additional mortgage lending restrictions into the mix and the need for sound advice grows stronger.  Consumer Proposals are continuing to see a dramatic increase as people seek out solutions to their debt woes especially as the banks and other lenders do not offer solutions that focus on long term solutions.

All indicators tell us that keeping in touch with clients with relevant and timely information is the foundation to creating a strong and diverse portfolio of clients.  Being able to offer clients sound advice, and additional options on credit and debt management will become ever more important as we move into the New Year.

Mortgage Protection Insurance

If you've ever bought a home, you've probably been there: you meet with a lender to sign your mortgage documents and he or she offers you mortgage protection insurance. It can be as simple as ticking off a box and signing on the dotted line to accept the premiums and insure you and your family against death, disability or other catastrophic event that might leave you unable to make your mortgage payments.

But are those premiums competitive? How much will you pay annually for what type of coverage; and what is written in the fine print?

Lending institutions ancillary mortgage products are not the only ones on the market. Independent insurance companies also offer varying types of mortgage protection that can save consumers hundreds of dollars annually.

Whichever mortgage insurance plan you select, it’s good to know that even with mortgage protection insurance, there is competition. There is nothing stopping you from shopping around for the best mortgage protection for you with the most affordable premiums - the same as you would for any product.

It’s Your Career – I’m Here to Support YOU!
Constantine Isslamow | Broker of Record

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702
Constantine.Isslamow@gmail.com
www.ConstantineIsslamow.com

Residential Mortgage Market in Canada

As a member of the Canadian Association of Accredited Mortgage Professionals, I am please to share with you the December issue of CAAMP Stats. This attachment is its fall annual report on the state of the residential mortgage market in Canada.
To read the report please click on the link below.

http://onlineoffice.century21.ca/PublicStorage.c?ID=d349c165-5715-4251-af8e-153a0be16f64

It's Your Career - I'm Here To Support YOU!
Constantine Isslamow
Real Estate Broker/Mortgage Broker/Manager
Century 21 United Realty Inc. Brokerage/CENTUM Core Financial Inc.
Independently Owned and Operated
Blog / Website / Follow Me / LinkedIn
CENTUM Core Financial Inc. Brokerage License #: 10642 Constantine Isslamow License#: M08005391