EFFECTIVE HABITS - Taking a closer look

Checking your client still has the most appropriate loan has several benefits and will cement the client relationship, writes Francis Wilkins

ECONOMIC TURBULENCE, a flat property market and deflated consumer confidence have prompted many brokers – quite wisely – to focus on their existing clients rather than to pour their energies into touting for new business.

Meanwhile, the major banks fought a bitter price-based war in an attempt to attract business from the small pool of borrowers in the market.

It’s easy to see why from the borrower’s perspective the best rate is often confused with the best loan. Brokers, however, generally have a broader understanding of the lending market and know that while the rate is important it’s not the be all and end all of a loan.

That said, now would be a particularly good time to check how competitive your clients’ mortgages are. This is something that should be done at least once a year, but there’s no harm in getting into the habit of doing it more frequently if a client’s individual needs – or the market – demands it.

An interim review not only allows a broker to check that their client has the best product for their needs; it is also an opportunity to make contact and strengthen the relationship.

Equally important, it can be a good way to generate business and to promote client retention.

So, what do you need to remember when conducting the review?

PLAN AND PRIORITISE

Not every client needs the same amount of attention, so first you need to check your database to see which client mortgages most need looking at and who would benefit most from a review. Set up meetings with those in greatest need first but remember, you’re not doing a thorough appraisal of every single client; rather, it’s a targeted ‘mortgage health’ check.

PREPARE WHAT YOU WANT TO SAY

Checking the ‘health’ of a client’s mortgage is as much about strengthening the relationship as it is about reviewing the loan, and this needs to be reflected in what you say. Explain you are conducting the review to familiarise yourself with the client’s current situation, not because you have something to sell them.

GET STRAIGHT TO THE POINT

Make sure you strike the right balance between a full appraisal and a cursory look-over. You should already have a pretty clear idea of the client’s situation before they walk through the door – if not, do your homework! – so in most cases 20-30 minutes should be enough.

DON’T IGNORE THE BIG PICTURE

The aim of your review is to check your client has the most suitable loan, but once you get an update on their situation, you may discover there are now other areas with which they need help. Where these include items such as planning to purchase an investment property or a need for insurance cover, brokers obviously have the opportunity to do some cross selling.

MAINTAIN THE MOMENTUM

Once you’ve completed a client’s ‘mortgage health’ check, don’t just tick a box and move on to the next one. Make sure you act promptly on any issues that arise but equally important, don’t lose the momentum that this contact will bring to the relationship. Consider scheduling a similar meeting for a few months later, which will show that you care and support your client retention efforts.