The mortgage industry is fast-paced and full of challenges, from strict regulations to ever-changing market conditions. As a mortgage broker, you know that every transaction depends on accurate appraisal valuations, timely processing, and happy clients. But did you know that the right appraisal firm can directly impact your success? A trusted appraisal partner doesn’t just help you close deals—it strengthens your reputation, ensures compliance, and keeps your business running smoothly. By choosing a reliable appraisal firm that lenders trust, you can streamline operations, reduce headaches, and set yourself up for long-term growth. 

​1. The Value of Open Communication with Appraisers 
A strong relationship with your appraisal firm goes beyond just receiving reports—it requires open and honest communication. Discussing market trends, unique property factors, and value expectations with your appraiser helps ensure that valuations align with reality while staying within lender requirements. When brokers and appraisers engage in transparent communication, they can establish well-founded valuation expectations and mitigate the risk of proceeding with a deal based on an unrealistic value. This helps brokers save time by focusing on deals that are more likely to succeed, leading to smoother transactions and better results for everyone involved. 

2. Optimizing Loan Processing Timelines 
Timing is everything in mortgage transactions. The speed of an appraisal directly affects loan approval timelines, impacting borrower satisfaction and the overall efficiency of the lending process. Additionally, an appraisal firm trusted by lenders can accelerate the underwriting review process, as underwriters have greater confidence in the firm's work. When your appraisers deliver on time and with credibility, your clients remain satisfied, and your business operates more efficiently. 

3. Strengthening Client Confidence and Market Credibility 
Buying a home is one of the biggest financial decisions your clients will ever make. They need to feel confident that the property they’re investing in has been fairly and accurately valued. A well-executed appraisal builds trust, reassures borrowers, and increases the likelihood of repeat business and referrals. When you work with an appraisal firm that upholds the highest standards of accuracy and transparency, it reflects positively on your brokerage and strengthens your reputation in the industry. 

4. Navigating Market Fluctuations with Expertise 
Real estate markets don’t stand still. Prices fluctuate due to economic trends, neighborhood developments, and shifting demand. A seasoned appraisal firm helps you stay ahead of these changes, offering insights that allow you to better guide your clients. With an experienced appraisal partner, you’re not just closing deals--you’re positioning yourself as a knowledgeable advisor whom clients can rely on, no matter the market conditions. 

5. Fostering Long-Term Business Growth 
Success in mortgage brokerage isn’t just about closing individual deals--it’s about building a stable, growing business. Having a dependable appraisal firm in your corner means fewer transaction headaches, stronger lender relationships, and a smoother workflow. This stability allows you to focus on expanding your client base, improving service, and scaling your business for long-term success. 

6. Ensuring Precise and Credible Valuations 
Accurate property valuation is at the heart of mortgage lending. Without it, deals can fall apart, loans can get rejected, and clients can lose confidence. A trusted appraisal firm provides fair, market-aligned assessments that help you avoid unnecessary delays or financial surprises. By working with appraisers who truly understand market trends and lender expectations, you can minimize roadblocks and keep deals moving forward. 

Conclusion 
Your ability to close deals efficiently, stay compliant, and earn client trust depends on the strength of your appraisal partnerships. A reliable appraisal firm ensures accuracy, speeds up loan processing, and enhances your credibility in the industry. 

​If you’re looking to take your brokerage to the next level, now is the time to invest in a high-quality appraisal partner—one that delivers precise valuations, follows regulations, and meets lender expectations. Building this partnership won’t just help you today; it will set your business up for success in the years to come. ​

Effective January 1, 2025, the Criminal Interest Rate has been lowered

The criminal interest rate in Canada has officially been lowered from 60% to 35%, effective January 1, 2025. This significant change impacts mortgage brokerages, private lenders, and loan arrangements, making it crucial for industry professionals to understand their obligations under the new legislation.

Key compliance considerations for Mortgage Brokerages
If your brokerage arranges mortgages directly on behalf of private lenders, you must ensure that these lenders are aware of the new regulation. It is now a criminal offence to offer loans at an interest rate higher than 35%, subject to specific exceptions. For brokerages arranging loans where the lender is represented by another brokerage or is a direct lender, your primary responsibility is to the borrower. You must ensure that the interest rate—including fees and other costs--does not exceed 35%.

APR and the true cost of borrowing
Interest, as defined under the law, includes not only the stated rate but also various fees and additional borrowing costs. In cases where loans are small and short-term, these extra costs could push the Annual Percentage Rate (APR) above the 35% threshold. Mortgage professionals must carefully calculate the full cost of borrowing to ensure compliance.

Exceptions for certain commercial loans
Some commercial loans are exempt from this legislation. If your brokerage arranges commercial financing, it is critical to understand the legal definitions and applicable exemptions. There are many resources available online—including legal articles—that provide further guidance on these changes.

