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A client approaches you…

A client approaches you and asks you to apply for a home loan, with marital status of single (when in fact he’s married with children).

He needs to qualify for a higher loan amount.

He says another broker could make it work on this (single status) basis and was wondering if you would too, as he prefers to do business with you.

What do you do?

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Know your client’s deeper purpose for seeking your advice

As a mortgage broker, giving the right advice is less about getting a client a cheap home loan, but more about helping them achieve the things that matter to them.

This means that you need to have a clear understanding of what your client’s requirements are, at every stage of the process.

Sometimes you may have to ask the same questions a few times, in different ways, to get a good handle of what is it that your clients want. 

Sometimes what the client may say is not necessarily what they mean.  And as a mortgage broker, you may have to interpret what they mean.

In some cases, you may have to help your client define what they are trying to achieve.

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What do you stick on your fridge?

Photo by Squared.one on Unsplash

Dieticians will tell you that if you want to change your body shape, what you store inside your fridge makes all the difference.

I totally agree with this concept, however I also believe that what you stick ON your fridge is even more powerful.

Think of it like this. What you stick on your fridge will serve as a compass to drive you towards your goals.

Most people are at their fridge at least three times per day.

What do you think would happen if you are looking at images of your “bigger picture” daily, day after day?

Most people stick outstanding bills on their fridge. While this can be a convenient way to manage your bills, subconsciously it’s working against your bigger picture.

What you visualise (regularly) will become your reality. Why?

Because once you know exactly what you want with clarity, your subconscious mind will be on alert and drive you in that direction.

It’s just the way it works.

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Do you know what your customers really want?

Photo by Jeff Griffith on Unsplash

Last week, one of our brokers rang me. Roger (not his real name) asked me how does he get accredited with a commercial lender, as he had a client asking for a commercial loan.

Roger says, “he needs a commercial loan so he could buy a commercial property.”

So I asked Roger, tell me more about the scenario?

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Comfortable or Uncomfortable

If you’re standing still, you’re going backwards.

Most people in life are cruising and will never reach their potential.

If this is the road you want to take, that is cool.

But if you want more, be more, achieve more, and have more, then there’s only one formula that works:  Work your butt off, take risks (emotionally and financially) and get out of your comfort zone!

It is that simple. It is not easy, but it is a simple formula.

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Marketing is not about being unique

Being successful isn’t about being unique

Not far from where I live is a restaurant with an interesting cuisine.  The sign says that it is a Indian-Hungarian restaurant.  When I first saw this, I thought it was a new twist on fusion cuisine.  And this must be one of the few restaurants where you can order Stroganoff and Vindaloo together.

Needless to say I am not sure how successful this restaurant is. 

It is unique and different.  And certainly, made me take notice – but does it work?  Does this mean that this restaurant has the most delicious Indian and Hungarian food?  Or is the combination only a marketing ploy? 

Would a similar strategy by a mortgage broker work – by being so different that it would make people take notice?  And drive lots of business to that broker?  Would customers accept this?

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So your client has been pre-approved? Now what?

Some time back, a Mortgage Broker friend of mine was frustrated as his business lodged around $20m in Approvals-in-Principles (AIPs) in a year, yet only around $4m resulted in actual settlements. A lot of work for little financial reward given a 20% conversion.

He asked me what I do once a client has been AIP’d and whether I experienced a similar statistic.

My first comment was “we get paid on settlements, not lodgements”. As obvious as that sounds, many brokers focus on the wrong levers.

Naturally the client has to buy a property for the loan to settle, therefore you should implement a diligent follow up process to ensure you’re not working hard for little financial reward.

Here’s what I recommend you do.

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Setting up a customer-focused business for success

Ask any successful mortgage broker on the MPA Top 100 list, and most of them will say that the majority of their business is generated from referrals. 

Referrals and word-of-mouth marketing form the backbone of most mortgage broking businesses. 

Which makes a mockery of why regulators and Royal Commissions cannot get their heads around commissions and the conflict of interest issue.  Why is it that the mortgage broker share keeps increasing?  At the most recent MFAA report, the market share for mortgage broker sourced mortgages has increased to 59.7%. 

The reality is that mortgage brokers only become successful if they focus on the customer.  There may be inherent conflicts of interest or commissions from some lenders that are higher than others, but if the broker wants to become successful, they must put their customers first.  And when that happens, those mortgage brokers will generate more referrals and repeat business.

The corollary is that those same referrals ensures that the customer’s best interests are looked after first.  Because if those same customers are not looked after, they will not be giving referrals to you.

And on the evidence of things, more customers are seeking mortgages from mortgage brokers.

As a mortgage broker, how do you set up your business for referrals and repeat business?  Here are my top 3 tips.

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Networking tips for mortgage brokers

Last month I attended The Adviser’s New Broker Academy in Melbourne and learnt a new thing.  Jason Back was presenting and he showed me a new feature in LinkedIn that I wasn’t aware of. 

It was the “Find Nearby” button.  And it was great as it allowed me to connect to others in the room with me.  You can read more about it here.

And here is the thing.  As a small business owner, mortgage brokers have to be fantastic multi-taskers who have to learn many new things, every day.  This is because they only have one employee – themselves, or only have access to a small team of people.

This includes tasks like creating marketing campaigns, posting on social media, touching base with clients and referrers, keeping updated with credit policy, dealing with credit assessors, balancing their own finances, and also taking care of the housework.

So as a mortgage broker, how do you learn how to do new things?  Or even to work out what types of skills or tools they will need to master?  And most importantly how do they meet the right people to help them find their customers?

One of my key continual improvement activities is to get out and network with like-minded people who may help generate new ideas.  Meeting like-minded people can help keep you motivated and inspired.  And some of them may teach you new things to run your business better.

Just like what happened at the New Broker Academy event, where I learnt something new from Jason.

The thing is even with social media there is no substitute for meeting people face-to-face.  Like it or not, the basis of all long term business referral networks rely on people physically meeting each other.

Plus I feel more connected to my LinkedIn and Facebook contacts if I have physically met them already.

Here are some ways to ensure your networking activities produce the right results for your mortgage broking business.

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Are all Top of Mind (TOM) strategies the same?

Image by TeroVesalainen from Pixabay

There are many strategies to keep Top of Mind (TOM) with your clients, prospects, and centers of influence. But not all TOM strategies pack the same punch.

Let me explain.

Emotional TOM strategies pull at the heart (as people will always remember the way you make them feel). Logical TOM strategies are necessary but satisfy the head.

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