Brokers are increasingly squaring off against their nemesis the mortgage specialist in the fight to win renewals, with banks upping their efforts to retain that business. But should brokers give up or is there a smarter way to win this bout of the rate wars?
Video transcript below:
Reporter: The big fight continues. As always it’s the brokers versus the bankers. The prize, the renewal market! But should brokers even pick up their weapons, it’s The Renewal War on this week’s Big Story.
Winning renewals are a competitive and time consuming process. New reports says brokers aren’t making headway. But is the battle really worth the fight? What is really happening on the ground?
James Laird, COO, True North Mortgage
James Laird: The renewal market is one of the most challenging aspects of the industry because you are competing with a lender or bank who already has that client and it’s much easier just to sign a renewal paper with that bank and to go through with the process of being re-approved. Collateral charges is making it even difficult because now a lawyer needs to be involved in order to move from one lender to another. Thankfully many of our lenders have come out with free legal services, meaning that we can compete and not get that legal cost of switching from one bank to another. Banks do help us out by trying to renew their clients at [full posted] rates, which can often aggravate people and so they come in to us and our rates are 2% lower, we can offer them free legal service to switch out of collateral charge, that wins us lot of business.
Reporter: Does offering unique services really win renewal business?
Patricia Giankas, Mortgage Broker, Centum Metrocapp Wealth Solutions
Patricia Giankas: We are using a few things that are unique to retain our renewal business. We have, we are using Centum Financial [that you see for our dollars] we are have actually taken that to our financial planners and did some seminars of which we’ve got a few renewals. We also hired Doren Aldana, mortgage coach and we also have a business coach EDI all three are very beneficial in different aspect of our business to help increase our market share.
[End of Video] [00:01:59]