A Toronto-based broker knows just how to deal with clients who are told by the banks to shop around for rate, and his tactic has proven fruitful.
"Your bank doesn't want to have to offer you a competitive rate unless you force them to by doing a ton of extra work and by wasting someone else's time,” Dave Larock of TMG
Integrated Mortgage Planners wrote on MortgageBrokerNews.ca. “If you follow their direction and ultimately reward them with your mortgage business, you are validating this approach, and I don't know about you, but as a loyal customer I would find it offensive.”
According to Larock, this simple approach – as well as a breakdown of the conditions and fine print associated with certain bank deals – often results of him winning the client’s business.
And when the client has been instructed by a bank to search for a better rate, it’s a good way to turn the underhanded tactic back on the specialists.
“Banks who use this approach are effectively handing you their clients on a silver platter,” Larock wrote.
Rate shoppers are nothing new to brokers, but at least one industry player has noticed clients being more brazen in their approach to earn the best rate.
Mike Celuch, a broker with Mortgage Intelligence
, told MortgageBrokerNews.ca earlier this week about a client who admitted outright he had been sent to explore the broker channel and return to the bank to receive a new offer.
But brokers are adept at turning the tables on these bankers.
“I always get the client to admit that if my rate is better than what the bank gave them the first time then I have earned their business,” Dianne Chafe of Oriana Financial wrote. “If they are not willing to give me their word that they will work with me if my rate is better than I do not waste my time.”