Are You Happy With Your Mortgage?
…………..Would You Know The Alternatives?
……………… Or Is It Just Too Much Trouble To Find Out ?
In a recent survey undertaken by a major lender it was found that 39% of all mortgage holders in N.Z. believed that they could do better, but only 4% did anything about it as they thought the process would be too difficult.
- 86% of those surveyed thought using a mortgage broker was a good idea with
- 45% of those commenting that they thought a broker could sort out the best options.
- Only 5% of the survey were negative about using a broker.
Conservative figures from overseas tell us that
- 68% of mortgages are arranged by brokers in the USA,
- 50% in the UK,
- 40% in Australia and
- 29% in New Zealand.
So it is obvious that there is plenty of room for growth despite some pundits suggesting that there may be some difficulty in achieving market share here comparable to overseas models.
To know that you have the most suitable mortgage to suit your current and future needs and goals, should be logical considering the financial benefits you could gain. If the majority of kiwi’s opt for the ‘she’ll be right’ mind-set because to sort through the options is perceived to be just ‘too hard’, then it’s obvious, we and the lenders are making it all look too complicated. The reality is, that my clients do not want to know what all the lenders products are or what they do, they only want to know what the best options are for them personally given their individual situation. A bit like the doctor not discussing the remedy for arthritis when treating an asthmatic. Can you relate to this?
In order to successfully grow their market share, mortgage brokers have the daunting task of competing with the advertising and marketing budgets of the major lenders, who are also their customers.
However a successful marketing campaign by one lender wether it be a positive or negative campaign has also helped the broker’s business. Our client’s considering all alternatives will not go directly to the lender, especially if they are not a client of that lender already (they may just be a little biased ) but will seek advice or clarification from an independent mortgage broker.
Last year I personally settled well in excess of $100,000,000 worth of loans through a wide range of lenders and was very happy with my personal increased market share. My goal on each and every loan was (and will always be) to give my clients simple, easy uncomplicated options once we have worked together to develop their goals and strategies for their future.
When we talk about the relationship between the size of any business today and its effectiveness in the marketplace there is an often assumed argument that ‘biggest is best’.
In the case of dealing with many and various lenders, as we brokers do, we are constantly seeking the best lending environment for a particular client regardless of the size of the lender.
It is more a case of some providers specializing in certain products rather than the size of their ’brand’. There are lenders with less of a market profile who will look at a particular client’s situation and apply some old fashioned common sense to approve a loan that does not meet normal criteria.
It’s not only a matter of knowing what is actually available out in the market place and how that particular product fits a particular situation but also it is knowing where to go and who to talk to should the situation need real clarification. This can only be achieved by building close relationships with the lenders to make sure that the communication lines are always open.
Today the focus and challenge for business is to deliver a better ‘experience’ to our clients in order to retain them and we are so aware of our role in that regard. We are constantly reminding ourselves that a vitally important goal for us is to reduce the stress that home buyers and sellers endure by simplifying the mortgage process. Finding and endeavoring to secure the ‘perfect’ home or investment at the right price is difficult enough on it’s own.
Lets work together as a team to make this experience an enjoyable one.
Printed with the permission of Tarawera Publishing and NZ Pproperty Magazine