The answer, in my opinion, is an emphatic yes. As we prepare for the National Mortgage Conference in Montréal this weekend, I’m reaching out early to let you know that First National is primed to support you with great service and reliable products as the market shifts to growth mode.
The reasons for optimism are numerous and start with monetary policy. Canada has officially embarked on an interest rate reduction cycle that started in June and continued with favourable Bank of Canada decisions in July, September and just yesterday with a super-sized cut of 50 basis points to bring the overnight rate down to 3.75%.
That’s not all. As you know, the federal government has recently made a variety of changes to incent first-time homebuyers, buyers of new builds and those seeking financing to create laneway homes and secondary suites. Switching lenders at renewal will also become easier next month as all borrowers will be exempt from the mortgage stress test, as long as their mortgage size and amortization doesn’t change.
Hopefully these targeted policies, including the creation of 30-year amortizations, will help buyers because the flip side of these actions is the potential for another run up in home prices as additional demand is unleashed.
While the economic health of the country can shift and legislation can change quickly, all things being equal, we expect current tailwinds to drive a good finish to the year and support a strong spring housing market in 2025.
Empowering Growth Together
In anticipation of improving market conditions, First National is geared up to deliver on our commitment to Empowering Growth Together with you. Our residential team is well resourced (now a thousand-people strong), well equipped and motivated to serve. Achieving the industry’s best turnaround times on submissions remains our singular objective and I believe we are in good shape to meet it.
We’re also heavily focused on advancing our technology in ways that will make us better and faster for you. Reinvesting in both our people and our IT shows our confidence in the future and over time, these actions will prepare us for next generation growth.
More immediately, you can count on First National to lead the market with reliable mortgage solutions – Prime and Excalibur – to address the needs of Canadian borrowers with different credit profiles. We will also continue to host Lender Education Days designed to enhance your knowledge of market trends and position you for even greater business growth and success.
We are, in short, doubling down to make 2025 a great year.
First National at the National Mortgage Conference
Be sure to visit our display (booth #815) and watch for Jason Ellis to offer his insights on this year’s Lender Panel beginning at 2:15 pm on Sunday.
Thank you
We deeply appreciate the opportunities you create for us to grow. We also take pride and encouragement when First National is singled out for special recognition, which we were as winner of the Mortgage Finance Company of the Year at this year’s Mortgage Awards of Excellence. We receive awards like this with thanks and a determination to earn them again next year.
On a personal note, I am humbled and honoured to be a 2024 inductee into the Canadian Mortgage Hall of Fame. I look forward to expressing my thanks to you personally at the Conference and closing dinner on October 28th.
Please enjoy the Conference and what I believe will be a busy and productive fourth quarter.
Executive Vice President, Residential Mortgages