Teranet announces changes to Quebec data Acquisition

Over the past several months we have been working hard to improve your overall PURVIEW experience and would like to take this opportunity to share some recent developments regarding our Quebec data acquisition strategy.

Historically, Teranet has relied on 3^rd party relationships to provide the majority of Quebec data used to calculate regional property valuations (AVM’s) as well as power the Teranet-National Bank House Price Index.  To ensure we continue to provide quality data to our valued customers, we are currently implementing a direct sourcing option that will improve the timeliness of our Quebec data in particular. 

As we transition to this direct sourcing option and repatriate our data in Quebec, the short term supply of Quebec AVM’s may be impacted.  Over time, the supply will continuously improve.  The Teranet-National Bank House Price Index will however not be impacted by this change and will continue to provide leading insight into the dynamics of a highly varied Canadian market. 

As we further integrate this approach, we will continue to communicate any updates with you as they become available.

If you have any questions regarding these recent developments, please speak with your Account Executive or contact us at 1.877.787.8439 or purview@teranet.ca.

Thank you for the continued confidence you have placed in Teranet as your risk management solution provider.

How You Can Leverage Your AVM to Identify Upsells that the Broker or Branch May Have Missed

Most people have no idea what their house is actually worth! This occurs for so many reasons:

·        They purchased the house so long ago and a lot has changed in the neighbourhood or area 

·        They live in an area where the market is really hot

·        They have a unique property type

·        The area where the property is located is very mixed

·        They simply haven’t paid attention and don’t know

When the customer applies for a mortgage with a broker or a bank, they are always asked “what is your home worth,” but what’s next? 

·        Some brokers will further ask when the client bought their home and what they paid for it

·        Some will ask if the client has had an appraisal recently and what the value was

·        Some will ask what the value is on the property tax assessment

·        Recently, brokers began receiving access to the Purview Automated Valuation Model (AVM) tool, so now some brokers will request an AVM at the application stage

For those in the first 3 groups – How can you determine, when you receive an application, that you are positioned to make the most out of the deal? We can tell you how.

What are the 3 things that matter the most on a deal:

·        Credit

·        Equity

·        Proof of Income

Here is a great example: in the credit category, lenders use the client’s credit history to both mitigate risk and identify upsell opportunities. In this category, lenders who lever soft credit report hits have the competitive edge because they are able to see how their clients’ situations have changed and where they need to re-arrange the relationship accordingly.

In the area of equity, not double checking the client’s equity positioning at the point where a broker or branch sends you an application is a total missed opportunity. Never mind avoiding bad deals and increasing closing rates, an AVM will provide vital insight into the property and borrower you are financing. Things like:

·        The sales history on the property

·        Sales comparables

·        An estimated value

·        Registered encumbrances and more

Armed with this information, you may discover that you are perfectly positioned to offer that client a secured line of credit because there is more equity than anticipated, or recommend leveraging more home equity to achieve other financial goals.

For more about the benefits of an AVM, please contact Purview For Lenders today by calling 1.855.787.8439.

Ontario Mortgage Insight: OMI Market Reports and What They Mean to You

The Ontario Mortgage Insight (OMI) Report from Teranet is a powerful report that provides you with statistical information as it relates to sales mortgages and home equity, according to location and transactions. Many financial institutions and lenders are leveraging this insight to analyze the market, the competition and to gain that competitive edge.

Using the OMI you can measure your outcomes against those of your competitors. You can review data as it relates to equity and mortgage refinances – by institution, area and date. You can track performance in different neighbourhoods and regions and identify markets to target. With this insight you can better understand and manage risk to know where and when to develop new business and ramp up your marketing initiatives.

How? It can be difficult to know at any given time where your marketing dollars are best spent. For starters, you can measure the market penetration of your mortgage products and assess the value in enhancing initiatives. Identifying hot markets quickly makes you more agile and puts you in a position to be able to develop profitable campaigns. Assessing your marketing initiatives regionally allows you to quickly identify local competitors that may be gaining strength, thereby giving you the opportunity to optimize your campaigns accordingly.

You can review and assess an abundance of both market trend data and monitoring data. What does this mean to you? To put it simply, market trend data includes: the number and value of sales or transfers in a particular area, the number and value of mortgages including charges, discharges and transfers, as well as home equity on properties and turnover rates. Monitoring data includes: estimates of market penetration, mortgages, equity and switches in properties between all monitored institutions. These are two powerful sets of data that result in faster and more effective decision making capability.

Now let’s talk risk. OMI reports are an incredible tool for risk management. By measuring your activities against the competition, analyzing lending performance in different regions, you can actually customize your lending practices according to geographical risk exposure. You can measure your activity against your competitors, better understand your geographical market share and more…

The Ontario Mortgage Insight Report has proven to be an invaluable tool to financial institutions of all shapes and sizes, from the big banks all the way down to local credit unions, finance companies and even private mortgage investment corporations. The more informed you are about markets, the more equipped you are to react to changes resulting in less risk and greater profitability.

For more information about OMI please contact Ryan Poyntz (ryan.poyntz@teranet.ca) or call 1.855.787.8439.