Mortgage Lending Business Plan

This assignment focuses on developing a comprehensive business plan for a new mortgage lending company operating in Toronto, Canada. It outlines the company's vision, mission, target market, competitive advantages, marketing strategies, and operational plans. The document includes sections on market research, consumer behavior analysis, pricing strategy, distribution channels, promotional activities, human resources development, and financial projections. A detailed implementation plan with timelines and responsible parties is also provided.

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 1
CEH Investments
Maria Halabi
28/9/2017
1. EXECUTIVE SUMMARY
CEH Investments is a mortgage broker company which is committed to providing the best
mortgage and lending services. The aim is to keep building client database and have the regular
loyal customers. CEH Investments and is a sole proprietorship business owned by Maria Halabi.
The business is situated Ontario, Canada with its head office being in Toronto City. The city is a
prime location for the business headquarters because it offers conducive environment for the
business to achieve its aim of a consistent building of the client database and have the regular
loyal customers. Furthermore, Toronto City is a business harbor with several businesses, and it
is expected that the workforce will be in need of loans for various reasons and decent housing.
This implies that Toronto City is a business hotspot for a mortgage and lending company with
clients already in waiting. The idea of a sole proprietor was favored by the owner to achieve her
dream and create opportunities for employment. Initially, the business will commence with three
staff permanently employed.
2. SITUATION ANALYSIS
2.1 S.W.O.T analysis
Strengths
 Minimal start-up budgets
 Professional staff
 One package with many financial products
Weaknesses
 High compliance costs
 unfriendly market scenario can impact revenue
© Copyright 2015 The National Finance Institute V.010715

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 2
Opportunities
 Establish and develop new plans and financial products
 Multiple yields from each customer
 Diversify the mortgage portfolio business
Threats
 Lack of protection of patents on new financial strategies
 New legislations in the mortgage business
 High costs of errors and omissions
2.2 P.E.S.T analysis
Political:
 The industry is regulated by the government by managing taxation rates, stamp
duty obligations and the alteration of laws.
 The safeguard of consumers is monitored by the state and it may be unfavourable
for the enterprise.
Economic:
 The savings are impacted by The rate or degree of economic growth which also
affects the business
 The state economy affects the financial demands of the workforce which in turn
affects the mortgage business
Social:
 The consumption behaviour of clients is affected by their social status.
Technological:
 Technology development demands efficient business operation
 Innovative technology influences the introduction of new products and services
that are web oriented
© Copyright 2015 The National Finance Institute V.010715

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 3
2.3 Competitive analysis
CEH Investments aims to target small and medium-sized enterprises. Furthermore, our
comprehensive package of additional advisory services to the client will attract most of the new
clients and retain them.
2.4 Market analysis
The mortgage industry is the most growing industry in Canada. This is because Canada is a
developed state and therefore the need for housing will continue to grow. The desire to own
more than a single home is proof of the existing market opportunity.
3. MARKETING GOALS
 Establish a network of client database
 Establish relationships with bankers and other relevant mortgage dealers
 Create extensive awareness within and without the city
4. MARKETING STRATEGY
CEH Investments will implement the following marketing strategies:
a) Diversification: CEH Investments will expand its business to other cities and states to
increase its customer base
b) Development of products: regarding the assessment of the current market products and
client needs, CEH Investments intends to customize its products and services to meet the needs
of the market
5. MARKET SEGMENTATION
5.1 Target market(s)
CEH Investments will provide services to mortgage customers of two classes
 First time ownership of homes (FHOG)
 Residential
6. MARKET POSITIONING
The slogan “East or West Home is Best” will be our positioning statement. The market
positioning statement will be “Homes before and after retire” and a nicely designed photo of an
extended family will be put above the phrase.
7. MARKETING TACTICS
© Copyright 2015 The National Finance Institute V.010715

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 4
7.1 Product strategy
One of the employees is a financial expert and is therefore expected to offer help or financial
advisory services to clients at all times. Corporates, investors and individual staff will be the first
target.
7.2 Service strategy
The organization expects to offer its target customers services during lunch breaks and leave
them with notebooks branded with our corporate color and logo. Other customer inquiries will
be handled through emails and company website.
7.3 Pricing strategy
 Mature loans shall attract 2% of the total loan
 Closed loan with enterprise name shall attract 2-3% of the face value of the loan
7.4 Distribution strategy
The company will optimize the current networks of the financial institutions to access customers
for mortgages easily.
7.5 Promotion strategy
Social media advertising and door to door promotion will be used to create awareness
7.6 People strategy
The existing employees will undergo training and development; attend workshops and seminars
to improve job performance
8. RESEARCH
8.1 Consumer research
The Toronto residents need proper housing as well as the medium and small sized businesses for
they usually shy away from the high rates offered by established companies.
8.2 Market research
The change in the Canadian legislation on interest rates has led to the increase of property value,
thus causing congestion in the industry. However, the high rates of the existing businesses make
medium and small sized business to shy away. Therefore, we expect to take advantage of this
opportunity.
9. CONSUMER BEHAVIOUR
The changing consumer needs will be examined to provide products that are
relevant to the market.
10. EVALUATION
a) Client feedback: to determine the views of the customers, online research, and advertising
will be used
b) Competitors’ response: the reaction of the potential competitors after the initial market
entry and initiation of the marketing plan will be assessed to ascertain its effectiveness.
© Copyright 2015 The National Finance Institute V.010715

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 5
11. IMPLEMENTATION PLAN
Strategy Actions Who When
Preparation
Execution
Supervision
Company aim:
providing the best mortgage
and lending services
SWOT analysis:
Consider both internal and
external factors of the
company
Execution of the 4P
marketing mix
Appraisal of all strategies at
all stages in all departments
Senior management
-Marketing
department
Senior, junior and
other employees.
Senior, junior and
other employees
Nov. 2017 to
April 2018
Jan. –June 2018
(examined after
every 3 months)
- - - - - - - - - - - - - - - - - - - -
© Copyright 2015 The National Finance Institute V.010715