Welcome to Guardian Financing’s October, 2018 monthly newsletter. This month’s issue is on digital mortgages and why brokers must change their tact in the industry.
Following the 2018 Digital Mortgage Conference, it has become apparently clear that those who aren’t willing to adopt technology in the mortgage industry are missing out. Not long ago, the process of getting a mortgage – from application to approval, required a series of in-person meetings that consumed a lot of time and prolonged the application process.
But thanks to technology, the industry has completely revolutionized, and now, it is possible to have a mortgage approved, conveniently using nothing more than a smartphone, and no need for any in-person meetings.
It is imperative for any broker intending to outperform the industry average in 2019 and beyond, to make good use of the available technology, not just because this is where the industry is headed, but because it makes everything easy for the broker, the lender and the buyer. A good borrower experience, operational efficiency, and cost reduction are some of the reasons that make digital mortgages highly desirable for most participants within the industry.
With digital mortgages, once a user finds a broker online, they will review the site, the rates, and check out a few details to help them decide whether they want to go ahead with the application. If they are okay with the packages the broker is offering, they will fillout a short form, which the broker will receive, and will then walk the buyer through any questions they may have by phone. If the buyer thinks the broker is reasonable enough and someone whom they can trust, they will complete the full online application, and after a very short period of time, they will have their loans.
Such is the simplicity and efficiency of going digital in this industry, and this is a completely different story from what used to happen about a decade ago, when a typical application for a mortgage took no less than six weeks of involved documentation, of over 100 pages.
With digital mortgages, however, both the financial and time costs of labor are bound to be reduced, and the borrowing process becomes less frustrating to the borrower. In addition, the borrower has a chance to save, which works well with the millennial generation, which is the largest and most tech-savvy generation in history. An additional benefit includes improved communication between borrowers and brokers.
You should also take note of the fact that online loan generation is up by 30% since 2010, and the digital mortgage application rate is up by 54% within the last one year alone. This is a clear indication that the overall industry is going digital, and failure to conform or adapt is tantamount to signing on for your upcoming failure.
Guardian Financing is a direct private mortgage lender. We serve the greater Montreal area providing short term residential mortgage loans, typically ranging from $50,000 to $3,000,000. Contact us today to discuss your file at 514-700-3121 or by email at files@guardianfinancing.ca.
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