Population demographics and the mortgage broker marketplace

Professional Mortgage Brokers know that marketing and lead generation are fundamental to their success. What many of us are less sure of is who to target and what marketing methods will produce the best results. It pays to understand who you are targeting, whether geographically, demographically or through lifestyle choice.

I spent a few hours today reviewing Statistics Canada and Wikipedia to gain a better understanding of the demographic trends affecting the mortgage industry, particularly in Vancouver and BC.

To my surprise, BC was the fifth fastest growing jurisdiction in Canada including the territories and provinces between 2001 and 2006. Of the provinces, BC ranked third at 5.3% after Alberta at 10.6% increase in population, where as Ontario showed 6.6%.

Ontario grew the most with over 750,000 new residents compared to Alberta’s 315,000 and BC’s 205,000. If these trends continue Alberta will trump BC in population within the next twenty-five years.

It is important to note that these figures represent five years of growth from immigration, internal migration and live births. These numbers are key to understanding and will help a broker target his or her market with more effectively.

The growth in BC of 205,000 people between 2001 and 2006 is equal to about 40,000 people per year. Natural resource dependant areas are declining, particularly in BC which is experiencing rapid urbanization and a larger number of our population is now residing in south western BC. There were actual declining populations in Vancouver Island north of the Comox Valley, the Cariboo, most of northern BC and the southeast corner of the province also saw declines.

There are a couple of other trends to be aware of as well. Major centres are increasingly attracting a disproportionate number of ethic and visible immigrant minorities, while losing less educated Canadians born here. The cities are becoming more ethnically diverse, younger and better educated than the rest of the province.

Contained in these statistics are clues to more effective use of marketing resources for a broker. If you work in Metropolitan Vancouver or Victoria, focus on youth, educated buyers, ethic communities and urban lifestyles. Figure out how to reach and serve these audiences and you will find a gold mine.