After a short hiatus, the Bank of Canada returned to its interest rate hikes in June in its continued efforts to curb inflation. The Bank increased the benchmark rate to 4.75%—the highest it’s been since 2001. With the cost of owning a home in Canada on the rise again, home buyers and owners will continue to rely on private lenders to achieve their goals and keep up with their existing obligations.
But not all private lenders are created equal. As interest in private lending continues to grow, it’s more important than ever that mortgage brokers build robust relationships with established private lenders that are ethical, transparent and accountable.
To help guide your clients through these uncertain times, be sure to partner with a private lender you can trust to provide the tools and knowledge your clients need to feel confident about their mortgage decisions. Keep these four key characteristics in mind when choosing a private lending partner, and advise borrowers to consider these factors when reviewing their options.
Relationships — The level of service a lender provides to you and your clients from the get-go is a key indicator of the support you can expect throughout the partnership. Turn to your network to learn what a lender’s reputation and relationships are like. Focus on connecting with a lender that prioritizes open, honest, and consistent communication, even when delivering bad news. In addition, a private lender that has a borrower’s best interest at heart will always prioritize deals with a viable exit strategy early on in the mortgage process. Trustworthy private lenders, like CMI, also take the time to understand a borrower’s full story in order to help you come up with the best possible solution for your client.
Resources — When it comes to private lenders, bigger tends to be better. Consider how long a private lender has been in the market; the size and scope of the company; how many mortgages they’ve funded; and where their capital is coming from. Larger, more experienced private lenders will generally have a dedicated and experienced team of underwriters, broker relationship managers, and support staff to ensure they have both the expertise and capacity to deliver a high-touch experience and foster lasting relationships with their broker partners. In addition, industry-leading private lenders are generally more digitally-driven with greater investment in mortgage technology to improve the client journey for brokers and their borrower clients.
Range — A leading private lender can get deals done when others can’t. Focus on lenders that have proven their flexibility in the way they structure their deals and the range of solutions that they can provide. These lenders are agile, creative, and offer a range of personalized solutions to help borrowers improve their credit, consolidate debt, or get into a new home.
Reputation — A private lender’s reputation isa key consideration. Help steer clients toward a private lender that is upfront about fees and costs and prioritizes transparency. Reputable private lenders are not afraid to be honest with brokers and borrowers alike to ensure the suitability of the solution – and to make sure there are no surprises – to avoid potentially devastating consequences down the line. Borrowers should also do their own research, look at reviews, and learn about the experiences of friends, relatives, and other homeowners.
The CMI difference
CMI is an award-winning private lender with a proven track record over the past 18 years. CMI’s success – including the recent milestone of surpassing $2 billion in lifetime mortgage fundings – has been driven by our mission to provide financing to underserved and disadvantaged borrowers using fair, transparent, and ethical business practices. In addition, it’s always been important to CMI to elevate the reputation of the private lending industry. When recommending a private lender to clients, there are many reasons why CMI stands out.
Every borrower has a unique financial story and sometimes the solution isn’t straightforward. For clients with bruised credit, a complicated job history, non-traditional employment or simply can’t pass the stress test after the rate hikes, your relationship with a trusted private lender could be a lifeline. You can rest assured that, at CMI, we prioritize our broker partners and never deal directly with borrowers. That’s because we know what it’s like to be in your shoes. CMI started out as a brokerage, so we understand how important your client relationships are—and we’re here to support and strengthen those relationships, not compete for them.
Our goal is to make the submission process seamless, so that your clients can get financing as quickly and easily as possible. Whether your client is looking to purchase property in a rural community or lives in a large urban city and wants to consolidate their debt, CMI offers solutions from coast to coast. You can always count on our diverse team of industry experts to look at the big picture and work with you to come up with a solution that works based on your clients unique circumstances.
CMI takes a common-sense approach to help you serve borrowers of all stripes with quick and efficient digitally-driven solutions. From the very start, CMI has prioritized investing in technology and building on innovative solutions to stay ahead of the curve in the ever-evolving mortgage industry. You can submit your deals through any of the major submission platforms—Filogix, Lendesk, and Velocity—using CMI’s intuitive online platform for a hassle-free, paperless experience. In addition, we only ask for the information we need to make an informed lending decision, so the burden of preparing and submitting documentation is minimal compared to requirements for a bank or traditional lender.
Even through the most challenging market conditions, CMI has been able to scale operations and fill a crucial void in the mortgage market. When you partner with us, you – and your clients – can rest assured that you’re working with a premier lender with a reputation built on trust and transparency. Reach out to us for more information on how we can support you and your clients.