Brokers should stop thinking of themselves as mortgage brokers; they should establish themselves as money brokers, according to one professional.
“If, as a financing professional, you only have one financing solution to sell, then you are limited in helping your client with their needs and in earning a commission for your needs; as a money broker you will have every financing solution to offer your clients,” Michael Yasny, president of Money Consultants, and a broker with Verico
Cashin Mortgages, told MortgageBrokerNews.ca. “This does not mean you have to be an expert in each area.
“Just knowing who the expert is in each area is enough to help provide a solution to your client.”
Certainly, many brokers already do this by managing a healthy pool of referral clients – from Realtors and insurance brokers to financial planners and lawyers.
However, Yasny argues not nearly enough brokers are taking advantage. And that many do not reep the referral fee rewards.
“What I have learned in teaching an accredited mortgage course to mortgage agents and brokers is that [many] successful mortgages are completed with a borrower who owns a business; they could be a lawyer, an accountant, own a manufacturing business etc.,” Yasny said. “Of the 400+ individuals that took the course, exactly one person made money from this group of business owners exactly one time.”
By not informing your clients that you provide alternative financing solutions for business, you are not only losing out on referral opportunities, but potential commissions as well, Yasny said.
“When someone calls you for business financing you can let them know that you also do mortgages,” Yasny said. “Your business referral base will grow, your commissions will grow and you will become the one stop shopping when your clients think of money.”
This is part one of a two part series. Tomorrow, Yasny shares tips on transitioning your business model.