When it comes to their best rate, big banks can play coy. And one broker has developed a strategy to force banks to reveal their dishonesty to potential clients.
“I've been sending clients to their bank first for years. I give them the words to ask the bank: ‘What is the absolute best rate you can give me on [a certain product]?’” Rick Robertson or Mortgage Mentor wrote on MortgageBrokerNews.ca. “That makes it hard for the bank to offer something new and lower [and] if the bank does come back lower I ask the client why they would want to deal with someone who didn't treat them honestly the first opportunity they had.”
The strategy of advising potential clients to first check with a big for its best rate was first mentioned by Jim Tourloukis
Advent Mortgages, a former CMP Top 75 top performing broker by volume.
“Potential clients are sometimes surprised by this approach as they rarely are told to go to the competition. It actually creates a 'deemed scarcity' of supply whereby the client now wants to deal with you,” he expanded on his strategy
in the comments section of MBN. “Look, unlike other successful brokers who have effectively implemented a contract with the client (a contract which forces the client to finish the deal with the broker), we feel this is a much more efficient approach.”
And while brokers believe the strategy is efficient, one leading player pointed out that it may serve experienced brokers better than the novice.
“The strategy Mr. Tourloukis is using is not one that many brokers will be able to relate to, it is not until one is past perhaps the five year mark that his starts to seem more logical,” Dustan Woodhouse
of Dominion Lending Centres
wrote on MBN. “Once well-established -- not only with referral sources but also wading deep into renewals of past clients -- that time becomes of such value that chopping out a part of the process that for many felt like productive work is truly a smart move.”