In the ever-evolving Canadian mortgage market, lenders like Equitable Bank are key players in shaping the future of home financing. As the real estate landscape and financial climate continue to shift, it’s crucial to gain insights from industry leaders who understand the complexities of mortgage lending. Equitable Bank stands out by offering innovative solutions tailored to the changing needs of Canadian borrowers.

We had the privilege of speaking with Karim Awad, Senior Regional Business Manager for the GTA at Equitable Bank, to gain deeper insights into how the bank is meeting the evolving demands of today’s lending landscape. In our conversation, Karim shared how Equitable Bank is leveraging technology to streamline the mortgage process and how mortgage professionals can guide their clients more effectively. This insightful discussion sheds light on the future of the industry and offers practical strategies for navigating the ever-changing mortgage market in Canada.

1. Can you provide a brief overview of Equitable Bank’s mission/goals in the mortgage lending space?

"Our focus is on first-class broker customer service, innovative products for clients, and helping to promote the value of the mortgage broker industry as a whole - since we believe working with a broker is the best way to get a mortgage in Canada."

2. What are the key mortgage products and services that set Equitable Bank apart from other lenders in the market?

"As Canada’s Challenger Bank, we understand that clients' needs are different - and we offer tailored solutions for all types of individuals. Whether you’re self-employed, new to Canada, have a limited credit history or are looking to invest, we tailor solutions that look beyond traditional lending to help you reach your homeownership goals. In addition, we are one of only two Schedule 1 Banks to offer Reverse Mortgages in Canada - an innovative and flexible solution to help homeowners over the age of 55 reach financial freedom."

3. How does Equitable Bank tailor its mortgage solutions to meet the unique needs of different types of borrowers, such as self-employed, non-traditional income or first-time homebuyers?

"For borrowers who are self-employed, Equitable Bank takes a holistic approach by really understanding the nuances of their business. By reviewing business bank statements and or business financials, we are able to get a robust picture of how the business operates to be able to provide a tailored mortgage solution that meets the client's needs.”

4. How has Equitable Bank adapted its lending criteria to address current market conditions, such as rising interest rates and inflation?

"We understand there is a need to help strong borrowers obtain a suitable mortgage solution in today's challenging market. As a result, we have created innovative solutions such as our Extended Ratio Program and Total Worth Program - which provide additional financing options for clients with strong FICO scores and registered/non-registered savings. We have also taken a proactive approach to working with our borrowers who may be facing financial challenges and ensure that we work with them to manage any difficulties they may be having."

5. What innovations in AI, automation, and digital platforms is Equitable Bank using to streamline processes, and what impact do you see this having on mortgage brokers?

"We are always looking for innovative tools and solutions to help improve processes and provide a better experience for our mortgage broker customers. Some recent highlights include:

1. Revamped underwriting platform that has increased efficiencies in the underwriting/approving process.
2. Automated valuation tools provide an automated value of the property, which negates the need for a full appraisal in many instances - this reduces the cost and time required to complete a file.
3. Automated tools to help review income documents – this allows our team to assess income quicker and get back to our broker partners with any pertinent questions and final approvals faster."

6. What are the main challenges and opportunities you see in the alternative lending space, and how is Equitable Bank positioning itself in this area?

"We firmly believe that mortgage brokers are the best way for Canadians to obtain a mortgage, and we work exclusively with the mortgage broker community. We have a robust and innovative product shelf that can help mortgage brokers find solutions for many of the clients that seek their advice."

7. What are the typical turnaround times for approvals and closings, and how do you handle urgent or complex files?

"We work to try and approve a file within 24-48 hours and fund within 7-10 business days if we have all documents upfront. We are very confident in dealing with complex files and will work with our mortgage broker partners diligently to ensure a smooth and seamless process."

8. How does Equitable Bank accommodate clients with less-than-perfect credit, and what programs do you have for credit repair or improvement?

"We really want to understand the entire customer profile - the 5Cs (Character, Capital, Capacity, Credit, Collateral) are all important. Providing us with the full picture will allow us to assess what suitable options may be available to clients, as we have several different programs and options available."

Have questions for the EQ Team? They’ll be at Power Connect 2024 on Thursday, October 17th, 2024, as our Platinum Sponsor. You can find them at Table 2 in our Exhibition Hall.