Brokers have the skillset that can save clients tens of thousands of dollars and countless headaches when securing a mortgage – but few take advantage of it. Here are five tips from one industry veteran to change all of that.
“When looking for a mortgage, people are often confused whether to speak with the bank themselves or to a broker,” says Graeme Moss of Verico
Fair Mortgage Solutions. “But independent mortgage brokers and mortgage agents are free to speak to as many lenders as needed to find the right product.”
It is this freedom that can be a powerful marketing tool for brokers to showcase the services that the channel offers – and to grow a book of business.
Moss outlines five advantages that brokers can promote to attract more clients:
1. Independent advice and options
“Brokers can sift through many lenders’ product offerings to find what best suits individual situations,” he says. “There is no pressure to be locked onto the choices your financial institution offers.”
2. One-stop shopping
“Organizing appointments with a number of competing mortgage lenders can take weeks, but brokers can do this for the client,” says Moss. “Since brokers work directly with dozens of lenders, we can quickly narrow down a list of products that best suit your needs, making the process of comparison-shopping fast, easy and very convenient.”
3. Brokers as negotiators
“Negotiating with a bank can be an overwhelming process with financial jargon the client may not completely understand,” he says. “This is where uncertainty can set in and the client may even back out of the negotiation process because of how uncomfortable it can be. This is where the years of broker experience can come into play and benefit the client.
4. Better choice of lender and rate
The large network of lenders that every broker has accumulated creates a variety of choice for the client. “Not only are we up-to-date with what major lenders offer, we also know what is being offered by credit unions, trust companies, and many other sources,” says Moss. “Having access to more choices also allows us to help with other requirements the client may need to take care of before the closing date.”
5. Ensuring the best rate is achieved
Although clients usually start their search on the Internet for the best rate, it is the brokers who secure the best rate.
“The client could already be pre-approved for a mortgage by the bank or financial institution, but that does not mean you have to stop looking for the best rates and terms,” says Moss. “You are by no means obligated to stop looking for better even if you are pre-approved. A part of our job that we love is investigating for on behalf of the client.”