This creates a transaction that typically consumes no more than 90 minutes of our time in the office from start to finish, and not much more of the client's time either.
With a potential savings of $999.60 per 100K of mortgage balance over the term, it has gone over very well thus far.
The temptation to offer the same thing to said client's friends, family members, coworkers, etc. (should they be referred) is actually quite low, about 40bps too low in fact.
As we all know, starting a file from scratch is significantly more work. There is trust to be built, an application to be built, assisting the client with adapting to your process around documents required and documents to be signed.
It is simply too much to be done for half the commission in the full service manner in which I like to work. I find that a brand new transaction will typically consume seven hours of time overall.
Perhaps more importantly the goal with this program is to add value and reward loyal clients for their decision to work with us two, three, four, or five years ago.
Clients come away with a superior rate, unbeatable in fact, and in turn we earn a degree of compensation. A win/win.
This is one proposal as to how to approach a market segment in which brokers currently have very little to lose, and so much to gain.
Dustan Woodhouse is a B.C.-based broker with DLC.