Ensuring compliance with the Real Estate Act Rules
The Real Estate Act Rules require all mortgage licensees to practice in full compliance with the Act, Regulations, Rules, and Bylaws governing mortgage transactions in Alberta. As a brokerage, it is your responsibility to stay informed and ensure adherence to the new criminal interest rate regulations.

​For more details, consult legal and industry resources to better understand the impact of these legislative updates.

Sponsored Content: This article is brought to you by Teranet

​Fraud is an ongoing concern in the mortgage industry, posing risks to lenders, brokers, and consumers alike. As a mortgage agent or broker, protecting your business from fraudulent activities is not just a legal obligation but a crucial step in maintaining your reputation, reducing financial losses, and ensuring the integrity of the mortgage process.
 
Mortgage brokers and agents play a critical role in mitigating fraud. Here are a few reasons why it is crucial to be vigilant and conduct your due diligence to avoid fraud:
 
Financial and Legal Risks
Mortgage fraud can lead to significant financial losses, regulatory fines, and legal consequences. Fraudulent applications, identity theft, and misrepresentation can result in bad loans that may ultimately default, causing financial instability for lenders and investors.
 
Reputation Protection
A single case of fraud can severely damage your professional reputation. If a broker or agent is linked to fraudulent transactions, trust among lenders, clients, and industry partners can be compromised, leading to lost business opportunities and potential license revocation.
 
Regulatory Compliance
Regulators impose strict guidelines to ensure the integrity of the mortgage industry. Non-compliance with anti-fraud measures can lead to severe penalties, including suspension, fines, or legal action.
 
While fraud continues to be a concern across all industries, it is important to know which resources are available to help mitigate fraud, and what best practices are in identifying potential red flags. Here are some important steps you can take to help mitigate fraud:
 
  •  Implement Strong Verification Processes – Conduct thorough identity, income, and employment                    verifications. Cross-check borrower information with multiple data sources.
  •  Utilize Technology and Analytics -- Use automated fraud detection tools to flag inconsistencies.
  •  Stay Educated and Updated -- Keep up with emerging fraud trends and regulatory changes. Attending           industry workshops and training sessions on fraud prevention can help you further identify how fraud             continues to evolve.
 
How PurView Can Help Mitigate Fraud
PurView is a powerful tool that provides mortgage professionals with essential property data, ownership history, and fraud detection capabilities. By leveraging PurView, mortgage agents and brokers can:
 
  •  Verify Property Ownership: With access to title information, you can validate who is on title, historical            sales, ownership information and more.
  •  Detect Potential Fraud: Access to the most authoritative property data can help identify any potential            fraud risks on a property.
  •  Enhance Due Diligence: Gain a comprehensive view of borrower and property details to make informed          lending decisions.
 
Insight into this data can allow you to validate the information you are provided by your client or dig deeper into anything that may raise a red flag. Having access to the PurView Property Report ensures that you are not only protecting your client but also protecting yourself and your reputation.

By implementing a thorough verification process, staying informed, and leveraging innovative tools like PurView, mortgage professionals can significantly reduce fraud risks and build a more transparent, trustworthy lending environment.
 
Are you ready to enhance your fraud prevention efforts? Book a customizable demo to learn more about PurView today.

Sponsored Content: This article is brought to you by Bridgewater Bank

The number of self-employed Canadians remains stable, and with about 2.6 million self-employed people, you can bet some will be coming to you to help finance a mortgage. 

​You might have two types of self-employed clients walking through your door: 

  •  The first type can demonstrate consistent earnings over time. They will be able to provide traditional                income-proving documents, such as accountant-prepared financial statements (profit and loss, balance        sheets), T1 Generals, and their Notice of Assessment (NOA). 
​
  •  The second type may have a lower reported income but are still deemed good candidates for a                        mortgage. They may have substantial tax write-offs on financial statements but have a strong ability to          repay loans due to sustainable business, sufficient gross incomes, and robust cash position. 

These two clients have one thing in common—they may have trouble qualifying at a traditional bank with their self-employed income

Underwriting approaches for proving income 

We’re all about flexibility. Bridgewater Bank’s  Self-Employed Mortgage Suite  provides several ways to prove your client’s income, the following two being the most popular. 

Your first step is to talk to your Business Development Manager.  Before you submit a deal, let us help you determine which of the following approaches will help your client get an approval. 

Don’t just take our word for it 

We know we have great mortgage options for self-employed Canadians, and we’re not the only ones who think so.   

​             “I recently funded my first bank statement file with Bridgewater Bank and let me tell you – it was                         delightful! The entire process ran smoothly, from underwriting to funding--not only were we able to                     save our clients thousands of dollars in interest, we were also able to have this file committed,                             reviewed and closed faster than I thought possible. I would highly recommend Bridgewater Bank                         for your next bank statement file – you’ll be glad you did!” — Donna Thornton from DLC Forest City 

​We highly recommend reaching out to your BDM when you have a self-employed file. They’ll help you understand the best income approach to follow and they’ll help you put the file together for quick approvals. https://bwbbrokerinfo.ca/contact-us/