Navigating the Slowdown: How Broker Agents Can Stay Ahead in a Challenging Market

The mortgage market is undoubtedly experiencing a slowdown. With higher interest rates, stricter lending policies, and a significant decline in home sales, brokers are feeling the squeeze. In fact, home sales in Canada have dropped by a staggering 20% over the past year, and interest rates are at their highest in more than two decades.

Challenging times like these can feel daunting, but they also present opportunities for brokers who are willing to adapt, identify untapped market gaps, and offer flexible, creative solutions to their clients.

At VAULT, we believe that agility is key. Even in the most sluggish markets, brokers can stand out by staying ahead of trends, addressing unmet needs, and delivering value-driven options to clients.

Here’s how to stay ahead ??

1?? Unlock Opportunities with Underserved Borrowers

Even in a slow market, B-borrowers and unconventional borrowers—such as self-employed professionals, small business owners, and investors—remain active. These clients often face barriers with traditional lenders due to rigid income verification requirements, despite their financial strength.

Market Insight: As of 2023, there were approximately 2.65 million self-employed individuals in Canada, representing 13.2% of the employed population.

VAULT specializes in providing flexible, transitionary financing solutions to serve this underserved market, helping brokers close more deals and build lasting relationships.

2?? Be the Problem-Solver Your Clients Need

Today’s market demands flexible solutions. Borrowers face unique challenges, such as navigating rush closings, managing income verification, or securing financing to transition between properties. Brokers who can present flexible options can gain client loyalty.

How VAULT Helps:

• Quick approvals to help brokers meet tight deadlines.
• Flexible terms for non-traditional borrower profiles.
• Interest-only payment options to support clients’ cash flow.

3?? Collaborate to Expand Opportunities

In challenging markets, building strong collaborations can unlock new opportunities. By working closely with lending partners like VAULT, brokers can not only close complex deals but also expand their service offerings to attract a wider client base. VAULT’S solutions are designed to help you stand out as the market dips.

How VAULT Helps:

• Pricing transparency to build trust and credibility?
• Dedicated broker support to streamline the lending process.

Stat to Consider: In British Columbia, home sales dropped by almost 20% year-over-year in June 2024, highlighting the need for innovative approaches to deal-making in today’s market (CityNews Vancouver).

4?? Prepare for the Market Rebound

A dip in the market is the perfect time to sharpen your skills and educate your clients. When the market recovers, brokers who stay proactive will be ready to seize opportunities and be at the top of clients' minds.

Market Forecast:

• Home Sales: The Canadian Real Estate Association (CREA) projects a 6.6% increase in national home sales in 2025, with approximately 499,800 units expected to change hands. This signals a resurgence in market activity, creating new opportunities for brokers to support buyers and sellers effectively. (CREA)
• Home Prices: According to the Canada Mortgage and Housing Corporation (CMHC), home prices are forecasted to recover and surpass their early 2022 peak levels by 2025. This anticipated growth reflects renewed confidence in the housing market. (CMHC)
• Interest Rates: The Bank of Canada has already begun reducing interest rates, currently at 3.75%. Continued rate cuts are expected to lower borrowing costs, encouraging buyers to re-enter the market and fueling increased transaction volumes. (Reuters)

?? Why VAULT?

At VAULT, we specialize in flexible financing solutions that help brokers close deals for clients who don’t fit the mould of traditional lending. Whether it’s funding a rush purchase or offering solutions for income verification challenges, we’re here to support brokers in navigating the current market with confidence.

? No payout penalties. ? Quick, common-sense approvals. ? Flexible terms for unconventional borrowers. ? Fast closings.

Let’s Tackle the Market Dip Together and Unlock a Better Deal ??

The market may be slow, but your business doesn’t have to be. Connect with VAULT to explore how we can help you grow your business, deliver more value to your clients, and position yourself as a leader in this challenging market.?

?? Contact us today to get started.