Fisgard exec on helping clients who could qualify three years ago – but cannot now
This article was produced in partnership with Fisgard Asset Management Corporation.
Desmond Devoy, of Canadian Mortgage Professional, sat down with Reaza Ali, national broker relations manager with Fisgard Asset Management Corporation, to discuss how brokers can be most helpful to clients in this difficult market, helping clients stay in their homes, or enter the housing market, through the alternative lending space.
We all need help, and in this market, we need all the help we can get.
That’s why Fisgard Asset Management Corporation is here to help your clients in such a tight market. Fisgard has been working on mortgages for nearly 30 years, and offers its services from British Columbia to Ontario, and all the provinces in between.
The Victoria-based firm is adept at helping clients with multiple properties, even across several provinces, but its basic product suite still remains residential mortgage financing, with an emphasis on first residential mortgages. However, it does offer second mortgage, commercial and construction financing as well as bridge financing.
“The market is so hot out there with the inventory being very small, that people are going out and purchasing property first before selling their existing homes in some cases,” said Reaza Ali, the company’s national broker relations manager. “They’re finding out that their existing property may not be selling as quick as they thought.”
That’s where a Fisgard bridge loan can help, for example.
’t need a firm sale on our bridge financing,” he said, something not all lenders can entertain. “It’s a valuable piece to provide that solution for the consumer and get them in their house.”
Ali also points out that when Fisgard approves a residential deal, it is doing so with no lender fee, whereas most other firms will have that legacy attached to their offering. By not charging a fee, “it does help maximize the dollars that the consumer is getting.” Fisgard offers a one-year open term, and the consumer can pay out without interest penalties within that term after a stated period.”
The goal is always to move the client along as quickly as possible, he said.
He admits that it is a challenging time now, as it is a “tough environment” for originating new business in the traditional institutional lending space, which is why he wants to let those who have not transacted business in the alternative space be aware that “there is business there.” Many brokers may not be aware of how to utilize the private lending option, but it is a space worth exploring, for themselves and their clients.
“These are real solutions that can help consumers stay in their homes or acquire a home and get themselves into the market,” Ali said. “[Brokers and clients] really do need to understand that we are a viable solution.”
For clients who truly do not know where to go, brokers making them aware of the alternative space can prove to be a lifesaver for a family.
Ali has seen, within the industry, families who may have qualified for a mortgage as recently as three years ago now suddenly shut out from more traditional mortgages.
“They don’t qualify there anymore,” he said. “Brokers can get ahead of that conversation and educate the consumer base.”
How brokers can provide a helping hand
This tightness has resulted in tougher times now for buyers and agents. But for Ali, there’s always hope.
“What I’ve always found is the Canadian mortgage market, and Canadians in general, are quite resilient with whatever hits them,” said Ali. “There’s always an adjustment to be made.”
That’s the case for both the broker community and the consumer segment, especially with “consumers coming to the table to get into the market,” he said. This rate environment has existed for a while now, long enough for people to adapt as needed.
“Going forward I do see good things on the horizon,” he said.
So, how can the broker community be a benefit in a rising rate environment?
A mortgage industry veteran of more than 25 years, Ali has noticed that there’s always enormous opportunity for the broker community – whether during times of rising interest rates or regulatory changes.
“The consumer base needs the advice, and they’re looking for experts that can help them navigate through any of these rocky roads,” he said.
“For the broker community in general, they’re able to step up to the table and really provide that sound advice to consumers.”
While many clients instinctively seek out the counsel and anecdotal experiences of their friends and family, “you should be speaking with the experts in the industry. And that’s where the broker community can really play a big part for the consumers out there.”
Even so, clients are going to compare rates with those that family and friends have received.
But Ali cautions against assuming that one borrower’s individual circumstances is always the same as the next.
Sure, your friend at work got a good rate from his bank.
“What you don’t know is, what was their situation specifically that afforded them that, and does that consumer fit the same profile?” he asked. That rate might not be available now, or a program they benefitted from may no longer exist. “Things change throughout the course of a year, in some cases, a quarter, depending on the demands of the consumer and the regulatory environment – along with the lenders’ risk tolerance as well.”
A broker who has access to a variety of lenders can search and seek for their client and see what fits them best as a consumer in their situation.
“That’s where brokers can sit down, illustrate and go through all the different options,” he said. The best deal might be at a traditional lender – or an alternative lender.
