You need to understand the level of risk which you are exposed to within your portfolio. A portfolio analysis helps you identify loans that might be at higher risk of default because of changing market conditions, economic fluctuations, climate risks, and other factors. By singling out troubled areas, you can proactively take steps to mitigate these risks and minimize any potential losses.
Portfolio analysis and monitoring
Are you actively monitoring your portfolio and renewals? Do you have a consistent view of your book of business?
With the market and economy being in a state of unpredictability, it’s important you understand any market risks your portfolio could face. A portfolio analysis is invaluable to maintaining a healthy balance, and can help you understand and manage risks, optimize your capital allocations, and make strategic decisions that enhance the profitability and stability of your book of business.
Risk assessment
Market insights
Gain insights into market trends and conditions by analyzing various attributes of the properties in your portfolio. This information can guide your lending strategies and inform decisions on interest rates, underwriting criteria, and mortgage loan terms. Stay ahead of the competition, monitor positive and adverse influences and seize opportunities that can give you an edge in this fast-paced industry.
Strategic planning and decision support
Comprehensive portfolio analysis insights inform strategic planning decisions which allow you to identify areas of growth, assess your competitive market position and align your lending practices with long-term business goals. Ultimately, it empowers you to make informed decisions around risk management, loan restructuring and overall portfolio management.
Stress testing
Since the changes to OSFI's B-20 regulations came into effect, lenders must apply a stress test. They also need to instill rigorous compliance measures to safeguard their mortgage underwriting and have a more dynamic view of their mortgage portfolio. KYC and B-20 regulations force lenders to complete a mortgage portfolio health check by combining internal and external data points to ensure the major components of a real estate transaction are not only verified, but also maintained to reduce risk.
Client relationship management
More than ever before, customer experience is becoming a make or break across organizations. Portfolio analysis provides valuable insights into the financial health of borrowers. Offer accurate and timely information to your clients, answer questions regarding property values and provide insights into market trends. This transparency builds trust and strengthens customer relationships leading to increased customer satisfaction and loyalty.
Customer retention and cross-selling opportunities
In today’s ever-changing rate environment, homeowners are looking for the next best rate with less volatility and flexibility. Monitoring your portfolio gives you the opportunity to get involved earlier, and keep those customers on your book.
Here’s how FCT’s Know Your Property™ solutions can meet your needs and help provide you with a consistent view of your book of business
Automated Valuation Model (AVM)
An AVM is a statistical model that uses real estate information such as comparable sales, property characteristics, and price trends to provide a value for a property.
Our AVM provides current market to market home values on over 18 million properties nationwide across Canada. This automated valuation model has a 98% hit rate nationwide for both residential properties and condominiums.
By leveraging our AVM, you can quickly assess and track the performance of your real estate portfolio, identify areas for improvement and adjust as required.
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House pricing index
Our house pricing index helps you identify geographic trends and monitor average changes in market values. Spread across 72 unique economic regions/neighbourhoods, you can track any market value fluctuations in your book of business. In addition to historic values, we also provide a 12-month forecast to anticipate market trends.
Proactively manage against any market risks with this regular pulse check on your portfolio.
Climate risk and peril data
Our wildfire index and flood score products provide micro risk data to supplement the risk profiles of properties in your portfolio. With data on over 18 million addresses, identify properties that have a higher risk for flood or wildfire.
Understanding your portfolio geographically and getting a complete picture of your climate risk can help you recognize and improve concentrations of exposure.
Permit data
Issuing mortgages is a risky business but having blind spots on the true value of a home is even riskier. Keep up to date on any modifications being made to the properties you’ve issued mortgages on with access to national permit data.You’ll gain access to any open or closed permits, including:
- Detailed descriptions of work
- Proposed use and type
- Estimated cost
- Date issued and status.
Access to this data will give you a better snapshot of your overall portfolio wellness.