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How can lenders and brokers thrive in today’s mortgage market?

Executives from two leading lenders joined CMP to discuss how they’re serving the needs of Canadians, and how brokers and agents can help find the best solutions for their clients

Grant Armstrong

Community Trust

Industry experts

Gita Cartwright

MCAN Home

Grant Armstrong has been working in the mortgage industry for over 20 years, driven by a passion for delivering excellence to both clients and partners. While at RBC, he specialized in finding solutions for non-traditional lending clients, partnering with some of Canada’s top alternative lenders. Grant then moved to CIBC and led the Mortgage Options Group to record-setting sales results by focusing on training and development. In 2020, Grant joined Community Trust to lead the National Sales & Lending team and its expansion across Canada, supporting brokers in the alternative lending space with a focus on technology, innovation, and organizational development.

Community Trust

Grant Armstrong

Gita has had an impressive 25 years in the industry, holding roles in lending, territory management, and national sales and training. She brings these experiences to her newest role as BDM with MCAN Home. Gita is passionate about working in partnership with brokers with a focus on building solid relationships through excellence in customer service. She is also the proud recipient of CMP’s Woman of Influence award for the last three years.

MCAN Home

Gita Cartwright

“The balance for brokers today is to really understand what their clients do: What are they trying to accomplish, how do they get paid? And then matching that with a lender who can actually pay close attention to it”

Grant Armstrong, Community Trust

IT'S NO SECRET that Canada’s mortgage market has withstood some turbulent times in 2023, with rising interest rates and tighter qualification requirements presenting their fair share of challenges for borrowers and mortgage professionals alike. Still, many lenders have stepped up to the plate to help guide Canadians through that stormy market – and executives from two such companies joined Canadian Mortgage Professional for a recent roundtable to discuss their approach to the current climate and what agents and brokers should be keeping top of mind.

“You want a lender that cares, that has the experience and really understands that at the end of this transaction, there is a homeowner waiting to see what’s happening with this process”

Gita Cartwright, MCAN Financial

Clear communication among brokers, agents, and their lenders is particularly important in the current market – and Cartwright said partnership and trust were also essential areas on which brokers should be focusing when choosing a lender for their client. “You want to deal with people you know, like, and trust – a lender like MCAN that’s an extension of your team, that makes you feel like we’re a part of the family,” she said. “We’re in it together, so to speak. “You want a lender that cares, that has the experience and really understands that at the end of this transaction, there is a homeowner waiting to see what’s happening with this process. That’s where I would put a lot of my faith in a lender: making sure that they feel the same way about my client as I do.”

It’s also crucial not to try to force a square peg into a round hole; in other words, don’t try to place the client with a lender that might not fit. “Get to know how you can meld your client with that lender,” Armstrong advised. “A lot of individuals are trying to say, ‘Well, how do I fit this client into this box?’ That’s not what you want. “You don’t want to change the borrower. What you want to do is find out which lender has a policy, a solution, that will welcome that client’s unique profile.” Cartwright said asking tough questions of a client is of the utmost importance for brokers and agents, because those same difficult questions are going to be posed by the lender when the file lands on their desk.

For Gita Cartwright, business development manager, GTA West and Atlantic Canada at MCAN Home, the recent unpredictable market has underlined the need for lenders to be able to adapt quickly and present the best possible options for borrowers to navigate difficult times. “I think it’s fair to say that a homeowner’s ability to qualify for a mortgage has absolutely been affected,” she said. “Their mortgage payments are higher. Interest rates are playing a part in that, and higher debt and the cost of living are making it really tough. I think folks are absolutely stretched. “At this point, it’s really incumbent upon lenders to be able to pivot and provide the right products, the right services and options in the face of a pretty challenging market.” At Community Trust, meanwhile, a “healthy” market

Anticipating the questions that an underwriter will ask – What are their long- and short-term goals? Are there gaps in the credit history? Why? – can help create a smoother process for all parties, according to Cartwright. “I would also add to that, along with this playbook that’s out there: use the tools that your lender is offering you,” she said. “Have you pre-vetted your deal with a specialist? Not only to see if it fits, but also, what do I need when I end up submitting? How do we make this a bit more efficient for everybody?” If the lender is offering webinars, training, or product videos, those can also arm brokers with a more comprehensive array of information to ultimately make them better at what they do.

is apparent despite slower purchase activity across the real estate sector in 2023. Its director of originations, Grant Armstrong, told CMP that refinances among borrowers who took out five-year terms in 2018 or 2019 were especially prominent at present. “We’re seeing a healthy number of refinance transactions, and these are borrowers who qualified back in the six percent, seven percent, eight percent range with the stress test, so they’re able to take on and qualify for and carry the debt load today, and they’ve seen some appreciation in their property values,” he said. “2018, 2019 values are up over that time, so we’re able to help clients unlock some of that equity.”

Armstrong said brokers and agents should start with getting a clear insight into their clients’ specific circumstances – how they work and are compensated – before partnering with lenders that understand their unique situations. That’s especially relevant, he said, with the gig economy becoming an increasingly prevalent part of the Canadian labour force, a trend that’s brought about profound changes in the type of applications borrowers might make. “The balance for brokers today is to really understand what their clients do – What are they trying to accomplish, how do they get paid? – and then matching that with a lender that can actually pay close attention to it,” he said. That familiar need to communicate as clearly and consistently as possible is a factor that also shouldn’t be ignored, according to Armstrong. Being able to sit down with a group of business development managers (BDMs) with a coffee and talk openly about how to make deals work together is a critical key to success for agents and brokers.

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“I think Canadians have really shown a tremendous amount of resilience,” Cartwright said. “Unfortunately, I think they’re going to be tasked with that for a little bit longer.” Armstrong said the storm clouds could begin to ease by the spring, with the potential for borrowers to enter the market seeking short-term financing options, with rates likely to fall after that. “I’m geared up for a good 2024 market, but I’m always optimistic,” he said. “I always like to plan for the best, but I’m very proud to say Community Trust will support whatever market it is and help with some unique products to help Canadians tackle whatever their goals are.”

Community Trust is a flexible alternative to larger, more traditional financial institutions. We have been working with our valued partners as a leader in the alternative lending space for many years. We are also leaders when it comes to service and technology, with a firm commitment to providing brokers with innovative solutions that make working with us even easier and faster, giving them all the support they need to succeed with their clients. Above all, we genuinely care about the partners we work with, their clients, and about helping Canadians become more financially successful and secure. This underlying motivation is what drives everything we do.