Why Canada's mortgage industry could be set to bounce back soon

The assumption the industry will remain in crisis mode for a prolonged duration might be a misguided notion, says CEO

Why Canada's mortgage industry could be set to bounce back soon

With 2024 likely to be influenced by momentum from a turbulent year, it might be all too easy for mortgage professionals to assume that the industry will remain in crisis mode for a prolonged duration.

However, Tango Financial CEO Dean Larson said that brokers need to remember that the mortgage industry has always been readily influenced by shifting tides.

“Human nature’s tendency is to feel like whatever’s happening today is the way it’s always going to be both on the positive side and the negative side, and I try to remind people I’m in contact with and people at our company that everything changes,” Larson said in a recent CMP Power Panel.

“I want people to realize that the way things are today is not the way they will always be. I’ve been in this business for 20 years, roughly, and I’ve seen ups and downs. I’ve seen crashes, I’ve seen booms – I’ve seen both.”

Larson said that anything that goes down – in this case, market activity – will almost certainly bounce back eventually.

Hence, mortgage professionals should get their businesses ready for the times of plenty, “for the inevitable change in that market when things will get better, when they will stabilize, when there will be more positive news and a more active real estate market to participate in and help your clients with,” he said.

Larson also believes in not letting any crisis go to waste, and he encouraged mortgage professionals to adopt the same outlook.

“As we come out of this, I think we’re going to see a stronger overall mortgage industry than what we had before,” he said. “We’re going to see more competence, more professionalism, more knowledge.”

“A good mortgage broker is reading the economic reports and reading the graphs and charts and predictions and they’re now giving their clients advice on what they should do to either get themselves ready to get into the market, if it’s first-time homebuyers, or get themselves ready to make sure their next mortgage renewal or purchase gets into the long-term financial strategy that also fits in with what the economics are going to look like in the future.”

Read now: Why there’s plenty of room for optimism in Canada’s mortgage market