Login
ISCOVER
A mortgage health check is one of the most effective business building tools available to brokers, in more ways than one, writes The Adviser’s Alex Whitlock
While buoyant market activity over the last 12 months has helped to boost new business for many brokers, this should not come at the cost of missing out on business from existing customers. Rates, which dropped like a lead balloon at the end of 2008, are again marching upwards.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The liquidity crisis has further exacerbated mortgage rates with a 27 basis point spread between the variable rates of the majors. While the interest rate a borrower pays is not the be all and end all, it is still prudent to review how competitive their mortgage is at least once a year.
However in a rapidly changing market there’s no harm in making a more frequent assessment.
Today’s turbulent market conditions are the perfect backdrop for brokers to contact their clients on a regular basis. This is not only an opportunity to ensure that they are with the best product for their needs, there is also a chance for brokers to further strengthen the client relationship by showing that they care.
A mortgage health check achieves a number of objectives for brokers; importantly it can prove highly effective in generating business and client retention. So if you’ve not conducted a mortgage health check for a while, what’s the best approach?
PLAN YOUR STRATEGY
Take a day to assess your client base and prioritise which clients could gain the most from a mortgage heath check. Look at making appointments with those in greatest need first and then work down through the list.
PREPARE YOUR PRESENTATION
A mortgage heath check is as much about strengthening client relationships as it is about generating business – so consider this in your presentation.
It’s important that your clients don’t feel that they are being sold to, so make sure that you explain that the purpose of the health check is to familiarise yourself with their current situation.
Once you’re up to speed you’ll be in a strong position to review their property finance and make recommendations where appropriate.
KEEP IT CONCISE
You need to strike a balance between conducting a thorough appraisal and not taking too much time. If you’ve done your homework properly, you should have a pretty clear idea of he client’s situation before you walk through the door; so in most instances 20-30 minutes should be plenty.
LOOK BEYOND THE LOAN
While the suitability of a borrower’s mortgage is the focal point of a mortgage health check there are other opportunities available to brokers. With an updated view of the client’s situation there may well be other areas of their financial situation that needs addressing.
This may be as simple as identifying any plans to purchase an investment property through to considering their need for insurance protection.
PAVE THE WAY
When you’ve conducted your heath check with a client, don’t just put their file back in the cabinet to be forgotten.
Each time you see your dentist, the receptionist will book you in for your next appointment in six months time, so why not do the same with your clients?
Most borrowers will appreciate their broker’s help in assessing their ongoing financial wellbeing and will be more than happy to pencil in a meeting for the future.
