The short answer
When the Kelowna market slows down, lenders compete harder for the business that’s out there. That gives buyers and homeowners more choice of lender, better deals from lenders who are hungry for volume, and time to do things properly. It’s the right moment to get your numbers genuinely checked before you shop, and if your mortgage renews in the next year, to start early instead of signing whatever your lender sends.
Why lenders get hungry in a quiet market
In a hot market, lenders have more applications than they need and can afford to be picky about price. In a quieter one, they’re chasing volume. At any given time some lenders are hungrier than others, and knowing which ones is a big part of what a broker brings to the table: the same file can be priced quite differently depending on who is trying to grow their book that month.
Pre-approved vs. pre-qualified
Mike doesn’t like the term pre-approved. Too often it means walking into a bank and being told you’re a great customer and can buy a house. A pre-qualification, the way we do it, means going through all the numbers and verifying the important ones up front, so you know you’re genuinely ready before you make an offer. For how lenders actually calculate what you qualify for, see how much mortgage you can afford vs. what you’re approved for.
Renewing in the next year? Start early
Accepting your lender’s renewal offer without shopping it is, in Mike’s words, like going to Vegas and betting with your eyes closed. Your current lender is counting on you leaving it to the last minute, when there’s no time to compare. Starting early gives you room to shop properly. Read how to compare renewal offers, when renewing early makes sense, and why switching lenders at renewal no longer needs a stress test.
The realtor’s side
Dallas Crick of Hilbert & Crick Real Estate Group covers the same market from the buyer’s chair: what a “boring” market looks like on the ground in Kelowna, who wins, and what buyers can ask for today. Watch Dallas’s video and read his transcript.
More videos: See the full series with Mike Lloyd and Dallas Crick.
Full transcript
Dallas: Mike, so what does a quiet market change on the financing side?
Mike: It changes a few things. It gives us a little bit more time and we also have more choice. Lenders aren’t quite as crazy as they normally are when the market’s hot. So that gives us some more choices in terms of which lenders we can use. It also means that we can find some possibly better deals, because they’re hungry too. So knowing which lender is hungry is part of that game, and understanding it.
Dallas: So is now the time to get pre-approved?
Mike: Absolutely. And I don’t even like the term pre-approved. Pre-approved means that you walk into your bank and they tell you you’re a great guy and you can buy a house. Pre-qualified is what we prefer. That’s where we actually go through all the numbers and verify some of it, so that we know that you are ready to go. And that’s a big difference.
Dallas: Right. And say you’re up for renewal in the next year. What should you be doing?
Mike: Super important to get started early, and don’t just agree to what the lender offers. It’s like going to Vegas and betting with your eyes closed. You’ve got to know what you’re doing, and by opening your eyes and getting set for it, you’ll be able to make a way better decision and, long-term, save a lot more money.
Dallas: So you’re shopping around for them, in essence.
Mike: Yeah, absolutely. But that’s why if we start early, we have lots of time to do that shopping around, as opposed to if you wait until the last second, which is what the current lender is counting on, because they want to scoop you with a bad rate and make a bunch of money off it.
Dallas: Right.
If you’d like your own numbers checked before your next move, book a free, zero-pressure strategy session.
Frequently asked questions
Is a slow real estate market a good time to get a mortgage?
Often, yes. When fewer deals are happening, lenders compete harder for the ones that are, which means more choice and sharper pricing. It also gives you time to get properly pre-qualified and to compare options without the pressure of a bidding war.
What’s the difference between pre-approved and pre-qualified?
The words get used loosely. What matters is whether anyone has actually checked your numbers. A quick approval based on what you tell a bank can fall apart when the documents come in. A proper pre-qualification goes through your income, debts and down payment and verifies the key pieces first, so you know you’re ready before you make an offer.
When should I start shopping my mortgage renewal?
Months ahead, not weeks. Starting early leaves time to compare lenders and hold a rate while you decide. Waiting until the renewal letter arrives usually leaves you signing your current lender’s offer by default.
